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