Shanghai Bonded Zone Policies Deliver Multiple Benefits for Printing Exporters

For printing firms focused on export-oriented processing trade, and for printing-related businesses involved in trade, changes to bonded zone policy and the level of incentives remain a key concern for customers at home and abroad.

A responsible official from the relevant department of the Shanghai Municipal Administration of Press and Publication told China Press and Publication News that Shanghai's printing manufacturing sector, once driven mainly by processing, is now facing a new development issue. There are still bottlenecks when printing enterprises take on overseas work, so more of them should be helped to understand bonded zone policies while accepting foreign orders and thereby gain greater access to incentives.

Bonded zones are a newer type of economic area approved by China's State Council, following special economic zones, economic and technological development zones, and national high-tech industrial development zones. Operated under established practice, they support import and export processing, trade, bonded warehousing, and commodity display. They apply a no-license, no-duty, bonded policy and operate on an inside-the-border, outside-the-customs-territory model, making them one of China's more open, efficient, and preferential economic zones.

At the printing trade and service outsourcing matchmaking meeting held during Shanghai Printing Week, Shi Yumei, General Manager of the Marketing and Customer Department at Shanghai Oriental Huiwen Cultural Service Trade Co., Ltd., outlined the relevant incentives. She explained which preferential policies, subsidy funds, or special cultural funds publishing and printing enterprises can access in the Shanghai Waigaoqiao Bonded Zone.

In the same interview, the department official stressed that Shanghai's shift away from a processing-dominated printing base is entering a new phase. Since overseas order acquisition still faces bottlenecks, policy communication matters, so more printing companies can learn about and use bonded zone benefits in their foreign-order operations.

Five printing companies join the base

The Shanghai Waigaoqiao Bonded Zone was established in May 1990 and was China's first bonded zone. In 2007, with Shanghai's cultural trade momentum and Pudong New Area's pilot-first and comprehensive reform pilot opportunities, the Shanghai Cultural Trade Platform was launched. It is operated by Shanghai Oriental Huiwen Cultural Service Trade Co., Ltd. On November 18, 2011, the platform was upgraded to the National Base for International Cultural Trade.

Shi Yumei said the National Base for International Cultural Trade now hosts more than 90 resident enterprises. These include major cultural players such as the Shanghai Cultural Equity Exchange, Star Media, New Culture Group, Asia Lianchuang, and Jingwen Sega, plus five printing enterprises including Shanghai Printing Group Co., Ltd. In 2011, the base recorded annual cultural trade volume of RMB 500 million, cumulative tax revenue of more than RMB 100 million, and operating revenue of RMB 620 million from registered enterprises.

Under the Waigaoqiao Bonded Zone's fiscal support policy, for newly introduced cultural enterprises, the portion of value-added tax, operating revenue, and total profit that forms local fiscal resources of the new area receives a 100% subsidy in the first year and a 50% subsidy in subsequent years.

Import and export incentives for printing equipment

Under current rules, customs applies closed management to bonded zones: goods entering from overseas are placed under bonded management, while goods entering from other parts of China are treated as exported. So what import and export incentives can printing enterprises enjoy in the Shanghai Waigaoqiao Bonded Zone?

Shi Yumei explained that the Waigaoqiao Bonded Zone is a special customs supervision zone with unique trade procedures. By using bonded zone functions, printing companies can obtain corresponding services and tax incentives when importing and exporting printing equipment.

In the past, printing equipment had to leave China before a tax rebate could be processed. Now, it only needs to be moved to the bonded zone's logistics park to be treated as exported, and after customs declaration for departure the company can obtain the rebate. Shi Yumei said this policy is highly favorable for printing machinery companies' capital recovery and export convenience.

This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362059.html