THE HIDDEN
CHAMPION BEHIND

THE HIGH-TECH
INDUSTRY

3.1 WAREHOUSE TYPES
8 BONDED
WAREHOUSE TYPES

TSSTechnical Service
Station

EPZExport Process
Zone

FTZFree Trade
Zone

CBZComprehensive
Bonded Zone

BLPBonded Logistic
Park

CSWCustoms Supervised
Warehouse

BLCBonded
Logistic
Center

NBWNon Bonded
Warehouse

01
TSS
CONSIGNMENT MAINTENANCE BONDED WAREHOUSE
• Global and National Network of Allocation Support
• 365*24-hour Distribution Services
• Pre-classification Services
• Delivery first, Declaration Later
• Temporary Borrowing and Return
• Duty and VAT Exemption Replacement During
02
CBZ
COMPREHENSIVE BONDED ZONE
• Global and National Network of Allocation Support
• 365*24-hour Distribution Services
• Pre-classification Services
• Delivery first, Declaration Later
• Entrepot Trade, Deep-Processing Transit
• Duty and VAT Exemption Replacement During
03
FTZ
FREE TRADE ZONE
• Transit Feeder
• Integration of Trade and Industry
• Export Process
• Bonded Warehouse
• Commercial Retail
04
BLP
BONDED LOGISTICS PARK
• Deemed As Exporting
• Tax Refund upon Entering the Park
• International Transit
• International Trade
3.2 WAREHOUSE MAIN FEATURES
REPRESENTATIVE
WAREHOUSE TYPES
& MAIN FEATURES
01

CONSIGNMENT REPAIR BONDED WAREHOUSE /TSS

Consignment Repair Bonded Warehouse (TSS) is a bonded warehouse approved by the Customs to store consignment parts imported for the repair of foreign products. VR Representative Branch: Shanghai VR.
Main features of TSS: • It can be used for quick customs clearance into the warehouse at any port within the customs territory;
• Suspension of import duties and import taxes for goods inbound from abroad in accordance with the law;
• The goods imported from abroad are not subject to import and export license management, except for those stipulated by laws and regulations (such as import license for dual-use items).
• The customs does not have physical fence supervision, and can be delivered 365 days * 24 hours
• The goods can be released in batches and declared centrally
• The parts and components that are repaired free of charge during the warranty period and comply with the relevant provisions for compensation of goods at no cost are exempt from import duties and import taxes
02

COMPREHENSIVE BONDED ZONE BONDED WAREHOUSE /CBZ

Comprehensive Bonded Zone is a special open zone with the most preferential policies, the most complete functions and the most simplified procedures after integrating the original free trade zone, bonded logistics park, export processing zone and other kinds of outward-oriented functional zone. VR Representative Branch: Xi'an VR, Wuxi VR
Main features of CBZ: • t can be used for quick customs clearance into the warehouse at any port within the customs territory;
• Bonded goods entering the zone from abroad;
• The goods imported from abroad are not subject to import and export license management, except for those stipulated by laws and regulations (such as import license for dual-use items).
• Domestic goods entering the zone are regarded as exports, and are subject to tax rebates;
• Except for the goods that are prohibited from import and export by the state, the goods stored in the warehouse do not need to be approved by the customs.
• Distribution between enterprises in the zone can be made in batches and declared centrally;
• Goods can flow freely within the zone and transactions are exempt from import duties and import taxes;
• With the approval of the customs, the bonded maintenance business can be carried out.
03

BONDED LOGISTICS CENTER TYPE B BONDED WAREHOUSE /BLC /BLC

Bonded Logistics Center Type B is a centralized customs supervised location approved by customs to carry out bonded warehousing and logistics business. VR Representative Branch: Xiamen VR.
Main features of BLC: • It can be used for quick customs clearance into the warehouse at any port within the customs territory;
• Bonded goods entering the zone from abroad;
• The goods imported from abroad are not subject to import and export license management, except for those stipulated by laws and regulations (such as import license for dual-use items).
• Domestic goods entering the zone are regarded as exports, and are subject to tax rebates;
• 365 days * 24 hours for out-of-area distribution;
• Delivering goods in batches and making centralized customs declaration; maintenance of spare parts during the warranty period is exempt from tax according to law.
3.3 SERVICES AND ADVANTAGES
9 PROFESSIONAL

