Rules and Regulations

4.  Rules and Regulations

(1)   Rules and regulations on industry and commerce administration

 Registration for starting a foreign-invested enterprise

1.    Application for registration to start the foreign-invested enterprise, including the Application Form of Registration for Starting a Foreign-invested Enterprise, Name List of the Chinese Investors, Name List of the Foreign Investors, the Application Form of the Enterprise’s Legal Representative, Certification of the Board Members and Managing Personnel and Documents certifying the foreign-invested enterprise’s right to residence and production site;

2.   The contract and the articles of association, and only the articles of association needed for sole foreign-invested enterprise;

3.   The official written reply by the administration of examination and approval, and the certificate of approval for the newly established foreign-invested enterprise (Copy 1);

4.   Letters certifying the legal qualifications for each investor;

5.  Form of Application for Pre-registration (Alteration) of the Names of Foreign-invested Enterprises, and Notification of Approval for Pre-registration of Foreign-invested Enterprises Names;

6.  Letter of Appointment (Commission);

7.   Application Form for Enterprise’s Contact;

8.    If the business scope covers the examination and approval projects previously mentioned, relevant documents of approval by the respective  administrations shall be submitted, if not, the enterprise shall hand in the letter of commitment.

Besides the above listed documents, applying enterprises ought to offer a printed name list of the shareholders and the name list of board members and managers.

 Alteration of registration

1.    Application for Alteration of Registration;

2.    Letter of appointment (commissioning) for the said alteration;

3.   Decision of the Board of Directors;

4.   Official and duplicate copies of the business license for the corporate entity;

5.   The following documents and certificates shall be supplied when  applying for alteration of the following items:

─         Alteration of the corporate name: (1) application for pre-approval for alteration of the corporate name and notice of approval; (2) comments from the organ of examination and approval and a duplicate copy of the application for pre-approval for alteration of corporate name; (3) the contract and agreement on revision of the articles of association.

─         In case of an increase in capital input and registered capital: (1) agreement on revision of the contract and articles of association; (2) report on assets assessment, comments from the organ of examination and approval; (3) duplicate copy of the certificate of approval for enterprise.

─         In case of a decrease in registered capital: (1) agreement on revision of the contract and articles of association; (2) comments from the organ of examination and approval and duplicate copy of the certificate of approval for enterprise; (3) hard copy of news published by at lowest a provincial press with the content of said decrease in capital; (4) letter of remarks signed by the board chairperson on the said decrease, announcing the reason, debt status, and the commitment of not to insult the creditors’ rights after the decrease; (5) report on account checking issued    by an accountant or auditing agency.

─         Alteration of the type of the enterprise: (1) agreement on revision of the contract and articles of association; (2) comments from the organ of examination and approval and duplicate copy of the certificate of approval for enterprise.

─         Alteration of shareholder(s): (1) agreement on transfer of stock right; (2) documents certifying the legal status and credit of the party to receive the said transfer; (3) agreement on revision of the contract and articles of association; (4) comments from the organ of examination and approval and duplicate copy of the certificate of approval for enterprise; (5) if any transfer concerning the municipal state-owned properties, the Form of Property Rights Transfer provided by Beijing Property Rights Exchange.

─         Alternation of the name(s) of the shareholder(s): (1) comments from the organ of examination and duplicate copy of the certificate of approval for enterprise; (2) agreement on revision of the contract and articles of association; (3) certificate of alternation of the names; (4) certificate of qualified shareholder(s).

─         Alteration of the period of operation: (1) agreement on revision of the contract and articles of association; (2) comments from the organ of examination and approval and duplicate copy of the certificate of approval for enterprise.

─         Alteration of the scope of business: (1) agreement on revision of the contract and articles of association; (2) comments from the organ of examination and approval and duplicate copy of the certificate of approval for enterprise; (3) Documents of approval issued by the proper authorities for new business items for which pre-examination is required, otherwise, the enterprise shall hand in the letter of commitment.

─         Applying for permission to set up a new branch or office outside Beijing: (1) after the registration capital invested on time, the said enterprise shall hand in the original or a duplicate copy of the business license to the administration, for the letter of examination and transition, with verbal application; (2) if the enterprises failed to pay it on time, enterprise to set up a new branch or office outside Beijing needs to submit the hardcopy of its business license with its official seal affixed; (3) no Decision of the Board of Directors needed if the enterprise applies for setting up a new branch or office in Beijing。

─         Cancellation of existing branches or offices, together with the business license, enterprise needs to offer: (1) certificate of the cancellation made by the administration; (2) the original or a duplicate copy of the business license.

 Cancellation of registration

In going through the procedure, the aforesaid enterprise shall submit the following documents:

1.   Application for cancellation of foreign-invested enterprise registration;

2.   The relevant decision of the board of directors;

3.   Report on settlement of the creditor’s rights and debts, or documents  certifying responsibility for settlement of the creditor’s rights and debts;

4.   Letter of approval issued by the authorities of examination and approval;

5.    Documents issued by the taxation authorities and customs certifying    complete payment of taxes and customs duties;

6.    Page proof (90 days after when would the cancellation be handled) for the public notice on the cancellation of registration;

7.   Letter of authority for enterprise registration;

8.    The business license (original and duplicates included) of the enterprise     

9.  Official seal of said enterprise.

 (2) Rules and regulations on foreign exchange control

 

Issuing a foreign exchange certificate for foreign-invested enterprises

 

Within 30 days of the issuance of the business license, a foreign-invested enterprise should apply to the local foreign exchange control administration for going through the procedures of foreign exchange registration. In going through the procedure, the said enterprise shall fill in the application form for foreign exchange registration.

Applying for a foreign exchange account 

After foreign exchange registration, a foreign-invested enterprise shall open a foreign exchange capital fund account and a foreign exchange current account.

The income range for a foreign exchange capital fund account of a foreign-invested enterprise is the capital input of spot exchange by both foreign and Chinese investors, while the outcome range is foreign exchange outcome under the current account and items classified by the local administration for foreign exchange control as under the capital account.

When the report on the verification of capital is ready, the commissioned certified public accountant office shall request confirmation at the local foreign exchange administration and bank of deposit for the enterprises’ capital fund account.

 Registration procedures for import-export

A newly established foreign-invested company authorized to engage in import and export shall apply to the proper authorities of foreign exchange administration for entry into the Directory of Companies Engaging in Import with Payment Made in Foreign Exchange.

After establishment and before delivery of the first shipment for export, the aforesaid enterprise shall undergo the procedure for opening record for export cancel after verification by the proper authorities of foreign exchange administrations. It shall at the same time apply to the Customs Card Center for the China Electronic Port IC Cards for the legal person and company operator.

