What's the difference between a free port area and a bonded area?

A free port, also known as a "free port", refers to a port area located within a country's borders and outside the customs management checkpoint, allowing foreign goods and funds to enter and leave freely. Goods entering and leaving the port area are exempt from customs duties, and are allowed to engage in business activities such as modification, processing, long-term storage or sales in the port area. Customs duties will only be paid when the goods are transferred to the tax area of the country where the free port is located. Free industrial zone, free processing zone and free trade zone all have functions similar to free ports.

A free port is usually a port or port area that is not under the jurisdiction of any national customs. Foreign goods can enter and leave the port duty-free, and can be processed, stored, traded, loaded and unloaded and repackaged there. However, foreign ships must abide by health and immigration laws and regulations. The scope of a free port is limited to a specific area of the port, and some of them extend to the adjacent area of the port, which is generally called a free zone. The purpose of establishing free zones in some countries is to develop transit trade, attract foreign ships or goods to transit, and obtain freight, stacking and processing fees. At present, the famous free ports are Beirut (Lebanon), Tangier (Morocco), Ceuta (Spain), almeria (Spain), Aden (South Yemen), Djibouti (Djibouti), Malacca (Malaysia), Singapore (Singapore), Goa (India), Hong Kong and Macao, and Heiglan Island in the North Sea. Georgetown (Cayman Islands) in the Caribbean, Panama City and Cologne at both ends of the Panama Canal, Monrovia (Liberia) in West Africa, Niagara Falls on the west bank of Niagara Falls with the largest water volume in the world (USA), Saint Catherine (Canada) on the east bank, etc. It is generally believed that free ports exist only in developing countries. In fact, the most developed capitalist countries in the world also have free ports, but with different names. Since the 1960s, Britain, France, Belgium, the Netherlands, Denmark and other countries have set up "special zones" and stipulated preferential treatment measures to use foreign capital to develop industry and commerce in underdeveloped areas of China. The underdeveloped border areas such as Alsace in the northeast of France and the north and south of the Netherlands have all implemented liberalization policies. The United States has established dozens of "free trade zones" near ports, airports, stations and freight yards. This kind of free port is mainly used as a transshipment station to temporarily store imported goods for sale; In addition, foreign businessmen are allowed to process, assemble, label and sort in this area. Since the 1960s, especially in recent years, many export processing zones have been formed in the world, such as Shannon on the west coast of Ireland, the Mexican border, Manaus in Brazil, Mayaguez in Puerto Rico, La Romana in Dominica, Candeira and Santa Cruz in India, Jurong in Singapore, Colombo in Sri Lanka, Bataan and Maidan in the Philippines, Puton, Bayanlepa in Malaysia and Tan Bin in Indonesia.

Bonded Zone is a new economic zone approved by the State Council after China Special Economic Zone, Economic and Technological Development Zone and National High-tech Industrial Development Zone. As the bonded area operates in accordance with international practice and implements more flexible and preferential policies than other open areas, it has become the "bridgehead" for China to connect with the international market. Therefore, the bonded area has become the focus of close attention of domestic and foreign merchants at the beginning of development and construction.

Bonded area has the functions of import and export processing, international trade and bonded goods display. Enjoy the policy of "free license, tax exemption and bonded" and implement the operation mode of "domestic customs clearance". It is one of the economic regions with the highest degree of opening to the outside world, the most convenient operation mechanism and the most favorable policies in China.

1June, 990, with the approval of the central government, China No.1 Bonded Zone-Shanghai Waigaoqiao Bonded Zone was established in Shanghai. Since 1992, the State Council has successively approved the establishment of 14 bonded zone and economic development zones enjoying preferential policies for bonded zones, namely Tianjin Port, Dalian, Zhangjiagang, Shenzhen Shatoujiao, Shenzhen Futian, Fuzhou, Haikou, Xiamen Xiangyu, Guangzhou, Qingdao, Ningbo, Shantou, Shenzhen Yantian Port, Zhuhai Bonded Zone and Hainan Yangpu Economic Development Zone. At present, China's bonded area 15 isolation facilities have all passed the acceptance of the General Administration of Customs and put into operation.

From 65438 to 0992, after Comrade Deng Xiaoping's speech on the southern tour was delivered, the bonded areas were accelerated in substance, and the capital construction progressed rapidly, initially forming a soft and hard environment to attract foreign investment. Domestic and foreign businessmen are enthusiastic about investment, most of the land in the first phase of the bonded area has been leased or sold, and the second phase of the project has been further developed, which has also led to a gratifying situation of attracting foreign investment.

After years of exploration and practice, the bonded areas in China have gradually developed into an important part of the local economy according to their special functions and local actual conditions. At present, the functions formed by centralized development include bonded logistics and export processing.

With China's entry into WTO, the national bonded zone has gradually formed a regional pattern of the Pearl River Delta region dominated by Guangzhou and Shenzhen in the south, the Yangtze River Delta region dominated by Shanghai and Ningbo in the middle and the Bohai Bay region dominated by Tianjin, Dalian and Qingdao in the north. The bonded areas in the three regions have become important ports for China to communicate with the world, forming a unique logistics operation mode.