Excerpt from:  China Supply Chain and Logistics Strategy
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August 18, 2005

Comparing Bonded Zones with Bonded Logistics Centers A and B

New Customs Measures Took Effect July 1, 2005 Pertaining to Bonded Logistics Centers

On June 23, 2005 the Customs General Administration of the PRC issued Provisional Administration Measures on Bonded Logistics Centers (Haiguan Zongshuling [2005] No. 129 (A type centers) and Haiguan Zongshuling [2005] No. 130 (B type centers).

 


It is important to note that Bonded Logistics Centers A and B are not the same as the Bonded Logistics Zones (also referred to as Bonded Logistics Parks). The Central Government State Council is the approval authority for the Zones, whereas Customs authorizes the A & B Logistics Centers.

 


Type A Logistics Centers

Type A Logistics Centers consist of warehouses with one operator. Currently, type A Logistics Centers in China don’t exist. However, the Merchants Bureau is under application for this type of logistics center.

 


Type B Logistics Centers

Type B Logistics Centers are groups of warehouses with different operators. Currently, the Suzhou Bonded Logistics Center is the only type B Logistics Center in operation in China. Companies such as UPS and Bax Global are operating in this Logistics Center.

A notable difference at the Suzhou Bonded Logistics Center is that companies claim they can change their HS codes during processing, whereas in the Bonded Logistics Zones you cannot.

 

Bonded Logistics Zones

Bonded Logistics Zones are located near the ports.
 

Conclusion 

 

Further research is needed to determine if the A or B type centers can simultaneously be located inside a Bonded Logistics Zone. It appears that it is intended that the logistics centers will be located in areas separate from the logistics zones near the ports. It will take some time for further implementation of the Logistics Centers before a more clear distinction can be made between these 3 very new logistics vehicles in China.


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