 Foreign debt registration

With 15 days after a contract on overseas borrowing is signed, the aforesaid foreign-invested enterprise shall, with the contract and other documents, go through the procedures for foreign debt registration with the proper authorities of foreign exchange administration. The special account includes credit sub-account and repayment sub-account. When the borrowing is realized, the borrower shall, with the foreign debt registration certificate, open an account with the appointed bank. The exchange settlement and capital repayment of the foreign debt, capital plus interest, shall be examined and approved by the proper authorities of foreign exchange administration transaction by transaction.

 Declaration of international revenue and payments   

In case of involvement in international revenue and/or payments, foreign-invested companies shall, through the appointed banks, make a declaration to this effect, and submit a statistical report on direct investment to the proper authorities of foreign exchange administration semi-annually. 

Foreign exchange

 Foreign exchange used by foreign-invested trade enterprises or by foreign-invested non-trade enterprises for business operation may be paid through their foreign exchanges accounts or designated banks, for which production of the valid commercial invoices and other documents shall be required.

Remittance out of China of the after-tax profits and dividends by the foreign investor(s) of a foreign-invested enterprise may be honored at the designated banks, for which production of the relevant documents shall be required. Remittance out of China of the after-tax wages in renminbi and/or foreign currencies and other legitimate incomes by overseas Chinese and Hong Kong, Macao and Taiwan compatriots working in foreign-invested enterprises may be honored at the designated banks, for which production of the relevant certification shall be required.

The following items of expenditure in foreign exchange shall be honored through bank accounts of the involved enterprises at designated banks after verification by the proper authorities of foreign exchange administration;

       a. Whereas covert commission exceeds 2 percent of the contractual value or    5 percent in case of overt commission, the real value for both cases being more than US$10,000;

       b. Whereas foreign debts are repaid, capital plus interests;

       c. Whereas an amount of foreign exchange equivalent to US$10,000 in     value is drawn.

With approval from the proper authorities of foreign exchange administration, foreign-invested enterprises may remit their incomes obtained through stock rights transfer or upon business termination provided such incomes are verified by the proper authorities of foreign exchange administration.

Beginning April 2003, foreign investors who have not set up a foreign-invested enterprise in China but intend to do so or engage in direct investment-related activities in China may apply to the proper authorities of foreign exchange administration for opening special accounts for investment, procurement, payment of fees and honest money for deposit of funds related to investment payments. These accounts are meant for entry of spot exchange only. Account settlement and transfer of funds covered by these accounts must go through verification by the proper authorities of foreign exchange administration transaction by transaction. For details, see the Public Notification of the State Administration of Foreign Exchange.

 

Beijing Municipal Administration of Foreign Exchange

Address: F6, 7, Xijin Tower, No. 3, Shifangyuan, Haidian District, Beijing, 100036

Tel: 0086 10 6855 9699

WWW: http//www.safe.gov.cn/110000/110000e0263009.html

E-mail: bjsafesupport@bj.pbc.gov.cn

 (3)    Rules and regulations regarding financial administration

Registration

A foreign-invested enterprise should, within 30 days after receiving the business license, go through the procedures of financial registration at the relevant financial body of the place of its registration (foreign-owned enterprises shall go to Beijing Municipal Finance Bureau). When registering, the enterprise needs to fill in the Financial Registration Card for Foreign-Invested Enterprises, and submit the following documents (copies acceptable):

1.   Certificate of approval;

2.  A duplicated copy of the business license;

3.   The enterprise’ feasibility studies report, contract and articles of association;

4.   Official remarks on the enterprise’s contract and articles of association and the organization of its board of directors.

The financial body responsible should grant the applicant the original and transcript of the financial registration card for the foreign-invested enterprise.

If the enterprise makes changes to the contract or changes the name, address, legal representative, and/or business scope, it should, within 30 days after completing the procedures for registration of alteration, go through the procedure of alteration for financial registration.

 After closure and liquidation and before it applies to cancel registration at the relevant administration for industry and commerce, the enterprise should go through the procedures for cancellation of financial registration.

 Management, inspection and supervision

Foreign-invested enterprises should supply the following documents to the district-county finance bureaus:

1.   The enterprise’s annual balance sheet, along with an explanatory report of its financial status;

2.   Audit report by an accounting firm;

3.   A duplicated copy of the financial registration certificate.

In addition to the annual financial inspection, the financial authorities shall select some enterprises for special or full inspection mid-year, covering such areas as the establishment and implementation of financial and accounting systems, turnover of financial revenue, the submission of accounting report forms and the implementation of the financial legislation.

 

Beijing Municipal Finance Bureau

Address: No.15, Fucheng Road, Haidian District, Beijing  

Tel: +86 10 8854 9114

WWW: http://www.bjcz.gov.cn  

E-mail: bgs@bjcz.gov.cn

 The district-county Finance Bureaus (+86 10):

District/ County	Telephone Number	District/ County	Telephone Number	District/ County	Telephone Number
Dongcheng District	6415 3606	Shijingshan District	6887 6247	Pinggu District	6996 2503
Xicheng District	6621 8029	Mentougou District	6984 4108	Fangshan District	6937 7943
Xuanwu District	8315 4208	Fengtai District	6381 2909	Huairou District	6964 3467
Chongwen District	6715 1041	Tongzhou District	8153 7202	Changping District	6974 5080
Chaoyang District	6509 0346	Daxing District	6923 4980	Miyun County	6902 2909
Haidian District	8848 8447	Shunyi District	6946 8461	Yanqing County	6910 2960
Yizhuang Development Area	6788 0047

 

 (4)     Rules & regulations on labor and social security administration

 

Labor

 

Employment: As recruiting Chinese employees, foreign-invested enterprises (the Employer) shall go through the normal procedures of employment in the job and labor service centers of the districts or counties where they are based.

In employing personnel from Taiwan, Hong Kong and Macao for jobs in Beijing, foreign-invested enterprises shall apply to the Beijing Municipal Bureau of Labor and Social Insurance for work permits on their behalf. For more information, please log on the website of the Bureau and the download section.

 Create a contract: The employer should sign a work contract with the employees. If hiring the workers provided by another entity, the employer should sign contract with the labor provider.

Change a work contract: On the basis of agreement from the employer and the employee, the work contract can be changed.

End a work contract:

In the execution of a work contract, the signers of the contract can end the contract after negotiation.

Under any of the following circumstances, the employing party has the right to terminate the work contract without paying recompense to the employees:

 

1)        During the internship, the hired workers prove not qualifying the employment requirements;

2)        The employers can terminate work contracts with the employees if the latter violate the working disciplines or other regulations. If the employer-set disciplines are in contradiction with China’s laws or regulations, the employer cannot dismiss the workers.

