Laws of the People's Republic of China

Announcement No.88, 2006 of the Ministry of Commerce on the 2007 Qualification Standards and Application Procedure on Coke Export Enterprises

[2006] No.88

For the purpose of further intensifying regulation on coke export and establishing a better order in export business, according to the Foreign Trade Law of The People's Republic of China and the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods, the 2007 Regulation on Qualification Standards and Applying Procedure on Coke Export Enterprises is now promulgated, from which foreign invested enterprises are excluded.

Appendix: 2007 Qualification Standards and Application Procedure on Coke Export Enterprises

The Ministry of Commerce

October 25, 2006 Appendix: 2007 Qualification Standards and Applying Procedure on Coke Export Enterprises

1.

Qualification standards on coke export enterprises

(1)

As for production enterprises

(a)

having registered with industrial and commercial administration departments according to the relevant laws and regulations; having acquired the export and import qualification or put on records as export and import traders; and having gotten the status as legal person;

(b)

meeting the Market Access Terms of Coke Industry (the names of these qualified enterprises have been publicized by the National Development and Reform Commission); and the export volume in 2005 exceeded 250,000 tons

(c)

the product quality meets the current national standards and the ISO9000 quality standards

(d)

abiding by relevant national and local laws and regulations, providing endowment, unemployment, medical care, injury, birth and other kinds of social insurance to employees according to law, and paying full insurance premium in time, and

(e)

having no acts in violation of the state laws and regulations

(2)

As for circulation enterprises

(a)

having registered with the Industrial and Commercial Administration Department according to the relevant laws and regulations; having acquired the export and import qualification or put on records as export and import traders; and gotten the status as legal person.

(b)

having a registered capital over 50 million RMB Yuan; average export volume of coke in recent 3 years (2003-2005) equals to or exceeds 150,000 ton ( as shown by the statistics from the Customs) or business scope covers areas related to trade coke domestically and the average export volume of coke equals to or exceeds 300,000 tons from the year 2003 to 2005

(c)

observeing relevant national and local laws and regulations, provide endowment, unemployment, medical care, injury, birth and other kinds of social insurance to employees according to law, and pay full insurance premium in time

(d)

having no violation of the national laws and regulations

(3)

In a western region where there is a performance of general trade of coke export (as shown by statistics from the Customs) every year in the recent 3 years (2003-2005), the provincial government or government of the autonomous region may recommend an enterprise that has a performance of general trade of coke export in the recent 3 years. Each of the said recommended enterprises must have an registered capital which equals to or exceeds 10 million RMB Yuan, and meet the requirements (a), (c) and (d) in Article (2); where it is a production enterprise, it must meet the requirements (a), (c), (d) and (e) in Article (1).

(4)

In a region where there is a performance of general trade of coke export (as shown by statistics from the Customs) every year in the recent 3 years (2003-2005), the provincial government or government of the autonomous region may recommend 3 enterprise that has a performance of general trade of coke export in the recent 3 years. Each of the said recommended enterprises must have an registered capital which equals to or exceeds 5 million RMB Yuan, and meet the requirements (a), (c) and (d) in Article (2); where it is a production enterprise, it must meet the requirements (a), (c), (d) and (e) in Article (1).

(5)

Where an enterprise in the western region meets the standards as specified in Articles (1) and (2), it may not be entitled to the preferential policies in Article (3).

(6)

To implement the national industrial policy, as from January 1 2007, all export products must be purchased from the enterprises that meet the Market Access Terms of Coke Industry (the names of these qualified enterprises have been publicized by the National Development and Reform Commission). The documents of source enterprises and other relevant materials must be submitted.

(7)

The coke export on foreign invested enterprises shall still be regulated according to current laws and regulation.

2.

Applying, checking and approving procedures

All coke export enterprises must file their applications to their provincial administration departments on commerce. Administration departments must check the qualifications of these enterprises preliminarily according to qualification standards mentioned above and submit to the Ministry of Commerce the name list and written opinions on the enterprises that meet the aforesaid standards before November 15 2006 (relevant materials about the enterprises must also be submitted). Carbon copies are required to be submitted to China Chamber of Commerce of Materials, Minerals and Chemicals Importers and Exporters.

The enterprises directly under the central government shall file their applications directly with the Ministry of Commerce, and submit to China Chamber of Commerce of Materials, Minerals and Chemicals Importers and Exporters at the same time.

The Ministry of Commerce entrusts China Chamber of Commerce of Materials, Minerals and Chemicals Importers and Exporters and China Coking Industry Association to review the opinions on these enterprises. China Chamber of Commerce of Materials, Minerals and Chemicals Importers and Exporters shall file to the Ministry of Commerce before November 25 2006 their opinions on the enterprises that have passed the reviewing process.

The Ministry of Commerce shall check again the qualifications on the coke export enterprises according to the opinions from China Chamber of Commerce of Materials, Minerals and Chemicals Importers and Exporters, and publicize the name list of the enterprises that meet the qualification standards.

3.

Related materials that have to be submitted

When applying to the provincial administration department on commerce or the Ministry of Commerce, all coke export enterprises must submit the following documents (all these documents must be signed by the legal representatives of enterprises) :

(1)

the copy of the Business License of the Enterprise Legal Person; the Record Registration Form of Foreign Trade Managers or the Qualification Certificate for Import/ Export Enterprise of the People's Republic of China with the seal of record keeping; the Custom Code and Code for the applying enterprise

(2)

the certificate of ISO9000 Quality Standards

(3)

production enterprises must submit relevant bills or documents in 2005: if the product was purchased first by export enterprises then exported to other countries, the original invoices for value-added tax supervised by the Bureau of State Taxation, the copy of the bill of export customs declaration and the copy of the verification certificate for export proceeds must be submitted; if the export enterprises act as the agents for production enterprises to export goods, the original invoices of import and export, the copy of the bill of export customs declaration, the copy of the verification certification for export proceeds and the copy of the document on providing service as import and export agents must be submitted.

The circulation enterprises must provide the following documents: the original invoice of value-added tax or the original special invoice for export, the copy of the bill of export customs declaration, the copy of the verification certificate for export proceeds and the copy of the document on providing service as import and export agents.

Other circulation enterprises must also provide relevant documents or bills in recent 3 years (2003-2005): if the product was purchased first by export enterprises then exported to other countries, the original invoices for value-added tax supervised by the Bureau of State Taxation, the copy of the bill of export customs declaration and the copy of the verification certificate for export proceeds must be submitted; if the export enterprises act as the agents for production enterprises to export goods, the original invoices of import and export, the copy of the bill of the export customs declaration, the copy of the verification certification for export proceeds and the copy of the document on providing service as import and export agents must be submitted.

These enterprises who apply for Qualification Standards on Coke Export Enterprises for the first time must submit relevant documents from the year 2003 to 2005. Those who have already been recognized as qualified in 2006, only have to submit relevant documents in the year 2005.

(4)

Written materials from the local departments in charge of labor and social security are required to prove that endowment, unemployment, medical care, injury, birth and other kinds of social insurance have been provided to employees and full and in time premium has been paid.