Notice of the State Council on Issuing the Framework Plan for China (Zhejiang) Pilot Free Trade Zone

· Document Number：No. 16 [2017] of the State Council

· Area of Law： China (Zhejiang) Pilot Free Trade Zone

· Level of Authority： Regulatory Documents of the State Council

· Date issued：03-15-2017

· Effective Date：03-15-2017

· Status： Effective

· Issuing Authority： State Council

Notice of the State Council on Issuing the Framework Plan for China (Zhejiang) Pilot Free Trade Zone
(No. 16 [2017] of the State Council)
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions of the State Council; and all institutions directly under the State Council:
The Framework Plan for China (Zhejiang) Pilot Free Trade Zone is hereby issued to you for your conscientious implementation.
State Council
March 15, 2017

Framework Plan for China (Zhejiang) Pilot Free Trade Zone
Establishing China (Zhejiang) Pilot Free Trade Zone (hereinafter referred to as "FTZ") is a major decision made by the CPC Central Committee and the State Council and a significant measure to comprehensively deepen reform, expand opening up and improve China's global competitiveness in resource allocation under new conditions. This Framework Plan is developed for the purpose of comprehensively and effectively advancing the building of the FTZ.
I. General requirements
(1) Guiding ideology.
We shall comprehensively implement the spirit of the 18th National Congress of the Communist Party of China ("CPC") and the Third, Fourth, Fifth and Sixth Plenary Sessions of the 18th CPC Central Committee, carry out in depth the spirit of a series of important speeches and new concepts, thoughts and strategies of managing state affairs of General Secretary Xi Jinping, conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, advance the overall layout for "economic, political, cultural, social, and ecological progress" in an overall manner and the Four-Pronged Comprehensive Strategy in a coordinated manner, adhere to the general work principle of seeking progress while keeping performance stable, firmly develop and implement the concept of innovative, coordinated, green, open and shared development, further free our mind, conduct pilot programs, promote reform and development with opening up, play a demonstrating and leading role in promoting commodity trade liberalization under new conditions, make efforts to create a law-based, internationalized and facilitating business environment, explore new pathways and accumulate new experience for comprehensively deepening reforms and expanding opening up, and make use of the positive role as an example and catalyst in serving the whole country.
(2) Strategic orientation.
With institutional innovation as core and the possibility of replication and promotion as basic requirements, the FTZ shall be developed to an important maritime opening up portal demonstration area, international commodity trade liberalization pioneering area and internationally influential resource allocation base.
(3) Development goals.
After around three years' characteristic reform and exploration, a pioneer of free trade port areas where investment and trade facilitation, high-end industrial agglomeration, regulated environment of the rule of law, complete financial services, efficient and convenient supervision, and outstanding radiating and motivating role will be basically realized, whose capability to globally allocate commodities with oil products as core will be appreciably improved, and which will meet international standards shall be preliminarily established.
II. Locations and distributions
(1) Scope of implementation.
The implementation scope of the FTZ is 119.95 square kilometers, consisting of land and relevant sea anchorages, covering three areas: Zhoushan Offshore Island Area of 78.98 square kilometers (including plot two of 3.02 square kilometers of Zhoushan Port Comprehensive Bonded Zone), North Zhoushan Island Area of 15.62 square kilometers (including plot one of 2.83 square kilometers of Zhoushan Port Comprehensive Bonded Zone), and South Zhoushan Island Area of 25.35 square kilometers.
The use of land in FTZ must conform to the laws and regulations on land use, environmental protection and urban and rural planning, the overall planning on land utilization and the requirements as to conserving and intensive use of land; if sea area is involved, the relevant provisions of the Law on the Administration of Sea Areas of the People's Republic of China, the National Major Marine Functional Zoning Plan issued by the State Council, the division of marine functions and the division of offshore marine environment approved by the State Council, and the marine ecology red line system issued by Zhejiang province shall be observed; and if any uninhabited island is involved, the relevant provisions of the Island Protection Law of the People's Republic of China must be abode by.
(2) Division of functions.
