The artwork warehouse on Maji Road in the China (Shanghai) Pilot Free Trade Zone. [Photo/cri.cn]

There is an artwork warehouse comparable to a museum on Maji Road in the Waigaoqiao bonded area of the China (Shanghai) Pilot Free Trade Zone (FTZ). It has a collection of various valuable artworks such as oil paintings, sculptures and cultural relics.

The warehouse is divided into several storage areas, including VIP room with constant temperature and humidity, oil painting room and antique sculpture room.

According to the relevant regulations, overseas artworks that enter China are subject to a tariff of 1 percent to 1.5 percent, and the import value-added tax of 13 percent. Along with other related expenses, the overall tax rate for an overseas artwork entering China should be about 14.13 percent, which means that every cross-border sale of artwork must pay a high amount of tax.

The warehouse is divided into several storage areas, including VIP room with constant temperature and humidity, oil painting room and antique sculpture room. [Photo/cri.cn]

Whereas, if the artworks are placed in the artwork warehouse, it will not only save taxes but also have no time limits. Therefore, artwork bonded warehouses are popular with art buyers.

The cultural trade platform including artwork warehouse is one of the many institutional innovations conducted by the Shanghai FTZ.

Since the National Base for International Cultural Trade was established in the Waigaoqiao bonded area in 2013, it has become the country's fastest and most efficient channel for the entry and exit of artworks.

By December 2018, the total value of imported and exported cultural artworks in the base had exceeded 36 billion yuan ($5.23 billion).

Last year, Shanghai FTZ International Cultural Investment and Development Co built the Shanghai International Artwork Bonded Service Center in the bonded area, which is the world's largest artwork bonded warehouse.

The center is currently undergoing final layout and security work and is expected to open in the third quarter of this year.

An artwork in the warehouse on Maji Road in the China (Shanghai) Pilot Free Trade Zone. [Photo/cri.cn]