19960902The Ministry of Foreign Trade and Economic Cooperation
The Ministry of Foreign Trade and Economic Cooperation Order of the The Ministry of Foreign Trade and Economic Cooperation No.3 “Interim Measures for the Experiment in the Establishment of Chinese-foreign Joint Venture Foreign Trade Companies” is approved by Minister of the Ministry of Foreign Trade and Economic Cooperation: Wu Yi September 30,1996 Interim Measures for the Experiment in the Establishment of Chinese-foreign Joint Venture Foreign Trade Companies Article 1 These Measures are formulated in accordance with “The Foreign Trade Law of the People’s Republic of China”, “The Law of the People’s Article 2 These Measures shall be applicable to Chinese-foreign joint venture foreign trade companies(hereinafter referred to as “joint venture Article 3 The joint venture foreign trade company shall be a limited liability company. The percentage of the registered capital of Chinese Article 4 The following conditions shall be satisfied in the establishment of a joint venture foreign company: (1) A foreign company shall have the following qualifications: a. a turnover of over US$ 5 billion in the year preceding the application; b. an average annual trade volume of over US$ 30 million with China during the three years preceding the application; c. A representative office has been set up within the territory of China for more than three years prior to the application, or an investment (2) A Chinese company shall have the following qualifications: a. having authorization in foreign trade operations; b. an average annual import-export volume of over US$ 200 million during the three years preceding the application, out of which the c. having set up more than three branches, subsidiaries and joint ventures outside the territory of China, with an average annual turnover (3) A joint venture foreign trade company shall have the following qualifications: a. Its registered capital shall not be less than RMB 100 million yuan; b. Having its own name and organization; c. Having necessary place, professional staff and other material conditions suitable for foreign trade operations. Article 5 In applying for the establishment of a joint venture foreign trade company, the Chinese company shall submit the following documents (1) project proposal and the feasibility study, contract and constitution signed by the Chinese and foreign parties; (2) certificates of registration(copies) of the Chinese and foreign parties, credibility certificates and legal representative certificates; (3) certificate of approval of the foreign company’s invested enterprise in China(copy), or approval paper for the establishment of representative (4) certificates of registration of the Chinese company’s branch, subsidiary and joint venture outside the territory of China(copy); (5) tables of assets and liabilities of the Chinese and foreign parties in the past three years and the certificates of confirmation issued (6) business scope of the proposed joint venture foreign trade company; (7) other documents as required by the department in charge of foreign trade and economic cooperation of the state. A certificate of approval for the joint venture foreign trade company shall be issued by the department in charge of foreign trade Article 6 Upon approval by the state of the application for the establishment of the joint venture foreign trade company, the Chinese company Article 7 Funding by the foreign company for the registered capital of the joint venture foreign trade company can be in convertible currency, Parties in the joint venture foreign trade company shall, within one month starting from the date of issuance of the business license, Article 8 The joint venture foreign trade company shall engage in selfoperations or agency business operations of import and export of goods Article 9 Import or export of commodities under quota and license control by the state for import and export can be effected upon approval after Article 10 The joint venture foreign trade company shall handle foreign exchange settlement, selling and payment in accordance with the relevant Article 11 The joint venture foreign trade company shall effect payment of taxes in accordance with relevant taxation laws and regulations of Article 12 The joint venture foreign trade company shall, at regular intervals, submit reports and tables of finance, accounting and statistics Article 13 The joint venture foreign trade company shall apply to join the chamber of commerce for import and export or the association enterprises Article 14 The joint venture foreign trade company shall abide by the laws and regulations of China and put itself under the jurisdiction of Violation of laws and regulations of China on the part of the joint venture foreign trade company shall be handled in accordance with Article 15 Reference shall be made to these Measures with regard to the establishment of joint venture foreign trade companies by companies, Article 16 The areas of experiment and number of companies for experiment shall be determined by the State Council. For the present, experiment Article 17 These Measures shall enter into force as of the date of promulgation. The department in charge of foreign trade and economic cooperation |
The Ministry of Foreign Trade and Economic Cooperation
1996-09-30