8 Things That Matter When Hiring A Business Lawyer

Hiring a lawyer may be one of the most important decisions your business makes. The skill and attentiveness of your lawyer will affect everything from the strength of your company’s contracts to how well you’ll be able to defend your company from employee claims.

“If you hire the wrong lawyer for your business, there are so many horrible things that can happen,” says West Palm Beach, Florida business lawyer and mediator Jonathan Gilbert. “It’s like losing the game before you even start. You should never let that happen.”

Here are eight things to consider when hiring a business lawyer:

1. Experience. Experience matters with business law. Like with almost anything, lawyers improve with repetition. A lawyer who has written hundreds of contracts will likely write a more solid contract than a lawyer who is drafting a contract for their first time.
2. Relevance. Make sure the lawyer actually practices business law and that it’s a substantial part of her practice. You probably want to avoid hiring a jack-of-all-trades for your business or using your divorce lawyer to review your contract “just this one time.”
3. Results. Ask the lawyer about their past results. In most states, lawyers can’t advertise results. But they can discuss past performance if you ask. With business law, as much as with anything else, a lawyer’s past performance is relevant to their future success.
4. References. Ask the lawyer for references. No matter how much the lawyer toots their own horn, it’s even better when someone else toots their horn for them. Try to get references from people you actually know and who work in your line of business.
5. Communication. There’s nothing more important than being able to communicate effectively with your lawyer. You need to be able to speak openly about your business. And you must be able to reach your lawyer — by phone, email, etc. — when you need to.
6. Fees. Make sure you’ll be able to pay for all of the legal services you need. Legal fees vary widely, with some business lawyers charging north of $1,000 per hour. If that’s too steep for you, find someone more affordable, although too cheap should raise red flags.
7. Personality. You must feel comfortable talking with your lawyer. Your personalities can’t clash. When you meet a business lawyer for the first time, take the conversation beyond the legal topic at hand. See how well you get along. If it’s not a good fit, move on.
8. Research. Do your homework on your business lawyer before signing the engagement letter. Look up the lawyer’s Avvo rating, see if they’re listed on SuperLawyers, and make sure they don’t have any disciplinary history with their state bar association.

“One of the most important things you need in a business lawyer is alignment with your level of risk aversion,” says Josh King, General Counsel and VP/Business Development at lawyer rating website Avvo. “Attorneys are trained issue spotters, but every businessperson knows that all issues aren’t created equal. Some legal risks matter, and some don’t. A good lawyer for your business will focus their energies on avoiding the risks that matter, and help power you toward the opportunities that lie on the other side of many more minor legal risks.”

Once you’ve considered these tips and are ready to start meeting prospective lawyers for your business, make sure you shop around, ask lots of questions, and, just in case, know how to fire your lawyer if things don’t work out the way you expected.

Is "Buy It Now" the Reserve Price on eBay?

On eBay, a reserve price is the minimum price the seller will take for an item, while a Buy It Now price is a set price you can buy an item for. A listing with a Buy It Now option does not mean that the bidding has a reserve price, though the two features can be used together in one listing.




Reserve Price


An eBay reserve price is the amount that bidding must reach for the item to actually sell. Bids will show "Reserve Not Met" until the bidding for the reserve is met. If the bidding does not reach the seller's reserve price, the seller does not have to sell to the top bidder. Some sellers will go on to send a Second Chance Offer to the top bidder, which offers the item to the bidder for the price of the last highest displayed bid.

Buy It Now


The Buy It Now feature allows users to skip the waiting game that is bidding and buy the item directly for a set price. Some sellers will set items as "Buy It Now" with no bidding option, while others will add it as an option to an auction listing. If an auction features a Buy It Now option, that option is active only until bidding starts.

Used Together


Auctions can have both a Buy It Now price and a reserve price, though the reserve price and the Buy It Now price do not have to be the same. According to eBay's help documents, the Buy It Now button will remain until the reserve price is met. Once the reserve price is met, the Buy It Now option is removed from the listing, and the auction will continue with bidding as normal.

Reserve Price Policy


EBay has certain policies for auctions that use a reserve price, designed to protect buyers from predatory practices. The seller does not have to disclose the reserve price in the listing, though it is permissible to do so. The seller cannot say in the listing that the top bidder is required to buy the item if the reserve is not met; he can only offer a Second Chance Offer, which the top bidder is not required to accept. Sellers can lower the reserve price after bidding has started.

A welcome to China's first good Samaritan law

On Aug 1, Shenzhen will implement China's first good Samaritan law, technically called the Shenzhen Special Economic Zone Good Samaritans' Right Protection Regulation but more popularly nicknamed the "Good Person's Law". What does this have to do with President Xi Jinping's Chinese dream? In a word: "everything"!

In 700 Chinese characters, the Good Person's Law brings China back to some of its ancient core values, although — at this point — it is limited to upwards of 15 million people in one metropolis that ironically did not exist a generation ago.

I've asked many Chinese people, especially those born in the '90s, what the Chinese Dream means to them. Because Chinese people are generally patriotic, I expected them to define it along the lines that President Xi did: "realizing a prosperous and strong country, the rejuvenation of the nation and the well-being of the people".

So I was surprised that nearly all of those I asked cast the dream on personal terms such as an apartment, a car or an attractive significant other. It reminded me more of the American dream of one of our most maligned American Presidents, who presided over the early years of the Great Depression, Herbert Hoover. His campaign slogan was "a chicken in every pot and a car in every garage."

I believe that this materialistic view represents neither traditional values nor what China's new president had in mind. Starting with the humiliation suffered by China in the 1840s and for some of the 20th century, traditional bedrock values dating at least from the time of Confucius, such as being ready to help others in need and fighting for a just cause, have suffered severe erosion. It's one thing to see them on a daily basis on TV in historical dramas and quite another to observe them in practice today.

