Our previous memo (Ref No 2007/171 dated 24 July 2007) informed members that the Ministry of Commerce and the General Administration of Customs issued [Public Notice (2007) No. 44] announcing the Catalogue of Restricted Commodities on Processing Trade. Article 5 of the Notice states that in the eastern region, enterprises which do not possess foreign trade rights before 23 July 2007, their application for conducting processing trade activities of products under the restricted category will be rejected. However, enterprises without foreign trade rights but have already undertaken processing activities before 23 July 2007, if they register an “intention to transform” with the local commerce department before 23 October 2007, they will be exempted from Article 5.  Enterprises which have changed their names due to corporate restructuring but no changes in equity and legal representatives also will not be affected by article 5.

Members who are now engaging in processing trade activities and intend to transform into foreign-invested enterprises in near future, please be reminded to register “an intention to transform” with the local commerce department before 23 October 2007 in order to retain their eligibility to operate processing trade activities involving products under the restricted category.

For details on application procedures and required documents, please visit the following websites:

(1)         Notice on Registration by Processing Trade Enterprises(Yuewaijingmao [2007]No.109)

 
        http://www.gddoftec.gov.cn/ggl/index.asp?dt=441

(2)         Notice on Registration by Enterprises Engaging in Processing with Supplied Materials (Shenmaogongjia [2007]No.12)

http://www.szbti.gov.cn/bulletin_temp/b20070813002.html