Detailed Rules for Implementation of Regulations of the People's
Republic of China on the Administration of International Freight
Forwarding Industry

Circular of the Ministry of Commerce of the People's Republic of China[2003] No. 82

　　In accordance with the relevant procedure provisions of the
Measures of the Ministry of Commerce for Drafting Laws and
Administrative Regulations and Formulating Rules and Normative
Documents on the departmental rules and regulations' formulation,
after widely soliciting opinions, the Ministry of Commerce of the
People''s Republic of China has made a decision on modifying the
Detailed Rules for Implementation of the Regulation of the People''s
Republic of China on the Administration of International Freight
Forwarding Industry (for Trial Implementation) (hereinafter referred
to as Detailed Rules for Implementation).

　　The content of Article 6 of the former Detailed Rules for
Implementation, namely, "The applicant of international freight
forwarding agency shall be entities in relation to import and export
trade or of international freight forwarding and having stable
supply of goods. The investor in conformity with the above-mentioned
requirements shall hold majority shares in the application
projection.", shall be modified as: "The shareholders of
international freight forwarder may comprise enterprise legal
persons, natural persons or other economic organizations. The big
shareholder shall be enterprise legal person in relation to import
and export trade or international freight forwarding and having
stable supply of goods, and shall account for the majority shares in
the international freight forwarder. No shareholders other than the
enterprise legal person may account for majority shares in
international freight forwarder." In addition, "Ministry of Foreign
Trade and Economic Cooperation" and "Ministry of Foreign Economy and
Trade" shall be modified as " Ministry of Commerce"; "the competent
administrations of foreign trade and economy" in the former articles
shall be modified as "competent administrations of commerce"; and
"local competent administrations of foreign trade and economy" shall
be modified as "local competent administrations of commerce".
　　Detailed Rules for Implementation of Regulations of the People's
Republic of China on the Administration of International Freight
Forwarding Industry are hereby promulgated anew after the
modification and shall be implemented as of the promulgation.
Ministry of Commerce of the People's Republic of China
January 1st, 2004

Detailed Rules for Implementation of Regulations of the People's
Republic of China on the Administration of International Freight
Forwarding Industry

Chapter I General Provisions
Article 1 With a view to maintaining the order of international
freight forwarding market, strengthening supervision over the
international freight forwarding industry, and promoting the healthy
development of the international forwarding industry of our country,
the present Detailed Rules are hereby formulated in accordance with
the Regulations of the People''s Republic of China on the
Administration of the International Freight Forwarding Industry
(hereinafter referred to as the Regulations) as promulgated by the
former Ministry of Foreign Trade and Economic Cooperation upon
approval of the State Council on June 29, 1995.
Article 2 An international freight forwarding enterprise
(hereinafter referred to as the international freight forwarder) may
act as an agent of the consignee or the consignor of import and
export cargo, or as an independent operator engaging in
international freight forwarding operations.
　　The international freight forwarding operations of an
international freight forwarder as an agent refer to the activities
whereby, entrusted by the consignee or consignor of import and
export cargo or their agents, it handles related operations in the
name of its clients or its own, and collects agent fees or
commissions.
　　The international freight forwarding operations of an
international freight forwarder as an independent operator refer to
the activities whereby it accepts the entrustment of the consignee,
consignor of import and export cargo or their agents, signs and
issues transport documents, performs transport contracts and
collects transport fees and service charges.
Article 3 The name and logo of an international freight forwarder
shall comply with the relevant provisions of the State and with its
business operations, and be able to demonstrate the characteristics
of the industry. Its name shall contain such relevant words as
"freight forwarding", "transport services", "container transport"
and "logistics", etc.