When I first came to China a decade ago, I was appalled at how aggressive and unyielding drivers were, the polar opposite to the many other countries in which I have lived or visited. At first I thought it was just because Chinese people lacked multigenerational experience driving cars, so they drove like they were rode Flying Pigeon bicycles a few years ago. But in retrospect, I see this more as a clear instance of the loss of traditional values.

I was also shocked how most Chinese people would not help those in need — so different from at home. But then, I understood after reading stories of Chinese judges finding those who came to the aid of others guilty of causing injuries to them, merely because, as in the most celebrated case, the judge concluded that nobody would do such a thing except out of guilt for causing that injury in the first place.

So looking at the situation in the best possible light, I concluded that while people might have wanted to assist those in need, they were afraid to do so. This was because they might themselves become the innocent victim in the course of coming to the assistance of someone in need.

I can empathize with them. As a foreigner, I think I am even more at risk if I were to do so. My heart actually feels pain to just walk on by.

The new Good Person's Law in Shenzhen has the potential to help rejuvenate the nation and the well-being of the people by promoting traditional Chinese values. The law frees good persons from worrying about their liability when coming to the assistance of those who appear to be in difficulty.

First, the law liberates good Samaritans from any legal responsibility for the condition of the person they assist, except in cases of gross negligence. And importantly, the law shifts the burden of proof from the helper, to where it should be: the person in need of assistance.

The law also provides significant punishment for those who falsely accuse those who come to their aid. This includes both fines and imprisonment.

As originally debated, there was discussion of the offer of cash or other rewards to good Samaritans. Unfortunately, this was not included, but the law does include legal aid.

While in the ocean of China's vast population, Shenzhen's few million people are just a drop in the bucket. I'll be rooting for the law to be a success and used as a model for a national law to help fulfill the Chinese Dream and build a more harmonious society at the same time.

China VAT Tax & Import Duties

Whether buying or selling products and services in China, it is important to consider the taxation system of the world’s fastest-growing economy. What is exempt from tax, what is not and how much products or services are taxed are all important factors. Import duties also play an important role, affecting the speed with which products cross borders.

VAT

• China began implementing VAT in 1984. In January 1994, the country began to enforce the Provisional Regulation of the People’s Republic of China (PRC) on Value Added Tax. This is the system active in China today. VAT is the major source of revenue for the Chinese government and is shared between central and local governments; 75 percent to central and 25 percent to local. Revenue from the value added tax came to 1.88 trillion Yuan RMB in 2009, up 3.8 percent from the year before.

VAT Tiers

• There are three different tiers that decide an item’s rate of VAT. For sales or import of goods and providing processing and repair services, the tax rate is 17 percent. For the sales or import of grain, edible oil, coal gas, natural gas, books, newspapers and magazines, the rate is 13 percent. All exported goods are set at a rate of 0 percent VAT.

VAT Exempt

• Some items are not affected by VAT, including equipment used for scientific research or educational purposes, imported materials and equipment given as a gift or grant by foreign governments or NGOs, contraceptive medicines and devices, items imported by organizations for the exclusive use of the disabled, materials imported for the relief of poverty, and antique books purchased from the public.

Taxpayers

• It states in the Provisional Regulation of the PRC on VAT that value-added tax is to be paid by businesses or individuals who sell merchandise or who provide processing, repairing or assembling services. Said businesses and individuals are also to be taxed on the importing of goods into the People’s Republic.

Import Duties

• Import duties are subject to the specific Harmonized System Code, or HS Code, of the product being imported, the country of origin and the destination. It is important to know the HS code of your product, as if it is wrong it could delay custom clearance. Each product has its own HS Code, although definitions can sometimes be vague. Any Chinese supplier should be able to help you with classification.

China's Customs & Import Duties

International trade involves the import and export of goods from one country to another. When you import goods from abroad, you will have to pay customs and import duties on them. Chinese law allows for the imposition of such customs and import duties on goods you export to the country. The Chinese duties may also be subject to the provisions of various international treaties.

Customs Duties

• Customs duties are a kind of entry and exit duty levied on goods entering and exiting a country. The Customs Law of the People's Republic of China specifies that Chinese customs authorities should levy a tax on goods imported into, and exported from, the country. The consignee who imports goods into China is responsible for paying the customs duties on imports, under Chinese law. For goods exported from the country, the Chinese consignor is responsible to pay the customs duties.

Anti-Dumping Import Duties

• The Chinese government has an anti-dumping law that defines dumping as the practice of exporting goods to China at a price that is lower than its normal value. If there is a concern that a foreign country is dumping its products into China, the authorities will conduct a preliminary investigation. If this preliminary investigation finds evidence of dumping, there will be a further investigation on the dumping margin and the extent of damage. The customs authorities will then levy an anti-dumping import tax on the products involved, which will not be higher than the dumping margin.

Anti-Subsidy Import Duties

• An anti-subsidy duty aims to nullify the cost advantage of an imported product due to a subsidy it may have received in the exporting country. The Chinese government's anti-subsidy regulations govern how to treat anti-subsidy duties on imports into the country. Under World Trade Organization regulations, a government cannot impose an anti-dumping duty and an anti-subsidy duty on the same product at the same time.

Import duty & taxes when importing into China

Overview

Import duty and taxes are due when importing goods into China whether by a private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. In addition to duty, imports are subject to consumption tax and sales tax (VAT).

Duty Rates

Duty rates in China vary from 0% to 100%, with an average duty rate of 12.47%. Some products can be imported free of duty, e.g. laptops and other electronic products.