Divided based on regional distribution, Zhoushan Offshore Island Area shall mainly build a world class green petrochemical base in Yushan Island, prioritize the development of the storage, transshipment and trade of oil products and other commodities in Shulanghu Island, Huangzeshan Island, Shuangzishan Island, Qushan Island, Xiaoqushan Island and Majishan Island, and focus on the development of bonded fuel-grade oil supply services in sea anchorages; North Zhoushan Island Area shall mainly develop oil products and other commodities trade, bonded fuel-grade oil supply, bonded logistics, storage and manufacturing of equipment supporting petroleum and petrochemical industries, and other industries; and South Zhoushan Island Area shall focus on developing commodity trade, aircraft manufacturing, component logistics, research, development and design, and relevant supporting industries, construct the Zhoushan Aviation Industrial Park, and develop in priority aquatic product trade, marine tourism, sea water utilization, modern trade, financial services, shipping, information consultation, high and new technology, and other industries.
Divided based on the mode of customs supervision, areas under special customs supervision within the FTZ shall make in priority institutional innovations with trade facilitation as major content and focus on international trade, bonded processing, bonded logistics, bonded services and other business; and non-areas under special customs supervision shall mainly explore innovation on the investment system, financial system and other systems and mechanisms and vigorously develop transshipment of commodities with oil products as core, processing trade, bonded fuel-grade oil supply, equipment manufacturing, aircraft manufacturing, international maritime services and other business.
III. Major tasks and measures
(1) Effectively transforming government functions.
i. Deepening the reform of the administrative system. The reform of simplification of administrative procedures, combination of decentralization and control, and optimization of services shall be advanced in depth. A FTZ administration system featuring well-defined powers and responsibilities, efficient management and coordinated operation shall be established. The FTZ administrative power list and responsibility list shall be deepened and improved. The reform of administrative approval system shall be deepened, simplified, efficient and unified administrative approval institutions shall be set up, relatively centralized administrative licensing powers shall be reformed, and relevant administrative licensing powers shall be uniformly exercised in accordance with the law. A unified market access platform shall be built, and international trade "single window" shall be established depending on the public electronic port platform. The reform of the business system shall be deepened, and "integrating certificates into one, and one code for one license" and other measures shall be comprehensively implemented. The reform of the land and maritime comprehensive administrative law enforcement system shall be deepened and improved.
The pilot program of the reform of comprehensive administration of intellectual property rights shall be conducted. Closely centering on the demand of innovative development, the leading role of patents, trademarks, copyrights and other intellectual property rights shall be used, the whole chain from the creation, use, protection, administration to service of intellectual property rights shall be opened up, an efficient comprehensive intellectual property right administration system shall be established, an intellectual property right public service system convenient to and benefiting the people shall be developed, an intellectual property right operation mechanism supporting innovative development shall be explored, and the forming of systems and mechanisms featuring well-defined powers, reasonable division of labor, powers consistent with responsibilities, efficient operation and legal guarantee shall be promoted. A facilitating intellectual property right public service platform shall be built, intellectual property right service working stations shall be set up, and specialized intellectual property right services shall be vigorously developed. A FTZ cross-departmental intellectual property right law enforcement cooperation mechanism shall be explored and developed, and dispute mediation, assistance and arbitration working mechanisms shall be improved. A FTZ key industrial patent navigation system and key industrial quick and coordinated protection mechanism shall be researched and established.
The innovation on tax services shall be promoted, including one window for handing state and local tax, one hall for self-help handling, training and coaching menu, diversity of payment methods, self-help business preservation, interaction between tax and bank information, tax compliance cooperation, innovation on online services and other measures.
