Legal and Regulatory

CEPA Rules of Origin for Hong Kong-Mainland Trade in Goods

Apr. 24 – In order to enjoy zero tariffs under the Closer Economic Partnership Agreement (CEPA), goods exported from Hong Kong to Mainland China must fulfill the rules of origin and show evidence of being “made in Hong Kong.”

The execution of the rules of origin is detailed in the “Customs Provisions of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland/Hong Kong Closer Economic Partnership Arrangement (haiguanshuling No.106, hereinafter refers as ‘Provisions’),” which was promulgated in December 2003 and came in effect from January 1, 2004. Continue reading →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Shipping & Logistics | Tagged CEPA, Closer Economic Partnership Agreement, Hong Kong, Made in Hong Kong | Leave a comment

China Customs Revises Hong Kong CEPA Ad Valorem Definition

Apr. 23 – On March 28, China’s General Administration of Customs decided to revise Article 6 of the “Provisions on the Implementation of the Rules of Origin for Trade in Goods under the Closer Economic Partnership Arrangement (CEPA) between Mainland China and Hong Kong (haiguanzongshu No.107, modified under No. 142 and No. 198),” which is effective from April 1, 2012. Continue reading →

Posted in FDI and Foreign Trade, Legal and Regulatory, Regulatory Update, South China | Tagged Ad Valorem, CEPA, Closer Economic Partnership Arrangement, Hong Kong | Leave a comment

China Law Deskbook Legal Update – March/April 2012

Apr. 19 – Jim Zimmerman, the China managing partner of U.S. law firm Sheppard Mullin, is a good friend of China Briefing and is also both the Chairman Emeritus of Amcham China and the author of the China Law Deskbook – considered by many to be the bible of China law. Jim has recently introduced a regular update service to the China Law Deskbook and has kindly given permission for China Briefing to host it here.

Entitled “News and Views from Beijing,” the new March/April issue is available as a complimentary PDF download by clicking here, and contains details of new laws, regulations, and policy trends. Continue reading →

Posted in Legal and Regulatory | Tagged China Law, China Law Deskbook, Jim Zimmerman | Leave a comment

China’s Qualification Requirements for Legal Representatives and other Key Positions

By Eunice Ku

Apr. 18 – Through the Company Law and other related regulations, China maintains various legal mechanisms clarifying the types of individuals that can qualify to hold the most senior positions of a foreign invested enterprise (FIE). Below, we list these qualification requirements for the legal representative as well as those stipulated for the other key positions of an FIE.

Qualification to be a legal representative
Every business established in China, foreign or domestic, is required to designate a legal representative. The legal representative is, by definition of his or her role, one of the most powerful people in a foreign-invested enterprise. Yet this power comes with heavy responsibility and, if a single individual in a foreign-invested enterprise is to be held accountable for company actions, that person is more likely than not the legal representative. Continue reading →

Posted in Business, Legal and Regulatory, Regulatory Update | Tagged China Board of Directors, China Chairman of the Board, China Company Law, China Director, China FIE, China General Manager, China Legal, China Legal Representative, China Regulatory | Leave a comment

2012 Annual Compliance Reports for Shenzhen Representative Offices

Apr. 16 – According to the new “Regulations on the Registration and Administration of Representative Offices of Foreign-Invested Enterprises (guowuyuanling No.584)” (Regulations), representative offices (ROs) of FIEs registered and established before December 31, 2011 are required to submit the annual compliance report to the local registrars before June 30, 2012. Those who failed to file the report will be penalized according to Article 38 of the Regulation. Continue reading →

Posted in Business, Economy and Politics, Legal and Regulatory, South China | Tagged Administration of Industry and Commerce, Annual Compliance, FIEs, Guowuyuanling No.584, Representative Offices, Shenzhen, South China | Leave a comment

Dezan Shira & Associates on the Liabilities of the Legal Representative

Fabian Knopf, business development associate at Dezan Shira & Associates, discusses the liabilities of key FIE personnel during a seminar in Suzhou on Tuesday.

By Eunice Ku and Shane McDonnell

SUZHOU, Apr. 12 – Fabian Knopf, business development associate at Dezan Shira & Associates’ Suzhou branch, headed a seminar at OfficeStar’s Suzhou New District office on Tuesday discussing the duties and liabilities of the legal representative and other key personnel of an FIE. Continue reading →

Posted in Business, FDI and Foreign Trade, Legal and Regulatory | Tagged Administration of Industry and Commerce, AIC Blacklist, China Chief Representative, China Executive Director, China General Managers, China Legal, China Liabilities, China Shareholders | Leave a comment

Guangdong Streamlines the Registration Process for Foreign-Funded Companies

Apr. 11 – According to the Department of Foreign Trade and Economic Cooperation of Guangdong Province and Guangdong Province Administration of Industry and Commerce (Guangdong AIC), a new streamlined registration and approval process for foreign-funded companies will be run across nine cities along the Pearl River Delta. The newly revamped procedures are currently being trialed in Dongguan, Foshan, and Guangzhou.

The discussion of streamlining the approval procedure came out of an article published in the Nan Fang Daily about the lengthy and complicated process a foreign-funded company went through to get registered in Guangdong. From the registration of the company name to the final approval, the company had to get permission from at least 10 different departments. Due to the number of government agencies involved in the process and the disjunction between them, the process could take up to one year or longer. Continue reading →