Ningbo Tax-free Zone was approved by the State Council in 1994. It covers an area of 2.3 square kilometers and is mainly made up of Beilun Harbor and an economic and technological development zone. In the zone, goods can go in and out freely, foreign currencies can be remitted and converted freely, and people can enter and leave freely, which have made it a free trade zone in accordance with international conventions.
The zone would offer the following preferential policies:
Taxes are exempted for those enterprises in the zone who import equipment, office facilities, production fuel and machine for their own use; Enterprises who are engaged in processing are allowed not to set standing books.
Except for the products forbidden by Chinese government, enterprises in the zone can import and export without applying for import and export licenses and are exempted from tariff and the value-added tax emerging in exporting.
Productive enterprises in the zone can be exempted from the value-added tax in course of producing; Enterprises first buy materials from abroad and then export processed goods made of these materials can deal with export procedures as normal and can get export drawback.
Enterprises in the zone can make use of their advanced equipment and technologies to process goods at the request of those enterprises outside the zone. Enterprises in the zone can be engaged in export, entrepot trade, processing trade and trading of tax-free materials.
Upon approval, enterprises in the zone can be involved in leasing and providing technologies for domestic enterprises.
Enterprises are encouraged to deal in tax-free materials. Goods imported from abroad are exempted from tax and they can be sold on domestic market. Enterprises in the zone can keep their foreign currencies and can carry out a turnover of them.
Enterprises in the zone may enjoy a 15% reduction of income tax. Productive enterprises may exempt from tax for the first two profit-making years and may enjoy a 50% reduction for the third, fourth and fifth years.
Productive enterprises in the zone which have invested more than one million yuan in infrastructure construction can be given back 50% to 80% of the total sales tax and income tax emerging in producing for two years after they started in operation.