Category: WeChat

With the popularization of intellectual property protection, trademarks are no longer a strange concept for people doing business. More and more enterprises are paying attention to intellectual property rights. Let’s sort out some conceptual common sense.

© Image | Google

 

 

Classification of Chinese and 

international organization registration

1. Trademark registration for individual countries or regions, and registration of trademarks in various countries (such as mainland China, Thailand, India).

2. The European Union organizes trademark registration, and there are currently 27 member states (membership of the organization is restricted to Europe)

3. The registration of trademarks of the African Intellectual Property Organization, which currently has 17 member states.

4. Madrid Union trademark registration application, the existing 101 member countries.

 

 

Trademark rights are regional

The regionality of trademark rights refers to the trademark rights granted by a country or region in accordance with its own trademark law. In other words, it is effective only in the country and is not binding in other regions. 

Although there are international organizations of trademarks and some regional organizations of trademarks, these organizations cannot be separated from the regional existence. Where the trademark registered where would be used and protected.

Long registration period

Most countries or regions have a longer registration period, usually about 2 years, and some even as high as 5-6 years; while mainland China is expected to be 1 year. 

 

When planning to do import and export business, you must register your trademark in advance to lay the foundation for brand promotion. At the same time, you can establish a brand image, enhance the brand value of the company, and protect the company.

In China, trademark applications require patience for review!

There are many businessmen who pay attention to intellectual property rights. In China, trademark applications need to wait patiently for review! Refer to the following data for information:

Trademark Application and Registration Statistics of Provinces, Autonomous Regions and Municipalities in the First Three Quarters of 2018 in China

Statistical Period 

Dec 2017 to Sep 2018

 

The monthly situation of trademark applications in mainland China from January to November 2018

Statistical Period 

Jan 1, 2018 to Nov 30, 2018

Note: this statistical data does not include the trademark data that has been applied but has not been published on the official website of the trademark office.

Today is Jan 1, the first day of 2019. We wish everyone a happy new year! At the same time, a series of new rules and policies will take affect across China since today. Let’s see how your everyday life in China will be changed.

Mobile SIM card 

nonlocal cancellation service

The Ministry of Industry and Information Technology has requested three Chinese telecommunications companies to trial mobile SIM card nonlocal cancellation service by November 1, 2018. China Unicom, China Telecom and China Mobile will officially provide this service from January 1, 2019. 

© Image | GOOGLE

Of course it’s really convenient for the foreigners who like to travel many places around China. But you should notice that the mobile number contains too much personal information, and please handle it carefully in case of scams happened or being used by swindlers.

Newly revised Individual Income Tax Law 

will be implemented

The “Personal Income Tax Law of the P.R.C”, as amended by the Fifth Session of the Standing Committee of the 13th National People’s Congress, will be officially implemented on January 1, 2019. From October 1, 2018, the tax threshold has been raised to 5,000 yuan. According to the newly revised tax law, a number of special additional deductions were also formally implemented.

© Image | chinatax.gov.cn

Individual Tax deduction

The deduction for individual taxes is mainly for the middle class with wages and salaries as the main source of income. The final draft of the special tax deduction method has increased the deduction limit, expanded the deduction range, made more people benefit.

 New Measures Let You Pay Less Individual Tax In China!

New version of Birth Certificate

A few days ago, the National Health and Health Committee issued a notice stating that since January 1, 2019, the birth certificate (sixth edition) would be launched official.

Example

© Image | WEIBO

Goods imported from Hong Kong 

to the mainland are duty-free

According to the website of the Hong Kong Government, the international trade negotiator and deputy minister of the Ministry of Commerce of China, has signed the “Goods Trade Agreement” with the Hong Kong Financial Secretary Mr Paul Chan. 

© Image | WEIBO

From January 1, 2019, goods originating in Hong Kong will be fully duty-free when imported to Chinese Mainland. It means that Hong Kong products can be bought at a lower price starting 2019!

Agreement rates with multiple countries

 are further reduced

The Ministry of Finance announced that starting from January 1, 2019, 

• China will adjust the import and export tariffs on some commodities, 

• impose a temporary import tax rate on 706 commodities, 

• and no longer impose export tariffs on 94 commodities. 

The adjustment plan for the provisional tax rate for import and export in 2019 is mainly divided into two aspects: adjusting the import tariff rate and the export tariff rate.

© Image | GOOGLE

Among the agreed tax rates

Since January 1, 2019, the treaty rates for China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia, and Asia-Pacific trade agreements have been further reduced.

The E-commerce law 

is officially implemented

The “E-Commerce Law” will be officially implemented on January 1, 2019. At that time, all purchasing and micro-businesses will need to apply for the business license of both the destination and the Chinese, and pay the corresponding tax.

© Image | GOOGLE

The “Daigou”(代购) who acts as a purchasing agent and sells goods in WeChat Moments, will be monitored by the government strictly and subjected to highest 2 million fine once they violate the rules.

Six national standards of the “Electronic License” were officially implemented

The State Administration of Markets, the National Standardization Administration, and the Office of the Inter-Ministerial Joint Meeting of the National Electronic Document Management (National Cryptography Administration) jointly issued six national standards for the “Electronic License”, which will be officially implemented on January 1, 2019.

© Image | 中新网

The standard specifies the overall technical framework for the application of electronic licenses, a uniform license classification rule and basic information for licenses. Each E-license is given an “identity number” and its uniqueness is ensured, making the sharing of government information resources and services more standardized, more convenient and more efficient.

With the recent detention of Canadian citizens by the Chinese government, China, led by its Ministry of Foreign Affairs, is trying to show to the world what happens when you do not abide by its summons.

© Image | GOOGLE

 

This appears to be retaliation for the arrest of Huawei chief financial officer, Meng Wanzhou, in Vancouver, which provoked fury in China.

