【正文】 cord list as well as the formalities on international transit, LCL and distribution business will be explored. The supervision techniques and approaches will be improved to pilot the model of import quarantine and relaxed import/export inspection. The construction of relatively separated goods trading area (focusing on trade facilitation) and service trade area (focusing on opening up of service sectors) will be explored. Under the condition of ensuring effective supervision, a categorized supervision model will be explored to monitor goods based on their import status. With respect to exploration on function expansion, under the condition of strict implementation of tax collection on imported and exported goods, exhibition and trading platforms for bonded goods may be set up within specified areas of China (Shanghai) Pilot Free Trade Zone. b. Strictly enforce “Secondtier Effective and Efficient Control? The Customs administration process will be optimized while the administration of frontier (. goods flow between overseas and the zone) and secondtier (. goods flow between the zone and other domestic areas) will be coordinated by improvement on einformation network, entry and exit record lists cross check, accounting books management, physical verification, and risk analysis. An inspection and quarantine model of easily import and export, with strict quality and safety risk control will be promoted. Actions will be taken to strengthen the management of electronic Customs books and facilitate the smooth flow of goods moving between the China (Shanghai) Free Trade Zone and other domestic places in the charge of different Customs offices. Enterprises within the China (Shanghai) Pilot Free Trade Zone in principle will be allowed to reinvest and conduct business outside of the zone without geographic restriction, unless specific procedures required under the applicable laws and regulations. The government will enhance the connection of enterprises39。 operation information and the government39。s supervision system, through which effective supervision can be realized through risk monitoring, thirdparty management and security deposits etc. The government will, through the development and utilization of Shanghai’s credit system, accelerate the formulation of policies and mechanism in respect of enterprises39。 business credit management and exclusive jurisdiction of business activities. c. Enhance cooperation among authorities. Under the principle of protecting national security and fair petition in the market, collaboration will be strengthened between the relevant departments and the Shanghai Municipal People39。s Government to improve the capability to protect the economic and social security. The China (Shanghai) Pilot Free Trade Zone will collaborate with relevant departments of the State Council to strictly implement the provisions in respect of antimonopoly investigations. In order to streamline supervision, cooperation among various government bodies will be enhanced, including that between the Customs, Inspection amp。 Quarantine, Industry amp。 Commerce, Taxation, Foreign Exchange and other administrative authorities. The China (Shanghai) Pilot Free Trade Zone will set up a port supervision institution with integrated functions, and explore the feasibility of applying an electronic monitoring system and setting up of effective risk management system. 2) Explore a supporting tax regime d. Implement tax policies to boost investment. For enterprises or individual shareholders registered in the China (Shanghai) Pilot Free Trade Zone that carry out investment using nonmonetary assets, the ine tax payable due to the increase in asset valuation can be paid by installments within a fiveyear period. Where enterprises within the China (Shanghai) Pilot Free Trade Zone award highlyskilled employees or employees in short supply by means of shares or capital contributions, the relevant individual ine tax may be paid by installments as same as the policies piloted in Zhongguancun. e. Implement tax policies to promote trade. Financial leasing panies registered or project panies set up by financial leasing panies with registration in the China (Shanghai) Pilot Free Trade Zone may enjoy the pilot policies of export tax refund for qualified financial leasing business. A domestic leasing pany registered or its project panies with registration in the Pilot Free Trade Zone may enjoy reduced import VAT on an aircraft with empty weight no less than 25 tons, provided that such aircraft is to be leased to a domestic airline with approval from petent authorities. Import VAT and consumption taxes will be applicable in accordance with relevant laws and regulations, on the products manufactured or processed by a pany within the China (Shanghai) Pilot Free Trade Zone but sold to the Mainland China outside of the China (Shanghai) Pilot Free Trade Zone. Enterprises will be provided with the option of calculating import duty according to the duty rates applicable to the finished goods or the imported parts. Currently, the imported machines, equipment and other goods required by manufacturing enterprises as well as manufacturing service panies that are set up in the China (Shanghai) Pilot Free Trade Zone, may be exempt from import taxes, other than those imported by consumer services panies or those which cannot enjoy import taxes exemption as stipulated in laws and regulations. Tax refund policies on the portofdeparture will be improved, and the expansion on pilot scope (. departure ports, carriers and means of transport) will be studied. Additionally, in line with the direction of tax reform and international practice, tax policies will be studied to support the development of overseas equity investment and offshore business, under the condition that such tax polies do not lead to base erosion or profit shifting. 4. Organize and implement effect