Laws and Regulations
Chinese Law
Source: Ministry of Commerce Website, PRC
MEASURES CONCERNING THE EXAMINATION, APPROVAL AND ADMINISTRATION OF INTERNATIONAL FREIGHT FORWARDING AGENCIES WITH FOREIGN INVESTMENT
Wednesday, February 22, 1995 Posted: 14:39 BJT (0639 GMT)
(Valid From:1995.02.22)
Article 1 These measures have been formulated in accordance with the relevant state laws, rules and regulations concerning the enterprises with foreign investment and the industry administration.
Article 2 All references in these measures to international freight forwarding agencies refer to enterprises with foreign investment which handle international freight forwarding and related business entrusted by consignees and consignors of import and export goods in the client’s name or their own names.
Article 3 The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as MOFTEC) is the organization responsible for the examination, approval and administration of international freight forwarding agencies with foreign investment.
Article 4 The establishment of international freight forwarding agencies with foreign investment shall be beneficial to the development of foreign trade and fair competition.
Article 5 Foreign investors are permitted to participate in the establishment of an international freight forwarding agency enterprise with foreign investment in the form of an equity joint venture or cooperative joint venture.
Article 6 The minimum registered capital requirements for international freight forwarding agencies with foreign investment are as follows:
1. US $ 1,000,000 for ocean freight forwarding;
2. US $ 800,000 for air freight forwarding;
3. US $ 600,000 for land freight forwarding;
4. The registered capital shall be increased according to actual needs provided that the international freight forwarding agencies are engaged in two or more of the above-mentioned business.
Article 7 The term of an operation of international freight forwarding agency shall not exceed 20 years.
Article 8 The international freight forwarding agencies may, upon approval, engage in a part or all or the following businesses:
Trade or non-trade international import/export freight forwarding business by sea, land and/or air, including cargo soliciting, space and vessels booking, vessels or airplanes chartering, international inter-modal transport, warehousing, container consolidation, document preparation, issuing of bills of lading, customs declaration, commodity verification and inspection declaration, insurance, settlement and payment of freight and miscellaneous charges, etc..
Article 9 Apart from meeting the conditions set out in the relevant state laws, rules and regulations concerning the enterprises with foreign investment, the Chinese and foreign investors must also comply with the following requirements:
1. The Chinese and foreign investors of an international freight forwarding agency must be the enterprises engaged in businesses relating to the organization of international cargo transport;
2. The investors must have been engaged in the business for at least 3 years and have administrative and professional staff suitable for the business applied for, a stable source of goods for import and export and a network of agents.
Article 10 The application for establishing international freight forwarding agencies shall, in accordance with the procedures set out in the relevant state laws, rules and regulations pertinent to foreign investment, be submitted to MOFTEC for examination and approval. MOFTEC shall issue Approval Certificate of Enterprise with Foreign Investment and Approval Certificate of International Freight Forwarding Agency to the approved international freight forwarding agencies with foreign investment.
The Chinese investors shall perform the enterprise registration procedures with industrial and commercial administration departments with the approval certificate issued by MOFTEC.
Article 11 The international freight forwarding agencies with foreign investment may, after one year of formal operation and fulfilling the relevant capital requirements, apply to establish branches in other areas in China.
The application for establishing branches of international freight forwarding agencies shall first be submitted to local departments of foreign trade and economic cooperation where the agencies are located for examination, then turned to the departments of foreign trade and economic cooperation where the branches are to be located for suggestions, and, if approved by local foreign trade and economic cooperation departments, submitted to MOFTEC for examination and approval.
To establish branches, the international freight forwarding agencies with foreign investment shall submit the following documents:
1. Reports of foreign trade and economic cooperation departments where the agencies are located and letters of suggestions of foreign trade and economic cooperation departments where the branches are to be located;
2. Resolutions of the board of directors of the agencies on establishing international freight forwarding branches;
3. Business operation reports, reasons for establishing branches and feasibility studies;
4. Credit reports.
The international freight forwarding agencies with foreign investment that plan to establish branches shall increase the registered capital accordingly, and the business scope of the branches shall not exceed that of the international freight forwarding agencies.
Article 12 These measures are applicable to international freight forwarding agencies set up on the mainland of China by companies, enterprises and other economic organizations or individuals from Hong Kong, Macao and Taiwan.
Article 13 These measures shall be implemented from the date of promulgation.