Laws of the People's Republic of China

Circular by the State Administration for Industry and Commerce on Further Broadening the Business Scope of Individual Industrial and Commercial Households Established by Hong Kong and Macao Residents in the Mainland

No.189 [2005] of the State Administration for Industry and Commerce

The administrations for industry and commerce of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning and cities at the deputy provincial level,

In order to promote the amalgamation of the economy of the Mainland and Hong Kong and Macao, and support the economic development and social stability of Hong Kong and Macao, on the basic of Mainland/Hong Kong and Macao Closer Economic Partnership Arrangements (hereinafter referred to as the Arrangements) in 2003 and the Mainland/Hong Kong and Macao Supplementary Agreements in 2004 to the Arrangements, and upon the approval of the State Council, the Mainland and the governments of Hong Kong and Macao signed the Supplementary Agreement II to the Mainland/Hong Kong Closer Economic Partnership Arrangement and the Supplementary Agreement II to the Mainland/Macao Closer Economic Partnership Arrangement respectively on October 18 and 21 of 2005, In accordance with the relevant provisions of the Supplementary Agreements II to the Arrangements (For the detail, please see Attachment I), , the business scope of the individual industrial and commercial households, which are established in the Mainland by the Chinese citizens of the permanent residents of Hong Kong and Macao (hereinafter referred to as the Hong Kong and Macao residents) , shall be further broadened on the basis of the original Agreements. In order to ensure the smooth progressing of the work, we hereby give notices on the relevant issues as follows:

I.

Since January 1, 2006, for any Hong Kong or Macao resident who establishes an individual industrial and commercial household in the Mainland, the following industries will be added to the business scope of which he may apply for registration:

1.

the import and export of goods and technology;

2.

service of taking photos and printing enlarged photos;

3.

laundry and dyeing service

4.

repair and maintenance of automobiles and motorcycles.

II.

As for the individual industrial and commercial households established by Hong Kong and Macao residents applying for conducting the business of import and export of goods and technology, the industry and commerce registration organs shall check and ratify the business scope as "import and export of goods and technology" After a Hong Kong or Macao resident applicant has obtained the business license for an individual industrial and commercial household, he shall, according to the provisions of Measures for Archival Filing and Registration of Foreign Trade Operators (No.14 [2004] of the Ministry of Commerce), transact the archival filing and registration at the department in charge of foreign trade, and may conduct the import and export of goods and technology after transacting relevant formalities at the departments of customs, quality inspection, foreign exchange control, taxation, and etc. In case the business of import and export of goods and technology conducted by the applicant falls within the projects restricted by any law or administrative regulation, he may not start the operation until after having obtained the license from the department in charge of foreign trade according to relevant provisions of the Foreign Trade Law.

III.

Any Hong Kong or Macao resident who pursue the business of repair and maintenance of automobiles and motorcycles according to the relevant provisions of the Regulations on Road Transport and the Circular on Relevant Issues concerning Granting Advance Approval to the Individual Industrial and Commercial Households Established by Hong Kong and Macao Residents in the Mainland (No.28 [2005] of the Ministry of Commerce) by the Ministry of Commerce and other seven departments, shall first transact the advance approval formalities for the trade name and the name of the individual industrial and commercial household at the industry and commerce registration organ, and then apply for advance licensing with the administrative organ of road at the level of the county where the business is located , with the hold of identity certificate, identity verification certificate and the Notice on Advance Approval for the Trade Name and the Name of Individual Industrial and Commercial Household of Hong Kong and Macao Residents, submit the photocopies of relevant certificates and documents to transact the advance license formalities. After having obtained the advance license, he may transact the formalities for registration of individual business upon with the hold of the certificate of license at the industry and commerce registration organ according to law.

IV.

After the business scope of individual industrial and commercial households established by Hong Kong and Macao residents in the Mainland is broadened, the other relevant issues should still be execute according to the relevant provisions of the Several Opinions for the Registration Administration on the Application for Establishing Individual Industrial and commercial households in the Mainland by Hong Kong and Macao Residents (No.190 [2004] of the State Administration for Industry and Commerce) of the State Administration for Industry and Commerce.

V.

All the localities shall, pursuant to the prescribed time and requirements, submit semi-annual reports and annual reports on the National Statistical Form for the Registration of Individual Industrial and Commercial Households of Hong Kong and Macao Residents as well as the relevant work situation respectively before June 15 and December 1 of the current year. In the case of any new situation or new problem encountered in the work, please duly report to the department of individual and private economy supervision of the State Administration for Industry and Commerce. The fax telephone is 010-68050283£»and the contact telephone is 010-68028439¡¢68013300 to 5809 or 5811.

Attachment:

I.

Provisions of the Supplementary Agreement II to the Arrangement concerning Establishing Individual Industrial and Commercial Households in the Mainland by Hong Kong and Macao Residents (Omitted)

II.

National Statistical Form for Registration of Individual Industrial and Commercial Households of Hong Kong and Macao Residents (Omitted)

The State Administration for Industry and Commerce

December 8, 2005