Sales Tax
Goods imported into China are subject to VAT at a standard rate of 17%, or a reduced rate of 13% on certain products, calculated over the CIF value plus any applicable duty and consumption tax.

Minimum thresholds

Duty and VAT are only charged when together they account for more than RMB 50; otherwise the import is exempt from both.

Other taxes and customs fees

Consumption tax is imposed inter-alia on imports of alcohol, petrol, jewellery and cars. The relevant rates are between 1% and 45%. It is calculated over the CIF value plus any applicable duty.

Local Customs office and contacts

More information on import declaration procedures and import restrictions can be found at General Administration of Customs of the People’s Republic of China.

Investing In China: Hiring, Firing And Labor Law

One of China’s major attractions for foreign investors is its low labor costs. In the central provinces entry-level laborers can be hired for as little at US$60 per month and college graduates work for as little as US$150 per month, although labor costs in the more affluent coastal provinces are about three times as high. Furthermore, because there is a shortage of skilled labor and white collar management in the coastal provinces, additional incentives might be required to attract highly qualified employees (this is not so much of a problem in the central and western provinces). Employers can be recruited and hired directly in most cases, although there are many public and private employment agencies that will assist the foreign investor in recruiting qualified staff. In joint ventures, the Chinese partner is usually responsible for recruitment, although this is something that can be negotiated between the parties.

Employment law in China is in some ways more protective of employees than US labor law. Labor matters in China are generally governed by the P.R.C. Employment Law (although certain other national legislation also provides guidance). Where national law is silent, provincial and local laws apply, but in the event of a conflict between provincial/local laws and the Employment Law, the Employment Law prevails, much in the way as federal law trumps state law in the US.

Employment contracts are generally required and normally stipulate probation periods of no more than six months. A thirty-day advance notice and good cause are normally required in order to fire an employee after the expiration of the probation period (although employee incompetence and company business reverses considered good cause subject to certain restrictions). An employee can be immediately fired for serious misconduct.

The eight-hour workday and the forty-hour workweek are standard for blue collar employees, overtime pay is mandated by law, and there are legal limitations on how much overtime can be required. Paid leave is also required, although the required length varies according to local regulations (usually not exceeding two weeks per year). There are special protections on the type of labor that can be assigned to women and teenagers, and the minimum working age is 16. None of this should be unfamiliar to those familiar with prevailing US labor practices.

Nevertheless, Chinese labor law does include certain unique features that foreign investors should be aware of:

(1) In the event of a labor dispute, arbitration is required before the case can be taken to court.

(2) There are three funds to which both employer and employee must contribute:

1. Endowment Insurance (a kind of social welfare fund) – the employee contributes 5% of his salary, employer pays an amount equal to about one-fourth of the employee’s salary (amounts vary by locality).

2. Unemployment Insurance – the employee pays 1.0%, employer pays 2.0%.

3. Hospitalization Insurance – Employee pays 2.0%, employer pays 8.0 %.

In each of the foregoing cases, the employer deducts the employee portion from the employee’s paycheck, but must pay the employer’s portion out of its own pocket in addition to the employee’s regular wages. Also keep in mind that the foregoing amounts may vary somewhat according to locality. There are also certain funds that employers must contribute to, such as an employee labor union fund (generally about 2% of payroll).

A prospective foreign investor would do well to keep abreast of breaking developments in this area, because the law is rapidly evolving.

