Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Circular on Issues Concerning Importation of Aluminum Oxide by Enterprises with Foreign Investment

WaiMaiYiZiTongJinHan [2003] No.132

February 19, 2003

The commissions (departments, bureaus) of foreign economic and trade of provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, Guangdong Sub-administration of Customs, Tianjin and Shanghai Office and the customs directly under the General Administration of Customs:

In order to further the undertaking of the administration of importation of aluminum oxide by enterprises with foreign investment, simplify the examination and verification procedures and reduce the examination and review links, here is to authorize the administrative departments of foreign investment of foreign economic and trade authorities at provincial level to examine and issue the license of automatic importation of aluminum oxide to enterprises with foreign investment of other industries than aluminum industry, the specific items are notified as follows:

I.

Principles of examination and approval.

(1)

The applying enterprises should have been approved by force of law, which should be in compliance with the requirements of the policies for guidance of foreign-invested industries with annual inspection qualified.

(2)

The applying enterprises are on going concerns with normal production and operations, and the production and processing do not adopt aluminum oxide as the principal raw materials (non-aluminum processing enterprise)with a single License of Automatic Importation for importation of aluminum oxide not exceeding 1000 tons.

(3)

The applying enterprises import aluminum oxide only for use by themselves for processing and production of products, and the imported aluminum oxide should not be processed by other enterprises with authorization or otherwise transferred.

II.

Materials to be submitted by the applying enterprises.

(1)

Application report of the enterprises.

(2)

Certificate for approval of enterprises with foreign investment (including records on qualified joint annual inspection).

(3)

Business licenses of enterprises with foreign investment.

(4)

Contract and Articles of associations of enterprises (Articles of association only for solely funded enterprises).

(5)

Report of asset appraisal.

(6)

Operational performance of enterprises, including the financial statements and audit report of the previous year, and the importation performance of aluminum oxide (exclusive of the newly established enterprises).

(7)

Certification of the production capacity of enterprises (including annual usage, production schedule and requirements for the demands of raw materials).

III.

Norms on issuance of licenses.

Each place shall handle with the formalities for automatic importation of aluminum oxide with non-aluminum enterprises with foreign investment according to the relevant provisions of the Rules for the Implementation of the Licensing Administration of Automatic Importation of Enterprises with Foreign Investment and the above-mentioned principles of examination and approval, and issue licenses of automatic importation through the Network Management System for Importation and Exportation of Enterprises with Foreign Investment. Each issuing departments shall examine and verify the applications of enterprises in strict accordance with the above-mentioned principles and requirements so as to prevent the occurrence of sales and distribution directly upon importation.

In case the aluminum enterprises with foreign investment with the business scope approved covering ˇ°processing and production of aluminumˇ± apply for importing aluminum oxide as the principal production material or enterprises with foreign investment import aluminum oxide with a single License of Automatic Importation for importation of aluminum oxide exceeding 1000 tons, the administrative departments of foreign investment of foreign economic and trade authorities at provincial level shall upon initial review submit the case to the Foreign Investment Department of the MOFTEC for handling with the formalities for examination and verification and issuance of licenses.

IV.

In case enterprises with foreign investment import aluminum oxide to produce products for domestic sales, the Customs handle with the Customs clearance formalities on the basis of the License of Automatic Importation signed and stamped by the MOFTEC or the local issuing institutions of automatic importation licenses authorized by the MOFTEC.

V.

In case enterprises with foreign investment import aluminum oxide for processing trade, the formalities should still be handled with in compliance with the Urgent Circular on Issues Concerning Strengthening the Examination and Approval Administration of Processing Trade of Aluminum Oxide (WaiJingMaoMaoFa [2001] No.567).

This is hereby the notification.