Frontage processing

As an open area enjoying a special policy, the Free Trade Area has a natural advantage of processing added value. According to relevant policy for the Free Trade Area given by our country, customs duties, value-added tax and consumption tax are not levied, and quota and license management is not implemented when processing enterprises in the Free Trade Area use machinery equipment, capital construction materials, office articles and raw materials as well as spare and accessory parts needed for processing export products outside China. There is no need to set a security deposit account and get a processing manual when enterprises process export products in the Free Trade Area; the production link value-added tax is exempted when the products are sold in the Free Trade Area; and only the customer duty and the added-value tax of the oversea material pieces are paid when products made from partial oversea material pieces are sold in the Area, so that the Free Trade Area becomes the best area for going in for processing manufacturing and processing trading. The Tianjin Free Trade Area has attracted multinational companies such as Caterpillar, Delta Electronics and Caltexoils; and the frontage free trade processing industry has become the special industry in the Free Trade Area.

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