Article 4 The "scope of authorization" as prescribed in paragraph 2,
Article 4 of the Regulations refers to, with the authorization of
the Ministry of Commerce, the competent departments of commerce of
the People''s Government of a province, an autonomous region, a
municipality directly under the central government, or a city
directly under State planning are responsible for the supervision
over and administration of the international freight forwarding
industry in their respective jurisdictions (The Ministry of Commerce
and the competent local departments of commerce are hereinafter
jointly called the competent departments in charge of the trade
sector), Such a scope of authorization shall cover: preliminary
examination on the application of an enterprise for engaging in an
international freight forwarding project, the annual examination and
license-change examination on international freight forwarders,
business statistics, training of professionals, guidance of local
trade associations in carrying out work as well as working with
relevant local administrative departments in standardizing the
operational behaviors of freight forwarders and rectifying the
operational order of the freight forwarding market.
　　The international freight forwarding subsidiaries, branches and
non-commercial executive offices set up by enterprises directly
under the departments of the State Council or by enterprises from
other localities in a city directly under State planning (excluding
special economic zones), shall, in pursuance of the scope of
authorization as prescribed in the preceding paragraph, accept the
supervision and administration from provincial competent departments
of commerce.
　　No other entity may engage in the examination, approval or
administration of the international freight forwarding industry
without authorization from the Ministry of Commerce.
Article 5 The Ministry of Commerce shall be responsible for carrying
out professional training on employees of international freight
forwarders and making an examination of the qualifications of the
training institutions. No entity without approval may engage in the
qualification training of employees of international freight
forwarders. The conditions for the establishment of training
institutions and their training contents and teaching materials
shall be separately prescribed by the Ministry of Commerce.
　　Professionals engaged in international freight forwarding
operations shall accept the training as prescribed in the preceding
paragraph. Upon passing the examinations, they shall obtain
qualification certificates of international freight forwarding.
Chapter II Conditions for Establishment
Article 6 The applicants for establishing international freight
forwarders shall be an enterprise legal person, a natural person or
other economic organizations, of which the big shareholder shall be
an enterprise legal person in relation to import and export trade or
international freight transportation and have stable supply of
cargo, and shall account for the majority shares in the
international freight forwarders. No shareholders except the
enterprise legal person may account for majority shares in the
international freight forwarders.
Article 7 An international freight forwarder shall possess the
enterprise legal person qualification of the People''s Republic of
China according to law. The enterprise''s organizational form shall
be a limited liability company or a joint-stock company. Any entity
with administrative monopoly powers shall be prohibited from
applying for investing and dealing in international freight
forwarding business. Carriers and other enterprises, which may
entail unfair competition to the international freight forwarding
industry, shall not file an application for dealing in international
freight forwarding operations.
Article 8 The operational conditions as prescribed in Article 7 of
the Regulations shall include:
1. Having at least five professionals who have been dealing in
international freight forwarding operations for over three years and
whose qualifications have been certified by their previous
employers; or, they have obtained the qualification certificates
issued by the Ministry of Commerce according to Article 5 of the
present Detailed Rules;
2. Having a fixed place of business, and property rights
certificates shall be presented in the case of self-owned housing
and sites; and tenancy contracts shall be presented in the case of
leased housing and sites;
3. Having necessary operational facilities, including a certain
amount of telephones, fax machines, computers, short-distance
transport tools, loading and unloading equipment, packaging
equipment etc.; and
4. Having a stable supply of import and export cargo, which means
that the amount of import and export cargo in the present area is
relatively larger, that the freight forwarding industry has the
conditions and potentials for further development, and that the
applying enterprise can get a sufficient supply of cargo.
Article 9 In case multimode transport business is included in the
scope of business of international freight forwarding operations as
applied for by an enterprise, the following conditions shall also be
met with in addition to meeting with the conditions as prescribed in
Article 7 of the Regulations and in Articles 6, 7 and 8 of the
present Detailed Rules:
1. Having been engaging in the relevant operations as listed in
Article 32 of this Detailed Rules for over three years;
2. Having corresponding domestic and overseas agent networks; and
3. Having international freight forwarding bills of lading, which
are registered and put on records at the Ministry of Commerce.
