Import-Export, Foreign Trade No Longer Allowed in China’s Bonded Zones

Posted by Reading Time: < 1 minute

Apr. 2 – The General Administration of Customs, aiming to develop entrepôt trade within bonded logistics zones and ports, has recently modified two measures regulating the administration of these bonded areas in China to disallow import-export and foreign trade.

Bonded logistics zones and bonded ports in China were key locations for international trading before China opened up the door to trading with the creation of the foreign-invested commercial enterprise vehicle in 2004. As importing and exporting has moved away from the strict purview of the bonded zone, the Chinese government has moved to have these zones concentrate on their strongest areas.

The two circulars have modified the allowable business activities in a bonded logistics zones from “import and export trade, including entrepôt trade,” to “international entrepôt trade,” and modified the allowable business activities in bonded ports from “foreign trade, including the international entrepôt trade” to “international entrepôt trade” only.

The changes take effect on May 1, 2010.

Enterprises established in bonded areas and engaged in import-export trade or foreign trade should consider restructuring or relocating the disallowed portions of their business to a non-bonded area.