The SND Export Processing Zone has been creating miracles took only 100 days to accomplish the first phase of construction. 19 foreign investment projects have been approved and brought into operation during the first year of operation. The total investment of 0.29 billion US dollars, stands first among those EPZ approved at the same time all over the country. The second phase was built and completed by December 13th, 2004. The completion of this new industrial development provides additional space for investors to create new business miracles.

　Construction of the Zone

　In June 2004, the EPZ build the first 10 workshops, with a combined area of 112,000 square meters. The first 10 workshops housed the majority of the imported projects the same year. The original 10 workshops could not satisfy the demand for space, so the Zone fund the second phase construction of 100,000 square meters of electronic standard workshops. The first half of the 100,000 square meter machinery standard workshop, was started during the second half of 2004.

　　Special Treatment Policy

　　1.Tax-free for imports. The products produced and processed in the EPZ and the labor costs of the working staffs are free of value-added and excise tax. The machinery used for production, equipment, accessories for repair, facilities for basic construction and self-use office articles are free of customs tax and import value-added tax. The import and export of products, raw materials and machinery among the processing zones is free of tax.

　　2.Tax rerurn for exports. Cargo from all over China entering into the EPZ is regarded as exports and can enjoy the value-added tax refund special treatment policy. This policy is also applicable to machinery made in China, equipment, raw materials, accessories, packing material and a reasonable amount of construction material.

　　3.Tax for raw materials is kept on account. Tax for imported raw materials, accessories, packing material and consuming material is kept on account.

　　4.Management of foreign currency. The export money-exchange procedure for the sales of product from the EPZ to abroad is canceled. The import money-exchange procedure is not necessary for payments abroad.

　5.Quota permit. Free import and export of cargo among the EPZ and othe countries. Except for the regulaions from the State, no quota permits are needed for the shipments.

　　6.The value-added tax for water, electricity power and gas used for the production of exports can be refunded.

　7.Other special treatment. The companies inside the EPZ can also enjoy the comprehensive special treatment already extended to the companies in the SND.

　　Present situation of recruitment for business

　　By the end of 2004, the EPZ has approved 19 foreign investment projects, whose total investment is 0.29 billion US dollars. The registered investment total is 0.12 billion Us dollars. The main product lines include computer hard disks, and fine machine tools. The investment average is 1,200,000 US dollars per Mu.With our efforts, 8 projects have been brought into operation. The total import and export sum for the whole year is 0.12 billion US dollars.