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Jiaxing Port & Development Zone
Edit: Shanghai Wecome Business Consultants Co.,Ltd.    Date:2007-8-28

The Administrative Committee of Jiaxing Port & Development Zone governs Jiaxing Port Affair Bureau, Jiaxing Export Processing Zone, Zhapu Economic Development Zone and Zhapu Town with the total area of 54 square kilometers and 74.1 kilometers coastline of Jiaxing city.
Jiaxing Port and Development Zone is located in the south wing of Yangtze River Delta, northern bank of Hangzhou Bay and back to magnificent Hangzhou-Jiaxing-Huzhou Plain. It’s geographical coordinate is east longitude 121 5 36 and north latitude 30 33 42. 

The Advanced Transportation
The Jiaxing Port & Development Zone has fine navigation conditions, and it is one of the less national ports with sea-river coordinated transport.
The Zhapu-Jiaxing-Suzhou channel, Jing-Hang great cannel and Hangsheng channel connect together. 

Motor way:
It is 53km from Shanghai International Deep Water Habor and 74sm from Zhoushan Port. With the Shanghai-Hangzhou Expressway, Zhapu-Jiaxing-Suzhou Expressway, especially the under constructed Hangzhou Bay Great Bridge, Hangzhou-Pudong Expressway and planning Shanghai-Hangzhou Maglev Train, Zhapu-Jiaxing-Huzhou Train, the civic light train, the Jiaxing Port & Development Zone will become an important hub of communication in the Yangtze river delta---Ningbo-Suzhou-Shanghai-Hangzhou-Ningbo economic development intensive area---these are all approximately 100km from it. 

Inland River:
In the rear of Jiaxing Port & Development Zone, the waterway network is well developed. The 300t to 500t Zhajiasu Channel and Liupingshen Channel are connected to Jiaxing Port, linking up to Great Beijing-Hangzhou Cannel, Qiantang River, Huangpu River and Yangtze River, which compose the best conditions for the collection and distribution of the port transportation.
Railway:
The Jiaxing Railway Station is 40km away from Jiaxing Port with a special railway-waterway transfer station for Jiaxing Port. Shanghai Jinshan Petrochemical-Zhapu-Jiaxing-Huzhou Raiway is under planning now. 

Airport:
It is 80km away from Shanghai Hongqiao Airport, 95km away from Shanghai Pudong International Airport and 110kms away from Hangzhou Xiaoshan Airport.

Directory of Some Enterprises

Item

 Name

  Total Investment

Products

Production Scale

Production Scale

1

Teijin Polycarbanate Co., Ltd

$ 500million

Polycarbanate(PC)

200,000ton/year

210,000t

2

Jiahua Industrial Park

RMB  800million

Caustic Soda, Chlorine Gas, Hydrochloric Acid, Hydrogen Gas, Sodium Hypochlorite, Sulfuric Acid, Hydrogen Peroxide, Chlorosulfonic Acid

Steam210t/h  chlorosulphur50,000t/year; Caustic Soda 60,000t/year; hydrogen peroxide50,000t/year;Sulfuric Acid380,000t/year

steam210t/h 
chlorosul
50,000t/y

caustic soda 60,000t/y
hydrogen peroxide
50,000t/y

sulfuric acid390,000t/y

3

 Zhejiang Shell Bitumen Company Ltd.

$80million

Bitumen

 

 

4

Zhejiang Shell Oil and Petrochemical Co., Ltd.

$70million

Lubricant

 

 

5

Jiaxing Iwatani Industrial Gases Co., Ltd

$18million

Oxygen, Nitrogen, Argon, Carbon Dioxide, Hydrogen, mixed gas, lasar gas, standard gas, cold LPG

7000-8000NM3/h

7000-8000NM4/小时

6

Tocuyama Chemical(Zhejiang) Co., Ltd

$60million

fumed silicon dioxide

Phase One:50million ton/year
Phase Two:50million ton more per year

first item:5000t/y
second:plus5001t/y

7

Jiaxing Sanjiang Chemical Co., Ltd

$120million

EO, Liquid Nitrogen, Liquid Oxygen, Liquid Argon, EG, Surfactant

60,000t/year EO6000Nm3/year Air SeperationOxegen
20,000m3 low temperature ethelyne storing tank

60,000t ethylene oxide, 6000Nm3/y o2
30,000m3 low-t ethylene pot

8

Jiaxing Yongming Petrochemical Co., Ltd

$27million

polyethylene, high-density engineering plastics

polyethylene 100,000ton (of which, 50,000ton is engineering plastics

polyethylene100,000tplant plastic 60,000t

9

Zhejiang Hesheng Chemical Co., Ltd

$200million

Organic Silicon Mixed Monomer

120,000ton

130,000t

10

Qing'an Chemical Co., Ltd

$240million

phthalic anhydride,dioctyl ester,dibutyl ester,fumaric acid

50,000ton phthalic anhydride150,000ton caprylic anhydride250,000 platicizing agent,200,000ton isononanol

