A Hong Kong Company plans to acquire a local domestic-funded trading company in Haikou. The local business department said it needed to apply for relevant approval documents at the Ministry of Commerce in Beijing. What kind of documents are these? Which department(s) is/are responsible for issuing these documents?
 
Answer： According to Article 6 of “Interim Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors” (Order No. 3 of 2002 by Ministry of Foreign Trade and Economic Cooperation, State Administration of Taxation, State Administration for Industry & Commerce, and State Administration of Foreign Exchange), the approving authority under the Regulations is Ministry of Foreign Trade and Economic Cooperation (MOFTEC) of the People’s Republic of China, or provincial department in charge of foreign trade, and the registration authority is State Administration for Industry & Commerce of the People’s Republic of China or its authorized local administration for industry & commerce. If according to the law, administrative regulations and departmental regulations, foreign-invested enterprises established after mergers or acquisitions are categorized as belonging to a particular type or industry that need to be approved by MOFTEC, provincial approving authority should submit the application documents to MOFTEC for approval, and MOFTEC will decide whether or not to approve according to the law. For specific questions please consult Hainan Provincial Department of Commerce.
 
 
Question：  Our company changed our business scope to foreign trading business in July this year due to a business shift. Do we need make changes in our import & export qualification certificate and/or at the Customs? 
 
Answer： According to Article 3 of “The Registration of Foreign Trade Operators (Ministry of Commerce Order No.14 of 2004)”, Ministry of Commerce is the authority in charge of registration of foreign trade operators all over China. An enterprise switching its business type and changing its business scope does not mean it’s been granted the import & export right. Enterprises wishing to obtain the right to import & export have to complete registration process for foreign trade operators in the local department of foreign trade and economic cooperation or department of commerce. The registration steps are as follows: log on to the website of local commerce department or department of foreign trade and economic cooperation, click on the “registration for foreign trade operators”, download the form there and submit online after completing it, then go to the local commerce department or department of foreign trade and economic cooperation with the printed copy of the form to finish the registration process. After that go to the local inspection and quarantine bureau, the customs, taxation authority and foreign exchange administration to complete relevant registration. For more details please consult with the local commerce department, inspection and quarantine bureau, the customs, state tax department and foreign exchange administration.
 
 
Question：  Except that suppliers should pass QS, what are the other requirements for export of candies to England? 
 
Answer： 1. First identify HS code for the “candies” to be exported, then find that code in the “Customs Tariff of the People’s Republic of China (2006 Edition)”. The “regulatory conditions” on the right of the code are the customs’ regulations relating to the export of that commodity. If it is a commodity requiring inspection then inspection has to be completed. 2. Food quality and safety market access logo (“QS” logo) is a regulation of General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China. It is more important for export commodities to comply with the import requirements of the import country. Please check with your customers or the import country customs for requirements for that import commodity.
 
 
Question：  We are a Sino-foreign consultant joint venture. We want to add to the business scope “ consultation and marketing of tobacco”. Can we do that? If so what procedure should we follow?
 
Answer： Companies wishing to enlarge their business scope should make application to the local original approving authority to add to their business scope, then change their business license in the local industry & commerce administration where the company is registered. For more details please consult local department in charge of foreign trade and economic cooperation.
 
 
Question：  Where can the 2006 Customs Duty Rate for Import & Export Commodities be downloaded? Which countries have signed reciprocal customs agreement with China?
 
Answer： The customs tariff is not listed in the official website of the Chinese customs. The customs duty rate for import & export commodities is included in “ A Handbook for the Chinese Customs Declaration, (2006 Edition)” published by the General Administration of Customs. It can also be found in an unofficial website of customs information www.china-customs.com by, after log in, clicking on the enquiry link for the latest customs duty rate & tariff of the Chinese customs for 2006 (small bold blue font on the home page), which is only for reference though. Countries that have signed reciprocal customs agreement with China are listed in the annexes of “ A Handbook for the Chinese Customs Declaration”, which provides a relatively complete list.