Bonded Logistics Park

Tariff Treatment

The primary benefit of operating in these zones is the tax-exempt status of stored goods and the immediate refund of value-added tax upon entry. When domestic goods enter a bonded logistics park, they are treated as having been exported, triggering the tax refund process for the local manufacturer. Foreign goods can enter the zone without being subject to import duties or import value-added tax until they are cleared for the domestic market.

This cash-flow advantage makes these zones attractive for foreign companies using China as a regional distribution hub.

Storage Advantage

The storage and consolidation of merchandise in these zones allow foreign brands to hold stock closer to their Asian consumer markets. Enterprises can perform simple processing tasks like labeling, packaging, and quality testing without triggering import duties. These activities do not constitute manufacturing under customs rules, so the goods retain their foreign status.

This flexibility allows companies to customize products for different regional markets before shipping them to the final destination.

Operational Integration

To operate within these zones, companies must obtain approval from the provincial department of commerce and register with local customs. The logistics operator must integrate its warehouse management system with the customs database to enable real-time tracking of cargo movement. This digital connection ensures that customs can monitor stock levels and verify that no goods leave the zone illegally.

The administrative oversight is strict, and any failure to maintain accurate inventory records can lead to the suspension of the operator’s customs license, which would disrupt the entire supply chain and cause major delays for international shipments.