PROCESS CONTROL MANAGEMENT

01

CONSIGNMENT REPAIR SPARE PARTS MANAGEMENT SERVICE

After the spare parts of equipment are imported, they are stored in the bonded warehouse of VR. When the high-tech production equipment has the need to replace spare parts, 24 hours a day, 365 days a year, the warehouse will be delivered first in the form of delivering goods in batches and making centralized customs declaration to reduce the waiting cost of the production line, and then reporting to the customs according to the use of spare parts.
02

VENDOR MANAGED INVENTORY MANAGEMENT SERVICE

VR can achieve the production requirements of the end user, accept the delivery instructions and complete the distribution to the production line within the specified time limit. the project realizes the sharing and timely delivery of cargo information among suppliers, VR and IC enterprises, with a time limitation requirement of 2 hours from the production line putting forward the supply demand.
03

CUSTOMS DECLARATION SERVICE

General goods import and export customs declaration, free review of relevant import and export declaration documents before operation, and free consultation services for trade supervision certificates.
04

INTERNATIONAL & DOMESTIC FREIGHT FORWARDER

Providing shipping and air freight forwarders covering major global routes; Abundant overseas agency resources, providing worry-free overseas door-to-door service; ensure the safety of domestic transportation of all types of goods.
05

TRADE AGENTS

VR can provide the whole process of import and export trade agency services, handling export tax refunds, paying import duties and import taxes, receiving and paying foreign exchange on behalf of the client.
06

CUSTOMER-SPECIFIC CUSTOMIZED SERVICES

Designate an exclusive account manager to provide one-to-one full tracking services, including but not limited to product information collection, pre-classification consultation, import and export documents review, tracking and timely feedback on the progress of import and export customs clearance, etc.
07

PROFESSIONAL INTERPRETATION AND CONSULTING SERVICES

a policy study team composed of senior customs officers has been set up. Through continuous in-depth study of the characteristics of industries such as integrated circuits, new-type displays and aviation equipment and the support and preferential policies of relevant national ministries and commissions.
08

PRE-CLASSIFICATION SERVICE

The specially established classification team relies on the systematic product information classification platform, to provide customers with pre-classification services for various products in strict accordance with the classification derivation procedures for each type of product
09

COMPLETE LOGISTICS SUPPORT SERVICE

Clean and orderly constant temperature and humidity dust-free warehouse; All kinds of heavy and light shelves are available to meet customers’ needs for saving storage costs. to meet the transportation safety requirements of various high-tech enterprises.
3.4 CLASSIC CASE STUDY
PROFESSIONAL AND
DEVELOPMENTAL

PERSPECTIVE

FTZ
Consignment Repair
01
DEMANDS

A Swiss manufacturer of semiconductor production equipment engaged in providing domestic semiconductor manufacturers with semiconductor equipment installation, commissioning, maintenance and related technical services. Some of the spare parts imported by the company involve the need for compulsory product certification (3C certification), and the customs must verify the 3C certificate before entry. The company was once troubled by the limitation of the preparation of 3C application materials and the time period for processing.

SOLUTION

Our company give full play to the policy advantages of our consignment maintenance warehouse, combined with the relevant policies of CNCA for exemption from compulsory product certification, to provide solutions for overseas customers, which not only meets the requirements of customers for high timeliness of customs clearance, but also meets the customs supervision requirements for the supervision conditions of inbound products.

  • TECHNICAL POINTS:
  • 1.In view of the production characteristics of the semiconductor industry which requires high timeliness, our company assist foreign investors to set up a TSS (Technical Service Station) warehouse for consignment maintenance to store spare parts of imported equipment. These spare parts are imported from overseas by air and stored in our bonded warehouse in the form of bonded consignment maintenance, which can suspend the processing of the customs supervision certificates and exempt the submission of 3C certificate verification when the products enter the country in the first line.
  • 2.When the equipment of the company’s domestic customers needs spare parts repair and replacement, the spare parts can be sent out of the warehouse and delivered to the domestic end users first in the from of delivering goods in batches and making centralized customs declaration.
  • 3.According to the CNCA announcement on the release of the catalogue of compulsory product certification description and definition, the 3C certificate will be exempted. At the same time, relying on the policy advantages of the consignment maintenance warehouse, the consignment maintenance bonded warehouse can be regarded as the applicant to solve the problem of the applicant’s qualifications for overseas customers.
  • 4.Our company logs into the CNCA CCC exemption electronic approval system, submits electronic documents, and obtains the “3C exemption certificate” document to declare goods as second-line imports and clear customs and write off smoothly.
BLP
Leasing Trade
02
DEMANDS

