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IMPACT – MEDIUM
What is the change? China’s National Immigration Administration has begun accepting applications for entry and exit documents at any Public Security Bureau in China.
What does the change mean? Applicants may now apply for Chinese passports and permits to travel from mainland China to Hong Kong, Macau or Taiwan at any Public Security Bureau in China. Previously, applicants had to apply for these documents at the office located in the district where their household was registered.
Additional information: The immigration administration has also launched a new online portal for mainland Chinese citizens in need of entry-exit application services, including scheduling appointments at the Public Security Bureau.
Analysis & Comments: The recent developments are part of China’s efforts to centralize immigration processes and ease travel procedures to Hong Kong, Macau and Taiwan. The changes will save some applicants time because they will no longer have to travel to apply for entry and exit documents in their home district and will have an easier time booking appointments.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? Chinese New Year falls on Feb. 5 this year and offices in China, Singapore and many other Asian countries will close in observance.
What does the change mean? Government and private offices in China and other countries will be closed during the Lunar New Year celebration known as the Spring Festival. Applicants with time-sensitive fillings should plan ahead.
Background: Asian countries celebrating Lunar New Year will welcome the Year of the Pig on Feb. 5. Days on which public offices will close vary from country to country:
Chinese consular missions around the world are expected to observe the Lunar New Year and to be closed on Feb. 4 and 5, although each mission will publish individual holiday closures. Consular missions in India, for example, will be closed Feb. 4-8 in observance of Chinese New Year. Employees and employers should consult their local mission regarding holiday closures, as they will vary by location.
Analysis & Comments: Companies are encouraged to file work permit and other applications as early as possible before the holiday period.
What is the change? China will soon allow 144 hours of visa-free transit in five additional cities.
What does the change mean? Beginning Jan. 1, travelers from 53 countries who have proof of onward travel will be permitted to visit Chengdu, Kunming, Qingdao, Wuhan and Xiamen for up to 144 hours without obtaining a visa. The 144-hour visa-free policy is currently only available in four regions of China, including areas in and around Beijing and Shanghai.
Background: China allows nationals of 53 countries to transit through any of 18 Chinese cities without first obtaining a visa. In most locations, visa-free transit stays are currently capped at 72 hours. Stays of up to 144 hours are permitted in four locations, with plans to extend 144-hour visa-free transit to five additional cities beginning Jan. 1.
The 53 countries covered by the 144‑hour visa-free policy are as follows:
Analysis & Comments: The change will double the allowable stay for travelers in transit through Chengdu, Kunming, Qingdao, Wuhan and Xiamen from 72 hours to 144 hours. Travelers should note, however, that while tourism, social visits and business activities are permitted on visa-free transit stays, productive work activities are not. Travelers should also take note of applicable geographic restrictions (e.g., travel only within select provinces during their stays).
What is the change? China’s National Immigration Administration is set to implement a number of measures to improve entry and exit services for foreigners and citizens of the People’s Republic of China.
What does the change mean? The 22 new measures are set to be implemented in phases by the first quarter of 2019. The first phase, implemented in September, introduced new processes by which foreigners in certain situations may receive instant acceptance and approval of applications. In addition, the first phase introduced changes to ease travel and immigration processes for PRC citizens, most notably through removing the requirement to renew immigration documents (i.e., passports, exit-entry permits for Hong Kong, Macao or Taiwan) in the registered household district, or hukou.
Background: Authorities announced a number of new process changes to improve entry and exit services and further open up the country’s immigration system. The first phase of changes, implemented in September, include:
Analysis & Comments: The new measures look to streamline and improve immigration services and the services offered by entry and exit offices, particularly for PRC citizens. The addition of scenarios in which instant acceptance and approval of urgent applications by foreign nationals is granted may greatly benefit those who are traveling to China for business or tourism but who lose their passport and must be reissued a temporary visa before they exit mainland China.
What is the change? China has instituted a new biometrics requirement for visa applicants in the United Kingdom.
What does the change mean? Applicants ages 14 through 70 who are applying for Chinese visas in the U.K. will be required to provide fingerprints and a digital photograph as part of the application process.
Background: The biometrics requirement took effect this month. Similar requirements have been implemented recently in other parts of Europe, as summarized below:
Analysis & Comments: Visa applicants should factor in additional time to fulfil the biometrics appointment and the possibility of long queues during the first few weeks of this requirement.
What is the change? Shanghai has rolled out an electronic application process to streamline issuance of 144-hour transit visa exemptions.
What does the change mean? The process allows travelers to report their entry information online before traveling and use self-serve machines to print out their form and fill it out upon arrival.
Background: The transit visa exemption policy applies to nationals of 53 countries who present an onward departure ticket to a third country, allowing visa-free stays of up to 144 hours in the Shanghai, Zhejiang and Jiangsu regions.
Another automated service that launched Nov. 1 allows travelers who have reported their entry information in advance to scan their passport or a QR code upon arrival at a self-service form-filling kiosk, which prints out the traveler’s entry card, eliminating the need to manually fill out the form. These self-service form-filling machines are currently available at Pudong and Hongqiao International Airports in Shanghai and are expected to be expanded to all Shanghai ports of entry.
Analysis & Comments: The new services are aimed at streamlining immigration checks for travelers who are exempt from transit visas and reducing queues during the China International Import Expo in Shanghai Nov. 5-10. The online entry pre-declaration will also inform travelers if they do not qualify for the transit visa exemption, thereby reducing the risk of being turned away upon arrival.