3)        The workers can be dismissed if they commit severe delinquency and malpractice and incur considerable losses to the employer.

4)        The workers can be dismissed if they commit crimes.

 

Under any of the following circumstances, the employer can end the contract with the worker but has to notify the worker in 30 days’ advance.

The workers, who have recovered from diseases or non-job-injury, are not able to continue with the previous job or any other alternative jobs arranged by the employers.

1)              The workers are not capable of the work assigned, even after training or work adjustment.

2)              The conditions that the work contract was based on have changed considerably so that the execution of contract cannot continue and the signers of the contract cannot agree on new ones.

Economic workforce trimming: Under any of the following circumstances, the employing entities can reduce workforce after report to the labor’s union in 30 days’ advance and notify the governmental department on labor and social security.

1)        The enterprise is on verge of bankruptcy and is in the course of government-directed sorting-up;

2)        The enterprise moves to new site to prevent environmental pollution;

3)        The operation of the enterprise is in miserable condition.

If the enterprises plan to hire new workers within six months, they should give priority to the workers previously laid off.

Economic indemnity and compensation

The enterprise shall, in accordance with the relevant state and municipal legislation, pay the employee indemnity for cancellation of the labor contract not due to error on the part of the employee.

In a given enterprise, the party that acts in violation of the PRC Labor Law and thus causes economic losses to the other should compensate the victimized party.

 Work hours and vacation

The system of work hours and vacation

The employee shall, under normal circumstances, work for not longer than eight hours per day, and 40 hours per week.

With approval by the Municipal Labor and Social Security Bureau, enterprises may practice the system of integrated work hours or the system of irregular work hours.

The New Year’s Day, the Spring Festival (the New Year’s Day by China’s lunar calendar), the International Labor Day and the National Day are statutory holidays for the public.

 Protection of females and minors

The employee shall go through the regulations of China and Beijing on the protection of females and minors.

 Wages

Foreign-invested enterprises may independently decide their own ways of distribution and the rates and scales of wages paid to their employees.

Wages paid to the laborers who engage in full-time work must on no account be lower than the lowest rates prescribed by the municipal government, that is, 3.26 yuan per hour and 545 yuan per month.

As regards the laborers who engage in full-time work, the wages paid to them shall not be less than RMB 6.8 per hour. For work during the statutory holidays, the rate of payment shall not be lower than 15.5 yuan per hour.

In 2003, wages and salaries averaged 24,045 yuan per worker in Beijing.

Social Security

Item	Paid by the Enterprises	Paid by the Employees	Base Value of the Charge
Pension Fund	20%	8%	Average wages per month of the insurant last year
Unemployment Insurance Charge	1.5%	0.5%	Average wages per month of the insurant last year
Industrial Injury  Insurance	0.2%-3%	N/A	Average wages per month of the insurant last year
Basic Medical Insurance	9%+1%	2%+RMB 3 yuan	Average wages per month of the insurant last year

 

 Welfare

The enterprises shall pay 10 percent of the housing fund for their employees, and the employees, another 10 percent. In both cases, the monthly average wages for the previous year are taken as the base for calculation.

Beijing Labor and Social Insurance Bureau

Address: No.5, Dongnei Xijie, Xuanwu District, Beijing, 100050

Tel: +86 01 6316 7906

Service Line: +86 10 12333

WWW: http://www.bjld.gov.cn

 (5)    Rules on inspection and quarantine control for import & export goods

Compulsory inspection and quarantine control

Compulsory inspection and quarantine control cover all goods listed in the Catalogue of Import and Export Goods Subject to Inspection and Quarantine Control. These include food, animals and plants and animal and plant products, packaging, cargo holds and containers for dangerous goods, cargo holds and containers for food and frozen and easily perishable goods, as well as goods prescribed in other Chinese laws and international conventions for such procedures.

Details are found in: 

1.    Commodity Inspection Law, Articles 4, 5, 6, 7, 17 and 18;

2.    Implementation Regulations for Animal-plant Quarantine Law, Item 2, Article 5;

3.   Food Hygiene Law, articles 30 and 31;

4.   Implementation Specifications for Border Hygiene Quarantine Law, Article 54.

 Inspection exemption

Goods may be exempted from inspection with approval of the State Commodity Inspection Bureau, provided they meet the bureau’s requirements for exemption of inspection. Inspection exemption can also be granted to samples, presents and gifts, exhibits not for sale, and other goods of a non-trade nature. For details, see Item 2, Article 5 of the Commodity Inspection Law.

Compulsory product certification and quality licensing

For those import and export goods involving safety, sanitation and environmental protection, manufacturers must receive compulsory product certificates (CCC certificate) and licenses for quality. No import or export of such goods is permitted without verification and licensing by the commodity inspection authorities. At present, export licenses for quality are issued for 11 categories of goods, while import licenses for safety are issued for 19 categories and 132 types of goods.

 Hygienic registration

All plants and storehouses that produce, process and store export food in China must pass the verification by commodity inspection authorities and after receiving hygienic registration certificates before they start to produce, process, and store food for export.

Inspection and appraisal for goods imported by foreign-invested enterprises

Goods imported by foreign-funded enterprises, except for imports subject to mandatory inspection and imports involving hygiene, safety and environmental protection issues, shall be subject to inspection by the enterprises themselves. The import of equipment and raw materials paid for by foreign investors (including investors from Hong Kong, Macao and Taiwan) as part of their investment shall be reported and inspected by the commodity inspection or quarantine authorities. (Assessment of the value of these shall not be mandatory for enterprises under sole foreign proprietorship). Equipment and raw materials purchased from overseas through entrustment by overseas partners shall be reported and inspected by the commodity inspection authorities (excluding the compulsory value appraisal for the foreign-owned enterprises). Verification and value appraisal certificates serve as the valid documents in the examination of the capital invested by joint ventures or cooperative enterprises.

Priority policy

Foreign-funded enterprises shall enjoy priority in going through procedures that call for urgent handling.

Beijing Municipal Commodity Inspection and Quarantine Bureau

Address: No. 6, Tianshuiyuan Jie, Chaoyang District, Beijing, 100026

Tel: +86 10 5861 9900

WWW: http://www.bjciq.gov.cn

 (6) Regulations on exit-entry

Policies and regulations on exit-entry

1.    A foreigner should apply for a visa from a Chinese representative office, consulate or any other overseas organ authorized by the Ministry of Diplomacy before entering China.

2.   A foreigner should have his/her passport, visa, Residence Permit and other valid credentials checked when he/she exits the Chinese border.

3.    With the approval of competent governmental departments, a foreigner who needs to stay in China for quite a long period because of investment in China or cooperation with Chinese entities on economic, scientific,      technological and cultural matters can apply for long-term or permanent residence permit.

