Chapter 5 Financial Management Article 18 Domestic banks and foreign (joint) financial institutions established in this city with the approval of the People's Bank of China are allowed to enter the bonded area to establish business institutions and operate domestic and foreign currency and foreign exchange businesses in the area. The currency management measures for the bonded area will be separately formulated and promulgated in accordance with relevant national management regulations. Article 19 Chinese-funded enterprises in the bonded zone are allowed to open foreign exchange spot accounts. The foreign exchange earned from their operations and the after-tax balance will all belong to the enterprise within five years from the establishment of the enterprise and be deposited into the foreign exchange spot account. Chapter 6 Tax Preferences Article 20 In addition to enjoying the various tax treatments listed in (Several Provisions of Shanghai Municipality on Encouraging Foreign Investment in Pudong New Area), foreign-invested enterprises in the bonded area also enjoy relevant tax preferential treatments stipulated in this chapter.

Chinese-funded enterprises in the bonded zone that invest in and operate products and projects that are encouraged by the state can enjoy prescribed tax incentives after individual verification. Article 21 Goods entering the bonded zone from abroad are exempt from customs duties, unified industrial and commercial tax or product tax (value-added tax), unless otherwise stipulated by the state.

When goods that enter the bonded area duty-free are transported to non-bonded areas, customs duties and unified industrial and commercial tax or product tax (value-added tax) will be levied according to regulations.