What is the change? Offices in China will close Monday for the Mid-Autumn Festival and Oct. 1-7 for National Day.
What does the change mean? Employers and applicants should plan around the holiday closures and file all time-sensitive applications before the closures.
Background: The Mid-Autumn festival is a harvest celebration that falls on the full moon of the eighth month of the lunar calendar, Sept. 24 this year. Hong Kong, South Korea and Taiwan also observe the holiday, but closure dates may vary.
National Day, meanwhile, is celebrated Oct. 1 of every year in China to commemorate the founding of the People’s Republic of China. Offices will be closed Oct. 1-7 to mark this holiday.
Analysis & Comments: Employers should plan around the holidays and anticipate a backlog when offices reopen.
What is the change? The Beijing Entry-Exit Authority has announced a number of immigration measures aimed at attracting high-talent foreign workers to Beijing, and especially to the Zhongguancun Science Park (Z-Park).
What does the change mean? The measures provide a number of immigration and business travel incentives for Z-Park workers and their families.
Background: Z-Park is one of Beijing’s tech hubs and is known as China’s “Silicon Valley.” Authorities announced new incentives last week aimed at helping Z-Park businesses recruit high-level foreign talent. They include:
The new policies add to efforts by local authorities to simplify immigration policies for high-talent foreign workers. Similar simplified immigration policies are in place in the China (Shanghai) Pilot Free Trade Zone, the Zhangjiang National Innovation Demonstration Zone and the China (Guangdong) Pilot Free Trade Zone. It remains to be seen if the new measures introduced in Beijing and the Z-Park are extended to the other high-talent areas in Shanghai and Guangdong.
Analysis & Comments: Officials hope the measures will provide extra incentives for high-talent foreign nationals to work at a Z-Park registered company. Z-Park companies are encouraged to work with their Deloitte professional to determine what immigration and travel options are available for foreign workers and their families. Deloitte and BAL will continue to monitor incentive offerings in high-talent areas in China and inform clients if/when the incentives are also introduced in Shanghai and Guangdong.
IMPACT – HIGH
What is the change? Authorities in mainland China will soon begin issuing new residence permits to residents of Hong Kong, Macao and Taiwan.
What does the change mean? The permits will allow residents of Hong Kong, Macao and Taiwan to live, work and study in mainland China without having to obtain any other separate authorization. They will be valid for five years and will become available Sept. 1.
Background: The State Council announced on Aug. 3 that it would stop issuing work permits to residents of Hong Kong, Macao and Taiwan. Authorities subsequently stopped accepting work permit applications and issued new regulations on the issuance of residence permits for these residents beginning Sept. 1.
Residence permit applicants will be required to complete a form and provide provincial authorities documentation confirming their proof of residence, employment or schooling. Documentation establishing residence in mainland China may include housing lease contracts, property certificates or purchase contracts. Documents establishing employment may include business licenses, labor contracts or labor relations certificates, while students will be asked to provide proof of attendance such as a student ID card or other materials that can establish continuous schooling.
Residence permits, which will be valid for five years, will be available to residents of Hong Kong, Macao and Taiwan who intend to stay in mainland China for more than six months.
BAL Analysis: The process for obtaining the new residence permits is expected to be significantly easier than obtaining work or study permits. The issuance of residence permits will mean, among other things, that workers from Hong Kong, Macao and Taiwan will be fully protected under Chinese labor and contract law. Employers will likely see increased costs related to social insurance and housing fund contributions. Those with questions about how the new residence permit process will work should contact BAL.
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What is the change? The State Council recently indicated that China will soon waive work permit requirements for residents of Hong Kong, Macao and Taiwan.
What does the change mean? Individuals holding a Mainland Travel Permit for Taiwan Residents or a Mainland Travel Permit for Hong Kong and Macao Residents will soon be able to work in mainland China without obtaining work authorization. Some cities, including Shenzhen and Guangzhou, have stopped issuing work permits to these residents. Other cities, including Beijing and Shanghai, continue to require work permits pending further notice. The Ministry of Human Resources and Social Security is expected to issue a regulation by the end of the month lifting work permit requirements for residents of Hong Kong, Macao and Taiwan across the mainland.
Background: The State Council announced on Aug. 3 that it would stop issuing work permits to residents of Hong Kong, Macao and Taiwan, providing an indication that such individuals will no longer be required to obtain work authorization (like foreign nationals do) to work in mainland China. Even after this change takes effect, however, residents of Hong Kong, Macao and Taiwan will still be required to meet other entry criteria before they can legally enter and work in mainland China. Authorities may also set up a new registration process, though details on this are not yet known.
BAL Analysis: The waiver of work authorization requirements for residents of Hong Kong, Macao and Taiwan is a major change that will mean, among other things, that these workers would be fully protected under Chinese labor and labor contract law. And while it will generally be easier for employers to employ residents of Hong Kong, Macao and Taiwan, they may see increased costs related to social insurance and housing fund contributions. Employers will likely have the option of assigning such workers to third-party employers, whereas now they can only work for the company sponsoring their work permit. Additional details are expected in the coming weeks as Chinese authorities will move to implement this change. BAL will continue following developments and will provide updates as information becomes available.
This alert has been provided by the BAL Global Practice group in China. For additional information, please contact china@bal.com.