4.    Favorable terms will be granted to those “returned Chinese” (Chinese having obtained degrees abroad and currently working in China as foreign nationals) who have high-tech or top managerial background. Those among them who need to exit and enter China for temporary purposes can apply for F-type visas which can be repeatedly used and have a general validity term of one year, and five years at the most. Those who need to stay in China for a long time can apply for a Residence Permit effective for 1-5 years and a Z-type visa with a corresponding validity period.

Visa: Z-Type

 1.   Z-type visa is granted to foreigners with permission to work in China and to accompanying members of their families.

2.    The certificate for invitation or employment from a Chinese employer, or the letter or telex of visa notification sent by the authorized unit, is needed when applying for Z-type visa.

3.    Foreigners applying for more-than-one-year residence in China should       submit a health certificate issued by the medical and health department designated by the government of his own country. The health certificate will be valid for six months starting the day of issuance.

4.    Within 30 days of their arrival in China, foreigners with Z-type visa      should apply for a residence permit or temporary residence permit to      local public security offices. The period of validity of the residence permit shall be the period for which the holder is allowed to stay in China.

 Visa at port

 Chinese law stipulates that foreigners can apply for a visa at the authorized port for emergencies listed as below if they are too late to apply for a visa at a Chinese embassy, consulate or other authorized office abroad. When applying, they need to submit the letter or telegraphs of the authorized Chinese units and a passport of a country with diplomatic or official trade relations with China. The validity of this kind of visa is no more than three months.

Matters eligible for application for visa at port:

1.   At the invitation at the last moment by the Chinese side to attend a      trade fair;

2.   At the invitation to take part in bidding or the formal signing of a trade agreement;

3.    To supervise the examination of exports and imports or check the contract by agreement;

4.    At the invitation for the installation of equipment or rush-repair; 

5.   At the demand of the Chinese side to settle claims;

6.   At the invitation of the Chinese side to give scientific and technological advice;

7.   Unexpected change or addition of members of the visitor group agreed      previously by the Chinese side;

8.    To see a seriously ill patient or handle a funeral;

9.    People with transit visas unable to leave the country within 24 hours for certain reasons or needing to change to other means of transportation;

10.  On invitations for other reasons but without enough time to apply for a visa in embassies and with letter of agreement to apply for a visa at ports from designated competent bodies.

The authorized ports with visa-issuing rights are as follows: Beijing, Shanghai (at Pudong Airport and Hongqiao Airport), Tianjin, Dalian, Fuzhou, Xiamen, Xi’an, Guilin, Hangzhou, Kunming, Guangzhou (at Baiyun Airport), Shenzhen (at Luohu and Shekou), Zhuhai (at Gongbei), Haikou, Sanya, Jinan, Qingdao, Weihai, Yantai, Chengdu and Nanjing.

 Re-entry visa

 When a foreigner holding a residence permit or temporary residence permit needs to leave China for short-term matters and re-enter the country within the term of validity of the permit, he/she shall apply to the Division of Aliens and Exit-Entry Administration of Beijing Public Security Bureau for a visa for re-entry before departure. Otherwise, Chinese frontier check authorities will judge that the foreigner concerned will not re-enter China after the departure, and proceed to revoke and recoup the residence permit in accordance with law. Where a residential permit-holding foreigner does not need to re-enter China after departure, he or she may go through the formalities for departure by presenting the passport or other valid certificates instead of an exit visa. Under such a circumstance, the foreigner concerned shall submit the residence permit to Chinese frontier check authorities for its revocation. Where the foreigner concerned fails to present the residence permit, Chinese frontier check authorities shall stop him from leaving China.

In applying for a re-entry visa, a residence permit-holding foreigner shall go through the following formalities:

       a. To submit the valid passport and valid residential documentation for       verification;

       b. To fill in a Visa Application Form for Foreigners, to which shall be   affixed the official seal of the institution for which the foreigner is working.

 1)        Regulations on providing border entry and residential facility to high-grade foreign talent and investors

 Beneficiaries to enjoy border entry and residential facilities include:

(1)   Senior consultants invited by provincial (ministerial) authorities, and high-tech and high-level managers in the task to execute the state/province-class scientific programs, significant project agreements and Sino-foreign talents exchange programs.

(2)   Foreigners who have made renowned achievements or come to execute intergovernmental free aid agreements.

(3)   Foreigners recruited by state/provincial (ministerial) scientific research institutes or key collegiate schools to lead in domestic academic activities; foreign scholars holding the titles above the level of deputy-professor or deputy researcher or enjoying the same treatment.

(4)   Foreigners holding the post above the level of vice general-manager in enterprises or government departments or those high-level managers and technical experts given the same treatment.

(5)   Foreign investors who have invested over 1 million US dollars in the rural counties in western and central China or have invested over 3 million US dollars in other parts of China; the dispatched managers or technical experts from the foreign enterprises meeting the same investing standards. 

(6)   The foreign citizenship Chinese winning important international technological prizes or making outstanding achievements in other fields.

 Spouses of the above-mentioned foreigners or their children below 18 years old are treated with the same facility.

 Concrete facilities regarding border entry and residence

(1)    Foreigners needing frequent and short-stay entry permission can apply for F-visa (visiting visa), which validates frequent entry within two to five years and stay less than one year. This kind of F visa is simplified as long-term frequent F visa as follows.  

(2)   Foreigners needing to work and live in China for a long term can apply for the residence certificate in 2-5 years effect and the corresponding Z visa (working visa) allowing unlimited returns.

(3)   Foreigners holding L visa (travel visa), F visa and X visa (study visa) can apply to change for Z visa and residence certificate in 2-5 years effect. Foreigners holding L visa and X visa can apply to change for long-term frequent F visa.

 Process for applying for border entry and residence

(1) Foreigners qualifying for long-term frequent F visas can apply to China’s embassies in their countries, or they can apply to the local entry and exit administrative departments after entering China. Foreigners can also request China’s domestic authorized departments to apply on their behalf. 

After receiving foreigners’ applications for long-term frequent F visas, China’s embassies and consulates should examine the application at no delay and submit it to domestic departments for approval. These departments, which are classified as Grade 1 authorized approvers, should refer their approval proposals to the Ministry of Foreign Affairs (MFA). The Chinese embassies and consulates receiving the confirmation from the MFA should issue the visas to applicants at shortest notice. Domestic institutions entrusted to apply for the visas should refer the application to the Grade 1 approvers first and the latter will follow up by reporting to MFA to complete the remaining process.   

