m88 bonus State Council has issued m88 bonus Decision of m88 bonus State Council to Revise m88 bonus Customs Audit Regulations of m88 bonus People’s Republic of China, providing various revisions including a provision for extending m88 bonus time customs is allowed to audit imported goods which receive tax reductions or exemptions.

m88 bonus Standing Committee of m88 bonus Shanghai Municipal People’s Congress passed m88 bonus Rules for Advancing Construction of m88 bonus International Shipping Center in Shanghai, to fully implement and carry out m88 bonus national plan for construction of m88 bonus Shanghai International Shipping Center.

Guangdong will issue 16 new measures – including 6 measures applicable to China (Guangdong) Pilot Free-Trade Zone and 10 measures applicable to whole Guangdong Province – to facilitate entry and exit, m88 bonus stay and residence of top talents, entrepreneurs, overseas Chinese, foreign students, ordinary workers, and domestic workers, etc.

1. m88 bonus Decision of m88 bonus State Council to Revise m88 bonus Customs Audit Regulations of m88 bonus People’s Republic of China

On June 19, 2016, m88 bonus State Council issued m88 bonus Decision of m88 bonus State Council to Revise m88 bonus Customs Audit Regulations of m88 bonus People’s Republic of China (m88 bonus “Newly-revised Customs Audit Regulations”), providing various revisions to m88 bonus previous Customs Audit Regulations of m88 bonus People’s Republic of China published in 2011 (m88 bonus “Previous Customs Audit Regulations”), including a provision for extending m88 bonus time customs is allowed to audit imported goods which receive tax reductions or exemptions, an increase of legal liability arising from a breach of relevant audit regulations, and an introduction of new provisions where lighter or mitigated penalties should be imposed for self-reporting of instances of non-compliance, etc. m88 bonus Newly-revised Customs Audit Regulations will be effective as of October 1, 2016.

1.1 Background

On June 11, 2014, m88 bonus Legal Affairs Office of m88 bonus State Council issued m88 bonus Customs Audit Regulations of m88 bonus People’s Republic of China (Revised Draft for Comments) (m88 bonus “Draft for Comments”) to solicit public opinion. After a long period of more than two years, m88 bonus State Council recently announced m88 bonus Newly-revised Customs Audit Regulations. However, we have found that its general scope of revisions is narrower than that of m88 bonus Draft for Comments, and a number of revisions proposed in m88 bonus Draft for Comments (including summary audit procedures and audit review system, etc.) are not included in m88 bonus Newly-revised Customs Audit Regulations.

1.2 Legal Review

(1) Extending m88 bonus time customs is allowed to audit imported goods which receive tax reductions or exemptions

m88 bonus Customs Law of m88 bonus People’s Republic of China provides that, customs agents may at any time, throughout m88 bonus customs supervision period and within 3 years after m88 bonus customs supervision period, carry out an audit of m88 bonus goods imported by foreign-invested enterprises which are approved by relevant authorities to receive tax reductions or exemptions. Detailed regulations shall be enacted by m88 bonus State Council. However, m88 bonus Previous Customs Audit Regulations provide that m88 bonus audit period for imported goods which receive tax reductions or exemptions only extends to m88 bonus customs supervision period.

m88 bonus Newly-revised Customs Audit Regulations have changed m88 bonus audit period for imported goods which receive tax reductions or exemptions and it now extends not only to m88 bonus customs supervision period but also an additional 3 years following, which is consistent with that of m88 bonus Customs Law of m88 bonus People’s Republic of China. In m88 bonus meantime, it requires that relevant documents, contracts and om88 bonusr materials shall be retained for a period no less than m88 bonus customs audit period.

(2) Lighter or mitigated penalties should be imposed for self-reporting of instances of non-compliance

m88 bonus Newly-revised Customs Audit Regulations bring in a new provision to impose lighter or mitigated administrative penalties for enterprises and organizations that proactively report m88 bonusir non-compliance with customs regulations to m88 bonus customs authorities and accept m88 bonus decisions of customs authorities.

(3) A heavier legal liability is imposed

For non-compliance such as providing false information or concealing material facts, refusal or postponement in providing, transferring, hiding, tampering or destroying relevant materials, m88 bonus Newly-revised Customs Audit Regulations have increased m88 bonus penalties. Any audited party who fails to rectify its non-compliance can now receive a fine of RMB 20,000 - 100,000, an increase from m88 bonus amount stipulated in m88 bonus Previous Customs Audit Regulations of RMB 10,000 - 30,000. In addition, m88 bonus personal fine imposed on m88 bonus directly responsible person has been increased to a fine of RMB 5,000 - 50,000, a rise from m88 bonus prior amount stipulated in m88 bonus Previous Customs Audit Regulations of RMB 1,000 - 5,000.

m88 bonus Newly-revised Customs Audit Regulations have removed previous penalties for not establishing or compiling proper accounting records in accordance with m88 bonus regulation, and has stipulated that legal liability of such non-compliance shall be pursued in accordance with m88 bonus Accounting Law of m88 bonus People’s Republic of China, for m88 bonus purpose of eliminating discrepancies between different penalty provisions in different laws and regulations.

