1. Brief Introduction to China (Shanghai) Pilot Free Trade Zone

China (Shanghai) Pilot Free Trade Zone, located in Shanghai, was established on Sept. 29, 2013. The pilot zone is a significant measure taken by the People Republic of China to promote reform and opening-up under the new situation.

1.1. Overall objectives

The overall objectives of establishing China (Shanghai) Pilot Free Trade Zone is: During the course of two to three years of piloting reforms, the China (Shanghai) Pilot Free Trade Zone shall expedite the functional transformation of government, expand the opening up of service sectors and promote the reform of the foreign investment administrative system, and develop headquarter economy and new trade forms; shall explore RMB convertibility under capital account items and opening up of financial services; shall explore to improve Customs，supervision efficiency; and shall create a framework to support investment and innovation activities to cultivate an internationalized and legalization business environment. The China (Shanghai) Pilot Free Trade Zone shall pilot a free trade zone, as measured by international standards, with convenient investment and trading procedure, full convertibility of currencies, effective and efficient goods supervision, and investor-friendly regulatory environment. As such, experience hence gained shall serve nationwide with the new ideas and approaches for opening up of the economy and deepen the reform further.

1.2. Location and the regional advantages

CSPFTZ is composed of four specially supervised zones by the customs, namely, Waigaoqiao Free Trade Zone, Waigaoqiao Bonded Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone, covering an area of 28.78 square kilometers.

Waigaoqiao Free Trade Zone, on the verge of the estuary of Yangtze River, is located in the intersection between golden coastline and golden waterway, close to Waigaoqiao Port. Its planned area is 10 square kilometers, and the operation area with closed Customs supervision is 8.9square kilometers. It is China's first free trade zone, which is also the one with the largest economic scale and the best economic benefit among the specially supervised zones by the customs. In September 2011, Waigaoqiao Free Trade Zone was awarded the first “National Innovation Demonstration Zone of Import Trade Promotion，， by the Ministry of Commerce, which now has become an important base for international trade in Shanghai. Meanwhile, Waigaoqiao Free Trade Zone has made efforts to consolidate and cultivate the ten professional trade platforms of liquor, clocks, automobiles, engineering machinery, machine tools, medical equipment, bio-pharmaceuticals, health products, cosmetics, and cultural products, among which the cultural trade platform has been awarded the first “National Foreign Cultural Trade Base” by the Ministry of Culture.

Waigaoqiao Bonded Logistics Park: close to Waigaoqiao Port, it is China's first logistics park integrating free trade zone and port area, which can enjoy the relevant policies of both the bonded zone and the export processing zone, and waterway resources of Shanghai port,with a closed operation of customs area totaling 1.03 square kilometers. Depending on the advantages in polices and functions of “linking the free trade zone and the port” and “refund upon shipment entering bonded logistics parks”, Waigaoqiao Bonded Logistics Park experiences complementary and joint development with Waigaoqiao Free Trade Zone. Now it has become Northeast Asia's export-oriented multinational purchasing center and the distribution base of Non-ferrous metals and IT parts import.

Yangshan Free Trade Port Area: It is consisted of the land area of Shanghai Luchao Port, East China Sea Bridge and the Small Yangshan Port at the entry of the East China Sea with an operation area of 8.14 square kilometers and a planning area of 14.16 square kilometers. It is a trans-territorial area constructed jointly by Shanghai and Zhejiang Province with special function of uniform customs supervision and regulation. As the core functional area of shanghai’s constructing “Comprehensive Development Experimental Zone of International Shipping”, Yangshan Free Trade Port Area has gathered the distribution centers including communications and electronic products, automobiles and auto parts, high-end food, and brand clothing, which has forms the allocation and distribution base for Europe and America, industrial base of bulk commodity, import trade base for domestic shipping, as well as gathering place for leading shipping enterprises.

Pudong Airport Free Trade Zone: It is located at the west side of the third runway of Pudong International Airport, while Shanghai Waigaoqiao Free Trade Zone and Yangshan Free Trade Port Area are at its north and south sides respectively, with a closed operation area of 3.59 square kilometers. It's one of the key sections on the eastern coastline of Pudong New Area. It gives full play of the advantages as a compound hub of Asia-Pacific airlines, and actively creates “airport service innovation pilot area”. It has introduced the world-renowned multinational air distribution center of electronic products, medical equipment, and luxury products, as well as more than one hundred leasing project. UPS, DHL and FedEx, the three major global express companies, have already developed in the zone and a number of key functional projects have started operations. As a result, Pudong Airport Free Trade Zone has gradually formed the airport- based service industrial chain including the Asia-Pacific air cargo distribution center, finance lease, express transit center, and bonded exhibition of luxury products.

2. Major policies about China (Shanghai) Pilot Free Trade Zone

(1) Notice of the State Council on Issuing the Framework Plan for China (Shanghai) Pilot Free Trade Zone;
(2) Notice of the Ministry of Culture on Implementing Policies for the Administration of the Cultural Market in China (Shanghai) Pilot Free Trade Zone;
(3) Notice of Circular of China Banking Regulatory Commission on Issues Concerning Banking Supervision in China (Shanghai) Free Trade Zone;
(4) China Securities Regulatory Commission: Several Policies and Measures for the Capital Markets to Support and Promote China (Shanghai) Pilot Free Trade Zone;
(5) Eight items by China Insurance Regulatory Commission to Support China (Shanghai) Pilot Free Trade Zone;
(6) Several Opinions on Supporting the Establishment of China (Shanghai) Pilot Free Trade Zone promulgated by SAIC and the policy interpretation;
(7) Implementation Opinions of the Ministry of Transport and the Shanghai Municipal People’s Government on Implementing the Framework Plan for China (Shanghai) Pilot Free Trade Zone and Accelerating the Construction of Shanghai International Shipping Center;
(8) Circular on Relevant Import Tax Policies for China (Shanghai) Pilot Free Trade Zone;
(9) Special Administrative Measures (Negative List) on Foreign Investment Access to the China (Shanghai) Pilot Free Trade Zone (2013);
(10) Notice of Shanghai Municipal Administration for Industry and Commerce on Promulgation of the Provisions on Administration of Enterprise Registration in China (Shanghai) Pilot Free Trade Zone;
(11) Measures for the Recordation Administration of Overseas Establishments of Enterprises in China (Shanghai) Pilot Free Trade Zone;
(12) Measures for the Recordation Administration of Foreign-Funded Enterprises in China (Shanghai) Pilot Free Trade Zone;
(13) Measures for the Recordation Administration of Overseas Investment Projects in China (Shanghai) Pilot Free Trade Zone;
(14) Measures for the Recordation Administration of Foreign-Funded Projects in China (Shanghai) Pilot Free Trade Zone.