Laws of the People's Republic of China

Circular of the General Office of the State Administration for Industry and Commerce on the Work Arrangement of Spot Checks for Acceptance of Special Law Enforcement Inspection of the Registration and Administration of Foreign Investment

Ban Zi [2006] No. 76

The Administrations for Industry and Commerce of all provinces, autonomous regions and municipalities directly under the Central Government:

In accordance with the arrangements of the Circular on Organizing and Carrying out the Inspection of Law Enforcement in Various Parts for the Year 2006(Gong Shang Ming Dian [2006] No. 35), the State Administration for Industry and Commerce decides to carry out spot checks for acceptance on the law enforcement situation in all parts in mid-January, 2007. And related work arrangements are herby notified as follows:

1.

Contents and Appraisal Criteria of Spot Checks for Acceptance

(1)

The registration of authorized bureaus in accordance with the law.

The emphasis shall be placed on the examination and approval of the name, the enforcement of industrial policies (including pre-approval), the examination of registration materials, etc. The above contents shall be examined one by one and be appraised as level A, level B or level C in view of specific circumstances.

(2)

The supervision and administration of authorized bureaus.

The emphasis shall be placed on the case-handling in everyday routine supervision in accordance with relevant provisions, classified supervision and administration of enterprise credit, and the investigation and prosecution of unlawful behaviors in annual inspection. The above contents shall be examined one by one and be appraised as level A, level B or level C in view of specific circumstances.

(3)

The implementation of the Measures for Authorized Registration of Foreign-invested Enterprises by authorized bureaus.

The emphasis shall be placed on whether the authorized bureau is in conformity with authorized registration conditions and whether there is registration in excess of authority. The above contents shall be examined one by one and be appraised as level A, level B or level C in view of specific circumstances.

(4)

The implementation of special law enforcement task, the establishment of foreign investment monitoring system, and the improvement of law enforcement effect in accordance with Document No. 146 by the State Administration on the part of the authorized bureaus.

The emphasis shall be placed on the organization and guidance work by authorized bureaus at the provincial level within the whole province, the revision of the present software, the sorting-out, regulation and supplementation recording of original data, and the collection, transformation and updating of data by authorized bureaus. The above contents shall be examined one by one and be appraised as level A, level B or level C in view of specific circumstances.

See Appendix for the Form of Examination Contents and Appraisal Criteria

2.

Means of Spot Checks for Acceptance

(1)

Hearing the report by administrations for industry and commerce at the provincial level and relevant local administrations for industry and commerce on the law enforcement of foreign investment registration.

(2)

Organizing discussions among foreign investment registration officials on relevant problems in law enforcement.

(3)

Spot-check of archives; and

(4)

Holding conferences by members of inspection teams to appraise and mark the law enforcement activities.

3.

The Scope of Spot Checks for Acceptance

Twelve provinces altogether throughout the country shall be spot checked. Two authorized bureaus in each province shall be chosen, and 20 copies of foreign investment registration archives of each bureau shall be checked at random (including 15 registration archives and 5 case investigation and prosecution archives).

4.

Organization, Implementation and Detailed Arrangements for Spot Checks for Acceptance

Six working groups shall be divided with 6 to 7 persons in each. Each group shall be responsible for the spot check work of 2 provinces, in which, the person in charge of the regulations department or that in charge of the registration bureau for foreign-invested enterprises shall assume the team leader. Members of the team group shall include 1 division chief in charge of the local law department, 3 division chiefs in charge of local foreign investment departments and 1 retinue official from the regulations department or the registration bureau for foreign-invested enterprises.

Provinces and Time for Spot Check:

Group 1: Heilongjinag, Liaoning

Group 2: Shannxi, Gansu

Group 3: Hunan, Hubei

Group 4: Guangdong, Hainan

Group 5: Henan, Jiangxi

Group 6: Yunnan, Sichuan

The spot check for acceptance shall start as of January 18, 2007 and end up on January 28, 2007.

5.

Summarization of the Spot Check for Acceptance

After the completion of the spot check for acceptance, each group shall write out a report. In the end, the Registration Bureau for Foreign-invested Enterprises of the State Administration for Industry and Commerce shall formulate, based on the report of each groups and that of the local authorities, a final report on the law enforcement situation. The local authorities shall also work out relevant work summaries and deliberate on problems discovered during the law enforcement inspection so as to further promote and improve the foreign investment registration work and enhance administration in accordance with the law.

The Administration for Industry and Commerce in such municipalities directly under the Central Government as Beijing, Shanghai, Tianjin and Chongqing, and such provinces as Hebei, Shanxi, Inner Mongolia, Jilin, Shandong, Jiangsu, Anhui, Zhejiang, Fujian, Guangxi, Guizhou, Tibet, Xinjiang, Ningxia and Qinghai, shall be required to submit the name list of the persons in charge of the Foreign Investment Department who shall take part in the spot check for acceptance work to the Instruction Division of the Registration Bureau for Foreign-invested Enterprises of the State Administration for Industry and Commerce.

Tel: 010-68057995

The Administration for Industry and Commerce in Beijing, Chongqing, Hebei, Inner Mongolia, Shandong and Zhejiang are required to submit the name list of the persons in charge of the Law Department who shall take part in the spot check for acceptance work to the Case Approval and Hearing Division of the Regulations Department of the State Administration for Industry and Commerce.

Tel: 010-68028434

Other matters involved shall be otherwise notified.

General Office of the State Administration for Industry and Commerce

December 21, 2006