1. Any export-oriented foreign-invested enterprise confirmed by foreign trade and economic department, after the expiration of the reduction and exemption period of Income Tax in accordance with the tax laws, the export-oriented enterprise exporting 70 percent or more of their products by the total value, may pay the enterprise Income Tax at the rate with a 50 percent of reduction; if the reduced rate is under 10 percent, the enterprise shall be levied enterprise Income Tax at a rate of 10 percent. Any technology-advanced enterprise established by foreign investors after the expiration of the period of exemption and reduction of enterprise Income Tax in accordance with the tax laws, is still confirmed the technology-advanced enterprises by relevant department, with the regulations of the tax laws, shall be levied enterprise Income Tax with a 50percint reduction for anther three years.

2. Foreign investors or investors from outside China of foreign-invested enterprises, who reinvest the profits (the should be confirmed by the Foreign Exchange Department) distributed by the enterprise to their own enterprises or other foreign-funded enterprises, scheduled a period of more than 5 years, will receive a 40 refund of Income Tax already paid on the amount of reinvestment, if the reinvestment be used to establish or expand export-oriented enterprises of technology-advanced enterprises, for a period of not less than 5 years, the enterprise will receive a full refund of enterprise Income Tax already paid on the amount of reinvestment. The profits distributed by the foreign-invested enterprise shall be exempted from Income Tax.

3. Any foreign-invested enterprise, in accordance with the tax laws, shall be levied local Income Tax at a rate of 3 percent. Any productive foreign-invested enterprise which scheduled to operate for a period of mot les than 10 years shall, from the year beginning to make profits, be exempted from local Income Tax within the first five years, followed a 50percent of reduction of local Income Tax from the sixth year to the tenth year; any non-productive foreign-invested enterprise which scheduled to operate for a period of not less than 10 years shall, from the year beginning to make profits, be exempted from local Income Tax from the first year to the second year, followed a 50 percent of reduction of local Income Tax from the third year to the fifth year.

4. Any productive foreign-invested enterprise which scheduled to operate for a period of more less than 10 years shall, from the year beginning to produce and operate, be exempted from real estate tax and licence tax of vehicle and ship within the first five-years; any non-productive foreign-invested enterprise which scheduled to operate for a period of mot less than 10 years shall, from the year beginning to operate, be exempted from real estate tax and licence tax of vehicle and ship within the first five-years. Any productive foreign-invested enterprise which scheduled to operate for a period of not les than 10 years shall, from the year beginning to produce and operate, be exempted from real estate tax and licence tax of vehicle and ship within the first five-years; any non-productive foreign-invested enterprise which scheduled to operate for a period of not les than 10 years shall, from the ear beginning to operate, be exempted from real estate tax and licece tax of vehicle and ship within the first five-years.

5. Any export-oriented foreign-invested enterprise, during the period of exemption and reduction of enterprise Income Tax, shall also be exempted from local Income Tax, real estate tax and licence tax of vehicle and ship; after the expiration of the reduction and exemption period of Income Tax in accordance with the tax laws, the export-oriented enterprise exporting 70 percent or more of their products by the total value, with the application of enterprise and approval of the tax authorities, the enterprise shall be exempted from local Income Tax, real estate tax and licence tax of vehicle and ship.

6. Any technology-advanced enterprise established by foreign investors, during the period of exemption and reduction of enterprise Income Tax in accordance with the tax laws, shall also be exempted from local Income Tax, real estate tax and licence tax of vehicle and ship; the technology-advanced enterprise confirmed by relevant department, after the expiration of the period of exemption and reduction, in accordance with the regulations of the tax laws, with the application of enterprise and approval of tax authorities, shall be exempted from local Income Tax, real estate tax and licence tax of vehicle and ship.

7. The Administrative Committee of Hebei Gaobeidian Development Zone shall work coordinately for enterprises established in the Zone, in matters concerning land expropriating, the project establishing, certificate of ratification and business licence applying for and obtaining, Tax Bureau registering, it shall be responsible for going through the procedure relative.

8. Any large-scale productive enterprise, with a fixed capital of 5 million Yuan or more and the annual profit & tax of 1 million Yuan or more, from the day beginning to go into operation, shall be exempted from industrial and commercial administrative fees, building and maintaining fees of municipal public installation, city's programme and administration funds, landscape funds and technical service fees in the first three-years.

9. The enterprises established in the Zone, in accordance with the trades charged standard, shall pay the fees which are ought to paid at a rate of 50 percent, and the Administrative Committee of Gaobeidian Development Zone take over in unison all the fees which are to be used in building the Zone's infrastructure.

10. Prominent good-projects established in the Zone shall be given consideration in the project establishing, credit funds offering, location selection for building factory, etc.

11. Any enterprise established in the Zone shall enjoy all preferential treatment and policies stipulated by the State, Hebei Province and Gaobeidian City