Laws of the People's Republic of China

National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, the Ministry of Land and Resources, General Administration of Customs, State Administration of Taxation, State Environmental Protection Administration

Circular of NDRC, MOF, MOFCOM, MLR, GAC, SAT, SEPA on Related Measures to Control the Exportation of Parts of High Energy-consuming Products, High-polluted Products and Resource Products.

Fa Gai Jing Mao [2005] No.2595

To the development and reform commission, department (bureau) of finance, responsible department of commerce, department of land and environmental resources, bureau of land and resources (bureau of land and house administration, bureau of planning and land resource administration), Guangdong subdivision of General Administration of Customs, Tianjin Custom, office of the commissioner in Shanghai, each direct custom, bureau of administration of taxation and bureau (department) of environmental protection administration of each province, autonomous region, municipality directly under the central government, planning unit city and Xinjiang Production and Construction Corporations:

According to the State Council Standing Conference's instructions concerning the control of the exportation of high energy-consuming products, high-polluted products and resource products, the State has successively taken a series of measures to control the exportation of the products like the steel, the electrolytic aluminum, ferroalloy, refined oil and so on, which has proved effective. However, the problems caused by the exportation of parts of high energy-consuming products, high-polluted products and resource products still exist and cannot be neglected. Under the permission of the State Council, the circular concerning further measures to control of exportation of high energy-consuming products, high-polluted products and resource products is as follows:

1.

Suspending the processing trade concerning parts of products

From January 1st. 2006, some products imported and exported are going to be listed into the prohibited catalogue and the competent bureau will not examine and approve the contracts concerning the processing trade of them. They are the imported agriculture primary chemicals, such as the primary chemical of Dichlorodiphenyltrichloroethane (DDT), Intermediate Hexachlorobenzene, Chlordane, Hexachlorocyclohexane, P-chlorophenyl, 3-Chloroethanol, Sodium Pentchlorophenate, Tricyclohexylhy-droxystannane and the exported agriculture chemicals; the imported disperse dyestuff and its exported finished products; the imported wood chip, log, wood pulp and exported paper, paper board or wood pulp; the imported raw skin and the exported semi-produced leather or produced leather; the imported copper scrap or copper raw material and the exported unrefined copper.

However, the processing trading businesses are permitted to be finished in the valid period approved complying with the present regulations, if these businesses of the kinds of products hereof were approved by the responsible department of commerce and filed in the Custom, with no postpone when the valid period ends. And if those products were not exported after processed, a canceling formality of verification would be done according to the handbook of the regulation about domestic sales of the processing trade products. The policy aforesaid also applies to the areas under custom's special supervision, such as export processing zone and tax-protected zone. The detailed regulations are to be announced by the circular from the Ministry of Commerce and the General Administration of Customs of the People's Republic of China.

2.

Adjusting the tax-refund policy concerning parts of the products

From January 1st. 2006, the refund tax is removed with respect to coal tar, raw skin, pelt, wet blue skin, wet leather and dry leather. And the rate of the refund tax is decreased to 5% with respect to the 25 agriculture chemicals listed in PIC Convention (Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, Rotterdam) and POPSP Convention (International Legally Binding Convention for Restricting Certain Persistent Organic Pollutants), the disperse dyestuff, Mercury, Wolfram, Zinc, Stibium and their products, the metal Magnesium with its primary proceedings, Sodium Sulfide and Paraffin Wax. The detailed arrangements are to be announced by the Ministry of Commerce and the General Administration of Customs of the People's Republic of China.

3.

Controlling the exportation amount of some resource products

To further control the exportation amount of some exhaustible resource products in the respect of protecting domestic resources, when controlling the domestic production and consumption. The exportation amount of products like rare earths and so on will adjust to decrease to some extent. The exportation quota of coke will sustain the last year's level, and no more increase. To strictly control the exportation of refined oil product in the form of processing trade. The exportation amount of gas, coal and Diesel will be decided and verified by the Ministry of Commerce and the National Development and Reform Commission, the Customs will release those goods according to the verified amount. In the year of 2006, except those long-period contracts contracted by Dalian West Pacific Petrochemical Co. or Zhanjiang Dongxing Refinery, no more crude oil processing trade contracts will be approved. The exportation amount of the long-period contracts which are executed by China Petroleum & Chemical Corporation or PetroChina Company Limited with foreign enterprises (including those aviation fuel supplied to Hongkong or Macao, etc.) will be included to the greatest extent in the aforesaid exportation amount, or, which can also be treated as ordinary exportations if such arrangement is really difficult. Each department should keep focusing on the development situation of high energy-consuming, high-polluted industry, instruct the enterprises to decrease the consumption of energy and resources, extend the industry chain, improve the structure level, technology content and added value of exported commodities and develop new competences through technology innovation as required by the Scientific Development Outlook.

The National Development and Reform Commission

Ministry of Finance

Ministry of Commerce

Ministry of Land and Resources

The General Administration of Customs

The State Administration of Taxation

The State Environmental Protection Administration

Dec, 9th, 2005