Business license reform sees increase in market

Previously the reform only involved 116 approval items but the list has expanded to all of the 548 items at ministry, municipal and district levels. Amid the launch of the reform, all kinds of new market entities in Pudong increased by 17.4 percent in 2016, compared with the end of 2015. After the cancellation of the approval for agencies dealing with private entry and exit business, the number of registered agencies of such kind in Pudong has increased from 10 before the reform to 241 at present. At the same time, the State Council, or China’s cabinet, has decided to promote Pudong’s reform of separating business licenses and administrative approvals in 10 pilot free trade zones around the country. A recent circular by the State Council said that the trial in the 10 zones, including Tianjin, Liaoning, Zhejiang, Fujian, Henan, Hubei, Guangdong, Chongqing, Sichuan and Shaanxi, will last until December 21, 2018. The circular required separating business licenses from affiliated permits, except for permits concerning national security, public safety, ecological safety and public health. For the canceled or separated approvals, the document proposed new management approaches, such as self-discipline management, record filing or an enterprises’ commitment system. Catalogue and procedure of administrative approvals can improve approvals’ transparency and provide standardized services, said the document. Efforts should also be made to urge enterprises to file records and fulfill their promises in accordance with industry standards. The FTZs should strengthen routine regulation aimed at the above management approaches, and speed up sharing of basic information of individuals, enterprises and social organizations, to avoid repeated applications and reviews. Besides, efforts should be made to improve the national credit information sharing platform and national enterprise credit information publicity system. Enterprise-related licenses should be integrated, simplified, or canceled as much as possible, the circular said. The pilot reform was led by provincial-level governments, and the reform plans were submitted to the State Commission Office of Public Sectors Reform before the end of October 2017, according to the circular. The Jinqiao section of China (Shanghai) Pilot Free Trade Zone Apart from the successful experience Pudong made in market access, the Shanghai FTZ in the new area reported an increase of 18,000 enterprises with customs registration since the establishment of the Shanghai FTZ four years ago. Qualcomm Communication Technologies (Shanghai) Co was established last July in Waigaoqiao, as an American multinational semiconductor and telecommunications equipment company — Qualcomm’s only manufacturer in China and one of the Shanghai FTZ’s new settlers with customs registration. “It was a series of reform and innovation initiatives and advanced management concepts of Shanghai Free Trade Zone which attract us to settle down here,” said a senior executive with Qualcomm (Shanghai). At present, the total number of enterprises with customs registration in the Shanghai FTZ has reached 27,000. Most of the newly registered companies are in the bonded areas of Waigaoqiao, Yangshan and Pudong International Airport, while the rest are in Lujiazui, Jinqiao and Zhangjiang. Private companies accounted for 76 percent of them and the rest are foreign invested firms and joint ventures. The newly registered enterprises cover 54 business sectors, while most of them engage in trade and retail. Around 5 percent of them, or more than 1,000 companies, engage in finance, transport, warehousing, postal, leasing and manufacturing, according to Shanghai Customs. Transportation services, terminal business, warehousing services and freight forwarding business all reported double digits growth, while the total industrial output of process manufacturing increased by 5 percent from a year ago. Shanghai Customs canceled administrative approvals in enterprises registration in July 2014 and shortened the entire process from 40 workdays to only three. It also established online and offline channels to better serve enterprises and help them solve problems immediately. An all-in-one counter offers enterprises an inquiry and paperless declaration service. Most enterprises may complete their customs declaration through just one visit. Shanghai became home to China’s first pilot free trade zone in 2013, the test bed of new economic and financial policies, such as the negative list for foreign capital management, which defines sectors in which foreign entities can invest, and the wider convertibility of yuan and its cross border payment. China expects Shanghai to build the city’s free trade zone into a world-class one with liberalized trade and investment, no hidden or opaque rules, fair and efficient supervision, as well as convenient business environment by 2020. The next phase in the Shanghai FTZ development will further relax regulations on commercial transactions and foreign investment. The negative list for foreign investment in the free trade zone will be further shortened and management will comply better with international practices in the finance, foreign exchange, investment, and entry and exit areas. Enterprises within Shanghai FTZ reported more than 30 percent of increase in their total profit, compared with the same period a year ago. Moreover, headquarters economy plays a leading role in the zone. Three more multinational companies’ regional headquarters have been established in the Shanghai FTZ since the beginning of the year, putting the total number within the zone to 81, accounting for 13 percent of the total number around the city or 30 percent in Pudong New Area. More than 320 regional headquarters, Asia-Pacific business centers and business operations centers within the zone reported 18 percent of year-on-year increases in business revenue in the first half.

Hunan New Energy Automobile Industry Innovation and Development Summit Opens

The Hunan New Energy Automobile Industry Innovation and Development Summit was held in Changsha between November 14 and 15. Hunan Vice Governor He Baoxiang attended. The event was Hunan’s first industry-oriented investment attraction conference targeting Fortune Global 500, top 500 Chinese enterprises, and top 500 Chinese private enterprises. It focused on the areas including smart energy, electric vehicles, and artificial intelligence. A series of activities were organized to promote cooperation between Hunan’s new energy automotive industry and Global 500 companies, including Hunan provincial leaders meeting with Global 500 executives, presentation of Hunan’s new energy automotive industry investment environment, new energy automotive industry innovation and development forum, and new energy automobile and parts exhibition. Vice Governor He briefed Hunan’s economic and social development, and highlighted Hunan's unique advantages of developing new energy automotive industry. He said: "We will view the event as an opportunity to further establish a high-quality platform for enterprise exchange and cooperation, and promote more project cooperation.” “This will assist the new energy automotive industry in embracing even more opportunities and more prosperous future, and making new contributions to Hunan’s economic and social development,” he added. A major project signing ceremony was held. A total of 17 projects worth 13.45 billion yuan were contracted. They included new energy built-up automobile, batteries, charging pile, components and parts, and logistics. At the event, 101 investment projects on automobile industry were also announced, with a total investment of 333.62 billion yuan. Of the total, 26 were new energy and electric vehicles projects with a total investment of 105.009 billion yuan.

