The General Office of the Ministry of Commerce ("MOFCOM") has recently distributed the Circular on Effectively Conducting Administration of Record-filing of Foreign Contracted Engineering Projects (the "Circular"), which will enter into force as of December 1, 2017.
The Circular states that after the approval system for tender offers (negotiations) for foreign contracted projects has been abolished, competent authorities of commerce will subject general projects to the administration by record-filing, but still administer projects contracted in countries (regions) that have not yet established diplomatic relations with China and projects in connection with benefits of multiple countries and major risks of regional security as special projects. According to the Circular, projects will be subject to administration by record-filing according to their categories and on a level-to-level basis, meaning that the record-filing of overseas engineering projects undertaken by headquarters of central enterprises will go to the MOFCOM; the record-filing of overseas engineering projects undertaken by local enterprises and entities subordinate to central enterprises shall be handled by provincial-level competent authorities of commerce at the place where they are registered respectively, leaving special projects to be all handled by the MOFCOM. Moreover, the Circular stipulates that an enterprise is required to handle record-filing formalities for an overseas engineering project, after it has decided to be engaged in such project but has not yet submitted (negotiated) a tender. Also, any enterprise engaged in the business of undertaking foreign contracted projects must pay cash deposits in full in a timely manner.