Foreign Investment in Freight Forwarding Agent Business

Foreign-invested international freight forwarding enterprises refers to foreign investors in joint ventures, sino-foreign cooperation, and those established in the form of wholly foreign-owned import and export cargo for acceptance of consignee or consignor for commission, in the client's own name or in name of the principals for international cargo transportation and related services and receive remuneration for their services.
 
1.  Approval Authority:-

(1)   The establishment of foreign-invested international express business of international freight forwarding company must be approved by the Ministry of Commerce and Management ;
(2)  The establishment of foreign investment in other business enterprises in international freight forwarding must be approved by the provinces, autonomous regions, municipalities, separately cities and Xinjiang Production and Construction Corps (hereinafter referred to as the provincial commerce authorities) which is responsible for the approval and management.

2.   The minimum registered capital requirements:
   ( A ) For establishment of foreign-funded international freight forwarding enterprise, the minimum registered capital is USD $1,000,000. Since 11 December 2005 onwards, the minimum registered capital is required to implement with national treatment.


3.  Scope of Business:  The approved foreign-funded international freight forwarding enterprise may operate some or all of the following activities:-

   (1)   Booking (charter, charter flights, package module), shipping, warehousing, packaging ;
   (2)   Goods, supervision of loading and unloading, container consolidation, distribution, transit and related short-distance transport services ;
   (3)   Acting declaration, inspection, inspection, insurance ;
   (4)   Versions and related documents, paying freight, clearing and delivery charges ;
   (5)   International exhibits, personal items and goods in transit ;
   (6)   International multimodal transport, ( including LCL ) ;
   (7)   International courier ( not including private letters and official documents above the county level party and government organs delivery service ) ;
   (8)   Advisory and other international freight forwarding business.


4.  Other provisions:-

  • (1)  For foreign-funded international freight forwarding enterprise that has officially opened for one year and with the registered capital has been paid, may apply in the country elsewhere places to set up branches.     The business scope of these branches shall, as its head office, within the scope of its operation. The civil liability commitment of the branch will be bored by the corporation.

 

  • (2)  Foreign-funded international freight forwarding enterprise which engaged in every establishment of an international freight forwarding business, branch offices should at least, increase the registered capital of RMB 500,000.   If its registered capital has exceeded the minimum amount, the excess can be used as setting up a company to increase capital.

 

  • (3)  For those that may apply for establishing a branch, it shall, at first, go to the provincial commerce department to apply for the head office the provincial commerce department, obtain the approval of the provincial commerce department.   If the branch is located after concurring approval, according to the provisions of Article 3 and other laws and regulations of foreign investment over the provincial commerce department that has the approval authority, provincial master authorities should, at the first instance, establish all the application materials and the branch is located commerce authorities that has agreed on the letter of advice Ministry of Commerce, Ministry of Commerce for approval.