Innovative policies and special measures for inspection, quarantine and custom clearance

1.To improve the custom clearance efficiency in Nansha New Zone1.1To introduce innovative supervision mode on custom clearance Huge efforts will be made to improve the supervision mechanism on the inspection of import and export goods with focus on strengthened risk management, and explore a new supervision mode on custom clearance, with effective measures on tight supervision for high-risk goods and expedited custom clearance for low-risk goods. Administration of Quality Supervision, Inspection and Quarantine (AQSIQ for short) will continue to implement the direct release and green channel system and offer greater support to export enterprises in Nansha New Zone, thus enhancing the custom clearance efficiency in Nansha New Zone.1.2Strengthened cooperation with port authorities from Hong Kong and Macao AQSIQ will carefully review the tested experience and best practices concerning the inspection and quarantine system for foods and agricultural products ready to be exported to Hong Kong and Macao, strengthen cooperation with port authorities and other stakeholders from Hong Kong and Macao, with special focus on the introduction of RFID and other advanced technologies in the custom clearance process. The purpose is to improve the traceability tracking platform for foods and agricultural products ready to be exported to Hong Kong and Macao, and expedite the handling of custom clearance among Guangdong, Hong Kong and Macao.1.3 To speed up the development of credibility system AQSIQ will further advance the development of credibility system for foreign trade enterprises, reward and punishment system on product quality and the blacklist for non-complying enterprises. AQSIQ will provide greater support to inspection and quarantine authorities in Nansha New Zone to set up a uniformed credibility system, in an effort to create a level playing field environment and to promote the trustworthiness of foreign trade enterprises. In addition, AQSIQ will continue giving support to major export enterprises with excellent credibility record in Nansha New Zone, select more foreign trade enterprises to be awarded with top-class credibility rating, and offer expedited custom clearance and other convenience for these reputable and trustworthy foreign trade enterprises.1.4 To provide greater support on inspection and quarantine AQSIQ will continue to offer guidance and supervision to inspection and quarantine authorities in Nansha New Zone, with special focus on the promotion and publicity of inspection and quarantine policies. AQSIQ will promptly deal with burning issues related to inspection and quarantine procedures, so as to ensure the smooth operation of Nansha New Zone.1.5 To deepen reform on inspection and quarantine In line with the actual condition in Nansha New Zone, AQSIQ will actively carry out pilot reform on inspection and quarantine in Nansha, in an effort to work out an effective and efficient supervision mode on inspection and quarantine. The overall objective is to enhance the innovation capacity, service ability, and power of influence and international competiveness of Nansha New Zone, create an internationally compatible business environment and provide new impetus to further advance the development of Nansha New Zone.2.To support Nansha New Zone in development high-quality life circle among Guangdong, Hong Kong and Macao2.1 To strengthen quality and safety inspection for foods and agricultural products ready to be exported to Hong Kong and Macao AQSIQ will fully support Nansha’s initiative in setting up a demonstration zone for export-based foods and agricultural products, continue to advance the chemical residue monitoring program, surveillance and control system for animal and plant disease, the residual monitoring program for pesticides and veterinary drugs, as well as the overall product quality and safety system. AQSIQ will encourage enterprises in Nansha New Zone to undertake HACCP, GAP, p0ollution-free product certification, green product certification, organic food certification and other food safety related certifications, so as to enhance the food safety level of foods and agricultural products to be exported to Hong Kong and Macao.2.2 To increase the export of foods and agricultural products AQSIQ will further promote the agricultures with distinct Nansha feature and allow more agriculture businesses in Nansha to take part in the aquaculture base program for export-based agricultural products, with special support in areas of base size, management mode and other technical support. In addition, AQSIQ will provide support for exported agricultural products from Nansha to obtain hygienic registrations from foreign countries, as well as Hong Kong and Macao SAR governments. The goal is to increase the export of foods and agricultural products from Nansha New Zone, and to ensure the steady supply of foods and agricultural products to be exported to Hong Kong and Macao.2.3 To support the leisure and coastal tourism industry AQSIQ will fully support Nansha’s new drive to develop the leisure and coastal tourism industry, including the set-up of cruise home port and yacht-dedicated port. AQSIQ will take active measures to facilitate the smooth navigation and parking in Nansha New Zone for yachts from Hong Kong, Macao and other foreign countries, so as to make Nansha New Zone as a world-class center for leisure and tourism industry.3.To support Nansha New Zone in developing modern industrial system3.1 To promote the development of international convention and exhibition industry AQSIQ has issued a detailed policy to facilitate the development of international convention and exhibition industry in Guangdong (Reference no. 2012, 3), with focus on simplified inspection and quarantine approval and filing system for inbound and outbound exhibits. The AQSIQ will take innovative measures to strengthen supervision for the international convention and exhibition industry, allowing the flawless whole process supervision covering exhibits declaration, sampling inspection at designated warehouse and on-site supervision at the exhibition venues. In particular, AQSIQ will provide greater support to Nansha to develop local brands in the areas of high-end consumer goods, advanced equipment, yacht and marine industry.3.2 To support the development of international trading platforms for bulk commodityThe AQSIQ will fully support the development of international factor markets in Nansha New Zone, and provide policy and technical support in the establishment of international trading platforms for petrochemical products, cereal products and other bulk commodities.3.3 To facilitate the development of advanced manufacturing The AQSIQ will speed up the set-up of national key laboratories of mechanized equipment, semiconductor optoelectronic products and energy efficiency testing for energy-using products, and offer greater support to Nansha New Zone to become one of China’s industrial bases for complete technology and equipment, automobile manufacturing bases, modern marine engineering equipment manufacturing bases and new generation IT&T industrial bases. Many effective measures will be in place for the inspection and quarantine process, involving the key assemblies for major equipment, parts, instrument and equipment. And full course follow-up service will also be available covering the procurement of goods, custom clearance and installation and debugging within factories.3.4 To improve the service platforms for inspection and quarantine technologiesBy increasing investment on technology development, the AQSIQ will keep improving the service platforms for inspection and quarantine technologies, with special focus on the improvement of standard information, quality evaluation, technical training, technical support and other inspection related service, so as to provide sufficient enough technical support for Nansha New Zone in its drive to promote industrial upgrading and independent innovation.4.To support the development of international logistics hub in Nansha New Zone4.1 To support the further opening of Nansha New Zone The AQSIQ will fully support the major construction projects and their further opening to the outside world, including the phase three of container wharf in Nansha port, Nansha grain and general wharf, and CSSC Longxue shipbuilding base. In addition, the AQSIQ will support to enlarge the size of current vehicle import port to the entire Nansha Port, improve the inspection and quarantine working mode and encourage Nansha port to conduct procuring domestic goods for export.4.2 To promote information sharing The AQSIQ will strengthen communication and cooperation with transportation authorities with focus on information sharing and much improved convenience for foreign