Logistics centers (which are within a Bonded Logistics Zone) are used to store goods or used by third Party Logistics services to carry out warehousing and logistics services.
There are many advantages provided in the BLZ. In the past, companies were required to ship all the goods to Hong Kong to complete the export process to receive value-added tax (VAT) rebate. However, this adds unnecessary logistics cost and lead time. Today VAT rebates can be applied directly at the BLZs.
In addition, all goods within the BLZs are considered to be off-shore, thus they can be parted and regrouped, then shipped to different destinations. They can also be stored free of duty without time limitation. As a result companies can now have shipments containing mixed products to satisfy the customer requirements, specifically the delivery date and product mix. Watts International Trading Co. Ltd is one of the companies taking advantage of the Ningbo Bonded Logistics Zone. Their general manager, Mr. James Jiang, expressed that their lead time and transportation costs have been reduced.
Shanghai Waigaoquiao Bounded Logistics Zone was the first bonded logistics zone (also known as Bonded Logistics Park(BLP)) which started operating in 2004. There are currently 8 logistics zones located in China (Shanghai, Dalian, Zhangjiagang, Xiamen, Ningbo, Qingdao, Tianjin, and Shenzhen).
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