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IMPACT – MEDIUM
What is the change? Australia and China have signed a landmark free-trade agreement.
What does the change mean? The China-Australia Free Trade Agreement, or ChAFTA, was crafted to provide greater access to Australia and China for business visitors, intra-company transferees, contractual service suppliers and company executives.
Background: Australian Minister for Trade and Investment Andrew Robb and Chinese Commerce Minister Gao Hucheng signed ChAFTA Wednesday after the deal was agreed to in principle in November 2014.
Australia’s commitments under the agreement include providing stays of four years, with possible extensions, for Chinese intra-corporate transferees and contractual service suppliers; stays of up to three months for Chinese installers and servicers; stays of 90 days for business visitors or six months, with possible extension, for business visitors who are service sellers; and stays for spouses and dependants equal to the stays provided to principals, provided that period is for at least 12 months.
China’s commitments under the agreement include providing initial stays of up to three years for intra-corporate transferees (including executives, managers and specialists); initial stays of up to one year or the duration of the contract for contractual service providers; stays of up to 180 days or the duration of the contract for installers and maintainers; stays of up to 180 days for business visitors; and stays for spouses and dependants equal to the stays provided to principals, provided that period is for at least 12 months.
ChAFTA follows similar agreements between Australia and Japan (JAEPA) and Australia and South Korea (KAFTA). The Australia-China agreement may be the most significant for Australia, however, as China is the country’s biggest trading partner.
BAL Analysis: It will still take some time for the agreement to enter into force; however, ChAFTA represents a liberalisation of barriers across many categories of workers, business visitors and investors.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 9683856
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – HIGH
What is the change? The Shanghai Public Security Bureau has announced several new immigration policies to simplify visa application processes for foreign employees, especially foreign talents working in high-tech and innovative sectors.
What does the change mean? Among the changes, Shanghai will streamline permanent-residence procedures for foreign talents, simplify visa-application procedures for students, investors and others, and broaden the visa waiver and visa on arrival programs.
Details: The main changes are:
BAL Analysis: The changes are welcome news for companies and foreign employees in Shanghai and could lead the way for other jurisdictions to follow suit with similar changes. While the changes appear to benefit most companies in Shanghai, the impact of the changes and qualifying criteria will be clearer once implemented.
This alert has been provided by the BAL Global Practice group in China. For additional information, please contact china@bal.com.
What is the change? Germany has launched a program to provide Chinese business travelers visas within 48 hours.
What does the change mean? Chinese business travelers can receive a visa within 48 hours at no additional cost. Applications for business visas previously took about 10 business days to process.
Background: The change is part of broader efforts to reduce wait times for Chinese and German nationals traveling to each other’s countries. After the two countries reached consensus last fall, Germany launched 48-hour approval for business visas for Chinese travelers May 1. China has not yet implemented a corresponding program for German business travelers, but processing times for visit and family visas between the two countries are under discussion and changes may be implemented at some point this year.
BAL Analysis: The change represents a significant improvement in processing times for Chinese nationals traveling to Germany for business. China has not yet implemented a corresponding program, and BAL will continue to monitor whether such a program is forthcoming.
What is the change? The Shenzhen Labor Bureau has launched an online system for work permit applications.
What does the change mean? While the online system speeds up the initial approval, employers are cautioned that the approval letter must be stamped by the employer and signed by the employee, which can delay the process.
BAL Analysis: Applicants should note that despite the faster online submission of work permit applications in Shenzhen, the overall processing time may still take several business days, as it is dependent on how long it takes the employer to have the approval letter stamped and then signed by the employee. Companies that require several steps before stamping the approval letter – such as permission from a manager or human resources department – will see longer processing times that will impact the issue date of the work permit.
What is the change? Beginning June 1, Singapore will extend multiple-journey visas valid for 10 years to nationals of the People’s Republic of China.
What does the change mean? Chinese nationals who have previously visited Singapore and whose visa applications are supported by relevant Singaporean agencies will automatically be granted the 10-year visas, allowing them to make repeat trips to Singapore without having to renew their visas as often.
Background: Chinese nationals applying for a visa will be considered for the 10-year MJVs if they have visited Singapore in the past. The same visas will be extended to the main applicant’s spouse and children below the age of 21. The application process and government fees are unchanged. MJV holders will also have faster border processing by being able to use automated immigration clearance service at Singapore’s airports.
