Member Article

The State Council published the Decision of the State Council on the Third Batch of Abolished and Adjusted Administrative Examination and Approval Items on 19 May 2004. The Decision, which entered into effect on the date of publication, revises the administrative approval procedures for 470 items: for 385 items the administrative approval procedure is abolished entirely, for 39 items it is replaced by a self- regulatory system and for 46 items the required level of the approval authority is lowered. Representative office approval The Decision abolishes the approval procedures for the establishment of certain types of representative offices. If a representative office is established by a railroad shipping company, foreign trade company, manufacturer, shipping agent, contractor, consulting firm, advertising company, investment company, leasing company, or other economic and trade organisation, the applicant company can directly proceed to the State Administration of Industry and Commerce or its designated local bureau to register the representative office. These companies will no longer be required to appoint a local sponsor and apply for approval to the Ministry of Commerce or its local bureau. The approval procedures for the establishment of representative offices of financial institutions, insurance companies, maritime, air or road transportation companies, maritime agents, etc. have been retained and foreign companies in these sectors will continue to be required to file applications for approval to the approval authority for their respective industry sector.