Procedures for Registration of Foreign-Funded Enterprises in China

I) Business Registration
1. Registration of foreign funded enterprise
Business registration of a foreign-funded enterprise involves two steps: one is the business name registration before the contract and the articles of association are approved, the other is the business operation registration after the contract and the articles of association are approved.
A. For business name registration, an enterprise shall submit the following documents:
a)Pre-examination and approval application of the name of the enterprise with the signature of all the investors. Application for registration signed by the person responsible for its establishment shall include the name and address of the corporation to be established, its business scope, registered capital/ capitalized capital, name of investor and invested capital amount;
b)Certificate of the representative/ deputy appointed by the investors;
c)Certificates for qualifications of the representative/deputy;
d)Certificates for qualification of all investors.
e)The certificates include other documents required by Administration Bureau for Industry and Commerce
B. For business operation registration, an enterprise shall submit the following documents within 30 days after received the approval;
a)Application for business licenses of foreign investment with the signature of legal representative;
b)One copy of approval document of the examination and approval organ;
c)The contract and articles of association;
d)Notice on pre-examination and approval of the name of the enterprise;
e)Investors' qualification certificate or natural person ID certificate. The documents refer to:
Chinese investors shall provide the business license/legal representative registration certificate of the social undertaking institution/ legal representative registration certificate of the social organization/certificate of private-owned non-enterprise institution copied and stamped as the qualification certificate; foreign investors' qualification certificate shall be notarized by the Public Notary of the investor-resided country (region) and verified by Chinese Embassy in the investor-resided country (region). In case the investor-resided country has no diplomatic relations with China, the certificates shall be notarized by the Public Notary of the third country that has diplomatic relations with China, then verified by Chinese embassy in the third country. The investors from Hong Kong, Macao and Taiwan shall provide the qualification and ID certificates notarized in these regions.
f)Copies of position and ID certificates of the directors, supervisors and managers;
g)Copies of appointment and ID certificates of the legal representative;
h)Residence location certificate;
i)For the projects with business scope governed in the state laws and administration decrees as well as the decisions of the State Council, which shall be approved before the registration, the investors shall submit related approval document or license copies or permission certificate;
j)The legal document shall be enclosed with Power of Attorney;
k)  Other related documents and certificates.
Above mentioned document shall be provided with one original copy except for otherwise stated.
In case the above mentioned documents are in foreign language, they shall be translated into Chinese stamped by Translation Company.
C. The branch and agency establishment registration of foreign funded enterprise
The registered foreign funded enterprise for establishing branches and agencies shall submit following documents and certificates:
a) Application for the branch and agency establishment registration signed by legal representative of the parent enterprise;
b) Articles of Association of the Company signed by legal representative of the parent enterprise;
c) The Appointment and ID Certificate of the person in charge of the branch provided by the parent enterprise;
d) Business license and duplicate of the parent enterprise (stamped by the parent enterprise)
e) Certificate of housing and site use for business operation;
f) For the projects with business scope governed under the state laws and administration decrees as well as the decisions of the State Council, which shall be approved before the registration, the investors shall submit related approval document or license copies or permission certificate;
g) Other related documents and certificates.
2. Registration for the establishment of permanent representative agency of enterprises from foreign countries and Taiwan, Hong Kong, Macao Regions
Enterprises from foreign countries and Taiwan, Hong Kong, Macao Regions and other economic entity applying for setting up permanent representative agency in Hunan may register in Hunan Provincial Administration Bureau for Industry and Commerce, with following documents and certificates submitted:.
a). Application for the agency registration signed by chairman of the board or managing director, with the content including foreign enterprise name, permanent agency name, business scope, duration, address, chief representative and staff;
b). Certificate for lawful operation provided by authority in the enterprise located country or region;
c). Enterprise status certificate;
d). Appointment document for the chief representative, deputy and employees;
e). ID card copies and 2 photos of the representative, deputy and employees;
f). Certificate of office address.
3. Production and operation registration of foreign enterprise in Chinese territory
After the production and operation project of foreign enterprise in Chinese territory approved by the examination and approval authority, the foreign enterprise shall register in administration bureau for industry and commerce within 30 days after the approval, with following documents and certificates submitted;
a). Application signed by the chairman of the board or managing director;
b). Approval document or certificate provided by the examination and approval authority;
c). Contract for engaging in the production activity;
d). Certificate for lawful business operation provided by authority in the enterprise located country and region;
e). Certificate of foreign enterprise financial status;
f). Power of attorney, resume and ID certificate for the person in charge of the project in China designated by the chairman of managing director of foreign enterprise;
g). Other related documents.
4. Registration modification, cancellation and annual examination of foreign funded enterprise
The main registration issues modification of foreign funded enterprise and its branches and agencies shall have modification application submitted to the original registration authority for approval.
The termination and expiry of foreign funded enterprise, approval certificate invalidity, contract termination approved by examination and approval authority, shall have application submitted to the original registration authority for cancellation.
Foreign-invested enterprise and its branches should receive annual exam between March 1st and June 30th every year according to the requirement of the company's registration organ.
II) Tax Registration
1. Foreign-funded enterprise with its branches or a foreign enterprise with its permanent representative office should register in the local tax authorities within 30 days after it obtains the business license. For tax registration, the foreign-funded enterprise or the foreign enterprise shall submit the business license, the national unified code certificate, the copies of contract and articles of association and the legal person ID card or passport. Then fill in two copies of the tax registration form (obtained in the taxation department or downloaded from Hunan state taxation webpage) and proceed to the taxation department to register. The tax authorities will issue to the enterprise the certificate of tax registration after they have verified these documents.
2. In case a foreign-funded enterprise and its branches or a foreign enterprise and its permanent office change its tax registration during the production and operation, it, with necessary documents, shall proceed to the tax authorities for making changes or cancellation in the tax registration in 30 days after the industrial and commercial administration has handled formality change or before it applies for taxation cancellation to the industrial and commercial administration.
III) Fiscal Registration
A foreign-funded enterprise should register in the local department of finance within 30 days after it obtains the business license by presenting following documents:
a) Approval certificate;
b) Business license;
c) the investment-amount certificate;
d) Contract and articles of association of the enterprise (duplicates);
e) Financial and accounting system of the enterprise adopted by the board of directors;
f) Effective qualification certificates of the enterprise's accounting personnel;
The department of finance will issue to the enterprise a fiscal registration certificate and its duplicates after the procedures have been duly completed.
The foreign-funded enterprise should submit their accounting statements on scheduled time to the financial department, and subject themselves to the supervision and management of the financial department.
If it divides, unites or sets a branch, the enterprise is required to register at the local administration of industry and commerce; and in 30 days, it still should submit to the local financial authority its registration documents, duplicates and copies to go through corresponding financial procedures. After dissolution and liquidation, it is required to submit to the local financial department its liquidation report, its original auditing report, duplicate and copy made by a Chinese CPA to cancel its fiscal registration, prior to cancellation of its business registration.

Foreign Trade Law of the People's Republic of China

The Foreign Trade Law of the People's Republic of China was amended and adopted at the eighth meeting of the Standing Committee of the Tenth National People's Congress on April 6, 2004. The amended Foreign Trade Law of the People's Republic of China is hereby promulgated for effect as of July 1, 2004.

Hu Jintao, President of the People's Republic of China

April 6, 2004

(Adopted at the seventh meeting of the Standing of the Eighth National People's Congress on May 12, 1994; amended at the eighth meeting of the Standing Committee of the Tenth National People's Congress on April 6, 2004.)

Table of Contents
Chapter I General Provisions
Chapter II Foreign Trade Business Operators
Chapter III The Import and Export of Goods and Technology
Chapter IV International Service Trade
Chapter V Foreign-trade-related Intellectual Property Protection
Chapter VI Foreign Trade Order
Chapter VII Foreign Trade Investigation
Chapter VIII Foreign Trade Relief
Chapter IX Foreign Trade Promotion
Chapter X Legal Liabilities
Chapter XI Supplementary Provisions

Chapter I General ProvisionsArticle 1 The present Law is enacted for the purpose of broadening the opening to the outside world, developing foreign trade, maintaining the order of foreign trade, protecting the lawful rights and interests of the foreign trade business operators, and promoting the healthy development of the socialist market economy.

