Case1: WaiGaoQiao Bonded Logistics Park (WBLP), Shanghai

Infrastructure (Hardware Environment)

As China becomes the manufacturing base for the world, numerous foreign companies are investing in the supply chain transportation for bonded materials and semi manufactured goods to meet business and export processing needs. Since, business are distributed all over the country, logistics must work across cities and provinces, zones as well as trade categories.

Laws and regulations (Software Environment)

Compliance include customs ( bonded import/ export), tariff (refund), foreign exchange (receiving/ remittance), inspection ( product inspections) requirements. Processing companies exports goods (to destinations such as Hong Kong) while the downstream operators take over and ship the goods to processing facilities.

Customer demand

Reduce logistics cycle and improve efficiency

Dimerco Response	Supporting Model	Advantages
Bonded Logistics	Ship to bonded parks or bonded logistics centers ( regarded as exports) and import as require	Reduce transit time ( via Hong Kong ) By sea: 10 days, reduce to:2 days By air: 3 days, reduce to:2 days By trucking: 4 days, reduce to:2 days Reduce logistics cost across the board
Financial Flow	VAT refund	VAT refund applies to shipments entering bonded logistics parks since they are considered exports

WBLP Four Advantages