Definition of "Free Trade Zone" and "Free Trade Port"
The full name of free trade zone: Free trade zone refers to that two or more countries or regions, through signing free trade agreements, mutually eliminate tariff and non-tariff barriers for most goods, eliminate market access restrictions for most service sectors, and open investment, so as to promote the free flow of goods, services, capital, technology, personnel and other production factors, realize complementary advantages, and promote common development.
Generally speaking, the free trade zone is provided with land by the state. Investors from other countries can produce goods. In the free trade zone, they can legally buy American shares and Hong Kong shares, and the goods purchased in the free trade zone can reduce certain tariffs.
The full name of a free trade port: a free trade port refers to a port area that is located within the territory of countries and regions and outside the customs management checkpoints, and allows the free entry and exit of foreign goods and funds. All or most of the goods entering and leaving the port area shall be exempted from customs duties, and free storage, exhibition, dismantling, refitting, repacking, sorting, processing and
Manufacturing and other business activities. The free port is mainly engaged in entrepot trade, processing, tourism and services.
Different birth backgrounds
Background of the birth of free trade zones: During the period of the emergence of free trade zones and the intense globalization of the world economy, China's first free trade pilot zone was established in Shanghai in 2013. At present, China has set up 21 free trade zones, covering Guangdong, Fujian, Tianjin, Shaanxi, Sichuan, Chongqing, Hubei, Henan, Zhejiang, Liaoning, Hainan, Heilongjiang, Yunnan, Hebei, Guangxi, Jiangsu, Shandong, Hunan, Anhui and Beijing.
The background of the birth of the free trade port: the trend of thought of anti globalization has become increasingly fierce, and economic globalization has encountered "headwinds" and "waves of return". In addition to Hong Kong, there is also Hainan as the current free trade port in China. Hainan Free Trade Port will be closed to the customs in 2025 and open to the whole island, including freedom of employment, investment, personnel entry and exit and trade.
Positioning difference between free trade zone and free trade port
The functional orientation of the pilot free trade zone is mainly the "pilot field" of reform and opening up, aiming to form replicable and replicable experience and practices; Up to now, the 21 pilot free trade zones have accumulated 260 system innovation achievements, which are replicated and promoted nationwide, and the work has achieved remarkable results.
(This is also the essential difference between the Free Trade Zone and the Free Trade Port.)
The focus of the free trade port is not on replication and promotion, but on benchmarking the highest international standards. Compared with the free trade pilot zone, the open field is wider and the degree of openness is higher. The free trade port is "system innovation plus preferential policies, plus legal protection, it no longer emphasizes replication and promotion
Differences in preferential policies
There is no preferential policy in the Free Trade Zone, which mainly focuses on system innovation and emphasizes that it can be replicated and promoted. The free trade port is "system innovation plus preferential policies, plus legal protection, it no longer emphasizes replication and promotion.
Benefits of starting a business in the Free Trade Port and Free Trade Zone
——Free Trade Zone——
1. There is no need for the registered capital to be in place and the subscription system;
2. The currency circulation in the Free Trade Zone is relatively free;
3. The import and export approval process is fast, and the system of declaration after advance is implemented;
4. Cancel capital account control and realize RMB convertibility;
5. The registration approval process is short, and the certificate is obtained after the license is obtained;
6. Goods and taxable services processed and produced by enterprises in the Free Trade Zone in the Zone shall be exempted from VAT and consumption tax;
7. The financial industry has national financial support.
1. Free and convenient investment
Hainan Free Trade Port implements the principle of "entering without prohibition". Unless there are mandatory standards and laws prohibiting it, in principle, the government cancels the license and approval, implements the filing system and commitment system for enterprises, and promises that businesses can be carried out if they meet the conditions.
2. Zero tariff for goods trade
After the closure of the whole island, there was no import tariff except for a few products. However, before the closure of the whole island, Hainan set four categories of goods, which were duty-free through list management. The first is means of production, the second is raw and auxiliary materials, the third is means of transportation, and the fourth is consumer goods of residents in the island.
3. Tax rate for reduction and exemption of enterprise and individual income tax
From now on to 2025, Hainan will reduce or exempt the income tax on eligible enterprises and individuals. For encouraged industrial enterprises registered in Hainan Free Trade Port and actually operating, the enterprise income tax will be levied at a reduced rate of 15%. For high-end and scarce talents working in Hainan Free Trade Port, if they stay in Hainan Island for 183 days, the part with actual personal income tax exceeding 15% will be exempted.
4. Service industry opening
Hainan will significantly reduce market access and increase the openness of service industries in tourism, modern service industry and high-tech industries, especially in seed industry, shipping, telecommunications, business services, finance, medical care, education, culture, sports and other key areas. For example, basic telecommunications.