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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref :EIC 631/2/9
 EIC 631/22/1

13 August 2008

Dear Sirs,

Commercial Information Circular No. 418/2008

The Mainland of China : "Guidance Notes on Restructure on the Spot
without Production Halts of Processing Trade Enterprises with Supplied Materials"

Eleven departments including the Department of Foreign Trade and Economic Cooperation of Guangdong Province issued on 5 August 2008 the"Guidance Notes on Restructure on the Spot without Production Halts of Enterprises Engaged in Processing Trade with Supplied Materials"("Guidance Notes") to support and encourage enterprises engaged in processing trade with supplied material to become foreign invested enterprises or other types of enterprises with the status of independent legal persons. The Guidance Notes took effect from the date of its issuance.

  1. The major points of the "Guidance Notes" included:

  1. The basic procedures for applying for "restructure" on spot;

  2. For enterprises which plan to restructure at the same registered address, it is allowed for the two enterprises before and after restructure and with different name and nature to proceed with the relevant procedures within six months;

  3. During the period as specified in the Guidance Notes, the customs will allow the newly established foreign invested enterprises and the original factories engaged in processing trade with supplied materials to proceed with the customs clearance for import and export concurrently. For non-priced equipments supplied by foreign investors and bonded materials under processing trade meeting the relevant requirements and transferred directly to the foreign invested enterprises (or other types of enterprises), the counting of the supervision period for those equipments can be continued;

  4. The categorization of enterprises for the processing trade enterprises with supplied materials assessed by the customs and production capacity verified by the departments in charge of foreign trade and economic cooperation before the restructure can be maintained after verification by the customs and the departments in charge of foreign trade and economic cooperation, if there is no substantial change in basic condition after restructure;

  5. The treatment regarding environmental protection and fire safety qualifications obtained by the original factories engaged in processing trade with supplied materials after restructure; and

  6. The restructured enterprises should follow all cancellation procedures for the factories engaged in processing trade with supplied materials within six months upon the approval of its establishment,etc.

  1. The "Guidance Notes" are attached at Annex (pdf format) for reference.

ENQUIRIES

  1. If you have any questions on the content of this circular, please contact Ms. Eugenia CHAN at 2398 5444.

 Yours faithfully,

 

(Miss Crystal YAN)
for Director-General of Trade and Industry