Ministry of Foreign Trade and Economic Cooperation, Administration of Foreign-funded International Freight Forwarding Agencies Provisions

Promulgated: December 19 2001
Effective: January 1 2002
Applicability: For the purposes of these Provisions, "foreign-funded international freight forwarding agencies" means a Sino-foreign equity or cooperative joint venture or wholly foreign-owned enterprise that handles, at fee charges, international freight transportation and related businesses for consignors and consignees of exports and imports in its own name or in the name of the consignor or consignee (Article 2).

Main contents: As an interim requirement, a foreign-funded international freight forwarding agency in the form of an equity or cooperative joint venture shall be at least 50% owned by the Chinese party (Article 4). The largest foreign shareholder in such a joint venture must have a record of at least three years of international freight forwarding agency business (Article 5). A shipping terminal, port or airport enterprise shall not be a party to such a joint venture if its participation would give rise to unfair competition (Article 6). A foreign-funded international freight forwarding agency shall have at least US$1 million in registered capital (Article 8). If it establishes branches in different places in China, which is permitted after one year of full operation, an additional US$120,000 shall be injected into the registered capital for each branch (Article 12). Its operation term shall be no longer than 20 years under normal circumstances (Article 11).
Related legislation: PRC, Administration of International Freight Agency Business Provisions, Jun 6 1995
Repealed legislation: Examination and Approval of Foreign Investment International Freight Agencies Provisions, Sep 9 1996