ii. Establishing a unified, open market access and high-standard supervision system. An administrative supervision management system adapting to the FTZ shall be developed, and the development of the interim and ex-post supervision system in line with the negative list administration system shall be strengthened. The social credit system shall be improved, and all departments shall be promoted in interconnecting and sharing the information on lawful performance of duties. The mechanisms for encouraging honesty and punishing dishonesty shall be improved. For commercial cases involving investment and trade, among others, in the FTZ, a specialized trial mechanism shall be established. The regulations on and standards for environmental protection shall be strictly implemented. Safety control and guarantee shall be enhanced, regional plans for work safety shall be made, and a FTZ oil product safety control system shall be developed. An emergency response interaction mechanism shall be established and improved, the emergency response rescue forces shall be reinforced, and emergency response guarantee shall be enhanced with all-out efforts. Enterprises shall be encouraged to fulfill social responsibilities and protect employees' rights and interests. Concentrated anti-monopoly review of business operators shall be made in cooperation with the Ministry of Commerce.
iii. Raising the level of using foreign investment. Foreign investment shall be subject to the pre-access national treatment plus negative list system, and an interim and ex-post supervision system adapting to the administration mode of negative lists shall be developed in priority. Foreign investment projects in fields other than those in the special measures for the administration of the access of foreign investment (negative list) (unless the confirmation of domestic investment projects is retained as provided for by the State Council) and the establishment and alteration of foreign-funded enterprises shall be subject to the filing system, for which the Field shall be responsible. The restrictions on the access of foreign investment shall be further reduced or canceled, opening degree and transparency shall be improved, and stress and risk test of opening up shall be effectively made. Overseas funds, advanced technology and high-end talents shall be vigorously and effectively introduced, and the comprehensive quality of using foreign investment shall be raised. Foreign investment in the FTZ shall be governed by the Special Measures for the Administration of the Access of Foreign Investment in the Pilot Free Trade Zones (Negative List) and the Trial Measures for National Security Review of Foreign Investment in the Pilot Free Trade Zones. The administration of the actual controllers of foreign investment shall be explored and enhanced, a foreign investment information report system and a foreign investment information publication platform shall be established, the role of the national enterprise credit information publication system shall be fully used, and the whole-period monitoring of foreign investment shall be made more scientific, regulated and transparent. The mechanism to effectively protect the rights and interests of investors shall be improved, and qualified foreign investors shall be allowed to freely transfer their investment returns.
(2) Promoting investment facilitation and trade liberalization for the whole oil product industrial chain.
iv. Constructing an international maritime service base. International common tax policies shall be referred to, international competitiveness shall be enhanced, and policies and measures promoting the development of the whole oil product industrial chain shall be explored and researched. A bonded fuel-grade oil adding center in Northeast Asia shall be built. The measures of China (Zhejiang) Pilot Free Trade Zone for the administration of bonded oil for international navigation ships shall be developed, and the power to license bonded oil for international navigation ships in the FTZ shall be delegated to the Municipal People's Government of Zhoushan. Bonded fuel-grade oil suppliers shall be attracted to provide oil supply services, enterprise headquarters or settlement centers shall be encouraged to settle down, and market participants shall be diversified. The construction of oil supply ports, storage tanks, adding anchorages and other supporting facilities shall be accelerated, seaborne bonded fuel-grade oil adding areas shall be reasonably distributed, and the establishment of seaborne bonded fuel-grade oil supply warehouses in the FTZ shall be allowed. On the premise of satisfaction of supervision conditions, enterprises registered in the FTZ shall be allowed to mix and blend bonded oil under different duty paragraphs. Oil product enterprises in the FTZ shall be encouraged to produce bonded fuel-grade oil. Cross-customs direct supply of bonded fuel-grade oil shall be allowed. The modes of customs clearance and other services shall be optimized with all-out efforts, the adding of bonded fuel-grade oil shall be included in the "single window" declaration platform, special navigation and customs clearance passages for ships to refuel at port of call shall be opened, and the customs clearance formalities for ships entering and leaving the FTZ to refuel shall be simplified and accelerated, so as to facilitate qualified ships to enter particular sea areas (yards) for refueling.
The expansion of international ship management services shall be accelerated. Foreign ship supply enterprises shall be vigorously fostered and grown, foreign ship supply varieties shall be increased, and ships entering the FTZ shall be provided with daily necessities, spare products and parts, materials, engineering services, agency services and other services. The development of international ship building and repairing in the FTZ shall be accelerated, relevant imported ship parts required by building and repairing in areas under special customs supervision shall be bonded, and the construction of Zhoushan Port ship part market shall be supported.