A foreign-invested enterprise in Wuxi, located in Wuxi High-tech Development Zone. The company is an independent branch in the United States, and its main products are: sensor modules, vehicle and aircraft navigation systems, instrumentation, etc. In June 2017, the company placed a verification order with an American supplier for the verification of the company’s original equipment. The original supplier’s name is: Acutronic, which is a low-speed turntable (hereinafter referred to as: turntable). According to the National Metrology Technical Specification No. JJF1210-2008, the spec for the turntable Accuracy arc sec is ± 30, only only the equipment provided by the original supplier can verify the company’s turntable and adjust the off-axis of the turntable. The main verification criteria are ten items such as levelness and orthogonality.

SOLUTION
  • TECHNICAL POINTS:
  • 1.The verification equipment is an old equipment. Before shipment, the old mechanical and electrical products must be pre-verified and self-inspected to confirm whether the goods are subject to pre-inspection, otherwise it will face the situation of not being able to clear customs normally after arriving at the port. If it needs inspection, there is a need to find a qualified third party in China for inspection and issue a certificate.
  • 2.Trade mode: The lease time is less than 1 year. After the company’s goods arrived at the port, they successively applied to Shanghai Pudong Airport Customs for import by trade modes such as “temporary entry and exit” and “repair items”, all of which were rejected. The reason was that the temporary entry and exit mode for testing was for the import of large equipment for initial verification, which was not in the scope of this time. After communicating with the Customs Clearance Section of Wuxi Comprehensive Bonded Zone, it is recommended to use the leasing trade for import. The specific supervision method is: leasing less than 1 year (1500). And the lease time must be within 1 year, that is, re-export within 1 year.
  • 3.Calculation of tariff and VAT. As the product is leased goods, the total value of the goods cannot be taxed directly, and the leasing cost needs to be taxed. If the product name is single, it can be calculated directly; if the product name is not single, the operation method is: the total leasing cost is apportioned to each goods in proportion to the value of the goods, and then the tax is levied according to the tax rate.
  • 4.The main points of the commodity inspection documents during customs declaration: Due to the particularity of old mechanical and electrical products, pre-inspection before shipment is very important. In the subsequent customs declaration process, what documents need to be attached to the commodity inspection documents? Specifically: pre-inspection screenshot or pre-inspection certificate before shipment, product import declaration, and other necessary documents.
FTZ
Integrated Declaration
03
DEMANDS

A semiconductor company in Xi’an, mainly producing high-grade memory chips. Located in the bonded zone, the import and export of production equipment and materials, etc. need to be declared to the customs.

SOLUTION

The goods and materials of the customer’s suppliers are stored in our bonded warehouse after customs declaration, and delivery can be arranged when the customer has demand.

  • TECHNICAL POINTS:
  • 1.After the imported goods arrive at the port, we adopt integrated declaration to our warehouse, which saves the cost of customs clearance for customers and also addresses customers’ difficulty of goods storage.
  • 2.After the goods are declared and released, they are stored in our bonded warehouse, and when the customer has demand, we will arrange delivery to the customer in the way of delivering goods in batches and making centralized customs declaration (delivery first and customs declaration later). 7*24 hours service, MD orders are controlled to be delivered within 2 hours, which greatly saves the customs clearance time.
FTZ
Customized Service
04
DEMANDS

An integrated circuit manufacturing company in Xiamen, engaged in the manufacture of cutting-edge integrated circuit chips. The company’s production equipment and raw materials are of high value and almost all of them are imported. At the same time, a large number of spare parts are needed for replacement in the daily production process due to equipment maintenance, which requires tens of millions of dollars worth of spare parts consumption every year.

