The General Office of the Ministry of Transport (the "MOT") has recently issued the Opinions on Accelerating the Pilot Reform of the Innovation and Development in the Logistical Arrangement of Non-Tracking Operating Common Carriers (NTOCCs) (the "Opinions").
The Opinions specify the scope, content, and organization and other matters in respect of the pilot reform and define NTOOCs as operators of roadway freight transportation entering into transportation contracts with consignors in the capacity of carriers undertaking a carrier's responsibilities and obligations which perform the consigned transportation tasks through the engagement of actual carriers. The Opinions stipulate that enterprises included in the pilot reform shall meet four conditions including "having a considerably strong claim-paying ability". The Opinions further set requirements on the regulation of the business practices of NTOOCs, the advancement in the credit-related development regarding NTOOCs, the duly implementation of the policies on NTOOCs relating to the collection of value added tax in lieu of business tax, the encouragement of NTOOCs to innovate in operating and management models, and the exploration and innovation in the administrative systems for NTOOCs.