Laws of the People's Republic of China

Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation, State Administration for Industry and Commerce, State Administration of Foreign Exchange

Circular of the MOFCOM, MOF, GAC, SAT, SAIC and SAFE on the Work of Annual Joint Examination of Foreign-funded Enterprises of 2006

Shang Zi Han [2005] No.861

etent departments of commerce, finance departments (bureaus) of the provinces, autonomous regions and municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps, all customs directly under the General Administration of Customs, local taxation bureaus, industry and commerce bureaus, foreign exchange bureaus:

The annual joint examination to foreign-funded enterprises is a significant measure to change the management mode of government and perfect the investment environment of the state. For the purpose of carrying out and implementing earnestly the Implementation Scheme on Annual Joint Examination of Foreign-funded Enterprises (No.938 [1998] Wai-Jin-Mao-Zi-Fa, hereinafter referred to as the Circular), and successful progress of the annual joint examination of foreign-funded enterprises of the whole country in 2006, the relevant issues are hereby notified as follows:

1.

The departments of all localities shall put the work of annual joint examination into the important order of the day, make arrangements thoroughly, organize carefully, and take real effective measures, Intensify the publicity of annual joint examination to foreign-funded enterprises, and strive to have more enterprises participate in the examination. For those failing to declare for annual examination, failing to make faithful reports in the annual examination or committing law-breaking or rule-breaking acts in production or business operations, the departments of annual joint examination shall dealt with the punish the offenders pursuant to the laws and regulations.

2.

The period between March 1 and April 30, 2006 is the work time of the annual joint examination of foreign-funded enterprises. All localities shall organize the annual joint examination of foreign-funded enterprises strictly in accordance with the requirements of the Circular, all departments of annual joint examination shall strengthen the work on coordination and cooperation between themselves, make sure only one identical window to the public, and supply the convenience to the enterprise at the same time when strengthen the management.

3.

The online annual examination shall be pushed forward in an all-round way. All departments of annual joint examination shall reinforce the leadership, create the condition actively, and organize the implementation orderly.

4.

The unified new edition of the annual joint examination of foreign-funded enterprises shall be adopted in 2006 (annexed thereafter). Please the relevant departments guide the enterprises to fill it correctly.

5.

All departments of annual joint examination shall strengthen the direction for basic-level annual joint examination, inspect the progress of the examination work and the implementation of the Circular, get to know and coordinate the settlement of the problems arising in the examination in a timely manner, and guarantee the successful progress of the annual joint examination of their respective localities. The departments shall firmly correct the action of that, in violation of the provisions, increasing the enterprises' burden by taking arbitrary charges or imposing random examinations by the chance of annual joint examination.

6.

All departments of annual joint examination shall strengthen the administration of intermediary agencies of accounting firms and etc. The specific regulations on service items provided by intermediary agencies when required in annual joint examination shall be formulated, impose heavier punishment on those intermediary agencies with rule-breaking operations and other problems, and transmit to the competent departments when necessary, and adopt corresponding management measures of the industry.

7.

All departments of annual joint examination shall cooperate closely between themselves, sort out, nullify and revoke the enterprises that have no capital, site and structure timely.

8.

All departments of annual joint examination shall strengthen the training of the functionaries from government and enterprises on annual joint examination, enhance their level of operation assuredly, and guarantee the work of online annual examination favorably and efficiently.

Annex: The report form of annual joint examination to foreign-funded enterprises (new edition) (omitted)

ommerce

Ministry of Finance

General Administration of Customs

State Administration of Taxation

State Administration for Industry and Commerce

State Administration of Foreign Exchange

February 28, 2006