Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on Cancellation of the Examination and Approval for the Establishment of Branches of International Forwarders in already Approved Operating Areas

WaiJingMaoFaZhanYunHanZi [2000] No.3303

November 21, 2000

Commissions (departments, bureaus) of foreign trade and economic cooperation of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan; Shenzhen Bureau of Transportation:

To simplify the procedures of examination and approval and to accelerate the network building of international forwarders, MOFTEC decides to replace the examination and approval system for the establishment of branches of international forwarders (hereinafter referred to as forwarders) in already approved operating areas with a registration system as of today. It is hereby noticed as follows:

1.

Forwarders should fully comply with the provisions in Article 10 and 18 of the Rules for the Implementation of the People's Republic of China for the Administration of International Forwarders (Interim) when establishing their branches in already approved operating areas.

2.

Enterprises establishing their branches in already approved operating areas without any increase in their registered capital may claim their Approval Certificate of the People's Republic of China for the Establishment of Branches of International Forwarders at MOFTEC against the following documents.

(1)

registration form for the establishment of branches of international forwarders (with official seals of international forwarders) (Attachment I);

(2)

original approval certificate (original and a copy);

(3)

business license (photocopy);

(4)

decision of the board of directors or the shareholders' meeting;

(5)

resumes of the leader and key employees of the branch

(6)

testimonial of fixed place operation

3.

Such additional documents should be provided in case there is an increase in registered capital and all investors increase their capital contribution by the original proportion:

(1)

capital verification report

(2)

agreement on amendments to the corporate statute

The forwarders should also renew their Approval Certificate of the People's Republic of China for the Establishment of International Forwarders.

4.

In case there is an increase in registered capital and the increase is not based on the original investment proportion, the forwarder should first apply for alteration of stock equity.

5.

The forwarder should register with competent local foreign trade and economic authorities with its Approval Certificate of the People's Republic of China for the Establishment of Branches of International Forwarders.

6.

Forwarders establishing branches outside the approved operating areas should still be handled in compliance with related existing provisions.

7.

Forwarders referred to in this circular do not include international forwarders with foreign investment .

Attachment IRelated Articles of the Rules for the Implementation of the People's Republic of China for the Administration of International Forwarders (Interim)

Article 10 : Each international forwarder should increase its registered capital by 500,000 RMB accordingly when applying for the establishment of a branch. If the registered capital already exceeds the minimum requirement in the Regulations (5 million RMB for ocean transportation, 3 million RMB for air transportation and 2 million RMB for land transportation and express delivery), the surplus part may be regarded as an extra capital contributed for the establishment of the branch.

Article 18 : The forwarder may apply for the establishment of a subsidiary or a branch after one year of operation since the establishment of the forwarder. The scope of business of the subsidiary or branch should not go beyond that of its parent company or head company.

Appendix I: Registration Form for the Establishment of Branches of International Forwarders in already Approved Operating Areas (omitted)