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.
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