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	CIRCULAR OF THE MINISTRY OF CONSTRUCTION AND THE MINISTRY OF COMMERCE ON STRENGTHENING THE ADMINISTRATION OF CREDENTIAL EVALUATION FOR CONSTRUCTION ENTERPRISES WITH FOREIGN INVESTMENT

	(Jian Shi No. 159 [2004] September 6, 2004)


SUBJECT : FOREIGN-FUNDED CONSTRUCTION COMPANIES; CREDENTIAL EVALUATION
ISSUING DEPARTMENT : MINISTRY OF COMMERCE, MINISTRY OF CONSTRUCTION OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 09/06/2004
IMPLEMENT DATE : 09/06/2004
LENGTH : 691 words
TEXT :

This Circular is hereby issued as follows for the purpose of further strengthening the administration of credential evaluation of construction enterprises with foreign investment established in China by foreign enterprises:

I. FURTHER STRENGTHENING THE ADMINISTRATION OF THE ESTABLISHMENT OF AND CREDENTIAL EVALUATION FOR CONSTRUCTION ENTERPRISES WITH FOREIGN INVESTMENT

(1) To ensure the smooth transition between the engineering contracting activities already in progress when this Circular is issued and the new provisions, a foreign enterprise having obtained an approval for establishing an enterprise with foreign investment in China but obtained no credential certificate for an construction enterprise may, before July 1, 2005 and with the consent of the administrative department for construction at the provincial level as given after such department has made preliminary examination, obtain from the Ministry of Construction a contracting certificate for a specific project by presenting the contract of engineering contracting to which it is a party and its Foreign Enterprise's Credential Certificate for Engineering Contracting. No foreign enterprise without a credential certificate for a construction enterprise may contract any engineering project after July 1, 2005.

The administrative departments for construction and other relevant departments at various levels shall make best use of their time in conducting the work of examination and approval of the establishment and applications for credentials of construction enterprises with foreign investment.

(2) Any enterprise with foreign investment having obtained the Construction Enterprise's Credential Certificate may, before July 1, 2005, contract engineering projects in China with its Construction Enterprise's Credential Certificate or Foreign Enterprise's Credential Certificate for Engineering Contracting. Such engineering contracting performance may be treated as its performance for the purpose of credential upgrade and annual review.

II. TREATMENT OF SOME ISSUES IN THE EXAMINATION AND APPRAISAL OF CREDENTIALS OF CONSTRUCTION ENTERPRISES WITH FOREIGN INVESTMENT

To encourage international large-scale engineering contracting companies to establish construction enterprises with foreign investment in China, newly established construction enterprises with foreign investment not meeting the required credential standards in terms of performance or personnel shall be treated as follows:

(1) The foreign investor's engineering contracting performance in China may be treated as that of the enterprise newly established by it in china. The foreign investor applying for a credential certificate shall provide materials certifying its corresponding performance, which shall be subject to the examination and confirmation by the credential authority pursuant to the credential standards for construction enterprises.

(2) The construction enterprise with foreign investment may retain overseas service providers as its technical and managerial personnel. Such overseas service providers must meet the requirements equal to those for the technical title required by the credential standard for the construction enterprise.

The qualifications for certain technical titles of the overseas service providers shall be determined by the credential authority based on their educational credentials and work experience when the authority examines the construction enterprise's credentials, in accordance with the Measures for Implementing the Provisions Concerning the Administration of Credential Evaluation in the Provisions Concerning the Administration of Construction Enterprises with Foreign Investment issued by the Ministry of Construction (Jian Shi No. 73 [2003]).

(3) The construction enterprise with foreign investment may retain overseas service providers as its project managers. The qualifications of such overseas service providers shall be examined and verified by the credential authority base on their experience in managing engineering projects, when the authority examines the construction enterprise's credentials, in accordance with the credential standards for construction enterprises and the Measures for Implementing the Provisions Concerning the Administration of Credential Evaluation in Provisions Concerning the Administration of Construction Enterprises with Foreign Investment issued by the Ministry of Construction (Jian Shi No. 73 [2003]).

There is no limit to the number of overseas service providers retained by a construction enterprise with foreign investment as its project managers.

The administrative departments for construction of all provinces, autonomous regions and municipalities directly under the Central Government shall conduct the administration of credential evaluation for construction enterprises with foreign investment according to the spirit of this Circular and promptly report any problem that may arise in the work to the Construction Market Administration Department of the Ministry of Construction and the Foreign Investment Administration Department of the Ministry of Commerce.