Article 10 An international freight forwarder shall, when applying
for establishing each subsidiary, increase its registered capital by
RMB 500,000 Yuan accordingly. If the enterprise''s registered
capital has exceeded the minimum amount as prescribed in the
Regulations (RMB 5 million Yuan for sea transport, RMB 3 million
Yuan for air transport and RMB 2 million Yuan for land transport and
express delivery), the excess amount can be used as the capital
increased for establishing the subsidiary.
Article 11 The "branch organs" as mentioned in the Regulations and
the present Detailed Rules refer to the branch companies.
Chapter III Procedures for Examination and Registration
Article 12 To deal in international freight forwarding operations,
it is imperative to obtain the International Freight Forwarder
Approval Certificate of the People''s Republic of China (hereinafter
referred to as the Approval Certificate) issued by the Ministry of
Commerce.
　　The entity applying for dealing in international freight
forwarding operations shall submit the following documentation:
1. The application, specifying the name of the investors,
explanations to the application qualification and the application
project;
2. The feasibility study report, specifying basic information,
qualification statement, current conditions, market analysis,
business forecasts, establishment program, economic budget and
development budget, etc.;
3. Enterprise legal person business licenses (Photostat copies) of
the investors;
4. The resolutions of the board of directors, the shareholders
meeting or the general assembly of shareholders;
5. The Articles of Association (or draft) of the enterprises;
6. Information of major professionals (inclusive of educational
experience, majors of study, work experiences, qualification
certificates);
7. The credit standing certificates (capital verification reports of
all the investors issued by accountant firms);
8. The agreement of capital contribution of investors;
9. The resume of the legal representative;
10. The format of the international freight forwarding bill of
lading (transport document);
11. The letter of advance approval of enterprise name (Photocopy,
issued by the administrative departments for industry and commerce);
12. The international freight forwarder application form I
(Attachment Form I); and
13. Transaction clauses.
　　With the exception of Items (3) and (11), the above-mentioned
documents shall all be submitted in their original texts and annexed
with official seals.
Article 13 The competent departments in charge of the trade sector
shall make an examination of application projects, which shall
include:
1. The necessity of establishing the project;
2. The authenticity and integrality of the application documents;
3. The qualifications of the applicants;
4. The credit standing of the applicants; and
5. The qualifications of the professionals.
Article 14 The competent local departments of commerce shall, after
making examinations on the application projects, report to the
Ministry of Commerce the preliminary opinions (including the scope
and areas of business, and the proportion of capital contributions
of investors as suggested for approval, etc.) and all the
application documents according to the time as prescribed in
paragraph 1 of Article 11 of the Regulations for examination and
approval.
Article 15 In any of the following circumstances, the Ministry of
Commerce shall reject the application and explain the reasons:
1. The documentation is incomplete;
2. The submission procedure is inconformity with the requirements;
or
3. The Ministry of Commerce has circulated a notice, suspending the
acceptance of applications for dealing in international freight
forwarding operations.
Article 16 In any of the following circumstances, the Ministry of
Commerce shall give a reply of disapproval upon investigation and
verification:
1. The applicant is not qualified for dealing in international
freight forwarding operations;
2. The applicant has been engaging in illegal forwarding operational
activities within 5 years from the date of submission, and has been
imposed a penalty by the administrative departments of the State;
3. The applicant purposely disguises or gives false information on
submission information; or
4. Other conditions inconformity with the relevant principles of
Article 5 of the Regulations.
Article 17 An applicant shall, upon receiving the official reply of
approval from the Ministry of Commerce, within 60 days from the date
of receiving the reply, take the revised Articles of Association
(original copy) of the enterprise, go to the Ministry of Commerce
and obtain the approval certificate upon the strength of the
introductory letter of the competent local departments of commerce.
Article 18 An enterprise may apply for expansion of its business
scope and areas one year after its establishment and dealing in
international freight forwarding operations. The competent local
departments of commerce shall, upon examination, report to the
Ministry of Commerce for approval in accordance with the procedures
as prescribed in Article 11 of the Regulations.
