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FOREIGN-FUNDED CONSTRUCTION ENGINEERING DESIGN ENTERPRISES ADMINISTRATION RULES
 
(Order of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation (No. 114 [2002]), September 27, 2002: adopted at the 63rd executive meeting of the Ministry of Construction on September 9, 2002 and at the 10th ministers' executive meeting of the Ministry of Foreign Trade and Economic Cooperation on September 17, 2002, which shall com into force as of December 1, 2002)
     
     
SUBJECT : FOREIGN-FUNDED; CONSTRUCTION ENGINEERING DESIGN
ISSUING DEPARTMENT : MINISTRY OF CONSTRUCTION (DISSOLVED), MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (DISSOLVED)
ISSUE DATE : 09/27/2002
IMPLEMENT DATE : 12/01/2002
LENGTH : 2,262 words
TEXT :
Article 1. In order to open wider to the outside world and normalize the administration of foreign-funded construction engineering design enterprises, the present Rules have been formulated on the basis of laws and administrative regulations including the Construction Law of the People's Republic of China, the Law of the People's Republic of China on Sino-foreign Equity Joint Ventures, the Law of the People's Republic of China on Sino-foreign Contractual Joint Ventures, the Law of the People's Republic of China on Foreign-funded Enterprises, the Regulation on the Quality Administration of Construction Projects, and the Regulation on the Administration of the Survey and Design of Construction Projects.


Article 2. The present Rules shall be applicable to the foreign-funded construction engineering design enterprises established within the territory of the People's Republic of China in their application for the qualifications of construction engineering design enterprises and to the supervisory administration of foreign-funded construction engineering design enterprises.

The term "foreign-funded construction engineering design enterprise" refers to a solely foreign-funded construction engineering design enterprise or a sino-foreign equity joint construction engineering design enterprise or a sino-foreign contractual joint construction engineering design enterprise established within the territory of the People's Republic of China according to the statutory provisions of China.


Article 3. To establish a foreign-funded construction engineering design enterprise and engage in the construction engineering design activities within the People's Republic of China, a foreign investor shall obtain an approval certificate of foreign-funded enterprises issued by the administrative department of foreign trade and economic cooperation by lawful means, file registration with the State Administration for Industry and Commerce or the competent local administration for industry and commerce authorized thereby, and obtain a qualifications certificate of construction engineering design enterprises issued by the administrative department of construction.


Article 4. A foreign-funded construction engineering design enterprise that engages in the construction engineering design activities within the territory of the People's Republic of China shall abide by the laws, regulations and ministerial rules of China.

The lawful business operations and lawful rights and interests of foreign-funded construction engineering design enterprises shall be protected by the laws, regulations and ministerial rules of China.


Article 5. The administrative department of foreign trade and economic cooperation under the State Council shall be responsible for the administration of the establishment of foreign-funded construction engineering design enterprises. The administrative department of construction under the State Council shall be responsible for the administration of the qualifications of foreign-funded construction engineering design enterprises.

The administrative department of foreign trade and economic cooperation of the people's government of all provinces, autonomous regions shall be responsible for the administration, within the scope of authorization, of the establishment of foreign-funded construction engineering design enterprises. The administrative department in charge of construction of the people's government of all provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the administration of the qualifications of the foreign-funded construction engineering design enterprises within their respective administrative jurisdictions.


Article 6. A graded and classified system of administration shall apply to the establishment of foreign-funded construction engineering design enterprises and the application for as well as the examination and approval of qualifications.

To apply for establishing a foreign-funded construction engineering design enterprise with A-level qualifications construction engineering design or with A-level or B-level qualifications for other construction engineering designs, the application shall be subject to the examination and approval of the administrative department of the State Council in charge of foreign trade and economic cooperation, and the qualifications thereof shall be subject to the examination and approval of the administrative department of the State Council in charge of construction. To apply for establishing a foreign-funded construction engineering design enterprise with B-level qualifications for construction engineering design or with C-level qualifications and below for other construction engineering designs, the application shall be subject to the examination and approval of the administrative department of foreign trade and economic cooperation of the province, autonomous region or municipality directly under the Central Government concerned, and the qualifications thereof shall be subject to the examination and approval of the administrative department of construction of the province, autonomous region or municipality directly under the Central Government concerned.


