Decree of the People’s Government of Guangdong Province
No.213
The Trial Measures for the Administration of China (Guangdong) Pilot Free Trade Zone adopted at the Forty-second Executive Meeting of the Twelfth Session of the People’s Government of Guangdong Province on February 17, 2015 are hereby promulgated and shall become effective as of the date of promulgation.
Governor
Zhu Xiaodan
April 20, 2015
Trial Measures on the Administration of China (Guangdong)
Chapter I General Provisions
Article 1
These Measures are formulated for the purpose of facilitating and safeguarding the development of China (Guangdong) Pilot Free Trade Zone in accordance with the Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Administrative Approval Items under the Relevant Laws in China (Guangdong) Pilot Free Trade Zone, China (Tianjin) Pilot Free Trade Zone, China (Fujian) Pilot Free Trade Zone and the Expanded Area of China (Shanghai) Pilot Free Trade Zone, the Framework Plan for China (Guangdong) Pilot Free Trade Zone approved by the State Council and relevant laws and regulations and in light of the actual situation of this Province.
Article 2
These Measures shall apply to China (Guangdong) Pilot Free Trade Zone (hereinafter referred to as “the GDFTZ”) established upon the approval of the State Council. The GDFTZ covers Nansha Area of Guangzhou, Qianhai and Shekou Area of Shenzhen and Hengqin New Area of Zhuhai.
Article 3
The GDFTZ shall, utilize the strengths of Hong Kong and Macao, serve the Mainland of China and be orientated to the world. It shall focus on institutional innovation and promote in-depth economic cooperation between Mainland China on the one hand and Hong Kong and Macao on the other, further the liberalization of service trade between Guangdong Province, Hong Kong and Macao, enhance the integration of international trade functions and deepen the opening-up and innovation in the financial sector. It shall innovate on modes of supervision and regulation, establish an administrative system that is in line with the international rules of investment and trade, and foster an internationalized and market-oriented business environment based on the rule of law, so as to explore new methods and accumulate new experience for comprehensively deepening reform and expanding opening-up in the country.
Chapter II Administrative System
Article 4
The GDFTZ shall, on the basis of the principles of overall coordinated administration, graded responsibility, competency and efficiency, establish a provincial administration for the GDFTZ and an administration for each Area under the GDFTZ.
Article 5
The People’s Government of Guangdong Province shall set up a leadership coordination body for the GDFTZ, which is responsible for the overall deliberation of regulations and policies as well as development plans for the GDFTZ. The coordination body shall decide major issues concerning the development of the GDFTZ on the basis of adequate study, make an overall guidance relating to the pilot reform tasks, and coordinate with the competent authorities of the State, Hong Kong, Macao and relevant cities on matters in respect of the GDFTZ.
Article 6
The Office for China (Guangdong) Pilot Free Trade Zone, established by the People’s Government of Guangdong Province, shall perform the following functions and responsibilities in accordance with these Measures:
(1) To implement the national guidelines, policies, laws, regulations and systems concerning the development of the GDFTZ;
(2) To facilitate study and initiation of policies for the GDFTZ in connection with comprehensive reform, investment, trade, finance and human resources and to guide the implementation of such policies;
(3) To coordinate with competent national and provincial authorities and with Hong Kong, Macao and relevant cities on specific matters in respect of the GDFTZ;
(4) To promote the administrative bodies of all Areas to establish and improve their respective system of interim and ex post regulation;
(5) To check the implementation of regulations and policies in each Area of the GDFTZ and carry out comprehensive assessment of the operation of the GDFTZ;
(6) To collect and release public information in respect of the GDFTZ and organize publicity and communication in respect thereof;
(7) To undertake the day-to-day work of the leadership coordination body of the GDFTZ; and
(8) To undertake other functions and responsibilities delegated by the People’s Government of Guangdong Province.
Article 7
The GDFTZ shall, by relying on the existing administrative institutions, establish an administration for each Area of the GDFTZ, which is responsible for the specific matters within its own administrative area. The responsibilities of the administration in each Area shall be separately defined by the people’s governments of Guangzhou City, Shenzhen City and Zhuhai City, in accordance with these Measures.
Where an Area administrative body requires a provincial level power in order to perform a duty, the relevant competent department authorities of the People’s Government of this Province shall delegate the said power and shall strengthen the coordination with sub-zones and support their work.
