Category: Legal Articles

“Chinese E-Commerce Law” Officially Applied

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On January 1, 2019, the “E-Commerce Law of the People’s Republic of China” (hereinafter referred to as the “E-Commerce Law”) was officially implemented. Micro Business, Procurement Service and other formalities were included in the supervision, all E-Commerce activities must be registered, and pay taxes in accordance with the law. This shows that the era of savage growth of E-Commerce has passed, and the norm will be the key word for E-Commerce in the future.

Since this year, micro traders, procurement services, etc. Has been given a new identity – “E-Commerce Operator”. Many of them sell goods through a network of acquaintances, high consumer confidence and stickiness. According to Zhiyan Consulting data, from 2014 to 2017, the number of social media merchant businesses in China increased from 7.52 million to 20.18 million. By 2019, the size of the social media business market is expected to reach 1 trillion yuan. These include “social E-Commerce” which has grown wild in recent years and has formed a counterweight to traditional E-Commerce.

Three Keywords “E-Commerce Law”

It is undeniable that E-Commerce currently has various types of chaos such as fake items, fake praise comments, leaked personal information, and responsibilities that ignore sales after sales. The application of “E-Commerce Law” has resulted in a strong increase in strength on both the traditional E-Commerce platform and the new social E-Commerce platform.

  1. Payment of Taxes

For a long time, the phenomenon of tax evasion in the field of E-Commerce has become serious. Article 11 of the E-Commerce Law stipulates that E-Commerce operators must carry out their tax payment obligations in accordance with the law and enjoy tax benefits in accordance with the law. The main payment body must include the operator on the E-Commerce platform. This means that all trading methods through E-Commerce channels require tax.

2. Business Permit

Article 10 of the E-Commerce Law stipulates that E-Commerce operators must handle the registration of market entities in accordance with the law. In particular, overseas online deposit services must have business licenses from China and the other country. Article 29 stipulates that it is necessary to take steps to deal with products that are not licensed or prohibited and report to the authorities.

3. Platform Responsibility

In actual E-Commerce business activities, regarding the commercial status of parties involved in transactions, platform operators> e-commerce operators> consumers. Article 38 of the E-Commerce Law stipulates that joint responsibility is borne or known to know business violations without taking the necessary actions. Article 83 stipulates that if the E-Commerce platform operator violates the provisions of Article 38 of the law, or fails to qualify for an operator audit on the platform, the supervision department and market management will order the time limit to be corrected, and the situation will be ordered to stop repair. Fines not less than 500,000 yuan but not more than 2 million yuan will be charged.

Although the implementation and difficulties of the actual implementation of the E-Commerce Act are unknown, it is now clear that in the future, E-Commerce operators will be subject to strict supervision and the industry will be overhauled.

Will being a small company be a solution for micro traders?

Procurement services that originally came from international students or people who worked abroad, when they returned to their home countries, brought some cosmetics, bags, etc. to relatives and friends. With the increasing demand for foreign consumption, private entrusting services are getting bigger because of the unique price advantage. Overseas tour guides, flight attendants, and ordinary tourists have joined the ranks. They buy goods at low prices abroad, and then sell them after returning home to make a profit.

Chinese Commerce Minister Zhong Shan said at this year’s meeting that according to preliminary estimates, the Chinese population spends around 200 billion US dollars shopping overseas a year, and its shopping list includes luxury goods and daily consumption goods.

After the adoption of the “E-Commerce Law”, the Deposit Service has two choices: the first to keep the original business unchanged, to register and pay taxes in accordance with the law; the second is leaving the original service business and changing other ways to create cash flow.

In this case, a friend who carried out the procurement service said to Queen Law Firm: “Initially we were able to profit from different prices. If you have to pay taxes, the price of goods will be increased, and nobody wants to buy it anymore.” Obviously, the increase in tax costs makes it lose its price advantage in market competition. The first method does not work for small personal purchasing businesses. In this way, it is more likely to switch to the second.

At the same time, the social E-commerce platform must carry out identity platforms, fight counterfeit goods, ensure authenticity, and improve quality. The information above is the core of the social E-commerce platform competition.

The introduction of the “E-Commerce Law” aims to standardize the fast-growing and mature E-Commerce industry and create a more equitable and reasonable competitive environment. Of course, under the cold winter of capital, the adoption of the E-Commerce Law will accelerate market changes and will also bring some new opportunities.

by Derrick Guan

Prenuptial Agreement on Indonesia

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Prenuptial Agreement namely agreement made by prospective husband and wife about their marriages, the contents of which depend on the agreement between the two parties provided that it does not conflict with the Law.

According to Indonesian civil law expert Wirjono Prodjodikoro, the word Prenuptial Agreement is defined as a legal relationship regarding property of wealth between two parties, in which one party promises or is considered promising to do something, while the other party has the right to demand the implementation of the agreement. The goal is to protect the assets of each bride and groom where the parties can determine their respective assets.

In general, Prenuptial Agreements are made to separate the assets and debts that are owned by both parties, but in the development of Prenuptial Agreements not only made for the separation of assets, many couples enter questions of interest in the Marriage Agreement. For example, still allowed to pursue his or her hobbies or collect luxury items. Couples can balance each other and remind the family financial stability not to be disturbed.

