Free trade zone refers to an area in which member countries that have signed a free trade agreement completely cancel tariffs and quantitative restrictions in commodity trade, so that commodities can flow freely among member countries.
Free trade zone can be divided into commercial free zones and industrial free zones. Commercial free zones do not allow goods to be unpacked, retailed and processed; industrial free zones allow duty-free import of raw materials, components and accessories, and designate processing areas for processing and manufacturing.
The difference between bonded zone and free trade zone
Regulatory efforts are different
The bonded area is within the scope of special supervision of the customs, and the goods must be registered with the customs before entering the area. exempt areas;
Different storage time limits
The storage period of goods in the bonded area is limited, generally 2 to 5 years; while in the free trade zone, the storage period of goods is not limited;
Cargo management is different
Since the goods in the bonded area are “temporarily not taxed”, the goods are managed by account books; in the free trade zone, the main consideration is the smooth flow of goods as the basic condition, and most free trade zones adopt the door-to-door management method, and the operation procedures are more simplified , lower transaction costs;
At present, the functions of many bonded areas are relatively simple, mainly for the role of transit storage, which has a limited role in driving the surrounding economy; while free trade areas are generally logistics distribution centers, with large imports and large exports, relatively developed processing trade, and strong radiation to surrounding areas It can promote the development of regional economy.
Distribution of Free Trade Zones in China
There are currently 18 free trade zones under construction, namely:
● China (Tianjin) Pilot Free Trade area
● China (Fujian) Pilot Free Trade area
● China (Liaoning) Pilot Free Trade area
● China (Zhejiang) Pilot Free Trade area
● China (Henan) Pilot Free Trade area
● China (Hubei) Pilot Free Trade area
● China (Chongqing) Pilot Free Trade area
● China (Sichuan) Pilot Free Trade area
● China (Shaanxi) Pilot Free Trade area