1991.09.16
TIANJIN MUNICIPALITY
MEASURES ON ADMINISTRATION OF THE TIANJIN HARBOUR FREE TRADE ZONE
(Promulgated　by　Decree　No.　39　of　the　Tianjin　Municipal　People's
Government on September 16, 1991)
　　　　　　　　　　　　　　　　 CONTENTS
CHAPTER I GENERAL PROVISIONS
CHAPTER II ADMINISTRATION AND SERVICE ORGANIZATIONS
CHAPTER III RESPONSIBILITIES AND POWERS OF ENTERPRISES
CHAPTER IV TRADE ADMINISTRATION
CHAPTER V FINANCE AND INSURANCE
CHAPTER VI PREFERENTIAL TAX TREATMENT
CHAPTER VII EXIT-ENTRY CONTROL
CHAPTER VIII SUPPLEMENTARY PROVISIONS
　　　　　　　　　　　 CHAPTER I GENERAL PROVISIONS
Article　1　In accordance with relevant state laws and　regulations　and
policies,　the　following measured are hereby formulated to　ensure　the
effective　management of the Tianjin Harbour Free Trade Zone　(hereafter
referred to as the Free Trade Zone).
Article　2　The Free Trade Zone provides services for the　expansion　of
foreign　trade,　entrepot　trade,　transit　trade　and　 export-oriented
processing industry.
Within　the　Free　Trade Zone such business activities　are　allowed　as
international　trade and services; the processing, packaging,　transport
and　storage　of　goods;　commodities　exhibitions;　and　finances　 and
insurance.
Article　3　The　lawful　rights and interests　of　Chinese　and　foreign
investors in the Free Trade Zone are protected by law.
Companies,　enterprises　and　other　economic　organizations　(hereafter
referred　to as the enterprises), offices and individuals must abide　by
the　laws, decrees and regulations as well as the rules and　regulations
of Tianjin and the Free Trade Zone.
　　　　　 CHAPTER II ADMINISTRATION AND SERVICE ORGANIZATIONS
Article 4 The Administrative Committee of the Free Trade Zone (hereafter
referred　　to　 as　 Administrative　 Committee)　 exercises　　unified
administration　of　the Free Trade Zone as authorized by　the　Municipal
People's Government.
Article　5 The Administrative Committee, composed of a　chairman,　vice-
chairmen and a number of members, is under a system whereby the chairman
assumes full responsibility.
The　 Administrative　Committee　may　invite　experts　 and　 well-known
personages from at home and abroad as advisors.
Article　6　The　principal functions and powers　of　the　Administrative
Committee are as follows:
1.　To exercise unified administration of the Free Trade Zone　according
to the Measures;
2.　To map out a general zoning plan for the Free Trade Zone and,　 once
the plan is approved by the Municipal People's Government, supervise its
implementation;
3.　To formulate and promulgate various detailed rules　and　regulations
for the management of the Free Trade Zone;
4.　Within the framework of the authorization of the Municipal　People's
Government,　to examine, approve and handle investment projects　in　the
Free　Trade　Zone, and handle the administrative　procedures　concerning
planning, financing, industry and commerce, capital construction,　land,
real estate, foreign economic relations and trade, labour, personnel and
environmental　protection; to assist in the customs, taxation,　finance,
commodities inspection, quarantine, public security and fire　prevention
to perform their duties in the Free Trade Zone;
5.　To be responsible for the construction and management of the　public
utilities and infrastructure in the Free Trade Zone;
6.　To　ensure　the　establishment　of　offices　of　the　Administrative
Committee　and appoint and remove its functionaries at the　intermediate
level;
7. To screen and approve Chinese personnel at and below office level for
short-term official business trips or training in foreign countries;
8.　To exercise other functions and powers authorized by　the　Municipal
People's Government.
Article　7　Customs　and frontier inspection　stations,　industrial　and
commercial　and taxation administrative organs shall be　established　in
the Free Trade Zone.
Article　8　Construction, investment and service companies　as　well　as
labour,　accounting　and legal agencies shall be　established　to　serve
enterprises in the Free Trade Zone.
　　　　 CHAPTER III RESPONSIBILITIES AND POWERS OF ENTERPRISES
Article　9　Investors　who want to　establish　enterprises　must　follow
pronounced　ratification procedures. With the certificates of　 approval
and　relevant　documents,　they may register　with　the　industrial　and
commercial authorities for business licenses.
Article 10 With their business licenses, enterprises must register　with
customs and taxations departments.
Article 11 With their certificates, investors may go through　procedures
concerning the land use rights of rent or purchase of house property　in
the Free Trade Zone.
Article　12 Enterprises must submit their construction　and　engineering
plans to the Administrative Committee for approval.
Public bids may be invited for construction projects.
Article　13 Enterprises may set prices for commodities they　produce　or
deal　in and for services they provide, and record the prices　with　the
Administrative Committee.
Article　14 Enterprises must set up account books and submit　accounting
statements to the Administrative Committee.
Enterprises　should open special account books endorsed by　the　customs
for goods exempt from import and export duties and for bonded goods.
Article　15　Enterprises may, at their own discretion,　determine　their
organizational　and personnel structure and size, choose their own　wage
system　and　set　their own standards for the employment　of　staff　and
workers.　Employment　matters may be handled by the enterprises,　or　be
entrusted　to the Administrative Committee. They should put the　numbers
of　workers　they　plan to hire on the　record　of　the　Administrative
Committee.
