China s WTO Commitments

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Laura Sullivan
6 years ago
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1 Trading Company Liberalisation under CEPA As from December (1) From 1 January 2004, allow (1) Retail: Measures for Hong Minimum registered Administration of 2004, WFOE can be Kong service suppliers to provide capital: RMB 30,000 a) retail; Foreign Investment established trading service, in the form of whollyb) import of commodities it retails; in Commercial owned operations; c) export of products purchased from the Sector (effective from domestic market; 1 (2) the form of "sole trader" (not limited d) other relevant auxiliary businesses. company) is allowed for Hong Kong Note: minimum registered Guidance for service suppliers to trade in the capital to be confirmed by (2) Wholesale: Foreign Investment Mainland local authority in Commercial e) wholesale; Sector (promulgated f) commission agent (excluding auction); on 1 September 2005) g) import and export of commodities; h) other relevant auxiliary businesses. PRC Corporate Law Note: commodities excluding those traded by the State, such as salt, tobacco etc. January 2006)

2 Logistics Company Liberalisation under CEPA (1) International logistics business: Issues Relevant to ly: only Sino- From 1 January 2004, allow Hong Minimum registered capital: -import and export business and related services, the Launch of Pilot foreign JV is allowed, Kong service suppliers to provide, in US$5 million including import and export of goods for one's own Projects for the foreign shareholding the form of wholly-owned operations, account or as an agent; Establishment of shall not exceed 50% logistics services in the Mainland, -entrustment as an agent of import and export Foreigninvested which include road transport, storage business for export processing enterprises; and Logistics Enterprises No commitment is and warehousing, loading and -provision of international freight forwarding Circular made as to when unloading, value adding processing, services for imported and exported goods by sea, (promulgated on 20 foreign investor can packaging, delivery and related June 2002) air or land. have majority information and consultancy services shareholding for ordinary road freight; freight (2) Third-party logistics business: transport agency services within the -transport, warehousing, loading and unloading, Mainland; and the management and processing, packaging, delivery and relevant operation of logistics services through information processing and consulting services of computing network. ordinary goods by road; -domestic freight forwarding of goods; and -using computer networks for the management and operation of logistics business.

3 Freight Forwarding Company Liberalisation under CEPA (1) booking cargo space (ship chartering, charter Detail Rules for From 1 January 2004, WFOE is Minimum registered capital: flight, cabin chartering), consignment for Implementation permitted to be established by Hong US$1 million shipment, storage, and packing; Of of Kong Service Suppliers under Cepa (2) monitoring loading and unloading of goods, PRC on the Cepa applicants loading and devanning of containers, Administration of Minimum registered capital allotment, transshipment, and relevant short- International From 11 December RMB 2 million for distance transport services; Freight 2005, WFOE has overland International Freight Forwarding (3) carry out as agent customs clearance, Industry been approved to be Forwarding; declaration of inspection, insurance; (4) preparing relevant documents, paying freight, established RMB 3 million for aerial January 2004) settlement, and paying miscellaneous International Freight expenses; Measures of From Jan 2006 Forwarding; (5) international multimodal transport, container Final approval RMB 5 million for maritime transport (including vanning of containers); International (6) international express business mail (excluding Authority (shanghai) International Freight personal correspondence, and official Freight Forwarding Forwarding. documents by the political party, the army and Enterprises the government of the county level and 1 December 2005) above), and (7) consulting and other business of international freight forwarding.

4 Ship Management Company Liberalisation under CEPA Capital Requirement Upon commission by a shipowner, charterer or International Maritime ly: only Sino-foreign JV is From 1 January 2004, WFOE is Minimum ship operator, be engaged in the following Transport allowed, foreign investor may have approved to be established by registered business activities: majority shareholding Hong Kong Service Suppliers capital: January 2002) US$140,000 (1) sale and purchase of vessels, chartering of No commitment is made as to when a vessels and management of other assets relating International Maritime WFOE is approved to be established to vessels; Transport Implementation Rules (2) ship engineering, handling of navigational affairs and arrangement of ship repair and March 2003) maintenance; (3) recruitment, training and manning of seafarers; Provisions on and Administration of Foreign Investment (4) other services to maintain the technical standards of the vessels and ensure their proper In International navigation. Maritime Transportion