trade and logistics. Nansha New Zone will further advance the development of e-port, allowing all relevant governing units to access the content within the Clearance Sheet of Exit Cargo. Inspection and quarantine units in Nansha New Zone will be encouraged to engage in the e-port construction, so as to promote information sharing and enhance the informatization level for custom clearance service in ports within Nansha New Zone.4.3 To allow special supervision areas to play their active rolesThe AQSIQ will continue to optimize the inspection and quarantine management within Nansha bonded port area, thus improving the bonded logistics service performance. The AQSIQ will help further improve the modern bonded logistics system; in particular, the AQSIQ will provide favorable inspection and quarantine policies to support Nansha New Zone to carry out bonded warehousing, international transit, distribution, procurement, exhibition, leasing, maintenance and other bonded logistics related businesses. AQSIQ will support Nansha New Zone to set up a duty-free shopping area, enhancing the level for international commercial service.5.To strengthen regional cooperation and coordination5.1 To strengthen inspection and quarantine cooperation among Guangdong, Hong Kong and Macao By fully utilizing the cooperation platform of Health, Animal and Plant Quarantine and Food Safety Control Meeting among Guangdong, Hong Kong, Macao, Shenzhen and Zhuhai, the AQSIQ will strengthen cooperation with relevant governing authorities from Hong Kong and Macao, in areas of direct communication and technical cooperation. By steadily advancing the Framework Agreement on Guangdong-Hong Kong Cooperation, Framework Agreement on Guangdong-Macao Cooperation, the Pearl River Delta Development Plan as well as the Closer Economic Partnership Arrangement, the AQSIQ will spare no effort to enhance the competiveness level of the entire region.5.2 To strengthen cooperation among different port authorities The AQSIQ will work together with Hong Kong Health Department to implement the health inspection measures for small-type vessels travelling between Hong Kong and Pearl River Delta region, and ensure the standardized and scientific operation of health inspection for inbound and outbound vessels. The AQSIQ will also strengthen cooperation with health authorities from Hong Kong and Macao, particularly in areas of tropical infectious diseases surveillance, toxicity detection, port control and traceability research, in an effort to improve the early warning system for the outbreak of infectious diseases and the inter-regional mechanisms for joint prevention and control.5.3 To deepen regional inspection and quarantine cooperation The AQSIQ will further promote the inspection and quarantine cooperation within the Pearl River Delta region, so as to improve the fast and efficient coordination among different governing units in this region. The AQSIQ will also encourage Nansha Port to cooperate with Pan-PRD region in setting up dry ports in mainland of China. The pilot reform on inspection and quarantine taking place within the Nansha New Zone will be carefully reviewed, so as to promote the balanced and integrated regional development for the greater PRD region.6.To improve the inspection and quarantine service capacity and support capacity6.1 To improve the inspection and quarantine support capacity The AQSIQ will provide technical support to inspection and quarantine authorities in Nansha to carry out technical standard research in related to new energy, new materials and other key technologies, expedite the research and development on rapid detection methods, engage in the revision of international standards and enhance the technical level of scientific research. The AQSIQ will also provide greater support to Nansha New Zone in the establishment of inspection and quarantine laboratories. In line with the core areas as stipulated in the PRD Development Plan and the actual development need, the AQSIQ will help set up a batch of high-class state-level laboratories, in an effort to meet the actual inspection needs for major inbound and outbound goods in Nansha New Zone.6.2 To improve the efficiency of administrative service The AQSIQ will further promote the standardized operation of inspection and quarantine administrative service windows in Nansha New Zone, with passing rate reaching 100%, and major service windows should become the state-level demonstration windows. A 24-hour appointment system and a “5+2” mode will be introduced in Nansha New Zone. Nansha New Zone will be authorized to deal with exemption of mandatory product certification certificate and on-site health review for exported goods health record, as well as conditional handling of some administrative items, including the filing of the import of used mechanical and electronic products, inspection before shipment for the import of large complete sets of equipment, examination and approval for special biomedical materials and mandatory product certification certificate.6.3 To strengthen the institutional development of inspection and quarantine organizationsThe AQSIQ will fully support inspection and quarantine units in Nansha New Zone to enhance their service guarantee capacity, and provide favorable policies in areas of infrastructure development, law enforcement equipment and budgetary resources. The AQSIQ will work together with local government to communicate with governing authorities in the State Council, in setting up more inspection and quarantine units in Nansha with much enlarged workforce size. The AQSIQ will fully support the set-up of international travel health care center in Nansha, offering convenience for entry-exit personnel to undertake infectious disease surveillance, vaccination and health consultation service for international travelers.1.To support the custom clearance efficiency in Nansha Port Efforts will be made to improve the port supervision mode, and eligible processing enterprises of imported waste paper will be allowed to minimize the open-case inspection at the import port. And an inspection of cargo-worthiness mode featuring collective inspection and releasing in batch will be applied to the containers of perishable foods for export. In addition, a simplified collective inspection mode will be used on the export of aquatic animals. Once these aquatic animals are deemed meeting the inspection and quarantine requirement at the Nansha port, they can be released directly.The application threshold for a green-channel enterprise will be lowered from the original 5 million USD to 1 million USD in terms of annual export value, thus allowing more enterprises within Nansha New Zone to access inspection exemption of exported cargo and other custom clearance convenience.Efforts will be made to optimize the export classification management system, with focus on the development of evaluation system for export-oriented industrial products enterprises, so as to improve the efficiency of inspection and quarantine.Differentiated supervisory measures will be in place for export enterprises applying for expedited custom clearance in line of their rating of credibility, and high-integrity enterprises will be free from an open-case inspection. In addition, Guangdong will offer greater support to large-scale key enterprises and cultivate more enterprises with excellent credibility rating. Plus, each enterprise with excellent credibility rating will access custom clearance convenience that suits their actual needs, in terms of customs declaration, inspection and custom release.A pilot program on custom clearance for inbound and outbound goods will be introduced in Nansha New Zone, with focus on expedited custom clearance and integrated administrative service.2.To support Nansha New Zone in developing high-quality life circle among Guangdong, Hong Kong and MacaoGuangdong will supervise the effective implementation of Import and Export Food Safety Law, the Pesticide Residues in Food Regulation of Hong Kong and other food safety related laws and regulations, explore innovative food safety supervision mechanism for the imported foods. In addition, some food safety pilot programs, including imported food enterprise food safety personnel management system, food safety active reporting management system for imported food enterprises and the storage management system for imported foods at designated place or authorized locations, will be carried out in Nansha New Zone.Guangdong will help Nansha New Zone in setting up the quality and safety demonstration zone for the export-oriented aquatic animals, establish the animal and plant quarantine and pest monitoring system in Nansha New Zone, strengthen risk management and ensure the food safety for agricultural products to be exported into Hong Kong and Macao.By emphasizing the active role of