Laws of the People's Republic of China

Ministry of Commerce

Circular of the Ministry of Commerce on Entrusting the Competent Departments of Commerce at Provincial Level to Examine and Manage Foreign-funded Non-vessel Shipping Enterprises

Shang Zi Han [2005] No. 89

January 22, 2006

The competent departments of commerce at all the provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, as well as that of the Xinjiang Production and Construction Corp.,

According to the request of the State Council for simplifying the system of administrative examination and approval, and for the purpose of simplifying the procedures for the examination of the contracts and articles of association of foreign-funded enterprises, improving efficiency, and speeding up the work for absorbing foreign investment in service trade fields, we hereby make the following notice on relevant issues concerning entrusting the competent departments of commerce at all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, as well as that of the Xinjiang Production and Construction Corp. (hereinafter referred to as the provincial competent departments of commerce) and the state level management commissions of economic and technological development zones to make examination and management on some foreign-funded non-vessel shipping enterprises:

I.

The provincial competent departments of commerce and the state level management commissions of economic and technological development zones shall be entrusted to responsible for the work of examination and management of foreign-funded non-vessel shipping enterprises.

II.

Each entrusted department and institution shall, in accordance with the Provisions on the Administration of Foreign Investment in International Maritime Transportation (No.1 [2004] of the Ministry of Communications and the Ministry of Commerce) and other laws and regulations on foreign investment, strictly control the qualifications of foreign-funded non-vessel shipping enterprises, and make careful examination on the applications of foreign-funded non-vessel shipping enterprises for their establishment and alteration, and handle the applications after requesting the applicants to make report to the competent departments of communications for approval in accordance with the procedures and conditions as prescribed in the aforesaid provisions. The entrusted departments and institutions shall report any problem arising from the examination process to the Ministry of Commerce in a timely manner. If there is any act of examination and approval that is in violation of regulations during the entrustment period, the Ministry of Commerce shall circulate a notice on it in light of the circumstances or even takes back the entrustment.

III.

Each entrusted department and institution shall have the conditions for issuing the documents of approval for foreign-funded enterprises by networking with the Ministry of Commerce and for online joint annual inspection, and do a good job for putting the examination and approval on archives and making statistics by making use of the network license issuing system for foreign-funded enterprises. The relevant statistical data shall comply with the requirements, so that it may be convenient for the Ministry of Commerce to know the information and strengthen supervision. The Ministry of Commerce will carry out training on the local competent departments of commerce and the state level management commissions of economic and technological development zones, so as to clarify the concrete issues in the process of examination.

IV.

The entrusted state level management commissions of economic and technological development zones shall, in accordance with the Notice of the General Office of the State Council on Transferring the Several Opinions of the Ministry of Commerce and Other Departments concerning Promoting the State Level Economic and Technological Development Zones to Improve Development Level (No.15 [2005] of the General Office of the State Council), implement the management system of simplification and high efficiency. After the state level economic and technological development zones have put the management systems on archives, carried out personnel training, and passed checking and acceptance for networking, the Ministry of Commerce shall handle the corresponding entrustment formalities by batch separately.

V.

The present entrustment shall take effect as of March 31, 2006.