The establishment of BLC is for improving bonded logistics efficiency and reducing the logistics cost. The BLC is designed as a customs special monitoring Zone, in which the Cargoes be thought exported or not yet imported from/in China.
The favorable policies given by Government are as follows:

1. When domestic cargo is carried in BLC, it is thought exported and allowed to apply for VAT refund.
2. The cargo is allowed to be carried aboard or imported into BLC from aboard directly without any quota or license.
3. The bonded cargoes could be exported to BLC for trading handbook verification and then be imported into China after payingtariff and VAT for domestic sale.

With these advantages, BLC is the substitution of Hongkong to perform as a logistics Hub for bonded and non-bonded cargoes transfers, so that the logistics cost is saved and the efficiency is improved.

Comparing with other bonded warehouses or Export Processing Zone(EPZ), BLC is the best choice for VMI and DC.