Tianjin Free Trade Zone
Updated : 2019-06-14Print Print
Tianjin Free Trade Zone serves as a development zone, a free trade zone and a comprehensive bonded area. The Tianjin Port Free Trade Zone integrates the functions of international trade, international logistics, processing and commodity exhibition and promotion. A1.5-sq-km Logistics Park is located in the zone.
In October 2000, the municipal government of Tianjin and CAAC's North China Regional Administration approved the establishment of a 1-sq-km Tianjin Airport International Logistics Park in the FTZ. The park was planned to develop aviation logistics, promote the construction of an aviation logistics center in North China and improve the services of sea-air transportation.
In October 2002, the Tianjin Airport Logistics & Processing Area was approved by the municipal government. It is developed and operated by the administrative committee of Tianjin FTZ. It was designated to develop modern services, transformation of scientific and technological achievements and advanced manufacturing.
In May 2005, Tianjin FTZ relocated the 1-sq-km Port Free Trade Zone in the Tianjin Airport Processing Area and then launched the first airport free trade zone in China.
In March 2008, the State Council, China's Cabinet, approved a comprehensive bonded zone in a 2-sq-km area in the Airbus factory in Tianjin. By then, Tianjin FTZ had become the premier destination for investors with unbeatable policy support for various businesses.
As a special economic area for China's opening-up, Tianjin FTZ enjoys all kinds of preferential policies, especially on customs, taxation and foreign exchange.
(1) Imported goods in the FTZ are exempt from tariff, value-added tax on imported goods and consumption tax and are free of quota and license management. There is no restriction on storage time. The cargos are free going in and out between the FTZ and the outside world.
(2) The machinery, construction materials, office supplies and raw materials imported by enterprises in the FTZ and their spare parts used for processing exported products are also exempt from tariff, value-added tax and consumption tax and are free of quota and license management.
(3) Both the Chinese and foreign invested companies in the FTZ can open foreign exchange remittance accounts; foreign currency from the enterprises’ business operations can be settled according to the willingness exchange settlement system; the trade between the FTZ and overseas entities don’t need to go through the procedures of verifying the cancellation of import payments and export collection in foreign exchange.
(4) The enterprises processing the export-oriented products in the FTZ need neither a deposit account nor the manual on processing; the products sold in the FTZ are exempt from added-value tax in the production process; Those enterprises in the FTZ that partially use overseas materials to process the products for domestic market must only pay the tariff and value-added tax for the overseas materials.
The administrative committee of Tianjin FTZ is an agency dispatched by the municipal government and is qualified to approve projects as a provincial-level authority. The Tianjin Customs, entry-exit inspection and quarantine bureau, foreign exchange administration, Tianjin Municipal Office of State Administration of Taxation, local taxation bureau, public security bureau, procuratorial organ, court and fire fighting authority have all set branches there. The FTZ has always adhered to the enterprise-oriented principle and devoted to providing first-class services in line with international practices.
Whole-course voluntary agency service and full course of follow-up service will be available for newly registered projects. The construction of projects will be promoted by multi-joint collaboration. Specially-assigned people will be in charge of the project operation and provide diversified services.
The systems such as regular visits to enterprises, briefing and complaints as well as quick response mechanism in later period for enterprises have been launched and the approval procedures have been streamlined and are opened to the public. The responsibilities and time limit are definite.
An administrative service center and a service center for international enterprises have been set up in Tianjin and have taken the lead to pass the ISO 9001 quality authentication. The business license is issued within three days after the registration of the enterprise. The projects involving planning and construction are approved within seven days, and the general items are conducted on the same day.
Aeronautical manufacturing: A group of aviation companies including Airbus, Goodrich, PPG, Thales, Indra, and Avicopter, AVIC's helicopter branch have settled at the zone.
Equipment manufacturing: Caterpillar, Oshkosh, Terex from the US, Canada's Alcan, Magna, France's Alstom, Italy's Zanussi and China's Liugong Machinery Co and Tebian Electric Apparatus Stock Co Ltd have launched branches at the zone.
Scientific research and development: CSC, Amdocs, VIA Technologies, ZTE, Datang Telecoms Technology Co, China Mobile, China Unicom, Isoftstone, Eutech and Huaqi Information Digital Technology have opened research centers at the zone.
Aviation logistics: GLP from the US, German's Lufthansa Cargo, Singapore's Mapletree and YCH Group has expanded their businesses in the FTZ.
More than 10 Chinese and foreign banks and a group of funds and leasing companies such as the Shipbuilding Industrial Investment Fund, Minsheng Financial Leasing, Bohai Leasing and Changjiang Leasing have settled at the zone. It is home to a shopping mall and supermarket brands from Japan, France, Thailand, Hong Kong, such as Isetan, Carrefour, Chia Tai and China Resources. The corporate headquarters economy in the zone is booming as MCC TianGong Group Corporation, China COSCO Shipping Corporation, Ansteel and Baogang Group have selected it.
The tenants include Germany's Benz, Militzer & Münch from Swiss, C.Steinweg from the Netherlands, Japan's Okaya, YCH Group from Singapore, Hong Kong's Kerry and OOCL, as well as COSBULK and Zhenhua Logistics from the Chinese mainland.
There are some 10 world commodities trading markets for oil, automobile, cotton, coal, rare metals and chemical materials. A group of international trade enterprises like 3M from the US, Germany's Volkswagen, Heidelberg, Japan's Sumitomo, Mitsui, Itou Tada, Toyota, MITSUBISHI as well as Samsung, SK from South Korea have settled in the FTZ.
Caterpillar, Chevron from the US, JOY Global from the UK, Australia's Wister, Kerry Grain and Oil, Tianjin Pipe Group and Heilongjiang-based Jiusan Grease Group have built production bases at the zone.