Compensation Trade

1. Transaction Regulations

I. Legal Basis
Some Regulates on Broaden the Using Overseas Investment, Technology Reforming and the Capital Foundation Funded by the Local Place [Yue Fu (1984) No.111]

II.Transaction Procedure

The enterprise should compile and hand in the proposal and feasibility report to Development and Reform Bureau or Economic and Trade Bureau, than reports and agreement (contract) to Foreign Trade and Economic Cooperation Bureau of Foshan after their approval. After that the enterprise could apply for the <Register Manual for Import and Export Goods by Enterprises Doing Processing, Assembling and Small & Medium Scaled Compensation Trade> with the approval file and the agreement (contract) from the local custom.

III. Documentary Requirements
(1)Proposal (one original);

(2)Feasibility Report (one original);
(3)Declaring Files of Competent Authorities (two original);
(4)Agreement of Compensation Trade (contract) (one original);
(5)The Foreign Investor Information (one original);
(6)Technology Import Contract (one original);
(7)Equipments Purchase Contract (one original);
(8)Equipments List (one original) ;
(9)Buy-back Contract (one original);

. Auditing time: the application should be submitted to authorities at a higher level within five working days after all documents required are ready.

Responsible department: Foreign Investment Promotion Section

Responsible person: Li Min

Consultation Tel.
83367580 83286918 8380892183355734