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China to Adopt a Simplified Merger Review Process
Over the last few years, delays and uncertainties have arisen in many merger control cases in China mainly due to the lack of a simplified merger review process. Therefore, it has become urgent and necessary for China to adopt a simplified procedure to review its merger cases. In the first quarter of 2013, China’s Ministry of Commerce (MOC) cleared 45 mergers unconditionally, a 24 percent decline compared with the mergers cleared in the last quarter of 2012.
MOF, SAT Interview on China Tax Reforms
Newly appointed Minister of the Ministry of Finance (MOF) Lou Jiwei and Director of the State Administration of Taxation (SAT) Wang Jun were interviewed by the official central media of China on April 16 concerning the further development of the pilot reforms on the value-added tax (VAT) in lieu of business tax (BT) and how to deepen the reforms in the financial and tax systems. The Chinese State Council previously announced its plans to have the current VAT pilot reforms, which currently only affect certain trial cities, to expand nationwide starting August 1, 2013.
China Releases Administrative Measures for Labor Dispatching Licenses
China’s National People’s Congress adopted the “Decision on Revising the Labor Contract Law of the People’s Republic of China (Order No.73 of the PRC President)” on December 28, 2012, which provides that no entities or individuals are allowed to engage in the labor dispatching business without an administrative license, and that applications for such licenses shall be filed with the relevant labor authorities.
China Deepens Paperless Customs Clearance Pilot Reform
With a view to reduce administrative burdens on importers and exporters, as well as expedite customs clearance, China’s General Administrative of Customs (GAC) introduced the “Paperless Customs Clearance Pilot Reform” on August 1 last year, which allows customs declaration information to be stored and transferred through computers and other electronic media, and be automatically reviewed by customs.
Consolidating Regional Employees onto the Payroll of a Single Office
An issue that regularly crops up in China concerns the subject of foreign-invested businesses in China expanding their employee base to include staff working in other cities remotely from the main China legal entity.
China Releases Interpretations on Resolving Labor Disputes
China’s National People’s Congress adopted the “Decision on Revising the Labor Contract Law of the People’s Republic of China” on December 28, 2012, which tightens loopholes on hiring dispatched workers and offers better protection for such workers. However, the revised law fails to provide clear and practical guidance over some common issues arising out of labor disputes. In response, China’s Supreme People’s Court issued two interpretations to deal with labor disputes in January this year. Detailed information can be found below.
China Steps Up Efforts to Protect Personal Information
In recent years, the leaking of private information to third-parties has aroused nationwide concern in China. It has been reported that organizations such as Internet companies and telecommunications operators have been selling their clients’ personal information for profit, contributing to the plethora of junk mails and spam messages that frustrate users on a daily basis.
China’s Grass-Root Courts to Handle Patent Dispute Cases
China’s Supreme People’s Court released the “Decision on Revising Several Provisions Concerning the Application of Law in Hearing Patent Dispute Cases (hereinafter referred to as the ‘Decision’)” on April 14, which states that the Supreme People’s Court may, depending on actual circumstances, designate grass-roots people’s courts to exercise jurisdiction over first-instance trials of patent dispute cases. The Decision came to effect on April 15, 2013.
China Releases Interpretation on Tariff Misclassification
In China, importers and exporters are required to make a complete and accurate declaration of goods through the customs authorities within a designated time, including the correct Harmonized System (HS) code. The customs authorities will then review such declarations and make sure the correct HS codes have been declared. In practice, tariff mis-classification may lead to the seizure of goods, interruptions in the supply chain, monetary fines, or even criminal penalties.
Shenzhen Releases Measures on Special Fund Management for Qianhai
The Shenzhen Municipal Government released the “Measures on Special Funds Management for the Pilot Development of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (shencaijian [2013] No.28, hereinafter referred to as the ‘Measures’)” on March 28, which specifies that the Chinese central government and Shenzhen local government will jointly allocate special funds to support the development of four major industries in Qianhai.
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