Pingtan, the only comprehensive pilot zone in the Taiwan Straits with preferential trade and tax policies designed to encourage investment and cross-Straits economic cooperation, has processed its first batch of production equipment under a newly expanded tax rebate scheme.

On May 18, customs authorities in Pingtan cleared a shipment of abalone-processing equipment valued at more than 3.1 million yuan ($430,000), including industrial ice-makers and weight grading systems, through the declaration channel at the second-line checkpoint of Pingtan.

The shipment became the first batch of production equipment to qualify for tax rebates after the release of a new policy notice expanding the range of goods eligible for value-added tax (VAT) and consumption tax rebates in Pingtan.

Under the policy, goods related to production that are shipped from the Chinese mainland into Pingtan through the zone's "second-line" customs supervision system are treated as exports for tax purposes. Unless specifically excluded under the policy, eligible goods can receive VAT and consumption tax rebates under existing regulations.

The equipment was purchased domestically by Fuya Food (Fujian) Co., Ltd. for its abalone deep-processing project. Once operational, the project is expected to increase the company's processing capacity and level of automation, broaden its product offerings and improve sales channels for nearby aquaculture farmers, helping strengthen the local abalone industry chain.

"With the tax rebate policy helping speed up cash flow, we now have greater confidence in expanding into new markets," Zhang Shulin, production manager of Fuya Food (Fujian) Co., Ltd., said.