Article　16　Once　their　applications　are　approved　by　the　Taxation
Department,　enterprises　may shorten the depreciation period　of　fixed
assets.
Article 17 Enterprises wanting to change names or legal　representatives
or to shift production lines, move, merge, transfer ownership within the
Free　Trade　Zone or stop operation ahead of schedule　should　seek　the
approval　 of　the　Administrative　Committee　and　register　with　 the
industrial and commercial and taxation departments for the change or the
cancellation of registration, and file records with the customs.
　　　　　　　　　　 CHAPTER IV TRADE ADMINISTRATION
Article　18 Foreign investors and overseas enterprises are　entitled　to
engage in international trade, as are Chinese enterprises delegated with
the power to engage in foreign trade.
Article　19　Enterprises in the Free Trade Zone are allowed　to　 import
articles for production purposes and export their products.
Article　20　For goods whose import or export is　subject　to　licensing
control, import or export licenses shall be exempt when the goods　enter
the Free Trade Zone from outside China or when goods exit the Free Trade
Zone　to　foreign countries; goods shipped to non-free　trade　zones　in
China or from non-free trade zones in China to the Free Trade Zone shall
be handles according to state stipulations.
　　　　　　　　　　 CHAPTER V FINANCE AND INSURANCE
Article 21 With the approval of the People's Bank of China, Chinese　and
foreign　 banks　 and　insurance　enterprises　may　 set　 up　 business
organizations in the Free Trade Zone.
Article　22　The foreign exchange income of foreign enterprises　in　the
Free　Trade Zone shall be subject to the management as specified in　the
Provisional Measures Concerning Exchange Control in the Free Trade Zone.
Chinese-funded enterprises in the Free Trade Zone may have a reserve　of
their　foreign　exchange　income for　circulation.　Their　year-end　net
foreign　exchange　income shall be either turned over to　the　state　or
retained partially according to relevant regulations.
Article 23 With income tax receipt or certificates, the profit　earnings
of foreign investors and the wages, salaries and other lawful income　of
foreign staff and worker may be remitted to foreign countries.
Article　24 Foreign exchange loans borrowed by enterprises in　the　Free
Trade　Zone　from abroad or from foreign banks　and　Sino-foreign　joint
venture banks in China are subject to the management in accordance　with
relevant state regulations concerning foreign loans.
Article　25　Enterprises　may,　pursuant to　the　rules　concerning　the
regulation of foreign exchange, engage in foreign exchange　transactions
in foreign exchange regulating centres within or without the Free　Trade
Zone.
　　　　　　　　 CHAPTER VI PREFERENTIAL TAX TREATMENT
Article　26　All goods entering the Free Trade Zone from　outside　China
shall　be　exempt　from customs duties　and　industrial　and　commercial
consolidated　tax, products tax (value-added tax) or bonded　tax　unless
otherwise regulated by the state.
When　the　goods which have entered the Free Trade　Zone　duty-free　are
shipped to non-free trade zones in China, customs duties, import-related
industrial　and commercial consolidated tax or product tax　(value-added
tax) shall be levied according to law.
The　entry of products of enterprises in the Free Trade Zone　into　non-
free trade zones in China or the entry of goods of non-free trade　zones
in China into the Free Trade Zone shall be handled according to　customs
regulations.
Article 27 Products manufactured by enterprises in the Free Trade　 Zone
are exempt from customs duties and the production-related industrial and
commercial　consolidated　tax　or product　tax　(value-added　tax)　when
shipped　out　of　China;　when sold within the　Free　Trade　Zone,　such
products shall be exempt from the industrial and commercial consolidated
tax or product tax (value-added tax) on the production thereof.
Article　28　Enterprises　in the Free Trade Zone　enjoy　favourable　tax
deductions in accordance with relevant state regulations and regulations
of the Tianjin Harbour Free Trade Zone concerning tax deductions.
　　　　　　　　　　 CHAPTER VII EXIT-ENTRY CONTROL
Article 29 Article whose import and export are prohibited by law　 shall
not be shipped into or out of the Free Trade Zone.
Article 30 Means of transport and commuting shall be allowed to enter or
leave　the　Free　Trade　Zone　at　exit-entry　spots　designed　by　 the
Administrative Committee by long-term or temporary passes issued by　the
Administrative Committee.
Article　31 People who enter or leave the Free Trade Zone　must　produce
effective　certificates endorsed by the Administrative Committee.　Their
personal belongings are subject to customs inspection.
Article　32 No personnel shall be allowed to stay overnight in the　Free
Trade　Zone　except those who have been ratified by　the　Administrative
Committee and have gone through related formalities.
　　　　　　　　 CHAPTER VIII SUPPLEMENTARY PROVISIONS
Article　33　Smuggling　and other illegal and　criminal　activities　are
strictly　prohibited　in　the　Free　Trade　Zone.　Violators　shall　 be
prosecuted according to law and pertinent state regulations of　relevant
departments.
Article　34 Establishment of enterprises or offices in the　Free　 Trade
Zone　by　investors　from Hong Kong, Macao and　Taiwan　or　by　overseas
Chinese,　and　entry　or exit of persons and means of　transport　in　or
outside　the　Free Trade Zone shall be handled with reference　to　these
Measures.
Article　 35　The　Tianjin　Municipal　People's　Government　 shall　 be
responsible for the interpretation of these Measures.
Article　36 These Measures shall come in force as of the date　of　their
promulgation.