In order to encourage the frontier trade and economic as well as technological cooperation between our country and neighboring countries, the state council started to issue a set of favorable policies in a bid to promote the frontier trade development.
1. The enterprises dealing in petty-sum business can export 11 local-produced products managed by the state as a key. The ministry of foreign trade and economic relation, in the light of Xinjiang??s actual condition, issues a certain sum of export quota as a special item and empowers the competent department of foreign trade and economic relation to issue permits for export. In terms of export, except for commodities managed by the state as key items, open tenders are exercised and chemicals as well as chemicals likely as a source material of making drugs supervised. Others are exempted from quotas and permits.
2. The enterprises dealing in petty-sum business, which imports from the neighboring countries, are subject to the management in terms of import quota and limited amount registry (except for cars and key components). The state allots from the total annual import scheme some import quota and rated volume for limited amount and authorizes Xinjiang to issue import permits and certificate of registry for imports.
3. Frontier trade enjoys particular tax policy.
In the light of the relevant regulations stated in Notice about the Relevant Matters on Frontier Trade issued by the state council as a circular dated ?1996?No.2 and On Supplementary Notice on Relevant Matters of Frontier Trade issued by General Customs House as a document?1998?No.844. The frontier petty-sum trade enjoys the policy on tax rebate owned by general export business and goes through the procedures for tax rebate on general exports.
4. The enterprises dealing in frontier petty-sum trade, which imports through designated frontier ports commodities native to the neighboring countries, except for tobacco, liquor and cosmetics as well as others levied by the state according to the regulations and rules, had their import duties and added-value tax in the link of import cut by half.
5. The imported commodities through reciprocal trade in the border region, if daily per-capital value is below 3000 RMBY, have their import duties and added-value duties in the link of import exempted and extra part has been levied according to the stipulated tariff.
6. The import of bartered trade under external economic and technological cooperation in the frontier region had been subject to the policy on import duties for petty-sum business by late 2000.

Remark: The current favorable policy on petty-sum trade in the frontier had been due by late 2000. The former frontier-trade policy is still carried out before new one is issued.