CFF [2019] No. 14

The People's Government of Chengdu and Luzhou, the relevant departments and the directly affiliated institutions of the Provincial Government, and the relevant units:

For the comprehensive implementation of the Notice of the State Council on Supporting the Measures for Deepening Reform and Innovation in the Free Trade Zone" (GF [2018] No. 38), and in line with the real condition in Sichuan, the following implementation opinions will be put forward to support the China (Sichuan) Free Trade Zone (hereinafter referred to as the Free Trade Zone) in deepening reform and innovation.

First, we should continue to optimize the investment environment

(1) We are to further relax the requirement about the proportion of foreign technical personnel engaged in foreign investment in construction engineering design enterprises. (Responsible unit: Provincial Department of Housing and Urban Construction)

(2) We should take into full consideration of the construction needs of the Free Trade Zone while releasing the annual indicators for land use, and provide more support to Chengdu and Luzhou. We shall support the eligible construction projects in the Free Trade Zone to be included as key provincial projects, and provide guarantee for the required annual land use in accordance with the Administrative Measures for Sichuan Key Projects (CFF [2017] No. 9). (Responsible Unit: Provincial Department of Natural Resources)

(3) Authorities of provincial-level or lower examination and approval items such as construction approval of construction projects, safety production licenses for construction enterprises, and qualification licensing for foreign-invested construction units (including entities of design, construction, supervision, inspection, cost consulting, etc.) are to be delegated to the Free Trade Zone. (Responsible unit: Provincial Department of Housing and Urban Construction)

(4) We will continue to promote the reform of the examination and approval for the qualifications of construction enterprises in the Free Trade Zone and the qualifications of real estate development enterprises to further simplify the process and deliver efficient service. (Responsible unit: Provincial Department of Housing and Urban Construction)

(5) When foreign-owned construction enterprises in the Free Trade Zone undertake joint construction projects, they are not subject to the investment proportion of Chinese and foreign enterprises; When foreign-invested enterprises for engineering design (except engineering surveys) serving the province apply for qualifications for the first time, they do not have to conform with the performance requirements for engineering design. (Responsible unit: Provincial Department of Housing and Urban Construction)

(6) Under the Plan for Closer Economic Partnership Between Mainland and Hong Kong, Plan for Closer Economic Partnership Between Mainland and Macao and Framework on Cross-Strait Economic Cooperation, we will cancel restrictive provisions on the scope of project contracting listed in the Regulations on the Administration of Foreign-Invested Construction Enterprises for Hong Kong, Macao and Taiwan-invested construction enterprises in the Free Trade Zone. (Responsible unit: Provincial Department of Housing and Urban Construction)

(7) We shall inform the social medical institutions in the Free Trade Zone to make commitments to purchase Class B large-scale medical equipment. (Responsible unit: Provincial Commission of Health)

(8) The medical institutions in the Free Trade Zone shall carry out research projects on clinical frontier technologies of stem cell according to their own capabilities and relevant regulations. (Responsible unit: Provincial Commission of Health)

(9) We will optimize the tax collection and management mode, formulate new methods for tax payment, and improve the tax payment efficiency of enterprises. We will create a full-range electronic tax bureau to launch e-withdrawal, e-correction, and e-tax exemption, deduction, and refund across the board. This way, we are to cut the average processing time for tax refunds from 15 working days to 10 working days. (Responsible unit: Sichuan Provincial Bureau of Taxation)

(10) The registration and pre-examination authorities of the resident representative office of a foreign (regional) enterprise shall be decentralized to the market supervision department with the authority to register foreign investment in the Free Trade Zone. (Responsible unit: Provincial Bureau of Market Supervision)

(11) We will strive to add a trademark acceptance window in the Free Trade Zone. We are to expand the scope of business for the existing trademark acceptance window, and promote the electronic registration of trademarks and the “one-stop” service window. (Responsible unit: Provincial Bureau of Market Supervision)

(12) An acceptance venue will be set up in the Free Trade Zone to handle the registration of trademark rights. (Responsible unit: Provincial Bureau of Market Supervision)

(13) We will further relax the restrictions on shareholders of patent agencies, and for newly established patent agency with limited liability, we shall allow no more than one-fifth of them who have no qualification as patent agent, but are Chinese citizens aged 18 or older and are able to work full-time in a patent agency to serve as shareholders. (Responsible unit: Provincial Promotion Center for Intellectual Property Right Service)

(14) We will manage to gain state support for the exploration of innovative oil reserves represented by the combination of government and enterprise reserves in the Free Trade Zone. (Responsible units: Provincial Bureau of Food and Material Reserves, Provincial Commission of Development and Reform)

