The competent commercial departments of all provinces, autonomous regions, municipalities directly under the Central Government and cities specially designated in the State plan: In accordance with pertinent provisions of the Measures for Administration on Foreign Investment in Commercial Fields (MOFCOM Order [2004] No. 8), relevant issues concerning expanding distribution business scope by foreign invested non-commercial enterprises are hereby notified as follows: Where a foreign invested non-commercial enterprise expands distribution business scope, all parties that invested in the enterprise shall revise the enterprise contract and articles of association according to the laws, fill in and submit the application forms (see appendix I and II) according to pertinent legal procedures with regard to expanding enterprise business scope and get a new approval certification of foreign invested enterprise. Where a foreign invested non-commercial enterprise expands distribution business scope, it shall specify the distribution type, including wholesale, retail and commission agency and submit the list of categories of the products it operates while filing the application. In case of engaging in franchise business activities, the examination shall be conducted in accordance with the Measures for the Administration on Commercial Franchise Business. Specified requirements shall be notified separately. The provincial competent commercial department shall fill in the Application Form for Submission for Expanding Distribution Business Scope of Non-commercial Enterprises and Investment Companies by Foreign Investors (see appendix III). Where a foreign invested non-commercial enterprise expands distribution business scope and establishes retail stores, and in case that the business scope of the newly established foreign invested enterprise includes non-self-produced products distribution business, the examination shall be conducted according to the relevant provisions as provided by Order No. 8. All the provincial competent commercial departments shall, in accordance with the purview of examination and approval as provided by Order No. 8, accept or transfer the application of an enterprise for expanding distribution business scope. It is hereby notified.
Ministry of Commerce of the People's Republic of China April 2, 2005
