Rules of Shanghai Municipality for Administration of Export Processing Zones
Article 1 （Purpose and Basis）
For the purpose of regulating the administration of export processing zones and promoting the development of the processing and export trade of this Municipality, these Procedures have been formulated on the basis of relevant enactments and the regulations of the State Council respecting export processing zones.
Article 2 （Definition）
The term"export processing zone"as used in these Procedures （hereinafter referred to as EPZ） refers to the special type of economic areas engaging exclusively in export processing trade that have been established in Shanghai with the approval of the State Council and have been sealed off for Customs control.
Article 3 （Administrative Committee）
All EPZs shall have an administrative committee （hereinafter referred to as AC） set up. The AC shall be subject to the leadership of its host district/county people's government, and shall on the basis of these Procedures and the entrustment of relevant administrative departments, perform the following duties and functions in the EPZ:
1. To do an overall development planning and make specific plans;
2. To assume charge of the administration of investment projects, land use and construction work;
3. To assume charge of the development and construction of the zone, and of providing necessary guidance and services for the enterprises located therein;
4. To work in cooperation with the Customs, the commodity inspection and quarantine services and other relevant administrative departments in exercising supervision and control of activities of Customs clearance;
5. To act as coordinator for and cooperate with relevant administrative departments in engaging in the administration of the enterprises in the zone; and
6. To perform other duties and functions assigned by the Municipal People's Government and the district/county people's government concerned.
Article 4 （Administration of Investment Projects）
The AC, as entrusted by the competent municipal administrative department in charge of foreign investment in Shanghai, shall examine and approve, check and verify, and certify the following types of foreign-invested projects in the EPZ, and shall report its conclusions to the competent municipal administrative department in charge of foreign investment in Shanghai for the record:
1. Projects in the state-encouraged category with a total investment of under US$30 million;
2. Projects in the state-permitted category with a total investment of under US$30 million; and
3. The alteration of a project contract and of the articles of association of an enterprise for projects specified in Item 1 and 2 of this Article.
The AC, as entrusted by the municipal development and reform department, shall check and approve and exercise control over domestic investment projects in the EPZ that are not subject to comprehensive balancing at the municipal level, and shall report its conclusions to the municipal development and reform department for the record.
Article 5 （Administration of the Setting-up of Enterprises）
The industry and commerce administrative departments shall, within three working days from the date of acceptance of handling, complete the procedures of examination and approval and registration for applicants that intend to set up enterprises in the EPZ when their application materials are adequate and complete and conform to statutory formal requirements.
Where prioritized examination and approval is provided for by laws and administrative rules and regulations, the municipal industry and commerce administrative departments and the competent municipal administrative department in charge of foreign investment in Shanghai shall respectively carry out centralized handling in the case of domestic-invested and foreign-invested enterprises and shall, within five working days from the date of acceptance of handling, complete the examination-and-approval procedures for such prioritized case.
Article 6 （Administration of Planning）
The AC shall, as entrusted by a relevant administrative department for city planning and according to the approved detailed planning, engage in examination and approval work on matters requiring city planning approval such as the Written Opinion on Site Selection for Construction Projects, the Permit for City-planning-approved Land Use for Construction, and the Permit for City-planning-approved Construction Projects, engage in corresponding supervision-and-inspection work for the implementation thereof, and put a stop to and otherwise deal with illegal construction work according to law. The AC shall, within 15 days upon the completion of the examination-and-approval work, report to the relevant administrative department for city planning for the record.
In case the AC violates the relevant regulations in carrying out the examination-and-approval work for city planning entrusted to it, the entrusting department may, in accordance with the provisions of Article 17 of these Procedures, order a rectification or countermand its decision according to law. Before the act of violating relevant regulations in examination-and-approval work is rectified, the entrusting department may withhold the power of doing examination and approval entrusted to it.
A detailed planning and the nature of the use of a particular piece of land that have been approved shall not be altered without due process of law. In case there is a need for any alteration, the AC shall submit an application for alteration to the administrative department for city planning that was originally responsible for formalizing them for its deliberations and approval, and the latter shall then see to the making of the necessary alterations, and then report them to the original examination-and-approval department for examination and approval.
Article 7 （Administration of Transfer of Land-use Right）
The AC shall act as coordinator and make suggestions on the work relating to the transfer of land-use right in the EPZ and assist land-using organizations in going through the formalities of land-use transfer with the administrative department in charge of land concerned according to prescribed procedures.
Article 8 （Administration of Construction Projects）
The AC shall, as entrusted by the municipal development and reform department, and the administrative department of the Municipality in charge of construction and by that of the host district/county, examine and approve the official registration of a construction project, the proposal for beginning the construction of a project, the preliminary design and the construction document design of construction projects in the EPZ.
