TT Talk - China opens doors to forwarders
From the end of this year, China's doors are fully opened to foreign investment in freight forwarding business, subject to satisfying capital requirements and other conditions. Companies will able to establish a presence in China, either in the form of joint ventures (JV) or wholly foreign-owned enterprises (WFOEs, providing that they:
a. have a minimum paid-up capital of USD1 million;
b. have at least five staff members must have more than three years of working experience in international freight forwarding industry or have obtained relevant qualifications;
c. have permanent office premises in China; and
d . are equipped with the necessary business facilities for communication, transportation, loading / unloading, packing etc.
These JVs or WFOEs are in turn able to set up their own branches across China if the following requirements are met:
a.. The JVs or WFOEs have been operating in China for at least one year;
b. All registered capital has been paid up;
c. . Payment of an additional paid-up capital of USD120,000 for each branch.
However it should be noted that in China the concept of "freight forwarding" has a narrow meaning, referring only to agency business, which is regulated by the Ministry of Commerce. If the company wishes to issue its own house bills of lading, it must register with another ministry (Ministry of Communications) and make a cash deposit of RMB800,000 (about USD100,000) as liability guarantee. A further RMB 200,000 deposit is required for each additional branch in China .
You may also be interested in:
Find out who FIATA and TT Club have named Young International Freight Forward of the Year 2020
Regional winners of the Young International Freight Forwarders of the Year award revealed
FIATA and TT Club reveal this year’s regional winners of the Young International Freight Forwarder of the Year Award (YIFFYA).
International freight transport insurer TT Club's well-respected loss prevention newsletter, TT Talk, is being made available as a podcast. TT Live will be recorded monthly and released at the same time as the written word. In addition, six specially produced interviews on various aspects of contractual challenges in the operation of the container supply chain will be made available over the next six weeks.