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]. © Pearl Law Group 2013 © Pearl Law Group 2013 2 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). © Pearl Law Group 2013 3 ¡ 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 © Pearl Law Group 2013 4 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. 5 © Pearl Law Group 2013 6 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 7 © Pearl Law Group 2013 8 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 9 © Pearl Law Group 2013 10 About Us: Pearl Law Group Since 1995, the firm has attracted its prestigious corporate client base the old-fashioned way – by doing it better, faster, smarter – and always keeping true to the aim of being the business immigration firm of choice. Pearl is focused on being innovative, resourceful and reliable while treating every case as VIP and handling with the utmost care and urgency. WORLDWIDE COVERAGE xServices in over 100 countries, with centralized contact and oversight FIRST CLASS STANDARDS xAward-winning service and top-ranked attorneys xAccessible, proactive, responsive and cross-trained professionals FULL SERVICE xComplete range of business immigration processing xCustomized program management and industry benchmarking SMART TECHNOLOGY xSophisticated case management and compliance tools xComprehensive, on-demand reporting solutions TRANSPARENCY AND VALUE xAll-inclusive flat fees xFree online tools and many other resources Pearl is a founding member of ABIL, a privately owned entity that combines over 1200 professionals in 50 cities worldwide. ABIL has three times as many top-rated immigration lawyers, all aligned with a single purpose: Sharing expertise, best practices and technology to deliver exceptional client service. www.abil.com Contact our Global Immigration Team: [email protected] © Pearl Law Group 2013 11 © Pearl Law Group 2013 12
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