| Free Trade Zones (FTZ), segregated from other areas, are special economic zones set up by the host countries to enjoy favorable policies and hit certain economic targets. With a long history of more than 450 years, FTZs vary with countries in the scale, function and mode. But they all share the same feature of "A part of the territory of a state where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being exempted (Kyoto Convention)". Stepping into the 21st century with the tendency of the integration of world economy, market globalization and free trade, the FTZs are presenting a prospect of boosting constantly in quantities, expanding widely in more areas, spreading gradually their influence, multiplying the functions, strengthening the interactive contact, improving the management efficiency and the modernizing the management methods.The setting-up of China's Bonded Zones results from the references to the modes of world free ports, free trade zones and the export processing zones with the experience of which and China's opening-up were taken into consideration. Since the first was set up in 1987, there have been 15 Bonded Zones so far in all. Having experienced the stages of construction, initial development and the rapid development, now the economic strength of them has been constantly consolidated. They have played an important role in connecting the markets and resources at home and abroad, attracting foreign investment, introducing advanced technologies, increasing the employment opportunities and radiating and leading the regional economy. However, China's Bonded Zones are distinctly different from the world FTZs in many aspects. The function and orientation as free trade zones have not been completed fulfilled,yet.With the integration of the world economy and the deepening of the China's opening-up, and especially with China's entry into WTO, the further development of China's Bonded Zones are encountered with unprecedented severe challenge. Owing to the congenital weakness, the lack of legislation and the ambiguous positioning, the problems arising from the operation of these zones stand out distinctly when further development is bottlenecked by the previous weaknesses. The functions the zones exert are rather limited. Several departments, leading to a low working efficiency, handle the management. Ports and zones depart and the customs inspection is not smoothly conducted. Under these circumstances, the Bonded Zones are compelled to transit towards the FTZs. That's a tendency required both by the outside environment and the inner initiative of bonded zone itself.However, the opportunities and challenges exit simultaneously. The opportunities brought about by the accession to WTO and the promising prospect of the world FTZs bring us a lot of inspiration. The transition is feasible both theologically and practically given the advantages on preferential policies of the Bonded Zones, the advantages on their location and service system as well as theremarkable achievements these bonded zones have made. Based on the study of the experience of the successful FTZs in the world and the analysis of the current situation of our country, a series of proposals have been put forward on the reforming of the bonded zones, including the proposals on jural construction, function development, policies coordination and management system. We propose to set up an authoritative establishment to manage the zones legally, highlight the logistic function, integrate the zones and ports, develop the relevant function, adjust and carry out all kinds of preferential policies in the free trade zones.The target mode of each bonded zone should not be necessarily the same considered the big difference among the 15 bonded zones on their respective location, port conditions, the industrial structure and the development level. The target mode on the whole, however, can be designed as "being located inside the territory but outside the customs control, opened to a certain extent, led by the logistics service with other comprehensive services, interacted with ports, developed harmoniously, led centrally and managed by the site governments. In view of the considerable demand boosted by the export processing zones for logistics and the facilities and conditions we have for the establishment of international central port, we position the free trade zones as "a green channel of smooth entry and exit of international logistics and trade, a green channel to connect the home and overseas markets and resources, a green channel international trade-oriented, logistics-based, warehousing and processing supported and bonded materials market tied." The strategic significance lies in promoting the development of ports; enhancing the competitiveness through service trade; expanding the radiating and leading effect into more inland areas.Meanwhile, as to the construction of management system and legal guarantee system, the free trade zones should abide by a principle of authoritativeness, condensing and efficiency to carry out a customs inspection concept of "open the free trade zones, control the cisborder areas of customs inspection outside the free trade zones" and to create and innovate the customs inspection modes. After the mode of transition targeting FTZs is confirmed, the transition should be conducted gradually and well planned. The experience is to be spread after the transition proves successful in pilots. It is suggested that the transition follow three stages: pilot stage, adjusting stage and consolidating stage. Efforts will be exerted to set up two or three world-class free trade zones by 2015, as international central port, center of international logistics and world exhibition. Besides, the Law of FTZs will have to be formulated by that time.At present, approval has been given by the central government of China to 8 pilots, including the Shanghai Waigaoqiao Bonded Zones and Qingdao Bonded Zones. These pilots will play a leading and trial role in discussing the ways of transition, the measures and the spreading of the transition experience.In a word, the transition of China's Bonded Areas towards Free Trade Zones is inevitable, feasible, conditional, purposeful, emphatic and sequential. With the development of the global economy, the Free Trade Zones in China presents a promising prospect. |
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