Preferential policy:

Foreign invested projects in the Garden are entitled to the preferential treatments stipulated in Suggestions on Encouraging Foreign Investment in Shanghai’s Agriculture (54th document issued by the Municipal Government of Shanghai in the year 2000)

1.    Enterprises investing in the above-mentioned areas will be exempt from custom duties and import value added tax incurred if they import equipment for their own production within the total amount of their investment other than those listed in A Category of Articles That Are Not Entitled to Custom Duties Exemption for Foreign Investment.

2.    By dint of certification issued by the relevant state department, excellent seed, breed, fry and other non-earning wild species can be exempted income tax during the period of “Tenth 5-year plan”.

3.    Foreign agricultural enterprises with a business term of over 10 years will be exempted from income tax in the first and second years since making profits, and from half of the income tax in the third, fourth and fifth years.

4.    Having reinvested by using their profits from the existing foreign-funded agricultural enterprises with a term of over 5 years, the foreign partners the enterprises will be granted a full or partial refund of the income tax they have paid for the amount they have reinvested.

5.    Foreign enterprises investing in agriculture can apply for the city’s research projects for invigorating agriculture through science and education if they cooperate with domestic scientific research institutes and participate in Shanghai’s agriculture boosting activities concerned.

6.    Foreign investors engaged in the above-mentioned areas, upon approval by governments at the district or country level or above, can use collective land by means of paying land use fees.

7.    Hi-tech, export-oriented enterprises confirmed by the Municipal Commission of Science and Technology, the Municipal Agriculture Commission, and the Municipal Foreign Investment Commission, can reduce land use fee.

8.    Projects, whose imported excellent varieties and advanced technologies have been proved of high performance by means of regional or productive experiments, will be allowed to transfer their invisible assets into shares as stipulated by the State. Enterprises with the imported excellent varieties and advanced technologies, upon confirmation by the Municipal Commission of Agriculture and the Municipal Commission of Science and Technology, will be exempted from agricultural taxes accordingly during the period of experiment by the Tax Administration.

9.    Foreign agricultural industrial of agricultural synthetical major project affirmed by municipal agricultural committee can have priority in loan and other relevant preferential policies, if the project is up to the standard.

10.   Foreign-funded enterprises investing in agriculture are not only entitled to the preferential treatments stipulated in the relevant state policies, but also to a full support of agricultural development fund for the first three years, and a halved support for the next five years from the District Government on condition that they have made contributions to the economic development in Songjiang District.

11.   Foreign investors investing in agricultural projects will acquire land for use by means of renting with preferential charges.

12.   Investors from other provinces and districts, who set up agricultural enterprises in Songjiang District and make contributions to the local economy, are entitled to a support of agricultural development fund from the District for five year since initiation of business.

13.   Parties that introduce foreign investment into the Garden will get an incentive worth of 0.3% of the actually utilized amount. Chinese and foreign enterprises that rent land or facilities for their agricultural projects will get a proportional reward in one lump sum for the part that exceeds the towns’ base figure, which is the towns’ annual net profits from the planting industry.

Areas that encourage foreign investment:

1.    flower cultivation and construction and management of nursery bases;

2.    development of new technologies to boost flower yield and cultivation of new varieties of flowers;

3.    serial development of pollution-free breeding technologies and of pollution-free vegetables (including edible fungi, watermelons and musk melons) and fruits;

4.    woodland construction and fine breeds cultivation;

5.    planting and cultivation of Chinese herbs (limited to Sino-foreign joint and cooperative ventures);

6.    cultivation of quality and name-brand aquatic products.

7.    production, processing, and marketing of vegetables for export;

8.    planting, processing and marketing of natural health food;

9.    demonstration bases for agricultural science and technology and quality agricultural products;

10.   development bases for high-tech agriculture and for incubation and development of new products;

11.   development of agricultural projects that integrate planting, breeding, popular science, ecological sightseeing and tour;

12.   construction and management of flower logistics centers.