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FRAMEWORK Special Economic Framework
The special economic framework is built around three primary categories of designated zones, each tailored to a specific phase of industrial development, customs facilitation, or technological research.
1. Free Trade Zones (FTZs)
Port-Centric Logistics & AssemblyOperating explicitly under the "Inside the border, outside customs" (境內關外) doctrine, these zones are tied to major sea and air transport hubs.
- Customs Autonomy: Goods can enter, be processed, packaged, or re-exported without immediate tariff assessment or standard customs clearance delays.
- Entrusted Processing: Non-FTZ manufacturers can send raw materials into an FTZ for advanced processing or assembly under streamlined regulatory frameworks.
- Fiscal Incentives: Business tax exemptions on export sales, zero-rated Value-Added Tax (VAT) for qualifying goods and services, and deferred duty payments.
2. Science Parks
High-Tech R&D & Semiconductor EcosystemsManaged directly by central scientific authorities, these zones are designed for high-value research and advanced manufacturing.
- IP & Asset Protection: Strict administrative controls protect proprietary technologies, semiconductor wafer design, and precision machinery IP.
- Streamlined Regulatory Single-Window: On-site administrative agencies handle building permits, environmental filings, business registration, and tax filings under one roof.
- Target Industries: Semiconductors Optoelectronics Biotechnology Precision Machinery Green Energy
3. Technology Industrial Parks
Export & Smart ManufacturingEstablished as designated industrial areas, these zones operate under central economic authorities to streamline export manufacturing operations.
- Hybrid Model: Combines the benefits of an industrial estate with custom-free privileges for export production.
- Focus: Transitioned from labor-intensive manufacturing to smart manufacturing, IC packaging/testing, and high-tech component manufacturing.
📊 Summary Comparison
| Zone Type | Key Regulatory Advantage | Primary Economic Function |
|---|---|---|
| Free Trade Zones (FTZs) | "Outside Customs" status, tax deferral, duty exemptions | Transshipment, logistics, value-added packaging, re-export |
| Science Parks | Integrated R&D ecosystem, IP protection, high-tech subsidies | Advanced semiconductor fab lines, AI hardware, biotech R&D |
| Technology Parks | Streamlined export processing, specialized infrastructure | Electronics assembly, IC testing/packaging, precision manufacturing |
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