China will introduce measures to upgrade its comprehensive bonded zones in line with advanced international standards.

More efforts will be made to facilitate domestic sales by companies in the zones. The general VAT taxpayer will be piloted in the comprehensive bonded zones. Processing and manufacturing companies in the zones will be permitted to undertake outsourced processing businesses from outside the zones of the mainland market. No application for an automatic import license will be required for selling products made in the zones (i.e. cell phones and auto parts) on the domestic market.

Research and development, and innovation will be spurred. All goods and items that companies in the zones import for R&D purposes will be exempted from import licensing, except for those prohibited from border entry. Newly established R&D and processing companies in the zones, once evaluated as having met relevant standards, will immediately be granted the highest credit rating.

Logistics will be facilitated. In the course of corporate production and operation, any eligible item entering the comprehensive bonded zones and the bonded goods in transfer from one zone to another will be exempted from customs clearance procedures. The comprehensive bonded zones in ports that allow whole-vehicle import will be permitted to undertake bonded storage, display and other businesses.

New forms of business will be developed. Companies in the zones will be allowed to undertake high-tech, high-value-added testing, global maintenance and remanufacturing business that meet environmental requirements. International services outsourcing will be supported to boost cross-border trade in services.The policies for retail imports under cross-border e-commerce will be fully adopted in the comprehensive bonded zones in due course. Qualified comprehensive bonded zones will receive support to conduct bonded futures delivery.

These zones will be supported in taking the lead in applying the experience gained in the pilot free trade zones to realize the integrated upgrading of all special customs supervision areas.

Further, company deregistration procedure is to be further simplified.

The announcement shall be published free of charge through the National Enterprise Credit Information Publicity System and the announcement time requirement will be reduced from 45 days to 20 days. It is allowed to re-apply for simple deregistration of the company if it meet the requirement of simple deregistration.

The deregistration procedures of taxation, social security, MOFCOM and customs will also to be simplified. Taxpayers who have not dealt with tax-related matters or have not received invoices or have no tax arrears can be exempted from tax clearance procedures and directly apply for simple tax clearance.

The government will also take effort to set up the online deregistration system. As we know that for Shanghai has been launched via

http://www.sgs.gov.cn/shaic/index_new.html

If you have any question, please contact me.

Mr. Mike Chang

TEL: 0086-21-68868321 / FAX: 0086-21-68868021