The functions of international shipping services shall be improved. Shipping systems and operation modes helpful to promote oil products and other commodities trade shall be vigorously explored. Adapting to the need of the development of the FTZ, the FTZ shall be supported in guiding dangerous liquid transportation enterprises in enhancing integration and realizing scale-based and intensive development. Re-exportation shall be vigorously developed, and the standards for determining direct transportation of goods carried by sea shall be relaxed. The regulation mode of coastal carriage business performed by international liners shall be optimized, and the efficiency of customs clearance of coastal carriage business by Chinese-funded Chinese-flag international liners shall be raised. The facilitation of travel by tourism conveyances such as passenger liners and yachts relating to tourism shall be promoted. The development of maritime, financial, law, brokerage and other services pertaining to international shipping shall be vigorously promoted. Domestic and overseas enterprises shall be supported in providing shipping insurance, shipping arbitration, average adjustment, shipping exchange and other high-end shipping services. Maritime insurance and other specialized institutions with legal person status shall be explored and set up, and qualified domestic and overseas insurance agents, insurance brokers, insurance adjusters and other intermediary agencies shall be allowed to build business operation institutions in the FTZ and conduct relevant business in accordance with the law. Maritime arbitral institutions and classification societies shall be attracted to reside, and an international shipping service platform shall be built.
v. Constructing an international oil product storage base. Oil product storage and transport infrastructure shall be improved. The construction of wharves, pipeline networks, oil tanks, underground depots, anchorages, logistics bases and other logistics infrastructures shall be accelerated. With crude oil and refined oil as priorities, embracing global resources, orienting to Asia-Pacific markets, satisfying domestic demand, large oil product storage and transportation bases shall be distributed and developed in Zhoushan Offshore Island Area.
Oil product storage and transportation investment facilitation shall be advanced. Diversified oil product storage and transportation entities shall be fostered, and various entities shall be encouraged to participate in the investment in and construction of oil product discharge berths, storage and transportation tank areas, oil pipelines and other facilities according to international standards. The approval of the use of port shoreline in the FTZ shall be accelerated.
The oil product reserve system shall be improved. With crude oil as major product, gasoline, diesel, aviation kerosene and liquefied gas, among others, shall be vigorously reserved, the products to be reserved shall be scientifically and reasonably determined, new oil product reserve modes shall be explored and innovated on, a reservation system and operation mode integrating national, voluntary, commercial and corporate reservation shall be developed, national reservation shall be allowed to rent oil tanks of qualified private enterprises, and commercial reservation shall be allowed to rent the commercial oil tanks of state-owned enterprises. An available reserved oil emergency response mechanism shall be established.
International cooperation in oil product reservation shall be strengthened. Private oil product reserve depot resources remaining unused shall be revitalized to store oil products for international organizations and transnational oil companies, among others. Joint construction of oil product storage bases together with oil producing countries shall be supported, and the development of Zhoushan international oil product bonded delivery system shall be accelerated.
vi. Establishing an international petrochemical base. A world class petrochemical base shall be built. According to the national strategic distribution, the strictest environmental protection access and supervision measures shall be implemented, and an internationally top petrochemical industry base shall be built in Yushan Island. The base shall be supported in setting refined crude oil as basic products and ethylene, arene and other high-end products as characteristics, improving the industry chain integrating the upstream and downstream products, and accelerating the development of a world class agglomeration of the petrochemical industry.
The opening up of the investment in the oil product processing field shall be expanded. Domestic and overseas investors shall be encouraged to participate in the construction and operation of the petrochemical base with resources, funds, technology and markets. World class petrochemical enterprises and enterprises from petroleum enrichment countries along "One Belt, One Road" shall be allowed to participate in investment and construction.
Supporting industry policies shall be implemented. Crude oil import qualifications and quota and the right to import and use crude oil shall be conferred on qualified oil product processors in the FTZ.
vii. Constructing an international oil product exchange center. Depending on China (Zhejiang) Commodity Exchange Center, spot trading of crude oil, refined oil and bonded fuel-grade oil shall be conducted, and futures-related business shall be conducted when the conditions are mature.
