Nippon Express Officially Begins Operations in Shanghai's Waigaoqiao Bonded Logistics Zone

Last September, Nippon Express Global Logistics (Shanghai) Co., Ltd. (Koichi Tomita, President), established a Bonded Logistics Zone Branch with the aim of expanding its business operations within the Waigaoqiao Bonded Logistics Zone (WBLZ) in Shanghai, China; this Branch began provisional operations from December using public warehousing facilities. With the recent completion of its own 5,711m2 warehouse outfitted with a suitable communications environment, the Branch officially opened for business on February 28.

As China's first experimental logistics area, the Shanghai WBLP simplifies custom clearance by operating differently from traditional bonded and export processing zones. Unlike general bonded zones, where refunds for value-added tax(*1) applicable to all stages prior to the export of products and parts/materials out of the country cannot be processed, value-added tax refunds can be processed in the WBLP because goods are regarded as exports as soon as they are conveyed into the Park. Moreover, the linkage of zone and port functions within the Park makes it possible to unseal containers in the port area, allowing logistics companies to expand their operations to partial shipments and transshipments.

The Bonded Logistics Zone Branch will in future offer customers a variety of business models utilizing its multi-functional warehouse, including export VMI(*2) warehouse operations that incorporate buyers' consolidation(*3).

Nippon Express will continue to provide service tailored to meet the needs of individual customers and to robustly support logistics operations in China.