Answers to Frequently Asked Questions
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What's the difference between your Qingdao reefer facility and typical reefer facilities in China? |
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The maximum capability of Chinese reefer warehouses is -18 degrees C and most of them do not maintain stable temperature. Shandong i-LOGISTICS Qingdao facility is fitted with the latest equipment and experienced Japanese staff, enabling us to offer stable frozen/refrigerated temperature control from a maximum of -30 degrees up to +5 degrees. Moreover, our facility's 21,000-ton capacity makes China's largest reefer warehouse, and our 5,000-square-meter platform is large enough to handle food products while adhering to the highest sanitation standards. |
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In our company's case, we would like not only to export finished goods from China but also would like to sell our product domestically in China as well. How can you help? |
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As a member of the ITOCHU Group, we can leverage the capabilities of the Group's network of 8 operating companies and about 90 locations. We can also design an information technology system to meet your specific needs. Indeed, we can serve as one-stop shopping for a range of services that extends well beyond international logistics. |
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What is the difference between "Free Trade Zone" and "Bonded Logistics Park"? |
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There are a number of differences in terms of facilities and regulations, but the easiest difference to understand, and the most important, is with regard to Value-Added Tax (VAT) refunds. In the past, even when goods were transported into the Free Trade Zone (exported), they were not viewed as having been exported until all of the freight in the shipment could be confirmed to have been loaded onboard a vessel. Only then, could one apply for value added tax refund.
This made it very difficult to apply for value added tax refunds in the following cases (among others): the buyer was a company located in the Free Trade Zone ; due to assorting of shipments the entire quantity could not be confirmed to have been loaded onboard a vessel; or because part of the shipment was then re-imported to China. On the other hand, when freight is transported into the bonded logistics park it is viewed as having been fully exported, making application for value added tax refund possible at that point. |
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Is there a 100% Japanese-owned forwarder in China? |
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In China, there are three categories of industries regarding foreign participation. The first category is totally open to foreign company participation. This applies to technology-intensive manufacturing companies, for example, and the regulatory philosophy is essentially "please come enter the Chinese economy." The second category involves more regulations, but it is open to foreign participation. The forwarder business falls into this category. The third category is completely off limits to foreign participation. The agricultural sector is an example of this type of industry.
Regarding the freight forwarding sector, the category has become increasingly liberalized since Chinas admission to the WTO in 2001, but there are still some applicable regulations (category is scheduled to be completely deregulated as of December 2005). ITOCHU LOGISTICS CORP. established i-LOGISTICS (Guangzhou) Ltd. as the first 100% Japanese-owned freight forwarder in October 2004 in Guangzhou, and we are moving toward establishing full subsidiaries in other major cities. |
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How can you help us shorten our finished goods lead times? |
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We keep in close contact with the manufacturing plant in order to ensure that we can select the vessel with the best timing to meet the manufacturing schedule. Moreover, we make timely changes of mode from normal containers to ferry or from ship to air depending on the situation in order to meet your delivery deadlines. |
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Domestic manufacturers information on shipment loading and arrival is often inaccurate. How can you improve on this? |
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After clearing the shipment through customs, we maintain close contact with the vessel and the freight owner to ensure up-to-date, accurate information on arrival. |
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We plan to enter China. How can you help? |
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We can leverage our years of experience and the local knowledge of our network of regional offices to help you with all of paperwork involved in establishing an office or factory. |
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We are considering bonded warehousing. How can you help? |
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Our Wai Gao Qiao bonded warehouse in Free Trade Zone has clean room and material handling facilities and can manage even small lots for just-in-time delivery. |
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We need to export equipment into China to build a factory. How can you help? |
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We have long experience in the shipping of large-size, high-volume equipment and small equipment from Japan and other countries to China. For receiving and installation in the factory, we choose the appropriate vendors for each job. In particular, we can help smooth the way for duty declarations and other paperwork required for the typically problematic import of used equipment. |
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