Relaxation of Requirements to Engage in Import and Export Activity in China

On June 19, 2004 the Ministry of Commerce (MOC) promulgated the Measures on Record Registration of Foreign Trade Dealers. These Measures significantly relax the requirements for business entities to engage in import and export activities in China. As of July 1, 2004, Chinese individuals and businesses (both domestically-owned and FIE's) are now able to engage in the import and export of "commodities or techniques" through a fairly simple registration procedure. There is no longer a lengthy approval process.

The registration process is relatively simple. An individual or business must complete and file a Record Registration Form with the local Bureau of Commerce. The Form is readily available either at the local Bureau of Commerce or can be downloaded from the MOC website (See below). Some supporting documentation is also required, such as a copy of the entity's business license, organization code certificate and, if you are an FIE, a copy of the FIE approval certificate.

The local Bureau of Commerce is required to register the entity and affix the registration seal within 5 days after the Record Registration Form is filed. Within 30 days from receipt of the registration, the registered entity is required to complete the necessary formalities with the local customs bureau, the administrations of inspection and quarantine and the foreign currency and tax bureaus. If a registered entity that does not complete these formalities within that 30-day period, the registration will be void.

The Measures do substantially relax the procedures necessary to start import or export activities. However, the Measures do leave some questions unanswered. For example, what is the effect of the Measures on FIE's who are already engaging in international trading activities in one of the FTZ's? Other outstanding issues include whether any FIE may acquire foreign trade rights through the registration process and what is the nature of the "other related business" that a registered FIE may engage in. Guidelines on the latter are soon to be clarified by the MOC but, for now, we understand that such "other related business" includes inventory service, commodity inspection, packing and unpacking of goods, transportation and parking service.

For your information, the following is the link to the Official MOC translation of the new Measures:

New Measures (English)

The following is the link to the new Measures and the Record Registration Form as published by the Chinese Ministry of Commerce.

New Measures and Registration Form (Chinese)

For further information on these new Measures and how they might affect your business, please contact any member of the DWT's China Practice Group.

Published by DWT's China Practice Group

This China Practice Alert is a publication of the China Practice/Shanghai Office of Davis Wright Tremaine LLP. Our purpose in publishing this Alert is to inform our clients and friends of recent legal developments in China. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.

Copyright © 2004, Davis Wright Tremaine LLP.

return to Advisory Bulletins main page