Written Reply of the State Council on Relevant Policies for the Development of Hengqin New Area
03 19, 2015 Source: The State Council of the People's Republic of China
People’s Government of Guangdong Province, Government of Macao Special Administrative Region, Development and Reform Commission,
Your request for instructions regarding relevant policies for the development of Hengqin, Zhuhai, has been received. We hereby reply as follows:
I. We authorize the preferential policies implemented in Hengqin, Zhuhai, to be more favorable than those in special economic zones, so as to speed up the development of Hengqin, to establish a new platform for close cooperation among Guangdong, Hong Kong and Macao, to cultivate new advantages for the development of Zhuhai, promote the moderate and diversified economic development of Macao, and maintain the long-term prosperity and stability of Hong Kong and Macao.
II. Customs clearance system and measures shall be innovated. First line management shall be carried out for the port between Hengqin and Macao, and second line management shall be implemented between Hengqin and the mainland. Separate line management shall be conducted in accordance with the principle of “l Relaxed control at the first line, strict control at the second line, separation of people and goods, and categorized management”. Hengqin shall be authorized for personnel habitation and the construction of commercial facilities for household consumption, and develop businesses including retail merchandising, the tourism and leisure industry, commercial services, financial services, cultural and creative industries, traditional Chinese medicine health care, scientific research, education and development, and other high-technology industries. No fence barriers shall be placed around Hengqin Island; rather, the island shall be patrolled and monitored to ensure effective supervision. The inspection of persons traveling between Hengqin and Macao shall be managed according to existing management standards, while more convenient customs clearance procedures for Macao residents moving in and out of Hengqin are studied. The Ministry of Finance and the General Administration of Customs with the cooperation of concerned organizations shall formulate specific provisions and regulations for customs clearance concerning luggage carried by travelers from abroad who enter Hengqin through the first line and enter the inland through the second line.
III. Tax policies implemented in Hengqin shall be as follows:
1. Production-related goods entering Hengqin from outside China shall be reported for records administration and shall be subject to duty-free or customs bond treatment, except for goods imported for household consumption and commercial projects of real estate development and other items that are not to be exempt from taxes or bonded as expressly stipulated by administrative laws and regulations and relevant provisions. Goods entering the mainland from Hengqin shall be subject to import customs clearance formalities according to relevant provisions and are subject to taxation according to inspection results; duty-paid goods for household consumption at the first line are excluded. Production-related goods sold to Hengqin from the inland shall be regarded as export goods and receive tax rebates as stated by relevant provisions, unless the goods are domestic commodities for household consumption, commercial projects for real estate development, or items that are not to be exempt from taxes as expressly stipulated by administrative laws and regulations and relevant provisions. Enterprises in Hengqin which sell duty-free or bonded goods (including goods produced using duty-free or bonded materials) to individuals shall make up the corresponding import taxes according to relevant provisions regarding the imported goods. Specific lists of commodities to be subject to taxes at the first line and commodities to be subject to taxes at the second line shall be formulated jointly by the Ministry of Finance and the General Administration of Customs along with organizations concerned.
2. Goods which are produced and processed by enterprises established in Hengqin and sold to the mainland through the second line shall be subject to additional tax at the stage of importation and a consumption tax according to regulations. According to enterprise applications, the policy for the levy and collection of tariffs based on the corresponding imported materials or actual inspection status shall be put into trial use for the goods sold on the domestic market, and such a policy shall be formally put into implementation after a time in operation and upon continuous improvement. Detailed operation methods shall be put forth by the General Administration of Customs jointly with the Ministry of Finance, the Development and Reform Commission, and the Ministry of Commerce.
3. Goods traded between enterprises of Hengqin shall be exempt from value added tax and consumption tax. Specific policy measures and operation methods shall be set by the Ministry of Finance and the General Administration of Customs under consultation with relevant parties.
4. On the basis of formulating control on the admittance of industries and the guidance catalog to preferential treatments, a preferential 15% for enterprise income tax rate is specified for eligible enterprises in Hengqin. Control on the admittance of industries and the guide to preferential treatments shall be formulated by the Development and Reform Commission and the Ministry of Finance in coordination with relevant departments.
5. The tax gap arising from different policies regarding individual income taxes between the mainland and Hong Kong and Macao shall be subsidized by the Guangdong Provincial Government for Hong Kong and Macao residents working in Hengqin for the time being; such subsidies obtained by the taxpayer shall be exempt from individual income tax. The Ministry of Finance shall study the matter with relevant units and work out solutions to preventing double taxation.
IV. We support Guangdong and Macao in jointly developing the industrial park. We support enterprises in the Guangdong-Macao Chinese Medicine Industrial Park of Hengqin in conducting innovative research in the field of traditional Chinese medicine, carrying out measures related to the reform of drug supervision in Guangdong as trial implementation in consideration of the drug supervision capacity of Guangdong province, and authorize the drug supervision department of Guangdong to approve actions including drug registration. Regarding the examination, authentication, and approval for other industries in the Guangdong-Macao Industrial Park, relevant departments under the State Council shall work to develop realistic solutions for the industry concerned as well as specific requirements of related policies.
V. The People’s Government of Guangdong Province shall strengthen leadership and conduct corresponding organization and implementation. Relevant departments of the State Council shall enhance leadership and services to promote the implementation of relevant policy measures and create a favorable environment for the development of Hengqin.
The State Council of the People's Republic of China
July 14, 2011
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