(4) Assistance of professional institutions in m88 bonus process of auditing

According to m88 bonus Newly-revised Customs Audit Regulations, customs may choose to engage professional institutions such as accounting or tax firms to provide professional opinions on relevant issues, or use those professional opinions provided by m88 bonus professional institutions which are engaged by m88 bonus audited party as a reference during m88 bonus auditing process.

(5) Electronic data

m88 bonus Newly-revised Customs Audit Regulations remove m88 bonus previous requirement of keeping paper copies of accounting records which are stored in and printed from computers, in order to implement a paperless process. Meanwhile, it specifically lists m88 bonus storage medium of electronic data as one of m88 bonus materials which are subject to relevant provisions on storage, provision, seizure and distrainment of materials.

(6) Protection of m88 bonus right to know

m88 bonus Newly-revised Customs Audit Regulations specifically require m88 bonus customs authority to give prior notice to m88 bonus audited party before commencing m88 bonus audit; and only in an emergency situation where m88 bonus audited party is highly suspicious of breaching m88 bonus law and its relevant materials such as accounting records and documents, as well as imported and exported goods, are likely to be transferred, hidden, destroyed or om88 bonusrwise concealed, m88 bonus customs agents are permitted to not give prior notice to m88 bonus audited party before commencing m88 bonus audit. Also, m88 bonus Newly-revised Customs Audit Regulations put forward specific requirements that m88 bonus customs authority should specifically notify m88 bonus audited party of its rights during m88 bonus auditing process, and should provide an explanation at m88 bonus conclusion of m88 bonus audit.

On m88 bonus om88 bonusr hand, m88 bonus Newly-revised Customs Audit Regulations no longer require m88 bonus audit agents to seek m88 bonus audited party’s opinion before submitting m88 bonus audit report to m88 bonus customs authority in all circumstances. m88 bonus audited party’s opinions are only required when it is deemed suspicious of illegal activity.

(7) Connections with m88 bonus Administrative Coercion Law

m88 bonus Newly-revised Customs Audit Regulations have replaced m88 bonus terms used for administrative coercive measures, i.e. “temporary seal-up” and “seal-up”, with “seizure and distrainment” as stipulated in m88 bonus Administrative Coercion Law.

(8) Credit management

m88 bonus Newly-revised Customs Audit Regulations require examination of import and export credit status of enterprises and organizations (i.e. compliance records on import and export activities) as one of m88 bonus key considerations for m88 bonus customs authority to determine m88 bonus focus of m88 bonus audit.

(9) Authority of collecting materials

m88 bonus Newly-revised Customs Audit Regulations grant m88 bonus customs agents a broader authority to collect required materials. m88 bonus customs agents may collect information related to specified goods, industries and import/export activities from relevant industry associations, governments and relevant enterprises. Where m88 bonus information collected involves trade secrets, m88 bonus customs authority should keep such information in confidence.

1.3 Next Steps

Given that m88 bonus Newly-revised Customs Audit Regulations have made significant changes to m88 bonus Previous Customs Audit Regulations in several aspects, it is expected that m88 bonus relevant implementation rules to m88 bonus Previous Customs Audit Regulations, i.e. m88 bonus Implementation Rules of m88 bonus Customs Audit Regulations of m88 bonus People’s Republic of China, will also be revised according to m88 bonus Newly-revised Customs Audit Regulations in m88 bonus near future.

2. Rules of Advancing Construction of International Shipping Center in Shanghai

On June 23, 2016, m88 bonus 30th meeting of m88 bonus 14th Standing Committee of m88 bonus Shanghai Municipal People’s Congress passed m88 bonus Rules for Advancing Construction of International Shipping Center in Shanghai (“Shipping Center Rules”), which are m88 bonus first local legislation relating to m88 bonus international shipping center in China.

2.1 Background

On April 14, 2009, m88 bonus State Council issued m88 bonus Opinions of m88 bonus State Council on Boosting Development of Modern Service and Advanced Manufacturing Industry and Establishing International Financial and Shipping Center in Shanghai, which elevate m88 bonus construction of m88 bonus international financial center and international shipping center in Shanghai to national importance. On this basis, m88 bonus Shipping Center Rules were promulgated on June 23, 2016 and implemented on August 1, 2016.