Article 2 The present Law applies to foreign trade and the protection of foreign-trade-related intellectual property.
The term "foreign trade" as mentioned in the present law refers to the import and export of goods, technology, and the international trade of services.

Article 3 The administrative department of the State Council in charge of foreign trade shall take charge of the nationwide foreign trade according to the present Law.

Article 4 The state practices a uniform system of foreign trade, encourages the development of foreign trade, and maintains an order of fair and free foreign trade.

Article 5 The People's Republic of China promotes and develops foreign trade relations with other countries and regions, concludes or accedes to regional economic and trade agreements such as customs or tariff union agreements, free trade zone agreements, etc., and joins regional economic organizations according to the principle of equality and reciprocity.

Article 6 In the field of foreign trade, the People's Republic of China grants, according to the international treaties and agreements it concluded or acceded to, most-favored-nation treatment or national treatment to other contracting parties or members, or grants most-favored-nation treatment or national treatment to its counterparts according to the principle of mutual benefit and reciprocity.

Article 7 For any country or region that takes discriminatory banning, restriction or other acts against the People's Republic of China in terms of trade, the People's Republic of China shall be entitled to adopt, in accordance with the actual circumstances, corresponding measures against them.

Chapter II Foreign Trade Business OperatorsArticle 8 The term "foreign trade business operator" as mentioned in the present Law refers to any legal person, other organization, or individual, that has handled industrial and commercial registration or other formalities for business operation and is engaged in the foreign trade business activities according to the provisions of the present Law and other relevant laws and administrative regulations.

Article 9 Any foreign trade business operator that is engaged in the import and export of goods or technology shall be registered for archival purposes with the administrative department of foreign trade of the State Council or the institution entrusted thereby, unless it is otherwise provided for by any law, administrative regulation or the foreign trade department of the State Council. The specific measures for archival registration shall be formulated by the foreign trade department of the State Council. Where any foreign trade business operator that fails to file for archival registration according to relevant provisions, the customs may not handle the procedures of customs declarations and release of the import or export goods.

Article 10 Anyone who is engaged in international service trade shall abide by the present Law and other relevant laws and administrative regulations.

An entity that is engaged in the overseas contracting of engineering projects or overseas labor cooperation shall have lawfully obtained corresponding competence or qualifications. The specific measures shall be formulated by the State Council.

Article 11 The State may employ the administration of state-run trade to the import and export of some goods. The import and export of the goods subject to the administration of state-run trade can be managed by the authorized enterprises only, with the exception, however, of the goods, which is allowed by the state to be partially imported or exported by unauthorized enterprises. The catalogue of the goods subject to the management of state-run trade and that of authorized enterprises shall be determined, adjusted and published by the foreign trade department of the State Council in collaboration with other relevant departments.

Where anyone who imports or exports, as in violation of Paragraph 1 of the present article, any of the goods subject to the management of state-run trade, the customs may not release the goods.

Article 12 A foreign business operator may accept the entrustment of other people and handle foreign trade businesses on their behalf within its scope of business.

Article 13 A foreign trade business operator shall submit to the relevant departments the documents and materials relating to its foreign trade activities in accordance to the provisions of the foreign trade department of the State Council and those of other relevant departments of the State Council. And the relevant departments shall keep the business secrets of the providers to themselves.

Chapter III The Import and Export of Goods and Technology

Article 14 The state allows the free import and export of goods and technology, unless it is otherwise provided for by any law or administrative regulation.

Article 15 The foreign trade department of the State Council may, where the monitoring of import and export so requires, employ the system of automatic license of import and export to some of the freely imported and exported goods, and publish the catalogue thereof.

For the goods subject to automatic license of import and export, if the consignor or consignee applies for automatic license prior to handling the formalities of customs declaration, the foreign trade department of the State Council and the institutions entrusted thereby shall grant approval. Where it fails to handle the formalities of automatic license, the customs may not release the goods there under.

Article 16 The state may restrict or forbid the import or export of relevant goods or technology if:

1. it is necessary to restrict or forbid the import or export for the purpose of maintaining state security, social public good or public morality;

2. it is necessary to restrict or forbid the import or export for the purpose of protecting human health or security, protecting the life or health of any animal or plant, or protecting the environment;

3. it is necessary to restrict the import or export for the purpose of implementing the measures relating to the import or export of gold or silver;

4. it is necessary to restrict or forbid the export of any of the exhaustible natural resources that are in short supply or subject to effective protection;

5. it is necessary to restrict the export due to the limited market capacity of the destination country or region;

6. it is necessary to export due to the serious disorder of the export business management;

7. it is necessary to restrict the import for the purpose of establishing or accelerating the establishment of a particular domestic industry;

8. it is necessary to restrict the import of any form of product in the agriculture, animal husbandry, or fishing industry;

9. it is necessary to restrict the import for the purpose of safeguarding the international financial status of the state or of the international balance of payments;

10. it is necessary to restrict or forbid the import or export under any other circumstance as provided for in any other law or administrative regulation; or

11. it is necessary to restrict or forbid the import or export under any other circumstance as provided for in any international treaty or agreement that China has concluded or acceded to.

Article 17 The state may, for the purpose of defending state security, take any necessary measures for managing the import and export of any matter of fission or fusion or any matter that derives such matter and the import and export of any weapon, ammunition, or any other military supply.

When in war or for keeping international peace and security, the state may take any necessary measures in terms of the import or export of goods or technology.

