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Xiangyu Free Trade Zone

Xiangyu Free Trade Zone is a test zone for Xiamen SEZ in accelerating the implementation of certain free port policies. The zone focuses on international trade, trade with Taiwan, transit trade, bonded storage and export processing, as well as finance, insurance, futures markets, commodity exhibitions, wharf management , transportation, information and other related business.

[Key Functions] [Preferential Policies] [Accessibility]

Xiamen Xiangyu Free Trade Zone (XFTZ) was established with the approval of the State Council on October 15, 1992. As a test field for Xiamen to accelerate certain trade-free port policies, XFTZ is exploring new development and providing Chinese and foreign merchants favorable trade opportunities. It is operated in accordance with international practice and is closely linked with the world market.

The zone focuses on international trade, trade with Taiwan, transit trade, bonded storage and export processing, as well as other business like finance, insurance, future market, commodity exhibition, management of wharf, transportation, information and other related business.

Xiangyu Free Trade Zone is located on two square kilometers in the northwest of Xiamen, with Dongdu Harbour to the west, Harbour Railway to the east, Xiamen Bridge to the north and Xiangyu docks to the south. Its geographic location is superior and easily accessible.

Key Functions of the XFTZ

International trade: All the companies in XFTZ are allowed to enterprise and develop international trade, mainland-Taiwan trade, entrepot trade and other import and export trade regulated by the state.

Bonded warehousing and exhibition: All the companies in XFTZ are allowed to do warehousing, transportation and exhibition businesses of international entrepot, transit, import and export goods.

Export processing: XFTZ encourages Chinese and alien investors to set up factories to do international trade-related simple processing, separating, grading and assembling of export-oriented products.

International finance: With approval of People's Bank of China, Chinese and alien-funded banks and other finance institutions are allowed to do business of banking, insurance, offshore finance, future finance and goods, and other foreign currency operations.

Other functions: Businesses of commodity exhibition, dock-entreprising, transportation and information, and other related businesses are allowed to develop in XFTZ.

Preferential Policies

The preferential policies practiced by the XFTZ have been endorsed and legally sanctioned by the Standing Committee of Xiamen Municipal People's Congress. Among these policies:


  • Good shipped from abroad to XFTZ are exempted from tariff tax and value-added tax.

  • Goods exchanges, processing, and labor services are exempted from value-added tax.

  • Companies in the XFTZ are exempted from income tax for the first two years of profit, and then taxed at half rate for the following three years (income tax rate is 15%.)

Finance and Foreign Currency

  • Companies in the XFTZ have the right to retain foreign currency earnings or to exchange into Chinese currency.

  • The companies in the XFTZ manage their foreign currency independently. Legal earnings of foreign investors, other legal earnings, liquidated capital and legal earnings of foreign staff may be remitted abroad lawfully.

Business rights

  • Companies in the XFTZ are allowed to do business and import and export trade and entrepot trade. Moreover, they may obtai the right to do international and domestic trade.


  • No import and export license is required for goods to enter or exit XFTZ.


  • Companies in the XFTZ may consign compaines in non-bonded areas to process and manufacture goods or process and manufacture goods for companies and other economic entities in non-bonded areas.

Personnel Exit and Entry

  • The Chinese staff of the companies in XFTZ may be issued multiple-entry visas to Hong Kong and Macao.


  • There is no time limit for storage of goods in the XFTZ.

Land Use

  • Useage rights of land and buildings granted lawfully in the XFTZ may be transferred, leased, mortgaged, and inherited legally.

Special dock

  • The special dock of XFTZ may be invested and enterprised by investors. The dock is open to ships from the world including Taiwan.


Land: XFTZ is directly accessible by two national highways (319 and 324,) and is 6 km from Xiamen railway station, which joins the national railway network via the YinXia line. Passenger, freight and container transportation are very convenient.

Air: XFTZ is 2 km from Xiamen international airport. The airport ranks the fifth of the country in passenger handling volume in the last five years. It has opened 51 air routes to main cities of China as well as HongKong, Singapore, Penang, Kuala lumpur, Jakata and Manila.

Sea: XFTZ is located in the region of deep-water Dongdu port. It will have its own special dock which includes one container-handling berth with 25000 tonnage level and three common berths with 10,000 tonnage level. The dock has a coastline of 726 m, and occupies a land area of 358,000 square meters. Xiamen port is 561 nautical miles from Shanghai, 389 nm from GuangZhou, 287 nm from HongKong, 667 nm from Manila Philipine, 222 nm from Kaohsiung Taiwan, 816 nm from Nagasaki Japa, and has opened sea routes to more than 50 ports of over 30 countries. The handling volume of Xiamen port exceeded 2 million tons in 1994.


XFTZ is administered by
Xiamen Free Trade Zone Administrative Committee
Xiangyu Free Trade Zone, Huli, Xiamen
Tel: 6035831 Fax: 6035830

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