　　An enterprise may, one year after its establishment and dealing in
international freight forwarding operations, and on the condition of
having built up a certain business scale, apply for establishing
subsidiaries or branches. The enterprise shall present the opinions
of the competent local departments of commerce of the place where
the enterprise is located (in case of Beijing-based enterprises
directly under the departments of the State Council, the letter of
opinion solicitation from the Ministry of Commerce), file an
application with the local departments in charge of business affairs
of the place (excluding cities directly under State planning) where
the branches or subsidiaries are to be located; in case of a city
directly under State planning, the application shall be submitted to
the Ministry of Commerce for approval in accordance with the
provisions of Article 14 of the present Detailed Rules. The business
scope of the branches or subsidiaries shall not go beyond that of
its parent company or head office.
　　When setting up a non-commercial executive office, an
international freight forwarder shall make submission to and put on
the archival files at the competent local department in charge of
the trade sector at the place where the executive office is located
and accept administration.
Article 19 Where an enterprise files an application in accordance
with paragraphs 1 and 2 of Article 18 of the present Detailed Rules,
it shall submit the following documents in addition to the relevant
documentations as prescribed in Article 12 of the present Detailed
Rules:
1. The original official reply on international freight forwarding
operations (Photocopy);
2. The approval certificate (Photostat copy);
3. The business license (Photostat copy);
4. The Form II for the Application of International Freight
Forwarders (Attachment Form II, Attachment Form I is for the
establishment of subsidiaries);
5. The operational situation report (inclusive of network
construction);
6. The resumes of the legal representatives of subsidiaries or the
executives of the branches; and
7. Registration form for annual examination of the previous year.
Article 20 Where an enterprise applies for establishing a
subsidiary, the applicant shall, upon receipt of the affirmative
reply and within ninety days as of the date of the reply, present a
legally valid capital verification report as well as the revised
Articles of Association (the original copy) of the enterprise after
the head office has expanded the registered capital according to the
provisions of Article 10 of the present Detailed Rules and go to the
Ministry of Commerce to obtain the approval certificate upon the
strength of the introductory letter from competent local departments
of commerce at the place where the branches are to be located.
Article 21 In case an applicant fails to go through formalities for
obtaining the certificate within a prescribed time limit, or fails
to start business operation without justifiable reasons 180 days
beyond the date of obtaining approval certificate, his qualification
of dealing in international freight forwarding operations will be
invalidated automatically unless otherwise his application for
extension has been approved.
Article 22 The Ministry of Commerce may, on the basis of the
development and overall arrangement of international freight
forwarding industry, decide to suspend accepting the application for
dealing in international freight forwarding operations within a
period of time or take restrictive measures.
　　The Ministry of Commerce shall make announcement on the decisions
made in pursuance of the preceding provisions.
Article 23 In case of any change with an international freight
forwarder as follows, it shall report to the Ministry of Commerce
for examination and approval, and obtain a new approval certificate:
1. Name of the enterprise;
2. Type of the enterprise;
3. Equity relationship;
4. Decrease of the registered capital;
5. Business scope; or
6. Business areas.
　　In case of any of the following changes, it shall directly obtain
another approval certificate after reporting and filing a record
with the Ministry of Commerce.
1. Mailing address or place of business;
2. Legal representatives;
3. Increase of the registered capital; or
4. Department directly subordinated.
Article 24 An international freight forwarder shall go though
registration formalities upon strength of the approval certificate
at the administrative department for industry and commerce and
customs.
　　No entity may, without obtaining the approval certificate, use the
"international freight forwarding operation" or other wordings
identical or similar to the meaning thereof in its business license
for industry and commerce.
Chapter IV Annual Examination and Change of Certificates
Article 25 The Ministry of Commerce shall implement a system of
annual examination and change of certificates on international
freight forwarders.
