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“Rules on Prohibitive and Restrictive Use of Enterprise Names” and “Rules for Identity and Similarity Comparison for Enterprise Names” promulgated by SAIC have come into force on July 31, 2017

With the rapid development of enterprises, the unfair-competition behaviors related to the enterprise’s name became more and more. In view of this, SAIC released the “Rules on Prohibitive and Restrictive Use of Enterprise Names” and “Rules for Identity and Similarity Comparison for Enterprise Names” (Gong Shang Qi Zhu Zi (2017) No.133) (hereinafter, “No. 133”). To compare with “Administrative Provisions on Enterprise Name Registration” (2012 Amendment) and “Measures for Implementing the Administration of Enterprise Name Registration” (2004 promulgated) (hereinafter, the “Original Rules”), the highlights of “No.133” are as follows: 1.Prohibitive Rules (1) Forbidding the same name: An enterprise’s name shall not…

Administrative Regulations for Special Tax Audit Adjustments and Mutual Agreement Procedures (“[2017] No.6”) has come into force on May 1, 2017

After the SAT has released the “Implementation Regulations for Special Tax Adjustments(Trail)” (“[2009] No.2”) in 2009, in order to furtherly regulate the related party transactions, and integrate with the international taxation policies, SAT has released several detailed rules. Recently, SAT releases the “[2017] No.6”, in which it has furtherly stipulated the special tax audit adjustments and mutual agreement procedures. Compared with “[2009] No.2”, “[2017] No.6” has amended and refined the following main aspects: 1. To add the risk characteristics of the enterprises which shall be paid special attention to. (1) Enterprises with the benefits received do not match with the…

Risk Prevention for Software Development Contracts

With the development of information technology, it is very normal for a company to appoint another company to develop software for operation, production or promotion, such as an official website, mobile APPs, management system software and so on. However, the disputes related to software development contracts raised accordingly. The main reason of these disputes has 2 aspects. Firstly, the commissioning party is not familiar with the relevant technologies, and too many IT jargon words are involved in the contract, which make the commissioning party fails to design a specific contract; secondly, the developed achievement is intangible, which brings uncertain factors…

“Opinions on Further Enhancing the Mediation and Arbitration of Labor Disputes and Improving the Multi-Dimensional Mechanism for Dispute Resolution” (the “Opinions”) has been released on March 21, 2017

The Ministry of Human Resources and Social Security, the Central Public Security Comprehensive Management Commission, the Supreme People’s Court, the Ministry of Justice, the Ministry of Finance, the All-China Federation of Trade Unions, the All-China Federation of Industry and Commerce and the China Enterprise Confederation/China Entrepreneurs Association jointly issued the “Opinions “. Although the “Opinion” shall not be directly applied as the judicial basis in hearing labor dispute cases, it reflects the tendency and trend in dealing with labor disputes in the near future. It has a guiding significance. Hereinafter partial of the contents have been selected which are highly…

"Arrangement on Mutual Entrustment for Service of Investigation and Collection of Evidence in Civil and Commercial Cases between the Courts of the Mainland and the Hong Kong Special Administrative Region" ("Arrangement”) has come into force on March 1, 2017

The commercial cooperation between mainland China and Hong Kong becomes more frequently, and more and more disputes arise. In addition, many foreign companies tend to choose the courts in Hong Kong as the competent court, while dealing with the mainland companies. So the lawsuits’ problems involve mainland and Hong Kong is a matter of great concern. Previously, for the civil and commercial cases, there is no rules on cross-border collection of evidence, which have brought a lot of problems. To solve these problems, the “Arrangement” has been signed. The main content includes: 1. Evidence shall be collected via the respective…

Interim Measures for 7-day Unconditional Return of Online Purchased Goods (“Interim Measures”) will come into force as of 15 March 2017

To regulate the online market and protect the rights and interests of consumers, SAIC released the “Interim Measures”, which has further specified the “7-day Unconditional Return” policy as stipulated in Article 25 of the “Consumer Protection Law”. The main contents include: (1)To add 3 categories of goods which shall be excluded from the scope of the ”7-day Unconditional Return” policy Despite the 4 categories of goods which shall be excluded from the scope of the “7-day Unconditional Return” policy as stipulated in the “Consumer Protection Law”, the “Interim Measures” has added another 3 categories, which are (a) goods which –…

Provisions of the Supreme People’s Court on Several Issues concerning the Trial of Administrative Cases Involving the Authorization and Determination of Trademark Rights (“Provisions”) will come into force on 1 March, 2017

In order to apply a consistent judicial rule in dealing with those critical problems, which frequently raised in the trial of administrative cases involving the authorization and determination of trademark rights in the recent years, based on the “Opinions of the Supreme People’s Court on Several Issues concerning the Trial of Administrative Cases Involving the Authorization and Determination of Trademark Rights” (“Opinions”) released by the Supreme People’s Court in 2010, recently, the “Provisions” was released. The “Provisions” has highlighted the following aspects: (1) The determination of “Likelihood of Confusion” Article 12 of the “Provisions” has specified 4 listed factors and…

Provisions of the Supreme People's Court on Several Issues Relating to Trial of Independent Letter of Guarantee Dispute Cases (the 'Provisions') has come into force on 1st Dec. 2016

With the frequent use of guarantee in the commercial transactions, the relevant disputes become more and more. Although the laws and international rules, such as the “Guarantee Law”, and the “The Uniform Rules for Demand Guarantees” issued by the International Chamber of Commerce, could be applied in hearing the relevant cases. In the judicial practice, there are still many confusions in distinguishing an independent letter of guarantee from a guarantee, or a document fraud from a breach of contract. Therefore, the Provisions has clarified those issues. The key to distinguishing the application of laws for the independent letter of guarantee…

Provisions of the Supreme People’s Court on Several Issues Concerning Cases of Property Preservation Handled by People’s Courts (‘Provisions’) will be taken into force on 1st Dec. 2016

In these years, in order to solve the problems related to those people legally in debt, the people’s courts have taken many measures, such as the public disclosure system, the order on the restriction of high consumption, and so on. Recently, the Supreme People’s Court has released the ‘Provisions’, in which the procedures and methods in handling the property preservation cases are further regulated. We recommend enterprises to pay attention to the new articles on the relevant duration of property preservation procedures, and the inquiry method on the property information of the person against whom preservation is adopted. The relevant…

‘SAT Announcement on the Enhancement of Administration of Advance Pricing Arrangement(‘APA’)’ (‘Announcement’)will come into effect beginning on 1 Dec. 2016

Recently, SAT has specified the system and procedures of APA which has been stipulated in the ‘Notice of the State Administration of Taxation on Issuing the Measures for the Implementation of Special Tax Adjustments (for Trial Implementation)’ (GUO SHUI Fa[2009] No.2), the highlights are as follows: Adjust the stages of APA meeting The APA meeting consisted of 6 stages, pre-filing meeting, intention, analysis and appraisal, formal application, negotiation and signing, supervision of implementation. Compared with ‘GUO SHUI Fa[2009] No.2’, the ‘formal application’ has been moved from the second stage to the forth stage. This adjustment means more preparation work will…