certification system in the improvement of food safety level, Guangdong will encourage enterprises in Nansha New Zone to undertake HACCP, GAP, green product certification, organic food certification and other food safety related certifications, so as to enhance the food safety level of foods and agricultural products to be exported to Hong Kong and Macao.Guangdong will support enterprises within Nansha New Zone to apply for the inspection and quarantine registration of outbound aquatic animals, seedlings and fruits, help enterprises file a record of setting up production base for export foods, and recommend reputable enterprises to register themselves in foreign countries. The goal is to increase the export of foods and agricultural products from Nansha New Zone, and to ensure the steady supply of foods and agricultural products to be exported to Hong Kong and Macao.Guangdong will provide adequate technical support to export enterprises within Nansha New Zone, in areas of site selection, factory layout, workflow design and manpower training, and help enterprises establish a sound safety and sanitation management system and keep improving their quality control system.Guangdong will take telegraphic quarantine and other innovative measures on the declaration of the import and export of yachts, facilitating the smooth navigation and parking in Nansha New Zone for yachts from Hong Kong and Macao. Guangdong will support the establishment of an international cruise home-port in Nansha New Zone, and take innovative measures to facilitate the smooth custom clearance for the entry and exit of vessel.3.To support Nansha New Zone in accelerating the development of modern industrial systemGuangdong will facilitate the development of international convention and exhibition industry in Nansha New Zone, with focus on simplified inspection and quarantine approval and filing system for inbound and outbound exhibits, typically for exhibits involving mandatory product certification. The record filing can be exempted for battery, paint and other exhibits requiring record filing for imports, upon the presentation of Exhibition Participation Letter and letter of guarantee for original import goods to be transported out of China; Labeling in Chinese and sampling inspection will be exempted for prepackaged food, cosmetics and other exhibits that are allowed to be imported to China. Guangdong will provide convenient custom clearance, allowing the flawless whole process supervision covering exhibits declaration, sampling inspection at designated warehouse and on-site supervision at the exhibition venues.Guangdong will support Nansha New Zone in increasing its grain import, help local enterprises apply for quarantine license of imported grain, streamline the inventory management process for imported grain, and supervise enterprises to carry out pest treatment for imported grain. In addition, Guangdong will tighten its risk management system, with focus on the introduction of classification management on the import of dangerous chemicals. Guangdong will also provide policy and technical support in the establishment of international trading platforms for petrochemical products, cereal products and other bulk commodities.Guangdong will keep improving the inspection and quarantine service platform, and link this platform with the e-trading market for bulk commodities in Nansha New Zone, which will help provide accurate information service for both government and concerned enterprises in related to technical barriers to trade in foreign countries and quality data for bulk commodities, and help enhance the overall service level of international trading platform for bulk commodities in Nansha New Zone.Many effective measures will be in place for the inspection and quarantine process, involving the key assemblies for major equipment, parts, instrument and equipment. And full course follow-up service will also be available covering the procurement of goods, custom clearance and installation and debugging within factories. Guangdong will speed up the set-up of national key laboratories of mechanized equipment, semiconductor optoelectronic products and energy efficiency testing for energy-using products as well, thus enhancing the technical support capacity for the advanced manufacturing industry in Nansha New Zone.By increasing investment on technology development, Guangdong will improve the equipment strength of inspection and quarantine laboratory in Nansha New Zone; optimize the service platform for standard and technical regulation and offer training and information for enterprises within Nansha New Zone in related to technical barriers to trade. Eligible enterprises will be selected to serve as TBT workstation, directly engaging in the review of foreign TBT, trade attention and other activities involving rights protection in a foreign country.Guangdong will steadily implement the decision made by Administration of Quality Supervision, Inspection and Quarantine in supporting the setting up an industrial park in Guangzhou High-tech Zone to carry out the pilot reform on inspection and quarantine supervision of biological materials. With the support from the AQSIQ, Guangdong plans to enlarge the size of this industrial park, offer greater custom clearance convenience to key biomedicine enterprises in Nansha New Zone, and promote the healthy development of biomedicine industry in Nansha New Zone.4. To support the development of international logistics hub in Nansha New ZoneGuangdong will continue to provide technical support to enterprises in their dealing with custom clearance process, support the major construction projects and their further opening to the outside world, including the designated port for the import of grain and the designated wharf for the import of agricultural products from Hong Kong and Macao. In addition, Guangdong will support Nansha New Zone in increasing its import of fruits, and accelerate the early opening of major construction projects, such as the Nansha grain and general wharf, CSSC Longxue shipbuilding base and Shazai Island auto dock.Guangdong will support Nansha port to carry out open-market purchase and export business, and help strengthen the supervision mechanism of Nansha port for such activities. In addition, more efforts will be made to improve the inspection and quarantine facilities in the Nansha port, so as to facilitate the healthy development of open-market purchase and export business.Guangdong will strengthen communication and cooperation with transportation authorities with focus on information sharing and much improved convenience for foreign trade and logistics. Nansha New Zone will further advance the development of e-port, allowing all relevant governing units to access the content within the Clearance Sheet of Exit Cargo. Inspection and quarantine units in Nansha New Zone will be encouraged to engage in the e-port construction, so as to promote information sharing and enhance the informatization level for custom clearance service in ports within Nansha New Zone.Guangdong will help Nansha New Zone strengthen cooperation with Guangzhou e-port, allowing the information sharing of inspection and quarantine instruction, custom release, and container shifting and release status. In addition, more efforts will be made to improve the video surveillance system, so as to enhance the informatization level of custom clearance within Nansha port.Huge efforts will be made to improve the supervision mechanism on the inspection of import and export goods with focus on strengthened risk management, and explore a new supervision mode on custom clearance, with effective measures on tight supervision for high-risk goods and expedited custom clearance for low-risk goods. The import of self-used machine, equipment, office supplies made by enterprises within the bonded port area and the import of raw materials and parts made by exported-oriented processing trade enterprises will be exempted from compulsory certificate.Guangdong will continue to optimize the inspection and quarantine management within Nansha bonded port area, with focus on the development of water-and water, land-and-water and water-and-rail coordinated transport and other international cargo distribution business. Guangdong will support Nansha New Zone to carry out bonded warehousing, international transit, distribution, procurement, exhibition, leasing, maintenance and other bonded logistics related businesses, thus making Nansha New Zone a world-class international shipping center.Guangdong will intensify its research on inspection and quarantine policies, give full play of the active roles of inspection and quarantine, and steadily advance the major reform measures being taken in the Nansha New Zone. In particular, Guangdong will support the set-up of duty-free shopping zone and the free trade