Chapter III Investment Management
Article 8
The GDFTZ shall adopt an administrative approach to foreign investment that combines pre-establishment national treatment and a “Negative List”. Foreign investment projects in the scopes not covered by the “Negative List” shall be subject to a filing procedure (except for the domestic investment projects for which the State Council stipulates that the examination and approval procedures shall be preserved); and such a filing procedure shall be applicable to the establishment and alteration of foreign-invested enterprises, as well as to their business contracts and articles of association. The administration in each Area of the GDFTZ is responsible for the filing procedure as per foreign investment affairs within its own administrative area, and shall perform filing for foreign investment matters not covered by the "Negative List", and upon filing complete relevant formalities in accordance with relevant provisions of the State thereafter.
Article 9
Investors in the GDFTZ may carry out outbound investment in various forms. General outbound investment projects carried out by enterprises in the GDFTZ are subject to the filing procedures, except for the outbound investment projects for which the State Council stipulates that the examination and approval procedures shall be preserved.
Article 10
The administration of each Area of the GDFTZ shall organize parallel approval for the access of enterprises to the Zone, and include such matters as foreign investment projects approval (or filing), approval (or filing) for the establishment and alteration of a foreign-invested enterprise, registration for the establishment of a commercial entity, filling for Organization Code Certificates, Tax Registration Certificates (for both national tax and local tax), social security registration numbers and registration of the production of official seals into the “one-window processing” mechanism for parallel handling, and gradually integrate certificates such as the Business License, Organization Code Certificate and Tax Registration Certificate into one certificate and such certificate shall be identified with one and single serial number recognized by all authorities concerned.
Article 11
The GDFTZ shall optimize the registration procedures with the industry and commerce authorities for the convenience of enterprises and adopt a registration system for registered capital subscription in accordance with law.
The investors who intend to establish foreign-invested enterprises in the GDFTZ may decide upon the term of operation of such enterprises at their sole discretion.
Enterprises incorporated in the GDFTZ (hereinafter referred to as “Enterprises in the GDFTZ”) may carry out investment or other business outside the GDFTZ. They shall go through the relevant formalities, if required, in accordance with the applicable rules and regulations.
Article 12
The GDFTZ shall apply the principle of “obtaining a license prior to the operating permit”. To be specific, an Enterprise in the GDFTZ, upon obtaining its Business License, may engage in general production and business activities; if it intends to engage in production and business activities that are subject to examination and approval, it shall, after obtaining its Business License, first apply to the competent authorities for the approval document and/or a permit in accordance with law, only with which it may then proceed with relevant production and business activities.
Enterprises engaging in production and business activities that are subject to ex ante approval shall, before applying for a Business License, go through approval formalities in accordance with law.
Chapter IV Trade Development and Facilitation
Article 13
The GDFTZ shall promote the integrated development of domestic and foreign trade, encourage enterprises in the GDFTZ to engage in international trade and domestic trade on the basis of strategic overall planning, offer comprehensive services to the enterprises in the Pan-Pearl River Delta Region, and establish an international platform for bulk commodity transaction and recourse distribution.
The GDFTZ shall promote the development of service trade, and encourage the development of new trade modes such as offshore trade, transaction through exhibition for bonded goods, financing by pledged warehouse receipt, finance lease, futures bonded delivery, cross-border e-commerce, forex duty-free shops and market procurement.
The GDFTZ shall establish a public service platform to provide services facilitating the transformation and upgrading of processing trade and shall assist processing trade enterprises in the GDFTZ to develop such business as settlement, bonded services and independent marketing.
Enterprises are encouraged to set up headquarters in the GDFTZ and to establish operation centers in the GDFTZ integrating trade, logistics, settlement and other functions.
Article 14
At Guangzhou’s Nansha Bonded Port Area, Shenzhen’s Qianhai Bay Bonded Port Area and other special customs supervision areas within the GDFTZ, an entry and exit supervision service mode shall be applied that features “Frontier Opening” and “Effective and Efficient Control on the Second-tier”. The administrative procedures for the special customs supervision areas shall be integrated and optimized, and institutional innovations in port supervision shall be explored as may be necessary for the development of the GDFTZ.
The non-special customs supervision areas in the Nansha Area of Guangzhou and Qianhai and Shekou Area of Shenzhen shall keep to the current supervision practice without introducing the new mode that distinguishes between “Frontier” and “Second-tier”.
In the Hengqin Area of Zhuhai, differential administrative measures shall be applied according to the principles of “opening the frontier, controlling the second-tier, separating people from goods, and conducting classified management” as is determined by the State Council, and shall constantly explore ways of innovation in the port inspection.