Crude oil, refined oil qualification and quota control (allowed amount) shall be relaxed, and granting crude oil import and use qualifications to two to three qualified enterprises in the FTZ shall be supported. Enterprises in the FTZ shall be supported in vigorously making onshore and offshore oil product trading.
Domestic and overseas crude oil traders shall be gathered to make spot crude oil trading strong, and the development of an internationally influential spot crude oil market shall be accelerated. The establishment of Zhoushan international crude oil bonded delivery center shall be accelerated. Spot crude oil trading at China (Zhejiang) Commodity Exchange Center shall be encouraged.
Domestic and foreign trade networks and trading markets of refined oil shall be vigorously developed. Spot refined oil trading at China (Zhejiang) Commodity Exchange Center shall be supported, and on the basis of expanding spot trading, the FTZ shall be supported in developing delivery, storage and bonding of refined oil. The qualification conditions for refined oil wholesale shall be simplified, domestic refined oil trade and distribution shall be supported, and a domestic refined oil trade and distribution network shall be gradually established.
A Northeast Asian bonded fuel-grade oil trading center shall be constructed. Spot bonded fuel-grade oil trading at China (Zhejiang) Commodity Exchange Center shall be accelerated, and on the basis of expanding spot trading, the FTZ shall be supported in developing delivery, storage and bonding of bonded fuel-grade oil.
Natural gas trading shall be vigorously made. The improvement of the distribution of natural gas supporting pipeline networks, wharves and other infrastructures shall be accelerated, and interconnection of pipeline networks shall be realized.
viii. Accelerating research and development of petroleum and petrochemical science and technology and gathering of talents. Zhoushan shall be vigorously supported in building a national high and new technology industry development zone characterized by petroleum and petrochemical industries, petroleum and petrochemical scientific research and supply of technology services in the FTZ shall be encouraged, and the development of an international petroleum and petrochemical talent training and gathering mechanism shall be accelerated.
(3) Expanding new trade and investment modes.
ix. Building an international ore transit shipment base. Depending on the ore transit shipment wharves on Shulanghu Island and Majishan Island, an international ore blending trade center shall be established to mainly receive and discharge imported ore and provide metallurgy enterprises along the Yangtze River with transit shipment services, and the regional distribution of the ore receipt and discharge system shall be optimized and improved to provide China's coastal regions and East Asia with storage, distribution, processing and delivery services. Depending on China (Zhejiang) Commodity Exchange Center, spot trading and international trade in ore shall be vigorously developed, and a regional ore information center and pricing center shall be established. Bonded storage, processing and export of ore in areas under special customs supervision shall be supported.
x. Building Zhoushan aviation industrial park. Zhoushan aviation industrial park shall be planned and built on Zhujiajian Island, and though final assembly and manufacturing of general aircrafts, the relocated international aviation industry shall be taken over to develop an aviation industrial agglomeration. The pilot program of manufacturing and maintenance of aircraft components shall be conducted on the premise of controllable environmental risks, piloting training, air travel and sightseeing, general aviation base operation services and relevant scientific research institutions shall be vigorously introduced, and high-end, advanced aviation manufacturing, component logistics, research, development and design and supporting industries shall be encouraged to gather in the FTZ.
xi. Strengthening cooperation in modern trade and investment. Depending on the advantages of Hong Kong and Macao in financial services, information, international trade networks, risk management and other aspects, the FTZ shall be developed to a window for mainland enterprises to "head overseas" and comprehensive service platform. The exchange and cooperation with Hong Kong and Macao in program connection, investment expansion, information exchange, talent training and other aspects shall be strengthened, and cooperation in infrastructure construction and energy, among others, shall be jointly made in overseas. According to the principle of fair competition, cross-border e-commerce shall be vigorously developed, corresponding customs supervision, inspection and quarantine, tax rebate, logistics and other supporting systems shall be improved, and the advancement of the construction of the cross-border e-commerce supporting platform shall be accelerated.
