Laws of the People's Republic of China

IMPLEMENTATION RULES FOR THE PROVISIONAL
REGULATIONS OF BEIJING MUNICIPALITY CONCERNING
NEW TECHNOLOGY INDUSTRY DEVELOPMENT ZONE

 (Issued on May 20, 1988 by the Beijing Municipal
People's Government)

 

SUBJECT: SCIENCE & TECHNOLOGY

ISSUING-DEPT: BEIJING MUNICIPALITY

ISSUE-DATE: 05/20/1988

IMPLEMENT-DATE: 05/20/1988

LENGTH: 2750 words

TEXT:

CHAPTER 1.  GENERAL PROVISIONS

[Article 1] These Rules are hereby formulated with a view to implementing "the Provisional Regulations of Beijing Municipality Concerning the New Technology Industry Development Zone" approved by the State Concil.

[Article 2] The New Technology Industry Development Zone shall be centered around Zhongguan Village of the Haidian District, extending eastward to East Qiantun Road of Deqing Highway; westward to Agriculture University Road, Wanquanhe Road, Jinmi Canal, Yuquan Road; northward to West Sanqi Road, East Beiwang Road; and southward to the northern part of Xinkaiqu area.  In addition, a central experimental base for new technology industry shall be established in Yongfong commune of the Haidian District, which shall also be included in the New Technology Industry Development Zone.

[Article 3] The Municipal Science and Technology Commission shall be the competent authority empowered by the Municipal People's Government to handle affairs of the New Technology Industry Development Zone.  The New Technology Industry Development Zone Office shall be the agency of Haidian District People's Government and shall be responsible for handling concrete affairs for the implementation of "the Provisional Regulations of Beijing Municipality Concerning the New Technology Industry Development Zone", these Rules and other regulations concerning the management of the New Technology Industry Development Zone.

[Article 4] The management of the New Technology Industry Development Zone and new technology enterprises located in the zone shall carry out strictly "the Provisional Regulations of Beijing Municipality Concerning the New Technology Industry Development Zone" and these Rules.

Examination and approval of new technology enterprises located in the New Technology Industry Development Zone shall be carried out according to "the Provisional Measures for Examination and Approval of New Technology Enterprises in the New Technology Industry Development Zone".

CHAPTER 2.  CAPITAL CONSTRUCTION

[Article 5] The project proposals and task plans (or feasibility study) for new constructions, expansions, reconstructions and repairs of buildings (including necessary public engineering projects, supplementary buildings and other buildings) constructed with self-raised funds for production and business operation shall be examined and approved by Haidian District People's Government in consultation with other relevant departments and reported to the Municipal Planning Commission for the record.  The investment funds for the construction projects shall be deposited in the Construction Bank and subject to the administration and supervision of the Bank.

The annual capital construction plan for the New Technology Industry Development Zone shall be made by Haidian District People's Government and reported to the Municipal Planning Commission so as to include the plan in the municipal capital construction plan, but not include in investment program.

[Article 6] Haidian District People's Government shall promptly make the detailed plans for the use of land by new technology enterprises in the New Technology Industry Development Zone and for the construction of the central experimental base in consultation with the Municipal Urban Planning and Administration Bureau.  Overall arrangements including water supply, roads, transportation, electricity, communication, heating and gas systems, and shall be amde and shall be carried out upon approval by the Beijing Municipal People's Government.

Before the detailed plan of the New Technology Industry Development Zone is approved, construction projects for new technology enterprises must be examined and approved strictly according to the general plan of urban construction.  Any occupation of vacant land planned for the future construction and urban lawn, as well as occupation of other urban facilities are prohibited.

The Municipal Urban Planning and Administration Bureau shall speed up examination and approval of construction projects for new technology enterprises.  Examination of design proposals shall be completed within 10 day.  Verification and issuance of construction land licence and construction project licence shall be made within 7 days.  Construction projects for the central experimental base shall be examined and approvaed by Haidian district People's Government.

