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PROVISIONS
FOR THE IMPROVEMENT OF FOREIGN INVESTMENT
ENVIRONMENT IN XIAMEN SPECIAL ECONOMIC ZONE
(Issued on November 10, 1986)
SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT
ISSUING-DEPT: XIAMEN SPECIAL ECONOMIC ZONE
ISSUE-DATE: 11/10/1986
IMPLEMENT-DATE: 11/10/1986
LENGTH: 1214 words
TEXT:
I. Improving management, simplifying procedures and raising work efficiency
A decision has been made to set up a Xiamen municipal heading group in charge of foreign investment in order to strengthen the leadership over and the coordinating work of foreign investment, and to arbitrate and handle relevant important problems.
All departments of the Municipal Government shall further improve its work efficiency. Xiamen Municipal Foreign Economic Relations and Trade commission shall give a formal reply to any foreign investor applying for setting up an enterprise with foreign investment within one month from the date of receipt of the whole set of document. The Customs shall complete at one time the procedures concerning the application for registration of enterprise, contract examination and approval, issuance of import material entry Pamphlets and examination and approval of tax reduction and exemption in its declaration hall in a coordinated process. The Administrative Bureau of Industry and Commerce shall give a reply to the application for registration or for changes in registration within seven days from the date of receiving the application and related documents. The Department of Commodity Inspection shall issue the certificate within twenty days after receiving an application for inspection, as to avoid delay in fixing claims on imports, in making shipment and settlement in trade. The Taxation Department shall give a reply to the application for tax reduction or exemption as well as to the taxation appeal within fifteen days from the date of receipt of the application.
II. Providing good service to enterprises with foreign investment
(1) To set up a service company for enterprises with foreign investment, provide investors with information consultancy service, assist in handling the application procedures and give other services;
(2) To set up an engineering and technological consultancy company to assist investors in engineering and technological consultancy, project evaluation, and feasibility study upon entrustment;
(3) To set up a material supply company for enterprises with foreign investment to help them solve the problem of material supply required in production and construction.
III. Productive enterprises with foreign investment may enjoy the following preferential treatments provided the related contract includeds the plan of product marketing abroad and of import and export:
Application, approval and import license may be dispensed with where import of machinery and equipment, vehicles for use in production, raw materials, fuel, bulk parts, spare parts, components and fittings (including imports restricted by the State) is needed. The Customs department will exercise supervision and the examination and release the import or export on the strength of the contract of the enterprises or the import and export contract.
According to Document No. 85 issued by the State Council in 1985, certain policies concerning free port will be gradually implemented in Xiamen Speical Economic Zone. At present, the emphasis is to be laid on the development of bonded factories, bonded warehouses and bonded zones as well as on transit and entrepot trades. Any enterprise which is qualified for having a bonded warehouse or a bonded factory (i.e. having special factory, warehouse, special persons in charge and a special account) and observing the regulations of the Customs may apply to the Customs for examination and approval. The Customs will appoint its officials to station at the factory or warehouse to supervise and check import and export commodities on the spot.
IV. Credit funding and foreign exchange adjusting.
Export enterprises and technologically advanced enterprises, after examination by the Bank of China, Xiamen Branch, other specialized banks and Xiamen International Trust and Investment Company, will be given priority in obtaining short term revolving funds and the necessary credit funds. Banking businese such as current account overdraft, foreign exchange mortgage, fixed asset mortgage, and export documentary credits are to be developed to solve the problem of circulating funds in RMB or in foreign exchange as may be encountered by enterprises with foreign investment. Under the supervision of the foreign exchange control department, enterprises with foreign investment may mutually adjust their foreign exchange surpluses and deficiencies.
V. Continuing the chekcing up and readjustment of fee-collection items and scales, and reducing the charge to enterprises with foreign investment
The Municipal Government has decided to cancel six items of fee-collection, such as gas development fee, examination and approval fee for import and export, etc. Enterprises with foreign investment will be charged the same as state-run enterprises for such items as medical care, initial telephone installation, commission for international direct distance dialing, road maintenance for city buses, supplies of water, power and gas, cargo transportation, engineering design, consultancy service, advertisment, etc. If enterprises with foreign investment are charged unreasonablly, they may refuse to pay and may also appeal to the Municipal Foreign Economic Relations and Trade Commission or other higher authorities.
VI. Providing special preferential treatment to productive enterprises investing in Huli Industrial District.
The site use fee for enterprises with foreign investment will be charged at five yuan per square meter per year. If it is lower than five yuan in the contracts already signed, the original one temains effective. The price and rent for general-purpose foctories will be cut down by 10%. General-purpose factories may be purchased by installment payment, 30% of the selling price paid in the first installment and the rest paid within one year. Subsidies for electricity and the charge for capacity-increase of water pipe for enterprises with foreign investment will also be cancelled. A bonded zone will be established in Huli Industrial District. Under the supervision of the Customs, foreign commdodities except narcotics and weapons may be stored, processed, repacked and relabeled in the bonded zone and re-exported.
VII. Permitting the transfer of personnel
Enterprises with foreign investment may, in accordance with their production and operation requirement, determine by themselves the employment or dismissal of their staff members and workers. Technical and managerial personnel may be employed locally or from other parts of China or from abroad. The unit to which such employees belong should support and permit their resignation and employment. Their working years before resignation and after employment may be calculated successively. After the expiration of the labour contract, the personnel and labour departments should assist them in finding jobs.
VIII. Prices for the products manufactured by enterprises with foreign investment and approved for domestic sale may be fixed by the enterprises themselves according to the supply and demand of the market except the unified prices fixed by the State for certain commodities.
These Provisions shall come into force on the date of promulgation.
