China Free Trade Zone

Free trade zones are an ideal way to foster positive international trade relations and create a free exchange of goods between countries. These zones exist all over the world, and China has recently joined the ranks of nations that wish to take advantage of the benefits of an FTZ.

China Free Trade Zone Benefits to U.S. Exporters

U.S. exporters benefit from free trade zones because the zones give them the flexibility to combine originating and non-originating materials within the zone, all while deferring duties on the non-originating goods if they are transshipped into other nearby markets. A China free zone is ideal because there are so many emerging markets opening in the Asian nations around the country. Now exporters can:

By establishing FTZs in the country, the Chinese government is opening the door for U.S. exporters to do significantly more business in the area at a decreased cost, thus benefiting the shippers in a big way.

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How Does the China Free Trade Zone Work?

Because of the China free zone, you can now source materials from other countries (like raw materials, parts, and fabrics) and ship them to China for assembly. You then have the benefit of:

Did You Know?

The first FTZ in China opened in Shanghai as a pilot program as the country sought to test economic reforms. When all is said and done, the country may set up as many as 12 China free zones all across the nation.

Not only does this zone have a positive impact on duties (thus reducing your expenses), but by easing the customs approvals process it makes your supply chain lean, streamlined, and efficient. Plus, we have established a warehousing system in the country to serve all your distribution and storage needs. Thanks to our international presence, LILLY + Associates makes transporting your cargo across the world – including the Far East – a simple process that not only keeps your supply chain on track, but helps you save money and avoid hassle.

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