At the 7-year's establishment of Tianjin Port Free Trade Zone, the Free Trade Zone's Administrative Committee extends 13 new items of policies and measurres for attracting more investment from both home and aboard, promoting enterprises operating in good condition, speeding-up area development and realizing an economic virtuous circle. Among them 4 items are reaffirmed as follows:

(1)Imported machinery, office equipment and construction materials for enterprise's self-use will be all exempted from customs duty and value-added tax ,free of quota and licenses.

(2)Imported raw and processed materials, spare parts for productive

use in the zone will enjoy duty-bonded, and exempt value-added tax if export after processing. If sale in Chinese market after processing , the customs duty will be paid at the rate of raw materials and spare parts (The processed products should contain local parts). Imported commodities may be stored in the zone and no time limitation, import duty and value-added tax will be paid only when they are delivered to Chinese marked from the zone.

(3) Free Trade Zone's enterprises may open foreign currency account number and retain foreign currency.

(4) Income tax rate of productive enterprises is 15%, meanwhile, they

will enjoy exemption of income tax for the first two years and reduction for another three years from the profit-making year. Then, the exported and advanced technology enterprises still enjoy the rate of 10% income tax accordingly. All other kinds of enterprises will actually pay 15% of income tax, after financial subsidy. Enterprises in the zone can carry out commodity trade free of value-added tax.

* The 5th item is for the cargoes coming into and out of the zone

(5) The cargo imported by enterprises can be transported form unloading ship to Tianjin Port Free Trade Zone, the distribution center of international goods will provide direct collection and delivery of cargoes, door to door service within 4 hours. The service charge is only two-thirds of the others.

* The following 3 items encourage enterprises to carry out developing functions and necessary services.

(6) Enterprises who invest, construct and sponsor or operate special market of international commodities and attract more than 20 market members shall be exempted from regulating taxes of fixed property investment. Income and business taxes of rental and service income within the market shall be returned by administrative finance.

(7) Enterprises in the zone are engaging in public transit and passenger transport, food and drink, medical treatment and health care, commerce and retail, their imported equipment, construction materials, office appliance for self-use will be exempted from tariff and imported value-added taxes. 100% income tax and 50% paid-up business tax or local retained part of value-added tax shall be returned by administrative finance for 3 years from the date of business commencement after the examination and approval of financial bureau.

(8) The Free Trade Zone will set up fund to support the Chinese enterprises who greatly drive the zone's trade and cargo-flow.

* The following 3 items are for enterprises making investment for the zone's development and construction, the more favorable policies and measures shall be given.

(9) If enterprise registered in Tianjin Port Free Trade Zone, completes construction, commerce operation, and occupies land area within 20,000m2 or housing area within 2,000m2, with the approval of Administrative Committee, those who meet with one of the following targets, can enjoy the favorable transfer and rent charges of land and house, or extend the period of payment. Their land use fee and house tax will be exempted within 3 years.

- Annual sale income is RMB20 million;

- Cargo value of coming in and out of the zone is USD10 million;

- Cargo value of import and export is USD5 million;

- Annual tax income is RMB1 million;

(10) The enterprises of the zone will enjoy the same charges level of water, electricity, gas, heating, communication, public transit, and living house as the enterprises in other opening areas of Tianjin.

(11) Enterprises engaged in real estate construct various kinds of installations in the zone, its 50% paid-up business tax and local retained part of value-added tax shall be returned by administrative finance.

* Clarified the preferential treatment for high-tech and civilian enterprises:

(12) Tianjin Port Free Trade Zone will provide the following preferential treatments for the high-tech enterprises.

- Transfer charge of land-use rights will be given preferential price 50%;

- To become a shareholder with high or new technology, the highest rate may reach 35% after evaluation.

- The local retained part of paid up tax shall be wholly returned at the first three years,and 50% from the 4th to the 8th year.

- The zone will set up "Tianbao High-Tech Garden", the high-tech projects in the zone, which are in the "Incubation period", will enjoy naught rental within the first 3 years. The zone authority will appropriate 3% of financial income yearly to be used as hazard fund to support the development of high-tech enterprises.

(13) The zone authority encourages the development of civilian enterprises in the zone, they will enjoy the same treatments as the foreign investment enterprises in the fields as Taxation, getting land-use rights renting plants, and various fee-payment, meanwhile the registered capital of civilian enterprise may be cut down.