The State Council has approved an overall development plan for a pilot free trade zone (FTZ) in East China’s Zhejiang province, according to a circular issued on March 31.

The pilot zone will be developed in the designated area of 119.95 square kilometers, covering three major areas — Zhoushan’s offshore islands, northern and southern parts of Zhoushan Island, which are, respectively, 78.98 square kilometers, 15.62 square kilometers and 25.35 square kilometers.

The three areas are designed to have their own functions — Zhoushan’s offshore islands will focus on building a world-class green petrochemical base, developing bulk commodity storage, transit and trading and bonded fuel oil supply; northern parts of Zhoushan Island will focus on bulk commodity trading, bonded fuel oil supply, bonded logistics, storage and manufacturing of oil and petrochemical supporting equipment; southern parts of Zhoushan Island will focus on bulk commodity trading, building an aviation industrial park and developing other industries, such as aquatic products trading, ocean tourism, and seawater usage.

The document lists 16 major tasks and measures to promote the pilot zone’s development.

The tasks are mainly concerned with five aspects — expanding related administrative reform, promoting investment facilitation and trade freedom in all oil-product-related industries, exploring new trade investment models, enhancing mechanism innovation in related financing fields, and promoting mechanism innovation in customs clearance.

The documents urged furthering governmental system reform in order to establish an FTZ administration system with clear responsibilities and efficient management.

It also plans to build international bases or centers on maritime services, oil storage and transport, petrochemical and oil trading.

Regarding exploring new trade investment models, efforts should be made to establish an international ore transit base and Zhoushan aviation industrial park, said the circular.

According to the document, with three years’ efforts and exploratory reforms, Zhejiang’s free trade pilot zone will meet international standards with facilitated investment and trade, bringing together high-end industries and improved capabilities in dealing with bulk commodities.