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Certain Provisions of Jilin Province on Improving the Investment Environment of Foreign Businessmen

(Promulgated by Decree No.95 of Jilin Provincial People' s Government on July 8,1998; revised by Decree No.145 of Jilin Provincial People' s Government on November 20,2002)

Chapter ¢ñGeneral Provisions

Article 1. These provisions are formulated for the purposes of improving the investment environment of foreign businessmen, protecting the legal rights and interests of foreign-invested enterprises, enhancing the scope and level of utilizing foreign capital, promoting the opening to the outside world and economic development, in accordance with the relevant regulations of the state, and in the light of the factual circumstances in this province.

Article 2. The people' s governments at all levels and their departments, and the relevant public-utility organizations must all abide by these Provisions, while they handle the examination and approval of the foreign-invested enterprises, carry out collecting fees, law-enforcement inspect and other activities related the foreign-invested enterprises.

The foreign-invested enterprises referred to in these Provisions shall include Sino-foreign joint ventures, Sino-foreign operative enterprises and exclusively foreign-owned enterprises.

Article 3. The competent departments of foreign economy and trade of the people' s governments at all levels are the comprehensive departments of centralized management by specialized departments of foreign-invested enterprises.

Article 4. The people' s governments at all levels, their branches, and the relevant organizations of public utilities should insist on the principles of convenience, quickness and high efficiency, while they are handling the relevant affairs of foreign-invested enterprises. To implement the systems of government affairs in public and service acceptance, to public the working contents, procedures and the time limit of finishing transaction, and the measures of investigating into the responsibilities to those illegal examination and approval or those failing to fulfil their responsibilities of supervision and management.

As for the approval and registration items of foreign-invested enterprises, they should be given priority to handle, urgent items shall be handle as soon as possible; as for those tallying with the conditions, it shall be forbidden to refuse, put off the service for any reasons.

Article 5. The departments of development and planning, the administrative departments of economy and trade, and the comprehensive departments of centralized management by specialized departments of foreign-invested enterprises should announce periodically the catalog of invested directions, and the Key items of inviting businessmen to open companies of this province, clear and definite those lines and fields which are encouraged, permitted, limited or forbidden to the investment of foreign businessmen, together with the relevant departments, in accordance with national industrial policies and the need of the economic development of this province.

Article 6. All the departments should solicit the opinions of the comprehensive departments of centralized management by specialized departments of foreign-invested enterprises at the same level, while they draw up or revise the policies related to the foreign-invested enterprises.

Article 7. The people' s governments at all levels and enterprises may award a kind of honour or issue an amount of bonus to the foreign and domestic corporations or individuals who have made great contributions on the work of introducing foreign capital.

Chapter ¢ò Examination and Approval of Foreign-Invested Enterprises

Article 8. All the relevant departments should tell the party disposably about the conditions and procedures of the examination and approval, and about the time limit of finishing transaction while they handle the relevant examination-approval items of foreign-invested enterprises, and should explain the relevant documents and materials which need submitting in the examination and approval.

As for those items listed into the advanced planning for major items of this provincial government or and those items of the World 500 Strength, and those items invested by other multinational corporations, the related departments should set up special leading institutions, appoint special personnel, and offer tracing service.

Article 9. When each department examines and approves the items of which the total amount of capital invested above US$1,000,000 or the foreign-investment items invested by any of the World 500 Strength and other multinational corporations, and as for those which tally with the national industrial policies but prepare not to be approved, the department should put forward handling opinions and report to the people' s government at the same level for decision.

Article 10. It is encouraged to set up the intermediary organizations servicing the foreign investment, provide all kinds of services such as the investment environments and market research, offering the legal advice related with investment policies, solving legal controversies for foreign businessmen.

As for the foreign businessmen who want to invest and set up enterprises, they may entrust the intermediary organizations of foreign-investment service, which established according to law, go through the related formalities to all the departments.

Article 11. All the following departments under the people' s governments at all levels should finish handling the items of examination and approval for the foreign-investment enterprises within the time limit stipulated in the following sections of this Article:

(1)As for the written project proposals for the non-productive Sino-foreign investment and for Sino-foreign items of cooperative business operation and as for the reports on foreign-investment items, which belong to capital construction and tertiary industry, and submitted by the applicants who set up foreign-investment enterprises, the departments of planning or the relevant competent departments should complete the examination and approval within working days; as for the research reports on feasibility or the written project proposals examined and approved together with the research reports on feasibility, they should be completed within 3 working days.

(2)As for the written project proposals and the research reports on feasibility of the items of introducing foreign investment utilized by the existing enterprises, which submitted by the applicants who set up foreign-investment enterprises, the management departments of economy and trade or the relevant competent departments should complete the examination and approval within 3 working days.

