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The Establishment of Bonded Warehouse – Ausmate’s Collaboration with Hexpress

The Establishment of Bonded Warehouse - Ausmate’s Collaboration with Hexpress

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Hexpress

Hexpress is a nationwide logistics company in China, and they aim at being innovative and maximize their customer satisfaction. In this collaboration project, Hexpress will be providing a comprehensive service package to Ausmate; including customs clearance, an over 20,000smq bonded and non-bonded warehousing, domestic and international logistics, drop shipping and other miscellaneous errands. The whole package is a one-stop supply chain service which allows Ausmate to get your products to the Chinese market in a cost-effective, and efficient way.

Free-Trade Zones in China

Free-trade zones in China are a class of economic zone where goods may be landed, stored, handles, manufactured, or reconfigured, and re-export under specific customs regulation and generally not subject to customs duty. The benefits of using a free-trade zone are cutting down on customs costs and clearing out lots of unnecessary errands affiliated with the importing procedures in China. Since the first establishment of the free-trade zone in Shanghai(2013), numerous international companies have been utilising its benefits and the Shanghai zone has become fairly well-known. Yet there are in fact 10 more inconspicuous free-trade zones in China handy for suppliers worldwide, each in a specific industry focus.

The Concept of Bonded Warehouse

Ausmate has proposed the innovative concept of the bonded warehouse in early 2018. We inaugurated the bonded warehouse project and we are the only designated business partner with the Chinese government in Northeast China. A bonded warehouse is a customs-controlled warehouse for retention of imported goods. According to the newly legislated law in China in August 2018, some industrial products categories (like cosmetics and certain kinds of supplements) have to pre-register with the quality control department in China. In the meantime, all the imported products can be stored in the bonded warehouse, withhold the tax until products are approved and get dispatched. The warehouse coordinates with transportation ideally and is an integral part of exporter’s global supply chain.

How Ausmate (with Hexpress) Assists in this Endeavour

China has a reputation of being a tough market to break into, especially without proper industry connections and the understanding of particular business manners in China. There are languages and cultural barriers that exist between Australia and China, whilst there are also the scam and fraud, excessive operating system ambiguity etc., lots of which a free-trade zone can mitigate. Ausmate helps to alleviate these problems by guiding and consulting with Australian businesses to explore their exporting options in the China marketplace. Regarding the collaboration with Hexpress, we will assist prospective exporters in the following ways: Due to the rapid boost in economic development, Hexpress’ local government relations enabled few preferential policies and support. DLC Ausmate will make use of Hexpress’ warehousing facilities to store Australian suppliers’ product. This collaboration will ensure a green-light for suppliers to expand their business in Northeast China (Heilongjiang, Liaoning, and Jilin province). There will be green lights for handling special product registrations, i.e. skincare, infant formula, health care and supplements. This will cut down on regulation and customs costs. The three provinces mentioned above are significant, lucrative market for Australian products since the current predominant products are mainly from Japan and Korea. In spite of that, the government has also dedicated Dalian, a major city in these provinces, as a Sino-Australian trading region. The region has presumptively a huge potential on trusted, quality Australian products in a long run. If you are looking for an expansion for your business in one of the most challenging but profitable markets in the world, contact Ausmate now to explore your options!