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	ADMINISTRATIVE MEASURES OF THE MINISTRY OF COMMERCE, THE GENERAL ADMINISTRATION OF CUSTOMS, THE STATE ADMINISTRATION OF TAXATION, AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE FOR THE ESTABLISHMENT OF FOREIGN FUNDED EXPORT PROCUREMENT CENTERS

	(Order of the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation, and the State Administration of Foreign Exchange (No. 3, 2003), November 17, 2003: The "Administrative Measures for the Establishment of Foreign Funded Export Procurement Centers", which were examined and adopted at the 5th executive meeting of the Ministry of Commerce of the People's Republic of China on September 29, 2003, are hereby promulgated, and shall come into force after 30 days as of the date of promulgation)


SUBJECT : FOREIGN INVESTMENT; FOREIGN FUNDED EXPORT PROCUREMENT CENTERS
ISSUING DEPARTMENT : MINISTRY OF COMMERCE OF THE PEOPLE'S REPUBLIC OF CHINA, THE GENERAL ADMINISTRATION OF CUSTOMS, THE STATE ADMINISTRATION OF TAXATION, THE STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 11/17/2003
IMPLEMENT DATE : 12/17/2003
LENGTH : 945 words
TEXT :

Article 1. The present Measures are formulated in accordance with the laws and regulations of the People's Republic of China on foreign investments and foreign trade administration in order to further promote the development of foreign trade, to enhance the opening to the world and to absorb foreign investments. Foreign investors who invest to establish foreign-funded export procurement centers in China shall comply with the present Measures.

Article 2. A foreign-funded export procurement center mentioned in the present Measures means a foreign-funded enterprise engaging in export procurement, which is established by a foreign investor in China either in the form of a wholly-owned enterprise or a joint venture with a Chinese investor. The export procurement center shall be a limited liability company.

Article 3. A foreign investor that applies for establishing a foreign-funded export procurement center shall have a transnational sales network and the capacity of export procurement.

The Chinese investor in a joint venture foreign-funded export procurement center shall have good credit standing, and necessary economic strength for establishing the procurement center.

Article 4. The registered capital of a foreign-funded export procurement center shall be no less than RMB 30 million Yuan. Chinese and foreign investors shall contribute their investments in accordance with the relevant existing provisions.

Article 5. A foreign investor may invest to establish an export procurement center by the investment company it has established in China.

Article 6. Whoever intends to establish a foreign-funded export procurement center shall submit the following documents to the Ministry of Commerce for approval after they have been consented to upon preliminary examination by the competent authority of commerce of the province, autonomous region, municipality directly under the Central Government, or city directly under state planning where the foreign-funded export procurement center is to be established:

(1) the application;

(2) each investor's registration document (photocopy), proof document of the legal representative (photocopy), and proof document of qualifications;

(3) the feasibility study report, and the articles of association (a joint venture export procurement center shall provide its joint venture contract in addition);

(4) a name list of the board of directors and their resumes; and

(5) a notice on pre-approval of the enterprise's name, which was issued by the administration for industry and commerce.

The Ministry of Commerce shall, within 30 working days after receiving all the application documents, make a written official reply on whether to approve the application.

Article 7. A foreign-funded export procurement center may run the following businesses:

(1) Procuring domestic goods for export, and providing warehousing, information consulting and technical services related to export;

(2) Importing raw and auxiliary materials, and authorizing other enterprises to carry out processing and re-export; and

(3) Importing and procuring samples needed in export, the quantity and value of the imported samples should conform to the relevant provisions of the customs on import of samples.

Article 8. When the commodities for export under the state's quota or permit administration are procured or exported, the quota or permit must be applied for and obtained in accordance with the relevant provisions of the state. The commodities under bid invitation administration of the state upon quota must, prior to the procurement or export, be subject to bid invitation of commodities for export in accordance with the relevant provisions on bid invitation of commodities for export.

Article 9. A foreign-funded export procurement center shall, when opening a foreign exchange account or making collections or payments of foreign exchanges, comply with the existing provisions on administration of foreign exchanges.

Article 10. A foreign-funded export procurement center established out of a bonded zone shall apply for tax refund by referring to the relevant provisions for foreign investment companies to export domestic products. A foreign-funded export procurement center established within a bonded zone shall apply for tax refund in accordance with the relevant existing provisions for intra-bonded zone enterprises to export products.

Article 11. A foreign-funded export procurement center shall operate the business of import, processing and re-export by referring to the relevant provisions concerning the same kind of business operated by joint venture foreign trade companies. In this case, all products must be exported, and shall generally not be sold in domestic market. Where, in the event of any particular circumstance, the goods are unable to be exported and need to be sold in domestic market, the said center shall go through the procedures for transforming export into domestic sale in accordance with the relevant provisions on processing trade, report to the local department of commerce at the provincial level for approval and issuance of approval document for domestic sale; and shall meanwhile, report to the Ministry of Commerce for archival purposes. In case an import permit is involved, the said center shall apply for the import permit in accordance with the provisions, and implement the existing provisions if the import permit needs to be submitted to the Ministry of Commerce for verification and approval.

The customs shall handle the matters of domestic sale with duties duly paid and release upon verification regarding the above mentioned domestically sold products upon strength of the corresponding approval document for domestic sale and the effective import permit.

Article 12. Unless otherwise prescribed, the investors from Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Region may invest to establish export procurement centers in other regions of China by referring to the present Measures.

Article 13. The responsibility to interpret the present Measures shall remain with the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation, and the State Administration of Foreign Exchange.

Article 14. The present Measures shall come into force after 30 days as of the date of promulgation.