Approved by the State Council in May 2006, Qingdao West Coast Export Processing Zone (青岛西海岸出口加工区) started its establishment in October with a planned area of 2 square kilometers. After passing the quality acceptance of nation, the zone began its operation in July 18, 2007. Due to organizational changes in Febuary 2013, Qingdao Free Trade Port Zone took the charge of the export processing zone. 

The export processing zone is an area for companies to manufacture, process and assemble products for export. In this area, all the imported machines, materials, raw materials and semi-finished products are duty free.