CIRCULAR OF THE STATE COUNCIL CONCERNING RECTIFYING THE ORDER OF FRONTIER LOCAL TRADE MANAGEMENT AND CHECKING THE FLOW OF FAKE AND LOW-QUALITY COMMODITIES ACROSS THE BORDER

Circular of the State Council Concerning Rectifying the Order of Frontier Local Trade Management and Checking the Flow of Fake and Low-quality Commodities Across the Border

1. To rectify the management order of frontier and local trade and check
the flow of the fake and low-quality commodities across the border is not only
an important issue in relation to the future and vitality of the development
of frontier and local trade, but also a political issue affecting the
reputation of our State and nation. The people's governments at all levels and
the departments concerned should fully understand the issue, adopt practical
and effective measures and pay close attention to this work.

2. Companies of foreign economic relations and trade attached to the
departments of the Central Government and provinces, autonomous regions and
municipalities directly under the Central Government and the enterprises with
the authority of import and export management should be encouraged and
supported to play a leading role in adopting active measures, to expand the
economic and trading relations with the Independent Countries Community and
other neighbouring countries, and try to export the State's high quality
commodities. Companies of foreign economic relations and trade and other
enterprises with the approved authority of management of exchange of
commodities should manage according to the law, abide by the State policy and
regulations, implement conscientiously the strategy of "winning over the
consumers by offering them quality goods", and decline to purchase or act as
an agent to sell the fake and low-quality commodities.

As for the export commodities required for sanitary registration (such as
beverages, wine, canned foods, small foodstuffs, meat, etc.), companies of
foreign economic relations and trade and other enterprises with the authority
of exchange commodities management should purchase them from those factories
with the certificate of sanitary registration.

3. The frontier provinces and autonomous regions should check conscientiously
the various enterprises which are linked with the enterprises with the
authority of management of frontier and local trade and carrying out
activities of foreign relations and trade (i.e. "linking company"). The result
of the check-up should be reported to the Ministry of Foreign Economic
Relations and Trade before the end of October this year.

4. The quality control procedures of manufacturing enterprises should be
improved in order to halt the manufacture of fake and low-quality products.
The enterprises and individuals who produce or purchase for export (or sell to
aliens) fake and low-quality commodities should be penalized according to the
regulations promulgated by the State Council and the departments concerned.
Those who have violated the Criminal Law should, according to "The Decision
Regarding the Punishment of Criminals Producing and Selling Fake and
Low-Quality Commodities" approved by the Standing Committee of the National
People's Congress, be handed over to the judicial organs and investigated for
their responsibility in the crime according to law.

Rewards shall be given according to the merits to those who have reported
the crime of producing or selling fake and low-quality commodities, while
their legal rights and interests shall be protected.

5. Public security and procuratorial organs should place a case on file
for investigation of the illegal and criminal act of collusion with each other
and transportation of fake and low-quality commodities across the border by
various means, strike relentless blows at people violating the law or
criminals sabotaging the management order of the frontier and local trade.
Public security organ should coordinate with the administrative organs of
industry and commerce and the institutions of technological supervision and
administration to resolutely check and ban the shelter for processing,
producing, storing and selling fake and low-quality commodities and penalize
more severely people breaking the law and criminals, according to the law.

6. The administrative organs of industry and commerce should strengthen
the administration of the frontier's exchange marketing and the frontier
market of the Chinese and neighbouring countries. The industrial and
commercial enterprises and individual industrialists or traders engaged in
the frontier's market of exchange and the frontier market of the Chinese and
neighbouring countries should conduct their trading activities sternly
following the management range and pattern verified and approved by the
administrative organs of industry and commerce. Managers should issue legal
bills or receipts while wholesaling commodities. It is strictly forbidden to
manage without certificates or sell fake and low-quality commodities.

