Preferential Policies

Tax policy. Machinery, equipment and other capital goods needed for in-area construction projects of infrastructure for production, production and management equipment and rational quantity of office items for their own use by in-area enterprises as well as their required parts and components for maintenance, fuels and facilities for production shall be exempted from import duty and import link taxes of goods entering the bonded areas from places beyond the boundaries.

Raw materials, spare parts, components and packaging materials required for the processing of export products by in-area enterprises shall be bonded. Goods for transshipment and goods stored in the bonded areas shall be put under control as bonded goods.

No time limit for the stored goods within the area.

Merchandises produced by in-area enterprises for the purpose of selling in the area or outbound transporting are free of VAT.

Merchandises processed by in-area enterprises for the purpose of selling in the non-bonded areas shall be paid import duty and product tax in the link of import based on the proportion of overseas materials included.

Goods transported from the non-bonded areas into the bonded areas shall be regarded as export goods and tax shall be refunded. For Goods imported into the area, tax shall be refunded in accordance with the customs declaration form for export drawback issued by Customs.

Foreign trade policy. Goods of overseas origin (except for those controlled by export passive quota) are free of entrance and exit license and exempt from export quota control.

In-area enterprises may open foreign exchange current accounts and foreign exchange special accounts for capital items.

Foreign exchange verification and write-off shall be no longer handled. Enterprises may fully retain foreign exchange income. Profits and dividends from foreign investors may be remitted overseas.