The Tianjin Port Free Trade Zone was established on May 12,1991 with the approval of the State Council of the People's Republic of China. It is among the first specific economic open areas with a comprehensive nature and enjoys State preferential policies.

·Geographical Position:

The Free Trade Zone is located in the center of Bohai rim economic circle and is within the Tianjin Port and this integration gives it a superior edge. It is the only Free Trade Zone in China to have special railway lines connected to the Beijing-Shanhaiguan railway and is only 38km from the Tianjin International Airport. It serves the vast areas of Tianjin and Beijing, North and Northwest China and is a focal point for foreign trade and the flow of international goods. It is the closest point in Northeast Asia to the Euro-Asia Continental Bridge in terms of transportation. The Tianjin Port Free Trade Zone is the first choice for the investors to enter the North China market by utilizing the benefits of the Free Trade Zone.

·The three major systems of the Free Trade Zone:

- A system centered on commodity distribution, allocation and dispatching on the basis of bonded warehousing;

- A market exchange system to promote trade by holding commodity exhibitions and combination of exhibition and trade fairs;

- An import/export processing system with integration of processing and trade.

The Free Trade Zone is a special economic area "within the border, beyond the customs" and a free-trade zone with Chinese characteristics:

- An international commodity exchange market. Imported commodities can be exhibited and sold within the zone without tax or license.

- An expedite channel for international goods flow. An international cargo distribution center amongst the leaders in the free trade zones in China: no customs tax or value-added tax will be levied on international goods imported to the free trade zone, no need for import license and no time limit for goods storage. A continuous land, sea and air transportation system provides door-to-door service.

- Advantageous port side export processing base. Enterprises engaged in processing will be exempt from customs duty and value-added tax on the imports of production equipment, building material, raw material used in production, parts and components, and office facilities.

- Tianjin Port Free Trade Zone has attracted nearly 4,000 foreign companies from 88 countries and regions to make investment here. The contractual investment amounts to 4.8 billion USD. It has become the international cargo distribution center and port side trade & processing base with the greatest open in the northern China. Caltex, Caterpillar from US, BENZ from Germany, Carrefour from France etc, have set up enterprises here. Tianjin Port Free Trade Zone will develop into the largest window of international trade and green channel for the international goods in the north of China.