Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation, the State Administration for Industry and Commerce, the State Administration of Foreign Exchange

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the State Economic and Trade Commission (SETC), the Ministry of Finance (MOF), the General Administration of Customs (GAC), the State Administration of Taxation (SAT), the State Administration for Industry and Commerce (SAIC), and the State Administration of Foreign Exchange (SAFE) on Issues Related to 2002 Annual Joint Inspection over Enterprises with Foreign Investment

WaiJingMaoZiFa [2001] No.700

December 25, 2001

MOFTEC, SETC, MOF, SAT, SAIC, and SAFE branches in all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, branch of GAC in Guangdong province, and all customs directly under GAC:

In order to further improve the annual joint inspection over enterprises with foreign investment, a circular on relevant issues is hereby given as follows:

1.

2002 annual joint inspection shall be made seriously in accordance with Circular on Carrying out Annual Joint Inspection over Enterprises with Foreign Investment (WaiJingMaoZiFa [1998] No.938, hereinafter referred to as Circular) approved by the State Council and under the leadership of local governments. Effective measures shall be taken to enhance the proportion of inspected enterprises with foreign investment.

2.

The joint inspection period is from March 1 through May 31, 2002. Departments in all localities related to the annual joint inspection shall further intensify their efforts in propaganda, mobilization and preparation, strengthen the guidance to and supervision and implementation of the work of annual joint inspection of grass-roots units, keep informed of the rate of advance, coordinate and resolve relevant problems to ensure the smooth progress of the annual joint inspection in their localities.

3.

The MOFTEC will centrally renew the approval certificates of enterprises with foreign investment in 2002. Enterprises with foreign investment are required to present the new certificates when taking the joint inspection.

4.

In accordance with the Circular, only the SAIC and its branches can charge the inspected enterprises with foreign investment at the original rate. Other departments participating in the annual joint inspection shall not charge the inspected enterprises with foreign investment. "Arbitrary charges, arbitrary inspections", including taking the opportunity of joint inspection to charge the inspected brazenly or in disguised form, exercising extra annual inspection over enterprises with foreign investment without the approval of the State Council, shall be resolutely stopped.

5.

Departments in all localities related to the annual joint inspection shall cooperate closely to check up and nullify or revoke "three-no enterprises with foreign investment"(enterprises with no capital, no plant and no administrative structure), punish in accordance with relevant laws and regulations enterprises with foreign investment failing in taking the inspection, while departments participating in the annual joint inspection shall punish in accordance with relevant laws and regulations enterprises with foreign investment reporting false information, or violating laws and regulations in their operation.

6.

Joint work in one office is encouraged if conditions permit. By this way, it will be easier for different departments to exchange views, fulfill obligations stipulated by the Circular, and improve the joint inspection. Meanwhile, impetus shall, in the light of local circumstances, be given to the online reporting of enterprises with foreign investment and network inspection by departments participating in the annual joint inspection at the provincial level. Means of inputting data shall be improved to enhance the effectiveness and accuracy.

7.

Training of concerned staff members shall be strengthened to enhance their awareness of service and professional quality so as to provide more open, transparent, and normalized service to the inspected. Consulting and appealing institutions set up for the annual joint inspection are required to provide convenience to the enterprises with foreign investment and to enhance the effectiveness and normality of the annual joint inspection.

8.

All departments participating in the annual joint inspection shall strengthen the supervision and administration over the intermediary institutions and enterprises with foreign investment to ensure the accuracy of the inspection reports. All localities and departments concerned shall improve their statistics and analysis of the data gathered in the annual inspection, make use of such data and source of information to deepen their analysis of the operation and common problems of the inspected.

This is hereby notified.