Article 18 The foreign trade administrative department of the State Council may, in collaboration with any other relevant department of the State Council, formulate, adjust and publish catalogues of goods and technology restricted or forbidden from import or export according to the provisions of Article 16 or 17 of the present Law.

The foreign trade administrative department of the State Council may, independently or in collaboration with any other department of the State Council, make provisional decisions, upon the approval of the State Council and within the scope of Articles 16 and 17 of the present Law, on restricting or forbidding the import or export of certain goods or technology that are not found in the catalogue as mentioned in the preceding paragraph.

Article 19 The state adopts the system of quota, license, etc, to the goods subject to import or export restrictions, while adopts the system of license to the technologies restricted or prohibited from import or export.

For the goods and technologies subject to the administration of quota or license, they cannot be imported or exported unless it has been approved by the foreign trade department of the State Council independently or in collaboration with other departments of the State Council.

The state may practice tariff quota administration to some of the import goods.

Article 20 The quotas and tariff quotas for the import and export goods shall be distributed by the foreign trade department of the State Council or other relevant departments of the State Council within their respective duties in accordance with the principles of openness, fairness, impartiality, and efficiency. The specific measures shall be made by the State Council.

Article 21 The state practices a uniform system of commodity quality assessment, and makes authentications, inspections, and quarantines to the import and export commodities according to the provisions of relevant laws and administrative regulations.

Article 22 The state applies the administration system of origin to the import and export goods. The specific measures shall be formulated by the State Council.

Article 23 With regard to cultural relics, wild animals or plants, and the products thereof, if it is restricted or prohibited by any law or administrative regulation from import or export, the provisions of such laws and administrative regulations shall apply.

Chapter IV International Service Trade

Article 24 The People's Republic of China opens, in accordance with its commitments made in the international treaties and agreements of international service trade that it has concluded or acceded to, its market to the other contracting parties or members and grants them with the national treatment.

Article 25 The foreign trade department of the State Council and other relevant departments of the State Council may, according to the present Law or any other relevant law or administrative regulation, administer the trade of international services.

Article 26 The state may restrict or prohibit the trade of relevant international services if:

1. it is necessary to restrict or prohibit it for the sake of maintaining state security, social public good or public morality;

2. it is necessary to restrict or prohibit it for the purpose of protecting human health or security, protecting the life or health of any animal or plant, or protecting the environment;

3. it is necessary to restrict it for the purpose of establishing or accelerating the establishment of a certain domestic service industry;

4. it is necessary to restrict it for the purpose of ensuring the balance of international payments of the state;

5. it is necessary to restrict or prohibit it for any other reason as provided for in any law or administrative regulation; or

6. it is necessary to restrict or prohibit it for any other reason as provided for in any international treaty or agreement that China has concluded or acceded to.

Article 27 For the military-related trade of international services and the international service trade of any matter of fission or fusion or any matter that derives such matter, the state may take any necessary measures to safeguard the security of the state.

When in war or for keeping international peace and security, the state may take any necessary measures regarding the international service trade.

Article 28 The foreign trade department of the State Council formulates, adjusts, and publishes, in collaboration with other relevant departments of the State Council, market entry catalogues of the international service trade in accordance with the provisions of Articles 26 and 27 of the present Law and other relevant laws and administrative regulations.

Chapter V Foreign-trade-related Intellectual Property ProtectionArticle 29 The state protects the intellectual property relating to foreign trade in accordance with relevant laws and administrative regulations concerning intellectual property.

Where any of the import goods violates any intellectual property right and, at the same time, endangers the foreign trade order, the foreign trade department of the State Council may take such measures as prohibiting the import of the relevant goods that the infringer has produced or sold for a certain period of time.

Article 30 In case any intellectual property right holder commits any of the acts of hindering the licensee from questioning the validity of the intellectual property right involved in the license agreement, conducting forced package license, or providing exclusive selling back conditions in the license agreement, etc. and, at the same time, endangers the fair competition order of foreign trade, the foreign trade department of the State Council may take necessary measures to eliminate such danger.

Article 31 Where any country or region fails to grant national treatment to the legal persons, other organizations, or individuals of the People's Republic of China in the protection of intellectual property rights, or fails to provide sufficient and effective intellectual property protection to the goods, technologies or services whose origin is the People's Republic of China, the foreign trade department of the State Council may, according to the present Law or any other law or administrative regulation, and according to the international treaties or agreements that the People's Republic of China has concluded or acceded to, take necessary measures against the trade with the said country or region.

Chapter VI Foreign Trade Order

Article 32 No one may, in the business activities of foreign trade, implement any act of monopolization against the relevant anti-monopolization laws or administrative regulations.

Anyone who carries out any monopolizing act in its foreign trade business activities shall be dealt with in accordance with the relevant anti-monopolization laws and administrative regulations. If any of the illegal acts as described in the preceding paragraph endangers the foreign trade order at the same time, the foreign trade department of the State Council may take necessary measures to eliminate the harm.

Article 33 No one may, in the business activities of foreign trade, conduct such unfair competition acts as selling commodities at unjustified low prices, colluding bid invitation and tendering for bid, disseminating false advertisements, or offering commercial bribes, etc.

Anyone who conducts any unfair competition act in its foreign trade business activities shall be dealt with in accordance with the relevant laws and administrative regulations regarding counteracting unfair competition.

If any of the illegal acts as described in the preceding paragraph endangers the foreign trade order at the same time, the foreign trade department of the State Council may take such measures as prohibiting the business operator involved from importing or exporting relevant goods or technologies so as to eliminate the said illegal act.