pilot zone in Nansha New Zone, so as to enhance the openness level of Nansha.5.To strengthen regional cooperation and coordination By fully utilizing the active role of Nansha New Zone in promoting closer cooperation among Guangdong, Hong Kong and Macao, Guangdong will strengthen cooperation with relevant governing authorities from Hong Kong and Macao, in areas of direct communication and technical cooperation. By steadily advancing the Framework Agreement on Guangdong-Hong Kong Cooperation, Framework Agreement on Guangdong-Macao Cooperation and the Closer Economic Partnership Arrangement, Guangdong will deepen cooperation with inspection and quarantine authorities from these two SARs and further promote closer cooperation among these three regions. Guangdong will improve the joint prevention and control mechanism on public health emergency in Nansha port, increase communication and coordination with local health authorities on epidemic situation update, case transfer, vector control and food poisoning. Guangdong will also strengthen cooperation with health authorities from Hong Kong and Macao, particularly in areas of tropical infectious diseases surveillance, in an effort to improve the early warning system for the outbreak of infectious diseases and the inter-regional mechanisms for joint prevention and control.Guangdong will further promote the inspection and quarantine cooperation within the Pearl River Delta region, so as to improve the fast and efficient coordination among different governing units in this region. Guangdong will also encourage Nansha Port to cooperate with Pan-PRD region in setting up dry ports in mainland of China. The pilot reform on inspection and quarantine taking place within the Nansha New Zone will be carefully reviewed, so as to promote the balanced and integrated regional development for the greater PRD region.6.To improve the inspection and quarantine service capacity and support capacity Guangdong will provide technical support to inspection and quarantine authorities in Nansha to carry out inspection and quarantine national standard, professional standards, Guangdong provincial-level standard and technical standard research in related to new energy, new materials and other key technologies. And top priority will be given to such research projects in Nansha to access funding support.Guangdong will also provide greater support to Nansha New Zone in the establishment of inspection and quarantine laboratories, and seek assistance from local government in setting up inspection and quarantine service platform in Nansha New Zone, so as to provide technical and information support for the sound development of Nansha New Zone.Guangdong will further promote the standardized operation of inspection and quarantine administrative service windows in Nansha New Zone, with passing rate reaching 100% by the end of 2013, and service window in Longxue Island should become the state-level demonstration windows. Guangdong will also support inspection and quarantine units in Nansha to enhance their service level, thus creating an internationally-compatible, rule-of-law business environment.A 24-hour appointment system and a “5+2” mode will be introduced in Nansha New Zone. Nansha New Zone will be authorized to deal with exemption of mandatory product certification certificate and on-site health review for exported goods health record, as well as conditional handling of some administrative items, including the filing of the import of used mechanical and electronic products, inspection before shipment for the import of large complete sets of equipment, examination and approval for special biomedical materials and mandatory product certification certificate.Guangdong will fully support inspection and quarantine units in Nansha New Zone to enhance their service guarantee capacity, and provide favorable policies in areas of infrastructure development, law enforcement equipment and budgetary resources. Guangdong will work together with local government to communicate with governing authorities in the State Council, in setting up more inspection and quarantine units in Nansha with much enlarged workforce size. Guangdong will fully support the set-up of international travel health care center in Nansha, offering convenience for entry-exit personnel to undertake infectious disease surveillance, vaccination and health consultation service for international travelers.7 innovative inspection and quarantine measures introduced by the AQSIQ to further advance the development of Free Trade Zone1.Paperless inspection and quarantine clearance 2.Line regulation mechanism for inspection and quarantine 3.Pre-inspection for inbound goods 4.Acceptance of testing results made by a third-party inspection and authentication institution 5.Global service industry supervision 6.Negative inventory management for examination and approval of quarantine inspection for animals and plants and their products 7.Risk management for the entry and exit of biological materials (products) 8.Certificate of Origin for transit goods

Innovative Policies and Preferential Measures Made by China Customs

(I) Support international transit business If the goods aimed for international transmit are approved by the customs to be import declaration, the fee for delayed declaration can be reduced or exempted at time of declaration. Optimize shipping bill and transport tool management system parameter setting, and achieve declaration of shipping bill, cargo handling, loading, release of cargo under international transshipment, as well as automatic cancellation after verification within 24 hours.(II) Support dry port construction Support Guangzhou Port Group to establish dry port in the hinterland, with Nansha harbor as home port, explore how to integrate the custom supervision procedures into enterprise warehouse loading and unloading and other logistics operation, minimize repeated logistics operation, achieve multimodal transport, port retrocession and seamless docking. Allow enterprises to choose custom clearance operation mode according to their own needs, and open Nansha harbor transportation channel.(III) Establish rapid inspection and release mode at the customs Make integrated use of FS6000, H986, individual operating system and other high-tech inspection equipment, superpose “declaration in advance, inspection and release upon cargo arrival” and other custom clearance mode, through deploy and control in advance, transmit the inspection information at first time to port operation department, establish the system of “declaration in advance, split inspection and release at shipside” for goods import, rapid inspection and release mode of “declaration in advance, split inspection and release at custom pass” for goods export, achieve inspection split and supervision, and enhance the overall supervision and custom clearance efficiency of port.(IV) Promote bonded processing business Support the adoption of bonded supervision mode in bonded supervision mode, reduce enterprises’ guarantee fund cost, increase enterprises’ international competitiveness. Carry out selective taxation reform in bonded port area, allow processing enterprises to select customs duties payment according to materials or actual state, reduce enterprises’ domestic sales cost, guide processing trade to centralize in bonded port area, optimize industrial structure in the area, and support domestic and international markets for enterprise expansion.(V) Support bonded logistics business Simplify goods circulation procedures, and use “bonded goods circulation management system”, and allow the enterprises in the zone to make distribution and self-transportation of goods. Gradually achieve efficient and convenient flow of goods between special supervision areas under different customs’ supervision. Establish sea-air linkage customs supervision mechanism between Nansha harbor and Baiyun airport.(VI) Support bonded services business Support the provision of bonded services such as high technical content, high value-added testing maintenance in the market at home and abroad, promote equipment manufacturing industry chain to extend towards high end. Innovate guarantee mode, and support the establishment of bonded trading centers for cultural artifacts and others. Encourage the innovation business of financing lease, support bonded delivery of futures, warehouse receipt financing and other businesses within the special areas under customs supervision.(VII) Promote the construction of Nansha international automobile industry base Implement supporting service measures such as “declaration in advance, rapid appraisal”, and support parallel import business of vehicles. Superpose international transfer, reduction and exemption of fee for delayed declaration, shipping bill distribution, innovate taxation mode, and promote the implement of “imported vehicle taxation upon exit from free trade zone” in Nansha international automobile industry base.