“Haworth & Lexon Law Newsletter” is issued every month, mainly introducing, with necessary comments, the legal changes in the fields of Corporate Laws, Securities, Foreign Investment, Intellectual Property Rights, International Trade etc. None of the comments are the legal opinion of the firm and the firm does not assume any legal liability for such comments. Should you have interest in any subject or have any questions, please feel free to contact the firm. You will receive satisfactory feedback from the professional attorneys of our firm.
Table of Content
★ Haworth & Lexon is going to provide full-range services in trademark
★ Measures for Administration of Foreign Investment in Lease Industry
★ Latest Laws and Regulations:
1 Notice on Several Issues of Registration & Administration of International Freight and Forwarding Companies
1 Notice on Several Issues of Administration of Foreign Exchange in Merger &Acquisition with Foreign Investment
1 Interim Measures on Administration of Quality Warranty Deposit for Construction Projects
1 Interim Measures on Bidding & Tendering of Commodities for Construction Projects
1 Measures on Administration of Circulation of
Haworth & Lexon is going to provide full-range services in trademark
Haworth & Lexon is going to provide full-range services in trademark as of 2005. We will provide clients both at home and abroad the following services:
1. Inquiry, Registration, Opposition and Review of trademark, including trademark inquiry; application for registration of various trademarks; trademark renewal, assignment, licensing and modification; trademark review, opposition, cancellation, dispute settlement and other relevant issues;
2. Acting as legal counsel in trademark, including legal counseling in trademark; planning for trademark application; legal counsel for trademark users;
3. Handling trademark disputes, including investigation on trademark infringement; agency service to file the trademark with the customs; agency service to complain to and request governmental authorities to impose penalties; attorney service to institute proceedings and other legal issues in relation to trademark.
Measures for Administration of Foreign Investment
in Lease Industry
On
The Measures firstly state that foreign companies, enterprises or other economic institutions may invest in the lease industry or financial lease industry in the forms of Equity Joint Ventures, Contractual Joint Ventures, or WOFEs. A foreign-invested lease enterprise can be a limited liability company or a company limited by shares, and the enterprise may conduct financial lease business by means of direct lease, sub-lease, lease-back, leverage lease, trust lease, joint lease etc. The Ministry of Commerce is the authority in charge of foreign-invested lease enterprises and is the authority to approve and administer foreign invested lease enterprises.
Secondly, the Measures define the scope of the property for lease, which include such chattels as manufacturing equipment, communication equipment, medical equipment, scientific research equipment, inspection and testing equipment, engineering & mechanical equipment and office equipment, such transportation vehicles as planes, cars and ships, and such intangible property as software and technology attached to the chattels and transportation vehicles mentioned above. However, the value of such attached intangible property shall not exceed 50% of the total value of the property for lease.
Thirdly, the Measures list the prerequisites for establishing foreign-invested lease companies or financial leasing companies. The registered capital of a foreign-invested financial lease company shall not be less than USD 10 million, and the maximum business term is 30 years if the enterprise is a limited liability company, and the enterprise shall have professional employees and the senior management shall have the corresponding qualifications and shall have no less than 3 years’ practice experience.
Fourthly, the Measures also stipulate the business that foreign invested lease companies or financial lease companies can do. Foreign invested lease companies can be engaged in the following business: leasing, purchasing domestic or overseas property to be leased, treatment and maintenance of the residual value of leased property. The business of a foreign-invested financial lease company may include financial leasing, leasing, purchasing domestic or overseas property to be leased, treatment and maintenance of the residual value of leased property, leasing transaction consultancy and guaranty.
Fifthly, the Measures also apply to the establishment, in the mainland of PRC, of lease companies or financial lease companies by companies, enterprises and economic institutions from HK,
Obviously, Measures for Administration of Foreign Investment in Lease Industry is a detailed guidance for foreign investment in the lease industry in
Notice on several Issues of Registration & Administration of International Freight and Forwarding Companies
After the approval for the qualification of international freight and forwarding companies was abolished by Decision of the State Council on Abolishment and Adjustment of the Third Group of Administrative Approval Projects, the Ministry of Commerce and the State Administration for Industry and Commerce issued Notice on Several Issues of Registration and Administration of International Freight and Forwarding Companies on Feb. 1, 2005, in order to reinforce the supervision and administration and to ensure the development of China’s international freight and forwarding industry.
According to the Notice, when a company applies to be engaged in the business of international freight and forwarding, the authorities of commerce will no longer examine the qualification of the company. Instead, the applicant may just register with the local administration for industry and commerce for the business scope, without which the company shall not conduct such business.
In order to keep the balance of international payments and to guarantee the regular flow of cross-border capital, the State Administration of Foreign Exchange issued Notice on Several Issues of Administration of Foreign Exchange in Merger & Acquisition with Foreign Investment on
According to the Notice, the approval by the administration for foreign exchange is required if a cisborder resident intends to sell his cisborder capital or stock right for the stock certificate or other property rights of a foreign company. Without the approval, the resident shall not sell his cisborder capital or stock rights as the consideration for the stock rights or other property rights of a foreign company.
For a company established by a cisborder resident whose shares have been purchased by foreign companies so that it has become a foreign-invested company that has been registered with the administration for foreign exchange, the company shall be specially supervised in capital verification enquiry, registration of the foreign exchange from share transfer, shareholders’ loan registration, profit remittance, profit reinvestment, and equity transfer.
Interim Measures on Administration of Quality
Warranty Deposit for Construction Projects
The Ministry of Construction and the Ministry of Finance issued Interim Measures on Administration of Quality Warranty Deposit for Construction Projects on
According to the Interim Measures, the Quality Warranty Deposit refers to the funds that the contract awarder and the contractor agree on under the contracting contract to reserve from the contract price to ensure the contractor shall repair the defects occurring during the defects liability period. The defects liability period may be 6 months, 12 months or 24 months, subject to the provisions of the contract. For defects caused by other parties than the contractor, the contract awarder shall take the responsibility of maintenance, and the contractor shall not be liable for the maintenance costs, and therefore the contract awarder shall not deduct from the deposit.
Interim Measures on Bidding & Tendering of
Commodities for Construction Projects
The National Development and Reform Commission, the Ministry of Construction, the Ministry of Railway, the Ministry of Communications, the Ministry of Information Industry, the Ministry of Water Resources and the Civil Aviation Administration of China jointly issued Interim Measures on Bidding & Tendering of Commodities for Construction Projects which will take effect as of March 1, 2005 to regulate bidding and tendering for construction projects, to protect national and social interest, and to guarantee construction quality and efficiency.
The Measures apply to the bidding and tendering of commodities for construction projects for which bidding is required, and provide for detailed regulations on bidding, tendering, bid opening, bid evaluation, awarding and other relevant issues.
Measures on Administration of Circulation of Farming
Land Contracting Right
The Ministry of Agriculture promulgated on Jan. 19, 2005 Measures on Administration of Circulation of Farming Land Contracting Right, which shall come into force as of March 1, 2005.
According to the Measures, the circulation of the farming land contracting right shall not change the agricultural purpose of the contracted land, and the circulation term shall not exceed the remaining period of the land contracting contract. Furthermore, the circulation shall not impair the interest of the relevant parties or the collective economic organization. The contracting right may be circulated by means of sub-contracting, lease, exchange, assignment or other means in line with state laws or regulations. Moreover, the contractor shall conclude a written contract with the assignee on the circulation of the land-contracting right.