Article 15
The GDFTZ shall, for the purpose of convenient, safe and efficient customs clearance, make innovations in the entry and exit control therein. A classified system to supervise the goods status shall be established and paperless clearance and rapid release for low-risk declarations shall be promoted, so as to improve the development of new trade modes in the GDFTZ.
Goods coming from the overseas into the Nansha Bonded Port Area of Guangzhou, Qianhai Bay Bonded Port Area of Shenzhen or Hengqin Area of Zhuhai (hereafter referred to as “the Fenced Areas”) may be first brought in with import manifests, with the customs declaration formalities being dealt with on a step-by-step basis. Exported goods may first be declared at customs and then cleared at the port by customs.
No storage time limit shall be set for the bonded goods stored in the Fenced Areas. The goods circulation process within the Fenced Areas shall be streamlined to allow one-time declaration for multiple deliveries and self-controlled transportation of goods so as to realize the efficient and convenient circulation of goods between the Fenced Areas and other special customs supervision areas.
Article 16
The GDFTZ shall make innovations in the inspection and quarantine process therein, on the basis of the principle of “quarantine upon entry with appropriate relaxation on the import and export inspection, and optimization for entry and exit formalities with strict preventive measures against quality and safety risks”.
The inspection and quarantine authorities shall establish an administrative system regulating matters relating to quality safety and risks of epidemics in connection with exit and entry, implement paperless practice in declaration, certificate issuance and cargo release and provide information services in connection with exit and entry inspection and quarantine.
Goods coming from overseas into the Fenced Areas shall be subject to entry quarantine; all goods except sensitive goods are exempted from inspection.
The goods going out of the Fenced Areas shall undergo a pre-inspection upon the application by the enterprises, subject to one-time concentrated inspection and multiple releases upon verification. The bonded exhibition goods entering into and exiting from the GDFTZ are exempted from inspection.
The warehoused goods shipped between enterprises within the Fenced Areas are exempted from inspection and quarantine.
The GDFTZ shall establish an administrative system that facilitates the development and standardization of third-party institutions on inspection and identification. The inspection and quarantine authorities shall admit the inspection results from a third party in accordance with relevant law, regulations and prevailing international rules.
Article 17
The GDFTZ shall establish a comprehensive, cross-departmental administrative platform that provides services in such areas as trade, transportation, processing and warehousing, and shall open the International Trade Single Window, so as to achieve information exchange, mutual recognition of regulation measures and mutual assistance in law enforcement between the competent authorities.
Enterprises may make one-time submission of standard electronic information to the various administrative authorities through the Single Window and receive feedbacks about the processing results from the Single Window.
Article 18
The GDFTZ shall streamline the approval procedures of employment permits for Hong Kong, Macao and foreign employees of the Enterprises in the GDFTZ, and offer them assistance in entry, exit and residence.
The GDFTZ shall provide assistance for the Mainland employees in the Enterprises in the GDFTZ when processing the documents for overseas travel.
Chapter V Function Integration in the GDFTZ
Article 19
The GDFTZ shall, under the framework of the Closer Economic Partnership Arrangement between the Mainland and Hong Kong and the Closer Economic Partnership Arrangement between the Mainland and Macao, carry out in-depth opening-up to Hong Kong and Macao, with focus on such fields as financial services, commercial and trade services, professional services, technology and culture services, and social services. The GDFTZ shall cancel or relax such access restrictions as qualification requirements, equity ratio limits and scope of business for the Hong Kong and Macao investors.
Article 20
The GDFTZ shall, relying on the advantages of Hong Kong’s global market network and Macao’s connection with Portuguese-speaking countries and learning from the advanced experience of Hong Kong and Macao in financial services, information, international trade network and risk management, develop itself into an important window and a comprehensive service platform for the Mainland’s initiative of “going global”, promote the trade and investment between countries and regions covered by the “One Belt and One Road” Initiative, and jointly explore the international market with them.
Article 21
By making the best use of easy connections among the land and sea ports and airports in Guangdong Province, Hong Kong and Macao, the GDFTZ shall strengthen the joint development of domestic and foreign shipping industry agglomerations in the GDFTZ, explore a way to develop the shipping industry with an internationally competitive edge and in a joint-operation mode, and build logistics hubs serving the 21st Century Maritime Silk Road.
