September 30, 2009

New Rules for Express Delivery Industry

On September 30, 2009, the State Post Bureau issued the Circular on Publishing the Standards for Approval of and Verifying the Qualifications for Express Delivery Business Licenses (the “Circular”), effective October 1, 2009. The Circular sets forth the procedures and documentation for express delivery business license applications, and further clarifies certain undefined terms in the newly revised Postal Law and the Administrative Measures for License of Express Businesses (the “Measures”). The Circular is a practical guideline and supplement to the Postal Law and the Measures, which were both issued earlier in 2009 and effective October 1, 2009. According to these rules, any enterprise involved in the express delivery business shall obtain a “license for express delivery business,” which will be granted by applicable postal authorities after verifying the adequacy of the service capability, quality control system, tracking system and delivery personnel, as well as the amount of registered capital of the enterprise. The Circular provides that only postal enterprises may deliver letters, and excludes other enterprises from this business. The rules also provide that foreign-invested enterprises are still not allowed to conduct express delivery service for letters in China.

Copyright ©2009 by Kaye Scholer LLP. All Rights Reserved. This publication is intended as a general guide only. It does not contain a general legal analysis or constitute an opinion of Kaye Scholer LLP or any member of the firm on the legal issues described. It is recommended that readers not rely on this general guide but that professional advice be sought in connection with individual matters.References herein to "Kaye Scholer LLP & Affiliates," "Kaye Scholer," "Kaye Scholer LLP," "the firm" and terms of similar import refer to Kaye Scholer LLP and its affiliates operating in various jurisdictions.

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