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Haicang Taiwanese Investment Zone

Xiamen Haicang Taiwanese Investment Zone (hereinafter referred to as HIZ) was founded in May 1985, with the approval of the State Council of the People's Republic of China and enjoys the preferential policies of Xiamen Special Economic Zone. The planned area of HIZ is 100 square kms; it is divided into Harbor District, Xinyang Industrial District, the Southern Industrial District, and New Urban District; the development of HIZ is to build a new harbor district, industrial district, and new urban district for the 21st century Xiamen. The advantages of the location of HIZ HIZ is situated on the projected point of the Xiamen-Zhangzhou-Quanzhou Golden Delta which has the most prosperous economy, the most developed industry and business and the most potential of the southeast of Fujian province; it is the joint point of the well-developed Zhujiang Delta and Changjiang River Delta in the coastal region of China; HIT also faces Taiwan across the Taiwan Straits. HIZ has a convenient connection with both internal and external market; the inland radiation area is as far as Fujian, Zhejiang, Jiangxi, Hunan and other provinces. HIZ has an excellent port. Haicang Port is an important part of Xiamen Harbor and is a direct sail experimental port between the two sides of the Taiwan Straits. According to the planning, 36 ten-thousand-ton berths can be built in Haicang Port and the cargo handling capacity is 70,000,000 to 90,000,000 tons and Haicang Port is an important cargo seaport in the southeast coast of China. HIZ has an interdependent relation with Xiamen Island. The six-km-long Haicang Bridge connects Haicang with Xiamen Island. HIZ is the base for the change of the economic structure and the upgrade of the industries of Xiamen Special Economic Zone. The infrastructures in Haicang Transportation: HIZ has a unique 3-dimensional network of sea, overland and air transportation. Haicang Port has built a 30-thousand-ton container berth, a 20-thousand-ton break-bulk berth, a 10-thousand-ton oil wharf and a 35-thousand-ton coal wharf and is planning to build a construction materials wharf, a chemicals wharf and other wharves used for special purposes. The container berth has opened the sea routes to the West Coast of the USA, Manila, Japan, Korea, Hongkong and Taiwan. HIZ is 10 kms from Gaoqi International Airport, a major aviation hub in East China. Haicang railway line is connected with the national railway network. Fuzhou-Xiamen-Zhangzhou-Quanzhou Expressway and 324 State Highway pass beside HIZ and 319 State Highway goes through HIZ. HIZ has a complete system of telecommunications, banking, schools, hospitals and other facilities. Water supply: HIZ has a waterworks with a capacity of daily water supply of 80,000 tons. Electricity supply: There is a 60,000-kW power plant, five 220-kV and 110-kV converting stations supplying electricity for HIZ. Wastewater disposal: There is a wastewater disposal works in HIZ with a daily disposal capacity of 100,000 wastewater. The industrial basis and orientation in Haicang Electronics, machinery, chemical engineering and electricity are the four key industries of Xiamen and have already some foundation. HIZ encourages foreign investors to develop the industries and trades encouraged by Xiamen Municipal government; the key industries to develop include the downstream chemical products, new construction materials, refined chemical engineering and high and new technological industries. At present, HIZ has formed an embryonic basis of polyester, PVC products, sensitizing materials, electricity and other industries. Invested enterprises in HIZ HIZ has introduced 125 foreign-invested enterprises in total, a total amount of investment of US$ 2,573,000,000, and a total amount of contractual investment of 1,161,000,000; the investors are from 14 countries and regions; there are 13 projects with an amount of investment over US$ 30,000,000; there are 92 industrial enterprises among the foreign-invested enterprises, covering 73.6%. HIZ has approved 195 projects of internal investment in total; the total amount of investment is RMB 7,947,000,000; there are 41 industrial projects among all investment. The urban support of Haicang Xiamen City is a traditional trading port in the southeast coast of China, a seaside tourist city and one of the first four Special Economic Zones of China; it enjoys both provincial-level authorities in economic administration and local legislative power. The GNP per capita of Xiamen City has reached RMB 31,881. Xiamen port is one of the ten largest ports in China and has opened sea routes with over 60 ports of more than 40 countries and regions. The regular international and regional shipping lines go to USA, Germany, Belgium, UK, Holland, Japan, Southeast Asian countries, Korea, Kaohsiung, Hongkong and other ports. Xiamen Gaoqi International Airport has opened 62 international and national air routes, including international lines to Singapore, Penang, Kuala Lumpur, Manila, Jakarta, and Osaka, with some 380 flights of departure. Postal service and telecommunications in Xiamen: