Shanghai Bonded Zone Printing Enterprises Benefit from Multiple Policies

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For printing companies mainly engaged in export-oriented processing trade, or printing-related companies with trading operations, changes in bonded zone policies and the level of incentives have always drawn considerable attention and remain a focus of close interest for customers at home and abroad. A person in charge of the relevant department of the Shanghai Municipal Administration of Press and Publication said in an interview with a reporter from *China Press and Publication News*: "Shanghai's printing manufacturing industry, which was previously dominated by processing, is now facing a new development issue. At present, printing companies encounter certain bottlenecks in undertaking overseas business. Therefore, we want more printing companies, while taking on overseas orders, to understand the relevant bonded zone policies so that they can enjoy more incentives."

A bonded zone is a new type of economic area established with the approval of the State Council after China's special economic zones, economic and technological development zones and national high-tech industrial development zones. Operating in accordance with established practice, a bonded zone performs such functions as import and export processing, trade, bonded warehousing and commodity display, enjoys the "no licence, no duty, bonded" policy, and operates on an "inside the border, outside the customs territory" basis. It is one of China's economic areas with a high degree of openness, streamlined operating mechanisms and preferential policies.

For printing companies mainly engaged in export-oriented processing trade, or printing-related companies with trading operations, changes in bonded zone policies and the level of incentives have always drawn considerable attention and remain a focus of close interest for customers at home and abroad. At the printing trade and service outsourcing matchmaking meeting held during Shanghai Printing Week, Shi Yumei, General Manager of the Marketing and Customer Department of Shanghai Oriental Huiwen Cultural Service Trade Co., Ltd., presented the relevant preferential policies concerning what preferential policies, subsidy funds or special cultural funds publishing and printing companies can enjoy in the Shanghai Waigaoqiao Bonded Zone.

A person in charge of the relevant department of the Shanghai Municipal Administration of Press and Publication said in an interview with a reporter from *China Press and Publication News*: "Shanghai's printing manufacturing industry, which was previously dominated by processing, is now facing a new development issue. At present, printing companies encounter certain bottlenecks in undertaking overseas business. Therefore, we want more printing companies, while taking on overseas orders, to understand the relevant bonded zone policies so that they can enjoy more incentives."

5 printing companies move into the base

The Shanghai Waigaoqiao Bonded Zone was first established in May 1990 and was China's first bonded zone. In 2007, riding the sound momentum of Shanghai's cultural trade development and seizing the opportunity presented by the Pudong New Area's "pilot first" approach and its pilot for comprehensive supporting reforms, the Shanghai Cultural Trade Platform came into being; the platform is operated by Shanghai Oriental Huiwen Cultural Service Trade Co., Ltd. On November 18, 2011, the platform was upgraded to the National Base for International Cultural Trade.

Shi Yumei introduced that the National Base for International Cultural Trade currently hosts more than 90 resident companies. These include a number of leading cultural enterprises such as the Shanghai Cultural Equity Exchange, Star Media, New Culture Group, Asia Lianchuang and Jingwen Sega, as well as 5 printing companies including Shanghai Printing Group Co., Ltd. In 2011, the base's total annual cultural trade volume reached RMB 500 million, its cumulative tax revenue exceeded RMB 100 million, and the operating revenue of companies registered with the base reached RMB 620 million.

According to the relevant fiscal support policies of the Waigaoqiao Bonded Zone, for newly introduced cultural enterprises, the portion of their value-added tax, operating revenue and total profit that forms local fiscal resources of the new area is subsidized at 100% within the first year and at 50% in subsequent years.

Preferential treatment for import and export of printing equipment

Under the current relevant policies, the customs authorities exercise closed-off management over bonded zones: goods from overseas entering a bonded zone are placed under bonded management, while goods from other areas within China entering a bonded zone are treated as if they had left the country. So what import and export preferential policies can printing companies enjoy in the Shanghai Waigaoqiao Bonded Zone?

Shi Yumei introduced that the Waigaoqiao Bonded Zone is a special customs supervision zone with its own special trade procedures, so making use of the functions of a bonded zone can provide printing companies with corresponding services and tax incentives when importing and exporting printing equipment.

In the past, when exporting printing equipment, the equipment had to leave the country before a tax rebate could be processed; now it only needs to be transported to the logistics park of the bonded zone to be treated as exported, and the company can obtain the tax rebate after customs declaration for departure. Shi Yumei said that this policy provides highly favorable conditions for printing machinery companies in terms of capital recovery and export convenience.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362059.html