Shanghai Releases Measures to Promote Alignment with High-standard International Rules and Institutional Opening-up in the SFTZ

On September 21, 2023, Shanghai Municipal People’s Government released a circular to issue the Implementation Plan of Shanghai Municipality on Making Attempts in Aligning with High-standard International Rules and Promoting Institutional Opening-up in the Qualified Free Trade Zone and Free Trade Port (the “Implementation Plan”).

The Implementation Plan consists of 31 measures in eight aspects, requiring the Shanghai Pilot Free Trade Zone (“SFTZ”) and the Lin-gang Special Area to put in place the pilot projects for the imports of goods for remanufacturing purposes, and clarifying that temporary entry of specific goods in the SFTZ and Lin-gang New Area is exempt from tariffs, import value-added tax and consumption tax. For overseas financial institutions in the SFTZ or Lin-gang Special Area that apply to open new financial businesses that have been conducted by domestic financial institutions, the Shanghai financial regulatory authorities shall provide national treatment and implement prudent supervision. Enterprises that conduct the import, distribution, sale or use of mass-market software and products with the software shall not require to demand for the transfer or acquisition of the source codes related to the software as owned by the enterprise or individual.