China inaugurated a harbor area with preferential tax rates on
Thursday in the northeastern city of Dalian, a major step towards
forming a free trade zone between China, Japan and the Republic of
Korea (ROK).
The Dayaowan Bonded Harbor Area, located at the Dagushan
Peninsula in the northeastern part of Dalian, enjoys preferential
taxation and foreign exchange policies, said Zhang Shikun, director
of the Dalian Bonded Area Administrative Committee.
"It will remove tariffs for foreign cargo and offer tax rebates
for domestic cargo. It will also exempt businesses from value added
taxes and consumption taxes if they trade with each other," Zhang
said.
Analysts predict the efficiency of logistics will be raised by
20 percent after the port is put into operation.
The first phase of the area covers 3.06 square kilometers and
includes warehouses, cold storage, a container terminal and
processing and logistics services.
About 200 million yuan (US$25 million) has been spent on the
construction of the area since August 31 last year, when the State
Council approved its establishment.
The second phase is expected to be finished by the end of next
year, expanding the area to 6.88 square km.
The Dalian port ranks the seventh largest in China and handled
200 million tons of cargo and 30 million containers (TEUs) last
year.
(Xinhua News Agency June 29, 2007)