If the foreign merchants introduce improved varieties and advanced technology to develop agriculture, they can enjoy the following preferential policies:
(1) The ratified agricultural Hi-Tech enterprises of production type with more than 10 years of business are exempted the enterprise income tax for the 1st and 2nd years since the year of profit; 50% of the enterprise income tax from the 3rd to 5th year through "collecting first and then return"; from 6th to 10th year the enterprise will have to pay the whole sum of income tax and then get back 50% of the income tax. The rate of tax for the 50% deduction of income tax should not be less than 10%.
(2) New technology and new products experiment base set up in Tianjin Export-oriented Hi-Tech Agriculture Modernization Pilot Area and Tianjin Introducing and Consuming Center of Agriculture Science will be exempted special products tax of agriculture and forestry for 3 years since the day they have business income.
(3) The foreign merchants invested enterprises engaged in the development and production of such 6 agricultural by-products as fruits, vegetable, livestock products, sea and freshwater products, green food and souvenirs etc., will be supported by special preferential loans for agriculture industrialization provided that the varieties and quality of their products are better that other similar products and moreover they can help peasant households and auxiliary enterprises expand export.