Laws of the People's Republic of China

Ministry of Commerce

Order of the Ministry of Commerce of the People's Republic of China

No. 12

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, the Supplementary Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises, which were adopted at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented on January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, encouraging service providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in international freight agency, we have hereby made the following supplementary provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises (Order No. 36 [2002] of the Ministry of Foreign Trade and Economic Cooperation) pursuant to the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State Council:

I.

Since January 1st, 2004, service providers from Hong Kong and Macao are permitted to establish international freight agency enterprises within the Mainland by means of joint venture, cooperation or solely-funded enterprise.

II.

The minimum amount of the registered capital of a qualified service provider from Hong Kong or Macao that invests in the Mainland to establish an international freight agency enterprise shall meet the following requirements:

(1)

Where he/it runs maritime international freight agency, the minimum amount of his/its registered capital shall be 5 million Yuan;

(2)

Where he/it runs aerial international freight agency, the minimum amount of his/its registered capital shall be 3 million Yuan;

(3)

Where he/it runs overland international freight agency or international express delivery, the minimum amount of his/its registered capital shall be 2 million Yuan.

Where he/it runs two or more items of business in the preceding paragraph, the minimum amount of his/its registered capital shall be the minimum amount of the higher/highest one.

An international freight agency enterprise shall, for each branch engaging in international freight agency that it intends to establish, add 500,000 Yuan of registered capital.

III.

As for other matters for service providers from Hong Kong and Macao to apply in the Mainland for establishing international freight agency enterprises, the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises shall still be followed.

IV.

The service providers from Hong Kong and Macao as mentioned in the present Supplementary Provisions shall separately meet the requirements in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement on the definition of service providers, and in other relevant provisions, as well.

V.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VI.

The present Supplementary Provisions shall be implemented on January 1st, 2004.