In principle, the parties determine the contents of the marriage agreement freely to make a deviation from the Indonesian Civil Code’s rules on the union of assets but with the following restrictions:

  1. The agreement may not conflict with decency and legal issues concerning the authentic deeds of public order (Article 139 of the Indonesian Civil Code).
  2. In the Agreement no promises made are deviated from:
    a. Rights arising from the authority of the husband: for example to determine the place of residence or the right of the husband to take care of the union of marital assets;
    b. Rights that arise from the power of parents: for example the right to take care of children’s wealth or children’s education;
    c. Law-determined rights for husband and wife who live the longest: for example being a guardian or appointing a guardian (Article 140 of the Indonesian Civil Code).
  3. There is no promise that contains the release of rights to the inheritance of the people who lowered it (Article 141 of the Indonesian Civil Code).
  4. They should not promise that one party must pay a portion of the debt which is greater than the portion in the union profit (Article 142 of the Indonesian Civil Code).
  5. No promises can be made that their marriage will be governed by foreign law (Article 143 of the Indonesian Civil Code).

 

Advocates Are Ensured That They Cannot Meet If They Do Not Register at E-Court

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The application of case administration in electronic courts (e-court) has a direct impact on the practice of advocates in Indonesia. Advocates who do not have an e-court account will be hindered by proceedings in a number of courts. But the Supreme Court guarantees a fast, easy and practical account registration process for advocates in e-court socialization, Friday (7/20), at the Pullman Hotel, Jakarta.

Director General of the General Judiciary Agency Herri Swantoro, Director General of the Religious Courts Agency Aco Nur, and Director General of the Military Court and State Administration Agency Maj. Gen. Mulyono explained directly to advocates at the socialization event in collaboration with the Indonesian Advocates Association (Peradi) “Indonesian Advocate Voice”.

Supreme Court Regulation No.3 Year 2018 concerning Administrative Cases in the Electronic Court promulgated since April 4, 2018 then covers the administration of civil, civil, religious, military and business administration matters.
Based on the Perma E-Court, proof of membership in an advocate organization and evidence of an official oath by the high court is a key condition for registration.

Article 4
…
(3) The requirements for being a registered user for advocates are:
a. ID card
b. Advocate membership card; and
c. Minutes of swearing in by the high court

Article 6
…
(2) The Supreme Court has the right to refuse registration of registered users who cannot be verified.

Although not all courts have implemented e-court, Director General Badilum Herri Swantoro told hukumonline that the Supreme Court is targeting all district courts, religious courts and state administration courts to be ready to use the e-court system in September 2018.

“The Chief of the Supreme Court is targeting September to be all ready,” Herri said after socialization.

Herri explained that being registered in the e-court system is an absolute requirement for advocates to represent their clients as legal counsel in the trial. “If you don’t register, you can’t enter the system, verify it in the High Court,” he said.

According to Herri, advocates who have been appointed before the Advocate Law must still have a letter of appointment through the Department of Justice at the time. Although it is not in the form of an Oath Minutes, the document still has an administrative number. “If there is a file that is definitely verified by the High Court, if it does not exist, it will be traced,” Herri explained.

Juniver Girsang, Chairperson of Peradi “Voice of Indonesian Advocates” welcomed the e-court system for the future of the advocate profession in Indonesia. “This is good. There are no more illegal advocates, “he said at the event.

According to Juniver, this regulation disciplines lawyers to actually have an oath report and join advocate organizations. “The requirement to have an account is the news of the oath and the sign card of the advocate, beyond that it cannot. Must enter the organization. Can not convene if it is not registered, “he told hukumonline.

Harry Ponto, Peradi Deputy Chairperson “The Voice of Indonesian Advocates” said the same thing. Harry sees that the e-court system will also contribute to improving the quality of the advocate profession. “This is part of policing and hopefully our starting point is solid,” he said when interviewed by hukumonline.

He said that the e-court system had been implemented in Singapore since a dozen years ago. With the fact that e-court is not new in the global world, Harry hopes that advocates support the advancement of this technology to improve the quality of law enforcement. Including the improvement of the quality of the advocate profession.

“For those who have been messing around with the fake oaths, stop, if there is a fake it means criminal, will be pursued again,” he said.

When asked about the complaints of a number of Peradi members who did not have the swearing-in minutes because they were appointed as advocates with the “whitening” of the Advocate Law, he invited immediately to contact Peradi to take care of the swearing. “Let’s report, we facilitate the swearing. Just last year like Mr. Fred, Who doesn’t know? Founder Peradi too. Last year (new) was sworn, “he said.

According to Harry, senior Peradi members who did not yet have an oath report were mostly from legal consultants before the Advocate Law was passed. “They have actually been verified by Peradi in 2004, we have already offered them, there have been quite a number of people sworn in,” he said, who is also a member of the Capital Market Legal Consultants Association (HKHPM). He mentioned that there were not many people who did not have an oath, about 150 people.

Since it was officially launched on July 13, 2018 and then in Balikpapan, the Supreme Court has announced that there are 31 District Courts, 9 Religious Courts, and 6 State Administrative Courts that have used e-court. To be registered as an e-court account owner so that they can convene in these courts, advocates must fill in the following data on the page http://ecourt.mahkamahagung.go.id.