Two Administrative Measures for Food Production and Operation Licensing Issued

Recently, the executive meeting of the China Food and Drug Administration has adopted after deliberation the Administrative Measures for Food Production Licensing and the Administrative Measures for Food Operation Licensing (the "Two Measures") both for implementation as of October 1, 2015.

According to the Two Measures, the food circulation license and the catering service license shall be integrated as the food operation license; the food additive production license shall be included in the Administrative Measures for Food Production Licensing. One food production license is issued to one enterprise and one food operation license is issued for one place. The Two Measures stipulate that a special food producer shall submit corresponding production quality management system documents and product registration and filing documents in addition to having licensing conditions for common food. Besides, the Two Measures also provide for categorized licensing, numbering rules for licenses, matters specified in a license, and other aspects.

NDRC Cancelled the Examination and Approval of Quotas for Foreign Debts by Enterprises

Recently, the National Development and Reform Commission ("NDRC") has promulgated the Circular on Promoting the Administrative Reform of the Record-filing and Registration System for the Issuance of Foreign Debts by Enterprises (the "Circular") for implementation as of the data of promulgation.

For the purpose of the Circular, foreign debts refer to the debt instruments of not less than one year that are borrowed overseas by domestic enterprises and the foreign enterprises or branches under their control and demonstrated in domestic currency or foreign currency, with the capital repaid and interest paid as agreed, including bonds issued overseas and long- and medium-term international commercial loans. The Circular cancels the examination and approval of quotas for foreign debts issued by enterprises and implements the administration under the record-filing and registration system. An enterprise that intends to issue foreign debts shall apply to the NDRC in advance for handling the formalities of record-filing and registration, and shall report the issuance information within ten working days as of the end of issuance each time. In addition, the Circular also puts forward that it is imperative to expand the scale of enterprises' foreign debts, support the transformation and upgrading of key fields and industries, and encourage the enterprises with good credit status and strong debt repaying ability to issue foreign debts.

Administrative Provisions on Business Scope Registration for Enterprises Promulgated

Recently, the State Administration for Industry and Commerce has promulgated the Administrative Provisions on Business Scope Registration for Enterprises (the "Provisions") for implementation as of October 1, 2015.

According to the Provisions, the business scope of an enterprise shall be one or more sectors of the Classification of National Economic Sectors of China. For those business modes that are new and not covered in the Classification, industrial standards and business norms can apply. 

The Provisions also clarifies the registration of business scopes that are required to have ex-ante licenses and ordinary licenses, and the method of publishing the licenses to the public.

The enterprises that engage in operating activities without approval and registration shall be investigated and punished in accordance with the provisions of relevant laws and regulations.

SAFE New Rules on Centralized Operation of Foreign Exchange Funds of Multinational Corporations Issued

Recently, the State Administration of Foreign Exchange has issued the Circular on Issuing the Administrative Provisions on Centralized Operation of Foreign Exchange Funds of Multinational Corporations (the "Circular").

The Circular stipulates the pilot implementation of the self-discipline management of foreign debt proportion. A member enterprise of a multinational company shall borrow foreign debt subject to self-discipline management in respect of proportion, and a hosting enterprise may wholly or partially centralize the amount of foreign debts of member enterprises; funds for foreign currency settlements may be used for repaying Renminbi loans, equity investment and etc.; upon handling the registration of foreign debt, enterprises may independently choose the currency for debt repayment according to the business principle. The Circular also proposes to optimize the function of primary international account. Domestic banks may use domestically deposits absorbed through primary international foreign exchange accounts to the extent of 50% of daily average balance of deposits of the last six months; on the premise of including in bank position of settlement and sales of foreign exchange administration, a certain proportion of account funds shall be allowed to settle and sell foreign exchange. In addition, the Circular requires the simplification of the formalities for foreign exchange receipts and payments. Formalities for foreign currency purchase and payment for external payment in respect of current items and capital items are allowed to be handled in different banks.