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Company gets tax rebate after 'Pingtan Closure'

( chinadaily.com.cn )

Updated: 2014-07-17

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The subsidiary of TPK holdings, the world's largest touch panel maker, became the first beneficiary of preferential tax policies following the "Pingtan Closure" on Tuesday.

Company gets tax rebate after 'Pingtan Closure'

The van Min DB5006, transporting a batch of equipment for laboratory use, passed a customs checkpoint in Pingtan on July 15. Its cargo, valued at 400,000 yuan, received a tax rebate of 68,000 yuan based on local preferential tax policies. [Photo/pingtan.gov.cn]

"Pingtan Closure" refers to the establishment of an integrated customs supervision and management system covering the Pingtan Comprehensive Pilot Zone (PCPZ), where a slew of qualified businesses and imported cargoes will enjoy tax incentives such as exemptions and rebates.

The company received 68,000 yuan ($10,887) in tax reimbursements from laboratory equipment it purchased from Dongguan city in Guangdong province that was valued at 400,000 yuan.

The cargo was transported by a van and was inspected at a checkpoint at the end of the Haixia Bridge, the only overland entrance and exit for vehicles and people.

It is not the first time the company has benefited from Pingtan's favorable tax policies. About one year ago, it imported manufacturing equipment worth more than $300 million and obtained 410 million yuan ($65.6 million) in tax rebates after the General Administration of Customs' approval.

"'Pingtan Closure' marks the full implementation of all preferential tax policies," said Yu Jianming, deputy head of Pingtan Customs. "Now that Pingtan has become the largest area under special customs supervision and management, it will roll out a variety of incentives for the enterprises within."

Zhu Wenshui, driver of the Min DB5006 van, was excited about being the first one to pass through the checkpoint on the first day of "Pingtan Closure". He praised the procedure's speed and convenience.

"The company had applied for tax rebates for its cargo before that morning, and they were enrolled on our rebate list via a customs-information platform. So all we needed to do at the checkpoint was check the plate number, the container number and the weight to make sure everything matched the file record," explained Yu.

Because the cargo was produced domestically, it didn't have to go through quarantine and inspection like those imported from overseas do at the ports. Except for food and designated important goods, all cargo entering Pingtan is merely filed in an archive and receives inspection only when leaving, added Lin Min, deputy director of the Pingtan Office of the Fujian Entry-Exit Inspection and Quarantine Bureau.

Those customs inspection shortcuts are just the first step, as Pingtan will continue to create the most efficient and convenient customs-clearance methods in the hopes of becoming a cross-Straits free trade zone as well as a cross-Straits "Common Homeland", said Li Dejin, director of PCPZ's administrative committee.

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