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Main policies of DFTZ
1. The import tariff and import linkage tax on goods entering DFTZ from overseas shall be handled in accordance with the following provisions, unless otherwise stated by laws and regulations: machinery and equipment used in productive infrastructure constructions, as well as other construction materials within DFTZ, shall be duty free.
2. Production and management equipments for DFTZ enterprises, as well as a reasonable quantity of office supplies and necessary maintenance parts used by DFTZ enterprises, fuel for production use, materials and equipments for the construction of factory buildings and storage facilities, shall be duty free.
3. A reasonable quantity of management equipments and office supplies, as well as necessary maintenance parts used by the administrative department of DFTZ shall be duty free.
4. Raw materials, spare parts, components and packing materials for processing the export products within DFTZ shall be bonded.
5. Transit goods and goods stored in DFTZ shall be treated as bonded goods.
6. Apart from passive export quota administration, import & export quota and licensing administration shall not be invoked in respect of goods imported and exported between DFTZ and overseas.
7. Where DFTZ enterprises develop the business of processing with imported materials, and processing materials supplied by clients, they need not implement a system of bank surety accounts for the processing trade. Where a non-DFTZ enterprise is entrusted to conduct processing business, such non-DFTZ enterprise shall go through the procedures of registration and record of contract in the local Customs, and implement a system of bank surety accounts for the processing trade.
8. In terms of foreign exchange: before 2007, DFTZ implemented Rules on Foreign Exchange Administration, which mainly consists of: DFTZ enterprises may open a foreign exchange account, to carry out willingness exchange settlement system, without limited foreign exchange, and foreign exchanges formalities with SAFE are not required. Foreign currencies, or RMB may be used by DFTZ enterprises in pricing and settlement, and foreign currency purchasing shall also be allowed within specific range.
On Oct. 1, 2007, Rules on Foreign Exchange Administration in Bonded Supervision Area came into effect, which widened the range of valuation and settlement for foreign currency, abolished foreign exchange purchasing limitations, loosened the conditions to open an account and properly extended the remittance policies when flow of goods and funds were inconsistent. Main contents: ① Economic exchanges between DFTZ and overseas shall be priced and settled in foreign currencies, unless otherwise specified. ② Transactions under goods trade between DFTZ and outside of bonded supervision area in China (hereinafter referred to as “Outside Areas”) may be priced and settled in RMB, or in foreign currencies; Incidental expenses of goods trade shall be handled in accordance with business practice; transactions under service trade shall be priced and settled in RMB. ③Transactions between DFTZ organs may be priced and settled in RMB, or in foreign currencies; various charges and levies of administrative organs in DFTZ shall be priced and settled in RMB.