Article 26 The Ministry of Commerce shall be responsible for the
annual examination on Beijing-based enterprises directly under the
departments of the State Council, and for the change of certificates
of the international freight forwarders all over the country. The
competent local departments of commerce shall be responsible for the
annual examination on the international freight forwarders within
their own districts (including the subsidiaries and branches
established by enterprises directly under the departments of the
State Council and by enterprises from other localities).
Article 27 An international freight forwarder shall submit the
annual examination registration form (Attachment III), capital
verification report and business license (Photocopy) to the
competent local department of commerce (Beijing-based enterprises
directly under the departments of the State Council shall submit
directly to the Ministry of Commerce) at the place where it is
located before the end of March each year and apply for annual
examination.
　　The annual examination focuses on the examination of the
management of the enterprises, and their compliance and
implementation of the Regulations and other relevant laws,
regulations and rules. After the enterprises have passed the annual
examination, the department in charge of the trade sector shall add
the seal of "passing the annual examination" to their approval
certificates.
Article 28 The period of validity of the approval certificate is 3
years.
　　An enterprise shall, 60 days before the expiry of the period of
validity of the approval certificate, file an application with the
competent local department of commerce for changing the certificate,
in which process, the enterprise shall submit the following
documentation:
1. The registration form of certificate change application
(Attachment Form IV);
2. The approval certificate (Original copy); and
3. The business license (Photocopy).
Article 29 In case an enterprise has passed the annual examination
for three consecutive years, the competent local department of
commerce shall submit to the Ministry of Commerce the approval
certificate 30 days before the expiration of its period of validity,
and apply for a new approval certificate.
Article 30 When an international freight forwarder applies for
changing its certificate, the competent department in charge of the
trade sector shall make an examination of its operational
qualification and situation and shall refuse to grant a new approval
certificate in any of the following circumstances:
1. Failing to comply with the provisions of Article 27 of this
Detailed Rules;
2. Failing to punctually go through formalities for changing
certificate;
3. Transferring shareholder''s rights without authorization; or
4. Changing of such major matters as the enterprise''s name, place
of business, and registered capital without authorization and
failing to file a record for archival purposes in accordance with
relevant provisions.
Article 31 In case an enterprise fails to change a new approval
certificate due to its own reasons, its qualification for engaging
in international freight forwarding operations shall be invalidated
automatically on expiration of its validity. The Ministry of
Commerce shall make announcement on the above-mentioned conditions.
The administrative departments for industry and commerce shall write
off the above-mentioned enterprises or order them to go through the
formalities for the alteration of their scope of business.
　　In case an enterprise, which has lost its qualification of dealing
in international freight forwarding operations, desires to continue
with this business, it shall file another application in compliance
with relevant provisions.
Chapter V Business Management
Article 32 An international freight forwarder may engage in
management activities as an agent or independent operator. Its scope
of business shall include:
1. Canvassing cargo, booking space (including ship renting, plane
chartering and cabin booking), consignment for shipment, warehousing
and packaging;
2. Supervision over cargo loading and unloading, container stuffing
and dismantling, distribution, transit, and related short-distance
transport services;
3. Declarations to the customs, the commodity inspection and
checking, and insurance purchases;
4. Making, signing and issuing relevant documents and bills, payment
of transport fees, settlement and payment of incidental charges;
5. Freight forwarding of international items on display, personal
effects and cargo passing through the territory of a country;
6. International multimodal transport, and container transport
(including container assembling);
7. International express delivery (excluding personal letters); and
8. Consultation and other international freight forwarding
operations.
Article 33 International freight forwarders shall engage in business
activities in accordance with the business scope and areas as
enumerated in the approval certificates and business licenses.
Article 34 The Ministry of Commerce may, on the basis of the
development of the respective industry, entrust the trade
associations to formulate the standard transaction clauses by
referring to the international customs, and the international
freight forwarders may refer to them without the approval of the
Ministry of Commerce. The international freight forwarders may
formulate transaction clauses by themselves, but they may not use it
until the clauses have been put on record at the Ministry of
Commerce.