Article 7. The following procedures shall be followed in the establishment of a foreign-funded construction engineering design enterprise and the application for A-level qualifications for construction engineering design or A- or B-level qualifications for other construction engineering designs.

(1) The applicant shall file an application to the administrative department in charge of foreign trade and economic cooperation of the province, autonomous region or municipality directly under the Central Government where the enterprise is to be established;

(2) The administrative department in charge of foreign trade and economic cooperation of the province, autonomous region or municipality directly under the Central Government shall, within 30 days after accepting the application, accomplish the preliminary examination. If approval is granted after preliminary examinations, it shall report to administrative department of the State Council in charge of foreign trade and economic cooperation;

(3) The administrative department of the State Council in charge of foreign trade and economic cooperation shall, within 10 days after receiving the preliminary examination materials, send the application materials to the administrative department of the State Council in charge of construction to seek opinions. The administrative department of the State Council in charge of construction shall give its opinions within 30 days after receiving the letter of seeking opinions. The administrative department of the State Council in charge of foreign trade and economic cooperation shall, within 30 days after receiving the written opinions given by the administrative department of the State Council in charge of construction, decide in written form whether to approve the application or not. If it decides to grant approval, it shall issue an approval certificate to the foreign-funded enterprise. If it decides not to grant approval, it shall give an explanation in written form;

(4) The foreign-funded enterprise that has obtained an approval certificate shall complete the enterprise registration with the government organ in charge; and

(5) After obtaining a legal person enterprise business license and to apply for the qualifications of a construction engineering design enterprise, the foreign-funded enterprise shall go through the procedures concerning the qualifications administration of construction engineering design enterprises.


Article 8. The procedures for establishing a foreign-funded construction engineering design enterprise and applying for B-level qualifications for construction engineering design and C-level and below for other construction engineering designs shall be executed by the administrative departments of the people's government of the provinces, autonomous regions and municipalities directly in charge of foreign trade and economic cooperation and construction with reference to Article 7 of the present Rules as well as the rules concerning the qualifications of construction engineering design enterprises and by taking the practical situations of the local places into consideration.

The qualifications of the foreign-funded construction engineering design enterprises that have been approved by the administrative department of the people's government of the provinces, autonomous regions and municipalities directly under the Central Government in charge of construction shall be submitted, within 30 days as of the approval, to the administrative department of construction under the State Council for archivist purposes.


Article 9. To apply for promoting the grade of qualifications or for adding the qualifications for other construction engineering designs, a foreign-funded construction engineering design enterprise shall accomplish relevant procedures with the administrative department of construction according to relevant provisions.


Article 10. To apply for establishing a foreign-funded construction engineering design enterprise, the applicant shall submit the following materials to the administrative department of foreign trade and economic cooperation:

(1) An application for establishing a foreign-funded construction engineering design enterprise with the signature of the legal representative of the investors;

(2) A feasibility study report worked out or acknowledged by the investors;

(3) The contracts and articles of association of the foreign-funded construction engineering design enterprise with the signature of the legal representative of the investors (in particular, only the articles of association are need in the establishment of a solely foreign construction engineering design enterprise)

(4) Notice of advance approval of the name of the enterprise;

(5) Certificates of enterprise registration and certificates of bank credit standing of the country or region where the investors are engaged as a construction engineering design enterprise;

(6) Position appointment documents and identification documents of the chairman of the board of directors, members of the board of directors, manager, the person in charge of techniques and engineering, to be appointed by the investors; and

(7) Balance sheets and statements of gains and losses of the investors during the recent three years which have been audited by certified accountants or accounting firms.


