(Adopted by the 24th ordinary meeting of the Municipal Government of 22 September 2013, No. 7 of 29 September 2013, by the Decree No. 7 of the Shanghai People's Government of 29 September 2013, to be issued effective 1 October 2013)

Chapter I General

Article 1

In order to advance the establishment of the Free Trade Test Zone in China ( Shanghai), this approach was developed in accordance with the decision of the Standing Committee of the National People's Congress to authorize the State Department to temporarily adjust the administrative approval of the relevant legal provisions in China ( Shanghai) Free Trade Test Zone, the overall programme of China ( Shanghai) Free Trade Test Zone and relevant laws, regulations and regulations.

Article 2

This approach applies to the China ( Shanghai) Free Trade Test Zone, which was approved by the Department of State (hereinafter referred to as the “Trade test area”). The IGO covers the Overseas Highway Tax Zone, the Overseas Highway Regime Logistics Zone, the RAE and the Upperi Orientale Airport Integrated Tax Zone, which covers a total area of 28.78 square kilometres.

Article 3 (Regional functions)

The expansion of open and investment management institutional reforms in services from the IPR area, the promotion of trade transition upgrading, the deepening of openness in the area of finance, innovative regulatory services models, the exploration of the establishment of an administrative system adapted to the international investment and trade rules system, the development of an internationalized, rule of law-making business environment and the positive role of the country.

Chapter II

Article IV

The city has established the China ( Shanghai) Free Trade Test Zone Management Committee (hereinafter referred to as “the Commission”). The Board has sent agencies to the municipalities to implement, in particular, the self-UNCTAD pilot sector reform mandate, integrated management and coordination of administrative matters related to the TCPR.

The relevant sectors of the city and the municipalities, such as the new area of the city, should strengthen collaboration and support the work of the Commission.

Article 5

In accordance with this approach, the Committee performs the following functions:

(i) To advance the implementation of the pilot work on the implementation of the reforms of the ADB, to study and organize the implementation of the IPR development planning and policy measures and to develop the relevant administrative system of the ADB.

(ii) Administrative work in the area of investment, trade, financial services, planning of land, construction, greenization, environmental protection, labour personnel, food medicine regulation, intellectual property, culture, health, statistics.

(iii) Leadership in the administration of the sectors such as business, quality, tax, public safety, etc. in the context of UNCTAD's pilot area; coordination of the administration of the sectors such as customs, testing, quarantine, maritime, financial, etc. in the area of trade tests.

(iv) Undertake security reviews, anti-monopoly reviews.

(v) To organize administrative law enforcement in the areas of urban management, culture, in the context of the IPR area.

(vi) To provide guidance, advice and services to enterprises and relevant agencies in the self-Tuniversal area for integrated services from the UNCTAD pilot area.

(vii) To organize regulatory information-sharing mechanisms and platforms for the self-paced areas to disseminate public information in a timely manner.

(viii) Integrated guidance on the activities of the Bindus and the development of construction activities in the UNCTAD pilot area, and coordination of the development of major investment projects in the self-UNCTAD pilot area.

(ix) Other responsibilities conferred by the municipality.

Relevant administrative matters, which were previously vested in the Board for Management of the Shanghai Highway Tax Region, the Committee for the Management of the Carriage Tax Region, and the Shanghai Integrated Insurance Tax Zone Management Committee, are governed by the Board.

Article 6 (Comprehensive law enforcement)

The Commission's integrated law enforcement agencies perform the following duties under the law:

(i) The centralization of the exercise of administrative sanctions in the area of urban management, the cultural sphere, and the right to administrative coercive measures and administrative inspections relating to the right to administrative sanctions.

(ii) The centralization of the exercise of the administrative penalties exercised by the Ministry of Statistics, in accordance with laws, regulations and regulations, and administrative coercive measures and administrative inspections relating to the right to administrative sanctions.

(iii) The municipality decides that other administrative penalties exercised by the Integrated Law Enforcement Agencies of the Commission shall be exercised.

Article 7

The Board should establish a place to focus on administrative services and management matters, based on the regional bureaux and business needs of the TCPR.