Foreigners holding L visa or X visa can apply for long-term frequent F visa to local entry and exit administration. They or their Chinese official agents should present certificates issued by Grade 1 approvers or those documents such as foreign-funded enterprise approval application and business license. 

(2) Foreigners qualifying residential certificate in 2-5 years effect and Z visa can apply after entering China or entrust official agents at the entry and exit administration.

Foreigners holding Z visa can apply in person or entrust official agents at local entry and exit administration by presenting official letter from Grade 1 approvers and documents such as Foreign Expert Certificate and Foreigner Employment Permit.

Foreigners holding L visa, F visa and X visa can apply in person or entrust official agents at local entry and exit administration by presenting official letter from Grade 1 approvers, Foreign Expert Certificate, Foreigner Employment Permit, foreign-funded enterprise approval application and business license.

 

Additional notice

(1)    The leaders of Sino-foreign goodwill associates, their spouses and children below 18 years old can enjoy the above-mentioned facilities in border entry and residence. The Chinese embassies and consulates can release the visas directly.

(2)    The long-term frequent visa charges the same rate as one-year frequent visa and exempts from urgency fee.

 

 

2)        Employees in Beijing’s institutions and enterprises applying for business visas to Hong Kong and Macao.

 

Employees of Beijing’s institutions and enterprises, if they meet required standards, can apply for all of the four kinds of visas to Hong Kong and Macao, namely single-trip in 14 days effect, multi-trips in three months, one year and three years effect. Applicants for visas longer than one year (including one year) should have his/her employing unit information recorded at local public security departments. Applicant for multi-trips visa in three years effect should used to apply for one-year multi-trips visa and exercised the visa frequently. 

 

2.    Regulations on applying for business visas to Hong Kong and Macao

 

(1)   Employees of all the Beijing-based enterprises, if qualified, can apply for business visas to Hong Kong and Macao, with the visas varying from the 14-day but single-usage ones to repeated-usage ones with a validity term of three months, one year and three years. The days spent in Hong Kong and Macao are capped at 14 days. In applying for a business visa with a term of one year or longer, the applicant should register in related public security organs; the precondition for applying for a three-year multiple-usage business visa is that the applicant should have applied for and repeatedly used a one-year multiple-usage visa.

 

(2)   Persons qualified to apply for a three-year multi-entry business visa

       1. Senior management personnel (including legal person, president, general manager, accountant-in-charge, economist-in-chief and engineer-in-chief) of State-run enterprises, high-tech enterprises (recognized by competent governmental bodies), tax-free enterprises (recognized by relevant taxation bodies) and enterprises whose tax volume or export-generated foreign exchange volume in the previous year reached RMB 500,000 yuan;

       2. Chief delegate of a foreign company’s Beijing office.

 (3) Persons qualified for one-year multi-entry business visa

       1. Personnel at or above the level of deputy general manager of an enterprise whose tax and export-generated foreign exchange contributions in the previous year ranged between 100,000-500,000 yuan.

       2. Chinese employees of the representative offices of foreign companies;

       3. Chinese employees of international organizations’ Beijing branches, foreign consulates, foreign news organizations’ Beijing offices (admitted by Diplomatic Service Bureau);

       4. Other personnel for whom 1-year multi-entry visa is truly necessary.

 

(4)   Persons qualified to apply for a 14-day single-entry or a three-month multi-entry visa

All the Beijing-based enterprises can apply for a 14-day single-usage or a three-month multiple-usage visa if the documents he/she provides prove the visa is necessary;

(5)   In applying for a multiple-usage visa with a validity term of 1-3 years to Hong Kong and Macao, non-Beijing residents should provide certificates proving that he/she has lived in Beijing for at least one year; such documents are not needed in applying for a visa whose validity term is within three months. Business visa can also be granted if a Beijing ID card or residence permit is shown, without any restriction of the validity term of aforesaid documents.

 

The Exit-Entry Administrative Division of the Beijing Public Security Bureau

Address: No.2, Andingmen Dong Avenue, Chaoyang District, Beijing, 100013

Tel: +86 10 8402 0101

WWW: http://www.bjgaj.gov.cn/index.asp

(7) Policy and regulations on real estate investment

The management of expropriation of collectively-owned land

Overseas investors wishing to develop construction projects on collectively owned land are required to gain prior approval from investment planning authorities, foreign trade and economic cooperation authorities and urban planning management authorities. With the documentation of approval by these authorities, the investors may proceed to contact the Beijing Municipal Land Resources and Housing Property Bureau to go through the formalities of expropriating collectively owned land for construction in line with the law. If the land to be developed was for agricultural use, the investors should also apply for a permit for agricultural land use transfer.

 

Paid use of State-owned land

The country practices a system of allowing paid use of State-owned lands limited in area. Such a system applies to foreigners intending to invest in and use land in Beijing.

Land for business use shall be obtained on the local land trading market through public bidding, auctioning or listed transactions.

Transfer of State-owned land refers to deeds that the State transfers the right to use certain land for a certain period of time to a land user, and in exchange, the land user pays certain amount of money to the State. The State-owned land use right transfer refers to the land-use right transfer should be fixed down in form of contract signed between the land user and the governmental department in charge of land management. The land user is thus entitled to transfer, lease and mortgage the land according to the contract and related laws. The term of the land-use right ranges from 40 to 70 years, depending on what the land is used for.

Transfer of the land-use right through public bidding refers to deeds that municipal or county land administrations invite designated or non-designated citizens and corporate entities and other organizations to participate in public bidding for selection of the land user on the basis of the bidding result.

Land-use right transfer through auction refers to deeds that a land transferor makes an auction announcement and finalizes a land user according to the result of the auction held at the time and the place stipulated in the auction announcement.

Transfer of land-use right through listed transaction entails that the land transferor makes a public notice on the intended transaction, publicizes the trade terms at the designated site, updates the price of the land according to the price offers of the bidders and select a land user according to the price offered when the deadline of the listing arrives.

       a. These who transfer land shall, on the day prescribed in the public notice as the beginning of the listing, publicize at a land trading agency, the location, area, function, timeframe, requirements of planning governmental bodies, benchmark price and the price-hiking scope and so on of the land to be transferred.

       b. Qualified bidders fill in forms and make price offers.

       c. The land transferor verifies the price offers and updates the price of the land according to the result.

       d. The land transferor continues to accept new price offers.

       e. The land transferor pins down a bidding winner upon the expiration of the bidding.

The listing shall continue for no shorter than ten workdays, during which period the prices may be adjusted according to price offers.