(VIII) Support cross-border e-commerce multi-mode operation in Nansha Support the construction of B2C direct purchase and supervision center and B2B2C centralized supervision zone in Nansha. Support the construction of import commodity display and trading platform in special supervision areas, combine cross-border e-commerce and bonded show policy, and implement the “purchase and delivery” experience. Superpose convenient customs policy, provide high-standard customs clearance service in a comprehensive way, assist the introduction of large e-commerce leading enterprises, and build Nansha new zone into a cross-border e-commerce business platform.(IX) Support the construction of international trade “single window” Under the municipal construction coordination mechanism, assist municipal government to develop high-standard construction program, and construct a domestically and internationally leading single window which complies with the actual situation of Guangzhou, enterprises’ appeal, and is practical and effective. With “one-time declaration, one-time check, and one-time release” in customs declaration and inspection cooperation as the breakthrough point, build public platform, take the lead to make breakthrough, and build innovative advantage in trading, investment and financing and shipping center. Take the lead to achieve core functions such as goods import declaration, declaration of inbound and outbound means of transport, and so on. Gradually expand cross-border trade e-commerce, enterprise credit management, declaration of inbound and outbound passengers, import and export license, payment clearing, and other functions, in order to promote smooth cargo delivery and comprehensively enhance the level of trade facilitation. Optimize operation process of port management departments, study the list of “information exchange”, and promote “mutual supervision” and “mutual assistance in law enforcement” based on this.(X) Optimize international business environment Support the construction of social credit system, intensify the cultivation of certification enterprises, full implement the principle of “providing convenience to those enterprises which have good faith and comply with laws, and punishing those enterprises which break faith and violate laws”. General certification enterprises are suitable for convenient measures such as low inspection rate, simplifying the procedures for documents check, giving priority to going through customs clearance formalities, on this basis, advanced certification enterprises are suitable for “AEO mutual recognition” convenient customs clearance and other more measures. Explore the implementation of the most preferential, coordinative management model in enterprises in the zone. Combine cross-border e-commerce, market purchase, foreign trade comprehensive service and other emerging trade forms, innovate supervision mode, support and cultivate foreign trade comprehensive service enterprises, and offer small and medium enterprises in the pan-pearl river delta with custom clearance, financing, tax return, international settlement and other services. Encourage enterprises to set up regional headquarters in free trade zone, and establish operation center with logistics integration, trading and settlement. Support governments to establish government affairs center, and the customs take the lead to offer one-stop services.

Opinions on Speeding up Development and Construction of Hengqin

All governments of prefecture-level cities and above, county (including municipal and district) governments, provincial government departments and directly affiliated organizations:To fully implement The Pearl River Delta Reform and Development Plan 2008-2020 and Framework Agreement on Hong Kong/Guangdong Cooperation, accelerate development of Hengqin, construct a demonstration area with close cooperation between Guangdong, Hong Kong and Macao, propel the reform and opening up of the region in the west bank of Pearl River Delta to a new level, promote the moderate and diversified economic development of Macao and maintain the long-term prosperity and stability of Hong Kong and Macao, the following implementation opinions are put forward here: I. Granting Hengqin partial provincial economic management authority 1. Devolving provincial examination and approval authority (the examination and approval of foreign investment projects, local government investment projects and etc.) to the Administrative Committee of the Hengqin New Area in accordance with the law, projects that need coordination, planning and overall balance of the province and Zhuhai are exceptions. Devolving part of provincial economic management authority including enterprise development, prequalification of land use, planning and development management, enterprise registration, talent introduction, etc., and entrusting the Administrative Committee of the Hengqin New Area to implement them according to the law. 2. For provincial management projects that cannot be entrusted or devolved according to laws and regulations or require the overall balance of the province, the Administration the Committee of Hengqin New Area shall build a direct ratification relationship with the province and inform the Zhuhai municipal people’s government. II. Increasing financial and tax support to Hengqin 3. During the fifth five year plan, the provincial finance shall arrange a special fund of 100 million yuan each year to support the construction of major infrastructure projects in Hengqin. 4. The provincial special fund for port construction shall offer special aid for the construction of facilities and the costs of operation of Hengqin port and separate line management. 5. Collecting the retained portion of taxation and specified cost of Hengqin area within 10 years to set up a provincial finance special fund to support construction and development in Hengqin. 6. Compared with related practices of state support to Hengqin, allocating in a timely manner the retained portion of land use fees that are processed in batches and have been paid in accordance with laws and regulations. 7. The discrepancy between the individual income tax actually paid by Hong Kong and Macao residents working in Hengqin and the resident’s tax liability calculated under the tax laws of Hong Kong and Macao shall be subsidized, and the subsidy funds shall be provided comprehensively by the provincial government. The above subsidies of tax payers are exempted from individual income tax. III. Supporting the creation of the new customs clearance system in Hengqin 8. Speeding up the facility construction of Hengqin port and separate line management, implementing separate line management under the principle of “Relaxed control at the first line, strict control at the second line, separation of people and goods, and categorized management”, and actively complying with the detailed implementation rules and measures on the customs clearance system and new policy of Hengqin. Under the guidance of separate line management of Hengqin customs and the actual demands of 24-hour clearance, we actively support the joint inspection unit of Hengqin to allocate staff the development of Hengqin so as to ensure the normal operation of separate line management. 9. Supporting Hengqin in taking the lead in exploring the implementation of “single window” goods clearance, exploring the use of a unified declaration document in Zhuhai and Macao, promoting the reference and mutual recognition of customs inspection results and unified material format and data model, being the first to apply the all-at-once clearance mode of declaration, examination/inspection and quarantine, and release. Specific measures shall be formulated by the provincial Port Administration Office Guangdong branch of General Administration of Customs and the Administrative Committee of Hengqin New Area. 10. Simplifying the customs clearance procedure in Hengqin for Hong Kong and Macao residents to shorten the time of customs clearance and gradually realizing 24-hour clearance at Hengqin Lotus Bridge Port. Specific measures shall be formulated by related departments of the provincial Port Administration Office and the Administrative Committee of the Hengqin New Area. 11. Formulating and implementing administrative regulations on Macao motor vehicles moving in and out of Hengqin (these motor vehicles are only allowed to drive in Hengqin); trying to make it more convenient for small cars from both Guangdong and Macao to change driver’s licenses. Specific measures shall be formulated by related departments of the provincial Public Security Bureau and the Administrative Committee of Hengqin New Area. IV. Supporting Hengqin in innovating the land management system 12. Innovating land management, and within the authority of examination and approval of provincial government, devolving the revision and adjustment of the overall plan of land utilization of Hengqin county to the Zhuhai municipal people’s government. 