Laws of the People's Republic of China

Ministry of Commerce

Notice of Ministry of Commerce about Further Improving the Work of Attracting Foreign Capital in Logistics Area

Shang Zi Han [2006] No.38

The competent department of commerce of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, and Xinjiang Production and Construction Corps.

Since 2000, according to the spirit of Circular on Relevant Issues concerning the Development of Establishment of Pilot Logistics Foreign-funded Enterprises by the Ministry, a batch of foreign funded logistic enterprises have been established upon the approval in all pilot areas. The expansion of pilot work has played an active action on the health development of international trade of our country and the modern logistics industry. For further development on extending opening up to the outside world in logistic area and promoting foreign investment on logistic enterprises on the basis of pilot, we hereby noticed as follows:

1.

The expression "foreign investment on logistic enterprises" refers to the foreign funded enterprises whose main business activities shall be the logistic and relevant services provided for other enterprises, including foreign funded enterprise on the road transportation, foreign funded enterprise on waterway transportation, foreign funded enterprise on air transportation, foreign funded enterprise on freight agency, foreign funded enterprise on commerce, foreign funded enterprise on logistic of the third party and other foreign funded enterprises engaged in other logistic or relative business of logistics.

2.

The foreign investor may apply to establish the foreign funded logistic enterprise to engage in one or more business of logistics according to the Provisions on the Administration of Foreign Investment in the Road Transport Sector, Provisions on Administration of Foreign Investment in International Maritime Transportation, Provisions on Foreign Investment in Civil Aviation, Interim Measures for Approval and Administration concerning the Foreign Investment on Railway Freight Transportation, Administration Measures on Foreign-funded International Freight Agency Enterprises, Measures for the Administration on Foreign Investment in Commercial Fields and other laws and regulations on foreign investment. Thereinto when applying for more businesses of logistics, the highest condition shall be satisfied among the qualification conditions required by every business of logistics when applied separately.

3.

With regard to the good result on the pilot work of establishing foreign funded logistic enterprises, the foreign investor shall be permitted to establish the foreign funded logistic enterprise with the form of joint venture, cooperative and solely-funded throughout the country. The foreign funded logistic enterprise may be engaged in part of or all businesses prescribed in Article 5 of the Circular upon the approval, and its minimum limitation amount of registered capital shall no longer be limited, but the foreign funded logistic enterprise shall, according to the operation business, accordingly accord with the requirement of minimum limitation of registered capital and other requirements prescribed by the Measures for the Administration on Foreign Investment in Commercial Fields, the Administration Measures on Foreign-funded International Freight Agency Enterprises, the Provisions on the Administration of Foreign Investment in the Road Transport Sector and other relevant laws and regulations on foreign investment. Except the enterprise that shall be approved by Ministry of Commerce prescribed by the above mentioned department rules or other laws and regulations on foreign investment, other foreign funded logistic enterprise shall be approved by the competent department of commerce at provincial level.

4.

The competent department of commerce at all levels shall do good work on attracting foreign investment in logistic areas in accordance with all provisions above mentioned and relevant laws and rules on foreign investment. The application materials shall be reported to the Ministry of Commerce in the prescribed time limit when the limit of authority for approval by locality has been exceeded.

5.

The competent department of commerce of all places that has the limits of authority for approval shall not abuse their administrative power; with regard to the application for establishing the branch at the locality by the logistic enterprises coming from other areas, if it accords with the legal condition, the decision of administrative permission shall be made in time.

6.

In case any relevant provision in the Circular on Relevant Issues concerning the Development of Establishment of Pilot Logistics Foreign-funded Enterprises (NO.615 [2002] of the Letter of the MOFTEC) by Ministry of Foreign Trade and Economic Cooperation is inconsistent with the present Notice, the present Notice shall prevail.

7.

The present Notice shall be implemented as of March 31, 2006.

Ministry of Commerce

April 20, 2006