Guizhou explores advantages of bonded economy

The development of bonded repair can promote the transformation and upgrading of processing trade. [Photo/ddcpc website]

Southwest China's Guizhou province is committed to becoming a hub of inland open economy. In recent years, new business models such as bonded processing, bonded maintenance, bonded financing and leasing, and bonded display and trading have been developed in the province, creating advantages for Guizhou's open economy and promoting stable foreign trade growth.

Under the bonded display trading model, companies do not need to go through customs procedures, or pay tariffs or value-added taxes before selling imported goods, reducing financial pressure on businesses and enabling consumers to freely "overseas shop" at their doorstep, enjoying convenient global shopping services.

Bonded repair, also known as "global repair", is a new form of foreign trade in which companies use bonded methods to bring damaged or defective goods from overseas or from outside the bonded area into the free trade zone for repair, and then return them to their origin for export, promoting the transformation and upgrading of processing trade.

In Guiyang's Zazuo town, Guizhou Tire Co utilizes the bonded warehouse to reduce annual imports of raw material funds by approximately 10 million yuan ($1.39 million).

Reducing operating costs is a key strategy for accelerating business growth. Bonded warehouses allow importing companies to enjoy preferential policies such as tax exemption or deferral on imported goods, reducing capital occupation.

From January to February this year, Guizhou's bonded warehouse imports and exports reached 117 million yuan, a 111.71 percent year-on-year increase.

Furthermore, Guizhou is expanding open channels using a "bonded + logistics" model. Guizhou's bonded logistics center (type b) warehouse and checkpoint's main body have been completed, and efforts are underway to ensure it can begin operating as soon as possible.