|
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
|
