To make preparation for China's entrance to WTO and broaden the trading rights of foreign-invested enterprises, we hereby release this circular as follows£º
1. Extending the export rights of productive foreign-invested enterprises
Subject to the following threshold conditions, foreign-invested enterprises who are involving in manufacturing industry (the "Productive Enterprises") are allowed to engage in purchasing the non-quota and licence controlled merchandises for export and participate in the export quota bidding activities for the products manufactured by their own:
(1) the Productive Enterprises with the annual export volume exceeding US$10 million;
(2) No records of breaking the laws and regulations relating to taxes, foreign exchanges and import and export in the previous two continuous years before the application;
(3) Having professional who are capable to handle international trade matters.
2. Extending import rights of foreign-invested investment company whose parent company is a manufacturing group.
Issues concerning import of products for system integration or trial sale products shall be subject to the Supplementary Provisions of Provisional Regulations Concerning Establishment of Investment Companies by Foreign Business Entities (MOFTEC Decree No.1 of 2001) promulgated by the MOFTEC.
3. For the purpose of market testing of its products, foreign-invested research & development center ("R & D Center") may import and sell a small quantity of its parent company's high-tech and new products, provided, however that:
(1) The imported parent company's products are the market testing products which have been researching and developing by the R & D Center;
(2) Import quantity fits its market testing requirements.
Where and when the productive foreign-invested enterprises, foreign-invested investment companies and foreign-invested R & D Centers that are intending to engage themselves in the above-mentioned business, shall apply for an alteration of their business scope with their original examination and approval authority.
The productive foreign-invested enterprises, foreign-invested investment companies and foreign-invested R & D Centers that engage in the above-mentioned business shall file their annual import statistics with MOFTEC.¡¡
