Technology import and export control. Technology is classified as prohibited, restricted or free. Restricted technology requires a license; free technology requires the contract to be registered with the commerce authorities. Classification follows the current catalogues of technologies prohibited or restricted for import and for export, and whether the subject matter of a particular license falls inside them has to be assessed case by case.
Foreign exchange and payment. Remitting royalty payments abroad requires submitting the contract, invoices, and tax filing records to the bank. Incomplete documentation will hold up payment directly — the contract should clearly assign responsibility for providing these documents and cooperating with the process.
Tax treatment. Withholding of corporate income tax, VAT, and surcharges may apply, with the applicable rate and any treaty relief depending on the specific facts. This section provides only a general framework — specific tax treatment should be confirmed with a tax advisor.
The price clause should say who bears which taxes and how withholding is handled, and the timetable should leave room for the registration and recordal steps.
