CHINA MARINE LAW NEWSLETTER
Vol. 1, No. 2 - November 27, 2000
TOPICS THIS ISSUE:
- China Plans to Require Marine Black Boxes
- China Plans for Thirty Cargo Circulation Centers
- Mariner Certificate Getting Online
- Vessel Security Call Alert
- Setting Up a Foreign-Owned Freight Forwarding Company in China
China Plans to Require Marine Black Boxes
China is currently producing shipborne navigation data recorders (VDR) that have been developed domestically. The government plans to require these 'black boxes' be installed on all passenger vessels, cargo R/R vessels (vessels that allow cargo to be directly loaded [JH1]), and passenger R/R vessels operating in the Qiongzhou Strait, Bohai Bay and waters around the Zhoushan archipelago. The VDR, dubbed the "VDR-1" is expected to be onboard all inland vessels around 2002.
(Source: China Classification Society)
China Plans for Thirty Cargo Circulation Centers
China's Domestic Trade Bureau will establish 30 experimental cargo centers in major cities throughout the country. On the basis of these pilot projects, 10 nation-wide cargo distribution centers will be established with the support of government. According to the Bureau, these centers will help develop and regulate the development of cargo intermediary companies and brokers, and will facilitate the modernization of sales and distribution, including E-commerce. The goal is for large cargo intermediaries to have more than a 50% share of the market by the end of the 10th five-year-plan, which will run from 2001-2005.
(Source: China Transportation News, Oct. 10)
LEHMAN LEE PROVIDES A FULL RANGE OF SERVICES ON CHINA MARITIME LITIGATION, ARBITRATION AND ENFORCEMENT.
CONTACT US AT mail@chinalaw.cc
Tel: 8610-6532-3861; Fax: 8610-6532-3877 |
Mariner Certificate Getting Online
The Guangdong Maritime Bureau reports that the National Maritime Administration authorities will inter-link all their mariner certificate databases[JH2] by the end of this year. Currently, mariner certificates are administrated manually. This has resulted in a situation where those mariners who have violated professional rules and had their certificates revoked can easily get new ones from another authority by claiming that they were lost. It was hoped that, by linking the systems, information exchange between agencies will be facilitated, and supervision over mariner qualifications will be improved.
(Source: China Transportation News, Nov. 14)
Vessel Security Call Alert
China's Ministry of Transportation recently has completed its Vessel Security Assessment program. Of the 87 passenger vessels[JH3] inspected, only 7 conform to all the security parameters. The problems detected include weak resistance to wind, lack of fixed anti-fire facilities, and a lack of proper lifeboats. The ministry also inspected 32 passenger carriers and R/R freight vessels. A mere 6 out of the 32 companies whose ships were inspected met all the requirements. Most of the company's navigation supervisors inspected were found to be holding inferior qualifications, and some mechanical supervisors even had no qualifications at all. Some of the companies were not licensed. Finally, only 11 out of the 28 wharves inspected passed the security inspection.
(Beijing Evening News, Nov. 17)
Looking to build your web presence in China?
Web Design | Information Architecture | Custom Software | Chinese Language Support | Strategy and Consultation
design@distilleddesign.com
Contact Distilled Design today for a free consultation |
Setting Up a Foreign-Owned Freight Forwarding Company in China
This article is composed in accordance with the Regulations on the Approval of International Freight Forwarding Enterprises with Foreign Investment. The article is only intended to provide information on the subject concerned and should not be regarded as an official translation or interpretation of the Regulations.
TYPE OF ENTERPRISE
Only joint ventures in equity or contractual joint ventures, not WFOEs, are allowed in this sector.
QUALIFICATIONS OF FOREIGN INVESTORS
Foreign investors are limited to incorporated entities. In addition, incorporated entities must meet the following requirements:
1. The entities must have been in the business of freight forwarding for more than 3 years;
2. The entities must not have any history of violating any laws or regulations in their home jurisdictions;
3. If the entities already have freight forwarding enterprise in China, their business presence in China must have been longer than 5 years.
QUALIFICATIONS OF CHINESE PARTNERS
At least one of the Chinese partners must:
1. Be in the business of freight forwarding or foreign trade with an annual business volume of more than 50 million USD;
2. Be in the business of freight forwarding or foreign trade for more than 3 years;
3. The Chinese partner also cannot have any record of violating any laws or regulations.
DENIAL OF ACCESS
Companies that are air or marine carriers or in any other business that may impose unfair competition are not permitted to be joint venture partners.
REGISTERED CAPITAL AND PORTION OF SHARES
The registered capital can be no less than 1 million USD. If the joint venture sets up any branch or subsidiary, 120,000 USD will be added to the registered capital for each branch or subsidiary. Chinese partners must possess at least 50% of the shares of the joint venture.
PROCEDURAL RULES
Step one: The partners of the joint venture shall enter into the agreement and articles of association that will be submitted afterward by the Chinese partners for approval by the Foreign Trade and Economic Cooperation Authorities in the location of the business. Step two: After being approved by the local authorities, the documents will be submitted to MOFTEC for approval. Step three: MOFTEC will review the documents and issue a Letter of Approval if the applicant meets all the requirements. Step four: The Chinese partner must go through the registration process with the local Administration of Commerce and Industry within the time prescribed by the relevant authorities. Then the joint venture is ready for operation.
SETTING UP SUBSIDIARIES
The following requirements must be met before the joint venture can set up subsidiaries:
1. The joint venture must have been in operation for at least 1 year;
2. The capital contributions by all the parties of the joint venture have to be completed and verified.
Also the following documents must be provided to the local authorities and MOFTEC for approval:
1. The decision of the Board of Directors with regard to the establishment of subsidiaries and the increase of the capital requirements;
2. Amendments to the original joint venture agreement and articles of association in light of the establishment of subsidiaries.
3. Business reports of the joint venture;
4. Justifications and a feasibility report of the establishment of subsidiaries.
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
(formerly known as the L&A Law Firm)
Suite 188, Beijing International Club
21 Jianguomenwai Dajie, Beijing 100020 China
Tel.: (86)(10) 6532-3861
Fax: (86)(10) 6532-3877
http://www.chinalaw.cc/
To unsubscribe from this newsletter click here or send an email to chinalaw@chinalaw.cc with UNSUBSCRIBE_Marine in the subject line.
The China Marine Law Newsletter 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.
