Speach:Invest to Chinas logistics and shipping industry - key legal issues

Foreign Investment in International Maritime Transport (Feb 25, 2004) Foreign Investment in Chinese international maritime transport service should compaly with this Provision, Regulations of Maritime and the Procedure of Maritime Regulation.. a. Investment Area: 1. International maritime transport of freight and passengers, international shipping agency services, international ship management services, loading and unloading of international shipments, and international maritime container freight station and container yard services 2. International maritime cargo warehousing services 3. Routine services for the vessels b. Investment Form 1. International maritime transport of freight and passengers, international shipping agency services, international ship management services, loading and unloading of international shipments, and international maritime container freight station and container yard services: Can establish sino-foreign equity joint venture or sino-foreign contractual joint venture with a maximum foreign investment of 49 percent of the total registered capital of the joint venture 2. International maritime cargo warehousing services Can establish wholly foreign-owned enterprises or JV. 3. Routine services for the vessels Can establish wholly foreign-owned enterprises or JV. c. Investment Conditions 1. International maritime transport i. shall have the vessels suitable for the management of International maritime transport, among which shall be Chinese vessels; ii. have Bill of Lading, tickets or inter-model invoice; iii. senior managers with qualified certificate by Ministry of Communication iv. other conditions required by Laws and Regulations. *Note: The chairman of directors and general manager of the Joint Venture should be appointed by the Chinese Party. 2. International Shipping Agency Service i. shall have at least 2 people with more than 3 years?? experience in international maritime transport within the senior managers of the enterprises; Senior manager means the Chinese citizen with a professional title above or at middle level works in international maritime enterprise or international maritime auxiliary enterprise with the position of or above the department manager; ii. shall have a fixed premises and necessary business facilities, including the abilities of electron data exchange with the Government department such as Port Bureau or Customer; iii. other conditions required by Laws and Regulations. d. Governing Department and the Establishment Procedure 1. Governing Department: National Ministry of Communication, Ministry of Commerce 2. Establishment Procedure: Application to the Ministry of Communication for the Establishment ?? lang=EN-US> Application for the Establishment to the Ministry of Commerce rely on the approval document issued by the Ministry of Communication ?? lang=EN-US> Business Registration in Administration of Industry and Commerce for the Business License rely on the approval document issued by the Ministry of Communication and Ministry of Commerce ?? lang=EN-US> Application for Approval Certificate for International maritime transport and International Shipping Agency Service / International Shipping Agency Service e. Business Term : no more than 20 years. Closer Economic Partnership Arrangement Annex 4 (June 29, 2003) Hongkong and Macau investors can establish WOFE operating in International Ship Management, International maritime cargo storage and international maritime container freight station and container yard services; WOFE shipping company. B. Internal Waterways Transport Protocal on the Accession of the People??s Republic of China to the World Trade Organization Annex 9 (Nov, 11, 2001)