 

The following conditions offer indexes on whether a deal can be reached when the listed trade expires:

       a. In the case that there is only one person making a price offer, if the price he/she offers is higher than the benchmark price and he/she acts in accordance with game rules, the person should be finalized as the land user.

       b. In the case there are two or more persons making price offers, the one who offers the highest price will be the land user. If the price offers are the same, the first to have tendered the price offer form first will be the winner (such situation is inapplicable to those price offers lower than the benchmark price).

       c. In the case there are still one or more persons wanting to make price      offers, the land transferor should conduct an on-the-spot bidding, and the one who offers the highest price will be the winner.

Apart from the above-mentioned channels, a foreign investor may obtain land-use right through submitting certain amount of land-use fee on a yearly basis in accordance with related laws. However, the land-use right thus obtained can only be used by the landholder, and its transfer, leasing and mortgaging shall be forbidden. The term of the land-use right usually is the same as for Sino-foreign enterprise. Land-use fee refers to the money a foreign-funded enterprise pays to the local government within the term of its operation, excluding those fees levied for the purpose of expropriation, relocation and infrastructure construction, etc. The land-use fees vary, depending on the location of the land and the purpose of its use, ranging from 1 to 150 yuan/sq.m. per annum. But this situation is only applicable to the land provided by the Chinese party of a Sino-foreign cooperative and productive enterprise, land used for farming and livestock breeding and the land approved by the government.

Pre-sales and sales of housing property

After the application is approved and a “Commercial Housing Pre-Sale License(s)” is issued, the relevant overseas investor may pre-sell, sell or rent its real estate to Chinese and foreign enterprises, economic organizations of other types or individuals. However, if the buyer or renter is an expatriate, the investor should act according to related regulations of the municipality.

Before striking a deal, the seller and the buyer should sign a “Contract for Commercial Housing Deal" printed by the Beijing Real Estate and Land Management Bureau. As regards pre-sales, the seller should register at the Beijing Real Estate and Land Management Bureau for related formalities within 30 days from the day the contract is signed. The buyer is exempted from the registration. But both parties should take related documents to the Beijing Real Estate and Land Management Bureau to transfer the ownership of the property within 30 days from the day the seller transfers the property to the buyer.

For the transfer of commercial housing pre-purchased during the validity term of the relevant “Contract for Pre-Sale of Commercial Housing” the transferor and the transferee should endorse the pre-sale contract. After the endorsement, they should take with them relevant documents to the Beijing Real Estate and Land Management Bureau to go through the formalities of registering the transfer of the pre-sale contract in a timely manner.

In the pre-sale and sale of real estate, the parties concerned are liable to pay the contractual tax, transaction charges, the stamp tax and other relevant charges.

Registration of the ownership of real estate property rights

The state applies a system to register the land-use rights and the ownership of real estate, and to issue relevant certificates to parties concerned. Where an overseas-funded enterprise has acquired the land-use rights through transfer or other legal means, where it has legally built houses on the land it has expropriated in line with the law, and where it has purchased real estate, the party or parties concerned should apply to the Beijing Real Estate and Land Management Bureau or a relevant district- or county-level real estate and land management authority for registering the ownership of the real estate concerned, and contact it to obtain the certificate of the right to use State-owned land and the certificate of ownership of the real estate concerned.

Where the ownership of real estate of an overseas-funded enterprise or an overseas investor has been transferred or has changed, the party or parties concerned should apply to the Beijing Real Estate and Land Management Bureau for registering the transfer or change of ownership in a timely manner. After the transfer or change is affirmed and the application is approved, the original certificate of ownership of the real estate concerned shall be replaced or modified.

Management of real estate mortgages

Overseas investors may use their legal real estate for financing or providing guarantee of creditor’s rights for other parties by mortgaging the real estate.

The mortgage of real estate refers to the act of the mortgagor (the debtor or a third party) to use its legal real estate for providing the mortgagee (the creditor) with the guarantee to pay debts in the form of possession that has not been transferred. When the debtor has failed to pay debts, the creditor has the right to become the first party to be compensated with 50 percent of the price of mortgage or the income from the auction or sale of the object mortgaged in line with the law. However, as the land-use rights, which determine the right to mortgage real estate, are acquired in the form of allocation, after the relevant real estate is auctioned, the mortgagee will become the first party to be compensated only with the balance of income from the auction after it is used to pay the price of the compensation for transferring the land-use rights.

For the mortgage of a building on State-owned land expropriated in line with the law, the right to use the piece of State-owned land which the building occupies will be mortgaged at the same time. For the mortgage of the right to use State-owned land acquired in the form of transfer, the building(s) on the piece of State-owned land should also be mortgaged at the same time. However, buildings newly set up after the mortgage shall be excluded. The right to use land of township or village-run enterprises may not be mortgaged separately. For the mortgage of buildings of township or village-run enterprises including workshops, the right to use the piece of land occupied by the relevant buildings shall be mortgaged at the same time.

In mortgaging real estate, the party concerned should take with it the certificate of the land-use rights and the certificate of ownership of the real estate and go to the competent authorities to go through the formalities required. The mortgagor and the mortgagee should also sign a mortgage contract, and should proceed to contact the Beijing Real Estate and Land Management Bureau to register the object of mortgage.  A mortgage contract shall take effect as of the date of registering the mortgage.

Property leasing

To protect the legitimate rights and interests of both the lesser and the lessee, the Beijing Municipal Real Estate and Land Management Bureau have taken steps to strengthen management of real estate leasing. An overseas investor wishing to operate its real estate in the form of lease should contact the bureau for a license for the purpose. After signing a leasing contract with the lessee, the lesser should contact the bureau to register the lease in a timely manner. An overseas investor wishing to lease real estate is required to gain prior approval from the municipal public security authorities before signing a lease contract. It is also required to contact the Beijing Real Estate and Land Management Bureau to register the lease for the record.

Overseas investors wishing to invest in Beijing may acquire the right to use State-owned land in urban and township areas of Beijing by paying compensation and through the establishment of joint ventures, bidding, tender-offering or signing agreements. The duration of the land-use rights is 40 to 70 years, in accordance with the purposes of the use of land.

Overseas-funded enterprises may sell or lease the real estate they legally own to other enterprises, economic organizations of other types or individuals within and outside China.

Overseas investors may mortgage the buildings under their ownership and the land-use rights to banks or other financial institutions outside China.

 

Beijing Real Estate and Land Management Bureau

Address: No.2, Heping Beijie, Dongcheng District, Beijing

Postcode: 100013  

Tel: +86 10 6440 9669  

WWW: http://www.bjgtfgj.gov.cn

 

(8)   Taxes and fees foreign-invested enterprises are obliged to pay

Value Added tax:

The value-added tax has three different rates:

17 percent for marketing or importing of goods and for processing, repairs, assembling and other services;

13 percent for marketing or importing of grain, cooking oil, coal gas, natural gas, coal products for domestic use, books, newspapers and periodicals; and

Zero percent for export of goods except those otherwise stipulated by the State Council.

