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Zhangjiagang :
Zhangjiagang Free Trade Zone

Located in Zhangjiagang city, Zhangjiagang Free Trade Zone (FTZ) was approved by the State Council in 1992 to serve export processing, bonded storage, international trade and commodity exhibition. FTZ has five characteristic industries: logistics, chemicals, mechanics and electronics, textiles, and oils and cereals. In Nov 2008, it was approved by the State Council as a Free Trade Port Area (FTPA), which enjoys the most preferential policies in China. Through years of development, FTZ’s population has grown to 180,000, with a total area of 147 square kilometers.

FTZ has attracted over 4,000 enterprises with a total registered capital of $6 billion. Twenty-three of the world’s top 500 enterprises invest here.

Industry characteristics

The chemical industry, food industry, electrical and mechanical industry, and textile industry are the four pillar industries in FTZ. It has the world’s largest organic silicon production base and the largest food processing base in Asia, as well as the largest steel scrap processing base in China. There are over 120 enterprises in FTZ, whose annual output value exceeds over 100 million yuan ($16.07 million). FTZ also has a high-level service industry. It has obvious advantages in port logistics.

Innovation-driven development

FTZ focuses on improving nine industrial chains in its chemical industry park. It strives to develop new material industry, new equipment industry, new energy industry and new medicine industry. The output value of the emerging industry makes up 40 percent of the total output value of industry. The investment in the emerging industry makes up 80 percent of the total investment in industry. The chemical industry park has earned a reputation as a ecological demonstration industry park and economic park with the most investment potential in China.

Three parks in FTZ

Zhangjiagang Bonded Logistic Park is the largest bonded logistics zone in China. It enjoys preferential policies of FTZ and the Export Processing Zone. It has four major functions: international transportation, international distribution, international procurement and international transit trade. Its key policy supports export refunds for domestic cargo transported into the park and overseas cargo bonded while transported into the park.

Jiangsu Yangtze International Chemical Industrial Park is an affiliated industrial park of FTZ. It is one of the most important professional fine chemical zones in China. It focuses on developing fine chemicals, medicine and project plastics.

Yangtze River High-Tech Industrial Park is an important functional park in FTZ for high-tech industries. It mainly develops IT, new energy (PV), new materials, energy conservation and environmental protection projects, precision mechanics, and auto parts. Main policies of Free Trade Port Area (FTPA):

Cargos transported into FTPA from domestic areas are regarded as exports and enjoy export tax refunds.

Production by enterprises in FTPA used for sale in the zone or domestically can be exempted from corresponding VAT and consumption taxes.

Cargos from FTPA that will enter domestic sales are imposed taxes in accordance with the actual status of goods. Cargos in FTPA enjoy free transactions and won’t be imposed VAT and consumption taxes.

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