The New China Exit-Entry Law

Table of Contents
The following pages constitute a high level summary of
changes in China entry and exit procedures. The information
provided remains current as of September 1, 2013 but can be
expected to change without any advance notice.
Summary:
xPg. 3-4:
Recent Major Changes Enacted in the
China Work Authorization/Entry Process
xPg. 5:
New and Modified Visa Categories
xPg. 6-7:
China Work Authorization Process
xPg. 8:
Exit-Entry Law’s Effects on Employers
The New China Exit-Entry Law
FAQ:
xPg. 9:
Commonly Asked Questions
How To:
xPg. 10:
Maintain Compliance and Avoid Potentially
Intrusive, Time-Consuming Investigations
About Us:
Compliments of:
xPg. 11:
Pearl Law Group
You are welcome to use these materials within your company. Please do not distribute externally
without first requesting permission. For a soft copy, please email us at [email protected].
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Recent Major Changes in the China Work
Authorization/Entry Process
Recent Major Changes… (cont’d)
¡ Enforcement of 90-day rule (limit on cumulative stay in a calendar year on a business visa, irrespective of written duration of
stay or number of entries allowed on visa)
i Stemming from authorities’ belief that many foreign nationals are
gainfully employed in China while on business visas
i May only arise when employee visits PSB to secure permit
¡ Extended processing times
i In Shanghai, Beijing and Guangzhou, the employment license
process now requires 15 working days of processing time
i Residence permit filings require 7 working days in Shanghai,
whereas Beijing and Guangzhou require 15 working days.
¡ Heightened enforcement climate
Non-criminal record certificate requirement
i As of July 1, 2013, Beijing will require that new employment license applicants procure a non-criminal record certificate
i Document, issued by the judicial or public security authorities in
the applicant’s home country, must be legalized by appropriate
Chinese consular post
¡ Increasingly strict enforcement of longstanding policies
i In many cities, the requirement for a bachelor’s degree has
become virtually compulsory
i The mandatory retirement age (55 for women, 60 for males) is being more stringently enforced
¡ Unmarried Partners
i Effective immediately: Unmarried, cohabitating foreign residents in
Shanghai can no longer apply for residence permits as dependents. A certificate of cohabitation will not be accepted as a qualifying document to obtain a dependent residence permit.
i Couples who have previously obtained a dependent residence
permit, however, will be allowed to renew the permit.
¡ New Requirements: Photos and Interviews
i Digital photos will be taken of every expatriate (16-60 yrs) by
Shanghai PSB, for confirming identities at immigration interviews
and printing on each visa receipt (replacing the travel paper to allow foreigners to travel within China while the PSB is holding their
passports).
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¡ New Requirements: Medical Exams
i Shanghai: Principal applicants/family members are required to
appear at the Shanghai PSB for interviews for initial visa applications (16-60 yrs); medical examinations required (18-70 yrs).
¡ New Requirements for Family Members
Family members (16-60 yrs) must be present at Shanghai PSB with
principal applicant to apply for initial residence permit. Those holding Q1/S1 visas may apply directly for residence permits without further evidence of family relationships (it’s advised to bring copies of
marriage and birth certificates). Those entering without either (Q1/
S1) will need to provide notarized (by overseas office) and legalized
(by overseas Chinese consulate) certification. Expatriates' family
members may apply for residence permits if:
i Dependent, biological children of both expatriates, with a notarized (by overseas office) and legalized (by overseas Chinese
consulate) birth certificate showing the full names of both. Children (and stepchildren) traveling with only one biological parent
must have written consent from the other biological parent allowing the travel, notarized and legalized, accordingly. Children
adopted in China, will have the appropriate documentation from
Chinese authorities, which need not be notarized. Parents should
provide a notarized adoption certificate for children adopted outside of China and, if applicable, written consent from the other legal parent allowing travel.
i Both expatriates have owned real estate property together
(overseas or in China) with a notarized (by overseas office) and
legalized (by overseas Chinese consulate) property ownership
certificate listing names of both applicants.
i Both expatriates have cohabitated together abroad for at least two
years. Proof of cohabitation must be notarized (by overseas office) and legalized (by overseas Chinese consulate).
Foreign family members of Hong Kong, Macau, Taiwan, overseas
Chinese citizens and Green Card holders with Chinese passport
and work residence permit will be permitted to apply for a Q1 visa,
provided the residence permit of the principal applicant is valid for at
least 6 months
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Summary: Selected New Visa Categories
M Visa
Business visa, issued to individuals coming for business/trade activities
R Visa
Talent visa available to highly skilled foreign professionals whose expertise will be
in demand in China (eligible occupations
yet to be specified)
Q Visa
S Visa
China Work Authorization Process
Key steps PRIOR to entering China
Employment
License
Pearl to secure from
Labor Bureau in China;
Processing time=
15 working days
Q1– individuals seeking to reside with Chinese citizen/permanent resident
Q2– short-term visit for those with Chinese
citizen/permanent resident family members
Invitation Letter
S1– long-term visit by immediate family to a
foreign national residing in China
S2– short-term visit by non-immediate family
members and other parties
Processing time=
3 working days
Summary: Modified Visa Categories
F Visa
Persons engaging in exchanges, visits,
and inspections in China
X Visa
(study)
X1– issued for long-term study
X2– issued for short-term study*
J Visa
(journalism)
© Pearl Law Group 2013
Z-visa at Chinese
Consulate
Generally applied for in
home country, with
limited exceptions
Processing time=
1-4+ working days
J1– issued for long-term stay
J2– issued for short-term stay*
*Short-term refers to 180 days or less.
