Administration Regulations on Direct Selling released by the State Council takes effect as from Dec 1, 2005. With studies, related regulations on transformed enterprises as Circular of Ministry of Foreign Trade and Economic Cooperation, State Administration for Industry and Commerce, State Bureau of Domestic Trade on Related Matters on Foreign Invested Multi-level Marketing Enterprises Transforming Selling Methods (No.455, 1998), Regulations of Related Matters in Implementation of Circular on Related Matters on Foreign Invested Multi-level Marketing Enterprises Transforming Selling Methods (No.31, 2002), State Administration for Industry and Commerce Circular on Registration of Branches of Multi-level Marketing Transformed Enterprises of Foreign Investment (No.88, 2002), State Administration for Industry and Commerce Circular on Registration of Alteration of Branches of the Former Enterprises of Foreign-invested Multi-level Marketing and Non-employed sellers of Transformed Stores Sales and employed sellers (No.13, 1999) and State Administration For Industry and Commerce Reply on Decision of Dealing with Regulations-violating Operations of Transformed Enterprises of Foreign Investment (No.6, 2003) will be terminated as from Dec 1, 2006.

As from Dec 1, 2006, related departments will investigate those without direct selling permission, but engaged in business operations by means of stores and employing sales people (here refer to people who are not the formal employees of the enterprises, but earn money by prompting sales for the enterprises) and give punishment in accordance with Article No.39 of Administrative Regulations on Direct Selling.

Ministry of Commerce
State Administration for Industry and Commerce
Dec 31, 2005

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