 

11

Meifu Petrochemical Co., Ltd

$80million

Bitumen, Lubricant

1million ton/year

 

12

Dongyuan Oil Chemical Co., Ltd

$29.8million

stearic acid, edible palm oil, industrial palm oil

60,000ton/year

 

13

Zhejiang Kaipu Chemical Co., Ltd

$10million

fine chemicals, medical raw materials and intermediates

SA2908 100ton5-CIO 100tonHMA10tonnucleotides

 

14

Jiaxing United Chemical Co., Ltd

RMB 80million

Organic Silicon

4500ton/year

 

15

Dagang Chemical Co., Ltd

RMB 30million

Concentrated Nitric Acid

10,000ton/year

 



Deep Water Port
The Jiaxing Port is located in the northern bank of Hangzhou Bay, and it is the first class national opening port which has 74.1 km coastline. Of the 74.1km coastline, 26.5km is suitable to construct producing berths(23.0km deep water coastline, 3.5km shallow water coastline.) With the good conditions, the Jiaxing port can navigate by the variety of 50 thousand ton ships, and it is more 300 days work annually.
The Jiaxing Port has large and wide hinterland and comvient communication. With the some pace of the Shanghai international navigation center and containers hub habor construction, the Jiaxing Port is taking full advantage of the superiority geography, strengthening the division of labor as well as cooperation with Shanghai Port, and will accelerate the speed of the construction of the corresponding wharves to continue the diversion goods, then be an important part of Shanghai international navigation center.
In 2005, there are 17 berths at the pelagic sea of Jiaxing Port, in which 12 berths are for ten-thousands-class ships and 5 are for thousands-class ships. The planning and constructing ten-thousands-class berths are 17. They are variety purposes including pieces groceries berths, container berths, liquid chemical industry berths, break-bulk berths and big and heavy pieces berths. It will gradually form a all-around harbor which is public use, matching expert berths, complete middle and minor berths, business in outside and inside trade.
The handling capacity of the whole Jiaxing Port was firstly broken the million ton limit, and followed into the national coastal great-middle harbors in 2001. The capacity in 2005 reached to 17,040,000 ton and had established trade connection with about 30 nations and areas harbor including Japan, Southeast Asia, America, Europe and Oceania, ect.
There are 5 ten-thousands-ton-class deep-water berths under construction, and it has basically completed 2 ten-thousands-class and 5 thousand-class berths. In 2010, the productive ten-thousands-ton-class berths will be 37, thousands-class berths will be 13, and the whole Jiaxing Port’s handling capacity will be more than 40 million ton.
In 2020, the productive ten-thousands-ton-class deep-water harbor will be 54, with the 64,500,000 ton handling capacity. 

Industrial park fully developed & Land space availability
Jiaxing Port & Development Zone is composed of Zhejiang Zhapu Provincial Economic Development Zone (including an Industrial Park) and National Jiaxing Export Processing Zone.
The traditional industries in Jiaxing Port & Development Zone are mainly garments processing, dyeing, bags, plastics, and hardware standard parts. Recently, as a result of changes in industrial structure in the zone, chemical, electro-mechanical, papermaking, fiber, and tertiary industry gained profound development here. Chemical enterprises take a large proportion in number and output value. Along with the establishment of enterprises well known at home and abroad, for example the Briton/Dutch Shell Company, Teijin Kasei Chemical Company (Japan), Sanjiang Chemical Company, Qingan Chemical Company, Hesheng Chemical Company, Iwatani Industrial Gases (Japan), Tokuyama Chemical Company (Japan), and Jiaxing Chemical Group, a chain of chemical industry is taking shape in the zone. According to the plan, emphasis will be put on port-orientated heavy chemistry, new chemical materials, functional plastics, polymeric materials and fibers. 

Information of Industry Park and land
The requirements of industrial park for building a new plant and the registration procedures
Procedure of registration is as follows:
Land bidding and auction è project applying report and articles for approvals è obtain approval certification è business registration è opening bank account, customs registration, tax registration, and foreign exchange registration è construction and operation. 

Is the land developed? (Blocks structure finished, Streets around the blocks, sewage system, Pipe racks around the blocks)
Generally, all land supplied shall realize connections of road, power, water (way in and way out), wastewater disposal and communications, and the level alignment of the land.
Geological ground description/soil data/ piling requirements
Land in this area is mainly mud clay and sandy clay. Neighboring the sea, the land is flat. There is the range of Tianmu Mountain, with a total length of 12km. the groundwater is about one meter beneath, making no harm to the cement.
Steam
300tons/hour
The volume pressure of the boiler: 5.3 Mpa
First degree extracting stream: 1.27 Mpa
Second degree extracting stream: 0.78 Mpa
The largest pressure level provided for the factory in the zone is 4.3Mpa. should factories have special requirements, they can negotiate with the thermoelectric factory. 

