PREFERENTIAL PROCEDURES OF THE PEOPLE'S GOVERNMENT OF NANTONG
MUNICIPALITY FOR ENCOURAGING INVESTMENT BY FOREIGN BUSINESS
PEOPLE IN THE ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE

(Issued on November 6, 1986)

 

 

 

SUBJECT: ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONES

ISSUING-DEPT: JIANGSU PROVINCE

ISSUE-DATE: 11/06/1986

IMPLEMENT-DATE: 11/06/1986

LENGTH: 1331 words

TEXT:

[Article 1] The Nantong Economic and Technological Development Zone (hereinafter referred to as the Development Zone) is a zone designed for adopting certain policies prevailing in special economic zones in accordance with relative regulations laid down by the State Council.  In order to effectively implement the Provisions of the State Council on the Encouragement of Foreign Investment, further improve environment for foreign investment, and attract more foreign business people to make investments and set up enterprises in the Development Zone, these Procedures are hereby formulated.

[Article 2] Enterprises invested by foreign business people shall all be exempt from local income tax.

[Article 3] Enterprises invested by foreign business people shall be exempted from charges for using work-site within six years from the date of their establishment, and shall be charged for a fee from RMB 2 Yuan to RMB 12 Yuan per square meter per year starting from the seventh year.

Enterprises whose products are for export and enterprises characterized by advanced technology may be, upon approval of the Administrative Commission of the Development Zone, exempted from charges for using work-site within ten years from the date of their establishment.

In case development charges are calculated and collected once and for all or enterprises develop work-site themselves, a fee of RMB 1 Yuan shall be charged for using work-site per square meter per year.

[Article 4] Enterprises invested by foreign business people shall be exempted from providing Chinese employees in the enterprise with various allowances, as would otherwise be provided by the state in state enterprises, except that they pay for or withdraw such funds as labor insurance, medical benefits and housing allowances for Chinese employees in the enterprise in accordance with relative state regulations.

[Article 5] Energy, transportation and communication facilities required by enterprises invested by foreign business people for their production and operation shall be given priority and be subject to the same charging standards as those applicable to state enterprises located in this municipality.  In addition, the foreign trade transportation companies in this municipality shall give priority to transportation needed by such enterprises for exporting their products.

[Article 6] Enterprises invested by foreign business people enjoy priority in procurement of raw and auxiliary materials for their production and operation as long as such materials are available within bounds of this municipality, and pricing for such materials shall remain the same as that rendered to state enterprises.  Meanwhile, such enterprises are encouraged to set up raw material bases of their own.  Expenses such as project construction expense, etc. incurred by such enterprises shall be collected in accordance with the prevailing standards used in same professions in this municipality.  Besides, such expenses as mentioned above shall not be collected in foreign currency without approval of the Municipal Foreign Exchange Control Bureau.

[Article 7] Enterprises invested by foreign business people shall report their employee recruitment quota to the department of labor and personnel concerned for record.  The board of directors of such enterprises has the right to decide not only such rules concerning employees as the form and standard of wages and salaries, rewards, allowances and raises of wages and salaries, but also the limit to the total wage and salary expenditures.

[Article 8] Production workers required by enterprises invested by foreign business people shall be recruited in public within this municipality.  In this respect, employees involved in the requisition of work-site are eligible for such open recruitment, and those who fail to be recruited shall be referred to the department of labor and personnel under the Development Zone for overall arrangement.

[Article 9] Technical and managerial people required by enterprises mentioned above can be recruited or temporarily transferred either from other parts of China or from abroad.  Those recruited or temporarily transferred from other parts of China shall return to where they previously come from upon termination of their employment contract.

[Article 10] The foreign party of the enterprises invested by foreign business people is free from payment for various funds such as water fund and electricity fund raised by municipal departments concerned.  No organizations shall be allowed to apportion enterprises invested by foreign business people indiscriminately and recklessly and charge them unreasonably.

[Article 11] When the quality of products manufactured by enterprises invested by foreign business people reaches the same level as that of import products, departments concerned shall, upon approval of authorized organs, reduce importation of such products and give purchase priority to products manufactured by enterprises invested by foreign business people.  Once approved by the Municipal Foreign Exchange Control Bureau, foreign currency may be used for settling accounts for such purchase partially or entirely.  Import substitutes produced by enterprises invested by foreign business people may, once approved, be regarded as products for export.  Such being the case, enterprises aforementioned shall enjoy tax reduction or tax exemption treatment according to the actual quantity of import substitutes produced.

[Article 12] Enterprises invested by foreign business people may, where necessary, entrust foreign trade corporations to export their products for them and shall enjoy the same treatment rendered to domestic enterprises in China in terms of percentage shares of foreign exchange earnings.  Upon verification and approval, such enterprises can make use of distribution channels of foreign investors to export domestic products, thus maintaining a comprehensive compensation.

[Article 13] Sustained efforts shall be made in constructing apartment buildings, residences for foreign business people and in improving their material and cultural life.  Preferential treatment in terms of food and accommodations shall be extended to those foreign business people who frequently lodge in guest houses or hotels in the Development Zone.

[Article 14] The municipal government shall establish an administration and service center catering to foreign business people for making their investment.  This center is designed for facilitating the handling of matters relating to enterprises invested by foreign business people with a view to raising efficiency and effectiveness.  The organs in charge of examination and approval of projects shall give an official reply to project requests within half a month after receipt of project proposals and to feasibility study reports, contracts, and constitutions within 20 days.  Likewise, they shall make ready operation licenses within three days after receipt of complete documents and deal with requests for opening an account with the Bank of China at any time when such requests presented.

[Article 15] The Administrative Commission of the Development Zone may handle, upon request, relative domestic formalities for enterprises invested by foreign business people and shall actively render various conveniences to such enterprises.

[Article 16] These Procedures are also applicable to enterprises in this Development Zone invested by companies, enterprises and other economic organizations and individuals residing in Hong Kong, Macao and Taiwan.

[Article 17] The Administrative Commission of the Nantong Economic and Technological Development Zone is empowered by the people's government of Nantong Municipality to interpret these Procedures.

[Article 18] These Procedures shall be implemented on the date of promulgation.