The State Administration of Foreign Exchange, the China Insurance Regulatory Commission
Circular of the State Administration of Foreign Exchange (SAFE) and the China Insurance Regulatory Commission (CIRC) on Distributing
the Provisional Rules on Foreign Exchange Administration of Insurance Business
HuiFa [2002] No.95
September 24, 2002
SAFE branches in all provinces, autonomous regions, and municipalities directly under the Central Government, exchange administration
offices, and SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, branches of the CIRC, all insurance companies
and designated foreign exchange banks:
The SAFE and the CIRC have jointly formulated the Provisional Rules on Foreign Exchange Administration of Insurance Business (hereinafter
referred to as the Rules) with a view to promoting the development of Chinese insurance market, and normalizing the foreign exchange
receipts and payments of the insurance industry. The Rules shall be officially implemented as from November 1, 2002.
The Rules is hereby distributed to you. SAFE branches are requested to transmit it to the sub-branches, designated foreign exchange
banks (foreign-funded banks included) under their jurisdiction; CIRC branches are requested to transmit it to the insurance companies
and relevant institutions under their jurisdiction; and insurance companies and designated Chinese-funded foreign exchange banks
are requested to transmit it to their branches and sub-branches for implementation.
Attachment: Provisional Rules on Foreign Exchange Administration of Insurance Business Attachment:Provisional Rules on Foreign Exchange Administration of Insurance Business
Chapter I General Provisions
Article 1
Pursuant to the Insurance Law of the People’s Republic of China (the PRC), Regulations on the Exchange System of the PRC, and Regulations
of the PRC on Foreign-funded Insurance Companies, this Rules is enacted with a view to regulating foreign exchange insurance activities
within the territory of the PRC, and perfecting foreign exchange administration of the insurance business.
Article 2
Foreign exchange insurance stated in this Rules refers to commercial insurance whereby the payment of insurance premium, indemnity
or the payment of insurance benefits shall be priced and settled in foreign exchange as agreed upon in the insurance contract. Foreign
exchange insurance includes foreign exchange property insurance, foreign exchange life and health insurance, and foreign exchange
reinsurance.
Article 3
Foreign exchange insurance operations within the territory of the PRC, foreign exchange receipts and payments, sale and purchase of
foreign exchange, opening and use of foreign exchange account under the item of insurance shall be governed by this Rules.
Article 4
When conducting foreign exchange insurance business, insurance companies and their branches and sub-branches (hereinafter referred
to as insurers) shall use foreign exchange in collecting the insurance premium from the applicants and indemnifying or paying the
insurance benefits to the insured (or beneficiaries), and settling insurance contracts.
Article 5
The SAFE and its branches and sub-branches (hereinafter referred to as SAFE offices) are responsible for examining and approving the
qualifications of insurers for foreign exchange business, supervising foreign exchange receipts and payments, sale and purchase of
foreign exchange, and foreign exchange account under the item of insurance in accordance with this Rules.
The CIRC and its branches (hereinafter referred to as CIRC offices) are responsible for supervising the operations of foreign exchange
insurance by insurers in accordance with the Insurance Law of the PRC and other relevant regulations.
Article 6
Foreign exchange insurance activities within the territory of the PRC shall abide by relevant laws and rules of China, as well as
relevant regulations of the CIRC offices and the SAFE offices.
Chapter II Entry into and Termination of Foreign Exchange Business of Insurers
Article 7
For handling foreign exchange insurance business, an insurer shall apply to the SAFE office concerned for approval and acquire the
Foreign Exchange Business License.
The insurer shall carry on business activities within the approved scope, and shall not do foreign exchange business without approval
or beyond the scope approved.
The Foreign Exchange Business License is the legal certificate for the insurer to handle foreign exchange business according to law,
which is printed exclusively by the SAFE. The term of validity of the Foreign Exchange Business License is 3 years.
Article 8
With the approval of the SAFE office concerned, the insurer may handle part or all of the following foreign exchange business:
(1)
Foreign exchange property insurance;
(2)
Foreign exchange life and health insurance;
(3)
Foreign exchange reinsurance;
(4)
Foreign exchange maritime guarantee;
(5)
Foreign exchange investment;
(6)
Investigation of creditworthiness, consulting; and
(7)
Other foreign exchange business approved by the SAFE.
Foreign exchange property insurance, foreign exchange life and health insurance and foreign exchange reinsurance handled by the insurer
shall be confined within the insurance products approved by the CIRC office concerned; foreign exchange investment shall be handled
by the insurer through the investment channels approved by the financial supervision and control department of the State Council.
Article 9
An insurance company that meets the following requirements may apply for the foreign exchange business:
(1)
Having been approved by a CIRC office to handle insurance business;
(2)
Having the required amount of paid-up capital or operating funds in foreign exchange;
An insurance company with corporate capacity that possesses paid-up capital of more than RMB500 million (RMB500 million included)
shall have paid-up capital of at least US$5 million or the equivalent in other foreign currency; that possesses paid-up capital of
less than RMB500 million shall have paid-up capital of at least US$2 million or the equivalent in other foreign currency.
The branch of foreign insurance company that possesses operating funds of more than RMB500 million (RMB500 million included) shall
have paid-up operating funds of at least US$5 million or the equivalent in other foreign currency; that possesses operating funds
of less than RMB500 million shall have paid-up operating funds of at least US$2 million or the equivalent in other foreign currency.
(3)
Having perfect systems for internal control and financial management;
(4)
Having managers for foreign exchange business whose qualifications have been endorsed by the SAFE office concerned;
(5)
Having abided by laws and regulations of the State and relevant foreign exchange regulations, and having no major malfeasance; and
(6)
Other requirements set by the SAFE.
Article 10
An insurance company shall apply to the SAFE office in its locality for foreign exchange business with documents and materials listed
below; the local SAFE office shall, after preliminary examination, submit the application that is deemed qualified level-by-level
to the SAFE for approval. The SAFE will issue a Foreign Exchange Business License to the qualified insurance company:
(1)
A written application and feasibility study for foreign exchange business;
(2)
A photocopy each of the original and the duplicate of the Insurance Business License issued by the CIRC office concerned;
(3)
Articles of association approved by the CIRC office concerned (in case of a branch of foreign insurance company, the articles of association
of its head office shall be presented instead);
(4)
Verification report on foreign exchange capital or operating funds issued by an accounting firm (the original);
(5)
Names and curricula vitae of the managers for foreign exchange business and their certificates of occupational competence issued by
the SAFE office concerned;
(6)
The systems for internal control and financial management relevant to the application for foreign exchange business; and
(7)
Other documents and materials required by the SAFE.
An insurance company that has acquired the Foreign Exchange Business License issued by the SAFE may authorize its branches and sub-branches
to apply to the SAFE offices in their localities for foreign exchange business.
Article 11
A branch or sub-branch of an insurance company shall apply to the SAFE office in its locality for foreign exchange business by presenting
documents and materials listed below; the local SAFE office shall, after preliminary examination, submit the application that is
deemed qualified to its superior SAFE branch for approval, and the latter shall issue the Foreign Exchange Business License to the
applicant. The branch that has made the approval shall report to the SAFE for record the name of the approved applicant within 1
month after the approval is granted:
(1)
The authorization by its head office to handle foreign exchange business;
(2)
A written application for foreign exchange business (including the information on business needs, personnel disposition, business
place and other facilities relevant to the business);
(3)
A photocopy each of the original and the duplicate of the Insurance Business License and Foreign Exchange Business License of its
head office;
(4)
Names and curricula vitae of the managers for foreign exchange business and their certificates of occupational competence issued by
the SAFE office concerned;
(5)
The systems for internal control and financial management relevant to the application for foreign exchange business; and
(6)
Other documents and materials required by the SAFE office concerned.
Article 12
The insurer may apply to the SAFE office concerned for expanding the scope of its foreign exchange business in light of its business
development in accordance with the procedure stipulated in article 10 or article 11 of this Rules by presenting the documents and
materials listed below:
(1)
A written application and feasibility study for expanding the scope of foreign exchange business;
(2)
A report on foreign exchange business operations and financial conditions during the valid period of the Foreign Exchange Business
License;
(3)
A photocopy each of the original and the duplicate of the Foreign Exchange Business License;
(4)
Names and curricula vitae of the managers for the new foreign exchange business and their certificates of occupational competence
issued by the SAFE office concerned;
(5)
The systems for internal control and financial management relevant to the application for foreign exchange business; and
(6)
Other documents and materials required by the SAFE office concerned.
Article 13
If the insurer wants to continue its foreign exchange business after its Foreign Exchange Business License expires, it shall apply
to the SAFE office concerned 3 months before the expiry date in accordance with the procedure stipulated in article 10 or article
11 of this Rules by presenting the documents and materials listed below:
(1)
A written application for continuation of foreign exchange business;
(2)
A report on foreign exchange business operations and financial conditions during the last 3 years;
(3)
The auditing report on paid-up capital or operating funds in foreign exchange issued by an accounting firm (the original);
(4)
A photocopy each of the original and the duplicate of the expiring Foreign Exchange Business License; and
(5)
Other documents and materials required by the SAFE office concerned.
A branch or sub-branch of an insurance company may replace the auditing report stated in item (3) with the written authorization of
its head office for its continuation of foreign exchange business.
Article 14
For terminating foreign exchange business, the insurer shall apply with the documents and materials listed below to the SAFE office
concerned in accordance with the procedure stipulated in article 10 or article 11 of this Rules:
(1)
A written application for terminating its foreign exchange business;
(2)
A detailed explanation of the termination (including the cause of termination, and measures and steps for liquidation of its claims
and liabilities after the termination);
(3)
A photocopy each of the original and the duplicate of the valid Foreign Exchange Business License;
(4)
Balance sheets in renminbi and foreign currency or other financial statements for the last 3 years audited by an accounting firm;
(5)
Document signed by its board of directors or its superior office approving the termination of its foreign exchange business; and
(6)
Other documents and materials required by the SAFE office concerned.