[Article 7] If the various conditions for construction projects are met, the projects for new technology enterprises shall be approved by Haidian District Construction Commission and reported to the Municipal Urban and Rural Construction Commission for the record.  The area of construction projects shall not be included in the Municipal construction plan.  Public tendering and bidding of construction projects shall be carried out by Haidian District Construction Commission under the supervision of the Municipal Construction Commission according to "the Provisional Regulations of Beijing Municipality Governing Tendering and Bidding of Construction Projets".  If construction enterprises are not from Beijing Municipality, the application shall be made by Haidian District Construction Commission to the Municipal Urban and Rural Construction Commission for examination and approval according the regulations of the Municipal Government.

CHAPTER 3.  FINANCE AND TAXATION

[Article 8] From May 20, 1988, construction tax shall be exempted for five years, if buildings are constructed with self-raised funds by new technology enterprises for the purposes of production and operation of technology development.

[Article 9] Instruments and equipment used in development of new technology and new technology products by new technology enterprises may be depreciated at the accelerated rate according to the financial and accounting system of new technology enterprises.  The financial and accounting system of new technology enterprises shall be formulated by the Beijing Municipal Financial Bureau and Tax Bureau in consultation with the Beijing Municipal Science and Technology Commission.

[Article 10] The time period for exemption or reduction of income tax for new technology enterprises shall be calculated in successive manner from the date of receipt of business licence.

Any reorganization or readjustment of new technology enterprises on the original basis (including separation, merger, expansion, movement of business place, change of business scope and name or relationship of administrative subordination) shall not be treated as new enterprises in calculating of the time period for exemption and reduction of income tax.

The matters concerning tax exemption and reduction for new technology enterprises shall be handled by Haidian District Tax Bureau according to the relevant regulations.

[Article 11] New technology enterprises shall establish a separate annual account for the State Assistance Fund and exercise independent accounting for drawing or the use of money saved from reduction or exemption of income tax.  Financial and tax authorities should exercise restrict supervision and control over the use of the State Assistance Fund.

[Article 12] If a new technology enterprise changed or stopped business without authorization, or use the State Assistance Fund in violation of regulations, Haidian District Tax Bureau shall have the right to withdraw the State Assistance Fund and treat it according to Article 13 of these Rules.

Haidian District Tax Bureau should make annual report about the use of the State Assistance Fund to the Municipal Financial Bureau and Tax Bureau at the end of each year.

[Article 13] The amount of taxes to be paid by new technology enterprises shall be based the amount of taxes paid by new technology enterprises in 1987.  The increased amount of taxes shall be returned to Haidian District within five years.  In accordance with the current financial contracting system, Haidian District Financial Bureau shall put various increased taxes paid to the Central Government, Municipal and District Governments together and report the Municipal Financial Bureau for examination and approval.  The increased amount shall be returned to Haidian District Financial Bureau through refunding procedures at the time of final settlement of account at the end of year and shall be used as a special fund for the development and construction of the New Technology Industry Development Zone by Haidian District People's Government.

[Article 14] Any purchase of specially-controlled commodities except automobiles by new technology enterprises shall be examined and approved by Haidian District Office for Controlling Institutional Purchases according to quotas set by Municipal Office for Controlling Institutional Purchases.  Haidian District Office for Controlling Institutional Purchases shall submit a report about its approval of purchases to Municipal Office for Controlling Institutional Purchases for the record at the end of each month.

CHAPTER 4.  LOANS AND INSURANCE

[Article 15] Special loans provided for new technology enterprises shall be used by banks on a re basis.

[Article 16] Upon approval by financial and tax authorities, new technology enterprises may use profits generated from the loan-supported projects to pay principal and interests of loans borrowed from banks, other financial institutions or State-authorized departments prior to the payment of various taxes.

[Article 17] In applying for loans, new technology enterprises shall have their own funds constituting at least 20% of the total amount of their loans.  New technology enterprises should also draw 10 to 20% from the retained profits to supplement their own funds each year.

[Article 18] Special banks shall draw 10 to 15% of the interests revenue of their loans to establish the loan risk funds and deposited in the special accounts.  Upon approval of the municipal special bank, losses of loans shall be disbursed from the loan risk funds by Haidian district offices of the special banks.

[Article 19] Public issuance of bonds by new technology enterprises must be approved by Beijing Branch of the People's Bank of China.  The amount of bonds issued by new technology enterprises shall not be more than the authorized quota.