BAL Analysis: The longer validity will benefit frequent business travelers from China. However, they are reminded that while the MJV allows repeat entry during the validity period, it does not lengthen the permitted duration of each stay, which generally ranges from 14 to 30 days depending on the discretion of the immigration officer.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
What is the change? The issuance of a new Z visa or residence visa does not automatically void a previously issued valid 10-year business (M), tourist (L) or study (F) visa.
What does the change mean? Foreign travelers can continue to enter China with existing 10-year business, tourist or study visas, depending on the purpose of their visit, even if a new Z visa or residence permit was issued.
Background: The Public Security Bureau and border security officials in China have verbally confirmed that a new Z visa or residence visa will no longer invalidate an existing 10-year L, M or F visa and a foreign national holding both visas may enter China with either visa, depending on the purpose of that trip.
Previously, Chinese officials treated a new visa as automatically canceling an existing visa even without a void stamp.
BAL Analysis: The policy represents a change in practice that provides more flexibility to foreign employees; however, employees are still bound by the terms of the visa and should enter using the visa that is appropriate for the purpose of each trip.
What is the change? China has suddenly added a new application requirement for Chinese business visas filed in the U.K.
What does the change mean? All business visa applications must include copies of identification of the host in China who signed the Chinese invitation letter. The type of ID varies depending on the nationality of the host.
Background: The Chinese Visa Application Service Centre in the U.K. imposed the new requirement without notice March 27.
Business travelers were already required to obtain invitation letters from hosts in China. Under the new rules, all business visa applications must now include proof of identity of the host in China who is inviting the business traveler. If the invitation letter was signed by a Chinese national, a copy of his or her ID card must be included in the business visa application. If the host is not a Chinese national, a photocopy of his or her passport photo page and Chinese residency is now required as part of the business visitor’s visa application.
The name and signature on the ID must match those on the letter of invitation.
BAL Analysis: Those planning business travel should plan to request the ID of their host in China to avoid delays in their visa applications.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
What is the change? China began issuing 10-year, multiple-entry visas to Canadian business travelers and tourists this week.
What does the change mean? The arrangement significantly improves visa procedures for Canadians who frequently travel to China.
Background: Canada began issuing 10-year visas to Chinese travelers in 2011. The issuance of 10-year, multiple-entry visas to Canadians is a significant improvement to the visa procedures for Canadians traveling to China. Previously, business and tourist travelers were eligible for multiple-entry visas for up to five years. While the change reduces red tape, it does not affect the permitted length of stay. Business travelers, for example, are permitted to remain in China for up to 90 days, the same time they were allowed before the change to the 10-year visa scheme.
BAL Analysis: The change will facilitate business travel and reduce the inconvenience of having to apply for a visa more frequently.
This alert has been provided by the BAL Global Practice group and our network provider located in Canada. For additional information, please contact your BAL attorney.
What is the change? China will welcome the Year of the Goat and observe a national holiday Feb. 18-24.
What does the change mean? Applicants should expect delays during and immediately following the holiday closures.
Background: The first day of the Chinese lunar year is Feb. 19. China observes a full week of festivities, beginning new year’s eve. Taiwan will close for six days, Feb. 18 -23, and other Asian countries will observe shorter public holiday periods on Feb. 19-20.
BAL Analysis: Employers should anticipate office closures and are encouraged to file time-sensitive applications before the holiday break to avoid delays.
What is the change? Employees working for select foreign enterprises in the city of Beijing can now obtain three-year work permits.
What does the change mean? Employees who qualify will no longer need to apply annually to renew their work permits.
Background: Beginning Dec. 25, 2014, authorities began issuing three-year work permits to employees at select foreign enterprises in Beijing. Before the change, the work permits were only valid for one year. The three-year work permits are available to employees working for wholly foreign-owned enterprises, branch offices of foreign companies and ventures or cooperatives between Chinese and non-Chinese companies in Beijing.
Documentation requirements are fairly stringent. In order to obtain a three-year work permit, an application must include an original contract, original passport and original business license (or business registration certificate). All supporting documents must have a validity period of at least three years, otherwise a three-year work permit will not be issued.
For now, there is no corresponding residence program. This means that even applicants who qualify for a three-year work permit can only obtain one-year residence visas, which must be renewed annually.
BAL Analysis: The new program makes it easier for foreign enterprises in Beijing to recruit and retain foreign employees because those employees can now obtain permits to work for three years rather than one. While there is no corresponding residence program, the new work permit system is nonetheless a boon for foreign enterprises covered by the program.