5 Ship Agency Company Liberalisation under CEPA Capital Requirement Upon commission by a shipowner, charterer or ship operator, be International Maritime ly: only Sino-foreign Not mentioned Minimum engaged in the following businesses: Transport JV is allowed, foreign registered capital: (1) undergoing formalities for ship s entry into or departure from ports, January 2002) exceed 49% arranging pilotage, berthing and loading and unloading; shareholding shall not US$140,000 International Maritime No commitment is made as (2) signing bills of lading or carriage contracts and accepting freight Transport to when foreign investor can space booking on behalf of the carrier; Implementation Rules have majority shareholding (3) undergoing customs formalities for vessels, containers and goods; 2003) March (4) canvassing cargoes, arranging shipments and attending to procedures for shipments and transshipment of cargoes and containers; Provisions on (5) collecting freight and settling payment on behalf of the principal; Administration of (6) arranging passenger transport and attending to procedures for Foreign Investment transport of passengers by sea; and In International (7) other pertinent businesses. Maritime Transportation

6 Shipping Company Liberalisation under CEPA Capital Requirement engage in all or some of the following business for the vessels owned and operated by its parent company: procurement of cargo, issuance of bills of lading, settlement of shipping fees and the entry into service contracts Administration of the Examination and Approval of Wholly Foreign-owned Shipping Companies Tentative Procedures (effective from 2000) and Provisions on Administration of Foreign Investment In International Maritime Transportation WFOE is allowed, provided the foreign investor: -have at least 15 years experience in shipping; -have maintained a resident representative office approved by the Ministry of Communications in the port city where it proposes to establish its wholly owned shipping company for at least three years; -its scheduled vessels berth in the port city where it proposes to establish its wholly owned shipping company at least once per month (if it operates a shipping route through such cooperative forms as joint dispatch of vessels, mutual exchange of cargo space, joint operation, etc. and, upon approval, has obtained the right to operate a shipping route, it shall be deemed to satisfy this condition); -Foreign Shipping Companies which ship by unscheduled vessels must have a stable cargo source in China; and -it has not violated Chinese laws, administrative regulations or rules during the course of its business activities in China for a consecutive period of two years. From 1 January 2004, WFOE will be approved to be established by Hong Kong Shipping Companies Minimum registered capital: US$1 million

7 Road Transportation Company Liberalisation under CEPA Capital Requirement Road passenger transportation, road Administration of ly: only Sino- By 1 January 2004: Not specified cargo transportation, removals and loading Foreign Investment in foreign JV is allowed, -Allow Hong Kong service suppliers to set up and discharge of road cargo, road cargo the Road Transportation foreign investor can have wholly-owned enterprises in the Mainland to provide storage, other auxiliary services relevant to Sector Provisions majority shareholding road freight transport services -Allow Hong Kong road transportation, and vehicle (promulgated in 2001) service suppliers to provide direct maintenance By 11 December 2004, non-stop road freight transport services between Supplementary WFOE will be approved to Hong Kong and individual provinces, cities and Provisions to be established autonomous regions in the Mainland. Administration of -Allow Hong Kong service suppliers to set up Foreign Investment in wholly-owned enterprises in the Western Region of the Mainland to provide road passenger transport the Road Transportation services Sector Provisions January 2004)

8 International Shipping Company Liberalisation under CEPA By use of vessels or shipping space which the International Maritime ly: only Sino-foreign JV Not mentioned Have vessels suitable for international shipping transport operator owns or Transport is allowed, foreign shareholding international shipping manages, to provide international maritime cargo shall not exceed 49% transport and passenger transport services and January 2002) Minimum registered capital not undertake activities relating to its vessels, No commitment is made as to specified passengers and cargo for the purpose of the International Maritime when foreign investor may have foregoing services, including the conclusion of Transport majority shareholidng relevant agreements, acceptance of space Implementation Rules reservations, negotiation and collection of freight, issue of bills of lading and other relevant March 2003) shipping documents, arrangement of cargo loading and unloading, arrangement of storage Provisions on and safekeeping, cargo delivery, and Administration of arrangement of transhipment and vessels entry Foreign Investment and exit through ports. In International Maritime Transportation

9 Non-Vessel Operating Common Carrier Liberalisation under CEPA The following activities relevant to cargo carriage: International Maritime No restrictions for foreign Not mentioned Security of RMB800,000 is Transport investors required (1) conclusion of an international cargo carriage January contract in the capacity of a carrier with a 2002) Minimum registered capital consignor; not specified (2) receipt and delivery of cargo in the capacity of a International Maritime carrier; Transport (3) issue of bills of lading or other shipping Implementation Rules documents; March (4) collection of freight and other service fees; 2003) (5) space booking of or consignment of cargo to international shipping operators or other transport Provisions on operators; Administration of (6) payment of port-to-port freight or other transport Foreign Investment fees; In International (7) vanning and devanning of containers; and Maritime Transportation (8) other relevant businesses.

Plurilateral Request for Maritime Transport Services. 1. Overall Objectives for the Plurilateral Negotiations

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