What is the time limit for government agencies to carry out the annual inspection on total export FIEs?
According to the interim measures recently issued by several government agencies concerning the inspection of the exportation of products of a permitted category foreign invested enterprise (FIE) that exports its entire products directly, which only apply to 100% export FIEs established after 1 October 2002, the time limit is five calendar years from the day the total export FIE begins production.
The specific date for starting and ending the inspection period is broken into three categories:
(i) For a Total Export FIE established before 1 October 2002 that started production and needs to continue importing equipment within the total investment after that date, the inspection period runs from 1 October 2002 until five years after the FIE begins production. If, at the time the FIE begins production, the import equipment has not actually been put into production and use, the inspection period on such equipment will be the five years after the day the equipment is put into production.
(ii) If such a Total Export FIE has not started production but needs to continue importing equipment within the total investment after 1 October 2002, the inspection period runs five years from the day the FIE begins production. If the FIE begins production after 1 September, the period is calculated from 1 January of the following year.
(iii) For a Total Export FIE established before 1 October 2002 that does not need to import equipment after that date, the inspection period is five years from 1 October 2002 until the Total Export FIE begins production.