What is the difference between the Bonded Area and Free Trade Zone of Shanghai?Different than other bonded area,the biggest feature of Free Trade Zone is the special custom supervise system called “Domestic but out of Customs”. Which means “Open the A line (Free Trade Zone and boarder line) and control the B line (Free Trade Zone and Non Free Trade Zone)”. General background of Shanghai Free Trade Zone’s Approval, China is now facing the “Second Entrance to the World”: China is not concluded in the European and America Free Trade Zone Negotiation and Pacific Partner Relationship Agreement. China is facing the big risk of “Second Entrance to the World” according the probability changes of future international trading rules and patterns.
General Planning of Shanghai Free Trade Zone:1. Tax policies with more international competitive.
2. Foreign financial institutions open foreign capital banks.
3. Promote the innovative pattern of international trading.
4. Private capital and foreign financial institutions open joint venture banks.
5. Reforming and perfecting the area supervisal system.
6. Innovation of International Ship registration system.
7. Allow the registration of foreign invested credit information company.
8. International CNY and foreign exchange reformation.
9. No minimum register capital for financial leasing.
10. Free Trade Zone promote the conveniency of enterprises invest abroad.
11. CNY convertible (on probation).
12. Cancel some limitations of foreign investment enterprise requirements.