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Xiangyu Free Trade Zone

Xiamen Xiangyu Duty-free Area, approved by the State Council of the People's Republic of China, was founded in October 15, 1992. The planned area of Xiangyu Duty-free Area is 2.36 square kms and the first phase of Xiangyu Duty-free Area of 0.9 square kms was accepted by the Customs Bureau of the People's Republic of China and ran into operation in November 28, 1993. Xiangyu Duty-free Area is planning concentrate on the development of five industries with the series of preferential policies given by China and the advantages of itself: duty-free processing (development of the processing and manufacturing with high technologies and high added value; repair of mechanical and electric equipment; classifying, packaging, label-sticking of commodities and other commercial processing), storage (development of duty-free import and export and entreport goods and becoming a center of supply and distribution), trade (development of internal and external trade, especially entreport trade and becoming an important channel of internal and external trade of the goods of home and abroad), goods distribution industry, and finally port industry (development and management of wharf, vessel and goods agencying, internal and international shipping). In addition, finance, insurance, commodity exhibition, real estate, transportation, information and other services are also allowed in Xiangyu Duty-free Area. Xiangyu Duty-free Area is located in the East Ferry in Xiamen Island and has a convenient overland, sea and air transportation. Xiangyu Duty-free Area has a complete system of infrastructure facilities: office buildings for investors, storage processing buildings and an exhibition hall of Xiangyu Duty-free Area have been finished; the connection of water, electricity and communications and the leveling of land for industrial and financial use have been ready and are able to meet the investment demand of trade persons, business persons in processing industry and commodity supply; the exclusive wharf for Xiangyu Duty-free Area is under construction and right now a 30,000-ton container berth has been completed and accepted and three more berths are under construction and two more berths have been approved as exclusive berths for Xiangyu Duty-free Area by the municipal government. Investment environment Geographic position: Xiangyu Duty-free Area is situated in the northwest of Xiamen island. It is to the west of 319 State Highway, on the east of the Duty-free Port area, on the north of the East Ferry, and to the north of Gaoqi International Airport. Xiangyu Duty-free Area is only separated from Taiwan by East Sea and is in the experimental direct-sail port with Taiwan. Xiangyu Duty-free Area enjoys the advantage of its unique geographic position. Natural conditions: Xiangyu Duty-free Area has a subtropical oceanic climate: the annual average temperature is 21 Celsius degree (the recorded highest temperature is 38.5 Celsius degree and the recorded lowest temperature is 2 Celsius degree); the annual humidity is 78% (it is more humid from March to August and drier from October to January); the dominant wind direction all the year around on Xiamen island is northeast wind and the annual wind speed is 2.24-4.7 meter/second; the annual rainfall is 1,182 mm. Transportation Sea transportation: Xiamen Port is 561 nautical miles to Shanghai, 389 nautical miles to Guangzhou, 287 nautical miles to Hongkong, 667 nautical miles to Manila, 222 nautical miles to Kaohsiung of Taiwan, and 816 nautical miles to Nagasaki of Japan. Xiamen Port has opened sea routes with more than 60 ports in more than 40 countries and regions including Australia, Japan, Singapore, USA, the former Soviet countries, Canada, Hongkong. In 1998, Xiamen Port handled over 16.39 million tons of goods, including more than 653,600 TEUs and ranked the sixth in all ports of Mainland China. Furthermore the first container liner in accordance with international standard in China has opened from Xiamen to Shanghai. Xiangyu Duty-free Area is situated in the East Ferry port, a deep-water excellent port. The exclusive port for Xiangyu Duty-free Area is connected with the Area and there are three container berths with a capacity of 20,000-30,000 tons, four general berths with a capacity of 10,000 to 20,000 tons. The port line is 1,406 meters and the land area in the port is 360,000 square meters. Land transportation: Yingtan-Xiamen Railway and Fuzhou-Wenzhou Railway (under construction) connect Xiamen with the national railway network; 319 and 324 State highway connect Xiamen with the national highway network; there are regular container truck lines between Xiamen and Shenzhen, and Xiamen and Hongkong. The passenger and freight transportation is very fast and convenient. Air transportation: Xiangyu Duty-free Area is 2 kms to Gaoqi International Airport. There are 62 air lines connecting with major Chinese cities and Hongkong, Singapore, Penang, Kuala Lumpur, Jakarta, Manila and other cities outside Mainland China and more than 760 landing and departure