Ministry of Foreign Trade and Economic Cooperation and State Administration of Foreign Exchange, Joint Annual Inspection of Overseas Investments Tentative Measures

Promulgated: October 31 2002
Effective: January 1 2003
Interpreting authority: Ministry of Foreign Trade and Economic Cooperation (MOFTEC)
Applicability: "Overseas enterprises" is defined as enterprises invested in and established abroad (excluding finance enterprises) by a Chinese enterprise legal person (Article 4). Annual inspection of enterprises established by Hong Kong, Macao and Taiwan investors shall, mutatis mutandis, be carried out in accordance with these Measures (Article 22).

Main contents: MOFTEC and the State Administration of Foreign Exchange organize and oversee joint annual inspections (Article 2). Local branches of these two ministries perform the actual inspections between April 1 and June 15 each year (Articles 5 and 6). The inspection content includes: the general status of the overseas investments; an assessment of the overseas enterprise by foreign offices of State trade agencies, and; an assessment of compliance with regulations on overseas investments (Article 7).
Overseas enterprises that receive an inspection result of "Grade One" may enjoy preferential State policies on foreign exchange, customs, taxation and travelling of personnel (Article 17).