Circular on Issues Relevant to the Examination, Approval and Administration of Foreign-invested Projects for Sales Effected over the Internet and by Vending Machines

1. Internet Sales

(1) Internet sales are the extension of an enterprise's sales onto the Internet, and lawfully approved and registered foreign-invested production-type enterprises and commercial enterprises may directly engage in internet sales business.

(2) An application for the establishment of a foreign-invested enterprise specialising in internet sales shall be submitted to the competent provincial level commerce department for approval, and the competent provincial level commerce authority shall conduct a stringent examination and approval procedure in accordance with the Measures for the Administration of Foreign Investment in the Commercial Sector and other relevant laws and regulations. In provinces where the commerce departments have yet to be merged, the competent provincial level foreign investment department shall seek the opinion of the domestic trade administrative department at the same level.

(3) If a foreign-invested enterprise wishes to use its own internet platform to provide internet services for other transaction parties, it shall apply for a value-added telecommunications service permit to the Ministry of Industry and Information Technology. If an enterprise wishes to use its own internet platform to directly engage in the sale of goods, it shall carry out record filing procedures with the telecommunications administrative department.

(4) When a foreign-invested enterprise engages in internet sales and relevant services, it shall post its business licence in a prominent location on the main page of its website or the web page on which it engages in business activities. If an enterprise deals in goods such as refined oil products, crude oil, books, newspapers, periodicals, pharmaceuticals, etc. it shall additionally post the information appearing on its approval certificate for such operations and a clear photograph thereof or an electronic link thereto.

(5) A foreign-invested enterprise that engages in internet sales shall establish a reasonable system for the return and exchange of goods, keep sales records and stringently protect the personal privacy and trade secrets of consumers.

(6) A foreign-invested enterprise that engages in internet sales shall comply with laws, regulations and rules such as the Law on the Protection of the Rights and Interests of Consumers and the Product Quality Law, and may not trade on the Internet in goods and services, the trading in which is prohibited by laws and regulations.

(7) In accordance with relevant laws, if the product to be sold or the service to be provided by a foreign-invested enterprise over the Internet requires approval before registration, approval procedures shall be carried out with the relevant state department before applying for registration, and then business registration procedures shall be carried out.

2. Vending Machine Sales

(1) An application for the establishment of a foreign-invested commercial enterprise that sells goods by vending machine or for an existing enterprise to add the business of selling goods by vending machine shall be submitted to the competent provincial level commerce department for examination and approval. The competent provincial level foreign investment department shall seek the opinion of the domestic trade administrative department at the same level, and conduct a stringent examination and approval procedure in accordance with the Measures for the Administration of Foreign Investment in the Commercial Sector and laws and regulations pertaining to hygiene, food and drug regulation, etc.

(2) An enterprise that engages in sales by vending machine shall indicate its name, address, telephone number and means of lodging complaints in a prominent location on its vending machines.

(3) An enterprise that engages in sales by vending machine shall establish vending machine operation, merchandise quality management and dispute resolution mechanisms that have a clear model.

(4) An enterprise that operates vending machines shall establish a sales product data-keeping mechanism, and its vending machines shall automatically keep previous sales records.

(5) An enterprise that engages in sales by vending machine shall comply with laws such as the Law on the Protection of the Protection of the Rights and Interests of Consumers and the Product Quality Law and related regulations and rules.