(I) Tax policies
1. Unless otherwise specified in relevant laws and regulations, the following goods shall be exempted from import duties and import link taxes by the customs when entering the Kunming free trade zone (KMFTZ) from abroad:
A. Machines and equipment required for the construction of productive infrastructure, and materials required for the construction of production and warehousing facilities in KMFTZ;
B. Machines, equipment, molds and parts (for repair & maintenance) required by enterprises in KMFTZ for production; and
C. Office supplies (reasonable amount) required by enterprises and administrations in KMFTZ;
2. Unless otherwise specified in relevant laws and regulations, goods leaving KMFTZ for foreign destinations shall be exempted from export duties.
3. Goods entering KMFTZ from or leaving KMFTZ for other places shall clear customs in line with relevant import/export regulations and be levied according to the actual status of the goods.
4. Value-added tax levied on water, electricity, gas (steam) consumed by enterprises in KMFTZ to produce exports shall be refunded at applicable export rebate rates specified in existing relevant policies.
5. Goods entering KMFTZ from places within China shall be deemed as exported goods, and taxes on which shall be refunded at applicable export rebate rates specified in existing relevant policies.
6. Goods processed or produced by enterprises in KMFTZ shall be exempted from value-added tax and consumption tax when being exported directly or sold to other enterprises in KMFTZ.