Dongjiang Port Area
Updated : 2019-06-14Print Print
Dongjiang port is located in Tianjin Binhai New Area, a third economic engine in the 21st century after Shenzhen Special Economic Zone and Shanghai Pudong New area. On Aug 31, 2006, 10-square-kilometer bonded area in Dongjiang Port was approved by the State Council. Ever since, it has become the largest and most open bonded port in China.
Located in the northeast of Tianjin Port, the Dongjiang Port Area is peninsula-like, surrounded by the sea on three sides, formed as a result of artificial reclamation of land on shallow shoals. It covers a total planned area of about 30 square kilometers.
Dongjiang Port is divided into three sections: a terminal operation area, a logistics processing area and a comprehensive service area. The 10-square-kilometer bonded area which is under special customs supervision, integrates the most optimal policies with the most comprehensive functions.
The terminal operation area contains six 100,000 tonnage container berths, two 100,000 tonnage and two 40,000 tonnage bulk cargo berths, four passenger berths, and a packing center station which is currently under construction.
The logistics processing area provides standard warehouses for logistics, warehousing, processing and manufacturing, etc. Today, 799,000 square meters of warehouses, 90,000 square meters of low temperature cold storage, and 70,000 square meters of constant temperature and humidity warehouse have been put into use.
The comprehensive service area consists of the largest international cruise home port in Asia. Others include yacht marina, international commodity exhibition center, national 4A class scenic spot and a batch of office buildings and residences in the area.
1. Strategic Orientation
1) The State Council has approved Dongjiang to explore the development as a free trade port.
2) The State Council has approved Dongjiang to speed up the development as the international shipping and logistics hub in North China.
3) The State Council has approved Dongjiang to further develop it as a pilot area by granting many incentive policies.
2. Pilot Policies
On May 10, 2011, the development plan to build Dongjiang as the core functional area of international shipping hub in North China was officially approved by the State Council. Dongjiang was granted with four pilot policies:
1) International Ship Registration
International Ship registration is more flexible in Dongjiang by lowered requirements of ship owners’ share-holding percentage, ship age, classification society admission etc. International cruise companies are allowed to register and set up business entities in Dongjiang, and to make more than one port of call in China.
2) Shipping Tax Incentives
Companies registered in Dongjiang are exempted from business tax of international shipping, transportation, warehousing, loading and unloading, and international shipping insurance income. Automobiles for entrepot export are bonded in Dongjiang. Companies can apply for VAT refund at domestic ports, including inland ports, provided that they export goods via the Tianjin port.
3) Shipping Finance Incentives
China Merchants Bank, Shenzhen Development Bank, Shanghai Pudong Development Bank and Bank of Communications are allowed to set up offshore business branches in Dongjiang. Enterprises in Dongjiang with offshore business demand are allowed to open offshore accounts. Approval procedures are simplified. The commercial banks are encouraged to offer convenience in financing programs of RMB. The flow of the currency is more flexible and internationalized.
4) Incentive Leasing Policy
Financial (equipment) leasing companies are allowed to set up special purpose vehicles (SPV) of aircraft, vessel and large equipment. Relative support must be provided: their purchases of planes have fewer limits within national arrangement, and favors are given in quota of overseas capital usage.
For planes over 25 tons of dead weight purchased from abroad and leased to Chinese aviation companies, import VAT can be reduced to 4 percent.
Financial leasing of ocean structure/equipment is considered as export and is eligible for VAT refund.
3. Unique Policies
Integrating all the policies and functions of bonded zone, export processing zone, bonded logistics park and port zone, Dongjiang is favorable with many unique policies.
Firstly, it enjoys “inside the territory, outside the customs” policy:
1) Foreign cargos into Dongjiang are bonded,
2) Domestic cargos into Dongjiang would be regarded as export with VAT refund,
3) Products manufactured by companies in Dongjiang, either for sales within Dongjiang or for overseas market, are free of processing VAT,
4) Trade between companies in Dongjiang is exemptible from VAT and consumer tax,
5) Even VAT refund of public utilities such as water, electricity, gas and heat consumed for the production of exported goods can be applied,
6) Foreign cargos into DFTP only need to be quarantined and not inspected.
Secondly, Tianjin municipality and Tianjin Binhai New Area government returns 100 percent of local retained tax revenue to Dongjiang, aiming to support the companies’ development. Therefore, tax rebate in Dongjiang is more favorable and flexible than any other region, with higher tax base and a larger amount.
1) 100 percent of companies’ business tax will be returned to Dongjiang
2) 25 percent of VAT will be returned to Dongjiang
3) 40 percent of companies’ income tax will be returned to Dongjiang
4) 40 percent of personal income tax will be returned to Dongjiang.
Thirdly, Dongjiang administrative commission works closely with Tianjin Port to promote the regional development. It provides “one-stop and all-arrangement” services by coordinating other government offices, such as Customs, Inspection and Quarantine Administration, Border Control Bureau, Maritime Affairs Bureau, etc., to help solve the problems for enterprises.