The rate shall be 6 percent for companies and individuals verified as petty taxpayers--those producing goods or offering taxable services with annual sales not exceeding 1 million yuan and those engaging in whole--or retail--sales of goods with annual sales not exceeding 1.8 million yuan.

The tax shall be exempted for export of goods by foreign-invested enterprises except export of crude oil, finished oil products and goods otherwise stipulated by the State Council.

Consumption tax

Consumption tax covers 11 taxable items with 25 tax rates, ranging from 3 percent to 45 percent.  It is collected in the course of production by taking the prices as basis with the exception of rice wine, beer, gasoline and diesel on which consumption tax is collected by taking the output as the basis. Exemption of consumption tax shall be allowed to taxable consumer goods for export, except those otherwise stipulated by the State Council.

Business tax

Sales tax is a tariff levied on profit-generating industries and activities. The sales tax payers in China include all the entities, proprietors and individuals that provide labor, transfer intangible assets and merchandise real estate.

The sectors exempt from sales tax include the nursing service provided by baby nursery, kindergarten, aged people home and the charity organizations for disabled people, matchmaking service, funeral service, the service provided by the handicapped, the revenue non-profit medical services earned at the state-set prices, educational activities, part-time work provided by schools, training for mechanical plough, irrigation, prevention against pests, plants protection and insurance for farming and herding, reproduction and pest-prevention for poultry, domestic animals and aquatic animals, ticket sales of memorial, museum, cultural center, artistic gallery, exhibition hall, painting and calligraphy gallery, library, and cultural relic protection unit, ticket sales of religious activities, revenue from technical transfer, development and related consultation, premium from ordinary life insurance, endowment insurance and health care insurance, administrative charge within governmental budget and funds. 

 

Corporate income tax

The rate shall be 24 percent for foreign-invested production enterprises in the Beijing area, provided these have an operation period of ten or more years. Exemption of the tax shall be allowed to such enterprises in the first two profit-making years, and a 50-percent reduction shall be allowed in the following three years.

Foreign-funded enterprises investing in agriculture, forestry and animal husbandry shall, with approval of the State Administration of Taxation, pay corporate income tax at reduced rates of 15 percent-30 percent for ten years after the two-year tax holiday and the three-year 50-percent tax reduction expires, beginning the first profit-making year. 

Foreign-funded production enterprises in Beijing Economic and Technological Development Area shall pay corporate income taxes at the reduced rate of 15 percent and shall, beginning the first profit-making year, enjoy a two-year tax holiday and a three-year 50-percent tax reduction.

Enterprises in Zhongguancun Science and Technology Park that are verified as using high-tech shall pay corporate income tax at the reduced rate of 15 percent, and shall enjoy a three-year tax holiday and a three-year 50-percent tax reduction, beginning the first profit-making year. 

Enterprises verified as technologically advanced shall, after the periods of tax exemption and reduction expire, enjoy a 50-percent tax reduction for three more years. But the tax rate shall be 10 percent in case it is lower than 10 percent even after the tax reduction. Export-oriented enterprises shall, after the State-provided periods of tax exemption and reduction expire, pay corporate income tax at half of the currently applicable rate provided exports account for no less than 70 percent (40 percent for new-tech enterprises) of the output value generated for the year by the said enterprises.

A 15 percent reduction in corporate income tax shall, with approval of the State Administration of Taxation, be allowed to technology- and knowledge-intensive projects undertaken by foreign-invested production enterprises using foreign capital of no less than US$ 30 million. The same policy shall apply to energy, communication and port construction projects.

The foreign investor in a foreign-invested enterprise may have a 40-percent reimbursement of the tax money already paid for reinvestment provided the said investor uses the profits from the said enterprises to directly reinvest in capital projects in China for operation over a period not shorter than five years. The said investor may have all such tax money reimbursed for using the profits to reinvest in technologically advanced or export-oriented enterprises in China for operation over a period not shorter than five years.

Enterprises using new technologies and/or technologically advanced or export-oriented enterprises, and setting regional headquarters, shall be exempted from local income tax. Foreign-invested production enterprises with operation period not shorter than ten years shall be entitled to exemption of local income tax, beginning the first profit-making year, followed by a five-year 50-percent exemption of the tax.

Individual income tax

In case an individual does not have a permanent residence in China and has resided in China in a tax year for less than 90 days continuously or in total or for less than 183 days during the period effective for a tax agreement signed between China and the individual’s home country, the individual shall pay the tax only on the income paid or expensed by his or her enterprise or individual employer. The individual shall be exempted from the tax for any income other than this.

In case an individual does not have a permanent residence in China and has resided in China in a tax year for more than 90 days continuously or in total or longer than 183 days but shorter than one year during the period effective for a tax agreement between China and the individual’s home country, the individual share declare his or her incomes paid or expensed by his or her enterprises or individual employers both in and outside China. The individual income tax shall not be collected on incomes in salaries or wages obtained from outside China with the exception of those who work as board members or hold other senior managerial posts in enterprises operating from China.

In case an individual does not have a permanent residence in China and has resided in China for a period longer than one year but shorter than five years, the individual share declare his or her incomes paid or expensed by his or her enterprises or individual employers both in and outside China. As regards incomes obtained from outside China, the individual income tax shall be collected only on the portion paid or expensed by the relevant enterprises, companies, economic organizations or individuals based in China. An individual who has resided in China for longer than five years shall, beginning the sixth year, pay the tax on his or her incomes obtained from outside China.

Items eligible for payment of individual income tax

Incomes from wages and salaries; incomes from labor services; incomes from payment for use of franchised rights; incomes in interests, dividends and bonuses; incomes from property leasing; incomes from property transfer; incomes obtained accidentally; other incomes verified as taxable by the Ministry of Finance.

In case a foreign national engages in labor service and has resided in China for less than 90 days in a calendar year or for less than 183 days if the person is a citizen of a country that has signed a tax agreement with China, the person shall be exempted from the tax on the income in wage or salary from outside China.

Rates of individual income tax for foreign nationals

Nine-grade progressive rates are applied to collection of the individual income tax. A taxpayer shall have 4,000 yuan deducted from his or her monthly income, and the remaining portion shall be taxable.

The individual income tax shall be collected on a monthly basis, at rates ranging from 5 percent to 45 percent. Incomes from payment for labor services, fees for franchised rights, incomes from interests, dividends and bonuses, incomes from property leasing and incomes from property transfer shall be eligible for the rate of 20 percent.

Land added-value tax

Four-grade progressive rates shall apply to collection of land added-value tax.

