Functional advantage--- Tianjin Free Trade Zone has several policy functions such as development zone, free trade zone, compound free trade zone, and so on. Port Free Trade Zone is equipped with the logistics park of free trade covering an area of 1.5 square kilometers. It also has four policy functions, including international trade, international logistics, port processing and exhibition. Upon the approval from Tianjin municipal government and North China Administration of civil aviation of China in October, 2ooo, this zone has constructed a International Airport Logistics Zone about 1 square kilometer in cargo transport area in Binhai International Airport which focuses on developing aviation logistics, promoting the establishment of North Aviation Logistics Center, strengthening the linkage between the land and the air. Tianjin municipal government agrees to build up the Airport Logistics Processing Zone which pays more attention to developing the modern service industry, research and development of science and technology transformation, and advanced manufacture industry. Party committee of Tianjin Free Trade Zone takes the responsibility of developing, constructing and managing on October, 2002. Port Free Trade Zone was replaced into airport processing area and the first Airport Free Trade Zone in China was set up by Tianjin Free Trade Zone in order to bring free trade function into full play in October, 2005. The state council of China transformed the area of 2 square kilometers in Airbus factory into compound one for satisfying the needs of Airbus and the operation of the supporting project. Since now, Tianjin tariff-free zone has become the most obvious and comprehensive economical zone in China and can help provide the most appropriate alternatives for various investors , a zone which takes the largest number of open form, and has the most outstanding characteristics of policy function advantages.
Policy advantage-----Tianjin Free Trade Zone, as the special economical zone opening to the outside world of China, can enjoy the preferential policies China has established; these policies are particularly on customs, tax, foreign exchange: 1) The stored goods from abroad to the free trade zone are exempted from tariffs, value added tax and consumption tax in export, and not rationed out. The storage time is out of limitation, and the goods can be transported freely out and in between the Free Trade Zone and the outside borders. 2) The machinery and equipment, materials for infrastructure construction, office supplies and the raw materials, spare and accessories which are used for processing goods for export by the enterprises in the free trade zone are exempted from value added tax, consumption tax, not rationed out or under license management. 3) Enterprises with domestic or international investment in the Free Trade Zone can open foreign exchange remittance account; as for foreign currency the enterprise received could be settled according to their wishes; the trade between the free trade zone and the outside border is not required to go through formalities such as writing off for collection, payment and remittance 4) if the enterprise processes goods for export in the free trade zone, a machine account may not be set up for performance security, nor provided with processing manual; sales of products in the free trade zone are exempted from value added tax for production; when products processed with partial oversea materials are sold at home, only tariffs and value added tax for oversea materials are to be paid.
Service advantage------Tianjin Free Trade Zone, as the agency of Tianjin Municipal People's Government for cross-national trade, is given the privilege by the approval authority for projects at provincial level. The administrations such as Tianjin customs, entry-exit inspection and quarantine, administration of foreign exchange, state taxation bureau, local taxation bureau, public security bureau, supervisory body, court, fire-control department, and so on have set up their branches in the zone. The free trade zone always sticks to the concept of “supreme enterprise” and offers the first-class environment for services according to the international practice. This zone carries out the full duty agency service and the racking service for the newly-resisted project. The introduction of the project is “the first station to accept, the full-set agency service”. Project construction exercises the model of “one leads while all advance collaboratively”, The systems like visits to enterprises, district updates report and complaints as well as the quick response mechanism for later-service in the enterprise were all established, with the simple process of review and approval, open work procedures, and clear responsibilities and deadlines requirements. It first passed ISO9001 quality system certification and set up the Joint Service Center and Urban International Business Service Center. Business license will be issued within 3 days in the process of business registration, and planning and construction will be reviewed and approved within 7 days. General affairs will be handled within the very day.