The Legal 500

Legal Developments in China

• Labeling Luxury Products Imported into China: - Why Do You Need A Seasoned Lawyer?

  Recently Guangdong Provincial Administration of Industry and Commerce ("Guangdong AIC"), a local administrative authority supervising business operations in its territory in China, revealed a list of jewelry manufacturers and distributors selling defective jewelry products in 2012. Some of internationally reputable jewel brands appeared on the list for non-compliance with Chinese labeling laws, regulations or standards, or for incorrect or improper engraving and/or labeling practices. As a result, Guangdong AIC slapped a large amount of fines on those companies and ordered them to recall all the defective products from the market. This exhibits how improper labeling has affected sale of products in China.
  - Haoliwen Partners

• The Supreme People’s Court Issued a Judicial Interpretation

  The Supreme People's Court of PRC has recently issued its "Rules on Several Issues Related to Law Application concerning Adjudication of Civil Disputes Arising from Monopolistic Activities" (the "Judicial Interpretation"), which will come into effect from June 1, 2012. This Judicial Interpretation has laid out rules on the allocation of burden of proof relating to the following three cases of monopolistic activities on the basis of the PRC Anti-Monopoly Law (the "AML") and the PRC Civil Procedural Law.
  - Haoliwen Partners

• China Customs New Interpretation

  For many products, tariff classification can be technically complex, confusing, and subject to multiple interpretations. Often several different Harmonized System Codes ("HS Code") may seem applicable for one given product with different tariff rates. Tariff classification is indeed a process of application of customs classification rules, including customs rulings and decisions, and misclassification may trigger severe legal consequences. The sad fact is, unfortunately, that many companies rely on non-legal professionals to determine the HS Codes for imports or exports. A recent interpretation issued by the General Administration of Customs of China ("GACC") (Circular No. [2012] 495 Shu-Fa-Fa) (the "Interpretation") reinforces the process of tariff classification as a legal matter, and formulates the test as to what counts for regulatory violation if tariff classification rules are improperly applied by the importer or exporter in a given case. If the legal defense is successful, misclassification may only be treated as a non-violation misclassification, with the possible obligation to pay up additional customs duties, if any, but without administrative or criminal consequences. The Interpretation took effect as from February 1, 2013.
  - Haoliwen Partners

• Will OEM catch you out?

  Original Equipment Manufacturing(OEM), particularly cross-border OEM, is perhaps most common model in the contemporary manufacturing world. It's now routine for Western companies to provide design and technology know-how and then to outsource production to China and other Asian countries where the labour needed to manufacture a product is comparatively inexpensive.
  - Haoliwen Partners

• A Second Look at NDRC’s Most Recent Enforcement Cases against Price Violations in 2013

  On January 4, 2013, NDRC declared that Samsung, LG and four Taiwanese firms were fined RMB 350 million for fixing the prices of LCD screens during the period from 2001 to 2006  (" LCD Case "). On January 16, 2013, Maotai, one of most famous wine brands in China, declared that they were investigated by NDRC for its monopolistic behaviors and they therefore would modify all their sales policies that had violated the 2008 Anti-monopoly Law of PRC (" AML "), in particular the resale price maintenance policy. This was closely followed by the declaration of WuLiangYe, another wine magnet in China, which announced on January 17, 2013 that they would also abolish all the sales policies in violation of AML, after an investigation of NDRC.
  - Haoliwen Partners

• CHINA gossIP - Intellectual Property Journal - March/April 2013

  In this issue:
  - HFG

• CHINA gossIP - Intellectual Property Journal - January/February 2013

  In this issue:
  - HFG

• Legal Risks in Commodity Classification for Customs Clearance [Customs&Trade]

  In July of 2007, an overseas projector manufacturer modified its video projector products (HS Code: 8528 3010, Duty Rate: 35-30%) into digital projectors (HS Code: 8471 6090, Duty Rate: 15-10%) through a series of technical methods, such as installing video connectors and crystal oscillators, covering up pre-set sockets, changing buttons, modifying relevant software, renovating outer packaging and product manuals. Later, its subsidiary in China imported such modified products under an HS Code applicable to digital projectors. After customs clearance, the company had the imported products re-modified into video projectors and sold them in China.
  - Haoliwen Partners

• Memorandum on “The Circular of The NDRC on the Issuance of RMB Denominated Bond in Hong Kong..."

  Special Administrative Region by Domestic Non-financial Institutions
  - Guantao Law Firm

• WHD IP Express No.1 2012/11

  CMTO Classification Is Not the Sole Criterion for Assessing the Similarity of Goods and Service
  - Wan Hui Da Law Firm