Routine work relating to tender invitation and submission for land survey, design, construction and quality inspection for construction projects in the EPZ and the quality and safety control of engineering projects in the EPZ except for the installation of heavy equipment shall, as entrusted by the administrative department of the Municipality in charge of construction and by that of the host district/county, be undertaken by the AC which shall also be responsible for exercising supervision and making spot checks.
The AC shall report to the relevant administrative departments for the record the result of its examination-and-approval work, and/or supervision work relating to construction projects undertaken in accordance with Clauses 1 and 2 of this Article.
Article 9 （Administration of City Appearance and Sanitation）
The AC shall, as entrusted by the administrative department in charge of city appearance and sanitation of the host district/county, engage in examination and approval work relating to city appearance and sanitation with regard to construction projects in the EPZ and report to the relevant administrative departments for the record.
Article 10 （Environmental Protection）
The environmental protection work in the EPZ shall be carried out in accordance with the relevant laws, rules and regulations of the State and the relevant regulations of this Municipality.
The AC shall assist the administrative departments in charge of environmental protection in effectively carrying out work relating to environmental protection, and shall oversee the performance of enterprises in abiding by the laws, rules and regulations and relevant provisions relating to environmental protection and in strictly keeping the mandatory, effluent standards.
Article 11 （Administration of Import/Export and the Processing Trade）
The AC shall, as entrusted by the competent municipal foreign economics and trade administrative department, engage in examination-and-approval work relating to the import of the equipment, materials and components for productive use, to the export of finished products and to the scope of expanding processing trade of the enterprises in the EPZ.
Article 12 （Administration of Employment and Labor Security）
The AC shall assist the administrative department in charge of labor security of the host district/county in effectively carrying out the work of administering employment and labor protection in the EPZ.
Article 13 （Customs Clearance Service）
The Customs and the inspection and quarantine departments shall, in accordance with the relevant rules and regulations of the State, exercise supervision and administration over the EPZ, and adopt expeditious and facilitative measures for Customs clearance in order to provide efficient services for enterprises.
Article 14 （Simplification of Exit Formalities）
For persons working in the EPZ who have need to frequently make business trips abroad or outside the mainland, the practice of"Once approved after examination, year-long validity for multiple trips abroad"may be adopted for the examination and approval procedure and the practice of issuing multiple exit/entry visas to the Hong Kong Special Administrative Region and the Macao Special Administrative Region for a set period of time may be followed.
Article 15 （Publicizing Information about Government Administration）
The AC shall publicize in the work place the legal provisions, contents, conditions, procedures, time limit, a catalogue of all the required materials to be submitted, and a completed sample application form relating to the examination and approval matters in the EPZ.
In case an applicant requests from the AC an explication or further explanation of the contents that are on display, the AC shall try to provide accurate and reliable information.
Article 16 （Supervision and Inspection of Processing Zones on Relevant Administrative Matters）
Except for matters involving national security, public security, and environmental protection, all relevant municipal administrative departments shall solicit the AC's opinions when the performance of their administrative duties involves the EPZ. The AC shall be responsible for making an integrated schedule for all activities of giving guidance, making inspections and exercising supervision inside the EPZ by organizations from outside of it.
The AC shall support and assist relevant administrative departments in performing their administrative and law-enforcement duties in accordance with legal procedures, and the relevant administrative departments shall brief the AC on relevant matters after the completion of their law-enforcement inspections.
Article 17 （Responsibilities of the AC and Entrusting Organizations）
The AC shall be responsible in a comprehensive way for all administrative matters relating to examination and approval that have been entrusted to it and that it has undertaken to handle, except for such responsibilities as administrative litigation, administrative reconsideration, etc. that, according to law, shall be undertaken by the administrative department that has entrusted the AC with administrative examination and approval.
An administrative department that has entrusted the AC with administrative examination and approval shall exercise supervision over and give guidance to the AC with regard to its handling of matters thereto related. The AC shall accept the supervision and guidance of the entrusting administrative department and report regularly to it about the progress of the handling of matters relating to administrative examination and approval entrusted to it.
In case the AC violates the relevant regulations in carrying out administrative examination-and-approval work, the administrative department that has entrusted it with administrative examination and approval shall have the power to order a rectification, or countermand its decision according to law, and may, when necessary, report to the Municipal People's Government.
Article 18 （Division of Labor with Relation to Functions）
The administrative organizations in the AC shall be clearly divided between those with distinctive functions of administration and those with distinctive functions for development and construction, and specific departments shall be designated to work full time to handle the EPZ's administrative matters.
Article 19 （Effective Date）
These Procedures shall become effective on November 1, 2004.The"Interim Procedures on the Administration of the Shanghai Songjiang Export Processing Zone"promulgated by the Municipal People's Government on October 19, 2000 and the"Interim Procedures on the Administration of the Customs Supervision Sector in Shanghai Jinqiao Export Processing Zone"promulgated by the Municipal People's Government on March 27,2002 shall be repealed at the same time
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