The GDFTZ shall develop industries such as international shipping, international ship management, international crew services and international shipping brokerage and expand opening-up for foreign investors in the fields such as international ship management, international marine and air transportation services, and shipping finance.
The GDFTZ shall apply a competitive international ship registration policy and establish an efficient ship registration system.
The GDFTZ shall further open up in terms of navigation routes and navigation rights, promote the development of transition and LCL（Less Container Load）businesses, and explore the development and transaction for over-the-counter derivatives of the shipping freight index.
Article 22
The GDFTZ shall facilitate the cooperation and innovative development in the cross-border RMB business therein, and promote RMB as the main currency for large-amount cross-border transactions between the GDFTZ and overseas countries or regions as well as for investment valuation and transaction settlement.
The GDFTZ shall establish a financial service system therein catering to service and trade liberalization of commerce and trade, technology, tourism, logistics and information in Guangdong Province, Hong Kong and Macao.
The GDFTZ shall explore the feasibility of innovative business in cross-border investment and financing through free trade accounts and other risk controlled manners. It shall carry out pilot reforms in foreign exchange administration, which shall be centered on capital account convertibility, for the purpose of convenient investment and financing exchange therein.
Based on the development need of the GDFTZ, financial institutions at different levels, with different functions and of different types are allowed to enter the GDFTZ upon approval by the financial regulatory authorities. And an international trading platform in the GDFTZ shall be established to provide multi-level and all-round financial services.
Article 23
The GDFTZ shall apply special policies to high-end professionals from Hong Kong, Macao and foreign countries in such aspects as the exit and entry, stay and residence in China, project application, innovation and start-up, evaluation and assessment, and service support.
Mutual recognition between Guangdong Province, Hong Kong and Macao of personnel qualifications for service industry shall be promoted by special institutional arrangements.
Article 24
The GDFTZ shall make innovations on customs clearance for ports in Guangzhou Province and ports to Hong Kong and Macao, accelerate integrated regulation and establish a unified and efficient port regulatory mechanism that features coordination with Hong Kong and Macao.
The GDFTZ shall accelerate the implementation of streamlined entry and exit procedures for Macao-registered vehicles traveling between Hengqin and Macao.
Chapter VI Comprehensive Administration and Service
Article 25
In the GDFTZ, administrative innovations shall be made to shift the focus of governmental administration from ex ante approval to interim and ex post regulation, to boost participation in the regulatory process and to promote the development of a comprehensive regulatory system involving administrative regulation, strict intra-industry self-discipline, social supervision and public participation.
Article 26
Each Area of the GDFTZ shall establish a centralized and unified system for comprehensive administrative law enforcement, and a joint law enforcement mechanism featuring cooperation and coordination between all authorities concerned. It shall also timely disclose the information on law enforcement inspections in accordance with law and timely release necessary warnings, precautions and other necessary information for cases involving food and drug safety, public health, environmental protection, work safety or occupational health.
Article 27
The GDFTZ shall cooperate with competent national authorities to implement national security review of foreign investment and anti-monopoly review of concentration of undertakings therein, and apply full-cycle regulation to foreign investment.
Article 28
The GDFTZ shall cooperate with financial regulatory authorities to improve financial risk monitoring and evaluation, establish a financial macro-prudential management system therein and establish a risk prevention mechanism that adapts to the development of the financial business therein.
Article 29
The GDFTZ shall effectively implement relevant existing tax policies and shall, in accordance with applicable provisions of the State, carry out relevant tax policies that promote investment and trade; in the Fenced Areas, the GDFTZ shall implement the tax policies made specifically for the special customs supervision areas.
The tax authorities shall establish a convenient tax service system in the GDFTZ, carry out pilot schemes in connection with the modernization of tax collection and administration, promote online processing of tax affairs, and provide services such as online tax payment consultation and inquiry of tax affairs processing results, and gradually realize trans-regional processing of tax affairs.
The tax authorities shall conduct tax risk monitoring, to improve tax administration by the use of the tax information system and the GDFTZ regulation information sharing platform.
Article 30
The GDFTZ shall, in accordance with law, protect the rights of the employees therein to employment, remuneration, rest and vacation, work safety, occupational health, training, insurance and benefits, and participation in the business management.
The GDFTZ shall establish fair, open, efficient and convenient mechanisms for labor security supervision and labor dispute settlement, so as to protect the legitimate rights and interests of employees and employers.
