Article 10 If State-owned circulation enterprises invest to establish jointly-operated commercial enterprises, the assessing setups accredited by State-owned property management departments shall make scientific and righteous assessment on the tangible and intangible property invested in the light of the Measures on the Management of Assessment of State-owned Property. The assessment result serves as the foundation for evaluating State-owned property after the confirmation of State-owned property management departments at or above province level.
Article 11 If the established jointly-operated commercial enterprises expect to involve wholesale business, establish branch stores or replace the cooperative party, the Ministry of Foreign Trade and Economic Cooperation shall conduct examination and approval after consulting the State Economic and Trade Commission; other changes of the established jointly-operated commercial enterprises shall be examined and approved by the original examining and approving organ according to the current provisions concerning enterprises with foreign investment. Jointly operated commercial enterprises shall submit the following documents:
(1) application report;
(2) the report on enterprise's operating situation;
(3) the report on the property evaluation;
(4) the report and certification on the enterprise's export situation;
(5) related decisions of the board of directors;
(6) agreement on the revision of contract and provision;
(7) other related documents. The enterprise shall register with the State Administration for Industry and Commerce and undergo the procedures of revision within one month since the date when the revised contract and articles of association are approved.
Article 12 The operation scopes of jointly-operated commercial enterprises are:
1. the operation scopes of retail-oriented jointly-operated commercial enterprises are:
(1) commercial retail operation (including sell on a commission basis or sell by mail);
(2) organize the export business of domestic products;
(3) export and import business of its own merchandises;
(4) the related matching services.
2. the operation scopes of wholesale-oriented jointly-operated commercial enterprises are: wholesale of domestic and self-operated import merchandises within China, organizing the export of domestic products.
Article 13 Retail-engaged jointly-operated commercial enterprises can also operate wholesale business.
Article 14 Jointly-operated commercial enterprises are prohibited form engaging in acting business of export and import .
Article 15 Jointly-operated commercial enterprises, operating merchandises on which the State has special provisions as well as those export and import merchandises with quota and license involved, shall undergo examining and approving procedure according to related provisions of the State. The annual import volume of the jointly operated commercial enterprise shall not exceed 30% of its annual selling volume.
