China Regulatory Brief: Forbidden Postal Items Negative List, Online Trademark Application System Broadened

Negative list of items forbidden to be sent by post published

The State Post Bureau, the Ministry of Public Security, and the Ministry of State Security have jointly issued regulations on managing items not permitted to be mailed by post, releasing a ‘negative list’ of items forbidden from being mailed to the public, which increases the item count to 188 from 58 in the previous regulation.

It also clarifies standard requirements on the application scope and other matters concerning the items not permitted to be mailed. Prohibited items generally fall into the following categories: items that harm national security, items that disturb social order and stability, explosives, flammables, corrosives, poisons, infective material, radioactive material, or any other items specified by law. In addition, regulations for cigarettes have been imposed, as well as tightened punishment for violation of the regulations.

Administration measures for origin of imported goods from least developed countries released

The General Administration of Customs (GAC) has issued measures for the administration of the origin of imported goods from the least developed countries, which will come into effect on April 1, 2017.

The document consists of 29 articles, which corresponds to special preferential tariff treatment administration for the origin of imported goods from the least developed countries. Preferential tariff rates can be applied to goods produced in countries covered by the special tariff scheme and directly transported to China from such countries. It also clarifies provision for imported goods under the scheme exempting the requirement for a Certificate of Origin or Declaration of Origin if the taxable price does not exceed RMB 6,000. All decisions regarding the preferential scheme are at the discretion of the GAC.

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Online trademark application system business scope expanded

The Trademark Office of the State Administration for Industry and Commerce has issued an announcement regarding the launch of its online trademark application system.

This indicates that the acceptance scope of the application system has shifted from only accepting applications from agents to also accepting applications from trademark agents, domestic applicants, foreigners having permanent residence or business offices in China, and foreign enterprises.

Furthermore, the system’s business scope will gradually extend beyond trademark registration applications to applications for renewal, assignment, deregistration, and modification of trademarks. The new online application system was launched on March 10, 2017. Fees are paid online, and currently only trademark registration applications are accepted.

Plans for international taxation efforts by nationwide tax authorities

The State Administration of Taxation (SAT) held a conference with nationwide tax authorities regarding the work of international tax collection. It summed up international tax collection in 2016 and defined the work focus and requirements for the coming year.

During the conference, the functions and importance of the Shanghai International Tax Service Center were highlighted. It announced plans to publicize and interpret tax agreements, eliminate tax-related disputes, and sign MOUs on tax collection cooperation with major countries. In line with the “One Belt, One Road” strategy, information sharing with tax authorities of neighboring countries will be further developed.

Domestic interdepartmental cooperation was also emphasized, with the cooperation between the SAT offices and Local Taxation Bureaus to be continually strengthened, as well as the establishment of a mechanism to link tax authorities with banks, foreign exchange regulators, business administrators and customs to improve the quality and efficiency of cross-border administration of tax sources.

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Doing Business in China 2017 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in January 2017, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.

New Considerations when Establishing a China WFOE in 2017
In this edition of China Briefing, we guide readers through a range of topics, from the reasons behind foreign investors’ preference for the WFOE as an investment model, to managing China’s new regulations. We discuss how economic transformations have favored the WFOE, as well as the investment model’s utility, and detail key requirements that businesspeople need to examine before initiating the WFOE setup process. We then walk investors through the WFOE establishment process, and, finally, explain the new and idiosyncratic “Actual Controlling Person” regulation.

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