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CIRCULAR OF THE MINISTRY OF COMMERCE AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING RELEVANT ISSUES ON REGISTERING AND ADMINISTRATING INTERNATIONAL FREIGHT FORWARDING ENTERPRISE

the Ministry of Commerce, the State Administration for Industry and Commerce

Circular of the Ministry of Commerce and the State Administration for Industry and Commerce Concerning Relevant Issues on Registering
and Administrating International Freight Forwarding Enterprise

Shang Mao Fa [2005] No. 32

The competent commerce departments and the administrative departments for industry and commerce of all the provinces, autonomous regions,
municipalities directly under the Central Government, and cities directly under state planning, and the Bureau of Communications
of Shenzhen Municipality:

The Decision of the State Council on Canceling and Adjusting the Items Subject to Administrative Examination and Approval (III) (Guo
Fa [2004]No. 16 ) has canceled the item of international freight forwarding enterprise, the qualifications of which was subject to
examination and approval. In order to implement the cancellation of the said item, intensify the follow-up supervision and administration,
and ensure the healthy and orderly development of the international freight forwarding enterprise in China, the relevant issues are
hereby notified as follows:

1.

After the cancellation of the said item, the competent commerce department will no longer examine and approve the application of an
enterprise for engaging in the international freight forwarding business, and the applicant may directly apply for the registration
in the local administrative department for industry and commerce. No enterprise is allowed to engage in the relevant business without
registration and permission

2.

The administrative department for industry and commerce shall handle the registration in strict compliance with Article 8 of the
Provisions of the People’s Republic of China on the Administration of the International Freight Forwarding Enterprise ( promulgated
by the Decree No.5 [1995] of the former Ministry of Foreign Trade and Economic Cooperation upon the approval of the State Council;
hereinafter referred to as the Provisions), which prescribes the minimum amount of registered capital for engaging in international
freight forwarding business by sea, air or land respectively. Where an enterprise takes international freight forwarding business
as its main business, its name shall include the words of “international freight forwarding” or other similar words; the business
scope of the enterprise shall be verified and approved as the “international freight forwarding business for ￿a￿ in principle.
Where the business scope needs to be specifically verified, it shall be verified and approved in light of the relevant business items
as provided in Article 17 of the Provisions. In particular, if the business scope shall be subject to the examination and approval
of the relevant competent department according to the relevant laws or administrative regulations, the relevant approval document
shall be submitted to the competent department for the purpose of registration. In case an enterprise registered prior to the cancellation
of the said item fails to satisfy the above requirements, it shall be regulated by the above provisions.

3.

The competent commerce departments shall actively explore the methods and means for the administration of the international freight
forwarding industry and, strengthen the regulation and administration of the industry. Adequate support shall be given to the industrial
associations in the administration of the industry so as to bring their role into full play. The industrial associations shall enhance
self-discipline, regulate the business behaviors and protect the legitimate rights and interests of their members.

4.

The competent commerce department and the administrative department for industry and commerce at all level shall strengthen information
communications, coordination and cooperation, perform their duties and responsibilities earnestly, conduct administration in strict
compliance with the law, support legal operation and fair competition, crack down on illegal operations, further regulate the order
in the international freight forwarding market, and work together to promote the development of China’s foreign trade

In case any problem arises in the implementation of the present Circular in any locality, please timely report to the Ministry of
Commerce (the Foreign Trade Department) and the State Administration for Industry and Commerce (the Enterprise Registration Bureau).

Ministry of Commerce

The State Administration for Industry and Commerce

February 1st, 2005



 
the Ministry of Commerce, the State Administration for Industry and Commerce
2005-02-01

 







RULES FOR APPROVING THE ACCESS OF BANKING FINANCIAL INSTITUTIONS TO THE NATIONWIDE INTER-BANK BORROWING MARKET

the People’s Bank of China

Announcement of the People’s Bank of China

No. 3

The Rules for Approving the Access of Banking Financial Institutions to the Nationwide Inter-Bank Borrowing Market, which have been
formulated by the People’s Bank of China pursuant to the Law of the People’s Republic of China on the People’s Bank of China, the
Administrative Licensing Law of the People’s Republic of China and the Measures of the People’s Bank of China for the Implementation
of Administrative Licensing, are promulgated hereby for implementation.