The Arrest of Huawei’s CFO Rages A War Between Three Countries!

The situation should be cause for concern – especially for those who travel frequently to China on business.

Canada and the United States have travel advisories in place that make note of China’s exit ban. Chinese authorities can place an exit ban on a person to prevent them from leaving the country.

It can relate to investigations into an individual, their family or an employer, and in criminal and civil matters, including business disputes.

© Image | GOOGLE

 

China’s Exit and Entry Administration Law (EEA Law) adopted in 2012 regulates the entry and exit of non-Chinese nationals in and out of China. Article 28 states that 

“Under any of the following circumstances, foreigners shall not be allowed to exit China:

Are involved in unsettled civil cases and are not allowed to exit China upon decision of the people’s courts;

Are in arrears of paying off labour remuneration and therefore are not allowed to exit by decision of the relevant departments under the State Council or of the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government; …”

 

Most countries restrict the exit of individuals convicted of a crime and serving their punishment in prison or by other means – very few impose an exit ban on individuals involved in a civil case. 

Imagine that you are travelling in the United States and you are involved in a car crash involving multiple vehicles. You are not responsible, but the passengers in front of you sue you for damages. 

Neither the EEA Law nor the Chinese Supreme Court of Justice defines the scope of the exit ban on its application to civil cases. We should exercise caution and assume that it applies to any types of case, especially those exposed on social media that attract more attention.

As an employee, shareholder or owner of a company, you may think that there’s no need to worry as the company has its own legal status and unless the corporate veil is lifted by a judge, you should be safe.

© Image | GOOGLE

 

Regrettably, numerous cases have been reported in China whereby North Americans were forbidden to leave China because a competitor brought a lawsuit on unfounded grounds against the company they own or are a shareholder of in order to obtain a business concession or trade secret. 

This type of unfair practice is common and unfortunately, there is no way around it except by taking precautions and discussing the issues with your legal counsel. Companies should negotiate litigious matters outside China.

In the event your company has debts of any amount in China or it fails to fully pay or compensate its past or present employees, Chinese courts will lift the corporate veil in order to prevent the legal representative, directors and senior management from leaving China until the matter has been redressed. 

Be aware the Chinese courts, creditors or employees will only accept Renminbi (RMB), a non-tradable currency, adding another layer of complexity to the issue since the burden of swapping currency into RMB will fall on the defendant.

As per the travel warning of the governments of Canada: 

 

“You may not be aware that authorities have placed an exit ban on you until you try to leave the country. It is difficult to obtain information on bans from Chinese authorities. If you are unable to leave the country because of an exit ban, consult a lawyer and contact the closest office of the Government of Canada.”

No one should stop travelling, trading with or investing in China and there has been tremendous progress in the country in the past 40 years, but travellers – especially business travellers – should take note of the exit ban law that is currently in place.

2019 is very approaching, here we would like to summarize a review of bank and tax policies of 2018 in China. Click the photos to know more about the details and review the changes that have taken place around you!

1

Chinese Banks: New Limits On Overseas Cash Withdrawals!

New limits on the amount of money people can withdraw from their Chinese bank accounts while overseas, in the move by Beijing to tighten its capital account controls and curb money outflows.

2

More Imported Food & Products Are 0% Tariff Now!

According to Ministry of Commerce, Free Trade Agreements (FTA) have come into effect, covering 23 countries and regions, and more than 8,000 kinds of zero-tariff imported products.

 

3

New Policy on Bank Account & Mobile Payment!

People’s Bank of China has implemented a new rule on “bank account & mobile payment”. How does the new rule affect us?

① Only one type Ⅲ bank account is allowed to be bound up with mobile payment account individually.

② Only one type Ⅱ account and 5 type Ⅲ bank accounts at most are allowed for individual. 

③ The allowable account balance has been increased by 2,000RMB, and daily accumulative spending amount has been decreased by 2,000RMB.

4

China Ban All Bitcoin & Cryptocurrency Websites!

China reportedly blocks anyone in the country from accessing websites that offer cryptocurrency trading services or initial coin offerings (ICOs).

Advertisements relating to Bitcoin and other virtual currencies have also been scrubbed from search engines and social media in the country.

5

CHINA To Cut The VAT Rates & Change Tax Standard!

The State Council decided to deepen the VAT reform measures to reduce the tax burden further of the market subject and unified the standard for small-scale taxpayers, starting from May 1.

6

New Policy! Can Buy House Without Residence In China Now!

There is a hard-and-fast rule for house-purchase: 

More than one year of living and working in China, but the latest news changed the rule!  Now providing the working certificate and business license then you can purchase a house in Guangzhou!

7

China to Raise Individual Income Tax Threshold！

8

USD from These Countries Can’t Be Transferred into Your Account?

There are a number of foreigners doing foreign trading business in China, but what if the countries of your clients were sanctioned by USA or EU, which may lead to difficulty in remittance? Thus, it is suggested that you must check and inspect in advance to ensure the success of remittance when doing business with clients from high-risk countries.

9

China to Launch New Anti-tax Avoidance & Strict Punishment!

New anti-tax avoidance clauses were added into personal income tax, which may hit the act of off-shore tax evasion hard!

10

New Measures Let You Pay Less Individual Tax In China!

China is set to introduce a range of new allowances that could save taxpayers tens of thousands of yuan a year. It’s worth mentioning, the new allowance are not only aimed at Chinese nationals but foreign residents.

11

Notice! Have You Received This Message from Bank Recently?

Many of our friends have received a message from banks as below these days, worryingly, they asked HACOS, ‘what is this all about’? Well, let’s figure it out!

12

ABC Bank Removed English Interface of Online Banking!