Article 35 The international freight forwarders shall submit the
business statistics to the competent departments in charge of the
trade sector, and be responsible for the truthfulness of the
statistical numbers. The measures for the compilation of the
business statistics shall be separately prescribed by the Ministry
of Commerce.
Article 36 The international freight forwarders shall, when
accepting entrustment to handle relevant businesses as agents, sign
written entrustment agreement with the import or export consignees
or consignors. The disputes arising between the two parties shall be
settled on the basis of the written agreement they signed.
　　An international freight forwarder shall, as an independent
operator, when engaging in the relevant operations as prescribed in
Article 32 of the present Detailed Rules, sign transport documents
and bills to the owner of cargo. Should a business dispute occur
with the owner of cargo, it shall be settled on the basis of the
transport documents and bills as signed by the enterprise. When a
business dispute occurs with the actual carrier, it shall be settled
on the basis of the transport contract signed with the actual
carrier.
Article 37 The international freight forwarding bill of lading used
by the international freight forwarders shall be subject to a
registration and numbering system. All the international freight
forwarding bills of lading signed and issued within the Chinese
territory shall be submitted by the international freight forwarders
to the Ministry of Commerce for registration and indicate the
approval number.
　　International freight forwarders shall strengthen management on
their international freight forwarding bills of lading. No such
bills of lading may be lent. In case of loss or revision of the
edition, it shall be reported to and put on the archival files at
the Ministry of Commerce in time.
　　The transfer of an international freight forwarding bill of lading
shall meet the following provisions:
1. Straight bill of lading: transfer shall be prohibited;
2. Order bill of lading: to be transferred after endorsement in full
or endorsement in blank;
3. Bearer bill of lading: no need to be endorsed before transfer.
　　The international freight forwarding bill of lading shall be
subject to the system of liability insurance. Liability insurance
shall be covered by an insurance company upon approval of the
People''s Bank of China.
Article 38 As an independent operator, the term of liability of an
international freight forwarder shall begin from receiving cargos
and end on delivering them when it is performing or organizing
international multimode transport. The basis for their undertaking
liabilities, limitations of liability, exemption conditions and
preconditions for losing liability restrictions shall be specified
in relevant legal provisions.
Article 39 An international freight forwarder shall undertake
international freight forwarding operations by the name and the
serial number of the enterprise as specified in the approval
certificate, and shall print the name and serial number of the
enterprise in major office stationery and documents and bills.
Article 40 No international freight forwarder may use the registered
capital within the prescribed scope for other purposes.
Article 41 No international freight forwarder may transfer any
international freight forwarding operation right directly or in
disguised form; nor may it allow any other entity or individual to
engage in international freight forwarding operations in the name of
the international freight forwarder or its business department; nor
may it sign any agreement with entities who do not have the
international freight forwarding operation right to allow them to
deal in international freight forwarding operations independently or
jointly with it, to collect agent fees, commissions or get other
interests.
Article 42 An international freight forwarder may, as an agent,
collect agent fees to the owners of cargo, and may also get
commissions from the carriers. No international freight forwarder
may share commission with the owners of cargo in any form.
　　As an independent operator, an international freight forwarder
shall collect fees to the owners of cargo in pursuance of the
relevant freight rates when engaging in the relevant operations as
prescribed in Article 32 of the present Detailed Rules. Under this
circumstance, it is prohibited from accepting commissions from
actual carriers.
Article 43 The China representative office of a foreign enterprise
(including that from Hong Kong, Macao, Taiwan regions; the same
hereinafter) can only engage in non-direct commercial operations in
the form of representing that enterprise in making business
contacts, introducing products, conducting market research,
technical exchanges and other business activities within its scope
of business.
Article 44 An international freight forwarder shall obtain and
purchase invoices from the tax authorities upon the strength of the
approval certificate, and use them in accordance with the provisions
of the tax authorities.