flights. In 1998, Gaoqi airport received and sent 3,495,600 passengers and the handling capacity of goods and mails in 1998 was 91,600 tons. The handling capacity of Gaoqi airport was the seventh in China in 1998. Supporting services: The Customs, commodity inspection, Industrial and Commercial Registration, taxation, banking, insurance, communications and other related departments have set up offices in Xiangyu Duty-free Area and will provide efficient and convenient services for investors. Ten preferential policies Any economic organizations, enterprises and natural legal persons from either inside or outside Mainland China who invest in Xiangyu Duty-free Area will enjoy the following special preferential policies besides the preferential policies offered by Xiamen Special Economic Zone: The enterprises may make independent decisions on the development of production and processing, transit trade, duty-free storage, distribution of imported and exported goods, management of wharf, commodity exhibition, and other businesses. Goods inside the Duty-free Area enjoys a policy of free entry from and exit to areas outside Mainland China and are not restricted by +and quota. The processing business in Xiangyu Duty-free Area is not subject to the way of administration according to the categories of enterprises and goods. The imported raw materials, raw parts and packaging materials for production use are duty-free and no +and + account are necessary. There is no ratio of internal and external sales for products made productive enterprises. The imported equipment, construction materials, office appliances, and spare parts for maintenance are exempt from customs duties, value-added tax and consumption tax. The imported goods can be stored in Xiangyu Duty-free Area and there is no limit of the period of storage. 10% of the business tax of the enterprises in Xiangyu Duty-free Area is returned. The enterprises in Xiangyu Duty-free Area may open foreign currency account and keep foreign currency for the + of capital. The imported goods of the enterprises of goods distribution in Xiangyu Duty-free Area may import in + and sell in + and the business tax is collected after the sales. Enterprises in Xiangyu Duty-free Area purchasing goods purchased from import and export companies or enterprise with the right of self-management of import and export outside Xiangyu Duty-free Area may delay the actual export procedure. If they have the necessary related forms and certificates, they may go through the related procedure of back-sales in Xiangyu Duty-free Area. The application for the exit of Mainland China of the Chinese personnel in need of business is easy and convenient and fast. Investment guide of industries Xiangyu Duty-free Area encourages enterprises to invest in the industries of processing, storage, trade and management of wharf. The investment in there industries enjoys the following advantages besides the preferential policies of Xiangyu Duty-free Area: Processing industry Xiangyu Duty-free Area has excellent duty-free storage facilities and service and the industry of storage is well developed. Thus Xiangyu Duty-free Area is able to provide service for the operation of the zero storage of productive materials and saves the occupation of + and speeds the + and increases the economic profit. There are separation facilities in the area and the businesses in the area have a high economic security. Enterprises can finish the procedures of the customs duties, taxation, commodity inspection, banking and other s and enhance the efficiency of enterprises and reduces cost of operation. The export enterprise in Xiangyu Duty-free Area is managed in EDI and the taxation of the exported goods is executed in a way of "no collection and no refund". Trade Trading enterprises have the rights of import and export in Xiangyu Duty-free Area and may engage in international trade and transit trade directly. Entry of goods into Xiangyu Duty-free Area only needs to be filed in the Customs'office. There is a complete set of supporting facilities for trade in Xiangyu Duty-free Area. Storage The cost of storage and management are lower than those in Hongkong, Taiwan and Southeast countries. Enterprises may make simple processing on the stored goods. The Customs administers Xiangyu Duty-free Area in a management mode of + and the supervision proceedings of the duty-free goods in Xiangyu Duty-free Area by the Customs is more simple and convenient. Enterprises may choose to participate in container make-up of goods, +, distribution of imported goods, deposit of foreign goods in warehouse, commodity exhibition and other businesses. Xiangyu Duty-free Area has several exclusive berths and it is very convenient for the storage and transportation of stored goods. Management of wharf The management of wharf in Xiangyu Duty-free Area is prosperous and has a lot of potentiality. As soon as the combination of Xiangyu Duty-free Area and Xiangyu Port runs into operation, the exclusive wharves will enjoy the preferential policies and functions. 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