Approvals: Getting through the Red Tape
Certain industries need specific permits. You likely need to jump through these manufacturing-specific regulatory hoops.
Before construction
Before you build, you likely need to take the following steps in this order:
1. | Get preliminary project approval from the local office of the State Reform and Development Committee (SRDC) and get pre-approval from the local office of the State Administration for Environmental Protection (SAEP). |
2. | Depending on your company’s industry and manufacturing processes, SAEP may require you to file an environmental impact assessment (EIA) report. In the EIA report, you need to apply for discharge permits for pollutants that your company will discharge. At the same time, you may be required to produce Safety Assessment and Healthcare Assessment reports — this also depends on your company’s industry. |
3. | Obtain the Construction Use Land Planning Permit and the Construction Project Planning Permit. The local land bureau issues the Construction Use Land Planning Permit, and the local office of the Ministry of Construction issues the Construction Project Planning Permit. These permits are usually issued pretty quickly — in some cases, as quickly as a few working days. |
4. | When you have your final environmental approval, the Construction Use Land Planning Permit, and the Construction Project Planning Permit (and the safety and healthcare approvals, if necessary), apply for the final project approval from SRDC. |
5. | When you have the final project approval from the SRDC, get the Business License from the local AIC. We discuss the Business License in depth in Chapter 7. |
6. | After receiving the Business License, get the Land Use Rights Certificate (also covered in Chapter 7). Land Use Rights Certificates can take a few months to obtain. |
7. | After you cement the land, you have just one step before beginning construction — getting the Construction Permit. Submit the Land Use Rights Certificate, architectural drawings, and some other items to the local office of the Construction Bureau. This permit usually takes a few weeks to process. |
Beginning operations
After you complete construction, the building has to undergo several separate inspections, such as the construction quality, equipment safety, fire safety, and environmental inspections. After it passes the inspections, you receive the Occupancy Certificate. Now you can use the building.
Companies in a small number of export industries need an export permit issued by the provincial office of the Ministry of Commerce (MOFCOM). The Customs Bureau publishes a catalog that states which industries require exporters to have a permit.
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