Laws of the People's Republic of China

   Article 1. To strengthen the administration over the permanent representative offices set up by foreign waterway and highway transport enterprises and other organizations in China, the rules hereof are formulated in accordance with "the Provisional Regulations of the State Council of the People's Republic of China Concerning the Administration over Permanent Representative Offices of Foreign Enterprises" and in the light of the concrete situation in the waterway and highway transport.

   Article 2. When foreign waterway and highway transport enterprises, including those engaged in harbor business, harbor and navigational channel construction, highway construction, transport agencies and other transport-related organizations and enterprises (hereinafter referred to as foreign transport enterprises) need to apply for establishment of permanent offices in China because of business needs, the applications have to be approved by the Chinese Ministry of Communications and Transport (MCT).

   Article 3. When the foreign transport enterprises apply for establishing permanent representative offices in China, they should present the following documents and materials:

a. An application signed by the enterprise's chairman of board of directors or general manager, covering the name of the permanent representative office to be set up, its responsible members, line of business, period for resident operation and location;

b. Legal business license or duplicate copy of business registration issued by the governing authorities of the foreign country or region the enterprise is domiciled;

c. Capital credibility certificate issued by financial organizations that have business relations with the enterprise;

d. Letters from the enterprise appointing the office bearers of the permanent representative office and their resumes and photos (two copies).

   Article 4. When the application is ratified by MCT, "the Document of Ratification for Establishment of Permanent Representative Office of Foreign Transport Enterprises in China" will be issued.

   Article 5. After the foreign transport enterprise's application for establishment of permanent representative office in China is ratified, the enterprise must, within 30 days as of the date of ratification, take the document of ratification to go through the procedures for registration and residence at the provincial, autonomous regional or municipal administration of industry and commerce and local public security organs and obtain the registration certificate for permanent representative offices of foreign enterprises and certificates of residence before they start business. If they fail to go through the necessary procedures within the specified period, the document of ratification is automatically cancelled.

   Article 6. The number of representatives of the permanent representative offices is to be examined and decided by MCT in the light of the need of their business. In each ratification of the establishment of a permanent representative office, the longest resident period given will be three years. If the representative office needs to continue the resident operation after the expiry of the period, it must, within 30 days before the expiry of the period, present to MCT an application signed by the chairman of the board of directors or the general manger of the foreign transport enterprise. When the application is approved by MCT, it will be granted "the Document of Ratification for Prolonging Resident Period of Permanent Representative Offices of Foreign Transport Enterprises." Each prolonging period shall not exceed three years.

   Article 7. If a foreign transport enterprise wants to change the name of its permanent representative office, responsible members or representatives, line of business, resident period and location, it must apply to MCT for such a change. The application for such a change must be signed by the chairman of the board of directors or general manager of the foreign transport enterprise. Upon approval by MCT, it is granted "the Document of Approval for Change". If the application involves the change of responsible members or representatives of the permanent representative office, the letters of appointment, resumes and photos (two copies) of the new persons representing the office must be attached.

   Article 8. When a permanent representative office of a foreign transport enterprise intends to employ a Chinese citizen to work for it, it must entrust the department appointed by the local government to manage the employment and report in time to MCT about such employment and/or change of such employment.

   Article 9. The proper business activities of the permanent representative offices and their representatives of the foreign transport enterprises are protected by the laws of the People's Republic of China. The permanent offices and their staff must abide by Chinese laws and decrees and the rules hereof and carry out proper business activities within their business scope.

   Article 10. The permanent representative offices of foreign transport enterprises can only engage in indirect business activities. Should there be agreements between the Chinese and foreign governments in this regard, things should be done according to governmental agreements.

Without the ratification by MCT, foreign transport enterprises are not allowed to establish permanent representative offices in China, nor use the name of permanent representative offices, their business cards and seals; nor to engage in any of the business activities of a permanent representative office.

   Article 11. MCT has the authority to supervise and control the work of the permanent representative offices of foreign transport enterprises and may ask them to report their annual business activities.

   Article 12. When permanent representative offices of foreign transport enterprises intend to terminate their business upon or before the expiry of their resident period, they should report to MCT in written form within 30 days before such a termination.

   Article 13. When permanent representative offices of foreign transport enterprises violate the rules hereof, MCT may warn, fine or punish them according to the seriousness of the cases and may, if it is of a serious nature, cancel the Document of Ratification for Establishment of Permanent Representative Offices and notify the administration of industry and commerce.

   Article 14. When transport enterprises invested by overseas Chinese, Hong Kong and Macao compatriots or Sino-foreign transport joint ventures set up outside the Chinese boundary apply to establish permanent representative offices in China, the case is handled in the light of the rules hereof.

   Article 15. The right to interpret the rules hereof rests with MCT.

   Article 16. The rules hereof comes into effect as of March 1, 1990.