Construction of a bonded zone in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region began on Saturday.
The 2.41 square kilometer zone is expected to be in operation by July 2016, according to Xue Jihai, head of the zone's administrative committee.
The bonded zone enjoys geographic advantages for trade thanks to its proximity to airport, railway and highway facilities. It will provide bonded warehousing, logistics, manufacturing and integrated services, Xue said.
Sun Zhijie, head of Urumqi customs, said the bonded area is expected to connect local markets with international markets, and will help internationalize Xinjiang's enterprises.
Two bonded areas have been set up in Xinjiang in Alataw Pass, the country's largest land port, and the city of Kashgar which borders on five Central Asian countries.