Implementation Plan for Accelerating the Integration, Optimization and Harmonious Development of Special Customs Surveillance Zones in Yunnan Province
This Plan is formulated for the purpose of implementing the Circular of the General Office of the State Council on Issuing the Proposals for Accelerating the Integration and Optimization of Special Customs Surveillance Zones (G. B. F.  No. 66), actively involving in and adapting to the “new normal” of economic development, pushing forward the integration, optimization, harmonious development of special customs surveillance zones (SCSZs) in Yunnan, and promoting industry transformation and upgrading in SCSZs.
I. General Requirements
Firstly, measures will be taken to steadily push forward the scientific development of SCSZs in Yunnan, so as to realize the reasonable layout, complementary competition, standardized management, convenient clearance, intensive land utilization, industrial agglomeration, outstanding performance, and harmonious development of SCSZs.
Secondly, further improvements will be made in policy formulation, system innovation, function expand and management optimization, thus creating an international environment that is market-oriented according to law, encouraging enterprises in SCSZs to participate in international competition, and building more and better SCSZs.
Thirdly, SCSZs will be encouraged to play a better role in gathering businesses and driving the development of surrounding areas, thereby promoting the transformation and upgrading of processing trade, diversifying the types of businesses in SCSZs, and accelerating the progress of export-oriented economic development and opening up.
(II) General principles
Reasonable layout and harmonious development. Following relevant national strategies, such as the Belt and Road Initiative and Yangtze River Economic Belt plan, SCSZs shall be built for businesses from abroad and eastern coastal areas, according to the economic environments, industrial bases, trade structures, resource distribution and development plans of different regions in Yunnan, so that SCSZs can better serve businesses in different regions.
Quality and efficiency. Resources shall be allocated in a reasonable manner according to the concept of “change of the economic development mode”, and market rules. Internally, the endogenous strength of SCSZs shall be enhanced to promote the technological innovation and eco-friendly development of enterprises in SCSZs, and optimize the industrial structure. Externally, SCSZs shall also drive the economic development of surrounding areas.
Deepened reform and enhanced supervision. SCSZs shall play the role of linking foreign and domestics markets, and integrating resources from both sides, according to the changes in global economic situation. SCSZs shall also make improvements in legal administration, supervision, risk control, administrative (idea, system and method) innovation, service provision, and cost control.
II. Main Tasks
(I) Reasonable planning and layout. The construction of SCSZs will be included in the general economic development and industrial layout plan of Yunnan according to Yunnan’s current economic situation. The locations and functions of SCSZs will be determined from a systematic perspective, for the purpose of making SCSZs important carriers that guide the transformation and upgrading of processing trade, undertake industrial transfer, optimize industrial structure, and push forward economic development. According to Yunnan’s general economic strategies, and the economic environments, industrial bases, trade structures, resource distribution, and development plans of various prefectures and cities, it’s planned to build SCSZs and bonded surveillance areas in cities in central Yunnan, and key cities and prefectures along the three foreign trade corridors of Kunming-Baoshan-Mangshi-Ruili, Kunming-Mohan, and Kunming-Hekou in line with the principle of scientific planning and reasonable layout. Special attentions will be given to the construction of the Kunming free trade zone (KMFTZ), and Honghe free trade zone. At the same time, investigations will be carried out sequentially for the construction of SCSZs in Dehong, Wenshan and Qujing, so that project construction applications can be submitted at the right time. The construction of SCSZs in Yuxi, Lincang and Puer will also be considered.
(II) Strict and standardized construction. SCSZs will be built in strict accordance with general urban development plans, and the principle of “reasonable layout and harmonious development”. The design of SCSZs will give consideration to development zones, industry parks, and key ports with well-established facilities, reasonable layouts, intensive businesses, and standardize management, so as to realize the interaction between SCSZs and such zones and areas. The Kunming Municipal People’s Government will take significant measures to promote the construction of KMFTZ, including carrying out project planning and assessment, building infrastructure, and inviting investors and enterprises. It’s planned to complete the joint pre-inspection on provincial-level projects before December 31, 2016, preparing for the joint inspection by relevant national agencies in February 2017. Kunming Bonded High-tech Logistics Center and Tengjun International Inland Port Bonded Logistics Center are also key projects concerned by the Kunming government. Measures will be taken to accelerate the projects, ensuring smooth acceptance before November 25, 2016. The People’s Government of Honghe Prefecture shall design and build the Honghe free trade zone in pursuance of the principle of “efficient land utilization”, and the “four boundaries” and purpose of land use approved by the State Council. In accepted SCSZs, it’s forbidden to change facilities jointly inspected and accepted by relevant organizations. Strict supervision is required on projects in SCSZs. Plot rates and average investment intensity per mu (1 mu = 0.067 ha.) will be set, and behaviors like enclosure, land waste, land price pushing, and rent pushing are forbidden, so as to improve land utilization efficiency.
(III) Guidance to industry agglomeration. Priority will be given to projects focusing on export processing and bonded business, high-tech industries encouraged by the state, strategic emerging industries, and industry leaders that can attract relevant businesses and drive their development, promoting the development of SCSZs. In this way, competitive businesses will be attracted and gather at SCSZs, driving the development of relevant businesses in and out of SCSZs.
(V) Industrial structure optimization. According to the needs of surrounding and foreign markets, supports will be offered to enterprises in SCSZs in technological innovation and industrial transformation. Supports will also be provided to promote the systematic development of such sectors like sales, settlement, logistics, detection, maintenance, and R&D that serve the manufacturing industry, thus further increasing corresponding market shares. Attention will be paid to export processing projects from eastern China, especially projects related to the further processing of rubber and tea, light industry, mineral exploitation, wood processing, electromechanical devices, household appliances, clothes & accessories, and auto parts assembly. Different policies will be provided to different industries according to their characteristics. Besides, projects related to foreign resources, energy and markets will be tried, for the purpose of bringing new competitive strengths to enterprises in SCSZs.