Satellite ground stations have been in operation; long distance direct dial service is connected with 210 countries and regions and more than 1,800 cities in China; there are also some 20 services available, including DDN, packet switching, EDI, EMS, telephone message, and facsimile; communication with the outside is very fast and convenient. Financial service: In addition to the state-owned commercial banks, the Sino-foreign joint Xiamen International Bank, and the foreign-funded Xiamen Commercial Bank￡?Hongkong-Shanghai Bank Co. Ltd. (HK), the Bank of the Orient (USA), the Standard Chartered Bank (UK), Credit Lyonnais Bank (France), Citibank N.A. (USA), the Dai-Ichi Kangyo Bank (Japan) and other foreign banks have set up their branches and representative offices in Xiamen. International schools: There are 2 international schools in Xiamen-Xiamen International School, and Xiamen Minxia International School; these two schools provide education from kindergarten to high school; English is used as the first language in both schools; the education in these two schools is compatible with international education. Science and technology and culture: Scientific research and education in Xiamen is well-developed: there are 120 scientific research institutions, 3 universities, 12 secondary professional schools; 10% of the urban population has at least a diploma of community college; and thus the city is able to provide different kinds of labor with professional training for the development of enterprises. Entertainment and service trade: The entertainment trade in Xiamen is also prosperous. There are several golf courts, sports centers and many dances and discos, and other facilities as well. Xiamen also has a five-star hotel-the Mandarin Hotel, and many three-star and four-star hotels. Preferential policies in Haicang Tax preferential policies The rate of business income tax for foreign-invested enterprises is 15%. Foreign-invested enterprises which satisfy the following conditions can enjoy further preference: 1. Productive foreign-invested enterprises with an operation period of more than 10 years are entitled to the tax holiday for the first two profit-making years and a 50% tax concession for the following three years. 2. At the maturity of the above-mentioned tax holiday and concession, foreign-invested enterprises shall enjoy a preferential tax rate of 10% in the following three years when they export 70% or above of their yearly output. 3.Foreign-invested enterprises with advanced technology shall be legible for the same preferential tax rate of 10% for the following three years after they are verified as enterprises with advanced technology. 4. Foreign-invested enterprises of service industry with foreign investment exceeding US $ 5 million and an operation period of more than ten years are qualified for the tax exemption for the first profit-making year and 1 50% tax concession for the following two years. 5. Foreign-invested power plants, ports, wharves, and other infrastructures with an operation period of 15 years are entitled to the tax holiday for the first five profit-making years and a 50% tax concession for the following five years. 6. Foreign investors of a foreign-invested enterprise who has reinvested their profits from the enterprise into the same enterprise, in increasing the registered capital, or in establishing another enterprise with an operation period of no less than five years shall enjoy a 40% refund of the tax on the reinvested profits. If such profits are invested in establishing or expanding an export-oriented enterprise of a technologically advanced enterprise with an operation of no less than 5 years, the enterprise shall enjoy a 100% refund of the tax on such reinvested profits. 7. The profit, interest, leasing income, the charge on the use of the chartered right and other incomes of foreign-invested enterprises shall enjoy a preferential business income tax rate of 10%. Customs duty Foreign-invested projects which transfer technology and fall within the Encouraged Projects or Restricted (B) Projects on the Industrial Catalogue Guiding Foreign Investment are exempted form customs duties and value-added tax on the imported self-use equipment within the investment amount, except those commodities listed in the Catalogue of Non-Duty Free Imported Commodities of Foreign-invested Projects. Foreign exchange Foreign-invested enterprises may make independent decisions on borrowing foreign exchange from domestic Chinese banks, or form foreign banks overseas or stationed in China. Labor Enterprises may employ personnel either from any part of Mainland China or from outside Mainland China. Land Enterprises may acquire the land use right after they have applied for that and paid due fees. Enterprises may also transfer, lease, mortgage or use the land in other activities. The maximum duration land use right varies with different purposes: 50 years for industrial use, 40 years for commercial, tourism and recreational use; and 70 years for residential use. Land of enterprises used for production is free of land use fee in five years since the day of production. HIZ provides the