Taicang Port Secondary Resources Importing & Processing Zone Investment Policy
1. No. 61 /2003/ Notices on limit for examination and approval of imported scrap resources by State Environmental Protection Administration of China definitely stipulate that only those enterprises approved by state bureaus or administrations can be granted import license for import of scrap resources, so that a standing application for import license obtained at any time during the year will be absolutely ensured.

2. Enterprises invested with foreign funds in the Zone enjoy the same preferential policies of tax revenue as those in Taicang Port.
Preferential taxation policies prescribed include:

A1. Production-driven foreign-funded enterprises with an operating period of over ten years are exempt from corporate income taxes for two consecutive years since the first profit-earning year, pay half of the tax for sequential three years and are entitled to a deducted corporate income tax rate of 15% after the expiration of exemption and deduction period.

B2. Foreign-funded exporting enterprises, whose annual export value exceeds 70% of the total annual output value, can enjoy a preferential deducted corporate income tax rate of 50% after expiration of the legal exemption and deduction period. Those still qualified as advanced technology foreign-funded enterprises after expiration of the exemption and deduction can enjoy a return of 50% of their income tax paid for another three years. Those having already enjoyed a preferential deducted income tax of 15% will be entitled to a return of one third of their paid corporate income tax.

C3. Foreign-funded enterprises with the total amount invested in technology and knowledge intensified projects as well as energy, transportation and port construction projects reaching up to US$ 30 million, will pay income tax at a preferential deducted rate of 15% with the approval of municipal financial authorities. Those Sino-foreign join ventures engaged in port construction projects with an operating period of over fifteen years can enjoy an exemption from corporate income tax for five consecutive years since the first profit-earning year and a preferential half income tax rate for the sequential five years.

D4. Reinvesting their profits in increasing the registered capital of their enterprises or in establishing other foreign-funded enterprises with an operating period no less than five years, those foreign investors can obtain a return of 40% of their corporate income tax paid by reinvesting enterprises with the approval and approbation of the tax bureau, and in establishing and expanding export-oriented or advanced technology enterprises, a return of all income tax.

E5. Production-driven foreign-funded enterprises are exempt from local corporate income taxes.

3. Three categories of import licenses for import of scrap resources include:

1. Shredded copper scrap, shredded nickel scrap, shredded aluminum scrap, shredded zinc scrap, shredded tin scrap and shredded tantalum scrap.
2. Iron and steel recycling including hardware scrap and waste electric appliance, copper recycling including scrap electric motors, waste electric wires, cable scrap and hardware scrap, aluminum recycling including waste electric wires, cable scrap and hardware scrap.
3. Polyethylene scrap, polystyrene scrap, polyvinyl chloride scrap and other plastics scrap.

4.Enterprises with hundreds of millions of dollars of investment launched and equipped with the most sophisticated facilities and superior technology can apply for an operating license for special solid waste including circuit board scrap, electronics scrap, computers and peripheral equipment scrap, office supplies, household electric appliances, waste electric motors, waste electric wires, cable scrap, plastics scrap and other copper scrap.