Influence of Bengbu Free Trade Zone on Bengbu

Legal analysis: Free trade zone allows foreign ships to enter and exit freely, foreign goods are imported duty-free, and the quota control on imported goods is abolished, which is also a further extension of free port and a special functional zone for a country to open to the outside world. In addition to most of the characteristics of a free port, a free trade zone can also attract foreign capital to set up factories, develop export processing enterprises, allow and encourage foreign capital to set up large-scale commercial enterprises and financial institutions, and promote the all-round and all-round economic development in the region. The limitation of free trade zone is that it will lead to the distortion of commodity flow and tax avoidance. If there are no other measures as a supplement, the third country is likely to transport the goods to the member countries with lower tariffs or trade barriers in the integration organization, and then transfer the goods to the member countries with higher trade barriers. In order to avoid this distortion of commodity flow, the free trade zone organization has formulated the "principle of origin", which stipulates that only the "products of origin" of free trade zone members can enjoy the free trade treatment given by member States. Theoretically, when the value of finished products produced by member countries accounts for more than 50% of the total value of products, the products should be regarded as products of origin. Generally speaking, the more the imports from third countries can compete with the products produced by the member countries of the free trade zone, the higher the added value content of the raw materials products of the member countries. The meaning of the principle of origin shows that the free trade zone is exclusive to non-member countries.

Legal basis: People's Republic of China (PRC) Foreign Trade Law.

Article 5 People's Republic of China (PRC) shall, on the basis of equality and mutual benefit, promote and develop trade relations with other countries and regions, conclude or join regional economic and trade agreements such as customs union agreements and free trade zone agreements, and participate in regional economic organizations.

Article 6 In terms of foreign trade, People's Republic of China (PRC) grants MFN treatment and national treatment to other contracting parties and participants in accordance with international treaties and agreements it has concluded or acceded to, or grants MFN treatment and national treatment to each other in accordance with the principle of reciprocity and reciprocity.