Black tea itself is not illegal, but their nature is a pyramid selling organization, which is illegal.

1. Order of the State Council of the People's Republic of China

No. 443?

The "Direct Selling Management Regulations" were promulgated by the State Council on August 10, 2005 Passed by the 101st executive meeting, it is hereby announced and will come into effect on December 1, 2005.

Chapter 1: General Provisions

Article 1: To standardize direct selling behavior, strengthen the supervision of direct selling activities, prevent fraud, and protect the legitimate rights and interests of consumers and social welfare* **interests, this regulation is formulated.

Article 2: Those who engage in direct selling activities within the territory of the People’s Republic of China must abide by these regulations.

The scope of direct selling products shall be determined and announced by the commerce department of the State Council in conjunction with the industrial and commercial administration department of the State Council based on the development status of the direct selling industry and consumer demand.

Article 3: Direct selling as mentioned in these Regulations refers to the distribution method in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers (hereinafter referred to as consumers) outside of fixed business premises. .

The term "direct selling enterprises" as mentioned in these Regulations refers to enterprises that are approved to sell products through direct selling in accordance with the provisions of these Regulations.

Direct sellers as mentioned in these Regulations refer to those who sell products directly to consumers outside of fixed business premises.

Article 4: An enterprise established within the territory of the People's Republic of China (hereinafter referred to as the enterprise) may apply to become a direct sales company in accordance with the provisions of these regulations to sell the products produced by the enterprise and its parent company, A direct selling business that holds products manufactured by a holding company.

Direct selling companies can obtain trade rights and distribution rights in accordance with the law.

2. Direct selling license application process

Direct selling business application, application form;

2. Enterprise business license, organization code certificate;

3. Certification materials as stipulated in Article 7 of the "Direct Selling Management Regulations";

4. Enterprise articles of association, and if it is a Sino-foreign joint venture or cooperative enterprise, a joint venture or cooperative enterprise contract shall also be provided;

5. Market plan report, including the service outlet plan for areas engaged in direct selling activities that has been approved by the local people's government at or above the county level and is drawn up in accordance with Article 10 of these Regulations. When the commerce authorities at or above the regional/county level approve the service network plan, they should issue a written letter of approval to the provincial commerce department. When the provincial commerce department forwards the enterprise application materials to the Ministry of Commerce, it must also issue a confirmation that the service network plan meets the requirements of the Ministry of Commerce. Confirmation letter of "Direct Selling Management Regulations" and related regulations;

6. Product description that meets national standards. Specifically, it includes: a product catalog that complies with the scope of direct selling products (Ministry of Commerce Announcement No. 72 of 2005), certification documents that comply with national certification and licensing, descriptions and test reports of compliance with national mandatory standards, and product trademark registration certificates. If the product is produced by the parent company or holding company, proof of the equity relationship between the enterprise and the parent company or holding company, and an entrustment/authorized sales agreement are also required;

7. Sample of the sales contract to be signed with the direct seller;

8. Capital verification report issued by an accounting firm;

9. An agreement between the enterprise and the designated bank agreeing to use margin in accordance with the provisions of these regulations.

(Application materials must be made in triplicate, each page should be stamped with the seal of the applicant company or a seam seal, and should be printed on both sides and simply bound)

Through the business affairs department of the local province, autonomous region, or municipality directly under the Central Government The competent department shall submit an application to the commerce department of the State Council. The commerce departments of provinces, autonomous regions, and municipalities directly under the Central Government shall submit the application documents and materials to the commerce department of the State Council within 7 days from the date of receipt.

10. The commerce department of the State Council shall, within 90 days from the date of receipt of all application documents and materials, verify and inspect whether the enterprise has any violation records in various places. After soliciting the opinions of the industrial and commercial administration department of the State Council, a decision to approve or disapprove will be made based on considerations such as national security, social public interests, and the development status of the direct selling industry.

If approved, the commerce department of the State Council will issue a direct selling license. The applicant holds the direct selling business license issued by the commerce department of the State Council and applies to the industrial and commercial administration department for registration change in accordance with the law.

Due to the long preparation time for applying for a license, the entire process normally takes 1 year, and may take 5 years under special circumstances. Wang Liming said that it is not appropriate to have too many types of products when applying. Otherwise, there will be a lot of review content, which will easily prolong the time and make the application more difficult and stressful.

3. Since Avon (China) Co., Ltd. obtained its first direct selling license in 2006, my country now has 48 direct selling licenses. The number of direct selling licenses approved each year has remained at two to three every year, except for a record 17 in 2007, the second year when direct selling applications were liberalized, and a peak of 9 in 2013.

The state’s efforts to crack down on pyramid schemes and standardize direct sales are ongoing every year.

Applying for a direct selling statement means that the company has submitted relevant materials to the Ministry of Commerce, and the Ministry of Commerce has accepted it. This is the first threshold for enterprises to move towards direct selling, and it is also the only opportunity for the Ministry of Commerce to "pass official public announcement" before announcing that the enterprise has obtained a direct selling license.

4. After applying for a direct selling declaration and before officially obtaining a direct selling license, there is another step that will not be made public - obtaining a direct selling approval letter, which is the Ministry of Commerce's approval for the company to engage in direct selling operations.

The approval letter is given directly to the company and cannot be found by the outside world. Obtaining the approval letter does not mean obtaining a direct selling license. After that, the company still needs to complete the verification, filing and construction of service outlets. There is no exact timetable from the approval letter to the direct selling license.

Starting direct selling without obtaining a direct selling license is an "explicit" rule in the direct selling industry. “Most companies that apply for a direct selling license have been operating in the market for one to two years or even longer

Applying for a direct selling license is the only way to legalize direct selling behavior. The Ministry of Commerce has certain requirements for direct selling license applications. A time to examine enterprises.

The Ministry of Commerce’s definition of direct selling and pyramid selling is that direct selling is mainly “single-level” and MLM is mainly “multi-level” and “team-based”. The approach is entirely based on personal performance. As long as you work hard enough, there are many people who join later and get higher rewards from the company than those who joined first.

5. Every direct selling company applies for direct sales. Before obtaining a license, you must have your own direct selling system. Of course, there are exceptions for companies that have no direct selling experience but have obtained a direct selling license. In the early stages of operation, Hualai Company is likely to be in trouble. This aspect adopts a humanized direct selling system, which has long been perfected and matured. It abandons the monthly performance pressure of the traditional direct selling industry, and direct sellers can concentrate on their own sales without any worries. Stress Risk.