Article 15
If an insurer has any of the following circumstances, the SAFE office concerned shall terminate its foreign exchange business, cancel
or withdraw its Foreign Exchange Business License:
(1)
Being dissolved due to split, merger or the emergence of the causes for dissolution prescribed in its articles of association;
(2)
The Insurance Business License having been withdrawn and cancelled by the CIRC office concerned;
(3)
Having been declared bankrupt by the People’s Court according to law; and
(4)
Other conditions prescribed by laws and regulations of the State.
Article 16
Within 3 months from the date of receipt of the insurer’s full set of application documents and materials for the launch, or expansion
of foreign exchange business or for the renewal of approval thereto related, the SAFE office concerned shall make a decision on approving
or rejecting the application, and inform the applicant in written form.
The approved insurer shall ask for the Foreign Exchange Business License from the SAFE or its branch concerned within 1 month from
the date of receipt of the approval document. If the insurer failed to ask for the said license in time, the approval document shall
cease to be valid automatically.
The insurer whose application for foreign exchange business has been turned down shall not apply again within 1 year from the date
being rejected.
The insurer who has been approved to terminate its foreign exchange business by the SAFE office concerned shall hand back its Foreign
Exchange Business License to the issuing office within 1 month from the date receiving the approval document.
Chapter III Administration on Foreign Exchange Business of Insurers
Article 17
An insurance company shall adequately allocate in due time various reserve funds for foreign exchange insurance in accordance with
the Insurance Law of the PRC and other regulations of the CIRC, and abide by the solvency supervisory indicators and asset investment
indicators prescribed by the CIRC.
Article 18
An insurance company shall confine its investment of foreign exchange to the modes of fund use set by the State Council, and apply
to the SAFE for the special foreign exchange account for investment.
Article 19
An insurance company shall abide by relevant regulations of the State on external guarantee when conducting foreign exchange maritime
guarantee.
Article 20
The insurer approved to conduct foreign exchange business may open the foreign exchange operating accounts in domestic banks, and
shall report the accounts to the local SAFE office for record within 10 working days after the opening.
For opening overseas foreign exchange accounts to meet the needs of foreign exchange business, the insurance company shall obtain
the approval from the SAFE office that has issued the Foreign Exchange Business License. A branch or sub-branch of an insurance company
shall not open overseas foreign exchange accounts.
Article 21
The limit for the use of foreign exchange operating account is as follows:
(1)
Receipt and payment of insurance premium in foreign exchange;
(2)
Receipt and payment of indemnity or insurance benefits in foreign exchange;
(3)
Receipt and payment of premium and handling charges of foreign exchange reinsurance;
(4)
Receipt and payment of indemnity or insurance benefits under the item of foreign exchange reinsurance; and
(5)
Other foreign exchange receipt and payment under current account and approved capital account.
Article 22
The domestic transfer of foreign exchange between the accounts of an insurance company and its branches, and that between different
accounts of an insurer, may be made directly through the banks, provided that it tallies with the stated receipt-and-payment scope
of such accounts.
Article 23
The conversion of capital or operating funds in foreign exchange into renminbi by an insurance company, or vice versa, shall be approved
by the SAFE.
If an insurance company’s paid-up capital in foreign exchange falls below the required amount due to operating losses, the company
may purchase foreign exchange with its paid-up capital in renminbi to make up the deficiency on a fiscal year basis with the approval
of the SAFE. If its branch’s operating funds in foreign exchange falls below the required amount due to operating losses, the deficiency
shall be made up by its head office on a fiscal year basis with the approval of the SAFE.
If an insurer has terminated its foreign exchange business and liquidated the claims and liabilities related to the business according
to law, the remaining foreign exchange shall be sold to a designated foreign exchange bank.
Article 24
An insurance company shall, after making up operating losses and allocating accumulated fund, sell the remaining foreign exchange
net profit to a designated foreign exchange bank within 4 months from the end of a fiscal year, or within 10 working days from the
date when its board of directors approves the distribution of profit, and have it recorded by the SAFE within 5 working days after
the sale.
Profits distributed to the foreign investors of a foreign-funded insurance company in accordance with the resolution of its board
of directors and the approval of the CIRC may, with the approval of the local SAFE office, be remitted abroad. Their renminbi proceeds
from the distribution may, with approval of the local SAFE office, be converted to foreign exchange for outward remittance.
Article 25
Financial management of an insurer for foreign exchange business shall abide by relevant regulations of the State. A perfect system
of internal control over foreign exchange business, foreign exchange fund management and foreign exchange financial management, and
separate foreign exchange ledgers shall be established.
An insurance company shall report to the SAFE and the CIRC a consolidated balance sheet in foreign currency and other financial statements
within 4 months from the end of every fiscal year.
Article 26
The insurer shall conduct balance of payment (BOP) statistical reporting according to relevant regulations.
Article 27
A SAFE office may conduct, by itself, or by designating an accounting firm or audit firm, on-spot or off-spot inspection on the foreign
exchange business of an insurer, an insurance agent or an insurance broker. The inspected insurer, insurance agent or insurance broker
shall accept and support such inspection.
Article 28
The insurer shall provide relevant information and materials authentically, completely, and in time as required by the CIRC office
and the SAFE office concerned.
Chapter IV Administration on Foreign Exchange Receipt and Payment of Insurance Agents and Brokers
Article 29
An insurance agent or insurance broker authorized by a CIRC office to conduct insurance intermediary business may engage in the intermediary
business of foreign exchange insurance.
Article 30
An insurance agent shall price and settle in renminbi its commission and other proceeds acquired from the factorage business under
foreign exchange insurance within the territory of the PRC; and shall not collect insurance premium in foreign exchange without the
approval of the SAFE office concerned.
Article 31
An insurance broker may pay the insurance premium, indemnity or insurance benefits under foreign exchange insurance on behalf of its
clients, but shall not purchase foreign exchange on behalf of its clients to make the aforesaid payment.
An insurance broker shall sell its foreign exchange profit from the brokerage business under foreign exchange insurance to a designated
foreign exchange bank within 3 months from the end of a fiscal year, or within 10 working days after its board of directors’ approval
for the current year’s profit distribution, and have it recorded by the local SAFE office within 5 working days after the sale.
Article 32
With the approval of the SAFE office in its locality, an insurance broker may open a special foreign exchange account, whose scope
of receipt and payment shall be:
(1)
Transit receipt of insurance premium from an applicant, insurer, or an overseas insurance company;
(2)
Transit receipt of indemnity from an insurer or an overseas insurance company;
(3)
Transit payment of insurance premium to an insurer or an overseas insurance company;
(4)
Transit payment of indemnity to the insured or beneficiary, an insurer, or an overseas insurance company; and
(5)
Sale of brokerage commission in foreign exchange to a designated foreign exchange bank.
Chapter V Administration on Sale, Purchase and Payment of Foreign Exchange under Insurance Activities
Article 33
For property insurance satisfying one of the following requirements, the receipt of insurance premium, payment of indemnity or insurance
benefits, and settlement of insurance contracts may be made in foreign exchange:
(1)
The insurable object moves between inside and outside of the territory of the PRC;
(2)
The insurable object exists or has been realized outside the territory of the PRC;
(3)
The insurable object exists or has been realized inside the territory of the PRC through international leasing, international syndicate
loan, or other kinds of international finance; and
(4)
Both the applicant and the beneficiary are overseas legal persons or natural persons.
Article 34
For life and health insurance satisfying one of the following requirements, the receipt of premium, payment of indemnity or insurance
benefits, and settlement of insurance contracts may be made in foreign exchange:
(1)
The applicant is an overseas legal person or a foreign establishment in China, and the beneficiary is an overseas natural person;
(2)
A domestic resident individual’s overseas casualties insurance and medical insurance.
Article 35
Foreign exchange property insurance and foreign exchange life and health insurance satisfying the requirements stipulated in article
33 and 34 may be re-insured in foreign exchange within the territory of the PRC.
For other insurance that fails to satisfy the requirements stipulated in article 33 , article 34 , and paragraph 1 of this article,
the receipt of premium, payment of indemnity or insurance benefits, and settlement of insurance contracts shall be made in renminbi
within the territory of the PRC.
Article 36
An applicant shall pay foreign exchange premium to the insurer under the item of foreign exchange insurance from his or her foreign
exchange account or with foreign exchange purchased from a designated foreign exchange bank by presenting related insurance contracts,
advice of payment from the insurer. If the applicant is an overseas legal person, natural person, or a foreign establishment in China,
purchase of foreign exchange for the payment of insurance premium is prohibited.
The insurer shall pay indemnity or insurance benefits to the insured (or the beneficiary) under foreign exchange insurance from its
foreign exchange account by presenting the insurance contracts and form of computation of claim.
Article 37
If the beneficiary is a legal person or other economic organization, the indemnity or insurance benefits under foreign exchange insurance
may either be deposited in its foreign exchange account under current account, or be sold to a bank, but shall be sold to a bank
if the beneficiary has no foreign exchange account under current account or the amount overshoots the balance ceiling of its foreign
exchange account under current account.
If the beneficiary is a natural person, the indemnity or insurance benefits under foreign exchange insurance may be held in cash,
deposited with a financial institution handling the business of foreign exchange deposit, or sold to a bank.
Article 38
Under the item of reinsurance the insurer ceding a foreign exchange insurance shall pay the premium for the reinsurance from its foreign
exchange account by presenting the contract of reinsurance and the list of payment.
The insurer ceding an insurance contract that is settled in renminbi within the territory of the PRC may apply to the SAFE for approval
to purchase foreign exchange and pay the premium for the reinsurance.
The insurer shall repatriate in time to its domestic foreign exchange account the shared-back indemnity or insurance benefits and
related commissions under foreign exchange reinsurance.
Article 39
Under the item of reinsurance the insurer assuming a foreign exchange insurance shall repatriate in time to its domestic foreign exchange
account the premium for reinsurance.