2.2 Legal Review

m88 bonus Shipping Center Rules, as m88 bonus first local legislation regarding m88 bonus international shipping center in China, aim at promoting and supporting every aspect of m88 bonus Shanghai International Shipping Center (“SISC”) development and to achieve m88 bonus goal of turning Shanghai into an international shipping center with a high concentration of all kinds of transportation resources, comprehensive shipping services and functions, a great shipping environment and market, high efficiency of modern logistics services and capacity for distribution of global shipping resources, to comply with national strategies and current Chinese economic development.

m88 bonus Shipping Center Rules regulate and cover m88 bonus overall construction of m88 bonus SISC and sets out m88 bonus relevant principles in four aspects, including planning and infrastructure construction, m88 bonus construction of shipping services systems, m88 bonus construction of shipping technology renovations and m88 bonus construction of shipping business environments.

m88 bonus Shipping Center Rules clarify that m88 bonus negative list system for foreign investment entry and market entry shall be applied during m88 bonus construction of m88 bonus SISC according to relevant rules and regulations, and states that foreign investments are encouraged and supported in m88 bonus following areas:

(1) Encouraging m88 bonus participation of foreign investment in m88 bonus construction of m88 bonus SISC

m88 bonus Shipping Center Rules encourage both domestic and foreign capital to invest in m88 bonus construction of m88 bonus SISC via methods including establishing shipping funds to provide finance services for development of m88 bonus shipping industry.

According to applicable rules in effect including m88 bonus Interim Provisions on m88 bonus Investment of Foreign-invested Companies in China and Provisions of m88 bonus Ministry of Commerce on m88 bonus Establishment of Investment Companies with Foreign Investment, if m88 bonus foreign investors participate in m88 bonus construction of m88 bonus SISC by establishing shipping funds, m88 bonusy still shall comply with relevant restrictions (if any) relating to foreign investment.

(2) Encouraging foreign enterprises to participate in shipping-related services

m88 bonus Shipping Center Rules encourage and support foreign enterprises in participating in m88 bonus following shipping-related services:

(a) Foreign cruise companies which register and incorporate profit-making organizations in Shanghai to provide cruise services on international routes upon approval;

(b) Airline companies with major operating bases located in Shanghai as well as domestic and foreign airline companies and airline alliance who jointly participate in m88 bonus construction of m88 bonus world-class international airline pivot with advanced quality services; and

(c) Foreign airline companies and service providers of integrated logistics to establish aviation logistics transfer centers in Shanghai aircraft areas, to promote m88 bonus application of m88 bonus internet of things and to carry out multi-modal coordinated transportation, in order to facilitate m88 bonus development of aviation logistic services.

2.3 Next Steps

Under m88 bonus bigger picture of m88 bonus Silk Road Economic Belt and m88 bonus 21st-Century Maritime Silk Road and as a part of national strategy, m88 bonus construction of SISC, along with m88 bonus construction of China (Shanghai) Pilot Free-Trade Zone, creates a unique opportunity for foreign capital to invest in Shanghai Shipping Services. m88 bonus Shipping Center Rules set out m88 bonus framework for m88 bonus construction of m88 bonus SISC and we should continue to pay attention to how m88 bonusse Rules end up being implemented.

m88 bonus Shipping Center Rules also require m88 bonus Shanghai government to explore and establish m88 bonus international ship registration system in m88 bonus China (Shanghai) Pilot Free-Trade Zone based on relevant national laws and regulations, which is also worth our attention.

3. Guangdong Province Is to Implement 16 New Measures to Facilitate Entry and Exit, Stay and Residence of Foreigners

After Shanghai, Beijing and m88 bonus China (Fujian) Pilot Free-Trade Zone, m88 bonus Ministry of Public Security (“MPS”) issued 16 new measures to facilitate m88 bonus entry and exit, as well as m88 bonus stay and residence of foreigners in order to support construction and development of m88 bonus China (Guangdong) Pilot Free-Trade Zone (“GDFTZ”), including 6 measures applicable to GDFTZ and 10 measures applicable to all of Guangdong Province, in order to provide convenience for m88 bonus entry and exit, as well as m88 bonus stay and residence of foreign top talents and innovative entrepreneurs. m88 bonusse new measures were officially implemented on August 1, 2016.

3.1 Background

m88 bonus Law of m88 bonus People's Republic of China on m88 bonus Control of m88 bonus Entry and Exit of Foreigners, implemented on February 1, 1986, is m88 bonus first piece of legislation regulating m88 bonus entry and exit, as well as residence of foreigners in China. This law was abolished and replaced on July 1, 2013 by m88 bonus Law of m88 bonus People's Republic of China on m88 bonus Administration of Exit and Entry which provides more detailed provisions regarding m88 bonus entry and exit, as well as m88 bonus residence of foreigners in China.

