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SOME LAWS AND REGULATIONS

Administrative Measures on the Investment in the Commercial Field by the Foreign Investors

 

Article 14 The legal documents including the trademark, trade name license contract, technology transfer contract, management contract and service contract signed by foreign invested commercial enterprises shall be submitted as the appendices of the contract.(as for the foreign-capital commercial enterprises, the said documents shall be regarded as the appendices of the Articles of Association)

Article 15 The land used for opening the stores by the foreign invested commercial enterprises shall be acquired through methods such as public bidding, auction and listing in accordance with the relevant state laws and administrative regulations on land management.

Article 16 Foreign invested commercial enterprises that sell the commodities subject to the state specialized regulations and imported and exported commodities under the quota and license management shall go through the formalities according to the relevant state regulations.

Article 17 Foreign invested commercial enterprises selling the following commodities shall conform to the following regulations in addition to the regulations of the Measures:

Foreign invested commercial enterprises selling the books, newspapers and periodicals shall conform to the "Methods on the Management of Foreign Invested Enterprises for the Distribution of Books, Newspapers and Periodicals".

Foreign invested commercial enterprises that operate the gas station and are engaged in the retail of product oil shall have stable supply channel of product oil and conform to the local gas stations construction planning, and their operating facilities shall meet the existing state standards and the provisions of the metrological verification rules as well as the fire control and environmental protection requirement. The detailed implementation Measures shall be formulated by the Ministry of Commerce separately.

Foreign invested commercial enterprises selling the medicine shall conform to the relevant state regulations on the management of the sales of medicine, and the detailed implementation Measures shall be formulated by the Ministry of Commerce separately.

Foreign invested commercial enterprises selling the automobiles shall operate the business within its approved scope of business, and the detailed implementation Measures shall be formulated by the Ministry of Commerce separately.

Unless otherwise stipulated in Article 18 and this Article of the Measures, the commercial enterprises invested by the foreign investors to sell the agricultural and sideline products and capital goods in the agricultural sector are not subject to the restriction of the location, proportion of shares and amount of the investment.

Foreign invested commercial enterprises engaged in the wholesale business shall not sell the medicine, pesticide and agricultural film before Dec. llth, 2004. A nd shall not sell the chemical fertilizer, product oil and crude oil before Dec. 11 st, 2006.

Foreign invested commercial enterprises engaged in the retail business shall not sell the medicine, pesticide, agricultural film and product oil before the Dec. 11 th, 2004 and shall not sell the chemical fertilizer before Dec. 11 th 2006.

Foreign invested commercial enterprises engaged in the wholesale business shall not sell the salt and tobacco, and the foreign invested commercial enterprises engaged in the retail business shall not sell the tobacco.

Article 18 Where the total number of the stores opened by the same foreign investor within the t erri tory of China exceed 30, and the commodities they sell includes books, newspapers, magazines, automobiles (the restriction will be lifted as of Dec. 11 th, 2006), medicine, pesticide, agricultural film, chemical fertilizer, product oil, grain, vegetable oil, sugar, and cotton which are of different brands and come from different v suppliers, the proportion of contribution by the foreign investor shall not exceed 49%.

Article 19 The foreign invested commercial enterprises authorizing others to open the stores by means of franchise operation shall observe the regulations otherwise stipulated by the state pertaining to the franchise operation in addition to the Measures.

Article 20 The foreign invested commercial enterprises engaged in the auction business shall conform to relevant laws including the "Auction Law" and "Cultural Relics Law", and be approved by the Ministry of Commerce. The detailed implementation Measures shall be formulated by the Ministry of Commerce separately.

 
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