Second, we should further facilitate trade

(15) We shall conduct research to support the establishment of a bonded maintenance account book (handbook) for aviation maintenance enterprises that meet the requirements of the special customs supervision area, and support the enterprises engaged in aviation bonded maintenance to determine the account book (handbook) write-off period by reference to the actual validity period of the contract. For aviation maintenance business carried out by enterprises outside the customs special supervision area by importing raw materials from and exporting manufactured goods to foreign markets that are application of the relevant provisions of the current value-added refund (exemption) tax policy, concerned enterprises may apply to the competent tax authorities for tax refund (exemption) according to the procedures. (Responsible units: Chengdu Customs, Sichuan Provincial Bureau of Taxation)

(16) We will support the Free Trade Zone to explore and grant the international railway bill of lading as a document of title which could be used as a letter of credit for negotiation, thus improving the level of international rail transport. (Responsible units: Provincial Department of Commerce, China Railway Chengdu Group, Sichuan Bank Insurance Regulatory Bureau, Provincial Department of Transportation)

(17) We will support Chengdu in its pursuit of the pilot base for domestic and foreign bonded maintenance for high value-added goods such as aero-engines, in order to promote the transfer of bonded maintenance business from “single” declaration to “overall” declaration at the base. (Responsible units: Provincial Department of Commerce, Chengdu Customs)

(18) We will encourage parallel imports of automobiles. We will build a third-party automobile parallel import comprehensive service platform to create an industrial chain integrating vehicle import, exhibition and finance. We will encourage pilot platforms and enterprises to establish an international market procurement system. We will promote pilot enterprises to cooperate with insurance companies and maintenance factories to improve the after-sales service guarantee system. (Responsible units: Provincial Department of Commerce, Chengdu Customs)

(19) We will grant the Free Trade Zone the authority to register and manage technological contracts for free import and export. (Responsible unit: Provincial Department of Commerce)

(20) We will support the establishment of international trade platforms and spot trading markets for energy, industrial raw materials and bulk agricultural products in the Free Trade Zone in accordance with laws and regulations, explore pilot markets for market procurement, and promote the development of international trade in bulk commodities. (Responsible units: Provincial Bureau of Financial Supervision, Provincial Department of Commerce)

(21) We shall support the Free Trade Zone to deepen the pilot reform of service trade. (Responsible unit: Department of Commerce)

(22) We will support the development of art bonded warehousing and import and export business activities. (Responsible units: Chengdu Customs, Provincial Department of Culture and Tourism)

(23) We will support the pilot project of customs tax insurance in the Free Trade Zone, and encourage insurance institutions to formulate new tariff guarantee insurance. (Responsible units: Chengdu Customs, Sichuan Banking and Insurance Regulatory Bureau)

(24) We will promote the implementation of the “single window” standard version of the railway bill of lading declaration for international trade, and add a business of export tax rebate. (Responsible units: Provincial Governmental Office of Port Logistics, China Railway Chengdu Group, Sichuan Provincial Bureau of Taxation)

(25) We shall cooperate with relevant state departments to explore interconnection and information sharing through “one window” of international trade and key countries along the “Belt and Road”. We will promote pilot reforms of "single window" standard version of international trade customs special supervision area, cross-border e-commerce, processing trade functions in the Free Trade Zone. (Responsible units: Provincial Governmental Office of Port Logistics, Chengdu Customs)

(26) We shall support the special customs supervision area of the Free Trade Zone and the bonded logistics center (B type) to launch pilot businesses of bonded warehousing for parallel imported automobile. (Responsible unit: Chengdu Customs)

(27) We will strive to officially open temporary ports of Luzhou Port and the Qingbaijiang Railway in the Free Trade Zone, and to improve the function of these open ports. (Responsible units: Provincial Governmental Office of Port Logistics, Chengdu Customs)

(28) We will strive to upgrade the Luzhou Bonded Logistics Center (Type B) and the Qingbaijiang Bonded Logistics Center (Type B) to a comprehensive bonded area. (Responsible unit: Chengdu Customs)

(29) We will support the China Railway Express (Chengdu) in tis endeavor to carry out the pilot project of cross-border transportation of express mail. (Responsible units: Provincial Postal Administration, China Railway Chengdu Group)

(30) We will fight for state approval to import biological products at the Chengdu Port, making it the first port for drugs and biological product imports. For drugs and biological products that fall within the category of special articles and are imported for the first time, we have to conduct administrative examination and approval in accordance with the Regulations on the Administration of Entry-Exit Health Quarantine of Special Items (Order of the General Administration of Customs [2018] No. 243) and reduce the time limit for such examination and approval, and the results of third-party inspection shall be adopted. (Responsible units: Provincial Food and Drug Administration, Chengdu Customs)

Third, we will make financial more open and innovative

(31) We will continue to promote the reform, establishment, relocation, relocation and management of the insurance subsidies and its affiliated branches in the Free Trade Zone, and attract more insurance elements to flock into the Free Trade Zone. (Responsible unit: Sichuan Banking and Insurance Regulatory Bureau)

(32) The banking financial institutions in the Free Trade Zone shall be allowed to handle RMB derivative products and other businesses for overseas institutions in accordance with relevant regulations provided with legal compliance and controllable risks. (Responsible units: The People’s Bank of China Chengdu Branch, Sichuan Banking and Insurance Regulatory Bureau, State Administration of Foreign Exchange Sichuan Branch)

