The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Foreign Exchange Decree of the Ministry of Foreign Trade and Economic Cooperation and the State Administration of Foreign No. 32 Interim Measures for Joint Annual Inspection of Overseas Investment are hereby promulgated and shall be come into force as of the The Minister of Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng The Minister of the State Administration of Foreign Exchange, Guo Shuqing October 31, 2002 Interim Measures for Joint Annual Inspection of Overseas Investment Chapter I General Provisions Article 1 The measures are aimed to enhance the macro-control of, command the variations of, and promote the sound development of overseas investment. Article 2 A joint annual inspection is applied to overseas investment by the country. The Ministry of Foreign Trade and Economic Cooperation Article 3 Overseas enterprises shall accept annual inspection through their investing principals. Article 4 The “oversea enterprises” mentioned in the Measures refer to those enterprises (except financial ones) set up by corporate legal persons Chapter II Time, Items and Procedures of the Annual Inspection Article 5 The department (commissions and bureaus) of foreign trade and economic activities of each province, autonomous region and municipalities Article 6 The work time for annual inspection extends from April 1 to June 15 each year. Article 7 items subject to annual inspection: I. Status of overseas investment. II. The appraisal of overseas enterprises by overseas business organizations of China. III. Observation of overseas-investment-related regulations of China by investing principals and their oversea enterprises. Article 8 Procedures of the annual inspection I. The report of annual inspection be co-prepared by the MOFTEC and the SAFE and be published on the web page for downloading by domestic II. The downloading should be completed within the stipulated time and the information filled in concerning overseas enterprises should III. A copy of the finished document should be submitted to the departments (commissions or bureaus) of foreign trade and economic activities Chapter III Auditing of Annual Inspection Article 9 The scoring standards specified in the Measures should serve as the basis for determining the grades (1, 2 and 3) as the result of Article 10 The certificate of annual inspection uniformly printed by the country is to be sealed for this specific purpose by the annual inspection Article 11 The report (a copy) and result of annual inspection should be submitted to the MOFTEC by the annual inspection agencies before June Article 12 The MOFTEC is responsible for notifying finance, customs, taxation, foreign affairs, banking, insurance and other departments of the Article 13 The inspection is carried out regularly each year and there shall be no other focused inspection of any form on overseas investment. Article 14 No fee should be charged by any department in the name of annual inspection. Chapter IV Results of Annual Inspection Article 15 The result is valid within a year since the day of specialized sealing for annual inspection. Article 16 The investing principal, after the overseas enterprise obtains the certificate in the annual inspection, should present the certificate Article 17 Priority is to be given to grade 1 obtainer in preferential and supportive treatments concerning overseas investment; priority is Article 18 Grade 2 obtainers do not enjoy preferential or supportive treatments. Article 19 Grade 3 obtainers do not enjoy preferential or supportive treatments and are allowed a one-year period for rectification and improvement, Chapter V Penalty Provisions Article 20 The MOFTEC and relevant departments are to take the following measures for those not declaring for annual inspection: I. Suspend accepting applications of the investing principal for overseas-investment-related foreign exchange buying or payment and overseas II. Do not accept new applications of the investing principal for setting up overseas enterprises. III. Do not accept applications for sending staff overseas. Article 21 Sampling reviews are to be performed by the MOFTEC in joint efforts with relevant departments and a time limit can be imposed on relevant Chapter VI Supplementary Provisions Article 22 The Measures shall serve as reference with regard to the annual inspection of domestic-invested enterprises in HK, Macao and Taiwan. Article 23 “Certificate of approval for overseas processing and assembling enterprises using exported materials or parts” must have the certificate Article 24 The Measures are subject to the interpretation of the MOFTEC. Article 25 The Measures shall enter into force as of January 1, 2003. |
The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Foreign Exchange
2002-10-31