Legal News: A Major Step Taken in Civil and Commercial Litigation: Easy Online Filing for Cross-Border Litigation Initiated by Foreigners and Foreign-based Residents

Legal News: A Major Step Taken in Civil and Commercial Litigation: Easy Online Filing for Cross-Border Litigation Initiated by Foreigners and Foreign-based Residents

Legal News

I. A Major Step Taken in Civil and Commercial Litigation: Easy Online Filing for Cross-Border Litigation Initiated by Foreigners and Foreign-based Residents

On February 3, PRC Supreme People’s Court passed a legislation1 with immediate effect to enable cross-border cases to be filed online.

1. Who can initial the online case filing?

• Foreign Individuals/enterprises or organizations incorporated abroad.

• Residents of Hong Kong SAR, Macau SAR or Taiwan/ enterprises or organizations incorporated in Hong Kong SAR, Macau SAR or Taiwan.

• Chinese citizens who have their habitual residences in foreign countries, Hong Kong SAR, Macau SAR or Taiwan.

2. What kinds of cases can be filed online?

• First-instance civil and commercial litigations

3. What are the online application procedures?

• Passing the identity verification of the litigant

Note: a scan of notarized/legalized passport might be requested2

• Entrusting a PRC registered lawyer or other agents for future litigation procedures by submitting a scan of power of attorney

Note: a video witness can be conducted by the court to exempt the time-consuming notarization and legalization process of power of attorney provided that the litigant entrusts a PRC registered lawyer

• Submitting statement of claim, evidence and materials online (or conducted by the entrusted PRC registered lawyer)

4. When to know if the case filing has been accepted or not?

• Within 7 days upon receipt of the case filing by the court

Should you want to know more details about the online case filing formalities, please feel free to contact us at asiallians@asiallians.com.

(http://www.court.gov.cn/fabu-xiangqing-286341.html)

II. Broadened Updated Catalogue of Encouraged Industries of Hainan

In our previous newsletter3, we have introduced a new tax preferential policy in Hainan, in which an enterprise simultaneously meeting the following three pre-conditions shall be entitled to enjoy a reduced corporate income tax rate of 15%4:

• The enterprise operates substantially in Hainan.

• The revenue of the enterprise’s primary business constitutes more than 60%of its total revenue.

• The enterprise’s primary business activities are within the Catalogue of Encouraged Industries of Hainan (dynamically adjusted).

Recently, Hainan updates its Catalogue of Encourage Industries by newly adding 143 sub-industries to grant wider access to investors who can enjoy the preferential tax policy. We selected some eye-catching industries for potential foreign investors:

Till now, the updated Hainan Catalogue contains the widest encouraged industries in China, and should you want to check if your business is within the Catalogue, please feel free to contact us at asiallians@asiallians.com.

(http://www.chinatax.gov.cn/chinatax/n810341/n810825/c101434/c5161229/content.html)

III. Heavier Liabilities and Sanctions for Pollution Discharge Permit

For many years, enterprises involved in the discharge of pollutants in China shall apply for a Pollution Discharge Permit (the “PDP”), otherwise, for enterprises discharging pollutants without PDP, corresponding sanctions shall be imposed accordingly.

From the legal point of view, PRC PDP mechanism was addressed in scattered provisions across different PRC laws and regulations6. To better manage and control the PDP mechanism, recently, a new policy will enter into force as of March 1, 20217. We hereby highlight some major changes of PDP mechanism worth your attention:

(http://www.gov.cn/zhengce/content/2021-01/29/content_5583525.htm)

Should you have any inquiry about the above legal news, please contact us at asiallians@asiallians.com. As always, Asiallians remains at your service and our teams are currently mobilized in all our offices in Mainland China, Hong Kong and Taipei.

 

1. Several Provisions on Providing Online Case Filing Services for Cross-border Litigants

2. The identify verification can be conducted through an online platform of National Immigration Administration. If failing to pass this platform, then, the court will do the verification manually, and a scan of notarized/legalized passport is needed. Applicants will be notified of the result of passing the verification or not within 3 working days.

3. See: http://asiallians.com/china-legal-update-ncp-outbreak-
update-beijing-covid-19-outbreak/

4. Compared to 25% which is the common corporate income tax rate in China

5. total mercury content shall be lower than 1PPM

6. Such as Administrative Measures for Pollution Discharge Permit (for Trial Implementation), Law on Prevention and Control of Water Pollution, Law on the Prevention and Control of Air Pollution, and Environmental Protection Law.

7. On January 29, 2021, PRC State Council released Provisions for Pollution Discharge Permit Management, which will take effect on March 1, 2021.

8. Article 57 of Administrative Measures for Pollution Discharge Permit (for Trial Implementation)

9. Article 33 of the new Provisions for Pollution Discharge Permit Management

10. Article 35 of Administrative Measures for Pollution Discharge Permit (for Trial Implementation)

11. Article 21 of the new Provisions for Pollution Discharge Permit Management

12. Article 14 of the new Provisions for Pollution Discharge Permit Management

 


Feel free to contact asiallians@asiallians.com for more information.