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China's First Export Processing Zone Opens
Fenced in 1.86 sq. km of area, the Kunshan Export Processing Zone in east China's Jiangsu Province has passed a state-level appraisal to become the first operational foreign trade processing zone in the country.
The State Council, China's highest government body, approved 15 export processing zones including Kunshan in April.
Imported cargo through the zones can be exempt from tariffs and other complicated local duties before being exported.
The establishment of the zone marks a gradual shift in processing trade, which has witnessed dramatic increase in the recent years.
Construction of the operational area in Kunshan cost 100 million yuan (US$12 million), which will be expanded to 2. 86 km. The zone is equipped with electronic monitoring and surveillance systems.
Companies in the zone are mainly engaged in producing electronic appliances and components. These companies have invested some US$400 million in the zone.
Processing trade has squeezed half the share of China's export. However, it has provided opportunities for smugglers by using fake customs documents and dealing in counterfeit cargo. The fenced area will greatly help curb smuggling activities.
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