Article 8

In the sectors such as customs, tests, quarantine, maritime, commercial, quality, tax and public safety, the establishment of the IGO is governed by the law by the relevant regulatory and administrative responsibilities of the IPR area.

Article 9 (Other administrative matters)

In accordance with their respective responsibilities, the relevant sectors of the city and the Philip New Zone Governments assume other administrative matters in the self-UNCTAD test area.

Chapter III Investment management

Article 10

In accordance with the overall programme in China ( Shanghai) Free Trade Test Zone, there is an expansion in the areas of financial services, shipping services, trade services, professional services, cultural services and social services, the suspension or removal of investor-quality requirements, equity rates, operating scope restrictions.

In line with the pre-emption roll-out and industrial development needs, UNCTAD has continuously explored expanding areas, pilots and corresponding institutional innovation measures.

Article 11

The pre-commercial access to foreign investment has been introduced in the UNCTAD pilot area, and the management model of the special management measures (a negative list).

In addition to the Special Management Measures for Investment Access to Foreigners (NPRs), in accordance with the principle of consistency in internal foreign investment, the Foreign Investment Project was converted to a reserve, except for approval by the Department of State for domestic investment projects; and for approval of the charter of the Foreign Investment Enterprise contract to a reserve management.

Investment access to special management measures (a negative list) from outside trade pilots is published by the municipal government. Foreign-investment projects and business-to-investment enterprise reserve schemes are developed by the municipality.

Article 12

Enterprises from the UNCTAD test area to offshore investment start-up businesses by introducing a case-by-case management approach to external investment projects.

External investment start-up business and offshore investment projects, developed by municipal governments.

Article 13

The registration of capital recognition in the UNCTAD test area has been carried out, with corporate shareholders (initiator) self-agreed with respect to their contributions, the modalities of funding, the duration of funding, etc., and documented in the corporate charter, except that the laws, administrative regulations provide otherwise for the registration of a particular enterprise.

The corporate shareholders (initiator) are responsible for the authenticity, legitimacy of the payment of funds and are held accountable to the company on the basis of their contributions or the value of the purchase.

Article 14.

Enterprises that obtain business licenses from the UNCTAD test area may engage in general production operations; they may apply to the competent authorities after obtaining a licence of business.

The law, administrative regulations stipulate that the establishment of an enterprise must be subject to approval and shall be subject to approval by law prior to the application of a licence for business.

Chapter IV Trade development and facilitation

Article 15

The UNCTAD Test Zone actively develops the headquarters economy and encourages transnational corporations to establish Asia-Pacific regional headquarters in the TCPR area to establish operational centres that integrate the functions of trade, logistics, settlement and etc.

The transition to basic operations, such as international trade, warehousing logistics, processing and manufacturing, has been promoted in the UNCTAD test area, developing new trade operations such as off-shore trade, international trade settlement, international commodity transactions, financing leases, shipment taxes and cross-border e-commerce.

Enterprises in the UNCTAD test area are encouraged to integrate into international trade and to achieve integrated foreign trade.

Article 16

The TA pilot area plays a joint role with the port of Excellencies, the seamounts deepwater, the port hub of the port of jeopardy and strengthens synergies with the offshore shipping industry assembly area in the TA pilot area.

Industrial development of shipping finance, international ship transport, international ship management, international ship fleet management, international shipping broker management, international shipping brokers, etc. The development of air mails from the UNCTAD Test Zone has increased the opening of the route and the right to navigation.

The International Ship Registration Policy, which is competitive in the UNCTAD Test Zone, establishes an efficient ship registry system. Enterprises in the UNCTAD test area may register “Caramounts in China” as seaports and engage in international shipping operations.

Article 17

Access to and goods between and outside the UNCTAD test area allows businesses in the area of trade tests to move the goods forward into the area through the import of voucher information. Access to and goods between and outside the UNCTAD Test Zone, the introduction of a model of thinkable cards, e-information networking management, and the improvement of the regulatory regime of the inventory as compared to the notes, voucher management, card-based real-currence. Enterprises in the area of trade tests are allowed to choose their own time to apply for testing prior to the departure area.