(33) We will support corporate banking institutions, which uphold the market positioning, conform to the regulatory requirements, and satisfy the qualifications for business license-related business, to conduct RMB and foreign exchange derivatives business provided with legal compliance and controllable risks, or to apply for long-term foreign exchange settlement and sales business with qualified financial banking institutions. (Responsible units: The People’s Bank of China Chengdu Branch, Sichuan Banking and Insurance Regulatory Bureau, State Administration of Foreign Exchange Sichuan Branch)

(34) We shall support the Free Trade Zone to carry out RMB cross-border transaction business based on the suitable account system, accelerate the construction of the cross-border RMB settlement center, and strive to carry out non-state reserve currency transactions. (Responsible unit: The People’s Bank of China Chengdu Branch)

(35) We will encourage and support the financial banking institutions in the Free Trade Zone to issue RMB loans prudently to overseas institutions and projects based on the real financing needs of enterprises that aim to go global through overseas investment, project construction, project contracting, and large-scale equipment exports. The banking financial institutions in the Free Trade Zone shall issue overseas RMB loans after verifying the creditworthiness of the borrowers and the project background to ensure that the funds are properly used. (Responsible units: The People's Bank of China Chengdu Branch, Provincial Commission of Development and Reform, Sichuan Banking and Insurance Regulatory Bureau)

(36) The bank is allowed to replace the bilateral trade contracts with the paper transaction certificates issued by the exchanges of the Free Trade Zone (subject to confirmation by both parties to the transaction) as the basis for authenticity review. (Responsible unit: Sichuan Banking and Insurance Regulatory Bureau)

(37) We shall support eligible individuals in the Free Trade Zone to conduct overseas securities investment in accordance with regulations. (Responsible units: Sichuan Securities Regulatory Commission, The People's Bank of China Chengdu Branch)

(38) We shall support qualified areas in the Free Trade Zone to strive for trial initiative of intellectual property securitization. We will further promote the new model of patent pledge financing in the Free Trade Zone. (Responsible units: Provincial Promotion Center for Intellectual Property Right Service, Sichuan Securities Regulatory Commission)

Fourth, we will promote pilot initiative in human resources

(39) We will strengthen the classified guidance and services for enterprises in the Free Trade Zone to enhance their flexibility of employment. We will support manufacturing enterprises in the Free Trade Zone to employ laborers by signing labor contracts for accomplishment of certain tasks or fixed short-term labor contracts during their peak seasons; Dispatches of personnel to engage in temporary work in R&D of enterprise are allowed. (Responsible unit: Provincial Department of Human Resources and Social Security)

(40) We will carry out the management systems for foreign students in China issued by relevant state departments. (Responsible unit: Provincial Department of Education)

(41) We will encourage the Free Trade Zone to launch trial moves in attracting non-public health technicians to provide medical services for prevention of diseases, in getting promotion of titles for full-time doctors who devote themselves to the prevention of diseases at medical institutions (Responsible units: Provincial Bureau of Traditional Chinese Medicine, Provincial Department of Human Resources and Social Security)

Fifth, we will continue to deepen the exploration of differentiated reform

(42) We will support the Free Trade Zone to implement in-depth the leading projects, formulate guidelines for benchmarking for the establishment of the Free Trade Zone, and carry out the Action Plan for Matched Fight to Improve Business Environment. (Responsible unit: Provincial Department of Commerce)

(43) We will support the state-level development zones with flexible institutional mechanisms in the province, economic functional zones with strong reform and innovation capabilities, and county-level administrative regions with large openness potential to apply for the construction of pilot areas for coordinated cooperation of the Free Trade Zone. We shall match with the Free Trade Zone to undertake simultaneously various provincial-level management authorities that are decentralized according to regulations. (Responsible unit: Provincial Department of Commerce)

(44) We will support the Free Trade Zone and the Pilot Areas for Collaborative Reform to explore the construction of a demonstration zone for coordinated opening-up between inland and coastal areas along the seas, rivers and borders to create a new regional platform for opening-up and innovation. (Responsible units: Provincial Department of Commerce, Provincial Department of Science and Technology)

(45) We will strive to construct a free trade port supported by the integrated strengths of airway and railway and water transport, and implement relevant measures of the free trade port step by step. (Responsible unit: Provincial Department of Commerce)

Chengdu, Luzhou, relevant localities and departments (units) should highly value, work together to launch detailed deployment in deepening reform and innovation in the Free Trade Zone with a determined spirit. Relevant provincial departments (units) should promote the implementation of reform and innovation measures in accordance with their responsibilities, further deepen those measures that have already been implemented, and follow closely the whole implementation process. Each district of the Free Trade Zone should be brave enough to make bold trials, attempts and reform. That is how we can guarantee the sound implementation of reform and innovation tasks.

People’s Government of Sichuan Province

May 30th, 2019