(4) Promoting innovation on systems and mechanisms in the financial management field.
xii. Expanding opening up of the financial service field. Eligible Chinese-funded commercial banks shall be allowed to establish branches in the FTZ based on local actual need, according to regulation policies. Foreign-funded banks shall be supported in establishing subsidiaries, branches and specialized institutions in the FTZ. Eligible private capital shall be supported in establishing financial leasing companies and finance companies in accordance with the law, and qualified domestic 100% Chinese-funded private enterprises shall be supported in establishing private banks. Financial leasing companies shall be supported in establishing specialized subsidiaries in the FTZ. The development of commercial factoring business shall be supported, and a foreign exchange administration mode suitable for the development of factoring business shall be explored. Eligible enterprises in the FTZ shall be supported in investing in overseas securities in Chinese currency under relevant provisions. Foreign-funded equity investment management institutions and foreign-funded venture capital management institutions shall be allowed to establish and manage Chinese currency equity investment and venture capital funds in the FTZ. The formalities for the foreign exchange receipts and payments under the current account shall be further simplified, and on the basis of authentic and legal transactions, for class A enterprises subject to disaggregated foreign exchange administration of trade in goods in the FTZ, the opening of accounts for verification for foreign exchange income is not required. The collection of rental in foreign currency for qualified finance lease business in the FTZ shall be allowed. Qualified individuals in the FTZ shall be supported in, according to provisions, making investment on domestic and overseas securities markets. Fund products from the FTZ satisfying conditions for mutual recognition shall be supported in participating in mutual recognition of fund products from Chinese mainland and Hong Kong.
xiii. Expanding financial service functions. The establishment of a domestic and foreign currency account administration system commensurate with FTZ shall be explored so as to promote cross-border trade and investment and financing settlement facilitation. Cross-border settlement business under current account and settlement business under the capital account allowed by policies, relating to trade in oil products, shall be handled for qualified entities in the FTZ. Institution with legal person status established in the FTZ may, based on the need of business operation and management, according to provisions, conduct centralized operation and management of foreign exchange funds of transnational companies and cross-border two-way Chinese currency cash pooling within transnational enterprises and be entitled to remittance facilitation for cross-border investment and financing and other policies. Finance lease companies shall be supported in, depending on the FTZ, conduct innovative cross-border Chinese currency business in the commodity field including pricing and settlement in Chinese currency and cross-border two-way Chinese currency cash pooling. The local governments shall be encouraged to, by introducing private capital, establish various cross-border Chinese currency investment funds in the FTZ, manage them based on places of registration, and make cross-border two-way Chinese currency investment. Trading platforms and exchanges mainly specializing in oil products and other commodities in the FTZ shall be allowed to open special trade accounts at agreed commercial banks deposit commodity trading deposits. The FTZ shall be supported in developing headquarters economy pertaining to trade in oil products, and the access conditions for the centralized operation and administration of foreign currency funds of multinational companies shall be relaxed. Cash pooling management shall be further simplified, and centralized foreign exchange receipt and payment and netting settlement under the current account shall be handed by virtue of authentic and lawful electronic documents verified by banks. The FTZ shall be allowed to set prices and make settlement in dual currencies at the early stage of spot trading in oil products, pricing and settlement in Chinese currency shall be gradually explored, and the process of the internationalization of Chinese currency shall be promoted. Foreign exchange settlement and sale management shall be improved. Domestic and overseas financial institutions, financial technology enterprises and financial information service enterprises shall be allowed to participate in the construction of spot markets for oil product trading in the FTZ. Overseas enterprises shall be gradually allowed to participate in commodity futures trading. The cooperation with international financial institutions and international oil product trade companies shall be strengthened, oil product trade information statistics and monitoring system connecting to international standards shall be vigorously developed, and an oil product trading market risk management system shall be established.
