(Promulgated on February 22, 1995)

(Promulgated on February 22, 1995) Whole document Rules of the Ministry of Foreign Trade and Economic Cooperation for Examination and Approval of International Shipping Agents with Foreign Investment (Promulgated on February 22, 1995) Article 1 These Rules are formulated in accordance with relevant laws and regulations of the State governing enterprises with foreign investment as well as regulations concerning trade administration.

Article 2 "International shipping agents" mentioned in the present Rules means enterprises with foreign investment that handle, on commission of the consignors and consignees, international shipment and relevant business of import and export, in the name of their clients or in their own names.

Article 3 The Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China (hereinafter called MOFTEC) shall be the authority for examination and approval and administration of international shipping agents with foreign investment.

Article 4 The establishment of an international shipping agent with foreign investment shall be advantageous to the development of foreign trade and fair competition.

Article 5 The establishment of an international shipping agent with foreign investment shall be in the form of either an equity joint venture or a cooperative joint venture.

Article 6 The minimum registered capital of an international shipping agent with foreign investment shall be: (1) US $ 1 million for ocean carriage; (2) US $ 800 thousand for air transport; (3) US $ 600 thousand for inland transport; and (4) any shipping agent with foreign investment engaged in two or more kinds of business mentioned above shall, correspondingly, increase the registered capital, depending on the specific requirements.

Article 7 The operation period of an international shipping agent with foreign investment shall not be longer than twenty years.

Article 8 An international shipping agent with foreign investment may, upon approval, be engaged in part or all of the following business: international shipping business for import and export of a trade or non-trade nature through ocean, inland and air transport, including such business as: goods collecting, space booking, space chartering, ship chartering, plane chartering, international multi-modal transport, storage, LCL and FCL, document preparation, B/L issuing, declaration at customs, declaration for inspection, declaration for test, insurance, settlement of transport overhead charges, etc.

Article 9 Chinese and foreign investors who apply for the establishment of international shipping agents with foreign investment shall, in addition to the requirements by the laws and regulations of the State concerning enterprises with foreign investment, meet the following conditions: (1) Chinese and foreign investors who apply for the establishment of international shipping agents with foreign investment shall be enterprises which are engaged in business relating to international transport of goods; and (2) the investors shall be of no less than three years' experience in this business, with management personnel and an appropriate number of clients.

Article 10 Application for the establishment of an international shipping agent with foreign investment shall, in accordance with the procedures provided for by the state's laws and regulations in force concerning enterprises with foreign investment be submitted to MOFTEC for examination and approval. With its approval, MOFTEC shall issue the Certificate of Approval for Enterprises with Foreign Investment and the Certificate of Approval for International Shipping Agents accordingly.

The Chinese partner shall go through the procedures with the department of administration for industry and commerce for registration of enterprise legal person by providing the certificate of approval issued by MOFTEC.

Article 11 An international shipping agent with foreign investment may, according to the needs of business development, apply for the set-up of branches and subsidiaries in other parts of China after one year's operation and performance of all of the contributions by the parties.

Application for the set-up of branches and subsidiaries shall, first, be submitted to the authorities for foreign economic relations and trade of the places where the shipping agent is located for preliminary examination, and then for comments to the authorities for foreign economic relations and trade in the places where the branches and subsidiaries are intended to be set up and finally to MOFTEC for examination and approval with the proceeding approval.

An international shipping agent with foreign investment which applies for the set-up of branches and subsidiaries shall present the following documents: (1) airport transmitted by the authority for foreign economic relations and trade of the place where the shipping agent is located and a letter of approval by the authority for foreign economic relations and trade of the place where the branches and subsidiaries are located; (2) a decision by the board of directors of the shipping agent for the set-up of branches and subsidiaries; (3) a report on business situation of the shipping agent and reasons for such setup and a feasibility study; and (4) a report of capital verification of the shipping agent.

An international shipping agent which applies for the set-up of branches and subsidiaries shall increase the registered capital accordingly, and the business scope of the branches and subsidiaries shall not be greater than that of the shipping agent.

Article 12 The present Rules shall, mutatis mutandis, apply to the international shipping agents set up in the mainland areas of the People's Republic of China with investment from companies, enterprises and other economic entities or individuals in Hong Kong, Macao and Taiwan.

Article 13 These Rules shall enter into force as of the date of their promulgation.