Nippon Express decides on expansion into Shanghai WBLP (China)

Nippon Express has decided to expand its operations into the Shanghai Waigaoqiao Bonded Logistics Park and, accordingly, the company concluded an April 15 agreement on this expansion with Nippon Express (H.K.) Co., Ltd. (Tsuyoshi Hayakawa, President), one of Nippon Express' local subsidiaries in China, and Shanghai Waigaoqiao Logistics Center Co., Ltd., which runs the Park. Nippon Express uses a warehouse (with approximately 5,700m2 of floor space) in this Park to provide services that meet the needs of its customers.

The Shanghai Waigaoqiao Bonded Logistics Park was established by the central government in December 2003 as China's first experimental logistics zone, among whose features is that domestic transport within China is regarded as export from China as long as the cargo passes through the Logistics Park. This is expected to make application procedures for refunds of value-added tax on logistics in China more convenient for customers such as manufacturers engaged in processing trade. In addition to having conventional bonded area functions, this Logistics Park can also handle transit cargo because processing is not required as in an export processing zone.

The Park is located adjacent, and connected by gates, to the Shanghai Waigaoqiao Port Phase 2 and Phase 3 container berths, and the gates are expected to be fitted with the first automatic devices in China for reading container numbers. An "express customs clearance system" has been adopted, and procedures - including declarations and inspections of cargo being moved in and out of the Park - have been simplified. Centralization of port and Park management and integration of customs clearance management and the Park's warehouse system are being pursued, and EDI customs clearance through information sharing will be instituted.

Taking advantage of the special features of the Logistics Park, Nippon Express will provide its customers with services heretofore unavailable. The Company will continue developing its total logistics capabilities in China to offer its customers even stronger support in future.