Exempt from Duty
Machines, equipments, molds and maintenance parts used by the in-zone enterprises are duty free; machines, equipments for use in the productive infrastructure items and constructive materials needed in workshop building, storage facilities, are duty free; reasonable number of administrative articles used only by the in-zone enterprises and the Management Committee are free of tariff and import-related tax; export goods processed and produced inside the Area are free of V.A.T; the manufactured goods and the leftovers, bitts and pieces, damaged and substandard goods, waste caused during processing, except stipulated by laws and administrative regulations, are duty free when sold out of abroad.
Bonded Duty
Raw materials, parts, components, packing and consumptive materials needed by the in-zone enterprises for processing exports-oriented goods are bonded.
Duty Refund
The formalities of the home-made machines, equipments, raw materials, parts, packing materials coming into the Area and used by the in-zone enterprises and constructive materials used by the in-zone enterprises and Management Committee for infrastructure, production and office building are handled in the Customs for the refunded tax; and the water, electricity, gas used by the in-zone enterprises are handled in the Customs for V.A.T.
Processing Trade Recording System
A management system by electronic accounting books and a gross verification system once half a year are promoted to the processing trading business of the enterprises in HEPZ; there is no bank security accounting system for processing trade and the Registration Handbook has been abolished. A “Recording” system is carried out on all the outward and inward goods between HEPZ and the overseas. Raw materials and half-finished products can be freely transferred among the enterprises in HEPZ.
HEPZ is entitled to the preferential policies for foreign-funded enterprises in a state economic development area.
Standard Workshop Buildings
| The list of available standard workshop buildings in HEPZ |
| Property Right Company |
Name of the building |
Construction Time |
Area(M2) |
Storey |
Level Height(M) |
| Qiantang Group |
No. 9 Building |
|
6000 |
2-storey |
Floor 1 is 4.8 M; floor 2 is 4.5 M; in addition, there is a duplex apartment office area |
| Qiantang Group |
No. 1 Building |
Just completed |
14000 |
4-storey |
Floor 1 is 4.8 M; and floor 2-4 are 4.2 M |
| Qiantang Group |
No. 2 Building |
Completed in 2008.7 |
6000 |
4-storey |
Floor 1 is 4.8 M; and floor 2-4 are 4.2 M |
| Qiantang Group |
No. 3 Building |
Completed in 2008.7 |
6000 |
4-storey |
Floor 1 is 4.8 M; and floor 2-4 are 4.2 M |
| Qiantang Group |
No. 5、 No. 6、 No. 7、 No. 8 Buildings |
Completed in the end of 2008 |
74550 |
4-storey |
Floor 1 is 4.8 M; and floor 2-4 are 4.2 M |
| Jinsha Home Buyers |
No. 5 Building |
Completed |
10000 |
2-storey |
Floor 1 is 6 M; and floor 2 is 5.7 M |
| Jinsha Home Buyers |
No. 6 Building |
Completed |
10000 |
2-storey |
Floor 1 is 6 M; and floor 2 is 5.7 M |
Note: The deadline for this statistics is 19th March 2008.
Advantage Comparison on project site selection between inside HEPZ and outside HEPZ
| Project |
Inside HEPZ |
Outside HEPZ |
Raw materials import (two forms)
1.imported from abroad
2.imported from outside |
No tariff and imported-related V.A.T is levied (bonded).
There is no bank security accounting system, and the principle of “no levying and refunding” is introduced for tax exemption of export-oriented products, and “late payment” is introduced for the products sold at home.
In-zone enterprises are of duty free when purchasing raw materials from abroad.
Raw materials coming into the zone (domestic) and used by the in-zone enterprises, and that enterprises off HEPZ transport to HEPZ shall be deemed as export, and the off-zone enterprises apply to the tax authority for the refunded tax based on the tax-refund (free) forms. That is to say, in-zone enterprises can purchase raw materials at a price lower compared with the same kind enterprises outside HEPZ (at a price excluding taxation or including low taxation). |
Tariff and imported-related V.A.T is levied or there is no bank security accounting system.
The principle of “levying first and refunding later” is introduced for tax exemption of export-oriented products. For products sold at home, tariff and export-related V.A.T is deducted from deposit, or the taxation of raw materials have already levied.
The taxation or deposit is levied.
All materials of domestic purchase are at a price including taxation. |
| Export refund |
The principle of “no levying and refunding” is introduced for the in-zone enterprises processing exports-oriented goods. The materials of domestic purchase are at a price including lower taxation, and the main body for tax refund has changed from direct export enterprise (in-zone enterprise) to off-zone material supplier, but the profit space of in-zone enterprise lies on the value-added part of the product, which is the part of “no levying and refunding”, because of the adjustment of tax refund policy and the continuous decrease of tax refund rate of off-zone enterprise. That is to say, the larger the value-added space is, the larger profit space you get. And the profit space will be much larger if purchasing raw materials from abroad, as all materials are duty free (bonded).
Take a certain product as example:
Supposed that a product is sold at a price of 100 Yuan, therein, the cost of raw material is 70 Yuan (or a little cheaper than that outside HEPZ) and the value-added part is 30 Yuan. Then, the current rate of tax-refund is 5%.
In-zone enterprises have less advantages on raw material tax-refund compared with off-zone enterprises, as the main body for refund are mainly off-zone enterprises, and the materials the in-zone enterprises purchased from outside at a price including some taxation. And there is no levying or refunding for the value-added part of 30 Yuan, and this makes the difference. Compared with off-zone companies, only a part of taxation is contained in the 100 Yuan, and no taxation is in the 30 Yuan, thus, there is a profit space of 12% difference. |
The principle of “levying first and refunding later” is introduced for the off-zone enterprises processing exports-oriented goods. 17% taxation is levied first, and then 0%-13% taxation is refunded.
Take a certain product as example:
Supposed that a product is sold at a price of 100 Yuan, therein, the cost of raw material is 70 Yuan (or a little cheaper than that outside) and the value-added part is 30 Yuan. Then, the current rate of tax-refund is 5%.
This export-oriented product is levied according to the price of finished product, that is, 17% taxation is levied from 100 Yuan, but only 5% is refunded, including the value-added part of 30 Yuan. |
| Tax-refund of water & electricity used by the enterprises |
In-zone enterprises can get about 13% tax-refund
On-line declaration, one tax-refund every each quarter |
No tax-refund |
| Domestic Sales of Product |
In-zone enterprises shall pay late tariff and export-related V.A.T for domestic sales of product, as the raw materials coming into HEPZ are of duty free or at a lower taxation. Please note: the late payment is levied according to the taxation rate of finished product. Thus, domestic sales of product may have less influence on in-zone enterprises, if the finished product is of zero tariff or at low tariff. However, the difference between benefits and loss shall be estimated if the tariff of the finished product is much higher than the taxation of raw materials. |
Direct domestic sales of product is implemented, as the imported raw materials are levied and the domestic materials are purchased at a price containing taxation. Thus, the product is sold at a price containing taxation. |
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