SIP's comprehensive bonded area is taking a lead nationwide to adopt a new preferential tax policy that enables enterprises to enjoy tax breaks for imports for R&D purposes and for testing projects commissioned by overseas clients.

In the first case under the policy and also the first case of its kind nationwide, BD Rapid Diagnosis Products Co Ltd saved cost by about 20% in importing a batch of sodium metasilicate materials, while Black & Decker (Suzhou) Co Ltd (B&D Suzhou) enjoyed a tax exemption for an electric drill testing project.

"There used to be strict control of consumption of imported raw materials, and we need to pay value-added tax and customs duties if the amount of the imported materials is inconsistent with the exports of products made of them. But now we can import more materials for R&D activities without paying extra taxes," said Gu, supply chain manager at BD Rapid Diagnosis Products Co Ltd.

"The tax preferences for testing services will help boost a fast development of domestic testing industry," said Jiang Yanqiu, deputy chief of Supervision Division at SIP Customs Weiting Office.