The insurer shall make payment of indemnity and related charges for assumed foreign exchange reinsurance from its foreign exchange
account by presenting the contract of reinsurance and list of payment.
Article 40
The insurer shall make payment in foreign exchange of the premium, indemnity or insurance benefits, and related fees involving insurance
pool and coinsurance from its foreign exchange account by presenting the articles of association of the insurance pool, the agreement
of coinsurance, and the advice of payment.
Article 41
The insurer shall make payment for the cancellation of a contract of foreign exchange insurance from its foreign exchange account
by presenting the insurance contract and agreement on cancellation.
Article 42
Purchase of and payment in foreign exchange for foreign exchange insurance conducted through a domestic insurance broker shall be
made according to the rules below:
(1)
The applicant shall make payment of the premium to an insurance broker from his foreign exchange account or with foreign exchange
purchased from a designated foreign exchange bank by presenting related insurance contracts, authorization of insurance broker and
advice of payment. The insurance broker shall make payment of the premium to the insurer from its foreign exchange account by presenting
related insurance contracts, authorization of insurance broker and advice of payment.
Payment of indemnity or insurance benefits by the insurer via an insurance broker to the insured or the beneficiary shall be made
through their foreign exchange accounts by presenting related insurance contracts, form of computation of claim, and authorization
of insurance broker.
(2)
Payment of reinsurance premium by the insurer that has ceded a foreign exchange reinsurance to an insurance broker and payment of
the reinsurance premium by the insurance broker to the insurer that has assumed the foreign exchange reinsurance shall be made from
the foreign exchange account of the broker by presenting related contracts of reinsurance, authorization of insurance broker and
list of payment.
Payment of shared-back indemnity or insurance benefits and related commissions by the insurer that has assumed the foreign exchange
reinsurance to the insurer that has ceded the reinsurance via an insurance broker shall be made from their foreign exchange accounts
by presenting related contracts of reinsurance, list of payment, and authorization of insurance broker.
(3)
Payment for cancellation of foreign exchange insurance by the insurer to the applicant via an insurance broker shall be made from
the foreign exchange account of the broker by presenting related contract of insurance, agreement on cancellation of the foreign
exchange insurance, and authorization of insurance broker.
Article 43
When going through the procedure of the receipt and payment of, or sale and purchase of foreign exchange for the premium, indemnity
or insurance benefits related to foreign exchange insurance, the designated foreign exchange bank shall strictly examine corresponding
valid documents and commercial vouchers, and keep them for 5 years for future check.
Chapter VI Legal Responsibilities
Article 44
If the insurer operates foreign exchange business without approval, the SAFE office concerned shall order it to terminate such operations
and return collected premiums, confiscate the illegal income that has been gained and additionally impose a fine above RMB 100,000
but below RMB500,000. If the offense constitutes a crime, criminal responsibility shall be investigated according to law.
Where the insurer that operates foreign exchange business exceeds its approved scope of business without authorization, or continues
to operate that part of foreign exchange business that has been terminated or suspended by the SAFE office concerned, the SAFE office
concerned shall order it to rectify the case and return the collected premiums, confiscate the illegal income that has been gained,
and additionally impose a fine above RMB 100,000 but below RMB500,000. Where the circumstances are serious, or rectification is not
carried out within the time limit, the SAFE office concerned shall suspend or revoke its foreign exchange business license. If the
offense constitutes a crime, criminal responsibility shall be investigated according to law.
Article 45
Where the insurer violates the provisions of this Rules by collecting premium, paying indemnity or insurance benefits, and settling
insurance contracts in foreign exchange without authorization for insurance contracts that do not meet the requirements in this Rules,
the SAFE office concerned shall order its rectification, confisca
Circular of the State Administration of Taxation on Issues Relating to the Tax Treatment of Enterprises with Foreign Investment which
Foreign Investor’s Capital Contribution Lower than 25%
GuoShuiHan [2003] No. 422
April 18, 2003
State tax bureaus and local tax bureaus of provinces, autonomous regions and municipalities directly under the Central Government,
municipalities separately listed on the State plan:
For facilitating localities to accurately understand, carry out and implement the Circular of the MOFTEC, the State Administration
of Taxation, the State Administration for Commerce and Industry, and the State Administration of Foreign Investment on Issues Relating
to Strengthening the administration over the Examination and Approval, Registration, Foreign Exchanges and Taxes of Enterprises with
Foreign Investment (WaiJingMaoFa [2002] No.575), here is to clarify the issues relating to the tax treatment of the newly-established
enterprises with foreign investment with actual capital contributions by foreign investors lower than 25% (hereinafter referred to
as enterprises that foreign investment lower than 25%):
I.
Issues on applicable tax system. The applicable tax system to enterprises that foreign investment lower than 25% shall be the same
as that to domestic enterprises without enjoying the preferential tax treatment granted to enterprises with foreign investment, unless
otherwise provided for by the State Council.
II.
Issues on tax registration. Enterprises that foreign investment lower than 25% shall be treated as domestic enterprises when handling
with tax registration, unless otherwise provided for by the State Council.
Please abide by and implement the present Circular.
Order of the Director of the State Intellectual Property Office
No.30
In order to regulate management and supervision of the patent agency industry, the Measures for Management of Patent Agencies are
formulated and hereby promulgated. The Measures shall come into force on July 15, 2003.
The Measures on Approving the Establishment of Patent Agencies (for Interim Implementation) promulgated by No.23 Order of the State
Intellectual Property Office will be abolished at the same time.
Director of the State Intellectual Property Office Wang Jingchuan
June 6, 2003
Measures for Management of Patent Agencies
Chapter I General Provisions
Article 1
In order to perfect the system of patent agencies, maintain the normal order of patent agency industry and guarantee the practice
of by the patent agencies and patent agents by force of law, the Measures are formulated according to the Patent Law, the Regulations
on Patent Agencies and the relevant provisions of the State Council.
Article 2
The State Intellectual Property Office and the intellectual property offices of the provinces, autonomous regions and municipalities
directly under the Central Government shall manage and supervise patent agencies and patent agents according to the Patent Law, the
Regulations on Patent Agencies and the Measures.
All China Association of Patent Agents shall organize and guide patent agencies and patent agents to perform the Patent Law, the Regulations
on Patent Agencies and the Measures by example, regulate professional conducts, strictly adopt professional self regulation, and
increasingly improve professional service level.
Chapter II Establishment, Modification, Close-up and Revocation of Patent Agencies and their office
Article 3
the organization form of patent agencies shall be a partnership patent agency or a limited liability patent agency. A partnership
patent agency shall be jointly invested and initiated by at least 2 persons, and a limited liability patent agency shall be jointly
invested and initiated by at least 5 persons.
Partners of the partnership patent agency shall bear unlimited joint liability for the debts of the patent agency; partners of the
limited liability patent agency shall bear the liability for the debts of the patent agency with all its assets.
Article 4
The establishment of a patent agency shall meet the following conditions:
(1)
having the agency name in compliance with Article 7 of the measures;
(2)
having a partnership agreement or Articles of association;
(3)
having partners or shareholders stipulated by Articles 5 and 6 of the measures;
(4)
having necessary funds, which shall be no less than RMB50,000 if a partnership patent agency is to be established, or which shall
be no less than RMB100,000 if a limited liability patent agency is to be established;
(5)
to have fixed offices and necessary working facilities;
Where a law firm applies to run the patent agency services, there shall be at least 3 full-time lawyers in this law firm, each of
whom has the patent agent qualification.
Article 5
Partners or shareholders of a patent agency shall meet the following conditions:
(1)
having the patent agent qualification;
(2)
having over 2 years experiences on the practice of patent agencies
(3)
engaging in the full-time the patent agency services;
(4)
being under the age of 65 when applying for establishing a patent agency;
(5)
having good behavior.
Article 6
a person who has one of following circumstance shall not be the partner or shareholder of a patent agency:
(1)
having no complete capacity of civil disposition
(2)
working in state organs or enterprises and institutions and not formally go through formalities of resignation, dismissal or retirement;
(3)
less than 2 years as a partner or shareholder of the other patent agency
(4)
less than 3 years circulated a notice of criticism stipulated by Article 5 of Rules on Disciplinary of Patent Agencies or reprimanded
by certificate reclamation of the patent agent.
(5)
punished by criminal penalty (except for committing crimes by negligence)
Article 7
A patent agency shall only have and use one name.
The name of a patent agency shall be composed of the name of the city, font size and “Patent Agency Firm”, “Patent agency Co., Ltd.”
and “Intellectual property Agency Firm”, “Intellectual property Agency Co., Ltd.”. Its font size shall not be, throughout the country,
identical with or similar to another patent agency’s font size that is being or has been used.
Where a law firm runs the patent agency services, it may use the name of this law firm.
Article 8
Whoever applies to establish a patent agency shall submit the following application materials:
(1)
application form for the establishment of the patent agency;
(2)
partnership agreement or articles of association of the patent agency;
(3)
asset evaluation certificate;
(4)
duplicates of the patent agent qualification certificates and ID cards;
(5)
resumes and certification on the personnel file and duplicates of the retirement certification;
(6)
certification of offices and working facilities;
(7)
other evidentiary material.
A law firm that applies to run the patent agency services shall submit the following application materials:
(1)
the application form for running the patent agency services;
(2)
a letter issued by the competent administrative organ of justice on approving the applicant to run the patent agency services;
(3)
partnership agreement or the articles of association of the law firm;
(4)
duplicate of the practice permit of the law firm and attestation of funds;
(5)
duplicates of lawyer licenses of the patent agents, duplicates of the patent agent qualification certificates and duplicates of the
ID cards;
(6)
certification of offices and working facilities;
(7)
other evidentiary materials.
The above-mentioned evidentiary materials shall be those issued within 6 months before applying for establishment of a patent agency
or undertaking of patent agency practice revocation.
