A STUDY ON UTILIZATION OF CHINA’S BONDED AREA FOR EXPANDING AGRIFOOD EXPORT OF KOREA

Abstract

China is showing trends of increase in international trade due to worldwide economic growth. Furthermore, the annual increases in trade value of its bonded area, Bonded logistics complex, etc. are greatly contributing to the development of China’s commerce as result of rising demands from foreign markets. Bonded area is favorable to trade environment and it is typically installed in a port relatively advanced in technology and economy. It differs from other areas due to government’s implementation of favoritism and special policies in that area. Such efficacy is economic like other foreign nations’ “Free Trade Zone”, “Export Processing Zone”, and others that all possess the four functionalities of international trade, modern logistics, entry processing, and commodity marketing.
The biggest advantage of bonded area is drastically simplified export-import customs clearance and favorable customs process, and includes other advantages including inspection of goods, tax investigations, foreign exchanges, financial management, etc. that are administered at once. These factors provide accelerated administration of customs procedure and effective business affairs, form ideal investment environment for internationalization of companies, and reduce distribution costs.
The Chinese government, following the successful management of bonded area and BLP, is now focusing on establishing the final directing point of the Free Trade Zone. On September 29th, 2013 the “Shanghai Free Trade demonstration borough” was officially launched to form the progressive economic system more efficient than the traditional system. Likewise, we should take advantage of such BLP to export agricultural processed goods, equipment and materials to solidify Korea’s agricultural position there. The trade that utilizes BLP is still mostly conducted by focusing large corporations’ products, and in practice, there have been little discussions of agriculture on the surface aside from the manufacturing industry. However, this venue should serve as appropriate consideration for the sixth industry of agricultural companies, small and medium-sized businesses to take part and form an export path to China’s market.