| With developed countries, like America, Germany, and Singapore, setting up their own free trading zones, free trading becomes an international trend. Setting up this type of special zone has been acknowledged as one of the main forms of regional economy integration. Both to adapt to international economic practice and to perfect the opening up economic system and mechanism, China also tried to establish Shanghai Free Trading Zone, on the base of the 4 special customs inspection areas including bonded zones and comprehensive bonded zones. Under the condition of a society ruled by law, a complete institute of law is the foundation of scientific and of rationale inspection. As the national department administrating import and export supervision and inspection, the customs is surely one of the most essential administrative organizations in Shanghai Free Trading Zone.First, this paper digs into the original definitions and classifications of free trading zone and the development of Chinese exploratory practice on it,systematically stating the functions theoretical basis of all types of special inspection areas. Moreover, this paper investigates the current management situation of Shanghai Free Trading Zone on its functional localization, focusing on problems of deficiency of its legal construction, its out-dated management module and its insufficient management innovation of this experimental area. All in all, this paper tries to speculate rational thinking on reform innovation, to learn from foreign experiences and finally to provide some feasible suggestions,which is of referent and practical value, on customs management system in Shanghai Free Trading Zone, concentrating on its existing problems. |