By Yuling Chen, Photo by Yiling Wang, iChongqing News
China’s inland comprehensive bonded zones (CBZs) have led the opening-up in hinterland China, according to the Chongqing Municipal Commission of Commerce. Southwest China’s Chongqing Municipality currently has four bonded zones--Lianglu-Cuntan Free Trade Port Area, Chongqing Xiyong CBZ, Jiangjin CBZ and Fuling CBZ, and four bonded logistics centers--Tuanjie Village Railway Bonded Logistics Center (Type B), Nanpeng Highway Bonded Logistics Center (Type B), Wanzhou Bonded Logistics Center (Type A) and Guoyuan Bonded Logistics Center (Type B).
Chongqing Xiyong Comprehensive Bonded Zone in Xiyong Area
In 2018, the foreign trade value of Xiyong Comprehensive Comprehensive Zone exceeded RMB 200 billion, contributing nearly 40% of Chongqing's total. Its laptop output constituted 25% of the global total. Its value ranked 4th among the 96 comprehensive bonded areas in the country. It has become an important platform for Chongqing to build itself as a pioneer of opening-up in hinterland China, an important carrier for deepening institutional innovation, and an important engine for promoting industrial restructuring.
Xiyong comprehensive bonded zone excels in many aspects. For example, international cooperation represented by SK hynix (Chongqing) and the smart factory represented by Yizhe (Chongqing) Company.
SK hynix (Chongqing) in Xiyong Comprehensive Bonded Zone
SK hynix has four production facilities in Chongqing and Wuxi, China, and business sites in Icheon and Cheongju. In Chongqing, the company deals with chips package and test. Yizhe (Chongqing) Company, invested by a Shanghai-based enterprise in China's coastal area, chooses Chongqing in inland China to develop its motherboard, the main printed circuit board, production.
Smart workshop of Yizhe (Chongqing) Company in Xiyong Comprehensive Boned Zone
These representatives, varying in different sectors, both mentioned that the reason why they choose Chongqing lies in the city's favorable business environment.
When it comes to Xiyong CBZ, it is because of its leading role in opening-up in hinterland China, evidenced by piloting in internal processing, selective taxation for domestic sales, bonded maintenance services, the establishment of "single window", and the construction of a smart CBZ. In addition, Xiyong CBZ supports municipal economic development in terms of foreign enterprises and capital. It is home to 32 well-known foreign-funded enterprises, and their output value accounts for more than 95% of the industrial output value of the whole region. In 2018, Xiyong CBZ actually utilized foreign capital of USD 630 million. Moreover, the comprehensive bonded zone promotes the industrial transformation and upgrading in Chongqing.
Comprehensive bonded zones in Chongqing, serving as an important platform for the city to be an opening-up pioneer in hinterland China, have displayed their roles to drive and lead.
Chongqing will intensify its efforts to play the role of the existing bonded zones, focusing on improved functions and more business forms, promoting industrial agglomeration, transformation and upgrading. These bonded zones can also promote coordinated development, and further demonstrate the support and leading role in the open economy. In 2018, the total import and export value of the two bonded areas of Lianglu-Cuntan Free Trade Port Area and Chongqing Xiyong CBZ was RMB 313.6 billion, up by 20.5% year on year, higher than the city's growth rate by 4.6 percentage points, It accounted for 60.1% of the city's total foreign trade with an increase of 2.1 percentage points over the previous year. Specifically, the import and export of Lianglu Cuntan Free Trade Port Area reached RMB 106.9 billion, increased by 20.4%, and the Xiyong CBZ exceeded RMB 200 billion, reaching RMB 206.7 billion, grew by 20.6%.
Bonded logistics has developed rapidly. Chongqing has used international trade logistics channels to expand the business of international postal parcels, complete vehicles, cold chain and other fields. Last year, the city's cargo bonded logistics reached RMB 63.7 billion, an increase of 10.6% year on year, accounting for 12.2% of the city's total import and export.
Last year, the processing trade volume in the bonded area accounted for 94.7% of the city’s total. Xiyong CBZ mainly develops electronics manufacturing industry and cultivates smart terminal product manufacturing, electronic core components (chips), Internet big data as well as import and export trade. It produced 130 million pieces of intelligent terminal products, including 42.5 million notebook computers, accounting for 25% of the global total.
Chongqing gives full play to the role of the comprehensive bonded zone as a pilot project for institutional innovation in the Pilot Free Trade Zone, explore institutional innovation and facilitation measures, and conduct pilot reforms of trade functions, selective taxation, and internal processing.
Xiyong Comprehensive Bonded Zone took the lead in carrying out pilot projects such as internal processing, selective taxation for domestic sales, bonded maintenance services and VAT general taxpayer qualifications, all reduced the tax burden for enterprises.
In combination with the reform of national customs clearance integration, Chongqing has optimized the comprehensive service environment and compressed customs clearance time. The overall customs clearance time of port import and export last year decreased by 65.49% and 93.78% respectively. Moreover, measures including international trade single window, 7×24 hour customs clearance, port entry and exit charge catalog have reduced costs in import and export links and improved the overall customs clearance efficiency and trade facilitation level.
In promoting the high level of openness and high-quality development of comprehensive bonded zones, Chongqing will give full play to the advantages of processing trade as the main force and of open factors.
Moreover, Chongqing endeavors to achieve the goals as manufacturing, R&D and design, logistics distribution, inspection and maintenance, and sales and service centers.
Chongqing will continue to further improve the policy functions for domestic and international markets and strengthen the role of enterprises as market entities. In addition, the city focused on optimizing the business environment and promotes R&D and innovation. At the same time, more new business forms will be created.
By promoting high-level openness and high-quality development of the bonded area, Chongqing will enhance the abilities to drive economic development and management innovation, and accelerate the innovation and upgrading. All in all, it aims to form a new opening-up pattern in an all-round way and to be a pioneer of opening-up in hinterland China.
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