Tianjin Economic Development Area's Bonded Logistics Center Will Begin Operations

TIANJIN, China, May 19, 2010 - A ceremony was held on May 18 to mark the operational start of the custom
operations for Tianjin Economic Development Area's Bonded Logistics Center.
The event was attended by Li Peilin and Wei Xinping (Commissioner and Vice
Commissioner of Tianjin Customs and Excise, respectively), Gu Xu (Deputy
Secretary of Tianjin Immigration Inspection and Quarantine Bureau), He
Shushan (Development Area's Management Committee Secretary and Director of
Management Committee), Ai Yamin (Deputy Director of Development Area's
Management Committee), and other officials-in-charge from related units.

In a speech given by He Shushan, he said that since 2004, the Tianjin
Economic Development Area has been making efforts to adapt to the development
trends in the modern logistics industry and satisfy the logistics and
distributional needs of regional businesses. With strong support and
cooperation from organizations like the China Customs and China Commodity
Inspection Quarantine (CCIQ), the development area completed work related to
the application, setting up, and joint inspection and acceptance of the
Bonded Logistics Center, finally realizing the official operational start of
the center. This will have positive effects on improving the regional
investment environment and promoting the development of a modern logistics
industry. The development area will fully utilise the Bonded Logistics Centre
as a platform to achieve policy functions to further promote the development
of a modern logistics industry, increase the overall competitiveness of
businesses, and conscientiously provide the best services to businesses
within the area, so as to make greater contributions towards the rapid
development of Tianjin city and Binhai New Area.

Tianjin Economic Development Area's Bonded Logistics Center was funded
and built by the Tianjin Development Area Management Committee after it was
approved by the General Administration of Customs on December 26, 2008. It
was officially inspected and approved by a joint inspection team formed by
the General Administration of Customs, Ministry of Finance, State
Administration of Taxation (SAT) and State Administration of Foreign Exchange
(SAFE).

The Bonded Logistics Center is located in the North-western side of
Tianjin Economic Development Area. It has an overall planned area of 900,000
square meters, with the following four landmark boundaries: north boundary
delineated by 7th Avenue of the development area, west boundary delineated by
Bohai Road, east boundary delineated by Jingshan railway line and south
boundary delineated by 13th Avenue. The planned floor area for stage 1 is 220
000 square meters, located within the four landmark boundaries. During stage
1 the total planned construction floor area is 100,000 square meters.
Currently, an area 30,000 square meters has been used and built into
warehouse facilities.

The official operational start of Development Area's Bonded Logistic
Center will make the investment environment more conducive in the Tianjin
Economic Development Area and also increase its regional competitiveness.
Development can be carried out in areas such as the storage of import and
export cargo and other cargo awaiting customs clearance, simple processing
for stored cargo will provide value-added service, global purchasing and
international distribution and delivery, re-distribution and international
transit, and all other international logistics businesses that are approved
by Customs and Excise. The Center will enjoy special preferential policies
like port functionality and export tax rebates policies, which will
facilitate trade processing as it will increase the re-distribution of
processed cargo between enterprises. In addition, domestic goods entering the
Bonded Logistic Center will be subjects under the tax rebate zone so that
they will not be forced to spend an unnecessary day offshore, thereby
reducing the operating costs of enterprises. At the same time, the center
provides a platform for the workings of international distribution, delivery,
purchasing and international transit, and has an advantage in promoting
enterprises' new business development, reducing logistics costs and
increasing the efficiency of logistics.

Wang Qian, +86-22-2520-1567, or wangqian at teda.gov.cn