Study On Key Issues Of Transformation From Yangshan Bonded Port Zone To Free Port

A bonded port zone，subject to approval by the State Council，is an area whichintegrates port operation，logistics service and processing trade. It is a special areawith the highest transportation level，the most preferential policies，the most completefunctions in China. Foreign goods entering the port zone are free from tariff.Domestic goods entering the port zone will be deemed as exports，and are entitled totax rebates. With the policy of “release on the first line，restrict on the second line，free within the area”，the bonded port zone is the pioneering zone for the country toimplement the strategy of free port.Defined as “International Comprehensive Shipping Experimental Zone”，Yangshan Bonded port Zone，which is the first bonded port area approved by theState Council，has become the carrier to realize the national strategy. Since its formalopening operation on10Dec2005，the container throughput has increasing steadily.It has reached11.57millions TEUs in2011. Meanwhile，compared with theinternational free ports，Yangshan Bonded port Zone differs in a number of ways. Forexample，in practicing the philosophy of “outside the customs boundary”，we haveimplemented only the tax policy. In practicing the philosophy of “release on the firstline”，the owners still should file a record to the customs. The lack of legislation，abackward administrative system，the traditional customs control，all these factors haveimpact on the functions of Yangshan Bonded port Zone.Based on the successful experiences of international free ports， thethesis focuses on the transformation from Yangshan Bonded Port Zone to Free Portand comes up with the following suggestions: make national laws and regulations forthe bonded port areas and to perfect the existing Interim Measures of the Customs ofthe People’s Republic of China for the Administration of Bonded Port Areas; perfectthe management system for bonded port areas with the construction of a two-tieredmanagement system (central and regional); develop international transit shipment;establish a single window system; develop waterway-waterway transit modal andrail-sea intermodal transportation; innovate the customs regulatory approach with theimplementation of two steps declaration; develop shipping service industry byfastening tax refund experiment for FOB ports，developing offshore finance，andcarrying out the Second Registration of the Ship.