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	STANDARDS AND PROCEDURES FOR EXAMINATION AND APPROVAL FOR THE ESTABLISHMENT OF EXPORT PROCESSING ZONES

	(Notice of the Customs General Administration("CGA"), National Development and Reform Commission("NDRC"), Ministry of Finance, Ministry of Land and Resources, Ministry of Commerce, State Administration of Taxation ("SAT"), State Administration for Industry and Commerce("SAIC"), State Administration of Quality Supervision, Inspection and Quarantine ("SAQSIQ"), and State Administration of Foreign Exchange on Printing and Distributing the Standards and Procedures for Examination and Approval for the Establishment of Export Processing Zones (No. 102 [2004] of the Customs General Administration), April 8, 2004: With a view to regulating the administration on establishing export processing zones, preventing repeated construction, and promoting the healthy development of the export processing zones, and upon the requirements of the State Council, the Customs General Administration has, together with the National Development and Reform Commission, Ministry of Finance, Ministry of Land and Resources, Ministry of Commerce, State Administration of Taxation, State Administration for Industry and Commerce, State Administration of Quality Supervision, Inspection and Quarantine, and State Administration of Foreign Exchange, made research on and formulated the Standards and Procedures for Examination and Approval for the Establishment of Export Processing Zones, which have been approved by the State Council, and are hereby printed and distributed. The various provisions and the starting time for calculating the time limit of the Standards and Procedures for Examination and Approval for the Establishment of Export Processing Zones shall be implemented as of the date of printing and distributing the present Document)


SUBJECT : EXPORT PROCESSING ZONES; ESTABLISHMENT
ISSUING DEPARTMENT : CGA, NDRC, MINISTRY OF FINANCE, MINISTRY OF LAND AND RESOURCES, MINISTRY OF COMMERCE, SAT, SAIC, SAQSIQ
ISSUE DATE : 04/08/2004
IMPLEMENT DATE : 04/08/2004
LENGTH : 1,033 words
TEXT :

In order to regulate the administration on the establishment of export processing zones, prevent repeated construction and earnestly protect and properly use the cultivated land, and to promote the healthy development of export processing zones, we hereby formulate the standards and procedures for examination and approval for the establishment of export processing zones.

I. STANDARDS OF EXAMINATION AND APPROVAL FOR THE ESTABLISHMENT OF EXPORT PROCESSING ZONES

1. The export processing zones shall in principle be established within the development zones at the state level upon approval of the State Council, with only one export processing zone in one development zone.

2. The export processing zones shall adhere to the principle of export-orientation, and the total value of import and export per year in processing trade of the state level development zones, which apply for the establishment of export processing zones, shall reach over one hundred million dollars.

3. Only one export processing zone may be established in principle in the provinces (autonomous regions, or municipalities directly under the Central Government) whose total value of import and export per annum in processing trade is less than 1 billion dollars.

4. Where the annual import and export in processing trade of a province (autonomous region, or municipality directly under the Central Government) totals 1 billion dollars or above, although it has established export processing zones, may, upon the need of the development of processing trade, establish another export processing zone upon approval.

5. Where the annual import and export in processing trade of the export processing zones in all the eastern provinces (municipalities directly under the Central Government) totals 50 million dollars or above after they close the customs to operate, or the annual import and export in processing trade of the export processing zones in all the middle provinces totals 20 million dollars or above after they close the customs to operate; or the annual import and export in processing trade of the export processing zones in the western provinces (autonomous regions, or municipalities directly under the Central Government) totals 10 million dollars or above after they close the customs to operate, they may apply for establishing additional export processing zones or enlarging the areas of the original export processing zones in the corresponding provinces (autonomous regions, or municipalities directly under the Central Government).

6. In case an export processing zone applies for enlarging areas, it shall meet the requirement that the projects have fully occupied the zones, and the land used for the development of the infrastructures and supporting constructions has been fully used, and the enlarged areas shall not exceed 3 square kilometers.

7. An export processing zone shall complete the construction within 2 years from the date of approval and shall apply for being checked and accepted. If it fails to initiate the construction within one year, the Customs General Administration shall ask the relevant provinces (autonomous regions, or municipalities directly under the Central Government) to pay attention to it in writing upon deliberation with the relevant departments. If it still fails to have any progress one year after that, the Customs General Administration shall, together with the relevant departments, report to the State Council to revoke it. And

8. If an export processing zone still has not any investment project three years after it has closed the customs to operate, or although there are investment projects, the annual import and export in the processing trade totaled less than one million dollars, the Customs General Administration shall, together with the relevant departments, ask the relevant provinces (autonomous regions, or municipalities directly under the Central Government) to pay attention to it. If it still cannot meet the requirements one year after that, the Customs General Administration shall, together with the relevant departments, report to the State Council to revoke it.

II. EXAMINATION AND APPROVAL PROCEDURES FOR THE ESTABLISHMENT OF EXPORT PROCESSING ZONES

1.The establishment of an export processing zone or the enlarging of areas of an already established export processing zone, shall correspond with the overall planning for land use of the city where the said processing zones are located. The people's governments of the provinces (autonomous regions or municipalities directly under the Central Government) shall ask the State Council for instructions, and send a copy to the relevant departments of the State Council.

2. The documents for instructions shall state: the necessity and feasibility for the establishment of the export processing zone, the conditions concerning the development of export-oriented economy, the development of processing trade and the infrastructures, whether there are projects entered after the establishment of the export processing zone or after the export processing zone has enlarged its areas, whether the areas selected meet the overall planning for land use, the total use of various land and the structure and the benefit for industrial land use, etc.. At the same time, the planning scheme and choosing of locations (with the drawing attached), areas, and the four destination scopes for the establishment of the export processing zone or its expansion of areas shall be attached, and the commitments of doing a good job for the establishment of an export processing zone or expansion of an export processing zone.

3. The Customs General Administration shall, together with the National Development and Reform Commission, Ministry of Finance, Ministry of Land and Resources, Ministry of Commerce, State Administration of Taxation, State Administration for Industry and Commerce, State Administration of Quality Supervision, Inspection and Quarantine, State Administration of Foreign Exchange, and other relevant departments, make research and put forward opinions on the requests for instructions on establishment of export processing zones, which are reported to the State Council by the people's governments of provinces (autonomous regions, and municipalities directly under the Central Government), and report them to the State Council for examination and approval after signing them together.

4. Upon the examination and approval by the State Council, the Customs General Administration shall notify and guide the relevant provinces (autonomous regions, and municipalities directly under the Central Government) to establish insulation facilities and management organs in the export processing zones. The export processing zones may operate officially after passing the checking and being accepted by the Customs General Administration together with the relevant departments.