Regulatory models for the promotion of the classification of goods from the UNCTAD test area. For items such as collateral storage, processing, etc. in the self-continuation area, under the control of the levies of goods, the import, export or transit of goods through trade zones or international transfers, shall be governed by the state of the shore cargo; and the regulation of domestic trade goods entering specific areas of the IPR area.

Article 18

The new business regulatory innovation pilots have been advanced from the UNCTAD test area to establish regulatory models that are adapted to the trade in services, offshore trade and new trade business development needs.

The UNCTAD Test Zone has actively developed international transit, assembly and divisional operations. The model of “One declaration, one test, one releasing”.

Streamlining the flow of goods from the UNCTAD test area and promoting the transfer of goods between enterprises in the TA pilot area, in line with the “concentration declaration, self-shipment”.

The establishment of an export and import commodity test identification body was encouraged. Mechanisms for the testing of results by third-party inspection bodies were established.

Chapter V Financial innovation and risk prevention

Article 19 (Financing innovation)

In the area of financial innovation and pre-emption, the establishment of an inter-active mechanism for financial reform innovation in the TA pilot area and the construction of the Shanghai International Finance Centre was established.

Article 20 (Perability of capital projects)

Capital projects are converted from the UNCTAD test area, and innovative business and management models are used in the context of risk management.

Article 21

An autonomous pricing mechanism for financial institutions that are responsive to the economic development of entities has been developed in the context of the UNCTAD test area and has been moving towards marketization of interest rates.

Article 2 (Central use of national currencies)

Cross-border people's currency settlement operations from the UNCTAD test area are distracted from prior approval. Enterprises in the UNCTAD test area can operate in the context of their own business needs, in order to facilitate cross-border use of national currencies.

Article 23.

The establishment of a system of foreign exchange management that is adapted to the development needs of the TA pilot area and the promotion of trade investment facilitation.

Article 24

In accordance with the needs of the TA pilot area, and with the approval of the national financial management, various levels, functions, different types of financial institutions are allowed to enter the TC test area, allowing financial markets to establish an international-oriented trading platform within the TCPR area to provide multi-tier and full-scale financial services.

Article 25

The city has strengthened its coordination with national financial authorities to establish regulatory and risk-protection mechanisms for adaptation to financial business development in the context of the national financial management system.

Chapter VI Integrated management and services

Article 26

In line with the requirements of internationalization, rule of lawization, UNCTAD has established an efficient and efficient management and service model to promote investment and trade facilitation.

Article 27

Information produced or obtained by the Commission and the relevant departments in the course of their duties, management provisions, procedures and rules should be made public, transparent and accessible to enterprises.

Business views in the IPR area should be sought proactively in the process of formulating and adapting policy measures, institutional norms.

Article 28 (Option mechanism)

The business sector of the Trade and Technology Division has established an external investment project approval (relead case) with tax, quality, etc. and a mechanism for business creation (referred) “Opplication, first-commissioning” work. The business sector harmonizes the receipt of the applicant's submissions and harmonizes access to the relevant instruments.

The Board established a mechanism for the process of “Option, first-commissioning” for out-of-business claims in the UNCTAD pilot area, to harmonize the receipt of the applicant's submissions and to harmonize the submission of the relevant instruments to the applicant.

Article 29

The Board and the relevant sectors should exercise dynamic regulatory oversight, in line with the reform needs of the ADB, to optimize management processes and management systems.

Law enforcement inspections from the UNCTAD test area should be made public in a timely manner. Information on food medicine safety, public health, environmental protection and safe production should also be publicly addressed and necessary warnings and preventive recommendations.

Article 31 (Security Review and Countermonopoly Review)

Work mechanisms for security review and anti-monopoly review have been established in the UNCTAD Test Zone.

Investment projects or businesses fall within the scope of security review, anti-monopoly review should be brought promptly to safety reviews, anti-monopoly reviews.

Article 31 (Protection of intellectual property)

Strengthening the protection of intellectual property rights in the TA test area and encouraging and supporting specialized agencies to provide services such as intellectual property mediation, human rights assistance.

