Till yesterday, the Three Gorges Bonded Logistics Center have completed 861 cases of customs clearance, with a total value of five hundred and ten million RMB, leading all the other existing bonded logistics centers in Hubei province by a big margin.

　　The Three Gorges Bonded Logistics Center, which was established exactly one year ago, has entered a passage of accelerated growth with a skyrocketed performance. On the occasion of the first birthday of the Center, our correspondents made an in-depth exploration into the center to discover the secret behind its rapid development.

　　A New Thing Turned Into a New problem.

　　For those live in Yichang, bonded logistics business was a new thing.

　　In 2014, Yichang initiated the application and construction work of the bonded logistics center. Xiaoting District, with its convenient transportation in water, land, air and rail, won this municipal project.

　　But they had no idea what the future would turn out to be.

　　“We can’t compete against the social logistics company if we do logistics business; and we have no shot in surviving with only 280 foreign trade enterprises in the city if we depend on bonded business.” It has always troubled the staff of the Three Gorges Bonded Logistics Center all the time when they familiarized themselves with the bonded logistics business.

　　How to make it work? This new thing became a new problem.

　　To ask for policy support from the Ministry of Commerce? It was a fast track. However, it was also the worst way possible, meaning that the center had to wait, to rely on outside support, and to ask for favors. It also meant that the center was incapable of running on its own, which failed the expectation of both Municipal and District Party Committee and government, as well as the people of Yichang. A project supposed to attract business and investment had already become a burden before its operation. It was something the center staff could not accept.

　　The center had to move forward, to learn by itself and to innovate.

　　The center staff bucked up, learning from the bonded logistics centers with excellent performances in the coastal area and integrating with the foreign trade enterprises, logistics enterprises and trade processing enterprises in the surrounding areas. Consensus has also been reached with Sanxia Airport and Yichang Yunchi Shipping Port in terms of the integration of free trade zone and port..

　　At 10 o’clock on December 30th last year, a container car carrying Xingfa Group’s 26875 US dollars worth of sodium pyrophosphate drove slowly through the gate of Yichang Three Gorges Bonded Logistics Center, making it the first business since its operation.

　　The staff was finally relieved. It took a good three years to apply, construct and successfully operate the center, marking a significant step towards the export-oriented economy for Yichang.

　　The Transformation From a Bonded Warehouse to a Comprehensive Service Supplier for Foreign Trade Enterprises

　　There are about 60 bonded logistics centers in the country, most of which had very few business and suffered from loss, except the Suzhou and Zhengzhou bonded logistics centers. Located in Yichang, an inland city, the center would definitely be out of business without transforming itself. The staff made detailed researches on the needs of the foreign trade enterprises, and their difficulties, coming up with custom-made strategies to tackle them. Gradually, the center transformed itself from a bonded warehouse to a comprehensive service supplier for foreign trade enterprises, making one exploration and attempt after another.

　　Guangsheng Textile used to export the cotton yarn through Wuhan Dongxihu Bonded Logistics and then sell the product to domestic customers. It not only took more time, but it cost 5 million RMB of freight, with 10 thousand tons of products every year and 9000 RMB per shipping. How to save this money for the client? “One-day trip” operation was the way.

　　The import tax used to take up much of the Zigui Jisheng’s working capital, which greatly hindered its development. What was the solution? The problem was solved by leading the enterprise to transform and upgrade, changing from a common trader enterprise to a trade processing enterprise.

　　Yichang Wuhuan Cotton Textile Company suffered from a tight working capital, because it had limited asset, lacked collateral and couldn’t raise finance by liquid assets. How to raise a large amount of working capital for them and reduce the occupation of the fund? The bonded logistics company created a trade financing plan. With only 20% of deposit, the bonded logistics company could import the cotton yarn on the behalf of Wuhuan and open international usance letter of credit using the international import contract, thus solving Wuhan’s problem of incapable of raising finance by liquid assets.

　　The difficulties and problems that each enterprise faces can be similar, yet they are also unique in their own ways. With its accurate understanding on the international trade policy and professional services, the Three Gorges Bonded Logistics Center integrates different resources, innovates its ideas and created various supply chain financing products like warehouse receipt pledge, credit enhancement by guarantee and entrusted import and export, which are mutually beneficial for SMEs and banks through cooperation. Trade financing has become its featured product that solves the major issues for the bonded logistics centers in China.

　　Driving the Development of Export-oriented Economy in Yichang

　　The outstanding performance of the Three Gorges Bonded Logistics Center has won the compliment from the Ministry of Commerce, who praised its innovative practices that is not only of great significant for the transformation of the Three Gorges Bonded Logistics Center, but can serve as an example for the development of other inland bonded logistics centers even for the future inland special customs surveillance zone. The director of the Three Gorges Bonded Logistics Center management office, Li Xiangchun, says that it is a new beginning.

　　Premium and custom-made bonded logistics services are needed for the construction of Three Gorges Linkong Economic Zone that has been approved by provincial government, freighter conversion and flight maintenance services of Lingyun Flight, parts business of Guangzhou Automobile Group. The center integrated with Lingyun Flight, and saved it 100 million RMB from building a bonded warehouse. With its advantages in various aspects, the bonded logistics of Guangzhou Automobile Group will be more convenient and cost-efficient.

　　Changes win the market, innovation wins the future. There is still a long way ahead for innovation.

　　Li Xiangchun says that the Three Gorges Bonded Logistics Center will fully take its functional advantages in accumulating resources, elements, wealth and development, driving for reform and development by opening up. It will serve as the trial platform for commodity trade system innovation in Yichang, Hubei Free Trade Zone. By copying, promoting its experience and piloting, the Three Gorges Bonded Logistics Center will serve as an example and strengthen the momentum in deepening the supply-side reform in Yichang and Hubei province by creating the Yichang Experience that will promote opening-up and development. (Reporter Yuan Jing, Correspondent Tang Shuitang, Lin Jingjing)