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'Six Platforms' set up by Dongguan to expand the domestic market
http://www.dongguantoday.com    4/6/2011 4:27:00 PM

Platform 5: Guangdong Foreign-invested Enterprises Commodities Fair platform

In order to impulse the FIEs in Guangdong to open up the domestic market and accelerate the transformation and upgrading, Guangdong Foreign-invested Enterprises Commodities Fair (FECF) was held in Dongguan. FECF helped the enterprises open up the domestic market in the form of fair and adopted many “enterprise-benefited” measures. Such measures include: arranging the special fund for providing the participating enterprises with free standard booths and buyers with facilitating conditions such as free accommodation and transport; organizing may buyers to negotiate with the participating enterprises; specially formulating the measures of “handle special cases with special methods”, publicizing policies and one-stop services and implementing the domestic-sale measures facilitating enterprises’ work.

On June 18, 2010, the 2nd FECF was continuously held in Dongguan Int’l Conference & Exhibition Center to show the choice and competitive final consumables. The exhibiting industries were determined according to the specific situation and arrangements were made in the light of the industry optimization show area. This FECF held diversified events such as: giving product exhibition of more than 2500 standard booths; serving for domestic sale of products by setting up the purchase negotiation area, inviting large buying groups, distributors and special marts, and arranging the procurement managers and buyers to have the “1-to-1” negotiations with Guangdong’s FIEs; holding the summit forum for domestic sale of FIEs’ products. With the domestic circulation of international products as the subject, this forum invited many famous experts, scholars, authoritative persons of related governmental departments and industries as well as the representatives from the leading enterprises to explore and exchange how to establish the policy mechanism for domestic sale of FIEs’ products; it also launched the campaign of policy publicity and business guidance. Prior to this FECF, the cities assembling the FIEs highly were selected to publicize policies and answer the questions of domestic sale to let such enterprises understand and grasp the related policies and operating practices for domestic sale of FIEs’ products in an all-round way.

Platform 6: The “2-in-1” bonded logistics platform

Supported by HDC, Dongguan has set up its bonded warehouses and export supervised warehouses at the main clearance ports and founded the “Port Bonded Logistics Center” with Dongguan’s characteristics through combining the functions of bonded warehouse and the export supervised warehouse.

(A) The products processed with supplied materials can be sold in the domestic market via the domestic carry-over supervised warehouse, which replaces the method of “one-day tour to HK” domestic sale.

1. The enterprises engaging in processing with supplied materials can continuously use the original operating mode of “import and export on a big scale”.

2. It can avoid expenditure of interest of deferred tax arising out of domestic sale of bonded materials in processing trade.

3. It can reduce the procedures for examination and approval of domestic sale of such materials.

4. It is unnecessary for the CPEs to conduct the domestic sale by exporting and importing the goods. It can do so through changing the “one-day tour to HK” domestic sale into the “supervised warehouse tour” domestic sale to reduce the transport cost and enhance the operational efficiency.

5. It can avoid the requirements for “separate equipment, warehouse and materials” in customs supervision when the enterprises engage in domestic sale.

(B) The finished products in processing with supplied materials can be imported and exported through the supervised warehouse, which can be used to take the place of the re-import (i.e. “one-day tour to HK”) of domestic goods in such a processing. The functional advantages go as follows:

1. The CPEs can continue the original operating mode of “import and export on a big scale”.

2. The CPEs unnecessarily export the goods abroad first, and then re-import them, but they can import and export their finished products through the supervised warehouse, which can increase the efficiency and reduce the transport cost.

3. It can conduce to solving the problems of differences in code of carry-over commodity from customers as well as unit price in CPEs’ carrying over materials for further processing.

4. The overseas logistic distribution warehouse is transformed into the domestic one to reduce the cost of logistics and warehousing.

5. The operating frequency of contract of limited commodities from processing trade can be increased through the inventory in the supervised warehouse to reduce the tie-up of deposit for limited commodities in processing trade.

(C) Providing the vendor managed inventory (VMI) service.

1. When the enterprises develop its own inventory into the vendor’s inventory, that is to say, when the materials are imported and stored in the bonded warehouse, the real right is in the hands of the vendor. The materials can become their own inventory after they are taken out of the bonded warehouse, taxed and conveyed to the production line. This can relieve the stress of fund on the enterprises.

2. The enterprises can conduct the value-added processing by use of the bonded warehouse, such as packing, grading and classifying, printing with shipping marks, dismantling and assembling the stored goods by use of the bonded warehouse.

3. In addition to storing and distributing the customs cleared goods by use of the export supervised warehouse, the enterprises can add the value through circulation by packing, grading and classifying, sorting and packing, printing with shipping marks, labeling, filming and repacking the goods in the warehouse.

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Source:Dongguan Bureau of Foreign Trade and Economic Cooperation  Editor: Tan Jing
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