Regulations of Hainan Yangpu Economic Development Zone

Article 1 In order to attract foreign investment to develop Yangpu Economic Development Zone and develop export-oriented economy, these Provisions are formulated in accordance with the principles of relevant laws and regulations of the state and the reality of Hainan and Yangpu Economic Development Zones. Article 2 Yangpu Economic Development Zone (hereinafter referred to as the Development Zone) is located at the southern end of Yangpu Peninsula in Hainan Province, which is a specific area under closed and isolated management.

The development zone implements a more open policy than the bonded zone and adopts more flexible measures in terms of capital, goods and personnel entry and exit. Article 3 The Development Zone shall be dominated by high-tech industries, and develop tertiary industries such as international trade, entrepot trade, ports, warehousing, finance, real estate, transportation and tourism accordingly. Article 4 The land in the Development Zone, including underground resources, buried objects and marine resources in the demarcated adjacent sea areas, belongs to the state.

According to the contract, the land use right of the development zone is transferred to a foreign development enterprise registered in this province for a period of 70 years, which can be renewed at the expiration of the transfer period.

The land sold as stipulated in the preceding paragraph shall be developed by development enterprises in pieces to attract investment. The development enterprise has business relations with the invested enterprise.

The land in the development zone can be developed by a foreign investor or several foreign investors, or by a Sino-foreign joint venture. Article 5 The assets, profits and other lawful rights and interests of investors in the Development Zone shall be protected by state laws.

Legal persons, natural persons and other organizations in the Development Zone must abide by the relevant provisions of China laws and regulations and local regulations of this province. Article 6 The Development Zone shall set up a management organization to implement unified management of the Development Zone and its adjacent waters on behalf of the provincial people's government. Coordinate and supervise the work of institutions established by relevant state departments in the Development Zone. Article 7 The Development Zone shall establish judicial organs and procuratorial organs according to legal procedures, and exercise judicial and procuratorial powers according to law. Article 8 The Development Zone mainly establishes foreign-funded enterprises, Chinese-foreign joint ventures and Chinese-foreign cooperative enterprises (hereinafter referred to as foreign-funded enterprises), and may also establish Chinese-funded enterprises. Article 9 Before applying for a project, an investor may register and set up an enterprise in the Development Zone. Tenth, encourage the establishment of international advanced technology, advanced equipment and advanced management projects in development zones, and encourage foreign investors to invest in infrastructure and public utilities. It is forbidden to set up projects that seriously pollute the environment and endanger the public interests of the state and society in the development zone. Article 11 Foreign-invested enterprises and domestic-funded enterprises with the right to operate foreign trade in the Development Zone can act as agents for international trade, entrepot trade, entrepot trade and import and export business. Other enterprises in the development zone can engage in entrepot trade, entrepot trade and import and export business related to their production and operation. Article 12 Chinese-foreign joint ventures are allowed to build and operate port terminals, and wholly foreign-owned enterprises are allowed to build and operate enterprise-specific terminals, provided that they all conform to the overall layout plan of Yangpu Port and obey the unified management of the Bureau of Port and Shipping. Thirteenth enterprises in the development zone shall enjoy the autonomy of operation and management according to law.

Enterprises have the right to decide their own organizational setup, staffing, product prices, wages and income distribution of employees, and independently recruit or dismiss employees at home and abroad.

Enterprises implement the labor contract system, social security system and legal minimum wage system. Article 14 The development and utilization of underground resources (including groundwater), buried objects and marine resources in the sea area adjacent to the Development Zone shall be approved by the management institution of the Development Zone or the relevant competent department of the state. Fifteenth allow the land use right of the development zone to be transferred, leased or mortgaged according to law, or as a condition of joint venture and cooperation. Article 16 The overall planning for the development and construction of development zones shall be compiled by development enterprises and implemented after the approval of the provincial people's government.

The development, utilization and construction of land in the Development Zone shall conform to the overall planning of development and construction of the Development Zone. Seventeenth enterprises and individuals in the development zone shall pay taxes according to law. Article 18 Enterprises in the Development Zone shall be exempted from local income tax. Enterprises enjoy preferential tax reduction and exemption according to the provisions of the state and Hainan Special Economic Zone. Unless otherwise stipulated by the state, products produced by enterprises are exempted from product tax or value-added tax when they are sold in the development zone market. Article 19 Goods, articles and means of transport entering the Development Zone from abroad are exempt from import licenses; Unless otherwise stipulated by the state, import tax, product tax and value-added tax shall be exempted. Article 20 The products produced by enterprises in the Development Zone are transported out of the country, and the goods transported out of the country are exempt from customs duties; Except as otherwise provided by the state, product tax or value-added tax and export license shall be exempted. Twenty-first development zone goods shipped to other parts of Hainan Island, according to the preferential provisions given by the state to Hainan Special Economic Zone; Shipped to other inland areas, according to the relevant provisions of the customs. Twenty-second non-development zone goods into the development zone, according to the relevant provisions of the customs. However, building materials, construction machinery and other daily necessities provided for the development of the development zone must be approved by the customs and subject to customs supervision. Article 23 Goods, means of transport, personal articles and postal articles entering and leaving the Development Zone must be subject to customs supervision and inspection, and shall be handled in accordance with the relevant provisions of the Customs on entering and leaving the Development Zone.

Articles prohibited by the state from entering or leaving the country shall not enter or leave the Development Zone.