(3)As for the contracts, rules of Sino-foreign joint venture, and of Sino-foreign cooperative business operation, and as for the rules of exclusively foreign-owned enterprises, which submitted by the applicants who set up foreign-investment enterprises, the competent departments of foreign economy and trade should complete the examination and approval within 3 working days; to put on record and issue the certificate of approval should be completed within 1 working day; as for the items of enterprise contracts, the alteration of rules, the alteration of the board of directors, contracting or management on a commission basis, setting up branches, import-export business, and the dissolution of enterprises in advance, the examination and approval should be completed with 3 working days.

(4)As for the demands upon safety examination submitted by the applicants who set up foreign-investment enterprises, the safety examination department of construction items concerning foreign affairs should complete the examination within 2 working days.

(5)As for the examination to the contribution circumstances of government-owned property drawn up by Chinese side, the departments of finance should complete the it within 2 working days; as for the property assessment items of contribution, it ratification should be completed within 5 working days; as for the management of government-owned stock rights, the written reply should be completed within 3 working days; as for handling the title registration of government-owned property, it should be completed within 1 working day.

(6)As for foreign-investment enterprises applying for land and needing occupying and using the collective-owned land or government-owned farming land which have completed the previous work in accordance with legal procedures, and tally with the conditions of land supply after examination and have paid relevant expenses and of taxes, the competent administrative departments of land and resources should go through the examining-approving formalities within 3 working days; as for those who use the government-owned land for construction, tally with the conditions of land supply and have paid the relevant expenses and taxes, their examining-approving formalities should be gone through within 7 working days; as for those applying for going through land registration formalities, have the rights vested legally, clear boundaries, exact areas after examining and without no dissent after the announcement expired, they should be given registration and issued the certificate within 3 working days; as for those applying for altering the registration reported to the provincial people' s government after the preliminary examination by municipality or county, the provincial administrative competent department of land and resources should give the registration on the book within 7 working days.

(7)As for the written project proposals submitted by the applicants who set up foreign-investment enterprises, the administrative departments of environmental protection should provide the opinions on environmental protection within 2 working days; the official documents about the report form of environmental impact should be completed within 5 working days; to examine the brief of environmental assessment and give an official, written reply should be completed within 10 working days; to examine the report of environmental impact and given an official, written reply documents should be completed within 15 working days.

(8)The administrative departments of industry and commerce should complete the ratification of the names of foreign-investment enterprises within 1 working day; to handle industry-commerce registration on the book and commerce and issue business licenses should be completed within 2 working days.

Article 12. All the following departments under the people' s governments at all levels should also finish handling the following examination- approval items for foreign-investment enterprises within a stipulated time limits:

(1)As for the foreign-investment enterprises declaring for being given a national institution code, the department of technology and supervision should issue the certification of code within 1 working day;

(2)As for the departments of taxation affairs handling the tax registration for foreign-investment enterprises they, should complete the examination and verification and issue the certificates of tax registration within 7 days since the date of receiving the application for handling the tax registration. As for the determination of generic taxpayers about the duty on value added, it should be completed within 5 working days;

(3)Customs should complete handling the customs formalities of entry and registration for foreign-investment enterprises within 1 working day; as for handling the import export application to the customs, it should be completed within 2 working days; as for handling the handbook of processing trade and the formalities of tax on remission, it should be completed within 3 working days;

(4)The inspection and quarantine departments of departing and entry should handle the entry to the registration declared by foreign-investment enterprises immediately; as for the vise of GSP(generalized system of preferences) certificate of original place, it should be completed within 1 working day; as for the inspection and quarantine to the import-export productions of or the inspection and appraisal to the importation of the equipments of foreign-investment enterprises, they must be completed within the stipulated time limits of working procedure; the foreign-investment enterprises shall have priority to be signed and issued the certificate of original place, and supported the long-distance service of applying for inspections (EDI) for the import- export goods;

(5)To cancel gradually the limits of getting accommodation at designated places for the personnel living beyond the mainland; permit them to choose the places of lodging by themselves, and declare timely the registration of accommodation to the hotels they lodge or the local police stations after their arrival in the light of relevant stipulations. Besides the inspections allowed by legal regulations, it shall be forbidden to interpose the foreign-investment enterprises and the dwelling places of foreign businessmen (including dwelling houses, apartments and hotels). Public security departments should conduct the residence certificate for the foreign personnel and their families who tally with the lawful conditions of the foreign-investment enterprises within 3 working days, and should also provide some convenience about their entry and exit;