13. Implementing a separate land utilization system for the annual planning indicators for Hengqin, and it shall be devolved directly from the Department of Land and Resources to the Administrative Committee of the Hengqin New Area. 14. Supporting Hengqin in conducting scientific sea reclamation in accordance with the law to promote development and construction. V. Supporting Hengqin to develop financial innovation 15. Supporting Guangdong, Hong Kong and Macao in jointly establishing a financial innovation experimental zone in Hengqin and conducting reform and innovation in financial institution admittance, financial market, financial business, financial products, financial supervision, etc. 16. Supporting Hengqin in actively lowering the threshold of the admittance of banks and the security and insurance industries from Hong Kong and Macao through the framework of CEPA. 17. Encouraging the establishment of non-bank financial institutions like trust companies, financial lease companies, financial and consumer financial companies, and currency brokerage companies in Hengqin and attracting international financial institutions to set up backstage service as well as research and development institutions in Hengqin. 18. Supporting the development of multi-currency industrial (stock equity) investment funds and the experiment of multi-currency land trust fund (plan) in Hengqin, and carrying out the business of foreign currency offshore, cross-border RMB settlement and cross-border collateral financing. 19. Exploring the distribution of RMB bonds to enterprises and residents of Hong Kong and Macao in Hengqin, and experimenting with the two-way convertibility of personal RMB, MOP and HK dollar within a certain limit. 20. Exploring the generalization of the multi-currency financial IC card in Hengqin. 21. Speeding up the implementation of RMB offshore service in Hengqin. VI. Supporting the development of scientific and technology innovation in Hengqin 22. Encouraging the construction of a provincial demonstration pilot for industry-university research cooperation in Hengqin, supporting enterprises in Hengqin in setting up a provincial industry-university research innovation union, a provincial industry-university research demonstration base and innovation platform, and striving for the stationing of major innovative platforms in areas such as national and provincial traditional Chinese medicine and cultural creativity, as well as industrial projects in key fields in Hengqin. 23. Provincial major scientific and technology projects shall give priority to enterprises in Hengqin in order to pool efforts to obtain a batch of key technology. 24. Supporting Hengqin in introducing global advanced information and intelligent technology, and accelerating the development of new emerging industries like the Internet of Things and cloud computing. VII. Supporting Hengqin in innovating the enterprise registration system 25. Supporting the pilot work of Hengqin in reforming enterprise registration, and establishing an enterprise registration system where the qualification registration of market players is separate from the permission of business projects and the examination and approval of sites for business operation. Specific measures shall be studied and formulated jointly by the Hengqin New Area Administrative Committee and the Guangdong Provincial Administration for Industry and Commerce. VIII. Supporting Hengqin in constructing a three-dimensional transport network 26. Reinforcing the links among traffic infrastructures in the region, and accelerating the construction of the Second Hengqin Bridge, Jinhai Bridge, the connection to the Hong Kong-Zhuhai-Macao Bridge, the extension of the Guangzhou-Zhuhai intercity railway, the expressway between Jinding and Hengqin, the expressway between Hongwan and southern Hezhou, the branch between Yuehuan and Nanping of Coastal Express Highway in the west of Guangdong Province, etc., so as to strengthen Hengqin’s traffic capacity to connect with territories outside of the island. 27. Perfecting the transportation network within Hengqin Island, and speeding up the construction of Hengqin Port as a comprehensive transportation junction. IX. Supporting Hengqin in building an innovative management mode based on information networks 28. Actively promoting cooperation between inland telecom operators and their counterparts in Macao. Striving for state policy support, pushing forward the integration of fees for communication with Macao, supporting the construction of communication facilities that connect to Macao directly in the Guangdong-Macao industrial park, and adopting more preferential communication fee plans, so as to take the lead in attaining international standards in the field of information. Specific measures shall be studied and formulated jointly by the Guangdong Communication Administration, the Guangdong Economic and Information Commission and other relevant units together with the Hengqin New Area Administrative Committee. X. Supporting the development of the modern service industry of Hengqin 29. Including Hengqin in the provincial central zone of the modern service industry, prioritizing Hengqin when considering the settlement of major projects concerning service industry, and supporting Hengqin in applying for the status of national pilot units related to the service industry and the demonstration district of state service outsourcing. 30. Supporting leading enterprises of the modern service industry in setting up regional headquarters in Hengqin, and foreign-funded enterprises of the service industry located in Hengqin to serve the whole province. 31. Encouraging high-quality education institutions from home and abroad including Hong Kong and Macao to carry out cooperation in the running of schools and conducting vocational education and skill training programs. 32. Accelerating the development of the cultural and creative industry, supporting the establishment of performance agencies by Hong Kong and Macao institutions, building business operation sites featuring performances, entertainment and films, setting up investment funds for the cultural industry and actively developing new media and omnimedia. 33. Supporting Hengqin in probing into businesses including publishing, publication distribution, and copyright trading in the manner of sole proprietorship, as well as cooperation and joint ventures with Hong Kong and Macao institutions under the framework of CEPA, so as to make breakthroughs in fields such as commercial performances, film production, and distribution and projection involving foreign, Hong Kong, and Macao parties. 34. Supporting the mutual recognition of medical insurances between Guangdong and Macao with Hengqin being the pilot unit, allowing the medical testing and inspection centers of Hong Kong and Macao that establish themselves in Hengqin to be deemed as their inland counterpart, and recognizing the testing and inspection reports that conform to relevant regulations of China within the scope of Guangdong province. 35. Pushing forward the construction of the Guangdong-Macao industrial park, upgrading the development of the industries involved, and adopting the mode of joint business attraction to actively import first-rate international cooperation projects. 36. Supporting Hengqin in enhancing tourism cooperation with Hong Kong and Macao, implementing pioneering tourism facilitation measures concerning customs clearance, transportation, payment, etc., carrying out cooperation on talent cultivation and training for the tourism industry, developing the tourism market at home and abroad in collaboration, the joint building of an accessible tourist area, forming a regional tourism brand, and constructing a world-renowned destination for tourism and leisure. XI. Supporting the building of a low-carbon demonstration zone in Hengqin 37. Supporting the development of green communities in Hengqin, constructing the low-carbon demonstration zone, and strictly controlling high-pollution projects. During the “Twelfth Five-Year Plan” period, total quantity control shall be conducted on the pollutant discharges of Hengqin and energy-conservation targets; relevant standards shall be studied and set forth by the Guangdong Provincial Department of Environmental Protection and the Guangdong Economic and Information Commission.38. Designating Hengqin as the demonstration area for smart power grids, promoting the application of new technologies including a distributed energy system, microgrids, and energy storage, and developing experimental units for smart power grid construction.