SOLUTION

We assist the company to make full use of the national encouragement policy, combined with tariff planning expertise, to maximize tariff reduction and exemption of the import goods, and reduce import costs.

  • TECHNICAL POINTS:
  • 1.Assist enterprises to obtain project approval documents or qualification certification documents from relevant approval departments. The company has the qualification of “enjoying the import tax policy for integrated circuit manufacturers” jointly announced by the National Development and Reform Commission, the General Administration of Customs and other four ministries and commissions, and it is determined that it meets the conditions of enjoying the preferential policy of tax reduction for imported goods, and we assist the enterprise in applying for the “Confirmation Letter of Projects Encouraged by the State for Development”.
  • 2.Our company assists the enterprise to apply to the Customs for the project filing of of encouraged projects, assist the enterprise to organize and fill in the relevant filing documents required by the Customs, and provide the supporting materials for the qualification of enjoying import and export taxation preferential policies as stipulated by relevant policies, and the Customs will review the filing materials and confirm the qualification of the enterprise for tax reduction and exemption.
  • 3.Our company assists the enterprise in applying for taxation and exemption for imported goods, determines with the enterprise the import port, country of origin, transaction terms and other declaration elements of the goods to be imported, provides the customs with the product information of the relevant goods, submits the required declaration materials to the Customs, and sends electronic data.
  • 4.After the three-level approval, the Customs will issue “Tax Exemption Certification of Tax Reductions and Exemptions Goods”, and the goods will be declared for import and cleared smoothly.
FTZ
Cross-regional Flow Of Semiconductor Spare Parts
05
DEMANDS

The major semiconductor suppliers set up safety stocks to meet the needs of semiconductor manufacturers in different regions, which can result in great capital pressure on goods, high logistics costs, and have to maintain high inventories and occupy a large amount of funds to ensure the normal operation of the end-user production line.

SOLUTION

With the expansion of the semiconductor market in China, the semiconductor manufacturers have very high requirements for the timeliness of goods, which requires that delivery on time according to the order demand to ensure the normal operation of the production line. The major semiconductor suppliers set up safety stocks to meet the needs of semiconductor manufacturers in different regions, which can result in great capital pressure on goods, high logistics costs, and have to maintain high inventories and occupy a large amount of funds to ensure the normal operation of the end-user production line. In 2018, the Customs unified the supervision system of each special supervisory area across the country (Golden Customs II), and each special supervisory area in the country can realize the free circulation of goods without system restrictions. According to the advantages of this system and the customer’s inventory management needs, our company proposes to transfer the goods of each bonded warehouse nationwide to improve the circulation rate of goods, timely meet the demand for goods in different regions of the country and reduce the financial pressure on goods. The outstanding advantages of this solution: semiconductor suppliers can transfer goods in the shortest possible time, to avoid the long time limit for direct procurement from overseas, and the situation that the time for arrival cannot be guaranteed when encountering urgent demand for goods. If the supplier has safety stock in other areas of the country, they can start to transfer goods, which greatly increases the flow of goods, improves the rate of goods circulation, accurately realizes door-to-door service and rapidly links to the semiconductor supply chain.

There is no need to transfer goods from overseas warehouses, and no need to keep too much inventory. It can be transferred from the national warehouses, which improves the circulation rate of goods. It greatly saves time cost and solves the problem of timely response of inventory.

FTZ
Domestic Procurement Trade Agent
06
DEMANDS

Enterprise A is a large-scale processing trade enterprise in the comprehensive bonded zone, with its production equipment and raw materials mainly imported from abroad. With the rapid development of the enterprise, some auxiliary equipment for production and raw materials are also purchased from China. After several years of development, there are more than 100 domestic production and trade suppliers, accounting for more than 50% of the enterprise’s purchase in the currency of RMB, which brings great challenges to the enterprise’s procurement management and logistics management.

SOLUTION

In order to meet the customer’s needs of reducing procurement costs and improving management efficiency, we designed a domestic procurement trade agency program for processing trade enterprises, where Enterprise A obtains the initial quotation from domestic suppliers and sends it to the procurement trade agent, who then pre-classifies the goods according to the detailed cargo information in the quotation. The purchasing trade agent should add customs declaration fees, transportation fees, and tax refund agency service fees according to the initial quotation of Enterprise A’s suppliers, and then deduct the tax refund amount to offer the final quotation to Enterprise A. The final quotation of the trade agent = the initial quotation of the domestic supplier of customer A + logistics fee, service fee for tax refund business - sales discount.

