China approves establishment of comprehensive bonded zone in Xiongan

China's State Council officially approved the establishment of the comprehensive bonded zone in Xiongan New Area on June 25, CMG reported on Friday.

The comprehensive bonded zone is located in Xiong County of north China's Hebei Pilot Free Trade Zone. It covers a total area of about 0.63 square kilometers, and the first phase of the project covers an area of about 0.42 square kilometers.

A bonded zone is an area within a country where there are special trade terms or policies. For example, foreign goods can enter the region without paying duties and be kept bonded. The manufacturing and trade inside the zone can be exempt from value-added and sales taxes.

The first phase of the Xiongan comprehensive bonded zone is divided into seven functional areas, including the customs supporting area, inspection and supervision area, quarantine treatment area, logistics area, cross-border e-commerce area, testing and maintenance area, and comprehensive industrial area.

The construction of office buildings, inspection and supervision warehouses, and quarantine treatment projects have been completed, and part of bonded warehouses that have been well built are capable to meet the operation needs of enterprises at the early stage, according to the CMG report.

A person in charge told CMG that the bonded zone is highly advanced as it has the highest level of openness, the best policies, the most comprehensive functions, the most flexible operation system and the most convenient customs clearance.

In the next stage, the bonded zone will give full play to its policy advantages, uphold the principles of innovation, openness, green and synergy, strengthen R&D, and develop high-tech industries, sales services and modern logistics, striving to build it into a national model for comprehensive free trade zones, the person in charge said.

China announced plans to establish the Xiongan New Area on April 1, 2017, which is located about 100 kilometers southwest of Beijing, aiming to build a green city on an area of 1,770 square kilometers, featuring innovation and providing a national model of high-quality development.