Laws of the People's Republic of China

Circular of MOFCOM, NDRC, GAC, GAQSIQ, CAA of the People's Republic of China on Regulating Export Order of Automobile

Shang Chan Fa [2006] No. 629

Administrative commercial departments, development and reform commissions of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps, Guangdong branch of General Administration of the Customs, and its special commissioners' offices in Tianjin and Shanghai, and all Customs directly under General Administration of Customs, bureaus of quality and technical supervision in all provinces, autonomous regions and municipalities, administrations for entry-exit inspection and quarantine directly under GAQSIQ, and related enterprises:

For the purposes of regulating export order of automobiles, transforming increasing mode of automobile export, advancing quality and efficiency of export increasing and promoting the healthy development of the automobile industry, and in accordance with Foreign Trade Law of the People's Republic of China, Customs Law of the People's Republic of China, Commodity Inspection Law of the People's Republic of China, Automotive Industry Development Policy, Regulations of the People's Republic of China on Certification and Accreditation as well as other relevant laws and regulations, related ministries and commissions decide to carry out export license administration on entire automotive products (including passenger automobile, commercial automobile, chassis and complete set of spare parts, refer to Appendix 1 for detailed product catalogue). Related matters are hereby notified as follows:

I

Enterprises that apply to the export license for entire automotive products shall meet the following conditions:

1.

Automobile Producing Enterprises

(1)

Listed in Announcement of National Development and Reform Commission on Vehicle Producing Enterprises and Products;

(2)

Approved by China Compulsory Certification (3C Certification) which remains effective; and

(3)

Bearing capability of maintenance and service in conformity with the amount of automobile and a relatively complete sales and service system in main export markets.

2.

Export Operation Enterprises (including import and export companies to which automobile enterprise groups belong)

(1)

obtaining export authorization of automobile producing enterprises qualified for automobile exportation and export, in accordance with this authorization, products produced by the above mentioned enterprise; and

(2)

The export operation enterprise shall agree in the authorization with the automobile producing enterprises on that they both shall jointly undertake joint liabilities such as the quality guarantee and after-sale service concerning the export products.

Automobile producing enterprises (independent judicial person enterprises), that are located in export processing zones and whose whole products, approved by the State, are made for export, shall not be exempt from the above mentioned conditions.

II

Automobile producing enterprises shall submit related materials of certification and list of authorized export operation enterprises (no more than 3) to administrative commercial departments (electromechanical products offices) of provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps where they are located, before October 15 every year. After the preliminary examination by the above-mentioned administrative commercial departments (electromechanical products offices), the results shall be reported to Ministry of Commerce (Department of Mechanic, Electronic and Hi-Tech Industry) before October 31.

Enterprises listed in Announcement of National Development and Reform Commission on Vehicle Producing Enterprises and Products that produce products of the same brand may file the report in the name of a conglomerate.

III

Ministry of Commerce, jointly with National Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration of the People's Republic of China shall make known to the public the List of Enterprises Qualified for Application for Export License (hereafter referred to as List) of the year in November each year. Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration of the People's Republic of China shall release the List of the year in December each year.

IV

As of January 1 every year, issuance institutions of license authorized by the Ministry of Commerce shall, by virtue of the List release export license for entire automotive products.

The export license may be applied to the above mentioned products exported by means of ordinary trade, processing trade, frontier trade and donation trade.

Goods that entering special areas supervised by Customs such as bonded area or export supervised warehouse through areas outside China or that exported to areas outside China by special areas supervised by Customs such as bonded area or export supervised warehouse, shall be handled in accordance with related provisions in operation.

V

When exporting entire automotive products listed in Catalogue of Entry-exit Commodities Inspected and Quarantined by the Competent Entry-exit Inspection and Quarantine authorities, the entire automotive products shall be inspected in the place of production. Inspection and Quarantine authorities shall accept the report for inspection by virtue of export license for entire automotive products issued by issuance institutions of license authorized by the Ministry of Commerce.

I

n case the importing countries have requirements on access defined in the law and regulations, certification on access laws and regulations of the importing countries shall be submitted. In case the access laws and regulations are undefined, related inspections may be carried out in accordance with regulations of Inspection Law of People' s Republic of China on Import and Export Commodities and its implementing rules and in conformity to related criteria designated by General Administration of Quality Supervision, Inspection and Quarantine.

VI

Customs shall go through formalities of export inspection and release by virtue of export licenses issued by issuance institutions of license authorized by the Ministry of Commerce as well as Declaration Form of Exit Commodity issued by Inspection and Quarantine authorities.

VII

Ministry of Commerce, National Development and Reform Commission, General Administration of Quality Supervision, Inspection and Quarantine, General Administration of Customs and Certification and Accreditation Administration of People's Republic of China, shall in due time give early warnings and suggestions to adjust the List respectively in accordance with the operation of export enterprises in the overseas markets, the administration under Announcement on Vehicle Producing Enterprises and Products, the administrative situation of everyday inspection and supervision of export automotive products, and supervision on authentication of mandatory products of enterprises.

VIII

Automotive Industrial organizations shall practice self-discipline, coordinate with enterprises in the List on exportation to key country markets and put forward early warnings and suggestions to adjust the List.

IX

Export contracts signed by enterprises not listed in List 2007 before January 15, 2007 shall put on file in administrative commercial departments (electromechanical products offices) of provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps before March 20, 2007; Issuance institutions of license authorized by the Ministry of Commerce shall release export license by virtue of the file on record before August 1, 2007 and the Inspection and Quarantine authorities shall accept the report for inspection by virtue of export license hereof.

X

In case of any item in the following, qualification of entire automotive products export of the next year shall be cancelled:

1.

Providing false certification materials of aptitude;

2.

Products thereof are confirmed to violate IPR by related departments;

3.

Falsifying authorization certification of producing enterprises;

4.

Exporting products neither produced by themselves nor by authorizing enterprises;

5.

Automobiles exported the foreign countries which cause serious quality problems and thus bring about bad influence on Chinese automobile export; or

6.

Other behaviors in violation of provisions of the present Circular as well as dishonest behaviors.

Export enterprises may report the enterprises that violate laws and regulations to the Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine and Certification and Accreditation Administration of People's Republic of China. After receiving the report, the Ministry of Commerce, together with other authorities above mentioned, shall conduct investigation and make decisions based on the results of investigation.

As for relevant behaviors violating regulations of the administration of export license, the Ministry of Commerce and General Administration of Customs shall be responsible for handling in accordance with relevant provisions of Measures On Administration of Goods Export License.

XI

For a smooth transition, the deadline of application for automobile producing enterprises in 2007 to local administrative commercial departments shall be January 15, 2007 and the deadline of application for local administrative commercial departments to the Ministry of Commerce shall be January 22, 2007. Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine and Certification and Accreditation Administration of People's Republic of China shall promulgate List for the Year 2007 in February, 2007 which shall come into force as from March 1, 2007.

XII

Ministry of Commerce takes the responsibility of interpreting the present Circular.

XIII

The present Circular shall come into force as from the day of promulgation.

Appendix:

1.

Catalogue of Automotive Products under Export License Administration(omitted)

2.

List of Enterprises Qualified for Application for Export License (Producing Enterprises)(omitted)

3.

Summary Table of the List of Enterprises Qualified for Application for Export License (Local Electromechanical Products Offices)(omitted)

Ministry of Commerce

National Development and Reform Commission

General Administration of Customs

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration of People's Republic of China

December 31, 2006