Source: China AGLOOK! 

1. Increase the speed of customs clearance, decreasing extra charges (realizing the seamless connection to the terminal and sharing the same customs supervision code 4258)

2. Reduce the trade friction, facilitating the trade practice(it is the designated delivery warehouse of DECX platform, and all trades are under the unified supervision of the platform)   

3. Reduce the capital occupancy, cutting the trade costs(exemption customs duties, added-value tax and consumption tax)

4. Transits and trades are available at any time, very convenient and efficient(warehouse receipt can be sold to the domestic enterprises, foreign enterprises and the enterprises in bonded area)

5. Lighten the burden on processing enterprises, increasing their competitive advantages(the warehouse can equip processing facilities such as sieving machine)

6. USD and RMB are all available during the transaction, the fund settlement is very flexible (the selling price can be RMB or USD)

7. Adjust the customs clearance price at any time, maximizing the trading profits(postpone the customs clearance when the market goes down and go through the customs clearance at a low price when the market goes up)

8. Reduce the pressure of currency depreciation by storing goods to keep value (banks in Japan and South Korea are implementing negative interest rate and the storage fees in japan are high, so the Japanese and South Korean currency can be used to buy goods to store in Qingdao bonded area for maintaining its value)

9. Register a company in the bonded area, avoiding duties reasonably(the financial supervision is more strict and the deposit card of individuals will be investigated, so it is better to register a company in the bonded area instead of using the deposit card in trading. During the trading process, enterprises in the bonded warehouse can use the proforma invoice（P/I）to make the account, which like the foreign enterprises can make out an value added tax invoice. Therefore, enterprises in the bonded warehouse will be exempted from miscellaneous taxes such as 25% of corporate income tax, urban construction tax, etc., and only 0.05% of stamp tax will be charged.

10. For tradings within the bonded area, the enterprises can enjoy the state subsidies(0.01 RMB of subsidies for 1 USD)

11. Decreased value-added tax, the advantages of bonded warehouse is remarkable (from July 1st, the value-added tax of agricultural products will be reduced to 11% from 13%, which will narrow the price gap with the border trade. Goods not in a rush to go through the customs clearance can wait until July 1st, which will save 2% of the value-added tax.