(V) Business form optimization. Bonded processing, logistics and service are encouraged in SCSZs to realize business diversity, and the use of extra energy in processing projects consigned by China-based enterprises out of SCSZs is also encouraged. Supports will be provided to help enterprises integrate information and resources form home and abroad, and increase innovation capacity and core competitiveness. Efforts will be made to apply for the construction of multi-functional SCSZ pilots, and give the identity of general taxpayers to enterprises in SCSZs. SCSZs will be built into bridges linking China and foreign markets.
(VI) Trade mode optimization. Enterprises in SCSZs are encouraged to undertake maintenance and remanufacturing projects requiring advanced technologies and producing high added value in and out of China. They are also encouraged to expand foreign markets through cross-border e-commerce, especially e-commerce-based import. Business activities like bonded futures delivery, warehouse receipt pledge financing, and finance leases are supported. The construction of bonded exhibition & trade platforms is allowed.
(VII) Enhanced policy promotion. More efforts will be made to promote the preferential policies of SCSZs, attracting more investors and enterprises. Besides, the management mode, applicable laws, regulations and policies, and operating system of SCSZs will be introduced to governments at various levels, foreign trade enterprises, and logistics enterprises, so that they can have a better understanding of SCSZs, and the functional and policy advantages of SCSZs can play a bigger role.
(VIII) Supervision service optimization. A more innovative, flexible and efficient clearance supervision mode will be created. Besides, an interactive clearance network combing all relevant agencies will be built based on upgraded regional information systems, so as to optimize the supervision mode, simplify clearance formalities, improve clearance efficient, and create a better environment for the production and management of enterprises. Relevant policies and measures issued by the national and provincial governments for the development of SCSZs will be seriously implemented. And the regulations of the customs, entry-exit inspection and quarantine departments, foreign exchange administrations, national tax agencies, industry & commence agencies etc. will be strictly followed when providing support and services to enterprises in foreign trade. In this way, standardized management and healthy development of enterprises in SCSZs can be realized.
III. Guarantee Measures
(I) Enhanced financial, tax and land policy supports. Funds will be raised and provided by provincial finance for the construction of SCSZs. According to national policies, interest subsidy on loans of national development zone infrastructure construction projects is available to SCSZ infrastructure construction projects, and high-tech enterprises encouraged by the state may enjoy a 15% cut in corporate income tax. SCSZs are authorized to, through franchising, manage ads on facilities funded by the government, and corresponding income may be used in the construction of projects in SCSZs. Enterprisers in SCSZs may be exempted from administration, registration and licensing fees. In SCSZs, land use for non-profit public infrastructure construction will be allowed unconditionally. For industrial land, the mode of “Lease before Sell” may be adopted, and the rent/unit is 5% of the minimum local industrial land price/unit.
(II) Enhanced financial service. A foreign exchange administration mode suitable for the development of SCSZs in Yunnan will be built, realizing more convenient cross-border trade, investment and financing. Foreign exchange administration formalities related to trade in goods will be simplified. Besides, cross-border RMB audit formalities will also be simplified, and cross-border settlement in RMB will be supported. Qualified enterprises in SCSZs are encouraged to adopt centralized RMB settlement in cross-border trade. All foreign trade enterprises in SCSZs will be categorized as Class A enterprises which are not subject to export collection limits. The entering of financial institutions to SCSZs follows the principle of “centralized application, centralized review, and rapid acceptance”, so as to realize efficient foreign exchange business admission, and system examination & acceptance.
(III) Administration mechanism innovation. SCSZs enjoy the same administration rights given to the management committees of national development zones and high-tech parks. SCSZs shall, in accordance with their actual needs and capacity, put forward matters (to be approved) that agencies directly under the provincial people’s government transfer to them or authorize them to handle, discuss such matters with the agencies, and submit them to the provincial people’s government for approval. In accordance with the principle of “authorized party as supervisor”, agencies directly under the provincial people’s government shall track and supervise the whole process, and provide coordination and other supports. SCSZs shall report results to competent agencies directly under the provincial people’s government for filing. SCSZs are encouraged to actively explore policy and system innovation. Experience and methods that can be copied and promoted may be learned from pilot free trade zones like Shanghai Pilot Free Trade Zone, to build trade supervision systems focusing on convenient trade, innovation financial systems aiming at capital account convertibility and the opening of financial service, and overall supervision (during and after the occurrence of an event) systems emphasizing on the transform of government functions.
(IV) Establishment of an assessment mechanism. The Department of Commerce of Yunnan Province should take the lead in studying and formulating assessment measures for SCSZs in Yunnan as soon as possible, and work with the customs, entry-exit inspection and quarantine department and other relevant departments to conduct daily supervision and annual assessments on the construction and development of all SCSZs through methods which are “easy to be applied, and effective in encouraging enterprises in SCSZ, and promoting the development of SCSZ.
(V) Strengthened implementation of tasks. The Department of Commerce of Yunnan Province should work with relevant departments directly under the provincial people’s government to give business guidance and services, and timely supervise, inspect and follow up the work progress. Relevant departments directly under the provincial people’s government should enhance collaboration and cooperate closely to jointly study and solve the difficulties and problems occurring in the construction and development of all SCSZs in Yunnan. Kunming Municipal People’s Government and People’s Government of Honghe Prefecture should further detail tasks according to this plan and based on the local situations, and promote relevant work in a proactive and steady manner, to achieve concrete results in the integration, optimization, construction and development of SCSZs.