The Board is responsible for administrative mediation and treatment of patent disputes in the area of trade tests.

Article 32 (Ourer annual report)

The introduction of the Annual Report System of Enterprises in the UNCTAD Test Zone is an indicative system. Enterprises in the UNCTAD pilot area should submit annual reports to the business sector. The annual report should inform society, with the exception of commercial secrets. Business is responsible for the authenticity and legitimacy of the annual report.

The annual report of enterprises in the UNCTAD pilot area was prepared separately.

Article 33 (Letter information system)

The establishment of an enterprise credit information record, openness, sharing and use system in the TCPR area, and the implementation of a compliance incentive and discreditation mechanism.

Article 34

The WCO has established a mechanism and platform for the sharing of regulatory information from the EPZs to achieve customs, testing, sanitary, maritime, financial, development reform, business, quality, finance, environmental protection, safe production regulation, port shipping, and support the optimization of management processes, the provision of efficient and accessible services, and the strengthening of post-disaster regulation.

Article XV (Comprehensive assessment)

The city has established an integrated assessment mechanism for industrial information tracking, regulation and disaggregation in the TCPR area.

The municipal development reform sector will establish working mechanisms with the relevant municipal departments and regulators to conduct an integrated assessment of the overall sector, the pilot implementation of industrial enterprises and risk prevention, and to provide an assessment report to further the expansion of open areas, pilot content and institutional innovation measures.

Article 36 (Administrative review and proceedings)

The parties may apply for administrative review or administrative proceedings in accordance with the provisions of the National People's Republic of China Administrative Review Act or the People's Republic of China Administrative Procedure Act.

Article 37 (Resolvation of commercial disputes)

Business disputes may be brought before the People's Court or, in accordance with the agreement, for arbitration or commercial mediation.

To support this municipal arbitration body, in accordance with laws, regulations and international practice, to improve the rules of arbitration and to increase the level of professionalism and internationalization of commercial disputes in the self-tested area.

In accordance with international practice, the specialized mediation agencies supporting various commercial disputes take a variety of forms to resolve business disputes in the TA test area.

Chapter VII

Article 38 (Annex)

The executive approval matters assumed by the Commission, the specific management services and the executive branch's integrated law enforcement agencies are centralized in the exercise of administrative sanctions, which are clearly defined in the annex to this approach.

Article 39 (Actual date of application)

This approach has been implemented effective 1 October 2013.

Annex

Administrative clearance matters assumed by the Committee

(i) Approval of enterprise investment projects commissioned by investment management.

(ii) External investment enterprises commissioned by commercial management to establish and revise approvals, and offshore investment start-up business approval.

(iii) Planning management-mandated construction project selection, approval of planning conditions, construction of a land-use planning licence, construction of engineering planning design programmes, approval of construction engineering planning licences, and construction of the construction of the engineering planning process.

(iv) In addition to new land-use zones, land management commissioned national land-use transfers and concessions for construction projects.

(v) Construction of a licence for construction projects commissioned by management, construction of preliminary design clearances for projects, construction of construction permits, use of a variety of facilities for urban road operators, temporary entry and road use permits, security protection of construction permits in the area of bridge safety, exhumation of road permits, road constructation and cross-roads, cross-road clearances clearances, the establishment of additional pre-emptive licences for the replacement of vehicles, ex-invester investment applications for the first construction of engineering and construction enterprises.

(vi) The construction project commissioned by the Greenhouseholding Administration is in line with the approval and completion of the Greenization Programme, the temporary use of green-ground licences (including public greenfields), the transfer, logging (other than Guang trees) licence, the adjustment of licences granted within the public green area, the installation of service facilities, the placement of outdoor advertising facilities or the promotion of materials, posting of markes, flagship non-advertent facilities, approval of the construction of environmental sanitation planning, the design and inspection of the programme.

(vii) Environmental impact evaluation, probationary production and clearance of completed work-loads commissioned by environmental protection management, night construction clearance of construction sites, pollutant processing facilities, and clearance of dismantled clearances.

