Laws of the People's Republic of China

Ministry of Commerce, Ministry of Finance, Ministry of Agriculture, People's Bank of China, State Administration of Taxation, General Administration of Quality Supervision, Inspection and Quarantine, Certification and Accreditation Administration

Circular of MOFCOM, MOF, MOA, PBOC, SAT, GAQSIQ, and CAA on Printing and Issuing the Instructional Opinions Concerning the Expansion of Agricultural Products Export

Shang Mao Fa [2004] No. 491

In order to implement the spirit of the Central Committee Document No.1 in terms of the expansion of agricultural products export, the Ministry of Commerce, the Ministry of Finance, the Ministry of Agriculture, the People's Bank of China, the State Administration of Taxation, the General Administration of Quality Supervision, Inspection and Quarantine have jointly promulgated the Instructional Opinions Concerning the Expansion of Agriculture Products Export. The relevant entities in all regions shall put it into practice in light of actual conditions of all localities with a view to boosting export of agricultural products in China.

Hereby notified.

Appendix: Instructional Opinions Concerning the Expansion of Agricultural Products Export

Ministry of Commerce

Ministry of Finance

Ministry of Agriculture

People's Bank of China

State Administration of Taxation

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration

October 18, 2004 Appendix:Instructional Opinions Concerning the Expansion of Agricultural Products Export

Since China is a large agricultural country, a good solution to problems concerning "agriculture, countryside and farmers" will be the significant work of our Party and government for a long time to come. The development of agricultural products export is an important embodiment of implementing the scientific concept of development, overall planning of the urban-rural development, the development in different regions, the eco-social development, the harmonious development between human and environment, and the domestic development as well as the opening up, all of which were brought forward at the Third Plenary Session of the Sixteenth Central Committee of CPC; The development of agricultural products export is of great significance to the building a well-off society in an all-round way. Practice has proved that expanding the export of agricultural products is an important avenue to increasing farmer employment, boosting income increase of farmers, giving impetus to the restructuring of agriculture industry and enhancing the competitiveness in agriculture.

In recent years, the export of agricultural products in China have been developing fast from a figure of less than US$100 billion in1990 to US$212.1 in 2003, which, especially since 2000, has enjoyed a rapid growth with an average growth rate per annum of 13%. Presently China comes up to the sixth place in the world in terms of agricultural products export. Meanwhile with the continuous optimization in ranks engaged in the export of agricultural products, enterprises of integrated operations of trade, industry and agriculture become the main force for the export of agricultural products; The comparative advantageous and internal competitiveness of labor-intensive agricultural products are growing stronger day by day with market shares rising high; Channels for export are further broadened with an increasing number in export varieties and new trading modes are explored with the preliminary appearance of diversified market pattern, predicting the export of agricultural products in China into a new stage. However, we also should notice that there still exist many problems in terms of agricultural products export, such as prominent problem of quality safety, backward processing level, shortage of products with brand, small size of export enterprises, weak international competitiveness, laggard development of trade organizations, shortage of effective export service, for which the strengthening of the intensity of policy support and enhancement of competitiveness are urgently required. According to the "to further better and promote policies and measures on the export of agricultural products in China" set forth in the Opinions of the State Council and Central Committee of CPC on Certain Policies Concerning the Promotion of Increase in Farmers' Income (Zhong Faˇ˛2004ˇłNo. 1), all the related departments shall, based on the comprehensive analysis on current situation and development potential of Chinese agricultural products export, determine the goal of expanding the export of agricultural products in the future, namely, in an effort to reach an agricultural products export figure of or more than US$ 30 billion for the next four to five years and a figure of or more than US$40 billion by 2013, to greatly improve product quality and sanitation safety, to largely expand and enhance enterprise scale and competitiveness, to make the market pattern more reasonable, cultivate a group of key enterprises and lots of famous brands, and give more full play to goals of striding into a well-off society and early realization of quadruples. For the purposes stated above, what we should do is to for the coming 5 to 10 years select labor intensive aquatic and ocean products, gardening products and livestock that enjoy certain competitive edge and development potentials, as well as products processed therefrom as the key point for the expansion of agricultural products export, meanwhile to develop the export of characteristic agricultural products, organic agricultural products and agricultural products that are subject to the registration of origin place marks so as to stimulate the adjustment of agricultural industry structure and overall competitiveness. In order to comply with these requirements, the specific instructional opinions are hereby notified as follows:

I.

To mark out development goals of agricultural products export according to overall arrangement, carefully study and implement scientific concept of development, which was put forward at the Third Plenary Session of the Sixteenth Central Committee and by which our export of agricultural products shall be guided. To conduct research on goals and planning that can, by exporting agricultural products, give an impetus to adjustment to industrial structure of agriculture, increase in farmers' employment and promotion of increase income of farmers in this area, present exported agricultural products with comparative advantages and market potential in such area, formulate support policies, and encourage localities to draw out support policies for agricultural products export in this area wherever conditions permit.

II.