Article 9
The procedures for approving the establishment of a patent agency are as follows:
(1)
whoever applies to establish a patent agency shall apply to the intellectual property office of the province, autonomous region or
municipality directly under the Central Government at his locality. The intellectual property office of the province, autonomous
region or municipality directly under the Central Government shall, after examination, submit the application to the State Intellectual
Property Office for approval within 30 days upon receipt of the application if the application has met the conditions provided for
in the Measures; or shall notify the applicant in written form within 30 days upon receipt of the application if the application
fails to meet the conditions provided for in the Measures.
(2)
The State Intellectual Property Office shall, within 30 days upon receipt of the submitted documents, make a decision on approving
the application which meets the conditions provided for in the Measures, notify the intellectual property office of the province,
autonomous region or municipality directly under the Central Government who submitted the application and issue the registration
certificate of patent agency and the agency code; or shall, within 30 days as of the receipt of the submitted documents, notify the
intellectual property office of the province, autonomous region or municipality directly under the Central Government to re-examine
the application which does not meet the conditions provided for in the Measures.
A law firm that applies to run the patent agency services shall be approved with reference to the above-mentioned provisions
Article 10
In case of modifying registration matters on name, address, articles of association, and partner or shareholder, the patent agency
concerned shall apply to the State Intellectual Property Office and submit the application to the intellectual property office of
the province, autonomous region or municipality directly under the Central Government at his locality. The modification shall come
into force upon approval of the State Intellectual Property Office.
Article 11
In case of winding up or revocation, the patent agency concerned shall after properly handling with various matters not settled apply
to the intellectual property office of provinces, autonomous regions or municipalities directly under the Central Government at his
locality. If agreed upon review, registration certificate of patent agency and the mark brand shall be submitted to the intellectual
property office of the province, autonomous region or municipality directly under the Central Government at his locality. The State
Intellectual Property Office shall handle with the formalities of winding-up or revocation.
Article 12
In case of establishing office in the province, the patent agency concerned shall apply to the intellectual property office of provinces,
autonomous regions or municipalities directly under the Central Government at his locality. If approved, it shall be filed by the
intellectual property office of provinces, autonomous regions or municipalities directly under the Central Government to the State
Intellectual Property Office.
In case of cross province establishment of office, the patent agency concerned shall after obtaining consent of the intellectual property
office of provinces, autonomous regions or municipalities directly under the Central Government at his locality apply to the intellectual
property office of provinces, autonomous regions or municipalities directly under the Central Government at his office locality.
If approved, it shall be filed by the intellectual property office of provinces, autonomous regions or municipalities directly under
the Central Government at his office locality to the State Intellectual Property Office.
Article 13
A patent agency applying to establish an office shall be compliance with following conditions:
(1)
the time of establishment more than two years;
(2)
having over 10 patent agents;
(3)
having gone through the annul examination of the previous year.
Article 14
A patent agency shall be compliance with following conditions:
(1)
having over 2 full-time patent agents assigned or engaged by the patent agency;
(2)
having fixed offices and necessary funds;
(3)
The name of the office shall be composed of the full name of the patent agency, the name of the city at the office locality and “Office”.
Article 15
The intellectual property office of provinces, autonomous regions or municipalities directly under the Central Government can additionally
stipulate other conditions and procedures for patent agencies establishing offices in their administrative areas and submit the relevant
provisions to the State Intellectual Property Office.
Article 16
The offices of the patent agencies shall be not handle with the patent agency services with the their solitary name, and their personal
matters, finance and service shall be unified managed by their patent agency. The patent agencies shall bear the civil liability
to the service activities of their offices.
In case of cross province establishment of offices, their offices shall accept the instruction and supervision of the intellectual
property offices of provinces, autonomous regions or municipalities directly under the Central Government at their locality.
Article 17
In case of winding up or revocation, the office concerned shall after properly handling with various matters not settled apply to
the intellectual property office of provinces, autonomous regions or municipalities directly under the Central Government at their
locality. If approved, it shall be filed by this intellectual property office to the State Intellectual Property Office, and shall
submit with a copy to the intellectual property offices of provinces, autonomous regions or municipalities directly under the Central
Government at their locality.
In case of winding up or revocation, the office shall terminate at the same time.
Chapter III The Professional Practice of the Patent Agents
Article 18
The professional practice of the patent agents shall accept the engagement and appointment of the approval established patent agency
to establish and have professional practice certificates.
Article 19
When engaging patent agents, the patent agency shall reach an engagement agreement with the patent agents in the principle of free
will and mutual consent through consultation, and both parties to the engagement agreement shall abide by the engagement agreement.
Article 20
The issuance for the professional practice certificates of patent agents shall be compliance with following conditions:
(1)
having the patent agent qualification;
(2)
being able to full-time engage the patent agency services;
(3)
the person who have no experiences of the patent agency or patent inspection continually practiced over a year and participated in
training before formal work;
(4)
engaged by the patent agencies;
(5)
being under the age of 70 when issuing the certificate;
(6)
having good behavior.
Article 21
A person who has one of following circumstance shall not be issued the professional practice certificate of the patent agent:
(1)
having no complete capacity of civil disposition
(2)
prior to application working for other patent agency, not formally be dismissed by the patent agency and not go through revocation
formalities on the professional practice certificate of the patent agent;
(3)
less than 1 year after collecting the professional practice certificate of the patent agent, transforming to other patent agency
(4)
less than 3 years reprimanded by the certificate reclamation of patent agent stipulated by Article 5 of Rules on Disciplinary of
Patent Agencies;
(5)
punished by criminal penalty (except for committing crimes by negligence)
Article 22
Whoever applies for issuing a patent agency shall submit the following materials:
(1)
application form for the professional practice certificates of the patent agents;
(2)
duplicates of the patent agent qualification certificates and ID cards
(3)
certification on the personnel file or duplicates of the retirement certification
(4)
employment agreement issued by the patent agencies;
(5)
prior to application working for other patent agency, shall submit dismissal certification of the patent agency
(6)
in case of applying for issuing the professional practice certificates of the patent agents for the first time, shall submit the practice
certification and certification for participating in training before formal work issued by the probation patent agency.
Article 23
The State Intellectual Property Office authorize All China Association of Patent Agents to take charge of the specific matters relating
to issuance, modification and revocation of the professional practice certificates of the patent agents.
Article 24
Upon reviewing, All China Association of Patent Agents hold that the issuance and application of the professional practice certificates
of the patent agents are compliance with the conditions stipulated by the measures, they shall issue the professional practice certificates
of the patent agents within 15 days upon receipt of the application; otherwise, All China Association of Patent Agent shall notify
the applicant with written form within 15 days upon receipt of the application.
Article 25
If the patent agencies want to dismiss the patent agents, they shall notify the patent agents30 days in advance; If the patent agents
want to dismiss, they shall notify the relevant patent agencies 30 days in advance.
If the patent agencies want to discharge the employment relationship with the patent agents, they shall withdraw the professional
practice certificates of the patent agents and issue dismissal certification, and handle with revocation formalities of the professional
practice certificates of the patent agents within 10 days upon issuing the dismissal certification to All China Association of Patent
Agents.
Article 26
In case of close-up or revocation, the patent agencies shall withdraw all the professional practice certificates of their patent agents
and handle with revocation formalities of the professional practice certificates of the patent agents within 10 days upon obtaining
the review and approval of the intellectual property offices of the provinces, autonomous regions and municipalities directly under
the Central Government.
Article 27
All China Association of Patent Agents shall keep filing with The State Intellectual Property Office and submit the relevant materials
within 5 days upon issuing, modifying or repealing the professional practice certificates of the patent agents, and send with a copy
to the intellectual property offices of the provinces, autonomous regions and municipalities directly under the Central Government
at the locality of the patent agencies.
Article 28
The person who holds no the professional practice certificate of the patent agent shall not engage the patent agency services for
seeking for economic benefits in the name of the patent agent.
Article 29
In case of undertaking the patent services, the patent agents shall accept the authorization in the name of the relevant patent agencies,
sign the written authorization contract with the authorizer, uniformly charge expenses and take into account according to the facts.
The patent agents shall not accept the authorization without permission, handle with the patent agency services and charge expenses.
Chapter IV The Annul Examination of the Patent Agencies and the Patent Agents
Article 30
The State Intellectual Property Office is responsible for the organization and instruction on the annul examination of the patent
agencies and the patent agents and authorizes the intellectual property offices of the provinces, autonomous regions, municipalities
directly under the Central Government and the National Defense Patent Agency to implement the annul examination.
All the lawyer firms upon approval to establish the patent agencies and run the patent agency services shall participate in the annul
examination. The offices of the patent agencies shall participate in the annul examination together with the patent agencies and
submit the relevant materials with a copy to the intellectual property offices of the provinces, autonomous regions and municipalities
directly under the Central Government at the locality of the offices.
All China Association of the Patent Agents shall coordinate and participate in the annul examination of the patent agencies and the
patent agents.
Article 31
The annul examination of the patent agencies and the patent agents shall carry out once a year, from September 1 to October 31.
Article 32
The content on annul examination of the patent agencies and the patent agents shall include:
(1)
whether the patent agencies are or not compliance with the conditions for establishment stipulated by the measures;
(2)
whether the partners or shareholders of the patent agencies are or not compliance with the conditions stipulated by the measures;
(3)
whether the patent agents who work in the patent agencies hold the professional practice certificates of the patent agents and participate
in the professional training according to the requirements;
(4)
whether the patent agencies and the patent agents have the violation of laws and disciplines stated by Articles 6, 7 and 8 in Rules
on Disciplinary of Patent Agencies (tentative);
(5)
the quantity of the patent agency services since the patent agencies completed the last annul examination;
(6)
the condition on the finance of the patent agencies;
(7)
other content shall be examined each year.
Article 33
The patent agencies shall submit the following materials for the annul examination:
(1)
the registration forms on the annul examination of the patent agencies and the patent agents;
(2)
the working reports of the patent agencies;
(3)
a copy of registration certificate of the patent agencies;
(4)
the professional practice certificates of the patent agents
(5)
the financial statements;
(6)
other required documents.
The working reports of the patent agencies shall fully reflect various contents stipulated by Article 32 of the measures.
