Regulations to help Guangdong trade exporters
September 10, 2008 | BY
clpstaff &clp articlesThe Guangdong local government issued a new regulation on August 5 in a bid to ease the legal procedures for those processing trade exporters interested…
The Guangdong local government issued a new regulation on August 5 in a bid to ease the legal procedures for those processing trade exporters interested in selling products in the mainland.
Processing trade exporters can only sell their products in the mainland after they become a foreign invested enterprise (FIE), a procedure that requires a six-month freeze of operations while the process is completed.
Operational Guidelines for the Transformation without Ceasing Production at the Original Place of Enterprises that Process Supplied Materials now allows processing trade exporters to become FIEs in less than six months.
“The government's move is another step forward to opening up the market,” says Yao Aifeng, lawyer at Mayer Brown JSM.
Yao says Guangdong is leading the way in China, becoming the first province to open its markets. It also has the highest number of processing trade enterprises in China and was the first province that introduced a processing trade regime which has since become outdated.
“We expect other provinces may follow,” Yao adds.
The new regulation complements the promise made by Guangdong governor Huang Huahua earlier this month when he said that the government would relax rules to bolster the province's economy.
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