Electricity
Capacity: 240 as well as 400V required/(total demand of about 5MW)
110kv for the development zone shall provide the power. 

Natural gas
2000 m3/hour 

Waste water treatment 
General information of public waste water handling center: situated on the northern bank of the Hangzhou Bay, the center is expected to have a handling capacity of 55o,ooo tons m3/d. the first phase with a handling capacity of 300,000 tons m3/d was put into operation in November, 2002.
What are the limitations by the environmental offices (max, min)?
Third level of the Comprehensive Effluent Standards of waste water (GB8978-1996) of PRC shall be reached.
Treatment fee per m3
Fees vary in accordance with COD level in the wastewater. One level equals COD of 100mg/L. 

Medical Service
Jiaxing No.1 Hospital (located in South Hexin road): Formally know as “The Sacred Heart Hospital” founded by French Catholic missionary in 1920, it is one of the three largest comprehensive hospital in Jiaxing. The hospital takes up 40,920 square meters with floor space of 20,000 square meters with 510 beds and more than 32 clinic medical technology offices and 32 special clinics. It receives 10,000 impatients annually and 460,000 outpatients. The number of staff and the specialized physicians. The Provincial Health Department awarded it the “provincial civilized hospital”in 1993. It was awarded “Zhejiang Province high medical college excellence education hospital” by the Provincial Health Department and the Provincial Education Department.
Jiaxing No.2 Hospital (located in Huan Cheng Bei Road): Formally known as “Evangel Hospital” founded by American missionary in 1895, it is one of largest comprehensive hospital in Jiaxing with complete subjects and abundant technological personnel. The outpatient department covers 41 medical sections, 16 medical technology offices and 6 auxiliary offices. The hospital receive 400,000 outpatients annually. It was awarded the title of “provincial civilized hospital” for several times by Provincial Health Departmen and retains the title of “municipal civilized unit” continuously.
Traditional Chinese Medicine Hospital (located in west zhongshan road): It is comprehensive hospital specializing in Chinese traditional medical treatment in Jiaxing. 

Climate
Air quality level : Grade II
Air pollution index (API): 65
Annual average temperature: 15.8℃
Annual average relative humidity: 82.5%
Max relative humidity: 90-93%
Min relative humidity: 8-13%
Rainy season: January, April, June, December
Annual average rainfall: 1,250mm
Max rainfall(mm/h): 88.1 (Sep.14,1961)
Snow season: January-february
Average Wind Force: 3.3m/sec
Max Wide Force: 15.6m/sec
The average temperature of the coldest month: 3.9℃
The days without frost :225days 

Tax comdition / finances
What are the taxes in your province?
(1)Taxation
Foreign-invested enterprises in China or foreign enterprises receiving income from China are liable to pay some of the following taxes:
Foreign-invested enterprises (FIE) corporate income tax, value added tax, business tax, consumption tax, contract tax, real estate tax, land value appreciation tax, stamp tax, vehicle and vessel license tax. Moreover, customs duties should be paid in of import and export business. 

(2)Categories
1. FIE Corporation Income Tax
1. In general, the rates of FIES in China coastal open areas are 25%.
a. The following items are not deductible: Acquisition of fixed assets, Costs of intangible assets, Interet on loans for capital contribution, Income tax payment, Donations other than those for public welfare or relief in China, Royalties paid to head office, Expenses not related to the company’s business operations and losses, Overseaa social security payments for staff, Fines and surchanges for illegal business operations and losses due to confiscation of property, Management fees (except for non-investment set-ups paying management fees to their head office), overdue fines and other fines foe tax payment, Other expenses not to related to the production and business operations.
b. In general, depreciation is computed using the straight-line method. No further depreciation can be provided for fixed assets, which have been fully depreciated. The minimum asset depreciation periods are: 

Buildings and structures

20years

Machinery and other productive equipment

10years

Electronic equipment, means of transport (except train and ship), other appliance and tools, and furnishings related to production or business operations.

5years


Buildings and structures 20years
Machinery and other productive equipment 10years
Electronic equipment, means of transport (except train and ship), other appliance and tools, and furnishings related to production or business operations. 5years
c.Corporate Income Tax Incentives
Foreign-funded manufacturing enterprises with an operation term exceeding 10 years is exempted from the corporate income tax for 2 years starting from the first profit-making year and allowed for 50% reduction for the following 3 years. For export-oriented enterprises(70% of the products exported) and High-tech enterprises identified by Zhejiang provincial governent, the part of income tax goes to Jiaxing Port & Development Zone from the 3rd to 5th profitable year will be refunded. 