By designing logistics solutions for customers as domestic procurement and trading agents, it not only help customers reduce procurement costs, but also reduce the number of docked suppliers and greatly improve the management efficiency of enterprises.

FTZ
Foreign Exchange Receipt & Payment for Tripartite Trade
07
DEMANDS

Company C is a multinational company registered in the United States, responsible for global procurement and sales business. It plans to purchase a batch of materials from China’s supplier Company A, and then sell to China’s customer Company B. According to the business flow, the goods must first be sent from Company A to Company C in the United States, and then sent to China’s customer Company B, which is a long cycle and has high logistics costs.

SOLUTION

VR solves this problem through the bonded warehousing model, which not only helps customers reduce logistics costs, but also shortens the delivery cycle.

FTZ
Import & Export of ATA Carnet (an Auxiliary Equipment for Competitions)
08
DEMANDS

After the equipment completed the last round of competition events in countries such as India and Singapore, it will be transported by sea and air to China to participate in the new round of competitions.

SOLUTION

When the RHL Team receives the entrustment of the customer, it first confirms whether the ATA Carnet meets the requirements of China Customs. After the goods arrive at the port, in addition to the normal customs clearance procedures, we also remind customers that the Chinese customs generally give the goods under the import carnet a 6-month re-export period. If the goods are re-exported without customs permission, the Chinese customs will levy full import duties. China Customs allows the re-export of goods under the import carnet in batches, but does not accept batch imports.

After the competition, we will arrange equipment to travel to the next event host country. If the carnet is lost or damaged, we will contact the visa agency of the country that issued the carnet in time to apply for a supplementary carnet. When declaring temporary export to the customs at the importing place with the ATA carnet, the customs will add the export declaration number on the ATA book and stamp the export release seal. Finally, after the goods are shipped normally, the ATA Carnet will be returned to the customer.

FTZ
Import & Export of Spare Parts in Bonded Logistics Park
09
DEMANDS

Domestic export of spare parts to BLP, BLP transit to TSS, U-TURN

SOLUTION

When RHL receives the customer's entrustment, it needs to confirm the corresponding pick-up factory with the supplier in advance, and then arrange the delivery vehicle to pick up the goods at the specified time, and open the box to check the SN number of the goods when they are put into storage. We provide timely feedback to customers at every point of the operation.

  • TECHNICAL POINTS:
  • 1.The specific business process of BLP for domestic export of spare parts is as follows:
    • Receive customer instructions and complete the filing of product name information in the bonded logistics park.
    • Arrange the truck to pick up the goods at the factory, check the shipping mark and check whether the outer packaging is in good condition.
    • After the customs declaration is completed, the warehouse manager will receive the goods in the warehouse, count the goods and check the serial number of the goods.
  • 2.The specific business process of BLP transit to TSS is as follows:
    • After receiving customer instructions, the TSS warehouse team completes the record of filing product name information.
    • Arrange the vehicle to pick up the goods at BLP, check the shipping mark and check whether the outer packaging is in good condition.
    • After the customs declaration is completed, arrange the goods to be put into the warehouse, the warehouse manager will receive the goods, count the goods and check the serial number of the goods.
  • 3.The specific business process of U-TURN (PVG-HKG-PVG) is as follows:
    • After the goods enter BLP, send out customs declaration data and arrange outbound customs declaration.
    • Arrange the goods out of the warehouse after the customs declaration is completed.
    • Track the export flight information and arrange the fastest return flight.


When RHL BLP warehouse operates this kind of business, it first tallies the goods according to the customer's requirements, and then checks whether the outer box marks are consistent with the packing list. For the short overflow of the goods, it is required to take photos and videos, arrange the storage location reasonably, and send out inbound report to customers promptly. When out of the warehouse, based on the written outbound instructions, sort the goods, load the vehicle reasonably, ensure transportation safety, seal the door of the vehicle, and finally provide the vehicle packing list and the receipt form (for acceptance by the consignee).