CHINA LAW DIGEST NEWSLETTER
Vol. 2, No.7 - July 9, 2003
TOPICS THIS ISSUE:
Internet:- Interim Rules on Internet Culture Administration
Customs: - Circular on Evaluation of Imported Goods Licensing Fees
Banking:- Decision on Adjusting Bank Market Entrance Administration Method and Procedure
- Measures on Administration of Financial Permit
Tax:- Circular on Whether Foreign Invested Enterprises Engaging in Sewage and Garbage Disposal Can Be Regarded as Production Enterprises
LEHMAN, LEE & XU OPENS SHENZHEN OFFICE Lehman, Lee & Xu is pleased to announce the opening of its new office in Shenzhen, Guangdong Province. Please direct all inquiries to attorney Zdravko Jelic at | |
Interim Rules on Internet Culture Administration
Issuing Date: May 10, 2003
Issuing Authority: Ministry of Culture
Effective Date: July 1, 2003
Summary
The Interim Rules define what are Internet culture units and their products, the requirements for establishing an Internet culture unit and how it should be operated.
Under the Interim Rules, Internet culture units ("ICUs") refer to Internet information providers approved by culture administration authority and telecommunication authority engaging in Internet culture activities. Internet culture activities refer to:
1) Providing of Internet culture products and services, including the production, reproduction, import, wholesale, retail, rental and broadcast of Internet culture products;
2) Post culture products on Internet, or send such culture products via Internet to end user computer, fixed line telephone, mobile, radio, television or game player for browsing or download; or
3) Exhibition and competition events of Internet culture product.
Internet culture products are defined as culture products produced, transmitted and circulated via Internet, including audio-visual products, game products, performance shows (programs), art works and animation works.
Internet culture activities are categorized into two types: profit and not-for profit. The establishment of profit and not-for-profit ICUs is subject to different application requirements. Approved ICUs shall post its Internet Culture Business Permit on its website main page. Operating profit type of ICUs without approvals from culture administration and telecommunication authorities is deemed to be violation of law and subject to fines below RMB 1,000.
Circular on Evaluation of Imported Goods Licensing Fees
Issuing Date: May 30, 2003
Issuing Authority: General Customs Administration
Effective Date: July 1, 2003
Summary
Imported goods licensing fee refer to all kinds of licensing fee payable by goods importer in obtaining of patents, trademarks, know-how, copyrights, distribution rights and other rights. Should the licensing fee fall within the following criteria, it shall be included counted in taxable price of imported goods: 1) it is related to imported goods; and 2) the payment of licensing fee is the condition for exporter to export the imported goods to China. The Circular then provided in detail what kind of licensing fee for patent, know-how, trademark, copyrights and distribution rights shall be counted included in taxable price.
For patent rights, if the imported goods contain the licensed patent, produced by using the patents or designed especially for implementation of the licensed patent, the licensing fee shall be included in taxable price. For trademark rights, if the imported goods are attached with the licensed trademark, or can be resold after attaching the licensed trademark, or can be resold after slight processing and attaching the licensed trademark, then the licensing fee shall be included in taxable price. For copyrights, if the imported goods contain software, literate, music, photograph, image or other copyrighted content via tapes, disk, compact disk or similar media, the licensing fee shall be included in taxable price. For distribution rights, if the imported goods can be sold directly after import, or can be resold after slight processing, the licensing fee shall be included in taxable price.
For fees and charges payable for 1) domestic reproducing purpose; and 2) expenses for technical training and overseas travels, if priced separately from the import goods, they will not be included in taxable price after confirmation from the Customs.
Decision on Adjusting Bank Market Entrance Administration Method and Procedure
Issuing Date: May 29, 2003
Issuing Authority: China Banking Regulatory Commission (CBRC)
Effective Date: July 1, 2003
Summary
The Decision is the first order in its kind issued by CBRC after assuming its responsibility on April 28, 2003 and aimed to increase market entrance efficiency. It adjusted the methods and procedure for banking market entrance in three major areas:
1) To adjust authorization limitation on establishing new branch offices. CBRC and its local branch shall be responsible for the establishment of new branches of policy bank, state-wholly-owned commercial bank and equity holding commercial bank. The approval procedure for the establishment of new branches of foreign funded banks remains unchanged.
2) To adjust approval method of new business. Cancel the following business engaged by Chinese funded commercial banks: domestic factoring, agent for securities account settlement, agent for investment trust for insurance companies and securities companies, enterprise pension trust and asset entrustment. Cancel the following filings required on Chinese funded commercial banks: buyer negotiable instrument discount, overdraft on legal person account and agent for receipt of trust funds. Cancel the following filings required on foreign funded banks: domestic factoring, buyer negotiable instrument discount, overdraft on legal person account. All commercial banks just need to report to CBRC or its local branches in written within 10 days after initiate of the above-mentioned business.
3) To adjust the approval method of the qualification of being senior officers. For senior officers transferred at the same level within the same units, if the senior officer has been reviewed of his qualification, the original qualification review is still valid. New review is then not necessary. Cancel filing of vice president of foreign funded bank branch offices.
Measures on Administration of Financial Permit
Issuing Date: May 31, 2003
Issuing Authority: CBRC
Effective Date: July 1, 2003
Summary
The Measures made changes to the original financial permits system with respect to the issuance, application, amendment, administration and public notice of financial permits. It simplifies the administration and reduces burdens on financial institutions. The current financial permit was established in 1994 and could not keep pace with the development of financial industries over these years. The Measures are applicable to all financial institutions which include policy bank, commercial bank, financial assets management company, credit cooperation unit, post saving institution, trust investment company, group financial company, financial leasing company and foreign funded financial companies.
The Measures unified the form of financial permits. It cancelled the annual review on financial institutions and duration of financial permits. The establishment, amendment and revocation of financial institutions shall be announced in public and made it publicly available on the Internet. The new financial permit system saved CBRC and banks from overburden of permit printing and changes.
Circular on Whether Foreign Invested Enterprises Engaging in Sewage and Garbage Disposal Can Be Regarded as Production Enterprises
Issuing Date: April 9, 2003
Issuing Authority: STA
Effective Date: April 9, 2003
Summary
In order to protect environment and accelerate construction of infrastructure, STA ruled in the Circular that foreign invested enterprises engaging in sewage and garbage treatment and disposal can be regarded as production oriented enterprises and enjoy tax preference policies accordingly.
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
http://www.lehmanlaw.com
Beijing Office | Shanghai Office |
6th floor, Dongwai Diplomatic Office Building
23 Dongzhimenwai Dajie
Beijing 100600 China
Tel.: (86)(10) 8532-1919
Fax: (86)(10) 8532-1999
Email: mail@lehmanlaw.com | Suite 1310, Kerry Centre
No. 1515, West Nanjing Road
Shanghai 200040 China
Tel: (86)(21) 6288-2698
Fax:(86)(21) 6288-2699
Email: shanghai@lehmanlaw.com |
The China Law Digest News is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
Unsubscribe |
Internet Explorer users, please click here: chinalawdigest@lehmanlaw.com?subject=Remove%20China%20Law%20Digest%20%21*ADDITIONAL_FIELD1*%21 |
Netscape users, please send email to: chinalawdigest@lehmanlaw.com
with
Remove China Law Digest !*ADDITIONAL_FIELD1*!
in the Subject Line. |