(6)As for those personnel living beyond the mainland, holding a driving license of a foreign country or of Hong Kong Special Administrative Region, Macao Special Administrative Region and the areas of Taiwan or an international license, after their signing up, they should pass the examinations of traffic regulations, the relevant knowledge, and driving on roads (those have driving experience over 3 years may not take part in the examination of driving on roads), the departments of communications police of public security organs shall issue them driving licenses. If the personnel living beyond the mainland have some difficulties in Chinese examination papers, public security organs should offer English examination papers; if the applicants still have difficulties, they may employ translators by themselves, public security organs should provide convenient conditions;

(7)As for the examination of fire control to foreign-investment enterprises, the departments of fire control should complete it and give an official reply within 5 working days;

(8)As for the examination and verification of foreign-investment enterprises applying for the precautionary health supervision, the health departments should complete it within 5 working days, and issue the related certifications after passing their products the examination; as for the health supervision and monitor to the foreign-investment enterprises, it shall be conducted the inspection in the lowest frequence in accordance with the national relevant regulations; in regard to the inspection for randam-inspection samples, it shall be given an inspection report within 1 working day after the stipulated inspection time; as for the examination and certificate issuing to the enterprises of producting and operating foods, hotels, recreation places, shops and other public places, and internal dining halls of enterprises living water of self supply and the units engaged in radioactivity work, they should be completed within 15 working days.

(9)To open a foreign exchange account for foreign-investment enterprises, the departments of exchange control and the relevant financial institutions should complete it within 1 working day; the abouchement and remit rance of exchange, which tally with the national relevant stipulations, should be handled timely;

(10)As for the electro-application put forward by foreign-investment enterprises, the departments of electric power should reply them timely; as for those applying for using low tension, the departments should inform the applicants whether they agree or not within 3 working days; as for those applying for using high tension, the departments should inform the applicants whether they agree or not within 10 working days; as for those needing devised power cut because of maintaining facilities and etc, they should be noticed or given an announcement 7 days in advance; as for the relevant facilities of electric service breakdown, the maintainers should be on the scene timely, try to rebuild them as soon as possible; and

(11)As for those foreign-invested enterprises applying for water supply, air feed, supply of heat, if they have completed formalities and get the permits of resources supply, the relevant competent departments should complete the examination and verification within 5 days; as for those needing to cut off devisedly the water supply, air supply and supply of heat, the relevant should announce the notice through the instrumentality of news 48 hours in advance; as for those cutting off the water supply, air supply and supply of heat because of accidents, they should be completed the first-aid repair within 36 hours.

Article13. When the relevant departments handle the affairs for foreign-investment enterprises, if they can not complete within the stipulated time limit assuredly because of force majeure, they may put off the time limit by getting the approval of the people' s governments at this level, and should explain to the foreign-investment enterprises in a written form.

Chapter ¢ó Inspection and Charge Upon Foreign-Investment Enterprises

Article14. When the departments of culture, public security, tax affairs, customs, sanitation, environment protection, industry and commerce, fire control, and commodity prices at all levels carry out the inspection to foreign-investment enterprises which are necessary according to law, they should conduct it strictly according to law, and shall not be allowed to disturb the normal producing and operating orders of the enterprises.

All the departments, carrying out the inspection to foreign-investment enterprises, must get the agreement of the people' s governments at the same level in advance, those failing to get the agreement shall not be allowed to carry it out; the multistratum inspection, repeated inspection and cross-inspection should be forbidden.

Article15. The charge upon foreign-investment enterprises must be implemented according to law. As for those being charged necessarily, the collectors should show the Permit for Charging and the Certificate of Charge Collectors issued by the departments of commodity price, fill in the Enterprise Charging Register Card, and use the charging receipt printed unifiedly by financial departments. Otherwise, the foreign-investment enterprises shall have the right of refusal of pay.

The Enterprise Charging Register Card shall be reserved by enterprises. The departments of commodity price at all levels shall check and verify the charging circumstances in accordance with the Enterprise Changing Register Card, where illegal behaviors are found, they shall be investigated into and delt with according to law.

Article16. As for the punishment upon the behaviors of breaking the law and violating the regulations, committed by foreign-investment enterprises, the relevant departments should live up to have conclusive evidences, characterize with accuracy, punish properly and carry it out according to law. Where the foreign-investment enterprises are not satisfied with the punishment, they may apply for an administrative reconsideration or bring an administrative lawsuit according to law.

Article17. It shall be forbidden for any units and individuals to conduct any kinds of apportion toward foreign-investment enterprises in any names and forms; and it shall not be allowed to force or force in disguised form foreign-investment enterprises to provide all kinds of contributions and donations.

Article18. As for those absorbing foreign-investment enterprises or foreign businessmen to join in all kinds of social organizations, they should implement the principle of voluntariness; fees collected from the attendees shall be checked and ratified according to law by the financial departments of this province and other relevant departments.

