Advantages in Geographic Location and Transportation

Facing Macao across the sea, only 10 minutes drive from Macao Lotus Customs Port and less than 10km from Macao International Airport, Zhuhai FTZ is an important gateway to the international market for products made in the Pearl River Delta.

Zhuhai FTZ is 30km from Zhuhai Airport, 18km from Jiuzhou Container Port, 45km from Zhuhai Port and 36 sea miles from Hong Kong. Today, more than 30 trips of ferry service are available between Zhuhai and Hong Kong as well as Hong Kong Airport. The duration of each trip is only 1 hour.

Advantages in Infrastructure

The 3km² initial phase of Zhuhai FTZ is now ready with 6 Connections and 1 Leveling. Ready for use are 500,000m2 of roads, 700,000m2 of standard workshops and warehouses, 13km of fence, 10km of patrol path, 1 inspection field, and 2 cargo and passenger inspection points. The Zhuhai FTZ container pier will be put into use in 2008. The International Trade Exhibition Center occupies 18,000 m2. The residence area is mostly completed and is in use accommodating more than 4,000 employees. Zhuhai FTZ has a daily water supply capacity of up to 10,000 tons and a power supply capacity of 100,000KVA. World advanced telecommunication facilities are available to provide IDD, fax, telex, ISDN, DDN and other domestic and international services. The design capacity of the program-controlled telephone switchboard is over 10,000 sets.

Advantages in Government Policies

In addition to China’s preferential taxation policies for special economic zones, enterprises in FTZ enjoy the following preferential policies granted to free trade zones:

⑴Goods moving between FTZ and abroad, except for those under passive export quota control, are handled without the requirement of import or export quotas or licenses;

⑵Enterprises may carry out bonded processing and bonded warehousing businesses in FTZ. Transit goods in FTZ may be classified, screened, labeled, repackaged or processed in other simple ways in a warehouse or other location in FTZ. Goods in FTZ may be transferred or assigned between in-zone enterprises. In-zone enterprises may hold exhibitions of foreign commodities or non-FTZ commodities in FTZ.

⑶ Tax exemption is granted to machineries, equipment and other capital construction supplies to be used in in-zone productive infrastructure projects; productive and managerial equipment, office supplies in reasonable amount and their spare parts imported for own use by in-zone enterprises; fuel for production; materials and equipment to be used in the construction of workshops and warehousing facilities; managerial equipment and office supplies in reasonable amount and their spare parts and components imported for own use by FTZ administrative bodies. Raw materials, parts and components and packaging materials to be used by in-zone enterprises for processing export products are in bond.

⑷Products produced or processed by in-zone enterprises are exempt from value added tax and consumption tax when sold in FTZ or abroad.

⑸Tax rebate is granted to the domestic manufactured portion of materials or components used in export products produced or processed by in-zone enterprises.

6、For the domestic sale of products produced or processed with imported materials or components by in-zone enterprises, tax is levied on the materials or components imported.

⑺In China, wholly foreign owned trading companies can be founded only in FTZs as permitted by the Chinese government.

Advantages in Legal System

Zhuhai FTZ has a sound legal support system in place, comprising Procedures on Customs Control over Bonded Areas, Procedures on Foreign Exchange Control over Bonded Areas, Regulations of Guangdong Province for the Administration of Bonded Zones and Regulations of Zhuhai Municipality for the Administration of Zhuhai Free Trade Zone, etc.

Advantages in Human Resources

A great number of IT talents from home and abroad have been attracted to carve out in Zhuhai. They lead the domestic peers in Chinese information processing, large simulation systems, banking software, finance software, power supply business management systems, digital medical imaging systems, MIS and ERP systems, network and e-business software, and education and entertainment software. Some of their projects are cutting edge in the world.

The university campus area in Zhuhai is under rapid development. Seven renowned universities, including Sun Yat-Sen University and Beijing University, have opened their campuses in Zhuhai, and the total enrollment was 63,000 in 2006. According to Zhuhai’s 11th Five Year Plan, the overall enrollment in Zhuhai university campus area will reach 100,000 by 2010.

  Functions of Zhuhai Park

Zhuhai-Macao Cross-Border Industrial Zone mainly engages in developing industry, and also has such functions as logistics, transit trade and commodity exhibitions. In-zone enterprises are entitled to preferential policy on free trade zone, tax policy on import and export goods for export processing zone, and policy on special customs port.

In-zone enterprises can carry out the following businesses: (1) processing and manufacturing; (2) test, maintenance and R&D; (3) disassembling and reconditioning; (4) storage of import and export goods and other goods which have not undergone customs clearance formalities; (5) import and export (including transit trade); (6) international sourcing, distribution and delivery; (7) international transit; (8) commodity exhibition and fair; (9) other processing and logistics business approved by the Customs.

Policies for Zhuhai Park

As an extension of Zhuhai FTZ, Zhuhai Park is supervised by the Customs, and with obvious advantages in terms of function, policy and location, it’s an industrial zone that enjoys the most preferential policies.

 Declaration System

1.Goods entering and leaving the industrial zone are controlled by registration system, and import and export goods are controlled by customs declaration system.

2. Enterprises may choose centralized customs declaration or flexible import and export customs declaration.

Tax Policy

1.CEPA zero tariff policy is granted to the cross-border industrial zone: CEPA goods from Hong Kong and Macao, with CEPA Preference Certificate of Origin issued by Hong Hong or Macao certification offices, are entitled to CEPA zero tariff policy when sold to Zhuhai city and etc. outside the Zhuhai Park via Zhuhai Park or after storage in Zhuhai Park;

2. Tax rebate policy is granted to goods brought in the zone. Inward domestic goods are subject to customs formalities for export goods. Goods qualified for export tax rebates are entitled to export tax rebate policy of the State when entering Zhuhai Park rather than when the finished products have left the Park;

3. Duties are levied on import goods according to their actual status. If import goods sold to the outside from Zhuhai Park are taxable, duties are collected according to their actual status.

Policies on Processing Trade

1. Electronic account book is adopted and Registration Handbook is not used;

2. Processing trade is not limited by unit consumption standard of the State. Enterprises declare their unit consumption to the customs as it is, and the customs conducts verification according to the actual unit consumption;

3. Consumptive materials are bonded no matter whether it is completely embodied in the export products or not;

4.Flexible regulations on outward processing. Enterprises in Zhuhai Park may outsource its processing work to an outside enterprise which is not registered with the customs. To contract for processing work from in-zone enterprises, an outside enterprise does not need to go through registration formalities with the local customs and to establish a bank deposit account for processing trade;

5. In-zone enterprises may carry out deep processing transfer business with outside enterprises or enterprises in areas under special customs supervision;

6. In-zone enterprises may go through report and verification formalities with the customs on yearly basis.

Policies on Flow of Goods

1. Goods can flow freely within Zhuhai Park. Through approval by the customs, enterprises may choose prior or subsequent registration with the customs.

2. Goods can flow freely among Zhuhai Park, other areas under special customs supervision and bonded zone under customs supervision.

Export tax rebate is granted to the inward flow goods described above if they did not receive such rebate before entering Zhuhai Park.

Management of Transportation Vehicles

1. Vehicles with both Hong Kong and Macao License Plate (including freight vehicles and non-freight vehicles)

——enter and exit port of the cross-border industrial zone, Zhuhai Park and urban Zhuhai.

2. Vehicles with Macao License Plate (including freight vehicles and non-freight vehicles)

——enter and exit port of cross-border industrial zone and Zhuhai Park.

3. Incoming goods can be stored in the industrial zone for as long as half a year.