Article 34 No one may, in foreign trade activities, commit any of the following:

1. Forging or altering the marks of origin of the import or export goods; forging, altering or trading the certificates of origin, the licenses of import or export, the certificates of import or export quotas of the import or export goods, or any other certification documents of import or export;
2. Cheating for export refunds;
3. Smuggling;
4. Evading inspections and quarantines as provided for by any law or administrative regulation; or
5. Committing any other violation of law or administrative regulation.

Article 35 All foreign trade business operators shall abide by the provisions of the state regarding foreign exchange administration in their foreign trade business activities.

Article 36 Anyone who violates the present Law and endangers the foreign trade order shall be made public by way of announcements made by the foreign trade department of the State Council.

Chapter VII Foreign Trade Investigation

Article 37 In order to maintain the foreign trade order, the foreign trade department of the State Council may investigate into the following matters by itself or jointly with other relevant departments of the State Council in accordance with the laws and administrative regulations:

1. The impact of the import or export of goods or technology or international service trade on domestic industries and the competitiveness thereof;

2. The trade barriers of relevant countries or regions;

3. The matters that need to be investigated into for the purpose of determining whether it is necessary to take such foreign trade relief measures as antidumping, countervailing, or safeguard measures, etc.;

4. The evasion of trade relief measures;

5. The matters of foreign trade that concern the security or interest of the state;

6. The matters that need to be investigated into for the purpose of implementing Article 7, Paragraph 2 of Article 29, Article 30, Article 31, Paragraph 3 of Article 32, and Paragraph 3 of Article 33; and

7. Any other matter that need to be investigated into as a result of affecting the foreign trade order.
Article 38 When a foreign trade investigation is initiated, an announcement shall be issued by the foreign trade department of the State Council.

An investigation may be made by way of written questionnaires, holding hearings, making site investigations, and entrusting other people to make the investigation, etc.

The foreign trade department of the State Council may, based on the result of investigation, put forward an investigation report or make a ruling, and make an announcement for it.

Article 39 Relevant entities and individuals shall offer cooperation and assistance in foreign trade investigations.
The foreign trade department of the State Council and other departments of the State Council as well as the functionaries thereof shall, in the process of foreign trade investigations, be obliged to keep to themselves the state secrets and commercial secrets that they have access to.

Chapter VIII Foreign Trade Relief

Article 40 The state may take appropriate trade relief measures according to the result of foreign trade investigations.

Article 41 In case any of the products of any country or region is dumped into China at an abnormally low price and thus causes substantial injury or the threat of substantial injury to an established domestic industry, or substantially impedes the establishment of a domestic industry, the state may take antidumping measures so as to eliminate or alleviate such injury or threat of injury or impediment.

Article 42 In case any product of any country or region is exported to any third country at an abnormally low price and thus causes substantial injury or the threat of substantial injury to an established domestic industry, or substantially impedes the establishment of a domestic industry, the foreign trade department of the State Council may, as per the request of the corresponding domestic industry, hold negotiations with the government of the third country, and urge it to take appropriate measures.

Article 43 Where any imported product is given, directly or indirectly, any special subsidy by the exporting country or region in any form, and thus causing substantial injury or threat of substantial injury to an established industry, or substantially impeding the establishment of a domestic industry, the state may take countervailing measures so as to eliminate or alleviate such injury or threat of injury or impediment.

Article 44 In case the sharp increase of any imported product brings about any serious injury or threat of serious injury to the domestic industry that produces identical product or directly competing products, the state may take necessary safeguarding measures so as to eliminate or alleviate such injury or threat of injury, and may provide necessary support to the industry concerned.

Article 45 In case the increase of any service provided by any service provider of any country or region to China has caused injury or threat of injury to the domestic industry that provides identical service or directly competing services, the state may take necessary relief measures so as to eliminate or alleviate such injury or threat of injury.
Article 46 In case the import of any product to into China increases sharply as a result of the restriction of import by any third country, and thus causes injury or threat of injury to an established domestic industry, or substantially impedes the establishment of a domestic industry, the state may take necessary measures to restrict the import of the product.

Article 47 Where any country or region that has entered into any economic or trade treaty or agreement with the People's Republic of China violates the treaty or agreement so that the interest enjoyable by the People's Republic of China according to the treaty or agreement is lost or injured or the achievement of the objective of the treaty or agreement is impeded, the government of the People's Republic of China is entitled to demand the country or region concerned to take appropriate measures of relief, and may suspend or terminate the performance of relevant obligations according to the relevant treaties or agreements.

Article 48 The foreign trade department of the State Council is, according to the provisions of the present Law or other relevant laws, responsible for the bilateral or multilateral discussions, negotiations, and dispute settlement.
Article 49 The foreign trade department of the State Council and other relevant departments of the State Council shall establish an emergency prewarning mechanism of the import and export of goods, technology, and international service trade so as to deal with the abrupt or abnormal situations in foreign trade and safeguard the economic security of the state.

Article 50 For the acts of evading the trade relief measures as provided for in the present Law, the state may take necessary anti-evasion measures.

Chapter IX Foreign Trade Promotion

Article 51 The state formulates its strategy for foreign trade development, establishes and improves its foreign trade promotion mechanisms.

Article 52 The state establishes and improves its foreign-trade-oriented financial institutions and establishes foreign trade development funds and risk funds according to the demand of foreign trade development.

Article 53 The state employs such foreign trade promotion measures as import and export credit, export credit insurance, export tax refund, etc. to develop its foreign trade.

Article 54 The state establishes a foreign trade public information service system so as to provide information services to the foreign trade business operators and the general public.

Article 55 The state takes measures to encourage foreign trade business operators to explore the international market, and employ diversified means including foreign investment, foreign engineering project contracting, and labor cooperation, etc. to develop its foreign trade.

