China has implemented preferential policies which are formulated according to the laws and administrative regulations of Chongqing, with the aim of speeding up investment in the Lianglu-Cuntan Bonded Area of Chongqing (hereinafter referred to as the bonded port area) and to attract domestic and foreign enterprises, as well as to facilitate the development of an open economy in Chongqing and western China.
The application scope of preferential policies shall be defined within the boundary points in the State Council's Approval on Establishment of Lianglu-Cuntan Bonded Area of Chongqing (GH  No 100).
Chapter 1 Import and Export Tax and Regulatory Policy
Article 1. Incoming international cargo arriving into the bonded port area is entitled to protective tariffs, except as otherwise provided in laws and administrative regulations.
Article 2. Cargo transactions between enterprises in the bonded port area are not subject to VAT or consumption tax. Cargo directly exported by enterprises in the bonded port area is exempt from VAT and consumption tax. The consumption of water, electricity and gas (steam) for production of exported cargo by enterprises within the bonded port area qualifies for VAT refund at the export rebate rate applicable according to current policies.
Article 3. Domestic cargo entering the bonded port area is viewed as export. The tax rebate is applicable at a rate conforming to the existing policies and regulations on exported cargo.
Article 4. Export tax rebate can be made by enterprises outside the bonded port area according to the statutory tax rate of VAT export tax rebate - with export declaration issued by the Customs and other related documents - when productive enterprises in the bonded port area purchase listed raw materials for the purpose of production of exported cargo in China, and when the raw materials do not qualify for the export tax rebate. The rate after adjustment shall prevail where the export tax rebate rate of listed raw materials has been adjusted, and productive enterprises in the bonded port area want to purchase them in China for processing and export.
Article 5. Customs clearance procedures shall be applied according to the actual state of taxed cargo, should the cargo in the bonded port area enter the domestic sales market.
Article 6. Except as provided otherwise in laws and administrative regulations, the following incoming cargo from overseas into the bonded port area are exempt from customs duties and import linkage taxes: machinery and equipment for productive infrastructure, materials needed for the infrastructure construction of production plants and storage facilities in the bonded port area; the machinery, equipment, molds and spare parts for maintenance for the production of enterprises in the bonded port area; and a reasonable amount of office supplies for personal use of enterprises and administrative bodies in the bonded port area.
Article 7. The import and export quota and license management is not implemented on the cargo between the bonded port area and overseas market, except as provided otherwise by laws, administrative regulations and rules.
Article 8. Incoming and outgoing cargo between the bonded port area and overseas market may go through the procedures of centralized declaration with the approval of the Customs. Enterprises shall fill in the declaration of inventory data and import and export declarations within a natural month and apply for centralized declaration to the specified customs offices within 2 months.
Article 9. Import and export taxes will not be imposed on the circulation of cargo between the bonded port area and special places under special supervision of Customs or bonded supervision areas.
Chapter 2 Entry-Exit Inspection and Quarantine Policy
Article 10. The policy concerning a one-time inspection and quarantine check shall be implemented on cargo that enters or exits the bonded port area.
Article 11. Export of live animals, live poultry, aquatic animals and inspection-free agricultural products is exempt from inspection and quarantine fees. The inspection and quarantine fees on other exported agricultural products are halved.
Article 12. The inspection and quarantine fees are 30 percent lower for cargo included in Chapter 61 (knit or crochet clothing and clothing accessories) and Chapter 62 (non-knit or crochet clothing and clothing accessories) in The Catalog of Entry-exit Inspection and Quarantine.
Chapter 3 Incentive Policy of Finance and Tax
Article 13. According to the central government's development policies for western China, a 15 percent preferential corporate income tax rate is applicable to new enterprises of industries encouraged by regulations concerning the bonded area.
Article 14. The municipal government grants a full refund of the locally retained portion of corporate income tax of new large enterprises engaged in warehousing, distribution, procurement and logistics, and enterprises identified as high-tech export processing and trade enterprises before 2012 in the bonded port area, in the first two years following the first profitable year, and a 50 percent refund from the third to the fifth year.
Article 15. For profits of international air freight companies established in the bonded port area before 2012, the municipal government grants a three-year full refund for the locally retained portion of corporate income tax.
Article 16. The government will grant preferential rates, based on a certain proportion of the business tax collected from new warehousing and logistics enterprises in the bonded area from 2010 to 2012, for profits from cargo transport, warehousing, loading and unloading operations.
Chapter 4 Foreign Exchange Policy
Article 17. Transactions of the cargo trade between enterprises in the bonded port area and domestic enterprises outside the bonded port area can implement RMB-denominated settlement or foreign currency-denominated settlement. Settlement currencies for incidental charges concerning cargo trade can follow commercial practices.
Article 18. Enterprises in the bonded port area that fail to provide relevant payment vouchers and commercial documents during the remittance can provide relevant materials to remittance banks within 90 days after the remittance. Write-off and endorsement and other procedures can be handled by remittance banks according to regulations.
Article 19. Enterprises in the bonded port area that directly import cargo from abroad, or purchase cargo of foreign enterprises inside the bonded port area or from domestic areas outside the bonded port area can make overseas payment through foreign exchange accounts by providing valid vouchers and commercial invoices to banks.
Article 20. Earnings from foreign liquidation can be used for domestic reinvestment or can be remitted abroad if liquidation involves enterprises with direct foreign investment from outside the bonded port area.
Chapter 5 Lease Incentives Policy of Warehouses and Factories
Article 21. Enterprises that lease factories, warehouses and yards in the bonded port area are entitled to lease incentives. Enterprises with leases starting in 2010 for a period exceeding 2 years are entitled to a full refund of six months month from the date of lease and discounts on the lease after six months.
Chapter 6 Others
Article 22. The preferential policies will come into force on date when the bonded port area is on the run.
Chongqing lies at the convergence of the Yangtze and Jialing rivers.