Thirty Favorable Policies in Seven Categories granted to Nansha New Zone by The Plan for the Development of Guangzhou Nansha New Zone

Fiscal and Tax Policies：1.In light of Nansha New Zone’s functional positioning and industrial development, the Ministry of Finance and the State Administration of Taxation will study and formulate favorable fiscal and tax policies together with other relevant departments to support the development of Nansha New Zone.Financial Policies：2.Chinese government will strengthen financial cooperation among Guangdong, Hong Kong and Macao and prudently pilot financial reform and innovation such as the comprehensive management of the financial industry and foreign exchange management. It will also support Nansha New Zone to pioneer the opening up of domestic financial sector to Hong Kong and Macao capitals.3.Chinese government will support financial institutions from Hong Kong and Macao to establish branches and operate in Nansha New Zone in accordance with favorable policies in CEPA and relevant regulations.4.The state will encourage and support the establishment of new financial institutions engaging in futures transaction, credit insurance, financial leasing and trust investment in Nansha New Zone.5.Chinese government will allow competent agencies from Hong Kong and Macao to set up joint-venture securities companies, joint-venture securities investment consulting companies and joint-venture fund management companies.6.Chinese government will encourage insurance brokers from Hong Kong and Macao to establish solely-owned insurance agencies in Nansha New Zone.Policies facilitating exchanges with Hong Kong and Macao：7.Chinese government will facilitate applications for permits and entry endorsements for commuting between the mainland and Hong Kong and Macao for Nansha residents and mainland residents who invest or work in Nansha New Zone. It will also study the possibility of conducting entry endorsement policy with one year validity and multiple entries for Nansha residents and mainland residents who invest or work in Nansha New Zone.8.Chinese government will facilitate residence permit application for foreign high-caliber personnel. It will also formulate favorable policies including extending duty-free residence period and providing convenient service in entry and exit for foreign talents.9.Chinese government will build Nansha into a world-renowned stop in the route of passenger liners and facilitate the entry and exit of liners and passengers.10.Chinese government will allow ships owned by shipping companies from Hong Kong and Macao and yachts owned by non-Nansha residents to be registered in Nansha New Zone. When the time is ripe, the government will also explore new border check measures for yachts in Guangdong, Hong Kong and Macao.11.Chinese government will relax relevant policies and measures for importing yachts in Nansha New Zone. It will also pilot the yachts insurance system and facilitate the exit and entry of yachts in Guangdong, Hong Kong and Macao.Policies to further open up to the outside world： 12.Chinese government will establish the Guangdong, Hong Kong and Macao Border Check Cooperation and Demonstration Area.13.When the time is ripe, Chinese government will pilot the implementation of hierarchical administration policies in certain areas of Nansha New Zone.14.Chinese government will simplify ship entry and exit procedures between Nansha Port Area and Hong Kong Kwai Chung Container Terminal.15.Chinese government will expand the Guangzhou Port Full-Truck-Load Import Area and Nansha Port Area will be included in the expansion. It will support Nansha Port Area to conduct less-than-truck-load and less-than-container-load export.16.Chinese government will establish Nansha (Guangdong, Hong Kong and Macao) Data Service Experiment Area. It will also allow the offshore data service to be piloted in Nansha New Zone.17.Chinese government will actively guide China Compulsory Certificate (CCC) testing labs within Guangdong to provide service for Hong Kong and Macau companies registered in Nansha New Zone.18.Chinese government will increase the target amount for Guangdong, Hong Kong and Macao through trains in Nansha New Zone.　　　　Land management policies：19. Chinese government will support Nansha New Zone to pilot the land management reform.20.Without undermining the ecological balance in Nansha New Zone, Chinese government will guarantee necessary land supply for the development of Nansha New Zone. The government will adopt the strictest land use policies and control the overall size for construction land use. Moreover, without breaking the rules of the overall urban planning and overall land use planning of Guangzhou, Nansha New Zone may properly determine the size, layout and order of extra construction land use. The size of the fist-phase extra land use will be limited to 60 square kilometers. Nansha New Zone will strictly follow the overall land use planning and construct in accordance with it. Projects requiring extra construction land use shall be submitted to the State Council for approval in accordance with relevant procedures. The state, when making annual land use plans, shall grant proper favorable policies in light of the construction progress of Nansha New Zone.21.Chinese government will pilot regular assessment and in-time revision of overall land use planning. It will also strictly administer its implementation.22.With approval from the State Council, if the adjustment of land use in Nansha New Zone involves the occupation of arable lands and prime croplands, Nansha New Zone shall appropriate at least the same size of land to substitute the occupied ones to ensure that the size of arable land and prime cropland will not decrease and quality be improved.23.Chinese government will support Nansha New Zone to pilot the reform in construction land use review and approval. The pilot scheme will be implemented after getting approval from the Ministry of Land and Resources.24. Without undermining aquatic ecosystem and the capacity of flood discharge and tidal storage in estuary area, Nansha New Zone may, with full scientific verification, properly conduct land reclamation. Nansha New Zone shall use tidal flat resources in a scientific, reasonable and orderly fashion. In accordance with relevant laws and regulations, review and approval procedures for the occupation and use of tidal flats shall be gone through before land reclamation.Marine management policies：25.Chinese government will strictly enforce the Law on Sea Area Management and promote the market-driven distribution of sea area resources. It will also improve the bidding, auction and listing system of the right to use sea area and explore the establishment of a secondary market of the use of sea area.26.Chinese government will conduct Environmental Impact Assessment (EIA) in accordance with the law. It will strictly implement land reclamation plans and coordinate sea islands protection, development and construction without undermining the ecological functions of the costal zones, sea area and the sea. Meanwhile, favorable policies will be granted to major projects which require land reclamation.27.Nansha New Zone will be allowed to apply for the use of sea area in areas which meet the requirements of marine functional division and the overall planning of land use in accordance with relevant policies. Chinese government will optimize application procedures and explore better coordination of sea use management and land use and supply management.Policies for social undertakings and administration and service：28.Chinese government will actively support Nansha New Zone to pilot a state-level innovation scheme of social administration.29.Chinese government will encourage and support Nansha New Zone to experiment international education cooperation. It will explore a new mode of cooperation in running schools among colleges and universities in the mainland, Hong Kong, Macao and foreign countries. Partner colleges and universities will be given a higher degree of freedom in terms of enrollment, course and degree conferment. The state will also support the scheme in degree acknowledgment.30.Service agencies and professional practitioners holding certificates conferred by competent authorities in construction and health care sectors from Hong Kong and Macao will be allowed to operate in Nansha New Zone after filing and getting permission in accordance with relevant provisions in CEPA.