To stress the safety management of agricultural products quality and increase the competitiveness of agricultural products export. Since problem of quality safety management is the chief obstacle to agricultural products export in China for the current stage, its strengthening is an effective means to the enhancement of the competitiveness of exported agricultural products. From now on to gradually implement regional administration of animal and plant diseases and insect pests, strengthen the construction of demonstration region without epidemic diseases of specified animals and practically raise the sanitation level of animals and plants; further popularize the operational mode of "company + base" of exporting agricultural products, support enterprises of agricultural products export to establish self-owned bases of planting and breeding, conduct the certification of agricultural products and food, and further propel the standardized production and set up a quality control system. To encourage export enterprises to obtain certification for organic products that meet the requirements of import markets and other international certification, obtain registration of sanitation and marks of place of origin, and establish records on the planting and breeding of agricultural products and traceable system of their quality; to further perfect the inspection, testing and safety monitoring system of exported agricultural products, encourage the inspection and testing organ to be granted National Accreditation for Laboratories, focus on tightening and bettering the inspection and testing of advantageous agricultural products and pertinent input products of agriculture, accelerate the construction of agroecological environment inspection and testing center and enhance the competitiveness of Chinese agricultural products in the international market.

III.

To optimize the structure of export commodities and establish a brand of agricultural products export, encourage enterprises to develop the export of deeply-processed agricultural products and enhance the added value of agricultural products; to support enterprises in the establishment of a brand of agricultural products export and give preferential assistance to such establishment; propel enterprises to, by means of the mode of introducing advanced technology and fine variety from abroad and equally emphasize independent research and development at home, develop self-product of intellectual property rights, and increase core competitiveness; to actively boost the mark registration system for place of origin of agricultural products and preferentially exempt agricultural products from being inspected, which are subject to the protection of origin place marks due to conformity with provisions on inspection exemption; to offer convenient customs clearance service to export enterprises that enjoy the protection of origin place marks and have good reputation.

IV.

To cultivate a group of key enterprises of agricultural products export and fasten the construction of trade organization of agricultural products, cultivate in the area of Chinese agricultural products with comparative advantages, a lot of enterprises of agricultural products export which enjoy a relatively strong competitive edge in the world, large-scale export and good economical returns and yield notable results in stimulating employment and income increase of farmers; to establish and improve trade organizations and commodity associations by selecting key exported products like aquatic and ocean products, poultry and meat, vegetables and fruits so as to response to the new situation of the international trade of agricultural products; give support to the setting up of trade organizations of agricultural products export with their own characteristics in various regions; propel enterprises to incorporate trade organization on a voluntary basis and to conduct self-management, self-service and self-supervision; to bring trade organization into full play, enhance the level of trade organization, regulate the export order of agricultural products and actively deal with international trade disputes.

V.

To explore internal markets with great exertion and strengthen the promotion of agricultural products export, gradually adjust the market structure of the export of agricultural products and establish a market system of the export of global agricultural products, which is characterized by "market diversification"; to actively explore new markets in Europe, middle east and CIS countries, vigorously develop the markets in Latin America, Africa and Oceania, encourage enterprises of agricultural products to conduct international marketing, and carry out activities on introduction of agricultural products; to preferentially support enterprises of agricultural products export to participate in Internal Professional Exhibitions and promotional activities of new markets and new products with funds of middle and small sized enterprises for exploring international market; to strengthen the technology exchange and cooperation between related international organizations of certification and accreditation, propel the accreditation conducted by counties each other through the world for Chinese agricultural products and food, give support to domestic accreditation organs to carry out accreditation conforming to the requirements of import markets; draw upon foreign advanced experience, raise the lever of information service, effectively integrate information resource, accelerate the development of public information products, provide enterprises of agricultural products export with such various information as foreign market, commodities, technology standards and trade policies, give assistance to the said enterprises in the exploration of international market.

VI.

To improve and promote the political system for agricultural products export. To implement the spirit of Central Committee Document No. 1 concerning the expansion of advantageous products export, further perfect and promote the requirements of policies and measures for the export of agricultural products in China, as well as establish, improve and boost the package policies and measures with respect of agricultural products export, and to actively give credit aid to enterprises of agricultural products export that satisfy the requirements for being provided with credit. Taxation authorities shall conscientiously carry out the decision of the State Council on No New Outstanding Accounts for Export Tax Refunds, and in time examine and approve the tax refunds on exported agricultural products; to utilize funds special for the promotion of agricultural products export, which have been set aside in the foreign trade development funds of the Central Government and preferentially support agricultural products export with the funds for the exploration of international markets for medium and small sized enterprises at the same time. To actively formulate related support policies and give assistance to enterprises of agricultural products export and lend an impetus to the export of advantageous agricultural products in various regions. To strengthen the supervision over funds and raise the efficiency for using such funds by taking effective steps. And to go a step further in intensifying the coordination and cooperation among departments so as to form joint forces for the promotion of agricultural products export together.

VII.

To improve the system of agricultural products export credit insurance and increase the risk prevention capacity of enterprises dealing with agricultural products export. To strengthen the intensity of publicity for agricultural products export credit insurance, as well as research and develop new categories of the said credit insurance according to the characteristics and requirements of agricultural products export; to raise the rate of support given by the State for premium of agricultural products export credit insurance, concretely speaking, in western areas to raise such rate to 50% and 40% within other regions for enterprises that are insured against short-term export credit insurance for agricultural products; to popularize with great exertion the export credit insurance, encourage enterprises dealing with agricultural products export to participate in export credit insurance and raise the level of risk management.

Departments of commerce, finance, agriculture, banking, taxation as well as inspection and quarantine at various levels shall carefully implement the spirit of Third Plenary Session of the Sixteenth Central Committee and carry out all the requirements and measures laid down in the Central Committee Document No.1, all sorts of wiles and methods to soundly deal with the export of agricultural products by unifying their respective thoughts, cooperating one another closely, and keeping forging ahead in an innovative way so as to make new contributions to the solution to problems concerning "agriculture, countryside and farmers".