Lianyungang Export-processing Zone is approved by
the State Department on March 10th, 2003. Located in the
planning area of the national level Lianyungang Economic
and Technological Development Zone, to the south it is
only a road away from the administrative center of
Lianyungang Economic and Technological Development Zone,
to the north it leans against Lianyungang Near Port
Industrial Zone, to the east it is 5 kilometers away
from Lianyungang Port, to the west is the national 4A
level scenery district-Huaguoshan Scenery District. 310
national highway, Longhai railway and Xulian highway
pass through the zone. In July 2003, it passed the joint
acceptance check by the General Administration of
Customs and other related national ministries and
commissions and is formally enclosed for operation.
II. Layout & Construction
The total planning area of Lianyungang
Export-processing zone is 3 sq.km., which is divided
into the east and the west district with the east
Longhai railway and Lianxu highway as their boundaries.
The east district (the start district) is 0.7 sq.km. in
acreage. The start district is perfectly equipped with
all the facilities like road, water supply, drainage,
sewage, power supply, steam supply, communications,
broad band, cable television, etc. as well as modern
standard workshops, which makes it an ideal investment
location for processing trade enterprises.
III. Quick Transit
Lianyungang Export-processing Zone is established
under the approval of the State Department. It is a
special economic area under enclosed administration by
the customs house, which improved the traditional
supervision mode of the processing trade, simplified the
current administration procedures, practiced domestic
outside customs management and adopted a 24-hour transit
service-the new transit mode of "one declaration, one
authorization and one check". Compared with the
traditional supervision mode, this supervision mode has
much more advantages:
1. On the measures of supervision, it strengthens
the application of modern communications technology and
computer network technology, uses electronic data
transmission to link up supervision between customs and
gradually replaces the traditional supervision mode;
2. On the administration of the zone, it strengthens
the overall supervision of the zone and simplifies the
one-by-one enterprise administration;
3. On the operation supervision of the processing
trade, it intensifies the overall supervision of the
enterprises' processing trade operation in the zone and
simplifies the one-by-one contract administration;
4. On the supervision of the transit cargoes, it
intensifies the actual supervision of the bayonet when
the cargoes are in and out of the processing zone,
simplifies the procedures for transit and gradually
meets the demand of modern multinational enterprise's
zero inventory production.
IV. Differences between the Export-processing Zone
and the Outside Area
Item
Inside the Zone
Outside the Zone
Foreign Exchange
Administration
Settlement of exchange
system is not implemented (cancellation
after verification procedures of export
remittance and import payment are not
transacted).
Settlement of exchange
system is implemented (cancellation after
verification procedures are transacted).
Inspection & Quarantine
Inspection and quarantine
are conducted inside the processing zone.
Inspection and quarantine
are conducted at the port.
Quota & License
Administration
Except for additional
national provisions and passive quota, quota
and license administration are not
implemented on merchandise purchases and
shipment between the processing zone and the
outside area.
Normal quota and license
administration.
Customs Supervision
Bank Guaranty Funds
Machine account system of
the bank guaranty funds is not implemented,
and the contract record is only subject to
the examination and approval by the
Administration Committee, thus the procedure
is simplified to one department and one
procedure.
Machine account system of
the bank guaranty funds is implemented, and
the contract record is subject to for
departments-the Foreign Economic and Trade
Department, the tax department, the customs
and the bank-and thirteen procedures.
Register Manual
Register Manual is cancelled
and replaced by electronic ledger
management.
Register Manual management
is adopted with various procedures like
contract marking, fake-proof label pasting,
Register Manual release, etc.
Transit Mode
The new transit mode of "one
declaration, one authorization and one
check" in the customs of the processing zone
is adopted for the import and export of
cargoes.
Customs declaration at other
places or transfer customs transportation is
adopted for the import and export of
cargoes, which is complicated in procedures.
Take the depositary at different places as
an example, it involves many procedures like
transmission of supervision customs contract
from different places, port customs
declaration, etc.
Material Cancellation After
Verification
Register system is adopted
and the computer does rolling cancellation
after verification every half a year with
high efficiency.
Imports and exports are
based on processing trade contracts, which
need to be cancelled after verification
(manual cancellation after verification,
which is trivial and with low efficiency.
Every contract takes about 60 days to get
cancelled after verification and many
expired contracts cannot be cancelled timely
because of procedures like bill withdrawal.
Contract Change
Procedures for contract
change are more simplified, which can be
transacted directly.
Procedures for contract
change are more trivial, which must be
transacted at the corresponding departments
according to the contract record procedures.
Management Methods
Complete enclosure and
bayonet management is adopted in the
export-processing zone with the customs
implementing a 24-hour work system.
