1991.03.01
STATE SCIENTIFIC & TECHNOLOGICAL COMMISSION
INTERIM　 PROVISIONS　ON　CERTAIN　POLICIES　CONCERNING　NATIONAL　 HIGH
TECHNOLOGY AND NEW TECHNOLOGY INDUSTRY DEVELOPMENT ZONES
(Approved　 by the State Council on March 6, 1991, Promulgated　by　 the　
State Science Commission in March, 1991)
Article　1　These　provisions　are formulated　to　further　support　the
construction of high technology and new technology industry　development
zones　in our country, and to push forward the development of　high　and
new technology industry.
Article　2　These　provisions shall apply to　high　and　new　technology
enterprises in the national high technology and new technology　industry
development zones, which have been designated pursuant to conditions and
Measures　on the Designation of High and New Technology　Enterprises　in
National　High Technology and New Technology Industry Development　Zones
made by the State Science Commission.
Article 3 These provisions include various preferential policies　except
those of taxation.
Article 4 Preferential treatment on custom duties concerning the　import
and export of goods shall be handled as follows:
(1)　Import　of　raw　materials and parts by　high　and　new　technology
enterprises　established　in　the high　technology　and　new　technology
industry　development　zones for the manufacturing　of　export　products
shall be exempted from import license requirement, and the customs shall
clear　the　goods　upon presentation of　export　contract　and　approval
document of the high technology and new technology industry　development
zone.
(2)　When approved by the customs, high and new　technology　enterprises
may　set up bonded warehouse or bonded factories in the high　technology
and　new　technology　industry development zones.　The　customs　 shall,
pursuant　to relevant provisions on processing with imported　materials,
exempt　import duty and product tax and value added tax for　the　import
stage based on the actual manufactured and exported volume.
(3)　Export　products　manufactured　by　the　high　and　new　technology
enterprises shall be exempted from export duty except for those products
whose　export　are　restricted　by　the　state　or　regulated　by　other
provisions.
(4) If the goods under bonds are to be sold domestically, then　approval
from　the　original　examination and　approval　authority　and　customs'
permission　must be obtained and duties shall be paid according　to　the
law.　Those　products　that fall within the　quota　and　import　license
administration　by the State, then application shall be　submitted　 and
import　 formalities　shall　be completed and import　license　shall　be
applied for.
(5) For instruments and equipment that can not be produced　domestically
and are needed by the high technology and new technology enterprises for
the　development　of　high and new technologies, import　duty　shall　be
exempted　by the customs when approval document of the　examination　and
approval authority are examined and verified by the customs.
When　the　customs　seem necessary, it may set　up　offices　or　station
supervision　and　administration group in the high　technology　and　new
technology　development　zones to administer the import　and　export　of
goods.
Article 5 Provisions concerning import and export business.
(1) When approved by MOFERT, technology import and export companies　may
be established in the high and new technology industry development zones
so　as　to promote the high and new technology products　to　enter　into
international market.
(2)　Pursuant　to relevant provisions of the State, those high　and　new
technology enterprises that have a good record of conducting import　and
export business shall be granted rights to engage in foreign trade. When
necessitated by business operation and approved by relevant　department,
high　and new technology enterprises may open branches and　subsidiaries
abroad.
Article 6 Provisions on funding and credits.
(1)　The　banks　shall　provide　active support　to　the　high　and　new
technology　enterprises, and shall endeavor to arrange funds　needed　in
their development, production and construction.
(2) The banks may arrange the issuance of long-term bonds within certain
quota by the high technology and new technology development zones so　as
to raise funds from the society and support the development of high　and
new technology industry.
(3) Relevant departments may establish venture capital funds in the high
technology and new technology industry development zones, which shall be
used to develop high risk high and new technology products. In the　more
matured　high technology and new technology industry development　zones,
venture capital companies may be set up.
Article 7 Capital construction project for the production and　operation
of　the　high　and　new technology　enterprise　shall　be　arranged　for
construction according to uniform planning, and shall be given　priority
in having the same included in local fixed asset investment scale.
Article　8　When　approved by local people's government,　high　and　new
technology　enterprises may be exempted from subscribing the　bonds　for
State Key Construction.
Article 9 If all the indicators of the high and new technology　products
developed　by the high and new technology enterprises have　reached　the
level　of the imported products of the same kind, and the high　and　new
technology　enterprises posses certain production capacity,　then　after
the　review　and　determination　by the　State　Science　Commission　and
relevant　department,　such　product shall be　included　in　restrictive
imports calatogue of the State, and the import of such product shall　be
controlled pursuant to existing import administration measures.
Article　10　New　products　developed by the　high　and　new　technology
enterprises　whose　prices are controlled by the　State　(including　the
prices　fixed　by　the　State　and prices　guided　by　the　State),　the
enterprises may fixed the sales promotion prices by themselves and　file
the　same　with　the price administration department　and　its　superior
department　in　charge　within the prescribed　sales　promotion　period,
except　that the prices of certain type of products shall be　determined
by　the　price administrative department. The enterprises　may　fix　the
price of those high and new technology products which are not subject to
the price control of the State.
Article 11 Instruments and equipment used by the high and new technology
enterprises　for　the　development　of　high　and　new　technology　 and
production　of　high and new technology products may　adopt　accelerated
depreciation.
Article　12　Provided　that the portion to be　handed　over　to　central
treasury　shall　not　be　affected,　when　approved　by　local　people's
government,　all taxes and charges paid by the high technology　and　new
technology　enterprises　in　1990 shall be used as a　base　figure.　Any
additional　taxes　paid　on top of that shall within 5　years　be　fully
refunded　to　high technology and new　technology　industry　development
zones and shall be used for the construction of development zones.
Article　13　Business　and　technical personnel　of　the　high　and　new
technology　enterprises who make multiple trips abroad shall follow　the
GUO Ban Fa (1990) No. 9 Document.
Article　14　When arranging employment and　recruiting　employees,　each
region　and each department shall give prior consideration to the　needs
of　high　and　new technology enterprises　for　graduate,　post-graduate
students and returned Chinese students and exports from abroad.
Article 15 The people's government of each Province, autonomous　region,
municipality　or　planned separate city where high　technology　and　new
technology　industry development zone arrived by the State are　situated
may adopt detailed implementing measures according to these provisions.
Article　16 The State Science Commission and relevant　department　shall
conduct　periodic inspection to the high technology and　new　technology
industry　development zones. For those national high technology and　new
technology industry development zones that are poorly managed or　 whose
progress　are sluggish, the applicable preferential policies　shall　 be　
terminated,　or even the status of national high　technology　 and　 new　
technology industry development zone shall be removed.
Article 17 The State Science commission and relevant department shall be
responsible for the interpretation of these provisions.
Article　18　These　provisions shall be implemented　from　the　date　of
approval by the State Council.