Where any banking financial institution engages in inter-bank borrowing business without being approved for access to the nationwide
inter-bank borrowing market, the case shall be reported to the local branch or business management department or the central sub-branch
in the provincial capital of the People’s Bank of China for archival purposes. And the specific measures shall be formulated separately
by the local branch, business management department or the central sub-branch in provincial capital of the People’s Bank of China.

The People’s Bank of China

January 21, 2005

Rules for Approving the Access of Banking Financial Institutions to the Nationwide Inter-Bank Borrowing Market

Article 1

With the view of regulating the procedures for examination and approval of the applications by the banking financial institutions
for access to the nationwide inter-bank borrowing market (hereinafter referred to as the “inter-bank borrowing market), the present
Rules are formulated pursuant to the Administrative Licensing Law of the People’s Republic of China, the Law of the people’s Republic
of China on the People’s Bank of China and the Law of the People’s Republic of China on Commercial Banks.

Article 2

The term “banking financial institutions” mentioned in the present Rules shall refer to deposit-taking financial institutions, such
as commercial banks, urban credit cooperatives and rural credit cooperatives, and policy banks, which are established within the
territory of the People’s Republic of China.

Article 3

To apply for access to the inter-bank borrowing market, a banking financial institution established with the approval of the banking
regulatory institution under the State Council shall meet the following requirements:

(1)

having a perfect organization structure and a perfect management system;

(2)

having no records of punishment imposed by the People’s Bank of China, the banking regulatory institution under the State Council
or other competent departments due to its illegal or irregular operation in the past two years;

(3)

no cases of insolvency in the past two years; and

(4)

other requirements as may be provided for by the People’s Bank of China.

To apply for access to the inter-bank borrowing market, a foreign-funded commercial bank must, in addition to the requirements provided
for in the preceding paragraph, obtain the approval of the banking regulatory institution under the State Council for undertaking
RMB business; an urban credit cooperative applying for access to the inter-bank borrowing market must complete its restructuring;
in the case of a rural credit cooperative, the application for access to the inter-bank borrowing market must be made by a county-level
cooperative; a policy bank applying for access to the inter-bank borrowing market must have issued bonds in the inter-bank bond market
in the manner of marketization.

If a state-owned commercial bank or a joint-stock commercial bank wishes to authorize any of its first-level branches to enter the
inter-bank borrowing market, its headquarters must be a member of the inter-bank borrowing market.

Article 4

The application of a state-owned commercial bank or a joint-stock commercial bank for access to the inter-bank borrowing market shall
be submitted to the headquarter of the People’s Bank of China for approval.

Article 5

To apply for access to the inter-bank borrowing market, a state-owned commercial bank or a joint-stock commercial bank shall submit
the following materials to the headquarter of the People’s Bank of China:

(1)

an application for access to the inter-bank borrowing market;

(2)

a photocopy of the Financial License;

(3)

a photocopy of the Business License;

(4)

the articles of association;

(5)

the internal control system for capital management;

(6)

the balance sheets and profit and loss statements for the past two years;

(7)

particulars on the department and personnel who take charge of the capital operation; and

(8)

other materials as may be required by the People’s Bank of China.

Article 6

To authorize any of its first-level branches to enter the inter-bank borrowing market, a state-owned commercial bank or a joint-stock
commercial bank must submit the following materials to the headquarter of the People’s Bank of the China:

(1)

an application for authorizing such first-level branch to enter the inter-bank borrowing market;

(2)

an authorization letter on the access to inter-bank borrowing market and the authorized inter-bank borrowing limit given to such first-level
branch;

(3)

the income and expenses form of credit funds of the first-level branch;

(4)

the internal control system for capital management of the first-level branch;

(5)

particulars on the department and personnel who take charge of the capital operation of the first-level branch; and

(6)

other materials as may be required by the People’s Bank of China.

Article 7

To apply for access to the inter-bank borrowing market, an urban commercial bank shall submit an application to the local office of
the People’s Bank of China, which shall make preliminary examination and then submit the application level by level to the headquarter
of the People’s Bank of China for approval.

Article 8

To apply for access to the inter-bank borrowing market, an urban commercial bank shall submit the following materials to the local
office of the People’s Bank of China:

(1)

an application for access to the inter-bank borrowing market;

(2)

a photocopy of the Financial License;

(3)

a photocopy of the Business License;

(4)

the articles of association;

(5)

the internal control system for capital management;

(6)

the balance sheets and profit and loss statements for the past two years;

(7)

particulars on the department and personnel who take charge of the capital operation; and

(8)

other materials as may be required by the People’s Bank of China.