Open management is adopted
for separate processing trade outside the
zone with the customs implementing an 8-hour
work system.
Protective Trade Material
Transfer
Semi-manufactured goods and
raw materials inside the zone can be freely
transferred and transacted.
For sale of the protective
trade materials in domestic markets, tax
evaded must be paid.
Taxes
Import Tariff & Import
Procedure Tax
Import tariff and import
procedure tax are exempted (imports of
machinery, equipment and mould for
production; repair parts; machinery and
equipment for infrastructure construction;
capital construction material; office
supplies for self-use.)
Taxation in accordance with
the regulation.
Protective Tariff
Protective tariff for
imported material (raw material, spare
parts, parts of apparatus, wrapping material
and consumable material for processing
export products enjoy full sum protective
tariff).
Machine account management
of bank guaranty fund is implemented.
Drawback
Drawback entering the zone
(cargoes export from enterprises outside the
zone in China to the zone enjoy related
national benefit of export reimbursement for
value-added tax; domestically produced
machinery, equipment, raw material, spare
parts, parts of apparatus, wrapping material
and a sensible amount of construction
material from the outside to the zone can
get drawback in accordance with exports;
water, electricity and gas for processing
production of enterprises in the zone enjoy
tax reimbursement policy).
Domestic raw material and
processed products cannot make tax
reimbursement until the products actually
leaves the country.
Taxation
Cargoes that the enterprises
sell to domestic areas outside the zone are
levied taxes as finished products.
All the cargoes for sale in
domestic markets are levied taxes according
to the imported raw materials in the
finished products.
Value-added Tax &
Consumption Tax
Processed and produced
cargoes in the processing zone and taxable
service are exempted from value-added tax
and consumption tax.
Taxation in accordance with
the regulation.
Enterprise Income Tax
Productive foreign
investment enterprises in the zone are
exempted from income tax for the first two
years since the profit-making year, are
levied only half of the income tax from the
third to the fifth year, and enjoy aid from
the "Scientific Development Fund" equal to
50% of their income tax paid. Other
enterprises can enjoy aid from the
"Scientific Development Fund" equal to 50%
of their income tax paid in the same year.
Enterprise income tax is
imposed in accordance with the regulation.
Both Lianyungang Economic and Technological
Development Zone and Lianyungang Export
Processing Zone enjoy the same policy for
enterprise income tax.
V. Investment Guides
Export processing projects that make
high demands on port and transportation, particularly
those of large volume and long distance;
Processing enterprises that make high
demands on transit speed, particularly those with
foreign order forms;
Head enterprises for products exports;
Enterprises with zero inventory demand
and those adopting the Internet order methods;
R&D centers that need to import new
apparatus and equipment.
Except for the arrangements for export processing
enterprises, Lianyungang Export Processing Zone also
arranges for storage and transportation enterprises that
are in service of export processing enterprises. In the
meantime, Lianyungang Export Processing Zone gives the
glad hand to Chinese and foreign traveling merchants to
invest and establish other industries encouraged and
allowed by the Chinese government.
The development objectives of Lianyungang Export
Processing Zone are as follows: by taking full
advantages of the preferential policies offered by the
government, it will bring into play its function
radiation effect and realize healthy and standard
management of its production and processing enterprises,
and bring into shape an export processing industry base
with high production value, high added value, high
proportion of scientific and technological content and
high profit in foreign exchange.
VI. General Purpose Workshop
Category
Methods
Price
Workshops
Rent
12 Yuan/sq.m*month
VII. Investment Service
Inspection and quarantine stations are set up in the
administrative service district in the export processing
zone, which are for on-the-spot inspection and
quarantine check, harm removal supervision and green
light. Furthermore, other service institutions like
taxation, industry and commerce, bank, foreign trade,
transportation, customs declaration, etc. are all
established in the zone, which enables the settling
enterprises to complete all the import and export
procedures in the zone.
As an institution assigned by the Lianyungang
municipal government, the Administration Committee in
the export processing zone carefully executes the
national open policy, brings into play the advantage of
the combination of the port and the zone, optimizes the
investment environment, provides for investors
comprehensive, high quality and high efficiency service
and tries to establish the zone as one that connects
with the international market and operates under
international practices.
Lianyungang
Export-processing Zone 
The total planning area of Lianyungang
Export-processing zone is 3 sq.km., which is divided
into the east and the west district with the east
Longhai railway and Lianxu highway as their boundaries.
The east district (the start district) is 0.7 sq.km. in
acreage. The start district is perfectly equipped with
all the facilities like road, water supply, drainage,
sewage, power supply, steam supply, communications,
broad band, cable television, etc. as well as modern
standard workshops, which makes it an ideal investment
location for processing trade enterprises.