Laws of the People's Republic of China

Ministry of Commerce, General Administrative of Customs

Announcement No.85, 2005 of the Ministry of Commerce, the General Administration of Customs of the People's Republic of China, Releasing the list of Commodities Subject to Import Licenses Administration in 2006

[2005] No.85

In accordance with Foreign Trade Law of the PRC and Commodity Import and Export Administrative Enactment of PRC, the List of Commodities Subject to Export Licenses Administration in 2006 is now released (see Appendix 1). Related issues are notified as follows:

1.

46 kinds of commodity that are subject to Export Licenses Administration in 2006 (312 8-digit HS code) shall be conducted with the administration of Export Quota License, Export Quota Bidding and Export License respectively.

I.

Commodities subject to Export Quota License Administration:

Corn, rice wheat, cotton, sawed timber, live cattle (for HK & Macao), live swine (for HK & Macao), live chicken (for HK & Macao), silk, coal, coke, crude oil, product oil, rare earth, antimony ore, antimony (antimonial alloy included), antimonial products, antimony oxide, wolfram ore, ammonium paratungstate secondary ammonium tungsten, ammonium metatungstate, tungsten trioxide, blue tungsten oxide, tungstenic acid and its salts, tungsten powder and its products, zinc ore, tin ore, tin and tin base alloy, and silver.

II.

Commodities subject to Export Quota Bidding Administration:

Chinese small iris and products, carborundum, fluorspar lump (powder), talc lump (powder), soft burning/ reburning magnesium, bauxite, liquorice and products.

III.

Commodities subject to Export Licenses Administration:

Live cattle (for markets other than HK or Macao), live swine (for markets other than HK or Macao), live chicken (for markets other than HK or Macao), beef, pork, chicken, ozone-depleting substance, controlled chemicals, chemical products used in production of narcotic drugs, olefin, platinum (export by means of processing trade), zinc and zinc base alloy, computer, fanner, bicycle, motorcycle (including all-terrain vehicle), motorcycle engine and carriage. Among which, controlled chemicals and chemical products used in production of narcotic drugs shall be subject to Administration on Import & Export Licensing of Dual-use Items and Technologies in 2006. Please act accordingly after the issuance of Measures for Administration on Import & Export Licensing of Dual-use Items and Technologies.

2.

Besides live cattle, live swine, live chicken exported for HK & Macao, which shall be conducted with Nationality (Regional) Quota License Administration of Global License, the other commodities in the Export Licenses Administration List shall all be conducted with Global Export Licenses Administration.

3.

Corn, rice, coal, crude oil, product oil, cotton, antimony ore, antimony (antimonial alloy included), antimonial products, antimony oxide, wolfram ore, ammonium paratungstate secondary ammonium tungsten, ammonium metatungstate, tungsten trioxide, blue tungsten oxide, tungstenic acid and its salts, tungsten powder and its products, and silver shall be under state-owned trade administration.

4.

For commodities of Export Quota Bidding, no matter traded by what means, all the authorized License Institutions shall sign and issue Export License based on bid-winning enterprises list and bid-winning amount issued by Ministry of Commerce as well as Export License Certificate on Applying Quota Bidding Commodities issued by Tendering Office.

5.

As of June 1, 2005, the Export Quota License Administration on other kinds of clay under the Bauxite item (HS code 2508400000) shall not be conducted.

6.

As of January 1, 2006, the Export Quota License Administration on tea-leaf shall be eliminated.

7.

Export of the following commodities by means of processing trade, please act accordingly:

I.

Commodities subject to Export Quota License Administration exporting by means of processing trade (excluding Item II, III, IV, V ), the license institutions shall examine and issue the Export License on the basis of export quota, Approval Certificate of Processing Trade and Export Agreement.

II.

While importing raw material of platinum for platinum re-export after processing, the license institutions shall examine and issue the Export License on the basis of Approval Certificate of Processing Trade issued by local responsible commercial sections, Processing Trade Import Declaration Form and Export Agreement.

