Regulations of Shandong Province on the Administration of Qingdao Bonded Zone

Chapter I General Provisions Article 1 These Regulations are formulated in accordance with the relevant provisions of national laws and regulations and in light of the actual situation in order to create an investment environment suitable for international practices, strengthen foreign economic and technological cooperation and promote the development of export-oriented economy in Shandong Province. Article 2 The Qingdao Bonded Zone (hereinafter referred to as the Bonded Zone) established with the approval of the State Council is a closed comprehensive open area under the supervision of the customs. Article 3 The Bonded Zone mainly develops foreign trade, entrepot trade, processing trade and high-tech industries, and establishes tertiary industries such as warehousing, transportation, commodity exhibition, commercial retail, finance, insurance, information and real estate. Article 4 Domestic and foreign companies, enterprises and other economic organizations and individuals (hereinafter collectively referred to as investors) may invest and set up companies, enterprises and institutions in the bonded area upon approval. Article 5 Companies, enterprises, other economic organizations, offices (hereinafter referred to as enterprises in the bonded area) or individuals must abide by the laws and regulations of People's Republic of China (PRC) and the relevant provisions of the bonded area, and their legitimate rights and interests are protected by law. Chapter II Management and Service Institutions Article 6 The Qingdao Municipal People's Government shall establish the Bonded Zone Management Committee (hereinafter referred to as the Management Committee), which shall be authorized to conduct unified management of the Bonded Zone and exercise the following functions and powers:

(a) the preparation of bonded area construction and development planning, review by the Qingdao Municipal People's government, the provincial people's government for approval before organizing the implementation;

(2) Formulating and promulgating various administrative regulations of the bonded area;

(three) to formulate the internal structure and staffing plan of the CMC, and report it to the Qingdao Municipal People's Government for approval before implementation, and be responsible for managing the cadres below the middle level of the CMC;

(4) To manage the financial, local tax, industrial and commercial administration, labor and personnel, planning, land, real estate, transportation, environmental protection, public utilities, public security and fire control and other administrative affairs of the bonded area, and assist the customs, state taxation, commodity inspection, health inspection and financial departments in supervising the bonded area;

(five) responsible for the construction and management of public facilities in the bonded area;

(6) Examining and approving investment projects in the bonded area;

(seven) to approve the short-term business trips abroad by the staff of the bonded area management agencies and Chinese personnel of enterprises;

(eight) to manage and supervise the foreign trade, entrepot trade, development and construction and other economic activities in the bonded area;

(9) Other functions and powers granted. Article 7 Companies engaged in construction, investment, service and other businesses, as well as intermediary agencies such as labor service, accounting and law can be established in the bonded area to provide services for enterprises in the area. Chapter III Investment and Management Article 8 An investor who establishes an enterprise in the bonded area shall apply to the Administrative Committee, and after approval, he shall go through the formalities of industrial and commercial registration with the administrative department for industry and commerce with relevant documents and obtain a business license. Article 9 After obtaining a business license, an investor shall go through the registration formalities with the finance, taxation and customs departments respectively within 30 days. Article 10 An investor may obtain the land use right or lease or purchase real estate in the bonded area according to law, and may transfer, lease or mortgage the land use right and the purchased real estate according to law. Article 11 The design scheme of enterprise engineering construction in the area must conform to the relevant provisions of the bonded area construction planning and environmental protection, and be submitted to the administrative committee for examination and filing. Twelfth enterprises in the area have the right to determine their own institutions, staffing and labor remuneration.

Enterprises in the area have the right to decide the form of employment. The employees required by this enterprise can be recruited at home and abroad by themselves, or they can be entrusted to the CMC for unified recruitment. The basic guarantees for employees' wages, labor insurance and labor protection are not lower than the current standards of similar enterprises in economic and technological development zones.

Labor disputes between enterprises and employees shall be settled through consultation, mediation, arbitration and litigation. Article 13 Enterprises in the area can set their own prices for the commodities they produce and operate and the services they provide. Financial accounting business shall be handled in accordance with national financial accounting laws and regulations.

Special account books recognized by the customs shall be established for import and export duty-free and bonded goods. Fourteenth enterprises in the area can shorten the depreciation period of fixed assets after application and approval by the competent department. Fifteenth enterprises in the area to change the name, legal representative, investment content, and migration, merger and transfer in the bonded area, must apply to the original examination and approval authority, and go through the formalities of change or cancellation of registration in accordance with the provisions. Article 16 Enterprises in the area may entrust imported raw materials or semi-finished products to non-bonded enterprises for processing due to special needs, and all the processed products shall be transported back to the bonded area within the time limit stipulated in the contract. Products and materials entering and leaving the bonded area shall be declared to the customs, and the verification procedures shall be handled according to regulations. Chapter IV Trade Administration Article 17 Trade enterprises in the bonded area may engage in foreign trade, entrepot trade, processing trade, exhibition of means of production and trade in import and export commodities.

Commercial institutions established in the bonded area upon approval may engage in wholesale and retail business of commodities. Article 18 Productive enterprises in the bonded area may import the raw materials they need and export their products; Can undertake processing business and product display in the bonded area. Article 19 Unless otherwise stipulated by the state, all goods involved in the administration of import and export licenses are exempted from import and export licenses when they are transported into the bonded area from abroad and from the bonded area to overseas. Transportation from bonded areas to domestic non-bonded areas or from domestic non-bonded areas to bonded areas shall be handled in accordance with the relevant provisions of the state on import and export management.