Regulations on Encouragement of Foreign Investment of Inner Mongolia AutonomousRegion (II)
Date of Issue: June 29,1996
Area Applied: Inner Mongolia Autonomous Region
Issued by: The 7th Standing Committee of People Congress of Inner Mongolia Autonomous Region
Chapter IV Other Preferential
Article 14 Any foreign investment enterprise which need short-term or other necessary loans in their production and circulation, has the priorityin obtaining loans after the ratification of certain bank.
Any foreign investment enterprise can apply RMB loan from bank with mortgage in the form of cash, real estate or any other kind of property stipulated by the state.
Article 15 Under the supervision of Foreign Exchange Administration Bureau, foreign investment enterprises can get loan from foreign banks or sell or buy foreign exchange within themselves.
In order to assure the balance of foreign exchange and in thecondition of application by the enterprises and ratification by the authorities on foreign economy and trade, foreign investment enterprises can purchase some local goods which are not within the limitation of quota or export license.
Article 16 Foreign Investment enterprises can decide of their goods sold in China with the exception ofthe goods which have state-stipulated and uniformed national prices.
If the goods sold in China by the foreign investment enterprises can substitute imported goods, the sale can be regarded as export. Hence upon the application of the foreign investment enterprises and the ratification of related authorities, the foreign investment enterprises can partly or wholly get the foreign exchange of the sale.The enter prises can enjoy reduction or exemption of uniformed business tax.
Article 17 If foreign investment enterprises have deficit in a year, the deficit can be remedied by the profit of the second year.If the profit of the second year can not remedy the deficit, it can be remedied by the following years. The maximum period is 5 years.
Article 18 Foreign investment enterprises can appropriately raise the rate of depreciation after the ratification of the related authorities.
Article 19 Water, power, gas and telecommunication facilities neededby foreign investment enterprises and their public welfares are to beensured according to their need. The enterprises are freefrom congestion fee and buying bonds on power and building.
Article 20 Foreign investment enterprises, which producefor exportor possess advanced technology, and those engaged in energy, transportation, construction of infrastructural facilities, natural resources development, rawmaterial production, can enjoy 50% reduction on the charges on the supply of basic facility services.
Article 21 The foreign investment enterprises shall submit the planfor their products transportation to the relevant shipping departments who will give them priority in such services.
Article 22 Upon the ratification of the related authorities in foreign economy and trade of Inner Mongolia Autonomous Region, foreign investment enterprises are allowed to barter for raw materials, technology and equipment they need from Soviet Union, Mongolian Republic and Eastern European countries with their own products.
Article 23 The domestic materials needed by the foreign investment enterprises can be either supplied by the materials departments or purchased in thedomestic market. Priority should be given to the materials foreign investment enterprises needed.
Article 24 The construction of foreign investment enterprises and their public utility projects can enjoy the priority as the key projects of Inner Mongolia Autonomous Region. The building materials needed by their projects can be supplied by the local material department with priority.