Article 9

The urban commercial bank, which was approved by the People’s Bank of China to engage in inter-bank borrowing business, shall carry
out its business in the name of the bank as a corporation with no branches being allowed to engage in inter-bank borrowing business.

Article 10

When applying for access to the inter-bank borrowing market, the headquarter of a foreign-funded commercial bank with the corporation
institute established within China or a foreign-funded commercial bank branch with the corporation institution established outside
China shall submit an application therefore to the local office of the People’s Bank of China, which shall make preliminary examination
and then submit the application level by level to the headquarter of the People’s Bank of China for approval.

Article 11

To apply for access to the inter-bank borrowing market, a foreign-funded commercial bank shall submit the following materials to the
local office of the People’s Bank of China:

(1)

an application for access to the inter-bank borrowing market;

(2)

a photocopy of the Financial License;

(3)

a photocopy of the Business License;

(4)

an approval document issued by the banking regulatory institution under the State Council to the foreign-funded commercial bank for
its engaging in RMB business;

(5)

the articles of association;

(6)

the internal control system for capital management;

(7)

the balance sheets and profit and loss statements for the past two years;

(8)

particulars on the department and personnel who take charge of the capital operation; and

(9)

other materials as may be required by the People’s Bank of China.

Article 12

A foreign-funded commercial bank with the bank as a corporation established within China, which has been approved by the People’s
Bank of China to engage in the inter-bank RMB borrowing business, shall carry out its business in the name of the bank as a corporation,
with no branches being allowed to engage in inter-bank borrowing business.

Article 13

The application of an urban or rural credit cooperative for access to the inter-bank borrowing market shall be preliminarily examined
by the local office of the People’s Bank of China and then be submitted to the relevant branch, business management department or
central sub-branch in the relevant provincial capital of the People’s Bank of China for examination and approval.

Article 14

To apply for access to the inter-bank borrowing market, an urban or rural credit cooperative shall submit the following materials
to the local office of the People’s Bank of China:

(1)

an application for access to the inter-bank borrowing market;

(2)

a photocopy of the Financial License;

(3)

a photocopy of the Business License (a copy of the replica);

(4)

the articles of association;

(5)

the internal control system for capital management;

(6)

the balance sheets and profit and loss statements for the past two years;

(7)

particulars on the department and personnel who take charge of the capital operation; and

(8)

other materials as may be required by the local office by the People’s Bank of China.

Article 15

The application of a policy bank for access to the inter-bank borrowing market shall be submitted to the headquarter of the People’s
Bank of China for approval.

Article 16

To apply for access to the inter-bank borrowing market, a policy bank shall submit the following materials to the headquarter of the
People’s Bank of China:

(1)

an application for access to the inter-bank borrowing market;

(2)

a photocopy of the Financial License;

(3)

a photocopy of the Business License;

(4)

the annual bond issue plan as approved by the People’s Bank of China;

(5)

the internal control system for capital management;

(6)

the balance sheets and profit and loss statements for the past two years;

(7)

particulars on the department and personnel who take charge of the capital operation; and

(8)

other materials as may be required by the People’s Bank of China.

Article 17

Every policy bank approved by the People’s Bank of China to engage in inter-bank borrowing business shall carry out its business in
the name of the bank as a corporation, with no branches being allowed to engage in inter-bank borrowing business.

Article 18

As for the time limit for the examination and approval by the People’s Bank of China and its offices or branches of applications by
banking financial institution for access to the inter-bank borrowing market, Articles 28 and 29 of the Measures of the People’s Bank
of China for the Implementation of Administrative Licensing shall apply.

Article 19

Any banking financial institution, which has obtained the approval for access to the inter-bank borrowing market, shall make necessary
disclosure of the information to the market truly, accurately and completely.

Article 20

Any banking financial institution may, of its own accord, apply to the People’s Bank of China for exiting the inter-bank borrowing
market.

Article 21

Where any banking financial institution, which has entered the inter-bank borrowing market, violates any provisions concerning the
inter-bank borrowing market, shall be punished by the People’s Bank of China in accordance with the Law of the People’s Republic
of China on the People’s Bank of China, Measures for Punishment Against Financial Illegal Acts and other relevant laws and regulations.
And the case shall be reported to the banking regulatory institution under the State Council.

Article 22

The power to interpret the present Rules shall remain with the People’s Bank of China.

Article 23

The present Rules shall come into force as of the date of promulgation.



 
the People’s Bank of China
2005-01-21

 







CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...