Preferential Policies
CS-SIP is awarded the same status as the five Special Economic Zones (SEZs) of China and Pudong New District of Shanghai. Yet as a priority park, it also has privileges of its own.
Tax Incentives
The corporate tax is reduced to 15%, compared to 30% in most part of China. The local income tax of 3% is exempted. Encouraged investment projects may enjoy exemption of customs duty and VAT for imported capital equipment. SIPAC will grant more incentives to hi-tech projects.
Investment Approval
SIPAC is authorized to approve investment projects of any size within SIP with no upper limit on the total amount of investment. Wholly-foreign-owned or joint venture financial institutions or joint venture and cooperative retail enterprises are also allowed to settle in SIP.
Export Processing Zone(EPZ)
China's State Council has approved setting up EPZ in SIP. It is one of 15 experimental EPZs that enjoy the convenience and privileges of "operating within the territory yet beyond customs tollgate".
The EPZ covers an area of 2.91 sq km and the development of the first phase of 44 hectares is already unfolding. The circling of the Zone with iron fence has completed and the first batch of ready-built factories will be put into use in Jan. 2001. Several foreign investors are ready to move in.
With the establishment of the Zone, enterprises running inside will enjoy tariff exemption incentives on importing construction materials, spare parts, consumptive materials and office supplies of rational amount for their own use.
The formalities of Processing Trade Logbook and Bank Deposit Account System will not be applied within the Zone. A record-keeping scheme will be applied instead of customs declaration for import of raw materials and export of products to other countries as well as free-transfer of goods in the Zone. The enterprises there will be linked to the Customs' computer network for centralized management.
No VAT shall be imposed on products produced in the Zone. Products export to the Zone from other parts of China can enjoy VAT rebate.
Except those falling into passive export quota control, cargoes in and out of the Zone to and from overseas are not applicable to import and export quota and license control.
No foreign invested enterprises located in the Zone are allowed to independently deal with import & export business.
Foreign Affairs
To make the exchange of visits easy, the
central government has accorded SIPAC the following foreign affairs privileges:
1. Approve exit for public affairs by employees with enterprises
(excluding wholly-foreign-owned enterprises) and institutions in SIP jurisdiction area;
2. Issue Passport for Public Affairs (including Service Passport) to the above approved
people;
3. Apply on behalf to foreign embassies or consulates for entry visas;
4. Issue business or work visa notifications to Chinese embassies and consulates for
aliens-invited to enter China.