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According to the relevant provisions of the Measures for the Administration of Foreign Investment in the Commercial Field(Order No. 8 [2004] of the Ministry of Commerce), we hereby notify the relevant issues expanding the scope of non-commercial business-commodities distribution-by foreign-funded enterprises as follows: To expand the retail business scope of non-commercial foreign-funded enterprise, all investors concerned to the enterprise shall revise the contract and constitution of the enterprise according to law, fill an application form (refer to Attachment 1 & 2), report it according to the relevant statutory procedures for expanding the business scope and change the approval certificate of foreign-funded enterprises. Anon-commercial foreign-funded enterprise, when expanding its business scope to include commodities distribution, shall clarify the specific way of distribution (wholesale, retail or commission-based agency) and report the catalogue of goods in operation when filing an application. Any enterprise that engages in any franchised operation shall be subject to examination according to the Measures for the Administration of Franchised Operation of Commerce. The specific requirements shall be separately notified. The administrative department of commerce at the provincial level shall fill in a Reporting Application Form of Non-commercial Foreign-funded Enterprises/Investment Companies for Expanding the Retail Business Scope (refer to Attachment 3). Where a non-commercial foreign-funded enterprise expands its business scope to include distribution and opens new retail stores or where the business scope of a newly established foreign-funded enterprise includes the distribution of non-self-produced products, it shall be subject to the examination according to the relevant provisions of Order No. 8. The administrative departments of commerce in all regions shall, according to the power limit as prescribed in Order No.8, accept or transfer the application of an enterprise for expanding its business scope to include distribution. Attachments: 1. Application Form Of Foreign-Funded Enterprises For Expanding The Scope Of Non-Commercial Business, Commodities Distribution 2. Application Form of Investment Companies / Regional Headquarters for Expanding the Retail Business Operation 3. Reporting Application Form of Non-commercial Foreign-funded Enterprises/Investment Enterprises for Expanding the Business Scope to Include Distribution ATTACHMENT 1: APPLICATION FORM OF FOREIGN-FUNDED ENTERPRISES FOR EXPANDING THE SCOPE OF NON-COMMERCIAL BUSINESS, COMMODITIES DISTRIBUTION Enterprise Name: Approval Number Of The Approval Certificate: Code Of The Imported or Exported Enterprise: Address Of Incorporation: Total Investment Amount & Registered Capital: Business Income Of The Previous Year: Original Business Scope: Expansion Of Business Scope Applied: Enterprise Type after Alteration of Business Scope: Production Enterprise/Non-production Enterprise Number Of Stores Planned To Be Established In Different Places: Note: Where a production enterprise remains a production enterprise after the alteration of its business scope, the business income arising from distribution shall not be higher than 30% of the total sales income of the enterprise; where it becomes a non-production enterprise, it is not subject to any restriction on the proportion of the business income generated from distribution. Signature of the legal-person representative: Seal of the corporation: This foreign-funded enterprise makes the following commitments: 1. Observing the Law of the People's Republic of China on Foreign Trade and the supporting regulations and rules; 2. Observing the Measures for the Administration of Foreign Investment in the Commercial Field; 3. Observing other laws, regulations and rules of the People's Republic of China on the customs, foreign exchange, taxation, inspection and quarantine, environmental protection and intellectual property concerning export and import as well as distribution. 4. The registered capital of the enterprise being paid in full amount according to the stipulations of the contract or constitution according to the schedule; 5. Having passed the joint annual inspection on foreign-funded enterprises; 6. The information as filled in the present form being complete, accurate and authentic; the materials as submitted being complete, accurate and legal. ATTACHMENT 2: APPLICATION FORM OF INVESTMENT COMPANIES / REGIONAL HEADQUARTERS FOR EXPANDING THE RETAIL BUSINESS OPERATION Enterprise Name: Approval Number Of The Approval Certificate: Code Of The Import & Export Enterprise: Address Of Incorporation: Registered Capital: Paid Registered Capital: At Least Us $30 Million Of The Aforementioned Registered Capital Met The Requirements In Article 8 Of The Provisions On The Establishment Of Investment Enterprise By Foreign Investment: Yes/No Original Business Scope: Expansion Of Business Scope Applied: Number Of Stores Planned To Be Established In Different Places: Signature of the legal-person representative: Seal of the corporation: This foreign-funded enterprise makes the following commitments: 1.Observing the Law of the People's Republic of China on Foreign Trade and the supporting regulations and rules; 2. Observing the Measures for the Administration of Foreign Investment in the Commercial Field; 3.Observing other laws, regulations and rules of the People's Republic of China on the customs, foreign exchange, taxation, inspection and quarantine, environmental protection and intellectual property concerning export and import as well as distribution. 4.The registered capital being paid in full amount according to the stipulations of the contract or constitution according to the schedule; 5.Having passed the joint annual inspection on foreign-funded enterprises; 6.The information as filled in the present form being complete, accurate and authentic; the materials submitted being complete, accurate and legal. ATTACHMENT 3: REPORTING APPLICATION FORM OF NON-COMMERCIAL FOREIGN-FUNDED ENTERPRISES /INVESTMENTENTERPRISES FOR EXPANDING THE BUSINESS SCOPE TO INCLUDE DISTRIBUTION REPORTING NUMBER: Name Of The Applicant Enterprise: Approval Number Of The Approval Certificate: Code of Import & Export Enterprise: Address Of Incorporation: Original Business Scope: Expansion Of Business Scope Applied: At Least US $30 Million Of The Aforementioned Registered Capital Met The Requirements In Article 8 Of The Provision On The Establishment Of Investment Enterprise By Foreign Investment: Yes/No Passing the Joint Annual Inspection Of The Previous Year: Yes/No Paying the Registered Capital according To The Provisions of the Contract/Constitution On The Schedule: Yes/No Number Of Stores Planned To Be Established In Different Places: Preliminary Examination Result Of The Administrative Department Of Commerce At The Provincial Level: Seal of the administrative department of commerce at the provincial level: |
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