[Article 20] In accordance with actual necessity, Haidian Branch of Beijing People's Insurance Company may open foreign insurance business in the New Technology Industry Development Zone, increase new types of insurance and also fix floating premium rate by itself.  Upon approval by Beijing Insurance Company, it may also make investment by using its indemnity reserve fund and long-term business reserve fund.

CHAPTER 5.  IMPORT, EXPORT AND FOREIGN EXCHANGE CONTROL

[Article 21] Import licence for raw materials and spare parts imported by new technology enterprises for producing export products shall be waived.  Customs will release goods based on the approval documents issued by the New Technology Industry Development Zone Office.

When new technology enterprises import instruments and equipment which are unable to be produced domestically for the use of new technology development, such instruments and equipment shall be exempt from customs duties and other relevant duties for five years from the promulgation of "the Provisional Regulations of Beijing Municipality Concerning the New Technology Industry Development Zone", subject to customs inspection and verification based on the approval documents issued by the New Technology Industry Development Zone Office and Municipal authorities for examination and approval of imports of machinery and electrical appliances.

Instruments and equipment imported with duty free shall be used only by new technology enterprises which imported such instruments and equipment.  Any misappropriation of the said imports shall prohibited.  Any violation shall be handled according to the Customs regulations.

[Article 22] A new technology enterprise which can generate foreign exchange more than $ 1,000,000 per year shall be granted the right to engage in foreign trade business by the Municipal Foreign Economic Relations and Trade Commission and shall assume sole responsibility for profits and losses, and also fufill plans for export and foreign exchange earnings.  Such new technology enterprise may establish branches outside China upon approval by the Municipal Foreign Economic Relations and Trade Commission.

[Article 23] The foreign exchange shared by the local government according to Article 10 of "the Provisional Regulations of Beijing Municipalit Concerning the New Technology Industry Development Zone" shall be divided between the local government and municipal government at the ratio of 5 : 5.

CHAPTER 6.  LABOUR AND PERSONNEL

[Article 24] Scientific and technical personnel working for administration units, enterprises and institutions initiate, organize, run new technology enterprises or are employed to work for new technology enterprises in the New Technology Industry Development Zone, their original working units shall give them support and make transfer arrangements for them.  If no consent is obtained from the original working units as to the transfer of the above-mentioned scientific and technical personnel, they may propose resignations.  The original working units shall reply within three months after receipt of the resignation.  If no reply is made within the timelimit, the resignations shall become valid and scientific and technical personnel may go through all procedures for the resignations.  Any disputes arising between scientific and technical personnel, and their original working units, an application for arbitration may be made to the authority empowered by the Municipal People's Government.

When those who resigned from their original working units work for new technology enterprises, their previous working years shall be calculated on a cumulative basis, and the relevant procedures shall be formulated by Haidian District Personnel Bureau.  The original employers shall transfer the files of scientific and technical personnel to Haidian District Personnel Bureau within one month after the resignation of the said personnel.

The above paragraph does not apply to scientific and technical persoonel who undertake the State key engineering and research projects, and scientific and technical personnel, and school teachers from the outskirts of the city.

[Article 25] When scientific and technical personnel from enterprises and institutions taking part-time job at new technology enterprises need to use their working hours for the orginal working units, new technology enterprises shall consult with the orginal working units for approval and report Haidian personnel exchange department for the record.

[Article 26] New technology enterprises shall have the right to recruit students graduated from colleges and universities, postgraduate students, students returned overseas and foreign experts, except for those specially trained by the State or by outskirt districts and those engaging in the State key scientific and research projects after studing abroad with support from government.

In recruitment of the above-mentioned personnel, new technology enterprises shall make application to the competent authorities of the said personnel and arrange recruitment procedures, after obtaining consent from the competent authorities.

[Article 27] New technology enterprises may make public recruitment of workers.  The recruitment procedures shall be formulated by Haidian District Labour Bureau.  The transfer of staff members from one enterprise to another may be handled by new technology enterprises themselves.

[Article 28] New technology enterprises may take part in the unified municipal retirement pension program for workers and staff members and may also take part in retirement pension insurance program.

CHAPTER 7.  SUPPLEMENTARY PROVISIONS

[Article 29] Specific questions arising from the implementation of these Rules shall be interpreted by the Science and Technology Commission of Beijing Municipal People's Government or interpreted with relevant competent authorities together.

[Article 30] These Rules shall come into force on May 20, 1988.