Issued by the office of Zhenhai People’s Government in 2005 (NO.9)

Issuing Date: April 25, 2005

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 2005 listed as follows:

I. Optimize the commodity mix and further motivate the export conducted by the enterprise itself

1. Continuously support and reward the exportby the self-operated enterprises which are in the charge of the district government for earning more foreign exchange and stimulate the development of scale economy., If the volume of general export exceeds $10 million a year according to the data concerning export of self-operated enterprises provided by the Customs, every dollar of the sales within the range of the base number (i.e. the factual export of the previous year) is rewarded for 0.005 yuan. Every dollar of the sales that exceeds the base number will be rewarded for 0.015yuan.

2. Encourage the export of high-tech products. Enterprises engaged in the export of high-tech products have a base number of export volumes for reward equal to the figure of the previous year. Every dollar of the sales within the range of the basis 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 expand processing trade

3. District-owned enterprises carrying out the processing trade will receive a reward of 0.05 yuan for every dollar in the added-value of export volume of processing trade (i.e. added value=re-export volume of processing trade-corresponding cost of importing materials)

4. District-owned enterprises importing raw materials verified to be levied on guarantee will be granted an interest bonus of 25 percent per month in proportion to the amount of guarantee.

5. Based on the statistical data provided by the Customs, enterprises boasting export volume between 1 million inclusive and 2 million dollars will be rewarded 20,000 yuan; those between 2 million inclusive and 5 million dollars rewarded for 50,000 yuan, those between 5 million inclusive and 10 million dollars for 100,000 yuan and those of more than 100 millions for 200,000 yuan.

6. Enterprises obtaining the qualification of processing trading company of Type A will be rewarded 20,000 yuan respectively. Those which have realized the supervision and management of Customs by the networking will be rewarded RMB 10,000.

III. Strengthen the promotion of foreign trading and enhance the competitiveness of export products by accelerating the brand creation and certification

7. Offer bonus for the enterprises participating in exhibitions. Enterprises having factual achievements of exporting in 2005 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 10,000 for the reimbursement of the stalls expenses under the condition that they have reported to the District Bureau of Foreign Economic and Trade Cooperation for record in advance. Companies attending Chinese International Nondurable Consumer Goods Fair will get a subsidy of 2000 yuan for each stall.

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 30,000 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. 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

IV. Create favorable conditions to ensure the export of enterprises

10. Stimulate 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 8000 yuan for their services of one enterprise in the district and an extra 0.03 yuan for every dollar of export volume operated by the agency itself.

11. 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 a variety of foreign trade and economic trading concerning accounting, financing, management and processing trade etc. District foreign trade and economic bureau is in charge of carrying out concrete measures.

 12. 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.

 V. Motivate the going-out policy ofenterprises 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 15,000 yuan from the district financial revenue. Those setting up manufacturing companies overseas will be offered a reward of 40,000 yuan. Those which are influential and act as a model for other enterprises with a registered capital of more than 500,000 dollars will be granted a reward of 70,000 yuan once and for all after the realization of overseas registration and operation

 14. Enterprises in the district with a foreign economic and trade cooperation turnover of between 500,000 and 2000,000dollars will be granted a reward of RMB 5000. Those between 2 million and 5 million dollars will be rewarded for RMB 10,000, those between 5 million and 10 million dollars for 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 byZhenhai Government as “the top 10 exporting enterprises for earning foreign exchange through export”. The manager will also be rewarded (for) 10,000 yuan.

VII. Supplementary Articles

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.