•   +86 13917421790
      kittykim@hiwayslaw.com
       中文 (中国)     日本語    English
  • 2013-01-17
  • 5 minutes Read
Restriction and Risk for Making Capital Contributions in the Term of Land Use Right

In accordance with “Company Law” and relevant regulations, the investor may make capital contributions (“CC”) in other non-currency properties that may be assessed on the basis of currency and may be transferred according to law, excluding the properties that shall not be treated as CC according to any laws or administrative regulations. In view of this, it has the possibility to make CC in the term of land use right (“LUR”) in principle. However, legally transference is the key element in deciding whether the special LUR can be used to make CC. In practice, the possibility and risks of the…

  • 2013-01-17
  • 2 minutes Read
Impractical KPI

Shadow (“S”) is an electronic components manufacturer. In order to improve efficiency, S issues “Rules of KPI”, a hundred-mark system is applied, in which 40 points for fulfillment of task, 40 points for attitude, 20 points for attendance, and points for attitude is scored by the direct supervisor. An employee shall be deemed as disqualified if he/she gets below 60 points, if so, S shall have the right to adjust his/her position to a lower rank, and cut down his/her salary. At the end of the year, manager of Administrative Dept. Ms. Zhang only got 40 points, in which 20…

  • 2012-12-18
  • 4 minutes Read
What’s the impact the New Regulations on Recall of Defective Auto Products Works?

“Regulations on the Administration of Recall of Defective Auto Products” (“Regulations”) was promulgated on Oct. 10, 2012, and will come into force on Jan. 1, 2013. Being the new regulation which has a higher legislation hierarchy than “Provisions on the Administration of Recall of Defective Auto Products” (“Provisions”), it has stipulated new articles, such as the highest penalty is 10% of the value of defective auto products, the sharing system of auto-product information within multiple departments, the initiative investigation right of the national quality supervision department, which catch the eyes of public consumers. How does the New Regulations work? Will…

  • 2012-12-17
  • 2 minutes Read
Is It Illegal to Conduct “Special Management” to Individual Employees

The company “Shadow” (“S”) thought that Ms. A had disclosed the secret of S and dismissed her. After the accomplishment of arbitration on labor issues, and litigation, since S could not provide enough evidence, S was ordered to resume the labor relation. A was the HR director of S, but after the litigation, S requires her to work at a subsidiary alone. There is neither computer nor telephone in the new office, not to say signal for mobile phone. The office has been installed with 2 cameras. S also issues 5 notification of punishment to Ms. A in a day,…

  • 2012-11-18
  • 1 minute Read
“Regulations on the Administration of Recall of Defective Auto Products” (“Regulations”) will come into force on Jan. 1, 2013

“Provisions on the Administration of Recall of Defective Auto Products” (“Provisions”) comes into force in 2004, which is criticized for its legislation hierarchy, its contents lacking of practicality, its punishment is needed to be strengthened. with Provisions, Regulations raises the legislation hierarchy to Administrative Regulations, and amends the following aspects: (a) increasing the amounts of punishment, for example, if the manufacturer hides the defects, or refuses to recall the auto products, the fine shall be calculated based on the percentage of the value of defective auto products, which means there is no maximized amount; (b) further stipulating the investigation rights…

  • 2012-11-18
  • 4 minutes Read
“Untruthful Declaration” Shall be Inevitably Imposed of Administrative Punishment?

In the procedure of the import and export declaration, to identify the commodity classification (“CC”, viz choosing the Tariff Code) is a skill requires high technicality and professionalism. In practice, different enterprises, even different administrations of customs (“AC”) may identify different CCs for even same goods. Where an enterprise declares a Tariff Code which is different from the identification of AC, it may be deemed by AC as an untruthful declaration (“UD”) and imposed of administrative punishment (“AP”), or be deemed as smuggling and imposed of criminal punishment. Those punishments may not only bring loss to those enterprises, but also…

  • 2012-11-18
  • 3 minutes Read
The Follow-up Consideration on the Ceased Operation or Production

The market was in a downturn, so “Shadow” (“S”) decided to cease a line. On Feb. 5, S notified its 20 hourly employees of the news that the line was ceased, and all the employees should still register at company every day. Mar. 1 was the payday, S said that the employees had only worked for 5 days in Feb., so they could only obtain 5 days’ wages. On Apr. 1, S refused to pay the wages of Mar., the employees applied to the labor dispute arbitration committee (“Committee”) for arbitration, and required S to pay the full wages of…

  • 2012-11-18
  • 1 minute Read
Notice of the Ministry of Finance and the State Administration of Taxation on the Pilot Work of Levying Value-Added Tax in Lieu of Business Tax in the Transportation Industry and Some Modern Service Industries in Beijing and Other Seven Provinces and Cities (“Notice”)

From Aug. 1 2012, the scope of the pilot work of levying value-added tax(“VAT”) in lieu of business tax shall be expanded from Shanghai to Beijing , Tianjin, Jiangsu Province, Anhui Province, Zhejiang Province (including Ningbo), Fujian Province (including Xiamen), Hubei Province and Guangdong Province (including Shenzhen). Levying value-added tax in lieu of business tax shall be conducted in the transportation industry and some modern service industries, which are transportation, R&D and technology, information technology, cultural innovation, logistics supports, lease of corporeal movables, attestation and consulting. The VAT rate for R&D and technology, and lease of corporeal movables is 17%,…

  • 2012-10-18
  • 2 minutes Read
New methods applied to promote foreign trade increase by Chinese Authorities

On 16th September, 2012, the State Council released “Suggestions on the Promotion of a Stable Growth in Foreign Trade”, in which two points are highlighted as following: (a)Speed up the relevant processes, reduce the relevant fees. For example, extend the scope of territorial declaration and port clearance under effective supervision; waive the printing costs for paper of verification of export earnings, import payments and the drawback copy of export declaration; waive the custom supervision cost. (b)Optimize the structure of trade, mainly including encourage the imports of advanced technological equipments, key parts and components and daily necessities that are closely related…

  • 2012-10-18
  • 1 minute Read
Work-related injury insurance benefits shall be exempt from individual income tax.

“Notice on Individual Income Tax Policies for Work-Related Injury Insurance Benefits Obtained by Employees Injured while Working”(No. 40 [2012] of the Ministry of Finance) has stipulated that work-related injury insurance benefits obtained by employees and their close relatives in accordance with the Regulation on Work-Related Injury Insurance (Order No. 586 of the State Council) shall be exempt from individual income tax. This regulation shall be effective on 1 January, 2011. If the employees injured while working and their close relatives have paid the tax, they can apply to the competent tax authorities, and the authorities shall return the tax accordingly.