Article 56 Foreign trade business operators may lawfully establish and join relevant associations and chambers of commerce.

Relevant associations and chambers of commerce shall abide by the laws and administrative regulations, and provide, according to their constitutions, services to their members in terms of production, marketing, information, training, etc. relating to foreign trade, plays the role of coordination and self-discipline, makes applications for foreign trade relief measures according to law, defend the interests of their members and the corresponding industry, passes onto the relevant department of the government the suggestions of their members regarding foreign trade, and conduct foreign trade promotion activities.

Article 57 The Chinese international trade promotion organizations carry out foreign contacts according to their respective constitutions, hold exhibitions, provide information, consultation and conduct other foreign trade promotion activities.

Article 58 The state supports and promotes small and medium-sized enterprises to engage in foreign trade.

Article 59 The state supports and promotes minority ethnic group regions and economically underdeveloped regions to engage in foreign trade.

Chapter X Legal Liabilities
Article 60 Anyone who violates Article 11 of the present Law by unlawfully importing or exporting any of the goods subject to state-run trade without authorization shall be fined up to 50,000 yuan by the foreign trade department of the State Council or other relevant departments of the State Council. If the circumstances are serious, the application of the offender for engaging in the import or export of the goods subject to state-run trade may be turned down for a period of three years as of the day when the decision on administrative sanction takes effect, or the authorization to engage in the import or export of goods subject to state-run trade that has already been granted may be canceled.

Article 61 Anyone who imports or exports any goods that are banned from import or export or unlawfully imports or exports any goods that are restricted from import or export without approval shall be dealt with and punished by the customs office according to relevant laws or administrative regulations. If the offence constitutes any crime, it shall be subject to criminal liabilities.

Anyone who imports or exports any technology that is banned from import or export or unlawfully imports or exports any technology that is restricted from import or export shall be ordered by the foreign trade department of the State Council to correct, and be fined two times up to 5 times the illegal proceeds and the illegal proceeds shall be confiscated. Where there are no illegal proceeds or the illegal proceeds are not as much as 10,000 yuan, it shall be fined 10,000 yuan up to 50,000 yuan. If the offence constitutes any crime, it shall be subject to criminal liabilities.
As of the day when the decision on administrative sanction as described in the two preceding paragraphs takes effect, the foreign trade department of the State Council or other relevant departments of the State Council may, within a period of three years, refuse to accept the offender's applications for import or export quotas or licenses, or prohibit the offender from engaging in the import or export of relevant goods or technology within a period of one year up to three years.

Article 62 Anyone who is engaged in any banned international service trade or is unlawfully engaged in any restricted international service trade without approval shall be punished according to relevant laws and administrative regulations. Where it is not provided for in any law or administrative regulation, it shall be ordered by the foreign trade department of the State Council to correct and be fined two times up to five times the illegal proceeds, and the illegal proceeds shall be confiscated. Where there are no illegal proceeds or the illegal proceeds are not as much as 10,000 yuan, it shall be fined 10,000 yuan up to 50,000 yuan. If the offence constitutes any crime, it shall be subject to criminal liabilities. The foreign trade department of the State Council may prohibit the offender from engaging in the business activities relating to international service trade for a period of one year up to three years as of the day when the offender is given an administrative sanction or criminal penalty.

The foreign trade department of the State Council may prohibit the offenders from engaging in the business activities of international service trade for a period of one year up to three years as of the day when the decision on administrative sanction as described in the preceding paragraph takes effect or as of the day when the judgment of criminal punishment takes effect.

Article 63 Anyone who violates Article 34 of the present Law shall be penalized according to relevant laws and administrative regulations. If the offence constitutes any crime, the offender shall be subject to criminal liabilities.

The foreign trade department of the State Council may prohibit the offenders from engaging in relevant foreign trade activities for a period of one year up to three years as of the day when the decision on administrative sanction as described in the preceding paragraph takes effect or as of the day when the judgment of criminal punishment takes effect.

Article 64 In case anyone is banned from engaging in relevant foreign trade business according to Articles 61 through 64 of the present Law, the customs shall, during the period of banning, refuse to handle relevant customs inspection and release formalities for the relevant import or export goods of the foreign trade business operator according to the decision of banning made by the foreign trade department of the State Council, and the administrative department of foreign exchange or the designated foreign exchange banks shall refuse to handle relevant foreign exchange settlement and sale.

Article 65 Where any functionary of the department that is responsible for the administration of foreign trade according to the present Law neglects his duties, practices fraud for private benefits or abuses his power so that any crime is committed, he shall be subject to criminal liabilities. If the offence is not so serious as to constitute a crime, he shall be subject to administrative sanctions.

Where any functionary of the department that is responsible for the administration of foreign trade according to the present Law solicits any property from any other person by taking advantage of his position, or unlawfully accepts any property of any other person for the benefit of that person so that any crime is constituted, he shall be subject to criminal liabilities; if the offence is not so serious as to constitute a crime, he shall be subject to administrative sanctions.

Article 66 Where any of the parties concerned of foreign trade business activities is dissatisfied with the concrete administrative act made by the department that is responsible for the administration of foreign trade according to the present Law, it may apply for administrative reconsideration according to law or lodge an administrative action with the people's court.

Chapter XI Supplementary Provisions

Article 67 Where there are different provisions in any law or administrative regulation concerning the administration of the foreign trade of any military matter, any matter of fission or fusion or any matter that derives such matter and concerning the administration of import or export of cultural products, such provisions shall prevail.

Article 68 The state employs flexible measures and grants favorable treatment to and facilitates the trade between the border areas of China and those of neighboring countries as well as the frontier trade between border residents. The specific measures shall be formulated by the State Council.