Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning Printing and Distributing Rules for the Implementation on Administration of Import by Enterprises with Foreign Investment

WaiJingMaoBuZiFa [1995] No.389

June 9, 1995

Rules for the Implementation on Administration of Import by Enterprises with Foreign Investment is hereby delievred to you, please abide by and carry out. Any problem encounted should be reported to MOFTEC in time. Attachment:Rules for the Implementation on Administration of Import by Enterprises with Foreign Investment

Article 1

These Rules are formulated in accordance with relevant laws, regulations on enterprises with foreign investment, the Interim Measures on Administration of Import Quota of General Commodities and the Interim Measures on Administration of Automatic Registration of Import of Specific Commodities.

Article 2

Import of commodities by enterprises with foreign investment (Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-capital enterprises) shall be handled in accordance with these Rules.

Article 3

Import commodities mentioned in these Rules refer to all commodities other than mechanical and electrical products, including commodities subject to quota control, specific registered commodities and other commodities.

Article 4

An enterprise with foreign investment which imports commodities subject to quota control within the amount of its investment may be exempted from obtaining a quota certificate. The enterprise shall apply for an import license based on a list of import equipment and materials approved by the competent department of foreign trade and economic cooperation and Customs shall conduct inspection and release based on the import license. Where specific registered commodities and other commodities are to be imported, Customs will conduct inspection and release based on the list of import equipment and materials approved by the competent department of foreign trade and economic cooperation and no other procedures for examination and approval shall be undergone.

Article 5

With respect to commodities imported by an enterprise with foreign investment for producing products for domestic sale, the commodities subject to quota control must be incorporated into the total annual import quota plan of the enterprise with foreign investment, and the enterprise shall apply for an import license based on a certificate of quota and Customs shall conduct inspection and release based on the import license. Where specific registered commodities are to be imported, the enterprise must handle a registration certificate of import, and Customs shall conduct inspection and release based on the registration certificate of import and inspect and release other commodities based on the enterprise's import contract and relevant documents.

Article 6

Commodities (including commodities subject to quota control, specific registered commodities and other commodities) imported by an enterprise with foreign investment for producing export products shall be supervised and controlled as bonded goods by Customs.

Article 7

The competent departments of foreign trade and economic cooperation of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan shall, prior to October 31 of each year, submit the demand for commodities subject to quota control which are required to be imported by enterprises with foreign investment in their respective regions for producing products for domestic sale in the following year, to the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as MOFTEC). After finishing verification and summarization, MOFTEC shall, prior to November 15 of each year, submit the demand for import commodities subject to quota control from enterprises with foreign investment nationwide to the State Planning Commission (hereinafter referred to SPC), and upon an aggregate balance achieved by SPC, the demand shall be incorporated into the national import plan for commodities subject to quota control.

MOFTEC shall, based on the scale of the total amount of imports by enterprises with foreign investment determined by SPC, draw up an annual allocation plan, issue it and organize its implementation. MOFTEC may, after having considered the state of affairs concerning the plan implementation and reported to SPC for obtaining consent, adjust the plan once each year in the third quarter. MOFTEC shall, on the basis of 30% of the total amount of planned imports for the current year, make forward arrangements for import quotas for the following year in the fourth quarter of each year. These allocation plans, adjustments and forward arrangements shall be simultaneously reported to SPC for the record.

Article 8

MOFTEC may authorize the competent departments of foreign trade and economic cooperation of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan to accept, within the quotas issued by MOFTEC, the applications to import commodities subject to quota control for producing products for domestic sale by enterprises with foreign investment within their respective regions and sign and issue certificates of quota; undergo procedures for import registration of specific registered commodities imported for producing products for domestic sale and sign and issue registration certificates of import.

The authority to sign and issue certificates of import quota and import registration shall not be delegated to lower levels.

Article 9

Commodities subject to quota control which are to be imported for producing products for domestic sale by enterprises with foreign investment established by enterprises directly subordinate to relevant departments of the State Council (local enterprises have no shares in such enterprises) shall be summarized by the competent department and then reported to MOFEC. MOFTEC shall be responsible for undergoing relevant import procedures for the commodities subject to quota control and specific registered commodities for the above-mentioned enterprises.

Article 10

An enterprise with foreign investment applying for import quota must submit the contract, articles of association of the enterprise and relevant approval documents to the local competent department of foreign trade and economic cooperation, and the competent department shall verify and issue a certificate of quota based on the enterprise's actual production capacity and its import requirements. Where a certificate of quota shall not be issued, the competent department shall give a reply within ten working days.

Article 11

Special Stamp for Examination and Verification of Imports by Enterprises with Foreign Investment uniformly produced by MOFTEC shall be the valid stamp to be affixed to the certificate of import quota or the registration certificate of import for an enterprise with foreign investment.

Article 12

Where there is any violation of the provisions of these Rules, for example, the certificates of quota are issued without quota or exceeding quota, MOFTEC shall, depending on the seriousness of the circumstances, give a circular of criticism even up to suspension or revocation of the examination and approval and license-issuing authority on the units concerned and the responsible person. If the circumstances are serious enough to violate the criminal law, criminal liability shall be investigated according to law.

Article 13

The competent departments of foreign trade and economic cooperation of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan shall, prior to the fifth day of each month, make a report on the state of affairs concerning the issue of certificates of import quota and registration certificates of import for the previous month to MOFTEC and reported to SPC by MOFTEC after its summarization.

Article 14

Import of crude oil, processed oil products and steel by enterprises with foreign investment shall be handled in accordance with relevant provisions of the State Council.

Article 15

Import of commodities by enterprises with Taiwan, Hong Kong, Macao or overseas Chinese investment shall be handled by referring to these Rules.

Article 16

MOFTEC shall be responsible for the interpretation of these Rules.

Article 17

These Rules shall enter into force as of July 1, 1995.