A 30 percent land added-value tax shall be collected on the portion of the added value that does not exceed 50 percent of the total deduction. The rate shall be 40 percent for the portion of the added value that exceeds 50 percent of the total deduction but does not exceed 100 percent of the total deduction.

The rate shall be 50 percent for the portion of the added value that exceeds the total deduction by 100 percent but does not exceed the total deduction by 200 percent.

The rate shall be 60 percent for the portion of the added value that exceeds the total deduction by 200 percent.

The sum of added value refers to the surplus resulting from deductions made in accordance with the prescribed rules in income obtained by the taxpayer through transfer of real estate property.

Items subject to deduction: fee for the land use right; cost of land development; cost of constructions for new buildings and support facilities or assessed prices for old buildings; taxes paid for transfer of property; and items prescribed by the Ministry of Finance as eligible for deduction.

Urban real-estate tax

Payers of the urban real-estate tax shall be foreign-invested enterprises, foreign-owned enterprises, individual foreign nationals, overseas Chinese and compatriots from Hong Kong, Macao and Taiwan who own property rights in China. In case the proprietor is not in the place of registration for the rights, the tax shall be paid by the person designated by the proprietor to manage the property or its user (including the tenant).  

The annual urban real-estate tax shall account for 1.2 percent of the original value of property owned by a foreign-invested enterprise, a foreign-owned enterprise, an overseas Chinese, or a compatriot from Hong Kong, Macao or Taiwan. It shall be collected in two installments, in April and October, with a 30 percent deduction made in the actual payment of the tax.

Stamp duty

Stamp duty is a tariff imposed on documents created or received in economic activities. The stamp duty payers in China include all the entities, proprietors and individuals that create or receive the business documents.

Stamp duty breaks down to 14 items ranging from the lowest 0.00003 yuan for purchase/sale contract to the highest 0.002 yuan for stock trading. Account books and credentials are levied five-yuan apiece.

The sectors exempt from stamp duty include the copies of credentials attesting to the payment of stamp duty, evidence papers of property contributed to government, charity organizations and schools, contract of interest-free loan and discount-interest loan, contract to provide favorable loans by foreign governments and international financial organizations to the Chinese Government and State finance departments, insurance contract covering the products of farming and forestry, herding and raising of domestic animals, and the credentials set forth between press publishers, publishers and subscribers and between individuals. 

 

Tax on licenses for use of vehicles and vessels

Users of vehicles and vessels shall be payers of the tax.

Rates of the tax: The tax shall be collected according to the load capacity in case of cargo-carrying automobiles and vessels, and according to the type of passenger vehicles and the number of seats they have.

Cargo-carrying automobiles: 48 yuan per year per ton of carrying capacity

Passenger automobiles: 120-160 yuan per year, according to the varying numbers of seats

Motorcycles: 20-48 yuan per year

Non-motorized vehicles: 4-30 yuan per year

Deed tax

Deed tax is a tariff levied on the recipient of transferred land and house. The deed taxpayers in China include all the entities, proprietors and individuals that receive the transferred land and houses.

Deed tax is counted according to the following three standards: the transaction prices of state land usage right and state-owned house, the donation price of land usage right and house ownership set by the tariff administration according to the transfer of state land and house, and the price difference in the transfer of land usage right and house ownership. The deed tax rate in Beijing is 3 percent.

The sectors exempt from deed tax include the land and house received by governmental organizations, government-sponsored institutions, social associates and military organizations to be reused in office work, education, medical care, scientific research and military settings, urban workers’ first house bought according to the government regulations, the barren hills, trenches, hummocks and shoals transferred to be reused in farming, forestry, herding and fishery, and the privileged diplomatic officials. The persons who lost houses due to force majeure can be relieved of part of the deed tax or excused from deed tax on the purchase of the second house.

 Resources tax

Resources tax is a tariff imposed on certain natural resources in order to protect resources, promote the rational development and adjust the uneven income from different resources. The resources taxpayers in China include all the entities, proprietors and individuals that explore minerals and produce salt.

The produced crude used for heating and well repairing can be excused from resources tax. Taxpayers that incur grave damages caused by accidents or natural disasters can be relieved with part of tax or exempted. The iron ore produced by metallurgical independent mines and allied enterprises mines, and the non-ferrous metal ore can be reduced with resources tax rate.  

Customs duties

Import: Customs duties and import added value tax shall be exempted for equipment imported by a foreign-invested project for its own use provided the project falls in line with the Guidance Catalogue of Industries for Foreign Investment and the equipment is a par of the capital investment for the project. Items in the List of Goods Imported by Foreign-Invested Projects Not Eligible for Exemption from Customs Duties shall be exceptions.  

Provisions cited above shall apply to equipment imported for their own use by projects using foreign government loans or loans extended by international financial organizations and, in case of processing trade, to equipment provided by foreign investors and not to be sold in China. 

Customs duties and import added value tax shall be exempted for technologies, accessories and spare parts imported along with the kind of equipment that conforms to the provisions cited above.

Export: Foreign-invested enterprises shall be exempted from export duties for products produced by themselves except those whose export is restricted or otherwise stipulated by the state.

Bonding: The customs shall supervise over and administer raw and processed materials, fuel, parts, accessories, devices and subsidiary and packaging materials imported for implementing export contracts the same way as bonded goods.

Fees charged on foreign-invested enterprises

Fees for construction of urban infrastructure facilities

These refer to fees charged for construction of waterworks and coal gas, heat supply and sewage treatment plants. No more charges shall be collected in case these fees are already included in the price of land acquired through paid transfer. The fee for construction of waterworks shall be calculated according to the daily consumption of water by an enterprise that are not waterworks or coal gas, thermal or sewage treatment plants, charged at 830 yuan per ton. A fee of 600 yuan per cubic meter shall be charged for construction of coal gas plants, which is also based on the daily consumption of the enterprise. The fee for construction of heat supply plants shall be 350,000 yuan for supply of one million kilocalories per hour. The fee for construction of sewage treatment plants shall be calculated according to the daily amount of sewage discharged by the enterprise, at 800 yuan per ton. Enterprises just pay for the item or items they actually use.

Fees charged for urban development

The so-called “urban development fee” refers to the fee for construction of public utilities for citywide use, which lie beyond the “Red Line” in Beijing’s urban development plans. The fee shall not be charged on projects of paid transfer of land within the planned urban area in case it is already included in the price paid for the transfer. If not, the charge shall amount to 15 percent of the total capital investment for a project. Meanwhile, energy and communications projects and projects for developing public utilities, schools and hospitals shall be exempted from the fee. Charges on projects outside the planned urban area shall be decided by the relevant district and county governments by taking as reference the relevant municipal government regulations.

Land use fee

(For details, see chapter IV, 2)