Article 1
These Provisions are formulated to further support the construction of high and new technology industry development zones in our country, and to push forward the development of high and new technology industry.

Article 2
These Provisions shall apply to high and new technology enterprises in the national high and new technology industry development zones, which have been designated pursuant to Conditions and Measures on the Designation of High and New Technology Enterprises in National High and New Technology Industry Development Zones made by the State Science Commission.

Article 3
These Provisions include various preferential policies except those of taxation.

Article 4
Preferential treatment on customs duties concerning the import and export of goods shall be handled as follows:

(1) Import of raw materials and spare parts and components by high and new technology enterprises established in the high and new technology industry development zones for the manufacturing of export products shall be exempted from import license requirement, and the Customs shall clear the goods upon presentation of export contract and approval document of the high and new technology industry development zone.

(2) When approved by the Customs, high and new technology enterprises may set up bonded warehouse or bonded factories in the high and new technology industry development zones. The Customs shall, pursuant to relevant provisions on processing with imported materials, exempt import duty and product tax and value added tax for the import stage based on the actual manufactured and exported volume.

(3) Export products manufactured by the high and new technology enterprises shall be exempted from export duty except for those products whose export are restricted by the State or regulated by other provisions.

(4) If the goods under bonds are to be sold domestically, then approval from the original examination and approval authority and customs' permission must be obtained and duties shall be paid according to the law. For those products that fall into the quota and import license administration by the State, the application for approval of import shall
be submitted and approved and import license shall be applied for.

(5) For instruments and equipment that can not be produced domestically and are needed by the high and new technology enterprises for the development of high and new technologies, import duty shall be exempted by the Customs upon presentation of the approval documents of the examination and approval documents of the examination and approval authority which are examined and verified by th Customs. When the Customs deem necessary, it may set up offices or station supervision and administration group in the high and new technology development zones to administer the import and export of goods.

Article 5
Provisions concerning import and export business.

(1) When approved by MOFERT, technology import and export companies may be established in the high and new technology industry development zones so as to promote he high and new technology industry development zones so as to promote the high and new technology products to enter into international market.

(2) Pursuant to relevant provisions of the State, those high and new technology enterprises that have a good record of conducting import and export business shall be granted rights to engage in foreign trade. When necessitated by business operation and approved by relevant department, high and new technology enterprises may set up branches and subsidiaries abroad.

Article 6
Provisions on funding and credits.

(1) The banks shall provide active support to the high and new technology enterprise, and shall endeavor to arrange funds needed in their development, production and construction.

(2) The banks may arrange the issuance of longterm bonds within certain quota by the high and new technology development zones so as to raise funds from the society and support the development of high and new technology industry.

(3) Relevant departments may establish venture capital funds for development of high and new technology products in the high and new technology industry development zones. In the more matured high and new technology industry development zones, venture capital companies may be set up.

Article 7
Capital construction project for the production and operation of the high and new technology enterprises shall be arranged for construction according to uniform planning, and shall be given priority in having the same included in local fixed asset investment scale.

Article 8
When approved by local people's government, high and new technology enterprises may be exempted from subscribing the bonds for State Key Construction.

Article 9
If all the indicators of the high and new technology products developed by the high and new technology enterprises have reached the level of the imported products of the same kind, and the high and new technology enterprises posses certain production capacity, after the review and determination by the State Science Commission and relevant department, such products shall be controlled pursuant to the existing
import administration measures.

Article 10
New products development by the high and new technology enterprises whose prices are controlled by the State (including the prices fixed by the State and prices guided by the State), the enterprises may fixed the sales promotion prices by themselves and file the same with the price administration department and its superior department in charge within the prescribed sales promotion period, except that the prices of certain type of products shall be determined by the price administrative department. The enterprises may fix the price of those high and new technology products which are not subject to the price control of the State.

Article 11
Instruments and equipment used by the high and new technology enterprises for the development of high and new technology and production of high and new technology products may adopt accelerated depreciation.

Article 12
Provided that the portion to be handed over to central treasury shall not be affected, when approved by local people's government, all taxes and charges paid by the high and new technology enterprises in 1990 shall be used as a base figure. Any additional taxes paid on top of that shall within 5 years be fully refunded to high and new technology industry development zones and shall be used for the construction of development zones.

Article 13
Business and technology personnel of the high and new technology enterprises who make multiple trips abroad shall follow the Guo Ban Fa (1990) No. 9 Document.

Article 14
When arranging employment and recruiting employees, each region and each department shall give prior consideration to the needs of high and new technology enterprises for graduate, post-graduate students and returned Chinese students and exports from abroad.

Article 15
The people's government of each province, autonomous region, municipality or planned separate city where high and new technology industry development zone arrived by the State are situated may adopt detailed implementing measures according to these Provisions.

Article 16
The State Science Commission and relevant department shall conduct periodic inspection to the high and new technology industry development zones. For those national high and new technology industry development zones that are poorly managed or whose progress are sluggish, the applicable preferential policies shall be terminated, or even the status of national high and new technology industry development zone shall be
removed.

Article 17
The State Science Commission and relevant departments shall be responsible for the interpretation of these Provisions.

Article 18
These Provisions shall be implemented from the date of approval by the State council.