xiv. Vigorously developing finance lease and insurance business. Investors from home and abroad shall be encouraged to set up finance lease enterprises in the FTZ, the pilot program of Chinese-funded finance lease enterprises shall be further advanced, and Chinese-funded finance lease enterprises under the pilot program registered in the FTZ shall be reviewed by the provincial-level competent commerce department and the same-level state taxation bureau in the place of the FTZ; and interim and ex-post supervision shall be strengthened, a filing system of the establishment and alteration of finance lease enterprises, a penalty system of violations of industrial administration provisions, an dishonest and abnormally-operating enterprise publication system, and a system for territorial regulatory departments regularly to make random inspection and examination of enterprises shall be explored and established. Finance lease enterprises shall be supported in establishing special project companies in the FTZ. Based on the need of bonded delivery of futures, the FTZ shall be allowed to expand warehouse warrant pledge financing and other functions, and warehouse warrant right confirmation and other work involved in warehouse warrant pledge financing shall be promoted and improved. The exploration and establishment of specialized insurance companies or branches serving the petroleum industry in the FTZ shall be supported, and insurance brokerage, insurance agency, risk assessment, loss adjustment, legal consultation and other specialized insurance service institutions providing supporting services for the development of the insurance industry shall be established. The ex-ante approval of the qualifications of senior executives of branches in the FTZ of insurance companies to assume offices shall be canceled and replaced by the filing administration by the provincial-level offices of the China Insurance Regulatory Commission in the place of the FTZ. A special risk dispersing mechanism for the petroleum industry shall be innovated on, energy, chemical engineering and other special risk insurance business shall be conducted, and more support of reinsurance shall be given to catastrophe insurance and special risk insurance.
xv. Establishing and improving a financial risk prevention system. The risk-centered principle shall be implemented, a cross-border capital flow risk regulation mechanism shall be explored and established, anti-money laundering, combating financing of terrorism and anti-tax avoidance shall be enhanced, and illegal cross-border, trans-regional capital flows shall be prevented, so as to effectively prevent financial risks in an open environment.
(5) Prompting innovation on systems and mechanisms in the field of customs clearance and supervision.
xvi. Innovating on the mode of customs clearance and supervision services. The customs clearance regulation service mode of "opening up the first tier" and "safely and efficiently controlling the second tier" in areas under special customs supervision in the FTZ shall be implemented. According to the principle of tight prevention of quality safety risks and maximum facilitation, the first tier shall mainly implement on-site entry/exit quarantine, inspection and handling; and the second tier shall mainly enforce inspection, quarantine, supervision and laboratory test of import and export products and ensure quality safety.
On the premise of ensuring effective supervision, a mode for the disaggregated supervision of the status of goods in areas under special customs supervision shall be explored and developed. The import or export of the airplanes, vessels, oceanographic engineering structure or other large equipment by a financial leasing enterprise registered in the area under special customs supervision in the FTZ which involves different customs shall, on the premise of ensuring effective supervision and implementing existing relevant tax policies, be subject to supervision authorized by the customs in a different place based on the actual need of logistics. On the premise of strictly implementing the tax policies for import and export goods, the establishment of bonded exhibition and trading platforms in areas under special customs supervision shall be allowed. The development of standardized systems and specifications of measures for the innovation on trade facilitation shall be accelerated so that all qualified enterprises shall be covered. The customs clearance cooperation mechanism shall be improved, cooperation shall be made in the aspects such as customs clearance of goods, trade statistics, mutual recognition of "authorized economic operators," and inspection, testing and certification, and information exchange, mutual admission of regulation, and mutual assistance in law enforcement shall be gradually realized. The FTZ shall be supported in cooperating and making exchanges with countries along "One Belt, One Road" in customs, inspection and quarantine, certification and accreditation, standard measurement and other aspects, and the cooperation with countries along "One Belt, One Road" in the security and facilitation of trade supply chain shall be explored. Depending on the electronic port public platform, the application functions of import and export of goods and entry and exit of conveyances of international trade "single window" shall be improved. The function of application for export tax refund shall be included in the international trade "single window" building project. The process of port supervision law enforcement and customs clearance shall be further optimized, trade licensing, qualification registration and other platform functions shall be realized, and departments involving trade supervision shall be gradually included in the "single window" administration platform. On the premise of implementing tax policies in force, the comprehensive capacities of customs clearance and transportation of and port services for over-sized and limit-exceeding cargo shall be improved. Customs clearance integration in all areas of the FTZ shall be advanced.