Article19. As for all the foreign-investment enterprises registered in this province shall enjoy the equal rights like other enterprises in this province, and carry out the unified charging standards, while they use the facilities of water supply, electricity supply, steam supply, heat addition, dewatering, communication, traffic and other basic installations; the charging for finance, insurance, labor used, consultation, product design, advertising propaganda and other social service, and in aspects of charging for passing through bridges, accrossing roads, and city management, they should carry out the same unified charging standards with other enterprises.

Article20. During the period of production and operation, foreign-investment enterprises shall enjoy the equal rights like other provincial enterprises, while they involve in the arrangement of the products which need planned management, raw and processed materials, communications and transportation, loan of fluid working funds, permit for quota.

Article21. As for the foreign businessmen who invested in this province, the relevant departments should carry out the charging standards unified with other residents in this province for their housing, hospitalizing, children' s enrollment, buying real estate, buying train (bus) or boat tickets passenger tickets and the entrance tickets of spots and interests.

Chapter ¢ô Protection on the Legal Rights and Interests of Foreign-Investment Enterprises

Article22. The legal rights and interests of foreign-investment enterprises shall be protected by law, no units and individuals shall be allowed to infringe. Where their legal rights and interests are infringed on, they have the right to report, denounce and complaint to the institutions for accepting and hearing the complaints of the foreign-investment enterprises established by the people' s governments at all levels.

Article 23. The provincial offices for accepting and hearing the complaints of the foreign-investment enterprises established at the foreign economic and trade departments of this province, which are under the leadership of the provincial leading group of the work of utilizing foreign investment, and the institutions for accepting and hearing the complaints of the foreign-investment enterprises established or appointed by the people' s governments of municipalities, prefecture or counties shall be responsible for handling the complaints of foreign-investment enterprises.

After receiving the complaints, the institutions for accepting and hearing the complaints of foreign-investment enterprises should send to the relevant departments to be handled in accordance with the concrete conditions, and also be responsible for supervising them to handle.

The departments of exactly undertaking the complaints and hearing of foreign-investment enterprises should accept, hear and complete the complaints within the legal time limit.

Article 24. Excluding the insured case of social insurance stipulated by the state (including endowment insurance, unemployment insurance, employment injury insurance, birth insurance and medical insurance), any units shall be allowed to increase other insured kinds of social insurance and force foreign-investment enterprises to insure without authorization, and also shall not be allowed to entrust the non-insurance handling institutions to act the relevant insurance for foreign-investment enterprises on their behalf. The insurance handling institutions must strictly carry out the rate of premium stipulated by the state and this province, and they shall be allowed to change the rate of premium optionally.

Article 25. The higher competent department of the side of China in the foreign-invested enterprises, should communicate the opinions, advices for the enterprises through the Chinese directory, and may not illegally interpose the enterprises' nomal activities of producting and operating.

Chapter ¢õ Supervision and Inspection of the Work of the Relevant Departments

Artcile26. The provincial supervision-inspection group for improving the investment environments, which is set up under the leadership of the provincial leading group of the work of utilizing foreign investment, taken the lead by the provincial supervision department and joined by all the relevant departments, shall be responsible for supervising and inspecting the problems about the administrative enforcement of law, the managemental services of the departments of the management of foreign-investment enterprises of the people' s governments at all levels; as for the discovered problems, it should construct to correct within a prescribed time limit. While it is necessary, the group should circulate the inspected situations and the exsiting problems; where the circumstances are abominable, and caused serious aftermath, the persons held directly responsibility and their competent personnel in charge should be investigated into the responsibilities according to law.

Article 27. The working staff of relevant departments having any of the following circumstances shall be transferred from the post concerning foreign affairs, their work units or the higher competent departments shall give them criticism, education or disciplinary sanctions; where the circumstances are serious, and a crime is constituted, the offender shall be investigated into criminal responsibilities by judicial organs; as for the representative cases, the news media should give the exposal:

(1)Those extorting money and goods from foreign-investment enterprises by the convenience of their work;

(2)Those failing to fulfil the noticed obligation according to said Article 8;

(3)Those putting off the time limit of handling the affairs concerning with foreign-investment enterprises without authorization and without the approval;

(4)Those failing to complete the examination, approval registration and other items within the stipulated time limit, and also failing to explain the reasons to foreign-investment enterprises; and

(5)Other behaviors of making things difficult for foreign-investment enterprises.

Chapter ¢ö Supplementary Provisions

Article 28. Those compatriots in Hong Kong, Macao, Taiwan and the overseas Chinese, who invest and open enterprises in this province, shall also apply to these Provisions.

Article 29. These Provisions shall become effective as of the date of December1, 2002.