Administrative Regulations on Contracting Foreign Projects

Administrative Regulations on Contracting Foreign Projects


Administrative Regulations on Contracting Foreign Projects

Order of the State Council No. 527

July 21, 2008

The Administrative Regulations on Contracting Foreign Projects, which were adopted at the eighth executive meeting of the State Council on May 7, 2008, are hereby promulgated and shall come into force as of September 1, 2008.
Premier Wen Jiabao

Administrative Regulations on Contracting Foreign Projects

Chapter I General Provisions

Article 1 These Regulations are formulated to regulate the administration of the contracting of foreign projects and enhance the sound development of the contracting of foreign projects.

Article 2 For the purpose of these Regulations, the term "contracting foreign project" refers to an activity of a Chinese enterprise or any other unit (hereinafter referred to as unit) of contracting an overseas construction project (hereinafter referred to as construction project).

Article 3 The state encourages the units to contract foreign projects and improve the quality and level of such projects.
The relevant departments under the State Council shall formulate and improve the policies and measures favorable for contracting foreign projects, and establish and improve the service system and risk prevention mechanism for contracting foreign projects.

Article 4 When contracting foreign projects, the units shall safeguard national interests, social public interests and the legal rights and interests of their staff being sent abroad.
A unit contracting foreign project shall abide by the law of the country or region where the construction project is located, stick by the contract, respect the local customs and habits, pay attention to ecological and environmental protection and promote the local economic and social development.

Article 5 The competent commerce authorities of the State Council shall take charge of the supervision and administration of the foreign project contracting activities, and the relevant departments under the State Council shall take charge of the relevant administrative work within their respective scope of duties and functions.
The competent commerce authorities of the State Council shall organize and arrange construction enterprises to participate in contracting foreign projects.
The competent department of commerce of the people's government of a province, autonomous region or municipality directly under the Central Government shall take charge of the supervision and administration of the foreign project contracting activities under their respective jurisdiction.

Article 6 Any association or chamber in contracting foreign projects shall provide information and training services thereabout for its members according to its articles of association, work out industrial norms according to law, give play to its role of coordination and self-discipline, safeguard fair competition and protect the interests of its members.

Chapter II Qualification for Contracting Foreign Projects

Article 7 To contract foreign projects, a unit must get the foreign project contracting qualification in accordance with these Regulations.

Article 8 To apply for the said qualification, a unit shall satisfy the following requirements:
1. Having the status of a legal person, and, for a project constructing unit, having the special grade or grade A qualification certificate issued by the competent commerce authorities or any other relevant department;
2. Having the capital and technical professionals required for contracting foreign projects, and having at least two managers who have engaged in contracting foreign projects for two years or more;
3. Having the security maintaining capability required in contracting foreign projects;
4. Having the rules and regulations for guaranteeing project quality and production safety, and having no big project quality problem or any relatively serious safety accident or more serious ones in the last two years; and
5. Having a good business reputation and having no material breach of contract or serious illegal operation in the last three years.

Article 9 To apply for the foreign project contracting qualification, a central enterprise or any other unit directly under the Central Government (hereinafter referred to as central unit) shall file an application form together with the certifications specified in Article 8 of this Regulation with the competent commerce authorities of the State Council, while any other unit shall file an application form together with the certifications specified in Article 8 of these Regulations with the competent commerce authorities of the people's government of the province, autonomous region or municipality directly under the Central Government of the place where it is located.
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