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Q&A on NFTZ Policies
Author:   Source:  Published:2016-03-11  Click:50389  Text Display:Large Medium Small Print

1) Preferential Policy of NFTZ

Economic and Trading:

  • Domestic and overseas investors, economic organizations and individuals are encouraged to establish Sino-foreign joint ventures, cooperative businesses and exclusively foreign-owned enterprises in Ningbo Free Trade Zone. International trade, export processing, warehousing, commodity exposition, transit trade, inside-the-zone trade, intermediary and other related operations are permitted.

  • Enterprises inside NFTZ enjoy a wide range of business scopes unless otherwise regulated by the State.

  • Medium and giant scale enterprises are encouraged to do all-round and comprehensive business of processing, trading and commercial service.

  • Projects of the investment capital with no more than USD30 million are examined and approved by the administrative committee.

Customs

  • NFTZ exercises the system of "inside the territory, outside the Customs".

  • Computerized networking management and customs EDI inspection system are instituted in the area.

  • Merchandises entry and exit the Zone are free of customs declaration formalities, customs duty, import and export license, and only EDI electronic filing is required.  

  • Except for the passive quota control, no export quota or permit management will be imposed on goods moving between the area and foreign countries.

Financing and Foreign  Exchange:

  • Foreign exchange can be retained under the trading item or be sold to appointed banks.

  • Enterprises in the Zone do not have to handle any cancel-after-verification procedure for export taking-in exchange or import paying exchange.

  • Foreign exchange bank account is allowed to open, and foreign exchange is used in trading items.

  • Account settling between corporation inside the zone can be both in the form of foreign exchange and RMB.

  • Sino-foreign joint ventures, cooperative businesses inside the zone are permitted to buy foreign exchange with their investment capital. Logistical and export processing companies are allowed to convert RMB income into foreign exchanges. Annual post-tax profit can be remitted abroad.

  • Branches and agencies of financing and social security organizations are allowed under permission.

  • As for the overseas scholars´ high-tech projects, the Administrative Committee provides special project subsidy, loan interest subsidy for R&D and manufacturing projects, rental fee subsidy and other incentives.

Tax:

  • Merchandise entry and exit NFTZ is exempted from import & export quota and license. When transported to non-free trade areas, they are to be treated as imported goods on which taxes should be duly levied by the customs.

  • Taxes are exempted for machines and equipment needed to build infrastructure facilities for productive in the area, building materials needed to construct production plants and storage facilities and reasonable amount of office equipment and stationery used by the inside enterprises, and administrative bodies.

  • Raw materials, parts, components, packaging materials, and other consumptive materials for the processing of re-export products used by the inside enterprises are to free from duties.

  • Entrepot and storage merchandise are bonded.

  • Goods wholly made of imported materials leaving NFTZ for the other areas should go through customs procedures as imported goods and should be taxed as finished products. If the products are under permit control, the owner should submit valid import permits to the customs for inspection. As for goods partially made of imported materials and transported to the other areas should be taxed on the imported pieces.

  • Goods entering NFTZ from other areas are to be treated as export goods that should go through customs procedures. Export refunds for such goods should be processed when on board.

  • Annual post-tax profit and foreign employees´ income can be remitted overseas.

  • Enterprises are exempted from regulatory tax of fixed assets investment.

  • As for the overseas scholars hi-tech projects, special project subsidy, loan interest subsidy of R&D and rental subsidy for R&D and manufacturing facility is applicable.

Trading :

  • Enterprises in NFTZ have direct access to international trade. Foreign-funded trading companies are allowed to be set up in the Zone.

  • Enterprises inside enjoy special policies of "exempt from license, exempt from duty and bonded tax".

  • Foreign exchange can be retained and corporation are granted with wider range of business scope.

  • Companies are permitted to purchase goods from the other areas and apply for tax refund.

  • NFTZ conducts port-zone integrated operation with Ningbo Beilun Port, and goods can be transported into and out of the Zone freely. 

