Issuing date: March 23, 2004

Township governments, sub-district offices and their subordinate units

To whom it may concern

In order to adapt to the new situation of economic development home and abroad and deal with the rigorous challenges brought forth by the reform of Export Tax Rebate system to foreign trade of our district, with the overall aim of steady growth of foreign trade and sustained, rapid and sound development of regional economy, we hereby formulate certain opinions on the promotion of foreign trade and economic development in 2004 listed as follows:

I.optimize the export commodity mix and encourage the export of key commodity

1. We should continue to support and encourage the export of products manufactured by the self-operated enterprises for earning more foreign exchange and develop enterprises with a larger scale. The reward to the concerning enterprises has a base number for export volume exactly the same as the figure of the previous year. As for those of more than 500,000 dollars, the enterprises receive a reward of 0.015 yuan for every dollar within the range of base number. As for export volume of more than 5 million dollars, every dollar of those beyond the base number will be rewarded 0.02 yuan. Those between 5 million and 10 million dollars, every dollar of the figure will be rewarded 0.025 yuan and those of more than 10 million dollars 0.03 yuan.

2. Encourage the export of high-tech products. Enterprises engaged in the export of high-tech products have a base number of export performances for reward equal to the figure of the previous year. Every dollar of the sales within the range of the base number will be rewarded in the way mentioned in Article 1. As for those exceeding the base number, every one dollar will get an extra reward of 0.02 yuan.

II. Adjust the trade mode and encourage the enterprises to open up international market

3. Encourage the enterprises to carry out processing trade. Enterprises engaged in the processing of supplied materials will obtain an extra reward of 0.02 yuan.

4. Stimulate the development of foreign trading agencies. District- owned export enterprises of various types engaged in export agency will receive a reward of 0.05 yuan for every one dollar of export amount of agency.

5、Innovate the trading mode and popularize E-business actively. Enterprises participating in the online trade fair of export products or establishing websites of them will be granted a reward of no more than 30 percent in proportion to cover the establishing fees of enterprise websites, the maximum of which should not exceed 30,000 yuan.Those which have received the development fund of international market benefited by the small and medium sized enterprises are not allowed to get the repetitive reward.

6. Encourage the development of foreign trade intermediary services agencies. As the incubator of going-out enterprise, the foreign trading agencies should assist the enterprises to acquire the power of trading. The agency will be rewarded 10,000 yuan for their services of one enterprise in the district and an extra 0.05 yuan for every dollar of export volume operated by the agency itself.

7. Offer bonus for the enterprises participating in exhibitions. Enterprises having factual achievements of exporting in 2004 will receive a reward of 10,000 yuan for one-time participation in overseas exhibition. Those taking part in Guangzhou Trade Fair voluntarily will be granted 15,000 for the reimbursement of the stall expenses under the condition that they have reported to the District Bureau of Foreign Economic and Trade Cooperation for record in advance. Enterprises will get a reward of 15,000 yuan for one-time participation of the trade fair of newly emerging market such as Eastern Europe, Middle East, Africa, South Africa South America and so on, which organized by the city or the district. 50 percent of the stall expenses can be reimbursed for the enterprises attending grand national fairs other than Guangzhou Trade Fair and East China Trade Fair (including China Kunming Export Commodities Fair, China Urumqi Foreign Economic Relations and Trade Fair, China Harbin Trade Fair Meeting, China Dalian Export Commodities Fair, Tianjin Export Commodities Fair, and Chinese nondurable Consumer Goods Fair) with the maximum of 5000 yuan.

III. Enhance the competitiveness of export products by accelerating the brand creation and certification

8. Encourage the enterprise to start approving of various kinds of certifications. Enterprises obtaining self-supporting factual achievements in exporting in 2005 will be provided a bonus of 8000 yuan for having passed the certification of quality management system and environmental management system in 2005. As for the certification of products, 30% of the certified fees will be covered with a maximum of 50,000 yuan. Those which have received the development fund of international market enjoyed by the small and medium sized enterprises are not allowed to get the repetitive reward. The certification of quality management system and environmental management system should be carried out by the organizations authorized by China National Accreditation Committee for Quality Control.

9. Encourage the exporting companies to register trade mark overseas. A reward of 3000 yuan will be granted for one registration of trademark overseas. Transnational registration of trademarks performed according to the Madrid Agreement for International Registration of Trade Marks in more than 5 countries will be rewarded 5000 yuan.

IV. Create favorable conditions to ensure the export of enterprises

10. In order to further open up the international market and take the initiative to deal with new situations after China’s entry into WTO, a fund of 350,000 yuan will be appropriated by the district financial revenue for such activities as the support of developing newly international market by enterprises, the legal activities dealing with anti-dumping and trade barriers of various types as lawsuits, and foreign trade and economic talent trainingDistrict foreign trade and economic bureau is in charge of carrying out concrete measures.

11. Encourage enterprises in the district to cover for export credit.  Self-operated enterprises of export will be rewarded for 40% of insurance premium upon the receipt of the invoices provided by the insurance company.

12. The self-operated exporting companies can take 0.5 % of theexport amount as export risks funds for the expansion of earning more foreign exchanges. Foreign trade purchasing companiescan take 0.5 % fund according to the standard from the export amount.

V. Motivate the going-out policy of enterprises and open up new areas for foreign economic and trade cooperation

 13、Enterprises authorized for the establishment of overseas window and trading companies will be rewarded a lump-sum of 20,000 yuan from the district financial revenue. Those setting up manufacturing companies overseas will be offered a reward of 60,000 yuan. Those which are influential and act as a model for other enterprises with a registered capital of more than 500,000 yuan will be granted a reward of 100,000 yuan once and for all after the realization of overseas registration and operation

 14. Enterprises in the district with a foreign contracting project turnover of between 500,000 and 2000,000 dollarswill be granted a reward of RMB 5000. Those between 2 million and 5 million dollars will be rewarded RMB 10,000, those between 5 million and 10 million dollarsfor RMB 200,000 and more than 10 million dollars for RMB 300, 000.

 VI. Implement the Support-the-strong Measures and cultivate enterprises of scale

15. The self-operated enterprises with export volume ranking the front of similar enterprises and an increase of more than 15 percent will be honored by Zhenhai Government as “the top 10 exporting enterprises for earning foreign exchange through export”. The manager will also be rewarded 10,000 yuan.

As for the above mentioned preferential policies, trading import and export companies purchasing products produced outside the district are excluded from the stipulations of Article 1 and 2