(viii) A review of the clearance and construction maps commissioned by the Civil Defence Administration, the collection and clearance of civil defence construction fees, the completion of civil defence works and the removal of civil defence works.

(ix) High-technical enterprises commissioned by science and technology management identify first instance.

(x) Other working hours are authorized by the human resources social security management, the employment clearance of foreigners, the approval of employment by the porters, the approval of employment by Chinese nationals abroad, the licence of foreign experts for work, and the processing of the residence certificate of the Shanghai City.

(xi) Interim cessation of water supply or reduction of water pressure clearance, by water management, and release of water licence.

(xii) The patenting agency commissioned by the intellectual property administration to declare the first instance and the patent advertisements, the registration of the contract for the publication of overseas books, the reproduction of the overseas publication authorization of the contract for the registration of the overseas audio-visual products, and the import of books for the preparation of the book.

(xiii) An active broker agency commissioned by cultural management to carry out an operation in the area of trade tests.

(xiv) Preventive health review of construction projects commissioned by health-care management.

(xv) The retailer of medicines commissioned by the Food Medicine Regulatory Service, the licensing of catering services, and the approval of Internet drug trade enterprises.

Specific management services assumed by the Committee

(i) Preparation of detailed planning for control in the region, land titling plans and specific planning and reporting under the statutory procedures, and approval of adjustments to the detailed planning indicators for industrial land use in the region, for example, land use management in the region.

(ii) Purchase of tenders for construction works, preparation of documentation reviews, construction of engineering planning for a wide range of tests, building of the base (whatever zero) and structural envelopes, restructuring the project planning parameters (including smaller than 2.0 congestion rates, greenization rates, construction density, construction density, industrial, warehousing, development of land use, interchange, separation and consolidation), construction of engineering quality safety monitoring, engineering clearance, construction of engineering archives, etc.

(iii) The management of garbage and engineering residues, the classification and disposal of garbage, the monitoring of declarations, on-site oversight management of the quality of engineering safety in the green area, and the demarcation and adaptation of the Greenland control line.

(iv) A report on the quality of security in the construction work, supervision of inspection management, supervision of oversight inspections in the management and safety management of civil defence works and integrated coordination of the management of space safety.

(v) Preparation of regional planning assessments and their follow-up evaluations and, in accordance with prescribed procedures; organization of regional environments, monitoring and oversight management of contaminated sources, responsible for the handling of accidents.

(vi) Monitoring of safe production.

(vii) Conduct the day-to-day regulation of brokering institutions, cultural recreation sites and games for the production of horticulture equipment.

(viii) The day-to-day regulation of the operation of food, medicine, medical equipment, health and dowry production.

(ix) Statistical management, coordination and monitoring.

ACHIEVEMENTS and BEST PRACTICES

(i) The provisional approach to urban management relative to the concentration of administrative penalties, the decision of the Government of the Shanghai Municipalities to expand the scope of administrative penalties relative to the centralization of the urban management area in the Pyong Oriental Region and the administrative penalties set out in the Shanghai City Cultural Responsibilities.

(ii) Planning the exercise of administrative penalties for planning and land violations in accordance with laws, regulations and regulations.

(iii) The right to administrative penalties for construction offences in accordance with laws, regulations and regulations.

(iv) The right to administrative punishment for violations of housing security and housing is guaranteed by the housing administration in accordance with laws, regulations and regulations.

(v) Environmental protection authorities exercise administrative penalties for violations of environmental protection in accordance with laws, regulations and regulations.

(vi) The administration of civil defence authorities, in accordance with laws, regulations and regulations, exercises administrative penalties for violations of civil defence and local space use.

(vii) The right to administrative penalties for violations of labour security, in accordance with laws, regulations and regulations.

(viii) The right to administrative penalties for offences relating to the right to work, patent rights, in accordance with laws, regulations and regulations.

(ix) The food medicine control sector exercises administrative penalties for offences relating to food, medicine, medical equipment, health and dowry regulation in accordance with laws, regulations and regulations.

(x) Statistical management exercises administrative penalties for statistical offences in accordance with laws, regulations and regulations.