Logistic:

  • Logistic enterprises are allowed to stock merchandise according to international and domestic market, unless stipulated otherwise by related laws and regulations.

  • Goods and products in the Zone can be transferred and/or moved between the enterprises in the Zone unless stipulated otherwise by related laws and regulations. The parties involved should report the specific product name, quantity and value to the customs for record keeping before such transference and/or movements take place.

  • The customs should supervise and control the goods moving between the Zone and port, allowing direct or trans-customs transportation.

  • "Separate distribution, single declaration" police is applied to giant distribution enterprises.

  • Merchandises are admitted into the Zone without limit on warehouse duration, amount and variety.

  • Enterprises in Zone are allowed to deal with commercial goods processing including packing, classifying, labeling and distributing in bonded warehouses.
    Business of distribution, delivery, stocking and enterprises can be permitted to deal with transportation, agency etc.

  • Overseas enterprises are allowed to entrust in-zone partner for merchandise storage and domestic trade agent service.

Processing Trade:

  • Corporate income tax: tax rate for foreign funded manufacturing companies is 15%. As for enterprises with operation period exceeding 10 years, starting from the first profit-marking year, 100% tax remittal for the first 2 years and 50% tax relief for the subsequent 3 years . After the tax holidays, hi-tech and export-oriented enterprises can continue to enjoy the related tax rebate.

  • Taxes are exempted for machines and equipment needed to build infrastructure facilities for productive in the area, building materials needed to construct production plants and storage facilities and reasonable amount of office equipment and stationery used by the inside enterprises, and administrative bodies.

  • Raw materials, parts, components, packaging materials, and other consumptive materials for the processing of products used by the inside enterprises are tax bonded.

  • The requirement that enterprises engaged in the processing trade deposit guarantee money in the bank does not apply to the enterprises doing the same business in the areas. The customs offices will not execute management according to the Registration Manual Regarding the Enterprises Engaged in Processing Trade. Entry and exit forms of raw materials, parts, components, packaging materials, and other consumptive materials for processing are required by the customs.

  • Goods whole made of imported materials leaving NFTZ for the other areas should go through customs procedures as imported goods and should be taxed as finished products. As for goods partially made of imported materials and transported to the other areas should be taxed on the imported pieces. Goods of faulty declaration, tax are imposed as finished products.

  • Except for the passive quota control, no export quota or permit management will be imposed on goods moving between the area and foreign countries, goods are exempted from import &export duty, VAT.

  • Bonded merchandises trading between in-zone businesses are free from VAT. Goods leaving the processing areas for the other areas should go through customs procedures as imported goods and be taxed on imported pieces.

  • Materials and spare parts can be purchased domestically and re-imported or exported, tax refund can be applied for.

  • Inside enterprises are allowed to undertake processing trade and consign product processing to enterprises outside the areas.

  • Some restricted projects are allowed after related procedures.

  • Reimbursement and subsidy on land, workshop and dormitories are afforded in light of factors of investment scale, technology content, and so forth.

Exhibition:

  • Application to hold exhibitions in the Zone goes through simple procedures. The imported goods exhibited in the Zone receives supervision from the Customs according to the standards of bonded goods. No tariff mortgage is required. There is no time limit to exhibitions.

  • Exhibition companies´  foreign exchange policy operates in compliance with that of FTZ.

  • Domestic enterprises have instant access to global market without going outside. Samples are available before orders are placed and sales are permitted on spot.

    The Administrative Committee administers all affairs in NFTZ, complying with the international common practice. It provides one stop service for its enterprises for the benefit of investors and taxpayers. NFTZ Customs Office is independent in dealing with all customs affairs in NFTZ. Other organizations including foreign exchange administration bureau, tax bureau, banks, insurance companies, and service agencies are in one building, providing efficient one stop service for customers.

     NFTZ is dedicated to creating first class business environment for investors from both at home and abroad. NFTZ provides a strategic platform of cooperation and development with world economy. We are looking forward to investors seizing the business opportunities and creating a bright future.

 
 
 
 
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