Article 31
The GDFTZ shall enhance environmental protection, explore and carry out a classified management of environmental impact evaluation and dangerous factor evaluation and improve the management of environmental protection in terms of quality and efficiency.
Enterprises in the GDFTZ are encouraged to apply for internationally acknowledged certification of standard environment and energy management system and to adopt advanced production techniques and technology to save energy and reduce pollutants and emission of greenhouse gas.
Article 32
The GDFTZ shall strengthen the protection of intellectual property rights and optimize the mechanism bridging administrative protection and judicial protection. It shall also develop unified mechanisms for intellectual property right management and law enforcement.
The GDFTZ shall optimize the mediation mechanisms for disputes involving intellectual property rights and for the assistance to the right protection.
Article 33
The GDFTZ shall establish and improve the system for the collection, disclosure and application of corporate credit information, promote the comprehensive management and application of credit information between authorities and in various fields, and improve incentive, warning and disciplinary systems.
The credit service institutions are encouraged to take advantage of credit information of all sorts to develop credit products in the GDFTZ in order to provide credit services for the administrative regulation and market transactions; and enterprises and individuals are encouraged to use credit products and services.
Article 34
The GDFTZ shall apply a disclosure system for annual corporate reports and a system releasing a list of enterprises with irregularity in operation.
An enterprise in the GDFTZ shall, in accordance with relevant rules and regulations, submit annual reports to the corresponding Area administration. Such annual reports shall be publicized, except for information therein concerning trade secrets. The said enterprise shall be responsible for the authenticity and timeliness of the content in such annual reports.
The administration in each Area of the GDFTZ shall carry out random inspections into the information released by enterprises. Any enterprise that fails to release annual reports within the prescribed time limit or fails to release the eligible corporate information within the ordered time limit shall be included into the list of enterprises with irregularity in operation and be disclosed to the public through the corporate credit information publicity system.
Article 35
The GDFTZ shall promote the construction of e-government, facilitate wide use of electronic signature and legally effective electronic documents within the administrative areas and implement electronic filing and electronic file management. Electronic files and paper files shall have the same legal effect.
Article 36
The GDFTZ shall develop a unified platform for regulation information sharing so as to promote the collection, exchange and sharing of regulation information. The administration in each Area of the GDFTZ and competent authorities shall promptly and actively provide information and participate in information exchange and sharing.
The administration in each Area of the GDFTZ and competent authorities concerned shall, relying on the regulation information sharing platform, integrate regulation resources, promote whole-process dynamic regulation and enhance the efficiency of joint regulation and coordinated service.
The methods for the collection, exchange and sharing of regulation information shall be formulated separately by the People’s Government of Guangdong Province.
Article 37
The administration of each Area shall report and submit the statistical data and business information to the provincial administration of the GDFTZ in a timely and complete manner.
The GDFTZ shall establish an information release mechanism and, by such means as press conferences, regular news briefings or written releases, promptly release the relevant information with regard to the GDFTZ.
The administration of the GDFTZ shall release such information as laws, regulations, rules, polices and processing procedures in respect of the GDFTZ on the portal site of China (Guangdong) Pilot Free Trade Zone and the portal site of the administration of each Area to facilitate public access thereto.
Article 38
The GDFTZ shall carry out specialized and comprehensive assessment of the pilot practices, and the public, enterprises or third-party assessment institutions may participate in the assessment.
Article 39
Professional institutions such as the law firms, accounting firms, tax accounting firms, intellectual property rights service institutions, customs clearance and inspection agencies, inspection and examination institutions, certification institutions, ship and crew agencies, notary public agencies, forensic identification institutions and credit service institutions are encouraged to carry out business in the GDFTZ.
Article 40
Where the parties concerned have objections to the administrative acts of the administration of any Area of the GDFTZ or of any of the competent authorities, they may, in accordance with the provisions of theLaw of the People’s Republic of China on Administrative Review or the Administrative Procedure Law of the People’s Republic of China, apply for administrative review or file an administrative lawsuit.
Article 41
Where an enterprise in the GDFTZ encounters any business dispute, it may refer such dispute to a competent people’s court or, as may be agreed between the parties concerned, apply for arbitration or commercial mediation.
Arbitration institutions and professional mediation institutions for commercial disputes shall, in accordance with law and regulations and by reference to international practice, carry out the arbitration and commercial mediation within the area of the GDFTZ to solve commercial disputes.
Chapter VII Supplementary Provision
Article 42
These Measures shall become effective as of the date of promulgation.