Article 45 No international freight forwarder may engage in business
activities by way of issuing false advertisements, sharing
commissions, returning rebate or other means of unfair competition.
Chapter VI Punitive Rules
Article 46 In case any international freight forwarder violates the
provisions of Articles 19 and 20 of the Regulations and the
provisions of paragraph 2 of Article 23, Articles 34, and 35 of the
present Detailed Rules, the Ministry of Commerce shall empower the
competent local departments of commerce to give it warnings and
order it to correct within a prescribed time limit; if it fails to
correct within the prescribed time limit, the competent local
departments of commerce may suggest the Ministry of Commerce
revoking its approval certificate.
Article 47 In case an international freight forwarder violates the
provisions of paragraph 2 of Article 17, Article 20, and Article 22
of the Regulations and the provisions of paragraph 3 of Article 18,
paragraph 1 of Article 23, Articles 24, 27, 33, 36, 37, 39, 40, 41,
42, 43, 44, and 45 of the present Detailed Rules, the competent
local department of commerce shall, upon the authorization of the
Ministry of Commerce, and in light of the circumstances, give it
warnings, or order it to straighten out by stopping business
operation, or impose other penalties; in case the circumstance is
serious, it may suggest the Ministry of Commerce to revoke its
approval certificate.
　　Where an enterprise has been imposed a penalty of being revoked
business approval certificate, it shall go through alteration or
writing-off registration accordingly at the administrative
department for industry and commerce. And the enterprise may not
file another application for dealing in international freight
forwarding operations within 5 years.
　　In case an enterprise, which has been imposed a penalty of making
rectification by stopping business operation, resumes to carry out
businesses, the following conditions shall be met with:
1. Having made rectification;
2. The main person liable has been punished;
3. Meeting with other conditions as required by the competent
departments in charge of the trade sector.
　　The competent departments in charge of the trade sector shall,
after receiving the application of an enterprise for resuming
business and relevant written documents, determine whether approving
for its resumption of business or not.
Article 48 Where an entity engages in international freight
forwarding operations in violation of the provisions of the
Regulations and the present Detailed Rules, the competent
departments in charge of the trade sector shall ban its illegal
operational activities, and the administrative departments for
industry and commerce shall impose penalties on it in accordance
with the provisions of the relevant laws and administrative
regulations, and the competent departments in charge of the trade
sector shall make an announcement thereof. The competent local
departments of commerce shall file a record for archival purposes
with the Ministry of Commerce after making announcement. And the
entity is prohibited from applying for dealing in international
freight forwarding operations independently or as a participant
within 5 years.
Chapter VII Supplementary Provisions
Article 49 The international freight forwarders may, on the basis of
their own will, establish international freight forwarding
associations (hereinafter referred to as the trade associations).
Article 50 The trade association shall be a non-profit
non-governmental mass organization with the view of serving its
members and carrying out work in line with its Articles of
Association under the supervision and guidance of the competent
department in charge of the trade sector. Its objectives are to
promote the member enterprises to strengthen horizontal links,
exchange information, increase mutual collaboration; to encourage
and supervise over the member enterprises to operate according to
law and regulate their competition, represent the interests of the
industry according to the law, safeguard the legitimate rights and
interests of the members, and assist the relevant departments of the
government in strengthening the administration of the industry so as
to facilitate its healthy development.
Article 51 The formulation of standard transaction clauses on the
international freight forwarding by the trade associations in
accordance with the provisions of Article 34 of the present Detailed
Rules shall be reported to the Ministry of Commerce for approval,
and for the use of the enterprises in the competent industry.

Article 52 The Regulations and the present Detailed Rules shall be
applicable to the foreign-funded enterprises serving as agents for
international cargo transport, unless there are provisions in the
relevant laws, regulations and rules on foreign-funded enterprises,
the provisions shall prevail.

Article 53 The Ministry of Commerce shall be responsible for the
interpretation of the present Detailed Rules.

Article 54 The present Detailed Rules shall come into force as of
the date of promulgation.