Article 34
In case of any no compliance with the provisions of the measures upon annul examination, the intellectual property offices of the
provinces, autonomous regions and municipalities directly under the Central Government shall order the patent agencies and the patent
agencies to correct in the specified time; in case of no correction, it will be deemed as failing to meet annul examination.
In case of violation of laws and disciplines of Articles 6, 7 and 8 in Rules on Disciplinary of Patent Agencies (tentative) by the
patent agencies and the patent agents upon annual examination, the case may be submitted for punishment by the Punishment Commission
of Patent Agencies of the provinces, autonomous regions and municipalities directly under the Central Government.
Article 35
In case of qualification upon annul examination, the intellectual property offices of the provinces, autonomous regions and municipalities
directly under the Central Government shall seal the stamp for qualification of the annual examination of the year; otherwise, the
stamp will be sealed for disqualification of the annual examination.
In case of failing to participate in the annul examination or disqualification of the annual examination, the patent agencies shall
not handle with any new patent agency services at the State Intellectual Property Office and the intellectual property offices before
reaching the qualification of annual examination the next time.
Article 36
The intellectual property offices of the provinces, autonomous regions and municipalities directly under the Central Government shall
submit the summary of annual examination and the registration form of the annul examination to the State Intellectual Property Office
for filing within 10 days upon completing the annul examination of the patent agencies and agents, and submit the results of annual
examination of the professional practice certificates of the patent agents for filling by All China Association of Patent Agents.
The State Intellectual Property Office will publish to the public the results of the annual examination of the patent agencies and
the patent agents.
Article 37
The workers of the State Intellectual Property Office, the intellectual property offices of the provinces, autonomous regions and
municipalities directly under the Central Government and All China Association of Patent Agents keep secret the content that has
not be published in the annual examination on patent agencies.
Chapter V Supplementary Provisions
Article 38
The interpretation of the Measures will be vested with the State Intellectual Property Office.
Article 39
These Measures shall come into force as of July 15, 2003.
The State Administration for Industry and Commerce
Official Reply of the State Administration for Industry and Commerce on the Relevant Issues Concerning the Establishment of Joint
Ventures by and Between Enterprises with Foreign Investment and Other Enterprises
GongShangWaiQiZi [2002] No.6
January 14, 2002
The Industrial and Commercial Bureau of Guangdong Province:
The Request for Instruction on the Relevant Issues concerning the Establishment of Joint Ventures by and between Enterprises with
foreign investment and Other Enterprises by the Industrial and Commercial Bureau of Shantou City in your province (ShanGongShang
[2001] No. 106) has been received. After discussion, we hereby give the reply as follows:
In accordance with Article 3 of Some Provisions on the Registration and Administration of Enterprises with foreign investment Becoming
Company Shareholders or Promoters (GongShangQiZi [1995] No. 260), an enterprise with foreign investment may, in its own name, invest
its assets in a limited liability company or a company limited by shares, and the said “assets” shall not be limited to its “profits”
only.
The State Administration for Industry and Commerce
2002-01-14
Decree of the State Council of the People’s Republic of China
No.346
The Provisions on Guiding the Orientation of Foreign Investment are hereby promulgated and shall enter into force on April 1, 2002.
Premier of the State Council: Zhu Rongji
February 11, 2002
Provisions on Guiding the Orientation of Foreign Investment
Article 1
In order to guide the orientation of foreign investment, to keep the orientation of foreign investment in line with the national economy
and social development planning of China, and to protect of the lawful rights and interests of investors, these Provisions have been
formulated according to the laws and provision on foreign investment and the requirements of industrial policies of the State.
Article 2
These Provisions shall be applicable to the projects of investment and establishment of Chinese-foreign equity joint ventures, Chinese-foreign
contractual joint ventures and foreign-capital enterprises (hereinafter referred to all as enterprises with foreign investment),
and projects with foreign investment in other forms (hereinafter referred to as projects with foreign investment) within the territory
of China.
Article 3
The Guidance Catalog of Industry with Foreign Investment and the Catalog of Dominant Industries with Foreign Investment of the Mid-west
Region shall be formulated by the State Development Planning Commission, the State Economic and Trade Commission, the Ministry of
Foreign Trade and Economic Cooperation jointly with other relevant departments under the State Council, and shall be promulgated
upon the approval of the State Council; when it is needed to partly adjust the Guidance Catalog of Industry with Foreign Investment
and the Catalog of Dominant Industries with Foreign Investment of the Mid-west Region in light of the actual situation, the State
Economic and Trade Commission, the State Development Planning Commission, the Ministry of Foreign Trade and Economic Cooperation
jointly with the relevant departments under the State Council shall make the revision and promulgation timely.
The Guidance Catalog of Industry with Foreign Investment and the Catalog of Dominant Industries with Foreign Investment of the Mid-west
Region shall be the basis of the application of relevant policies in directing and examining and approving projects with foreign
investment and enterprises with foreign investment.
Article 4
Projects with foreign investment fall into 4 categories, namely encouraged, permitted, restricted and prohibited ones.
The Projects with foreign investment that are encouraged, restricted and prohibited shall be listed in the Guidance Catalog of Industry
with Foreign Investment. And the projects with foreign investment that don’t fall into the categories of encouraged, restricted or
prohibited projects shall be the permitted projects with foreign investment. The permitted projects with foreign investment shall
not be listed in the Guidance Catalog of Industry with Foreign Investment.
Article 5
A project in any of the following situations shall be listed as the encouraged projects with foreign investment:
1)
being of new agriculture technologies, agriculture comprehensive development, or energy, transportation and important raw material
industries;
2)
being of high and new technologies or advanced application technologies that can improve the product performance and increase the
technology economic efficiency of the enterprises or those that can produce the new equipments and new materials which the domestic
production capacity fails to produce;
3)
meeting the market needs and being able to improve the product level, develop new markets or increase the international competitive
capacity of the products;
4)
being of new technologies and new equipments that can save energy and raw material, comprehensively utilize resources and regenerate
resources, and prevent environment pollutions;
5)
being capable of bring into the advantages of human power and resources of the mid-west region into full play and being in conformity
to the industrial policies of the State;
6)
other situations as provided for by laws and administrative regulations.
Article 6
A project in any of the following situations shall be a restricted project with foreign investment:
1)
being of technology lagged behind;
2)
being adverse to saving resources and improving environment;
3)
engaged in the prospecting and exploitation of the specific type of mineral resources to which the State applies protective exploitation;
4)
falling into the industries that the State opens step by step;
5)
other situations as provided by laws and administrative regulations.
Article 7
A project in any of the following situations shall be a prohibited project with foreign investment:
1)
harming the State safety or impairing the public interests;
2)
polluting the environment, damaging natural resources or harming human health;
3)
occupying too much farmland and being adverse to the protection and development of land resources;
4)
harming the safety and usage of military facilities;
5)
using the particular techniques or technologies of China to produce products;
6)
other situations as provided for by laws and administrative regulations.
Article 8
The Guidance Catalog of Industry with Foreign Investment may provide that a enterprise with foreign investment is “limited to joint
venture, contractual venture”, “with Chinese party at the holding position” or “with Chinese party at the relatively holding position”.
“Limited to joint venture and operative venture” shall refer to that only Chinese-foreign joint ventures and Chinese-foreign contractual
joint ventures are allowed; “with the Chinese parties at the holding position” shall refer to that the total investment proportion
of the Chinese parties in the project with foreign investment shall be 51% or more; “with Chinese parties at the relatively holding
position” shall refer to that the total investment proportion of the Chinese parties in the project with foreign investment shall
be higher that the investment proportion of any foreign party.
Article 9
Apart from enjoying the preferential treatments according to the provisions of the relevant laws and administrative regulations, the
encouraged projects with foreign investment that engage in the construction and operation of energy, transportation, municipal infrastructure
(coal, oil, natural gas, electric power, railways, highways, ports, airports, city roads, sewage disposition, and garbage disposition,
etc.) that needs large amount of investment and long term for recovery may expand their relevant business scope upon approval.
Article 10
The permitted projects with foreign investment of which the products are all directly exported shall be regarded as the encouraged
project with foreign investment; the restricted projects with foreign investment of which the export sales accounts for more than
70% of their total amount of sales may be regarded as the permitted projects with foreign investment upon the approval of the people’s
governments of provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan or the competent department under the State Council.
Article 11
The conditions may be eased for the permitted and restricted projects with foreign investment that really can bring the advantages
of the mid-west region into full play; among which, those listed in the Guidance Catalog of Industry with Foreign Investment may
enjoy the preferential policies for the encouraged projects with foreign investment.
Article 12
Projects with foreign investment shall be examined and approved, and put on record respectively by the departments of development
planning and the economic and trade departments according to the limit of authority for examination and approval; the contracts and
articles of association of enterprises with foreign investment shall be examined and approved, and put on record by the departments
of foreign trade and economic cooperation. Among which, the projects with foreign investment under the limit for restricted projects
with foreign investment shall be subject to the examination and approval of the corresponding competent departments of the people’s
governments of the provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan, and shall be reported to the competent departments at the next higher level and the competent industrial
departments, the power for examination and approval of this kind of projects may not be granted to the authorities at lower levels.
The projects with foreign investment in the service area that are opened to the outside world step by step shall be subject to the
examination and approval according to the relevant provisions of the State.
The projects with foreign investment involving quotas and licenses must apply to the departments for quotas and licenses first.
Where there are otherwise provisions of laws and administrative regulations on the procedures and measures for the examination and
approval of projects with foreign investment, those provisions shall be observed.
Article 13
With respect to the projects with foreign investment examined and approved in violation of the present provisions, the organ of examination
and approval at the next higher level shall cancel it within 30 workdays from the day of receiving the documents for record of that
project, its contract and articles of association shall be void, the department of enterprise registration shall not register it
and the customs shall not handle the procedures for import and export for it.
