National Development and Reform Commission, Ministry of Commerce, Ministry of Public Security, Ministry of Railways, Ministry of Communications, General Administration of Customs, State Administration of Taxation, Civil Aviation Administration of China and State Administration for Industry and Commerce, Promoting the Development of the Modern Logistics Industry in China Opinion

Issued: August 5 2004
Applicability: "Logistics enterprises" refers to economic organizations having the necessary means of transport and facilities for storage and warehousing under its possession or on hire, engaged in at least two types of transportation (or transportation agency) and warehousing businesses, capable of providing such integrated services as transport, agency, storage and warehousing, loading and unloading, processing, assembling and distribution, equipped with information management systems commensurate with their own businesses, registered with the administrative department for industry and commerce, implementing independent accounting, bearing their own profits and losses, and assuming civil liability on its own account (Section Four).

Main contents: The Opinion sets forth policies to accelerate the development of the modern logistics industry. When handling industry and commerce registration for logistics enterprises, all preliminary examination and approval requirements shall be cancelled, except for those stipulated in state laws, administrative regulations and State Council decisions. For example, administrative examination and approval for engaging in domestic freight forwarding by railways, by sea and by combined transportation shall be cancelled. Examination and approval for business qualifications for international freight forwarding agencies shall be cancelled. Reform shall be carried out on the examination and approval of sales agencies for freight forwarding by air. Tax base for the calculation and levy of business tax on logistics enterprises shall be reasonably determined. Unified payment of income tax is permitted for logistics enterprises that meet the requirements. Introduction of a competition mechanism shall be accelerated and administration of charges strengthened (Section One). Industrial and commercial enterprises are encouraged to progressively separate such logistics service businesses as procurement of raw materials, transport, and storage and warehousing, by engaging professional logistics enterprises. Financing channels shall be actively broadened and opening up of the logistics market actively promoted. Integration of logistics facilities and construction of public and regional logistics centres shall be accelerated, and customs clearance procedures simplified (Section Two).