Businessmen
BIZCHINA / Foreign Investment Catalogue
Measures on Administration of the Appraisal of Assets Invested by
Foreign Businessmen
Updated: 2006-04-18 10:52
GuoJianJianLian [1994] No.78
March 18, 1994
All directly subordinate bureaus for the commodity inspection, the
departments (bureaus) of finance of the various provinces, autonomous
regions, municipalities directly under the Central Government and
municipalities separately listed on the State plan:
In order to benefit the establishment of the normal order of
investment,conduct the healthy development of the foreign businessmen's
investment and further ensure a correct appraisal to the assets put in by
foreign businessmen as investment,the State Administration of Commodity
Inspection and Ministry of Finance draw together the the Measures on
Administration of the Appraisal of Assets Invested by Foreign Businessmen
and are now issuing it to you for implementation.You are requested to
transmit it to the local bureaus for the commodity inspection,departments
of finance,accounting firms and related units of dominated regions for
implementation.
Chapter I General Provisions
Article 1 These measures are enacted to ensure a correct appraisal to the
assets put in by foreign businessmen as investment, so as to protect the
lawful rights and interests of all investors in the introduction of
foreign capital by the country, in accordance with Article 33 of the
Regulations for the Implementation of the Law of the People's Republic of
China on Import and Export Commodities Inspection (hereinafter referred
to as "Regulations for the Implementation of Commodity Inspection Law"),
and according to Article 29 of the Rules for the Implementation of the
Law of the People's Republic of China on Foreign-capital Enterprises, as
well as relevant State laws and administrative decrees.
Article 2 These measures apply to the appraisal of assets that is
invested by overseas (including Hong Kong, Macao and Taiwan) firms,
businesses, other economic entities, or individuals (hereinafter referred
to as "foreign businessmen") in enterprises with foreign investment of
various kinds or in compensation trade conducted in various kinds or in
compensation trade conducted in China, or assets bought outside China by
agents entrusted by enterprises with foreign investment.
Article 3 The State Administration of Import and Export Commodities
Inspection of the People's Republic of China (hereinafter referred to as
the "State Administration of Commodity Inspection") is in charge of the
appraisal of assets invested by foreign businessmen throughout the
country. The State Administration of Commodity Inspection shall set up
local import and export commodities inspection bureaus (hereinafter
referred to as "local bureaus of commodity inspection") to take charge of
and handle the appraisal of the assets invested by foreign businessmen in
localities. The local bureaus of commodity inspection shall set up
property appraisal offices and other joint assets assessment ventures
(hereinafter referred to as "other appraisal organs") to handle the
appraisal of assets invested by foreign businessmen according to Article
8 of these measures.
Article 4 The Ministry of Finance of the People's Republic of China is in
charge of the inspection of assets invested by foreign businessmen and
related financial affairs nationwide. Local financial departments are in
charge of the inspection of assets invested by foreign businessmen and
related financial affairs in their own localities. Accounting firms
approved by the Ministry of Finance and local financial departments shall
be responsible for arranging for the inspection of assets invested by
foreign businessmen.
Article 5 The appraisal of assets invested by foreign businessmen shall
adhere to the principle of truthfulness, fairness, scientific, and
feasible and be handled according to means and standards of international
practices, and stipulated by the State.
Article 6 The appraisal of assets invested by foreign businessmen
includes such contexts of category, quality, quantity, value, and loss.
In context of category, quality and quantity, the appraisal involves the
titles, model numbers, quality, quantity, specifications, trade mark,
extent of wear, release dates, producing country, and manufacturers of
the assets. In context of value, it is to appraise the current prices of
the assets invested by foreign businessmen. In context of loss, it is to
appraise cause, extent, charges for settlement, and salvage value of
losses of the assets invested by businessmen caused by natural disasters
and accidents.
Article 7 After appraising the assets invested by foreign businessmen,
the local commodity inspection bureaus and other appraisal offices shall
issue an appraisal certificate. The certificate for value is a valid
document to approve the value of assets invested by all investors.
The accounting firms of all localities shall assess the assets invested
by foreign businessmen according to the value appraisal certificate
issued by the commodity inspection bureau and other appraisal offices.
Chapter II Organization and Management
Article 8 The setting up of assets appraisal offices or joint venture
assets assessment offices to carry out the work of appraisal prescribed
by these measures by local commodity inspection bureaus shall be under
the examination and approval by the State Administration of Commodity
Inspection and the Ministry of Finance, and be noticed to local
accounting firms and other related departments.
Article 9 Personnel for appraisal of assets invested by foreign
businessmen can only be qualified to do such a work through attending a
formal training organized by the State Administration of Commodity
Inspection for such a purpose and passing tests thereof and obtaining a
certificate from the latter for such a qualification.
Chapter III Methods and Procedures for Appraisal
Article 10 In appraisal of the assets invested by foreign businessmen,
the appraisal methods and related regulations prescribed by these
measures shall be used to determine the actual current conditions, extent
of wear, functional index, technical parameters, profitability, and cost
of replacement of the assets concerned.
Article 11 The appraisal methods consist of on-the-spot examination,
technical tests, and value rating. The method of value rating includes
the following means:
(1) Market method;
(2) Cost method;
(3) Income method;
(4) Other methods stipulated by the Ministry of Finance and State
Administration of Commodity Inspection.
Page: 1 2 3
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Foreign firms look to hotel sector
� Steelmakers to reject 19% iron ore hike
� Talks start over gov't contracts
� Boeing expects B747-8 success in Asia
� Money supply growth still climbing
Today's Top News
� 21 killed, 1mln evacuated as typhoon hits S.China
� FM brands spying claims 'fictitious'
� US gov't limits Chinese computers use
� Chairman Mao portrait up for auction
� Pay rises by 16% for State sector workers
Top Biz News
� China bans import, export of endangered species
� China Mobile in talks with Google to add Web services
� UK offers aid to improve life in poorest areas
� Nation's first A380 pilot to receive training
� Export of fishery workers to Taiwan resumed
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Mandarin online