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Key steps AFTER entering China
Exit-Entry Law’s Effects on Employers
Medical
Examination
¡ Key point: The new law requires creating an information-
Simple Medical
check required
sharing platform to facilitate inter-agency enforcement.
New law expressly authorizes on-the-spot compliance checks
i Employers should maintain detailed records of employee
work authorization documents and time spent in China on
business visas
i Employers must maintain up-to-date company documentation
May be
completed in
China prior to Z
visa application
Issuance of report=
approx. 5 working days
New law provides for much more stringent financial penalties for
noncompliance, creating greater incentive for the authorities to
enforce new and existing policies more closely
i Law authorizes confiscation of revenue generated by employees lacking work authorization (specific details not yet issued)
Application for
Work Permit
Employee’s
passport
needed=
1 day
5 working days;
employee may begin
full work after
issuance
¡ New law prioritizes enforcement and compliance and will
likely lead to more detailed scrutiny of applications as well
as increased random application checks
A “visa application document certification letter” will serve as a
company guarantee, assuming legal responsibility for foreign
nationals’ work authorization applications
i Requirement has already been announced in Shenzhen and
will likely be extended to other cities
Application for
Residence Permit
Authorities are increasingly conducting random checks to verify
company data and information
i Procedural compliance with assignee PSB registration, company license registration, and timely filing of applications is
particularly important
Approx. 7 (Shanghai) or
15 (Beijing & Guangzhou) working days;
employee’s appearance
may be required
¡ More details of new law to be announced before long
i Communications surrounding new law may be impromptu
i Documentation requirements may change with little notice
Passport needed=
duration of the
processing period
It is important to plan assignments in advance, whenever possible, to minimize the effect of sudden changes
i Especially, the time burden associated with the non-criminal
record certificate requirement (mentioned on pg. 3), which
may soon be implemented across other cities
Domestic China travel may be possible during the
work permit processing period (varies by location,
only some cities will issue domestic travel permits)
© Pearl Law Group 2013
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Commonly Asked Questions About New Law and
its Effects on Employers
Maintaining Compliance and Avoiding TimeConsuming, Intrusive Investigations
¡ What can an employee already in China do while his work
permit application is pending?
While an employee cannot engage in any official activities on
behalf of the company, he can:
i attend meetings, conferences, and training sessions
i set up computer for work use and complete pre-employment
paperwork
i finalize any assignments from his previous position in the
sending country and interface with colleagues in China
¡ Will there be a grace period before implementation?
Although full details of the new law have yet to be finalized,
increased processing times and some new documentation requirements have already taken effect.
¡ Key point: The new law authorizes dramatically enhanced
penalties, making compliance all the more important
Due to explicit differentiation of documentation requirements at
90-day and 180-day periods of stay in China, expect stricter
review of employee periods of stay
Employers should maintain careful documentation for all their
employees working on site, as well as accurately document nationals’ time spent in-country
¡ As a result of mandatory coordination of data collection, au-
thorities will monitor employees’ time spent in China on
business visas
i Submitting
¡ What about employees who work in multiple locations?
Work authorization applications should be filed in the city where
the employee will spend the majority of his/her time.
¡ Should we make changes to our company processes?
As always, international assignments should be planned ahead
of time to minimize the effect of government delays–note the
entire process will now take at least two weeks longer.
¡ Will there be a list of full required documentation for each
new visa type provided?
A documentation list is available here:
http://cs.mfa.gov.cn/wgrzh/lhqz/sblhqz/t1070373.htm
work authorization applications for frequent travelers to China, while initially time-consuming, can save difficulty
later
¡ One of the government’s major perceived concerns is that
foreign nationals often work where they do not possess
work authorization
i A
simple means of promoting compliance may be a brief survey to identify employee’s primary work location and where
they are authorized to work
i Similar surveys should also be conducted on an ongoing basis to ensure all employees and their dependents hold valid
documents and have properly registered with local authorities
¡ What travel restrictions does the new law place on assign-
ees during the permit processing period?
i The
extension of residence permit processing to 7 or 15 working days (depending on the city) lengthens the period during
which assignees cannot travel abroad after initially entering
China on the Z visa.
i Issuance of domestic travel certificates may become rarer.
© Pearl Law Group 2013
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About Us: Pearl Law Group
Since 1995, the firm has attracted its prestigious corporate client base the
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