III.

While importing crude oil for paraffine re-export after processing, importing commodities containing silver (excluding silver powder, unwrought silver and semi-manufactured goods of silver) for silver re-export after processing, exporting zinc and zinc base alloy by means of processing trade, the license institutions shall examine and issue the Export License on the basis of Approval Certificate of Processing Trade issued by provincial responsible commercial sections, Processing Trade Import Declaration Form and Export Agreement. Among which, Approval Certificate of Processing Trade for silver shall be examined and issued with the approval of report with reply of Ministry of Commerce.

IV.

While exporting liquorice and products by means of processing trade, the license institutions shall examine and issue the Export License on the basis of Approval Certificate of Processing Trade issued by provincial responsible commercial sections, Application Certificate for Export License for Processing Trade Commodities of China Chamber of commerce of Medicines & Health Products Importers & Exporters, Processing Trade Import Declaration Form and Export Agreement.

V.

While importing crude oil for product oil re-export after processing, product oil Export License could be exempted.

VI.

The duration of validity of the Export License described in the Item II, III and IV shall be examined and issued in accordance with the export deadline in the Approval Certificate of Processing Trade. If the export deadline beyond the end of February next year, the duration of validity of the Export License shall be extended to the end of February next year. The enterprises shall apply for the postponement before the end of February, and the license institutions shall examine and issue the Export License on the basis of export deadline in the Approval Certificate of Processing Trade.

8.

In accordance with the spirit of Circular of the State Council Regarding Relevant Issues on Frontier Trade, while the Small Scale Frontier Trade Enterprises exporting commodities for export quota bidding, ozone-depleting substance, controlled chemicals, chemical products used in production of narcotic drugs, motorcycle (including all-terrain vehicle), motorcycle engine and carriage, the current regulations are still valid. While the Small Scale Frontier Trade Enterprises exporting commodities subject to administration of Small Scale Frontier Trade Export License (Category 1-23 in Appendix 2), the Export License shall be issue by responsible commercial sections of the frontier province or autonomous region with the authorization of Ministry of Commerce on Export Quota for Small Scale Frontier Trade. The commodities of Small Scale Frontier Trade Enterprises export other than mentioned in this Article, which are listed in list of Commodities Subject to Export Licenses Administration in 2006, shall be exempted from Export License.

9.

In order to guarantee the implementation of on-line cancellation after verification of the Import and Export License, the commodities that are not subject to administration of "one license, one use" shall be indicate with "Not Used for Once Only" on the remark column of the license by the license institutions while issuing Export License.

Commodities subject to the administration of "Not Used for Once Only":

I.

Export commodities of foreign invested enterprises.

II.

Export commodities by means of processing trade.

III.

Export commodities subject to compensation trade.

IV.

Rice, corn, wheat, live cattle, live swine, live chicken, beef, pork, chicken, crude oil, product oil and coal. "Not Used for Once Only" license can be used for more than once but less than twelve times at the same port. The customs shall stop receiving declaration when the twelve times are used up.

10.

Advertising samples of controlled chemicals, chemical products used in production of narcotic drugs and ozone-depleting substance shall be exported by Export License.

11.

List of textiles subject to Export Licenses administration shall be notified in another announcement.

12.

Commodities in this list, which are subject to Aid to Foreign Countries Projects of the government (excluding controlled chemicals, chemical products used in production of narcotic drugs), are not brought into Quota Administration and License Administration.

This List shall take effect as from January 1, 2006. List of Commodities Subject to Export Licenses Administration in 2005 shall be abolished at the same time.

Appendix:

1.

List of Commodities Subject to Export Licenses Administration in 2006 (omitted)

2.

List of Commodities Subject to Small Scale Frontier Trade Export License Administration in 2006 (omitted)

Ministry of Commerce

General Administration of Customs

December 27, 2005