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Logistic Tycoons Move Into SIP Customs Duty-bond Logistic Center

On July 12, the Kintetse Logistics of Japan and the Chinese Tian Jun Logistics Company moved into SIP Customs Duty-bond Logistic Center (Type B). Following the implementation of “Provisional Method of Management of Customs Duty-bond Logistics Centers (Type B) by Customs of the People's Republic of China”, which took effect on July 1, logistics enterprises have been working their way into SIP Customs Duty-bond Logistic Center hot upon the heels of one another, and the customs-controlled goods increased by leaps and bounds. So far, involved in the logistic operation of the center are nearly 400 enterprises from SIP, Suzhou New and Hi-tech District, Wujiang, and other regions in the Yangtze delta such as Wuxi and Jiaxing, and 16 provinces and municipalities under central jurisdiction. The Phase 1 and 2 of the warehousing facilities built by these enterprises in Prologis Suzhou Logistic Center is being utilized at the rate of 95%.

KWE-Kintetsu WorldExpress of Japan, one of the Fortune 500 and the second largest specialized logistic company in Japan, has established subsidiaries and branches in 178 cities in over 60 countries, and its operation enjoys high prestige in the international logistic service. Tian Jun Logistics, a joint venture between Kunshan Xin Ning Public Duty-bond Warehousing Co. and Shanghai Mao Hong International Shipping Co., is now operating in east China and South China by two modes: the supplier’s warehousing management and centralized international logistic distribution center. Presently, the Kintetsu and Tian Jun will lease the 7,000 square meters’ logistic facilities newly built in the duty-bond logistic center, and with the advantage of preferential policies and superior geographical position, and their powerful logistic networks and experience in advanced service, they are ready to provide first-rate professional third-party logistic services.

In addition to those already in the center, companies like the Fiege Ltd. of Germany and EGL of UAS have also expressed their intent of cooperation, while there is apparent inclination for international capital to move in. Most of the foreign-owned logistic companies adopt the method of “try first, join second”. Among those at trial operation, the Bondex-Nishin Logistics Company already had its 50% shares controlled by the Japanese Nisinn Transportation Co., Ltd.

In the custom-controlled business, a total of import and export in the value of 76.71 million RMB were handled in the two months last year when the SIP Customs Duty-bond Logistic Center was in operation. This year, the business is being increased by large margins. Noticeable increases are seen in the value of goods handled, the volume of goods dispatched, and the customs bills declared. From January to June, the value of goods under customs control exceeded USD 1.76 billion, the volume of goods dispatched reached 60,000 tons, and customs declarations over 12,500 bills. This year, the value of import and export is estimated to go beyond USD 4 billion, and the varieties of goods to increase from dozens to several thousand, in which IT products will comprise 64% of the total value, a fact that testifies to the highly concentrated IT enterprises in SIP and the surrounding areas.

July 13, 2005


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