Article 14
Where the applicant of a project with foreign investment manages to obtain the approval for the project by deceiving or other illicit
means, his legal liabilities shall be investigated for according to law regarding the seriousness of the circumstances; the organ
of examination and approval shall cancel the approval for that project and the relevant competent organs shall deal with it correspondingly
according to law.
Article 15
Where any of the personnel of the organ of examination and approval abuses his power or neglects his duties, criminal responsibilities
shall be investigated for according to the provisions of the criminal law on the crime of abusing powers or the crime of neglecting
duties; where the circumstances are not serious enough for criminal punishment, administrative punishment of recording a special
demerit or more severe punishment shall be given.
Article 16
With respect to the investment projects established by overseas Chinese and the investors from the Hong Kong Special Administration
Region, Macao Special Administrative Region or Taiwan Area, these Provisions shall be applicable by reference in implementation.
Article 17
These Provisions shall enter into force on April 1, 2002. The Interim Provisions on the Guidance of Foreign Investment Directions
approved by the State Council on June 7, 1995 and promulgated by the State Planning Commission, the State Economic and Trade Commission
and the Ministry of Foreign Trade and Economic Cooperation on June 20, 1995 shall be nullified simultaneously.
The Ministry of Culture, the General Administration of Customs
Decree of the Ministry of Culture and the General Administration of Customs
No.23
The Measures for the Administration of Import of Audio and Video Products are hereby promulgated and shall enter into force on June
1, 2002.
Minister of the Ministry of Culture: Sun Jiazheng
Director of the General Administration of Customs: Mu Xinsheng
April 17, 2002
Measures for the Administration of Import of Audio and Video Products
Chapter 1 General Provisions
Article 1
In order to strengthen the administration of import of audio and video products, to promote the international culture exchanges and
to enrich the culture life of the people, these Measures have been formulated according to the Regulations on the Administration
of Audio and Video Products and the relevant provisions of the State.
Article 2
The audio and video products as used in these Measures shall refer to the audio tapes, video tapes, gramophone records, compact discs
and laser discs etc. on which contents are recorded.
Article 3
These Measures shall apply to the import of finished audio and video products and the import from abroad of audio and video products
used for publication, information network dissemination and other purposes.
Article 4
The Ministry of Culture shall be responsible for the supervision and administration of the import of audio and video products of the
whole country, formulating the planning on imports of audio and video products, examining the contents of the imported audio and
video products and determining the total number, overall arrangements and structures of the units engaging in the imports of finished
audio and video products.
The administrative departments of culture of the local people’s governments at and above the county level shall be responsible for
the supervision and administration of the import of audio and video products within their respective administrative areas in accordance
with these Measures.
The customs at various levels shall be responsible for the supervision and administration of the import of audio and video products
within their respective scope of duties.
Article 5
The import of audio and video shall abide by the Constitution and the relevant laws and regulations, adhere to the orientation of
serving the people and serving the socialism, disseminate the thoughts, ethics, science and technology, and culture knowledge conducive
to the economic development and social progress.
Article 6
The State shall prohibits the import of the audio and video products that contain any of the following contents:
1)
those which go against the basic principles established by the Constitution;
2)
those which endanger the unity, sovereignty, territory integrity of the nation;
3)
those which divulge the State secrets, endangers the national security or damage the honor or interests of the State;
4)
those which incite the nationality hatred or discrimination, undermine the solidarity of the nationalities, or infringe upon the nationality
customs or habits;
5)
those which advocate evil cults or superstition;
6)
those which disrupt the public order or undermine the social stability;
7)
those which advocate obscenity, gambling, violence or instigate crimes;
8)
those which insult or defame others, or infringe upon the lawful rights and interests of others;
9)
those which harm the social morality or the fine folk culture tradition;
10)
other contents that are prohibited by laws, regulations and provisions of the State.
Article 7
The State shall apply a license system to the import of audio and video products.
Chapter 2 Import Entities
Article 8
The import of audio and video products shall be managed by the audio and video product operating entities designated by the Ministry
of Culture; no entity or individual may engage in the imports of audio and video products without the designation of the Ministry
of Culture.
Article 9
Where libraries, institutions of audio and video materials, institutions of science and technology research and schools, etc. import
the finished audio and video products used for research or teaching reference, they shall entrust the entities managing imports of
audio and video products designated by the Ministry of culture to handle the procedures for examination and approval of import.
Article 10
The audio and video product publishing entities may engage in the publishing of imported audio and video products within the approved
business scope of publishing.
Chapter 3 Import Examination
Article 11
The audio and video product import entities shall apply to the Ministry of Culture for content examination when importing audio and
video products.
Article 12
The Ministry of Culture shall establish the Committee of Content Examination of Audio and Video Products to be responsible for the
examination of the contents of the imported audio and video products. The Committee shall establish an office to be responsible for
the daily work of examination of the contents of the imported audio and video products.
Article 13
One who wishes to import finished audio and video products shall file an application with the Ministry of Culture and submit the following
documents and materials:
1)
application form for examination of the imported audio (video) products;
2)
draft of the import agreement;
3)
sample of the program, lyrics in Chinese and foreign languages;
4)
other materials needed for the content examination.
Article 14
One who wishes to import the audio and video products used for publication shall file an application with the Ministry of Culture
and submit the following documents and materials:
1)
application form for examination of the imported audio (video) products;
2)
draft of the copyright trade agreement (versions in Chinese and foreign languages), certificate of the original copyright, authorization
letter of copyright and the certification of registration issued by the copyright certification agencies of the State;
3)
sample of the program;
4)
other materials needed for the content examination.
Article 15
As for the import of the audio and video products used for exhibitions and shows, the entity holding the exhibitions and shows shall
file an application and submit the catalog and sample of the audio and video products to the Ministry of Culture for content examination.
The customs shall regard those products as temporary import goods and handle them accordingly.
Article 16
The import of the audio and video products used for information network dissemination shall be handled in reference to the provisions
of Article 14 of these Measures.
Article 17
An import entity may not purposely alter the original name and contents of the sample program submitted to the Ministry of Culture
for content examination.
Article 18
The Ministry of Culture shall make the decision on whether to approve or not within 30 days from receiving the application for import
of audio and video products. For those approved, the documents of approval shall be granted; for those not approved, the reasons
shall be explained.
The contents of the documents of approval may not be altered, where the alteration is necessary, it shall be handled anew. The documents
of approval shall be valid for only one customs declaration and may not be used accumulatively.
Chapter 4 Import Administration
Article 19
No entity or individual may publish, reproduce, wholesale, retail, rent, show for profit or disseminate through information network
the audio and video products of which the import hasn’t been approved by the Ministry of Culture.
Article 20
No entity or individual may reproduce for profit, wholesale, retail, rent or show for profit the imported audio and video products
used for research, teaching reference or exhibitions and shows.
Where the imported audio and video products used for exhibitions and shows do need to be sold or presented within China, the procedures
for approval shall be gone through in accordance with these Measures before the sale or presentation.
Article 21
The import agreement or contract signed by an import entity and a foreign party shall comply with the laws and regulations of China.
Article 22
Within the term of copyright authorization of the audio and video products approved to be imported for publication, their finished
audio and video products may not be imported.
Article 23
The publication of imported audio and video products by an audio and video publishing entity shall meet the requirements of the documents
of approval of the Ministry of Culture, and the entity may not purposely alter the program name or add or delete any program content;
when publishing the imported audio and video products, the entity must indicate the document number of the document of approval for
import issued by the Ministry of Culture on the eye-catching places of the audio and video products and the packing thereof, and
shall use the approved Chinese program name, and with respect to a program in foreign language, the name in Chinese and that in the
foreign language shall be indicated on the audio and video product and the cover packing thereof.
Article 24
The languages and characters used in the publication of imported audio and video products shall meet the language and character criterions
promulgated by the State.
Article 25
An import entity shall submit a sample to the Ministry of Culture for record within 30 days after the publication of the imported
audio and video products.
If the audio and video products imported upon the approval of the Ministry of Culture haven’t been published and released within 1
year from the day of approval, the import entity shall report to the Ministry of Culture for record and explain the reasons; as for
those of which the import has been decided to be terminated, the Ministry of Culture shall cancel their approval document numbers.
Article 26
An import entity of audio and video products shall go through the import procedures for the original tapes (original discs) or the
finished audio and video products at the customs on the basis of the document of approval for imports of audio and video products
issued by the Ministry of Culture.
Article 27
Where an individual takes or mails the audio and video products used for non-profitable purposes into or out of the borders, the relevant
administration provisions of the customs shall be applied.
Article 28
These Measures shall not apply to the audio and video products, which record the operation system, equipment specifications, special
software and other contents, that are imported together with the machinery and equipment and that are re-exported with the machinery
and equipment after import, and the customs shall check and release those products on the basis of the contracts, vouchers and other
valid bills and certificates provided by the import entity.
Chapter 5 Penalty Provisions
Article 29
If anyone purposely engages in the import of finished audio and video products without approval or purposely reproduce the audio and
video products not approved by the Ministry of Culture for import, he shall be punished according to the relevant provisions of the
Regulations on the Administration of Audio and Video Products.
Article 30
If anyone has committed any of the following acts, he shall be ordered by the administrative department of culture at or above the
level of county to stop his illegal acts and be given a warning, and the illegal audio and video products and the illegal gains shall
be confiscated; where the illegal sale income is more than 10,000 Yuan, a fine of not less than 5 times but not more than 10 times
of the illegal sale income shall be imposed concurrently; where the illegal sale income is less than 10,000 Yuan, a fine of not less
than 10, 000 Yuan but not more than 50,000 Yuan shall be imposed concurrently; where the circumstances are serious, he shall be ordered
to stop the business for rectification or the license shall be revoked by the organ that originally issued it:
1)
publishing, wholesaling, retailing, renting, showing and disseminating through information network the audio and video products of
which the import hasn’t been approved by the Ministry of Culture;
2)
wholesaling, retailing, renting and showing for profit the imported audio and video products used for research, teaching reference
or exhibitions and shows.
