Wofe procedure

• Advantage and function
• Documents Required
• Setup requirements
• Setup procedure and cost

Advantage and function When first established, the WGQ was positioned as a special zone for investors to carry out international trade and entrepot trade. Therefore, the majority of companies in WGQ nowadays are trading companies.

A free trade zone in China is often referred to as an area which is ¨within the Chinese territory but outside the Chinese customs〃 because goods flowing between a free trade zone and overseas countries are ¨bonded〃, i.e. free from customs duties. That is why free trade zones in China are also known as ¨bonded zones〃.

Companies in WGQ are able to import goods from overseas to Chinese domestic market and export goods from Chinese domestic market to foreign countries through a import and export company (also known as ¨state trading company〃) or a general bonded commodity exchange market (¨E/M〃) in WGQ.

WGQ companies can also engage in domestic trade; i.e. buying goods of PRC origin and selling them back to the PRC domestic market. No import and export company is required and no customs procedures are involved for this type of trade. However, VAT invoices should be issued through an E/M. According to the WGQ customs, the sale of goods to a WGQ company for ultimate sales to other PRC buyers will not be deemed export and the PRC company will not be entitled to export tax refund. It implies that foreign investment enterprises cannot treat the sale of goods to WGQ as a means of fulfilling their export commitment if such goods will eventually be sold within China.

　　　　　　　　　　　　　　　　　　　>>　1　2　3　<<