Laws of the People's Republic of China

Ministry of Commerce, China Export & Credit Insurance Corporation

Circular of the Ministry of Commerce and China Export & Credit Insurance Corporation on Implementing Export Credit Insurance

Shang Gui Fa [2005] No.389

To competent commercial departments of various provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Crops, as well as various business organizations of China Export & Credit Insurance Corporation:

In order to implement the Several Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual, Private and other Non-Public Enterprises (Guo Fa [2005] No.3), further perfect export supporting policies of individual, private and other non-public enterprises (hereinafter referred to as the "non-public enterprises"), improve the export promotion system of non-public enterprises and boost the active participation of non-public enterprises in "going global" so as to explore international market, the Ministry of Commerce and China Export & Credit Insurance Corporation (hereinafter referred to as the "China Credit Insurance" ) decide to grant special preferential supporting measures to non-public enterprises. Therefore, related matters are hereby released as follows:

1.

Competent commercial departments at all levels and various business organizations of China Credit Insurance shall establish effective work coordination mechanism, help non-public enterprises actively use export credit insurance to open up international market, improve their abilities of risk management and increase their profits from internationalized business.

2.

The Ministry of Commerce and China Credit Insurance shall jointly provide non-public enterprises with the training for export trade risk management, give assistance to such enterprises in establishing and improving export trade risk management mechanism so as to avoid trade hazards and realize sound operation.

3.

Various business organizations of China Credit Insurances shall closely cooperate with local competent commercial departments, give publicity of policy-related functions of export credit insurance to non-public export enterprises, timely learn about needs of these enterprises, formulate special service plans, offer target-oriented support and make pertinent reports to local competent commercial departments without delay.

4.

As for providing non-public export enterprises with customized convenient services, China Credit Insurance and various business organizations thereof shall, based on the needs of enterprises, customize service programs of export credit insurance for such enterprises.

5.

Small and medium non-public export enterprises shall be provided with simplified procedure for insurance application and convenient services. The Small and Medium Enterprises' Comprehensive Insurance covered by the short-term export credit insurance businesses of China Credit Insurance shall, at its experimental period, be fully available to small and medium non-public enterprises

6.

Non-public enterprises shall be given active assistance in solving their financing problems and provided with trade financing facilities and guaranty services under export credit insurance.

7.

China Credit Insurance shall start the online business operation system named "Xinbaotong" for non-public enterprises under the insurance coverage, help these enterprises reduce labor costs and increase their work efficiency.

8.

China Credit Insurance shall provide non-public enterprises with export credit management preferential services in an all-round way for these enterprises' going global, including such services of product mix as the short-term export credit insurance, medium and long-term export credit insurance, overseas investment insurance, domestic trade credit insurance and overseas collection of business debts.

It is hereby notified that all districts and entities are requested to earnestly implement the spirits of this Circular, and report to the Ministry of Commerce (the Department of Planning and Finance) and China Credit Insurance (the Department of Business Development) any question found in the course of the said implementation.

The Ministry of Commerce

China Export & Credit Insurance Corporation

August 10, 2005