7. The institutions of technological supervision and administration in the
locations should supervise and check the quality of the commodities in the
markets of exchange and the frontier market of the Chinese and neighbouring
countries, reinforce supervision, selective examination and the action of
"confiscating the fakes" and, together with the executive organs concerned,
severely penalize according to the law the enterprises and individuals
producing and selling fake and low-quality commodities.

8. Travelers leaving the country shall take with them goods for their own
use according to the related agreements and regulations concerning
international passenger transportation; those who go to the countries of the
Independent Countries Community which have not signed bilateral or multiple
agreements with China should follow strictly the regulations concerning the
luggage transportation issued by the State and the administrative organs of
communication and transportation.

9. The institutions in charge of import and export commodities inspection
at various levels should inspect and examine all the export commodities of the
frontier and local trade and markets of exchange. At present the emphasis of
inspection is on commodities such as garments, shoes, electronic equipment and
foodstuffs. Commodities which are defined by regulations in the contract shall
be inspected and examined according to the contract; those without specified
regulations in the contract shall be inspected and examined according to the
related standard of our country; those without contracts shall be inspected
and examined with sale receipts according to the related standards of our
country. The commodities concerning safety or sanitation shall all be
inspected and examined according to the governmental standard and requirements
of the import country. The unqualified commodities verified by inspection and
examination cannot be passed, even if the importer permits. Commodities
without contracts or sale receipts or with no place of production or name of
the manufacturer identified shall be neither inspected and examined, nor let
pass.

10. Following the related regulations, customs authorities should deal
with the luggage carried by passengers both entering and exiting the country.
It should strengthen the supervision of the commercial goods carried by
Chinese or foreign passengers according to the regulations of the passenger
luggage division. Commodities which are required to be inspected and examined
by law or the commodities required to be inspected and examined by the
regulations in this circular should be verified and let pass only with the
certificate of inspection and examination issued by the institutions in charge
of import and export commodities inspection, official `let-pass' documents or
the stamp on the declaration form.

Commercial goods carried by Chinese or foreign passengers shall go through
procedures of import and export inspection, customs declaration and
consignment. The institutions with the authority of customs declaration can be
entrusted to go through the procedure of declaration for passengers. The
institution of import and export commodities inspection should inspect the
commodities declared for export strictly according to the regulations.

11. All the frontier ports approved for opening-up by the State Council
must set up customs and institutions of import and export commodities
inspection and should have compatible places for inspection and examination;
the category-1 ports which are not approved for opening-up or resumption by
the State Council and the category-2 ports which are not approved for
opening-up by the people's government of provinces, autonomous regions and
municipalities directly under the Central Government should be closed by the
end of 1993. The supervision of the customs and the inspection of commodities
should also be reinforced at seasonal frontier ports.

The frontier ports which are listed in the agreements of opening up ports
between our country and the neighbouring countries should be coordinated by
the Ministry of Foreign Affairs and verified as soon as possible through
diplomatic channels. At the same time the preparations for the establishment
of customs, frontier defences, import and export commodities inspection and
port institutions should be speeded up. The local people's government should
support the construction of the institutions and facilities of the frontier
ports.

12. All the people's governments of provinces and autonomous regions,
with the coordination of the customs and the departments concerned of import
and export commodities inspection, frontier inspection, administration of
industry and commerce, technological supervision and the public security
organs, procuratorial organs and people's courts, should mobilize a special
force to investigate and deal with typical cases, and punish strictly and
severely. The institutions of the joint-inspection and the departments
concerned should be devoted to their service, be honest in performing their
duties, coordinate each other closely, take charge of the issue together,
and make progress in the prevention of the flow of fake and low-quality
commodities across the border.

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-09-23	Effective Date	1993-09-23

Laws of the People's Republic of China

CIRCULAR OF THE STATE COUNCIL CONCERNING RECTIFYING THE ORDER OF FRONTIER LOCAL TRADE MANAGEMENT AND CHECKING THE FLOW OF FAKE AND LOW-QUALITY COMMODITIES ACROSS THE BORDER