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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.
China Cancels Import Duties for Major Technical Equipment
With a view to boost domestic demand and promote industrial upgradation across the country, China’s Ministry of Finance, together with three other central departments, released the “Circular on Adjusting the Catalogs Relating to Import Duties for Major Technical Equipment (Caiguanshui [2013] No.14, hereinafter referred to as ‘Circular’)” on March 25, 2013, which scraps import duties and import-related value-added taxes on a range of technical equipment from April 1, 2013.
Cities Across China Tighten Control Over Real Estate Market
In an effort to rein in the country’s soaring property prices, China’s State Council released the “Circular on Effectively Regulating the Real Estate Market (guobanfa [2013] No.17, hereinafter referred to as ‘Circular’)’ on March 1, 2013. The Circular has rolled out an array of property cooling measures, including a 20 percent capital gains tax on property sales in cities where housing prices are believed to be rising too quickly.