five-connection-one-level land, i.e. the lines of water supply, communications, wastewater, and flood drainage are connected to the road beside the land, electricity supply is connected to the shutter boxes between patches of land, and the land is leveled according to planning. Land of the investment in industrial projects may pay the fees of land in two ways: 1. If the fees of land are paid off in 2 months after the signature of the contract, the investors may enjoy a 25% off from the standard price of land; 2. The fees of the land of projects with large investment may be paid in installment in two years according to the standard price of land after approval. Entry and exit of the People's Republic of China In addition to the normal entry and exit administration, landing visa, application of certificates after landing, and landing comment on passport are also available in Xiamen port. Foreign citizens may apply for a five-day Foreign Tourist Visa after landing in Xiamen Port with their effective passports. Overseas Chinese and compatriots from Hongkong and Macau may apply for the Entry and Exit Pass of the People's Republic of China after landing in Xiamen Port with their effective residential certificates in their residential countries or Hongkong and Macau. Taiwan residents may apply for a one-time-use Laissez-passers for Taiwan Residents with their effective Taiwanese Passports after landing in Xiamen Port; Taiwan residents holding the Laissez-passers for Taiwan Residents with an effective duration of five years may apply for a one-time-use comment (with an effective period of three months) on their Laissez-passers after landing in Xiamen Port. Methods of capital contribution In addition investment in cash, investor may also invest with plant building, equipment, industrial property, proprietary property and others. Investment rate: foreign investment should not be less than 25% of the registered capital. The investment procedure in HIZ Talk over project?úapplication for preliminary accreditation of the name of the enterprise at Industrial and Commercial Administration Bureau?úApproval of the establishment of the company by Bureau of Economic Development?úIssue of approval certificate by the Municipal Foreign Investment Executive Committee?úRegistration of the enterprise at Industrial and Commercial Bureau; registration of at customs, taxation bureau, foreign currency administration, commodity inspection bureau and other necessary offices?úApproval of the establishment of the project at Bureau of Economic Development?úProject construction proceedings at Bureau of Construction The application documents for establishment of enterprises shall be submitted in four copies: Investment Application Form (exclusively for solely foreign-invested enterprises) and Application Report. Contract and articles of association of the foreign-invested enterprise (solely foreign-invested enterprise does not need to submit contract). Feasibility study report. Name list of the Board of directors, letters of appointment general manager and vice general manager and their identity certificates; resume of the chairman of the board of directors and his recent picture; and a recent picture of corespondent. Copy of the business license issued by the authority in the residential country or region of the investor(s) (individual investor should submit a copy of his/her identity certificate). Financial standing certificate. A lease (or purchase contract) of the premise for production and operation or the investment contract signed with the Economic Development Bureau. Letter of application for preliminary accreditation of the name of the enterprise. Other documents which the approval departments think necessary. The application documents for the preliminary accreditation of the name of the enterprise 1. The investor(s) may provide one to three names which indicate the main businesses of the enterprise. 2. The application form for the preliminary accreditation of the name of the enterprise. Legal business license of investor(s) or identity certificate; Project proposal or feasibility study report and documents of approval (for restrictive projects or projects which require approval). Investment service at HIZ The Administrative Committee of Xiamen Haicang Taiwanese Investment Zone (hereinafter abbreviated as ACXHTIZ) is an agency sent by Xiamen Municipal Government. Enterprises can go through establishment of enterprise, establishment of projects, registration of enterprise, application of the use of land, construction of workshop building, and other proceedings. ACXHTIZ also provides a whole set of free services of investment consultation, preparation of the materials for the establishment of enterprise, assistance in the handling of the proceedings of the establishment of project, and others for enterprises and gives assistance to enterprises in the solution of the difficulties in the process of setting up business, beginning of production, and operation. Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Write the displayed characters Add Comment Copyright 2007. All Rights Reserved.

 

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