Article 31
If anyone, in violation of these Measures, fails to indicate the document number of the document of approval for import granted by
the Ministry of Culture when publishing the imported audio and video products, the administrative department of culture at or above
the level of county shall order him to correct the acts and give him a warning, where the circumstances are serious, he shall be
ordered to stop the business for rectification for 3 to 6 months, or the license shall be revoked by the organ that originally issued
it
Article 32
If anyone, in violation of these Measures, has committed any of the following acts, the administrative department of culture at or
above the county level shall order him to correct the acts and give him a warning, and may impose on him a fine of not less than
5,000 Yuan but not more than 10,000 Yuan:
1)
the languages and characters used in the publication of imported audio and video products failing to meet the language and character
criterions promulgated by the State;
2)
the import entity failing to submit the sample to the Ministry of Culture for record according to the provisions;
3)
failing to report to the Ministry of Culture for record and explain the reasons when failing to publish and release, within 1 year
from the day of approval, the audio and video products of which the import has been approved, or when deciding to terminate the import
of the said products.
Article 33
If any audio and video publishing entity, when publishing and disseminating through information network the imported audio and video
products, violates the requirements of the documents of approval of the Ministry of Culture, purposely alters the program name or
add or delete the program contents, the Ministry of Culture shall give it a warning and impose on it a fine of not less than 10,000
Yuan but not more than 30,000 Yuan.
If the unit purposely adds or deletes the contents of the audio and video products imported after examination and approval, the administrative
department of culture at or above the county level shall give it a warning, order it to stop publishing, reproducing, wholesaling
and spreading through information network those audio and video products, confiscate the illegally managed audio and video products
and the illegal gains, and order it to stop business for rectification for half to 1 year; if the illegal sale income is more than
10,000 Yuan, a fine of not less than 5 times but not more than 10 times of the illegal income shall be imposed concurrently; if the
illegal sale income is less than 10,000 Yuan, a fine of not more than 50,000 Yuan may be imposed concurrently; if the circumstances
are serious, the license shall be revoked by the organ that originally issued it. If a crime has been constituted, the criminal responsibilities
shall be investigated.
Article 34
Anyone who violates the Customs Law and the relevant administration provisions shall be dealt with by the customs.
Chapter 6 Supplementary Provisions
Article 35
The import of audio and video products from the Special Administrative Region of Hong Kong, the Special Administrative Region of Macao
and the Taiwan area of China shall be carried out with reference to these Measures.
Article 36
The power to interpret these Measures shall remain with the Ministry of Culture. Where any customs operations are involved, the General
Administration of Customs shall be responsible for the interpretation.
Article 37
These Measures shall enter into force on June 1, 2002, and the Measures for the Administration of Import of Audio and Video Products
promulgated by the Ministry of Culture and the General Administration of Customs on April 30, 1999, shall be nullified simultaneously.
The Ministry of Culture, the General Administration of Customs
2002-04-17
e03190,e03189200209252002093020060317China Internet Network Information Centreepdf/e03188.pdfGDomain Name, internet, Domain Name Dispute, Domain Name Registratione03188CNNIC Domain Name Dispute Resolution PolicyChina Internet Network Information CentreSeptember 25, 2002Article 1 This Policy is formulated in accordance with relevant Chinese laws, administrative regulations and policies, as well as the provisions
of the “China Internet Domain Names Regulations”, in order to resolve the domain name disputes on the Internet.Article 2 This Policy is applied to resolve the disputes stemming from registration or use of the .CN domain names and Chinese domain names,
which are subject to the management of the China Internet Network Information Centre (“CNNIC”).Article 3 The Domain name disputes shall be resolved with the Dispute Resolution Service Providers recognized by CNNIC.The Dispute Resolution Service Providers shall, in accordance with this Policy and the Rules for CNNIC Domain Name Dispute Resolution
Policy, formulate the supplemental rules of dispute resolution procedure and Panellist appointment.Article 4 The Dispute Resolution Service Providers shall implement a system whereby Panels of experts are responsible for the resolution of
disputes. The Panels are composed of one or three Panelists, who have expertise on computer networks and laws, possess a high sense
of professional ethics and are capable of rendering independent and unbiased Decisions in domain name disputes. The List of the Panelists
shall be published on line by the Dispute Resolution Service Providers, and the Complainants and the Respondents may select the Panelists
there from.Article 5 Any institution or person who considers that a registered domain name conflicts with the legitimate rights or interests of that institution
or person may file a Complaint with any of the Dispute Resolution Service Providers.Upon the acceptance of the Complaint, Dispute Resolution Service Providers shall form a Panel in accordance with the procedural rules.
The Panel shall, in accordance with this Policy, the relevant procedural rules, and the principle of independence, impartiality and
convenience, render a Decision to the dispute within 14 days from the date of the appointment of the Panel.Article 6 The language of the domain name dispute resolution proceeding shall be Chinese, unless otherwise agreed by the parties or determined
by the Panel.Article 7 The Complainant and the Respondent shall bear the burden of proof for their own claims.Article 8 Support of a Complaint against a registered domain name is subject to the following conditions:(1)the disputed domain name is identical with or confusingly similar to the Complainant’s name or mark in which the Complaint has civil
rights or interests;(2)the disputed domain name holder has no right or legitimate interest in respect of the domain name or major part of the domain name;(3)the disputed domain name holder has registered or is being used the domain name in bad faith.Article 9 Any of the following circumstances may be the evidence of the registration or use of a domain name in bad faith:(1)the disputed domain name holder has registered or acquired the domain name for the purpose of selling, renting or otherwise transferring
the domain name to obtain unjustified benefits;(2)the disputed domain name holder registered the domain name in order to prevent the owners of the name or mark from reflecting the
name or the mark in a corresponding domain name, provided that the domain name holder has been engaged in a pattern of such conduct;(3)the disputed domain name holder has registered or acquired the domain name for the purpose of damaging the Complainant’s reputation,
disrupting the Complainant’s normal business or creating confusion with the Complainant’s name or mark so as to mislead the public;(4)other circumstances which may prove the bad faith.Article 10 If a Complainant files Complaints against multiple domain names owned by the same domain name holder, the Complainant or the Respondent
may request that the Dispute Resolution Service Providers consolidate the disputes before a single Panel. The Panel may determine
whether to make the consolidation.Article 11 Before the Panel makes the Decision to a dispute, either party who believes that any of the Panelists has a material interest in the
opposite party and the material interest could influence the impartiality of the Decision may request the Dispute Resolution Service
Provider to ask the Panelist to withdraw from the Panel. In the request, the facts and reasons shall be stated and the supporting
evidence be provided. Dispute Resolution Service Provider shall have the discretion to determine whether the Panelist shall withdraw.Article 12 CNNIC and the registrars shall not participate in the domain name resolution proceedings in any capacity or manner other than providing
the information relevant to the registration and use of the domain name upon the request of the Dispute Resolution Service Providers.Article 13 The Panel shall make the Decisions on the basis of the facts related to the dispute and the evidence submitted by the Complainant
and the Respondent.Where the Panel supports the Complaint, the registered domain name shall be cancelled or transferred to the Complainant; otherwise,
the Complaint shall be rejected.Article 14 Before a Complaint is filed pursuant to this Policy, or during the dispute resolution proceedings, or after the expert Panel has rendered
its Decision, either party may institute an action concerning the same dispute with the Chinese court at the place where CNNIC ‘s
principal office is located or subject to the agreement between the parties, submit the dispute to a Chinese arbitration institution
for arbitration.Article 15 If the Dispute Resolution Service Provider rules in its Decision to cancel the registered domain name or to transfer it to the Complainant,
the domain name Registrar, before enforcing the Decision, shall wait 10 calendar days calculating from the date on which the Decision
is published. If during such waiting period the Respondent submits valid proof attesting that a competent judicial authority or arbitration
institution has accepted the relevant dispute, the registrar shall not enforce the Decision of the Dispute Resolution Service Provider.After the Decision of the Dispute Resolution Service Provider is suspended, the Registrar shall take the further action as follows:(1)if any proof attests that the parties have reached a settlement by themselves, the Registrar shall enforce such settlement.(2)if any proof attests that the party that instituted the judicial action or applied for arbitration has withdrawn the Complaint or
the relevant action or Complaint has been rejected, the Registrar shall enforce the Dispute Resolution Service Provider’s Decision;(3)if the judicial authority or arbitration institution has rendered a judgment or an award that has become legally effective, the Registrar
shall enforce such judgment or award;Article 16 During the dispute resolution proceedings and 10 calendar days after the Decision is published, the domain name holder shall not apply
for the transfer or cancellation of the disputed domain name, unless the transferee agrees in writing to accept the Decision of the
Dispute Resolution Service Provider.Article 17 A Dispute Resolution Service Provider shall establish a dedicated website, receive Complaints concerning domain name disputes on line
and make relevant materials concerning the domain name dispute cases publicly available. However, the Dispute Resolution Service
Provider, upon the request of the Complainant or the Respondent, may keep confidential materials and information that may cause damage
to the interests of the party if made publicly available.Article 18 CNNIC has the right to amend this Policy in accordance with the development of the Internet and the domain name system and revision
of the relevant Chinese laws, administrative regulations and policies, etc. The amended Policy will be published on the website and
be implemented 30 calendar days after the date of publication. The amended Policy shall not apply to domain name disputes that had
been submitted to a Dispute Resolution Service Provider prior to the amendment of this Policy.The amended Policy will automatically become a part of existing domain name registration agreements between the domain name holder
and the Registrar. If a domain name holder does not agree to be bound by the Policy or its amended version thereof, he shall notify
the Registrar in a timely manner. The Registrar will continue the domain name services for the domain name holder for 30 calendar
days after the receipt of such notification and cancel the relevant domain name registration after the passage of the 30 calendar
days.Article 19 This Policy is subject to the interpretation of CNNIC.Article 20 This Policy shall be implemented since September 30, 2002. Chinese Character Domain Name Dispute Resolution Policy (Trial Implementation)
ceases effect simultaneously.