Article 11. To apply for the qualifications of a foreign-funded construction engineering design enterprise, the applicant shall submit the following materials to the administrative department of construction:

(1) An application form for the qualifications of a foreign-funded construction engineering design enterprise;

(2) The certificate of approval of foreign-funded enterprise;

(3) The business license of the legal-person enterprise;

(4) The enterprise registration certificate and bank credit standing certificate of the country or region where the investors are engaged as a construction engineering design enterprise;

(5) Certificates of practicing qualifications of the individuals of the country or region where the foreign service provider is located and the certificates of the performances and credit standing of the individuals and enterprises in construction engineering design issued by the administrative department in-charge or local government or guild, association or notary public of the country where they are located; and

(6) Other materials required by the provisions concerning the administration of the qualifications of construction engineering design enterprise.


Article 12. The materials that the applicant is required to submit as provided in the present Rules shall be written in Chinese. If the original of the certification documents is in any foreign language, a Chinese translation shall be provided.


Article 13. The foreign investors and foreign service providers of a foreign-funded construction engineering design enterprise shall be the enterprise or certified architect or engineer that are engaged in the construction engineering design in their respective countries.


Article 14. The total contribution of the Chinese party to a sino-foreign equity joint construction engineering design enterprise or a sino-foreign contractual joint construction engineering design enterprise shall not be any lower than 25% of the registered capital.


Article 15. A foreign-funded construction engineering design enterprise that applies for the qualifications of a construction engineering design enterprise shall meet the conditions required by the standards for the classification of construction engineering design enterprises.

Where a solely foreign-funded construction engineering design enterprise applies for the qualifications of a construction engineering design enterprise, the number of foreign service providers that have obtained the qualifications of Chinese certified architect and certified engineers shall not be less than 1/4 of the total number of certified practitioners provided in the standards for the classification of qualifications. The number of foreign service providers that have relevant professional design experience shall not be less than 1/4 of the total backbone technicians provided in the standards for the classification of qualifications.

Where a sino-foreign equity joint or sino-foreign contractual construction engineering design enterprise applies for the qualifications of a construction engineering design enterprise, the number of foreign service providers that have obtained the qualifications of a Chinese certified architect or certified engineer shall not be less than 1/8 of the total number of certified practitioners provided in the standards for the classification of qualifications, and the number of foreign service providers that have relevant professional design experience shall not be less than 1/8 of the total number of the backbone technicians provided in the standard for the classification of qualifications.


Article 16. In a foreign-funded construction engineering design enterprise, the accumulated time of residence within the territory of Chinas of each foreign service provider that is a certified Chinese architect, engineer or backbone technician shall not be less than 6 month per year.


Article 17. In case any foreign-funded construction engineering design enterprise engages in any of the activities that violate the statutory provisions including the Construction Law of the People's Republic of China, the Regulation on the Quality Administration of Construction Projects, the Regulation on the Administration of the Construction Engineering Survey and Design, and the Rules for the Administration of the Engineering Survey and Design Qualifications of Construction, it shall be punished according to the relevant provisions.


Article 18. Where an investor from the Hong Kong Special Administrative Region, the Macao Administrative Region or Taiwan invests to establish a construction engineering design enterprise in any other province, autonomous region or municipality directly under the Central Government and engages in the construction engineering designs, the present Rules shall be applicable by reference, unless there are otherwise provisions in any law, regulation or the provision of the State Council.


Article 19. The time for accepting the applications for establishing foreign-funded construction engineering design enterprises shall be subject to the decision of the administrative department of the State Council in charge of construction and the administrative department of the State Council in charge of foreign trade and economic cooperation.


Article 20. The power to interpret the present Rules shall remain with the administrative department of the State Council in charge of construction and the administrative department of foreign trade and economic cooperation within their respective functions.


Article 21. The present Rules shall take effect as of December 1, 2002, and the Rules for the Administration of the Examination and Approval of the Establishment of Sino-foreign Equity Joint Construction Engineering Design Institutions (Docket No. 180 [1992] of the Ministry of Construction) shall be concurrently repealed.
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