Opinions on Promoting Pilot Programs of Financial Leasing Business in Qianhai Bonded Port Area
According to the Overall Development Plan on Shenzhen-HongKong Cooperation on Modern Service Industries in Qianhai Area, organizations such as financial leasing, automobile finance, consumer finance and petty loan companies that strengthen market functions are encouraged to be established. In the Official Reply of the State Council Concerning the Development and Opening Up of Shenzhen-HongKong Modern Service Industry Cooperation in Qianhai Area (State Doc.  No.58), the following can be found: “We will support the establishment of innovation-oriented financial organizations that help enhance market functions, and explore measures to construct new element trading platforms in Qianhai pilot zone. We will also provide support for Qianhai in the financial institutional mechanism reform and business model innovation designed to serve the real economy.” Acting in accordance with the previous ideas and support of Qianhai Bonded Port Area in the exploration of pilot programs for financial leasing business innovation, we hereby propose the following opinions:
1. Market access
Financial leasing companies, foreign-funded financial leasing companies, and domestic-funded pilot financial leasing companies are permitted to establish subsidiaries and conduct financial leasing business (including financing lease and operating lease) in Qianhai Bonded Port Area. The companies are required to register with the Market Supervision Administration of Shenzhen Municipality according to general company establishment procedures. There is no minimum registered capital.
2. Customs policy
The financial leasing companies or subsidiary companies of financial leasing programs whose identified registered addresses are within the red line of Qianhai Bonded Port Area are internal companies and enjoy policies of the Area.
When leasing an imported passenger or cargo airplane whose air carrying capacity exceeds 25 tons to a domestic airline company, the financial leasing company or subsidiary company of financial leasing programs registered in Qianhai Bonded Port Area is permitted to give security by submitting letters of commitment jointly with the domestic airline company to the customhouse according to the Notice of the General Administration of Customs on Strengthening the Administration of Tax Reduction and Exemption on Planes Imported by Domestic Airline Companies.
The financial leasing companies or subsidiary companies of financial leasing programs registered in Qianhai Bonded Port Area shall purchase airplanes from abroad after gaining approval from relevant state authorities. Their lessees of passenger or cargo airplanes whose air carrying capacity exceeds 25 tons can enjoy specified preferential tax rates after the airline companies declare the airplanes and leasing companies file reports at the customs.
The financial leasing companies or subsidiary companies of financial leasing programs registered in Qianhai Bonded Port Area are allowed to conduct bonded supervision on the airplanes, ships and large equipment purchased overseas, and to handle corresponding entry filing procedures. When the purchased products are leased to enterprises based within the borders and outside of Qianhai Bonded Port Area, the domestic lessee shall pay import tariffs and import value-added taxes by installments according to the means of leasing. For tax guarantee, the finance leasing companies and domestic lessees can jointly submit letters of commitment to the customhouse.
Airstrips and special areas in Shenzhen Bao'an International Airport will be designated for the entry procedures and stop of airplanes imported by means of leasing.
3. Cross-border financing policy
On the premise of being able to provide complete trading materials of the purchased airplanes, ships and large equipment, and to prove the authenticity of the transactions, the financial leasing companies or subsidiary companies of financial leasing programs registered in Qianhai Bonded Port Area will be provided with support and assistance as they apply to relevant state authorities for the introduction of cross-border foreign currency funds by means of creditor's rights and stock rights.
The financial leasing companies or subsidiary companies of financial leasing programs registered in Qianhai Bonded Port Area are supported to bring cross-border RMB funds from Hongkong-based financial organizations that run RMB business. This helps the companies broaden channels of financing.
Note: The “subsidiary companies of financial leasing programs” in the text above refer to the airplane, ship, and large equipment SPVs (Special Purpose Vehicle) established by financial leasing companies to isolate risks.