2. Value Added Tax (VAT)
VAT is levied on the transfer of taxable goods and services at each stage of the production and sales process. It is also charged on goods imported into China. VAT is payable under the following circumstances:
When a company sells its goods in China, the seller collects the VAT from the buyer.
When a company imports goods from overseas, it has to pay VAT to customs, which collects on behalf of the National Taxation Bureau.
a. The VAT Rate
The VAT rate most goods is 17%. The exceptions are:
Basic necessities such as foodstuff, edible oil, drinking water, heating, books, newspapers, magazines, animal feed, fertilizers ect, which are subject to VAT rate of 13%.
Small-scale taxpayers, which are subject to a VAT rate of 6%.
b. VAT Computation-Grnel Formula
VAT Liability=VAT payable on domestic sales
+VAT paidable on exports sales
- VAT paid on locally-sourced materials (I)
- VAT (deemed paid) on bonded raw materials(II)
VAT Rebate=VAT rebatable on export sales(III)
-VAT rebatable on bonded raw materials
(I):Includes utilities costs but not depreciation costs
(II): Raw materials may be imported bonded i.e. free of import duty and exempted from VAT if in the “Process Trade Logbook”
(III):The current rate of rebate of most manufactured goods is 13-17%. 

3.Business Tax
The busniess tax is payable by enterprises that provide taxable services, assign intangible assets and sell immovable property. 

Taxable Items

Tax Rate

1.Construction

Cultural activities and sports

Post and telecommunications

transportation

3%

2.Entertainment

5%-20%

3.Service industries

5%

4.Assignment of intangible assets

5%

5.Sales of fixed assets

5%

6.Finance and Insurance

5%



4.Consumption tax
Consumption tax is imposed on producers or importers of luxurious products, which are illustrated in the Interim Regulation of Consumption of the People’s Republic of China. 

5.
Real Estate Tax or Property Tax
The property tax is an annual tax on the value of properties, payable by the property owner. The tax payable is 1.2% of the assessed value of the property. 

6.Land Appreciation Tax
The land Appreciation Tax is imposed on the transfer of land use rights. The tax rates vary according to the seller’s gains on a transfer of land. 

Appreciation Amount

Tax Rate

≤50% of cost

30%

50%but≤100% of the cost

40%

100%but≤200% of the cost

50%

200% of cost

60%


7.Contract Tax or Deed Tax
The contract tax is payable whenever there is a change in the ownership or the right to use land/properties through sale, mortgage, gift or exchange. The tax rates are as follows: 

transaction

Contract/Deed Tax

Sale

3%of the sales price

Donation

3%of market price of land/property

Exchange

Exempted if the two properties are of the same price. 3% tax is collected on price difference if any.

8.Stamp Duties
Enterprises or individuals that execute or receive legal documents may be subject to stamp duties. Duties documents include:
Contracts on sale of goods, processing, construction, leasing of properties, transportation of goods, warehousing, loan, insurance, technology tansfer.
Documents on tansfer or subdivision of copyrights,trademarks and patents.
Business books of account.
Permits and licenses including sales permit, trademark license, land use certificate.
Other documents as stipulated by the Ministry of Finance.
Stamp duties differ for different documents and ranges from 0.03-0.1%. 

9.Vehicle and Vessel License Tax
The vehicle and vessel license tax is imposed on owners/users of vehicles and vessels.
Tax Table (omitting vessels) 

 

Categories

RMB per year per set

Passenger Vehicle

No more than 7 seats

180

8 to 30 seats

220

More than 31 seats

240

Motor tricycle/ Motorcycle

 

60

 

48

truck

 

56 per ton


10.Customs Duties
a. Customs duties are collected at the point of imported goods entry in China. The amount payable is based on assessed value of impoets, which is the final price inclusive of price of goods, transportation charges, insurance and other fees before unloading. The duty rate of goods varies significantly. The average rate is about 12%.
b.Incentives
Foreign-funded enterprises engaged in “encourage foreign investment industries”that are enumerated in “Catalogue for the Guidance of Foreign Investment Industries” may import production equipment within the volume of investment for their own use and the related technology, auxiliary materials, spare parts according to the import contract without paying customs duty and VAT(excluding those listed in “Catalogue of Imported Commodities not Entitled for Tariff Exemption for Projects with Foreign Investment”) 

Tax-refund for reinvestment
An existing foreign-funded enterprise making reinvestment with its profits to add registered capital or set up a new foreibn-invested enterprise with operation period of no less than 5 years will receive a 70% rebate on the corporate income tax paid on the basis of the amount reinvested with the approval by the tax administration. When the reinvestment mentioned above is made for establishment of an export-oriented or high-tech enterprise with an operation period of no less than 5 years, it will obtain a full rebate of the corporate income tax paid on the amount reinvested.



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