Nippon Express to launch operations in Shanghai's Waigaoqiao Bonded Logistics Park in January 2005

In April of this year Nippon Express made the decision to expand into the Waigaoqiao Bonded Logistics Park (WBLP) in Shanghai, China, and authorization was recently granted by the competent authorities to Nippon Express Global Logistics (Shanghai) Co., Ltd. (Koichi Tomita, President), whose head office will be located in the Shanghai WBLP. A "Bonded Logistics Park Branch" will be established as soon as the Phase II Zone of this Logistics Park opens, and the Branch's initial staff of 12 will have access to a 5,711m2 warehouse.

As China's first experimental logistics area, the Shanghai WBLP simplifies custom clearance by operating differently from traditional bonded and export processing zones; products and parts/materials are regarded as exports as soon as they are conveyed into the Park, so consumption tax refunds can be processed as the goods are brought in. Given that parts/materials imported from overseas are presently subject to consumption tax when they are transferred within China from a primary to a secondary processing factory, companies have resorted to methods such as exporting to Hong Kong and then reimporting parts/materials that have completed primary processing. With its expansion into and use of the Shanghai WBLP, Nippon Express will be able to complete consumption tax refund procedures right away and, by eliminating export/import via Hong Kong for tax purposes, manufacturers who export products processed from imported materials as well as other customers will enjoy greater convenience across the board - lower costs, simplified procedures, and reduced lead time.

Utilizing this Logistics Park will allow Nippon Express to provide services that meet the individual needs of customers and to offer strong logistical support in China.