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Nine regional functions

1. Free trade zone processing: Goods that have not conducted tax payment formalities will exit the territory again after processing and assembling in the free trade area. Finished products processed with free trade imported materials and parts will be transferred to a processing trade enterprise within another customs area for further processing and then will be exported.

2. Port operation: Receive, dispatch, store or transfer goods via Nantong comprehensive free trade zone or goods that have not finished customs formalities; conduct basic freight transport port operations such as loading and unloading, trans-shipping, towage and storage for goods.

3. Free trade zone storage: Free trade storage of imported and exported goods or other goods that have not finished customs formalities.

4. International procurement and distribution: Enterprises can purchase goods at home and abroad freely. They can distribute goods to enterprises at home and abroad freely or transfer goods among other special areas under customs supervision in China.

5. International entrepot trade: The goods will be sold and exported to other countries or regions without processing after being stored in the free trade area.

6. R&D: Research and development equipment purchased by research and development institutions in the free trade area will be exempted from import tariffs and value-added taxes at import linkage. R&D materials, parts under bond, and research and development results can be transferred to domestic and overseas institutions for industrialization purposes.

7. Inspection and maintenance: Inspection for high technology content and high added-value products; after-sale maintenance for domestically made and exported products.

8. Exhibition and demonstration: Develop exhibitions and demonstrations relevant to free trade processing, free trade logistics and relevant business operations.

9. Foreign trade: Give full play to regional, functional and policy conditions; extend applicable policies such as rapid customs clearance, goods under bond, and storage logistics to better conduct foreign trade activities.

Preferential policies in five aspects

1. Tax policies: The imported equipment purchased by the enterprises in the free trade area will be exempted from import tariffs and value-added taxes at import linkage. In case the goods are exported or traded among enterprises within the free trade area, the value-added tax and consumption tax will be exempted. A value-added tax will be returned for water, power and gas consumed by enterprises in the free trade area. Foreign goods will be under bond after entering the free trade area while domestic goods will enjoy tax refunds after entering the free trade area.

2. Customs policies: The system of “one customs clearance, one bill review and one inspection” will be adopted for imported and exported goods. The filing, customs clearance, inspection, release, and cancellation after verification formalities for imported and exported goods will be performed in the relevant customs of the export processing zone. Registration by groups and centralized customs clearance systems will be adopted for domestic materials and parts upon entrance to the free trade area. There will be a rapid passageway for the direct pick-up and direct release of imported and exported goods between Nantong comprehensive free trade zone and the Port of Nantong.

3. National inspection policies: Supervise according to the regulations relevant to inspection and quarantine supervision for special areas under customs supervision issued by the General Administration of Quality Supervision. Quality inspection will be exempted for goods imported and exported by enterprises in the free trade area and office and living consumption products for personal use. Any good entering the free trade area from any place inside Chinese territory will be exempted from inspection and quarantine. The system of “separation of inspection and release” will be adopted for manufacturing enterprises in the free trade area.

4. Foreign exchange policies: Policies shall be executed according to the Foreign Exchange Administration Method for Areas under Free trade Supervision. Export and receipt of foreign exchanges and cancellation after verification formalities will be unnecessary for goods that are transported or sold to overseas areas. Import and payment of foreign exchanges and cancel after verification formalities will be unnecessary for paying foreign exchanges for imported goods.

5. Foreign trade and economic policies: The processing trade bank cash deposit standing book system will not be implemented for enterprises in the free trade area, which are not subject to the Restricted Commodities Catalogue of Processing Trade.