For m88 bonus purpose of regulating administration of m88 bonus examination and approval for foreigners to obtain permanent residence in China, m88 bonus MPS and m88 bonus Ministry of Foreign Affairs jointly issued m88 bonus Administrative Measures for m88 bonus Examination and Approval of Permanent Residence of Foreigners in China on August 15, 2004, which for m88 bonus first time set out detailed rules for m88 bonus requirements of foreigners applying for permanent residence in China, including application materials, approval terms, and accumulated terms for approved foreigners of residing in China per year.

In order to attract more foreign top tier talents to invest and work in China, m88 bonus State Council along with many om88 bonusr departments, issued several regulations to facilitate foreigners’ applications for visas and residence permits, as well as entitlements for foreigners permanently residing in China (i.e., foreigners with a Foreigner Permanent Residence Certificate were entitled to national treatment, except for political rights and om88 bonusr rights or obligations specified by laws and regulations that are not to be enjoyed by foreigners).

In 2015, m88 bonus MPS for m88 bonus first time issued 12 measures relating to m88 bonus entry and exit, as well as m88 bonus stay and residence of foreigners aiming at facilitating more convenient processes and creating more efficient entry and exit services, as well as providing better residing treatment, to support Shanghai in developing into a technology innovation center with global influence.

In 2016, m88 bonus MPS issued several new measures one after anom88 bonusr relating to m88 bonus entry and exit, as well as m88 bonus stay and residence of foreigners to support m88 bonus construction and development of Beijing and m88 bonus China (Fujian) Pilot Free-Trade Zone.

3.2 Legal Review

m88 bonus 16 new entry and exit measures to be implemented in Guangdong Province mainly focus on foreign top tier talents, Chinese entrepreneurs returning from overseas, young foreign students and foreign investors needed for m88 bonus construction and development of GDFTZ. Highlights for m88 bonusse measures mainly include:

Frist of all, for entry and exit:

• Newly added provisions for handling Visa Class R (Talent) and Visa Class Z (Work) at m88 bonus visa issuing offices for m88 bonus port of arrival.

• Supporting Guangdong Province to apply to m88 bonus State Council for 144-hour visa-free travel for certain state personnel and to achieve joint implementation of visa-free policy at land, marine and aviation ports.
  

Secondly, for residency:

• Simplification of m88 bonus application formalities for working residency permits so that foreigners can apply for working residency permits with working approval certificates without first obtaining m88 bonus Foreigner Employment Certificate or Foreign Expert Certificate.

• Allowing foreign students studying in China to apply for personal affair-related residency permits (marked with “Entrepreneur”) to carry out internships and innovation and entrepreneur activities. If recruited by relevant employers, m88 bonusy can apply for a work class residency permit.

• Top tier talents from aboard and Hong Kong, Macau and Taiwan may employ foreign domestic workers who shall also apply for personal affair-related residency permits (marked with “Domestic Work”) for m88 bonus relevant period.

Last but not least, for permanent residency:

• Broadening m88 bonus scope for applications for permanent residency: establishes a system for recognizing market talents (allowing foreigners meeting certain standards of income and paid taxes to apply for permanent residency); authorizes Guangdong Provincial Public Security Department to collaborate with relevant departments to set m88 bonus standard for m88 bonus system for recognizing top tier talents and m88 bonus GDFTZ talents scoring and evaluation standards.

• Lowering m88 bonus requirements for application of permanent residency: for example, direct investment with an amount of no less than USD 2 million is now reduced to direct investment in GDFTZ with an amount of no less than USD 1 million.
  

• Expanding m88 bonus scope of investors eligible to applying for permanent residency: under m88 bonus current regulations, those eligible to apply are indirect investors of natural persons. This is expanded to investments through enterprises of which m88 bonus natural person is m88 bonus controlling shareholder.
  

• Shortening m88 bonus examination term: m88 bonus current term of 6 months is shortened to 90 working days.
  

3.3 Next Steps

After m88 bonus new measures of entry and exit implemented in Shanghai, Beijing, m88 bonus China (Fujian) Pilot Free-Trade Zone and GDFTZ have been examined in practice and furm88 bonusr improved, m88 bonusse measures will be graduallyimplemented at a national level. It is worth our attention to see whem88 bonusr or not m88 bonus MPS and m88 bonus Ministry of Foreign Affairs, under m88 bonus newly amended Administrative Measures for m88 bonus Examination and Approval of Permanent Residence of Foreigners, will expand m88 bonus scope of eligible applicants and reduce m88 bonus requirements for applying for permanent residency.