Application For Confirmation Letters On Foreign-funded Projects Encouraged by the State

I.The Extent of Authority For The Application of The Confirmation Letters
1.For the encouraged foreign-funded projects with total investments over 30 million US dollars, the Confirmation Letters will be issued by the National Development and Reform Commission of China or China's Department of Commerce; for the encouraged foreign-funded projects with total investments under 30 million US dollars, the Confirmation Letters will be issued by the provincial Development and Reform Commission or the provincial Department of Commerce. The encouraged foreign-funded projects indicates the foreign-funded projects according to the Foreign Investment Industrial Guidance Catalogue which includes:
1)The foreign-funded projects such as joint venture enterprises, Chinese-foreign cooperative enterprises and wholly foreign-owned companies; 2)The newly added projects of joint venture enterprises, Chinese-foreign cooperative enterprises and wholly foreign-owned enterprises with increased investments through the way of increasing foreign registered capital.
2.For the foreign loans projects approved by the State Council and National Development and Reform Commission of China, the Confirmation Letters will be issued by the National Development and Reform Commission; for the foreign loans projects approved and recorded by the provincial Development and Reform Commission, the Confirmation Letters will be issued by the provincial Development and Reform Commission. The foreign loans projects indicates the projects funded by international finance organizations or foreign governments.
3.To apply for tax exemption, for the joint venture enterprises and Chinese-foreign cooperative enterprises, the Confirmation Letters on Chinese-funded and Foreign-funded Projects Encouraged by the State will be issued by the National Development and Reform Commission; for the newly established foreign owned enterprises and the capital increased projects, the Confirmation Letters will be issued by National Department of Commerce.
II.Documents Required To Apply For Confirmation Letters
1.Foreign Invested Projects
1)The written application from the municipal Development and Reform Commission or Department of Commerce where the project locates;
2)The Projects Unit Report (specifying that this project is qualified according to the clauses and sub-clauses in Catalogue of Encouraged Foreign Investment Industries;
3)A copy of the document for project approval;
4)For the projects with total investments under 30 million US dollars, a manifest of imported equipments in sextuplicate needs to be presented with a stamp of the project unit; for the projects with total investments over 30 million US dollars, a manifest of imported equipments in septuplicate needs to be presented with a stamp of the project unit (the manifest form of imported equipments can be downloaded from the official website of Department of Commerce of Hunan Province);
5)A copy of the Certificate of Approval For Establishment of Enterprises With Foreign Investment In the People's Republic of China and the business license;
6)Other documents required to be stated or provided.
2.Foreign Loans Projects
1)Provincial trade authorities or municipal Development and Reform Commission is required to present a written application to the provincial Development and Reform Commission with following documents:
a)Document for project approval and filing;
b)The reply document of the approval of the project fund application;
c)Letters of Acceptance of Imported Equipments;
d)Imported Equipments List;
e)A Foreign Government Loan Lending Agreement signed by both the project unit and a China's bank
f)Other documents required to be stated or provided (foreign government loan projects should be presented with project business contract).
2)After the approval of the written application by the Provincial trade authorities or municipal Development and Reform Commission by the provincial Development and Reform Commission, the Project Confirmation Letter should be issued in sextuplicate (see Appendix 2) according to the reply report on project capital application presented by the National Development and Reform Commission; for the projects whose Project Confirmation Letters should be issued by the National Development and Reform Commission, the application should be presented to the National Development and Reform Commission. III. Modifications of The Project Confirmation Letter
1.For the foreign invested projects who have been issued Confirmation Letters, any modifications on project unit, total investment, the amount of used foreign exchange, the duration of the project, equipment list or other subject matters need the preliminary examination of the modified contents and reasons by the municipal Development and Reform Commission, and a modification application should be presented to the provincial Development and Reform Commission with following documents:
1)A copy of the issued Project Confirmation Letter;
2)A form in comparison of the original one with the modification and other relevant statement materials.
The provincial Development and Reform Commission shall, if consenting to the modifications after examination and verification, issue a written certification on modification of Project Confirmation Letter. For the projects whose modifications need to be approved by the National Development and Reform Commission, the Project Confirmation Letter should be issued by the National Development and Reform Commission.
2.For the foreign loans projects who have been issued Confirmation Letters, any modifications on the names of project units, the amount of used foreign exchange, the duration of the project or other subject matters should be applied by the project unit; after the preliminary examination by the provincial trade authorities or municipal Development and Reform Commission, the provincial Development and Reform Commission should issue a letter for modification approval (see Appendix 5). For those projects whose modifications need to be approved by the National Development and Reform Commission, the application needs to be presented to the National Development and Reform Commission.
IV.Others
1."Total amount of investment" refers to the total investment amount or the amount of capital increase; "project foreign exchange amount" refers to the total used foreign exchange on construction equipment imports, technologies and components;
"Duration of the Project" refers to the duration between the start and the end of project construction rather than the operation period of foreign-funded enterprises;
"Project imported equipment list" refers to all the imported equipments stated in the approved project application report, including device name, specification, size, number, unit price, and total prices, etc.
2.The lists of imported equipments of foreign investment projects should all be printed with A4 Paper. When the list is more than one page, it cannot be bound in a volume, and a stamp of the project unit is required on every page of the list and the reply report of the municipal Development and Reform Commission.
3.For those foreign invested projects who need to apply for Confirmation Letters, the municipal Development and Reform Commission and the development zones who enjoys the approval right should adhere strictly to the relevant regulations on foreign invested projects since the reform of national investment system,the approval process and approval of materials cannot be simplified, and the project application report and approval documents cannot be replaced by the project application form and other reports.
4.The provincial trade authorities and the municipal Development and Reform Commissions should enhance the control of the processing work on the Confirmation Letters of foreign invested projects, approve the projects according to the above mentioned regulations; to the projects without complete procedures, veritable documents or incorrect content, Confirmation Letters cannot be issued. The commission will enhance the control of approved project Confirmation Letters jointly with customs and other departments, and discovered problems will be handled seriously.