Personnel from home and abroad in the FTZ shall be subject to corresponding convenient and safe control measures. The opening up of Zhoushan Mount Putuo Airport shall be supported. The People's Government of Zhejiang province shall be supported in applying to the State Council for expatriate port visa services at the opening up ports in Zhoushan. A talent visa system shall be implemented in the FTZ. The building of departments and teams of foreign talent affairs shall be strengthened. For high-level foreign talents, green passages shall be opened, effective policies shall be developed, formalities shall be simplified, and entry/exit, work and stay and residence in China shall be facilitated. Excellent foreign students with master's degrees or above shall be allowed to directly work in the FTZ after graduation. Targeted guidance services and chance to learn language shall be provided, and foreign talents shall be helped in various forms and through multiple channels to be integrated in Chinese community.
IV. Guarantee mechanism
(1) Enhancing legal guarantee.
Where the FTZ needs to provisionally adjust the implementation of part provisions of relevant administrative regulations, documents of the State Council, and departmental rules as approved by the State Council, handling shall be subject to procedures. All relevant departments shall support the FTZ in deepening the pilot programs of reform and opening up in various fields, enhancing stress test, strengthening supervision and preventing and controlling risks, effectively connect the legislation, revision, repeal and interpretation of relevant laws, and solve the problem of institutional guarantee in the process of pilot programs. Zhejiang province shall establish a FTZ administration system adapting to the requirements of pilot programs through local legislation.
(2) Improving supporting tax policies.
Existing relevant tax policies shall be implemented, and the supporting and promoting role of existing policies shall be fully used. The tax policies which have been piloted in China (Shanghai) Pilot Free Trade Zone, China (Guangdong) Pilot Free Trade Zone, China (Tianjin) Pilot Free Trade Zone and China (Fujian) Pilot Free Trade Zone may, in principle, be piloted in the FTZ, and, in particular, selectively levied tariffs promoting trade, other relevant import and export taxes and other policies shall be piloted in areas under special customs supervision in the FTZ. The scope of areas under special customs supervision within the FTZ and the scope of application of tax policies shall remain unchanged. In addition, on the premise of consistency with tax reform direction and international practice and leading to neither transfer of profit nor erosion of tax base, tax policies for the levy and deduction of and exemption from overseas income tax shall be researched and improved.
(3) Strengthening organization and implementation.
According to the unified arrangements of the CPC Central Committee and the State Council, under the overall coordination of the Inter-ministerial Joint Meeting for Pilot Free Trade Zone Work of the State Council, Zhejiang province shall improve the guarantee mechanism of the organization and implementation of the tasks of pilot programs and accelerate the implementation according to the principle of overall planning, implementation by steps, first breakthroughs and gradual improvement. All relevant departments shall vigorously provide support, develop detailed rules or measures for the implementation in a timely manner, strengthen guidance and services, and jointly advance the innovation on relevant systems and mechanisms, so as to effectively build and manage the FTZ. In the process of implementation, thinking shall be innovated on, patterns shall be sought, problems shall be solved and experience shall be accrued; the local governments and departments shall be fully motivated, measures suitable to local conditions shall be adopted, characteristics shall be highlighted, and comparative and complementary trials shall be effectively conducted; and the implementation of reform measures shall be effectively ensured, and major matters shall be reported to the State Council in a timely manner.
(4) Summarizing and promoting experience in pilot programs that can be replicated.
The FTZ shall summarize the experience and achievements in reforms and innovation in a timely manner. The office of the Inter-ministerial Joint Meeting for Pilot Free Trade Zone Work of the State Council shall, in conjunction with the People's Government of Zhejiang province and relevant departments, summarize and assess in a timely manner the effect of the implementation of the tasks of the pilot programs of the reform and opening up of the FTZ, strengthen the systematic integration of the experience in pilot programs in various fields, and entrust third-party institutions with independent assessment. Achievements with good effect of pilot programs and controllable risks, which can be replicated and promoted, shall, after being subject to disaggregated review procedure, be replicated and promoted in other regions of the country.