China Internet Network Information Centre
2002-09-25
Circular of the Ministry of Communications on Strengthening the Administration of Tramp Ship Transport Across Taiwan Strait
JiaoShuiFa [2002] No.552
November 26, 2002
The communications departments (bureaus, commissions) and maritime bureaus of the provinces, autonomous regions and municipalities
directly under the Central Government, the bureaus (commissions) of communications and maritime bureaus of the municipalities separately
listed on the State plan, and the harbor bureaus, harbor group corporations and maritime bureaus of the open ports:
In accordance with the Measures for the Administration of Shipping Across Taiwan Strait promulgated by the Ministry of Communications
in August of 1996 and the Regulations of the People’s Republic of China on International Shipping promulgated by the State Council
in December of 2001, no enterprise or ship may, without the approval of the communications authority under the State Council, operate
water transport straight from China’s mainland to Taiwan area or vice versa, or through a third place.
During the recent years, the Ministry of Communications have effectively administered the across-strait liner transport, which is
in good order and provides effective and reliable transport services for the across-strait trade. Recently it has been found that
some ship companies engaging in tramp ship transport across Taiwan Strait hasn’t implemented the aforesaid provisions, especially
a small number of foreign ship companies operate across-strait transport business without approval, and thus seriously violate the
policies and provisions on across-strait transport.
In order to strictly execute the regulations and to promote the realization of complete and straight navigation across Taiwan Strait,
the administration of across-strait tramp ship transport must be strengthened, all the ship companies engaging in across-strait transport
shall go through the examination and approval procedures with the Ministry of Communications pursuant to the provisions as soon as
possible. From the day of promulgation of this Circular to December 31, 2002, For the across-strait goods transport contracts that
have been signed, and the goods concerned must be transported within this year, the mainland ship companies shall file applications
directly with the Ministry of Communications according to the procedures for submitting separate applications for approval; the ship
companies of Taiwan, Hong Kong and Macao areas shall file applications directly with the Ministry of Communications through their
mainland ship agencies with the power of ship agency for foreign trade transport; if it is really necessary, foreign ship companies
may also file applications directly with the Ministry of Communications through the aforesaid ship agencies in China’s mainland.
The Ministry of Communications will examine and approve the aforesaid applications on a separate basis. The following materials shall
be provided for the application: Written application (including goods to be transported, calling port, beginning and end time), business
license (copy) and ship materials (including ship classification, nationality of ship, and ship ownership certificate etc). For across-strait
tramp ship transport by time charter or bareboat charter, copy of the charter contract or corresponding documents shall also be provided.
To apply for undertaking across-strait tramp ship transport after January 1, 2003, the applicant shall be a ship company registered
in China’s mainland with the qualification for foreign trade transport; or a ship company registered in Hong Kong, Macao that is
the asset of permanent residents of Hong Kong or Macao, or of residents of China’s mainland or Taiwan area; or a ship company registered
in Taiwan area. Among them, the mainland ship company shall be a direct applicant, the ship company of Hong Kong, Macao or Taiwan
shall entrust its ship agency in China’s mainland that has the power of ship agency for foreign trade transport to file the application
on its behalf. The aforesaid ship companies shall use the ships provided for in the Measures for Administration of Shipping Across
Taiwan Strait to undertake tramp ship transport, no ships of foreign companies may be used except for special needs.
The application process shall follow the relevant provisions of the Measures for Administration of Shipping Across Taiwan Strait (Decree
[1996] No. 6 of the Ministry of Communications of the People’ s Republic of China) and the Circular on Relevant Issues Concerning
Implementation of the Measures for Administration of Shipping Across Taiwan Strait (JiaoShuiFa [1996] No.941), and the application
shall be examined by the communications authority of the province, autonomous region or municipality directly under the Central Government
of the place where the applicant or the applicant’s agent is located before being transmitted to the Ministry of Communications for
examination and approval. The Ministry of Communications shall make the decision on whether to approve or not within 45 days from
receiving the full set of application materials examined and transmitted, and shall send a copy of the decision opinions to the communications
authority of the province, autonomous region or municipality directly under the Central Government that made the examination.
The application materials shall include: written application, sample of the ocean bill of lading used by the applicant ship company,
credit certifications of the applicant ship company, business license (copy) and ship materials (including ship classification, nationality
of ship, and ship ownership certificate etc); for across-strait tramp ship transport by time charter or bareboat charter, copy of
the charter contract or corresponding documents shall also be provided.
The Ministry of Communications shall issue the License for Waterway Transport Across Taiwan Strait and the Certificate of Ship Operation
Across Taiwan Strait to the ship companies that have been approved to operate tramp ship transport across Taiwan Strait. The valid
term of the license and certificate is 3 years. For continuous operation of tramp ship transport across Taiwan Strait after the expiration
of the valid term, the relevant ship company shall file a written application pursuant to the aforesaid application procedures 40
days earlier. If there are new provisions after the actual straight navigation across Taiwan Strait is realized, such new provisions
shall be observed.
From January 1, 2003, the relevant departments of the ports shall make strict inspections, and shall seriously deal with the ship
companies that undertake across-strait transport without the License for Waterway Transport Across Taiwan Strait and the Certificate
For Ship Operation Across Taiwan Strait.
Circular of the Ministry of Commerce on the Pilot Work concerning the Examination and Approval of Overseas Investments
Shang He Zi [2003] No. 16
April 28, 2003
The foreign trade and economic cooperation commissions (departments or bureaus) of Beijing City, Tianjin City, Shanghai City, Jiangsu
Province, Zhejiang Province, Ningbo City, Fujian Province, Xiamen City, Shandong Province, Qingdao City, Guangdong Province and Shenzhen
City,
In order to accelerate the “going global” strategy and encourage the relatively advantageous enterprises of various type of ownership
to make investments abroad, this Ministry has carried out a pilot reform, namely decentralizing the power to examine and approve
outbound investments and streamlining the outbound investment examination and approval formalities in Beijing City, Tianjin City,
Shanghai City, Jiangsu Province, Shandong Province, Zhejiang Province, Guangdong Province, Fujian Province, Qingdao City, Ningbo
City, Shenzhen City and Xiamen City. In order to do well the pilot work, find the problems and summarize the experience in time,
you are hereby notified of the items as follows:
1.
In accordance with the requirements of pilot documents, the foreign trade and economic cooperation administrative department of each
pilot province or city (hereinafter referred to as the local administrative department) shall do the examination and approval, archival
filing and statistical work involving the overseas enterprises in an earnest manner. With the approval from a local administrative
department of setting up an overseas enterprise (institution), an Archival Filing Form of Overseas Enterprises (Institutions) Applying
for an Approval Certificate (for specimen, see the Annex) shall be filled out and an official seal shall be affixed to it. An approval
certificate shall be fetched by the applicant from (the Cooperation Department of) this Ministry upon the strength of the Archival
Filing Form and the reply of the local administrative department. After the on-line certificate issuance conditions are mature, the
approval certificates shall be issued by the local administrative department on behalf of this Ministry.
2.
For the purpose of keeping updated of the new situations happening in the outbound investments of China, when an applicant makes an
application for an approval document for merger, procuring (exchanging) shares, getting listed abroad, setting up an investment and
holding enterprise or institution abroad, or setting up a development zone or research center abroad, besides an archival filing
form and the reply of the local administrative department, it shall report to this Ministry a complete set of application materials
which it reports to the local foreign trade and economic cooperation administrative department.
3.
In the reply to an enterprise, a local administrative department shall make a clear requirement for the enterprise to register in
the economic and commercial office of the Chinese embassy or consulate based abroad, participate in the joint annual inspection on
overseas investments in time and carry out the foreign exchange register formalities in time. Any equity of any overseas enterprise
may not be possessed in the name of an individual. Under any special situation, if actually necessary to hold such equity in the
name of an individual, the entrusted agreement shall be reached by notary at home and abroad in accordance with the related provisions.
4.
Any local administrative department may not grant the power of examining and approving overseas investments to any inferior entity
without permission of this Ministry.
5.
All pilot entities shall make a brief summary on the pilot work by the end of each quarter and give a report concerning the problems,
opinions or suggestions on the pilot work to (the Cooperation Department of) this Ministry in time.
Appendix
Appendix:
Archival
Filing Form of Overseas Enterprises (Institutions) Applying for an Approval
Certificate
Seal of Entity: Date of Filing: Monetary
Unit: (USD 10, 000)
Name
of Overseas Enterprise (Institution) :
Address:
Establishment Form: New Establishment_______Merger_________Having
Shares ______
Industry Concerned:
Investors
(Sponsor)
Chinese Party:
Foreign Party:
Registered Capital
Total Investment:
Actual Investment
Chinese Party
Investment of Foreign Currency in Cash:
Investment in Kind:
Foreign Party
Investment of Foreign Currency in Cash:
Investment in Kind
Other
Funds
Business Scope
Product:
Production Scale:/ Year
Business Term: Year(s)
Number of Personnel Assigned abroad:
Approval Document
To Be
Filled in by the Ministry of Commerce Hereunder
Initial Examination
Re-examination
Issued by
Serial Number of the Approval Document
Date
of Issuance:
Notes:
1. The Archival Filing Form may be printed by any entity in accordance with this
format.
2. The words as follows shall be filled in the column "Industry in which the
overseas enterprise falls", the import
& export, transportation, tourism,
project contracting, research and development, consulting, machinery
manufacturing, electronics
and household appliances, light industry, textiles,
clothing processing, agricultural development, oil resource development, mineral
resource development, smelting, fishery, real estate development as well as
investment and controlling shares.
3.Only the contents as follows shall be filled in the column
"Overseas
Institution", the name, address, sponsor, business
scope, workers assigned
abroad as well as approval document.
4. The contents filled in the archival filing form shall be genuine, accurate
and complete and shall be consistent with those
in the approval document.
5. The archival filing form shall be valid after bearing the official seal of
the local foreign trade and economic cooperation
administrative department.
