Mr. Zang WenXuan (Live from Beijing, China)

General Manager of North Branch Company of Sinotrans Air Transportation

Development Co., Ltd.

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Find A Way2

1. What is China’s Free Trade Zone(FTZ)

Free Trade Zone was a special region

approval by the Chinese government ,

within national borders, but outside

customs territory. Goods entering into

the region will still regarded as overseas

goods.

FTZ

Inbound from ITA China

domestic

market

Import customs

cleared

Paying tariff &

duty

Tax rebate

Outbound to ITA Export customs cleared

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2. China's Preferential Policy of Free Trade Zone

01Overseas goods enter into

FTZ without paying tariff

02Goods move out of the FTZ

for domestic sales will be

cleared according to the

provisions of imports of goods

and taxes will be levied based

on the actual state of the goods

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2. China's Preferential Policy of Free Trade Zone

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Domestic goods enter into the

FTZ accept as export, tax

rebates

04Transactions between

companies in the FTZ does

not impose value added tax

and consumption tax

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3. Advantages of FTZ

1. Less Circulating Fund Needed

Normal trading

Inbound from ITA

China

domestic

wholesaler

Customs

clearance

Pay all duties in one time, large amount of fund needed

FTZ trading

FTZInbound from

ITA

China domestic

wholesaler or

retailer

Customs clearance

①

Customs clearanceCustoms clearance

②

Customs clearance

③

Pay duties seperately

Pay duties

Pay duties

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2.Lower Trading Risk

3. Advantages of FTZ

Normal trading

Inbound from ITA

China

domestic

wholesalerCustoms

clearance

Pay all duties

FTZ trading

FTZ

Inbound from

ITA China domestic

wholesaler or

retailer

Customs clearance

①

Customs clearanceCustoms clearance

②

Customs clearance

③

Pay duties

Pay duties

Pay duties

Accepted

Rejected, returned

shipment considered as

export. Need complex process.

Outbound to ITA

Accepted

Goods in

FTZ remain

bonded ,can

return freely.

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3. Advantages of FTZ

3.Short Delivery Time 33

Normal trading

Shipping from ITAChina

domestic

wholesaler

Customs

clearance

FTZ trading

FTZShipping from ITA

China domestic

wholesaler or

retailer

Order

Long delivery time (≈30 days for seafreight, 3-5 days for airfreight)

Short delivery time (≈1 day), only need time for customs clearance

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4.Consumer experience

3. Advantages of FTZ

Permanent Exhibition Hall in FTZ

Potential buyers could experience their

favorite products and enhance their desire

to purchase.FTZ

Permanent

Exhibition

Hall No Schengen Visa needed !

No Air ticket needed !!

No samples by DHL !!!

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4.Other Functions of FTZ

After sales and maintenance1

Bonded factory2

Bonded logistics3

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5.FTZ in China

� Chengdu

� Suzhou Industrial Park

� Tianjin Binhai New Area

� Beijing Tianzhu

� Hainan Haikou

� Pingxiang, Guangxi

�Suifenhe, Heilongjiang

�Shanghai Pudong Airport

�Kunshan, Jiangsu Province

�Chongqing xiyong

�Guangzhou Baiyun Airport

�Suzhou High - Tech Development Zone

� Xinzheng, Henan

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6.An example: Beijing Tianzhu Free Trade Zone

�Geographically, combines “Bonded”

and “Non-Bonded”

� First airport-based

�Solely in the Beijing, the capital

�Superior transportation network

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7. Some Successful Experiences

Wine trading

Replenishment

FTZ

Wine

Trading

center

Wine tasting

Import &Distribution

FTZ

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7. Some Successful Experiences

Fashion trading

Replenishment

FTZ

Fsshion

Exhibition

Center

Potential buyer

Distribution

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8. How To Start FTZ Trading

Sinotrans is the Logistics services provider highly

recommended by CAWS

Sinotrans is the chairman of the association

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8. How To Start FTZ Trading

Sinotrans has branch companies in each free

trade zone in the country, provide consulting,

storage, trading, transportationg and

comprehensive logistics services.

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9.Advantages of Sinotrans

� 4 regions, about 120 branches in China;

� Nearly 100 warehouses with a storage capacity of 200,000 square meters.

Domestic Business Network

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9.Advantages of Sinotrans

Oversea Agent Network

� Our overseas business has covered nearly 100 countries in Asia, Europe, South America, North America, Africa and Oceania.

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See you on 17th of April !

Let us find a way

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