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CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION

    The State Council agrees with the "Report Requesting Instructions on the
Imposition of Export Licence Procedures for the Export of Some Goods and
Materials Beyond the State Plan" submitted by the State Import and Export
Commission and the State Planning Commission, and the Report is hereby
transmitted to you; it is required you consider carefully the ways to implement
this Report in accordance with the prescribed categories of goods and
materials.
A REPORT REQUESTING INSTRUCTIONS ON THE IMPOSITION OF EXPORT LICENCE
PROCEDURES FOR THE EXPORT OF SOME GOODS AND MATERIALS BEYOND THE STATE PLAN

     With the further implementation of the policy for the readjustment of the
national economy, and with the structural reform of foreign trade and the
gradual decentralization of power of management, the foreign trade of our
country will have a new development. With a view to meeting the needs of the
development, various localities and departments have established some export
institutions to engage directly in export business. In the course of these
developments, owing to poor communication among different localities and
departments, the State, on the one hand, imports in large quantities some
finished products in short supply at home and other goods and materials that
are of the high energy consumption and are not suitable for export, while some
localities or departments, on the other hand, are organizing the export of the
aforesaid goods and materials beyond the state plan. For the same kind of
commodity, the price is low when it is exported, and the price is high when it
is imported, and consequently, the State suffers losses in terms of foreign
exchange, and is also affected unfavourably with respect to the needs for
construction. If this situation is allowed to continue, the country will suffer
serious losses. We have, therefore, consulted with the relevant departments,
and hereby put forward the following proposals with respect to the export of
the goods and materials that are in short supply in China:

    1. We hereby propose to designate eleven categories of badly-needed goods
and materials, on the export of which, if beyond the state plan, the export
licence procedures shall be imposed (the specific catalogue is attached below
as appendix). The products in short supply as mentioned above are relatively in
short supply, for, in the course of the implementation, circumstances might
change. It is proposed here that the State Import and Export Commission and the
State Planning Commission, while working out the annual plan for the national
economy, and through consultation with the competent authorities concerned, set
about revising, in good time, the aforesaid catalogue in the light of the
supply-and-demand situation.

    2. With respect to export goods and materials subject to the export licence
procedures with the exception of those export commodities that are included in
the State plan, materials imported to execute processing contracts, or
imported by foreign trade departments for processing into finished goods, or
contained in the approved and signed contracts for compensation trade, or
commodities on which agreements have been signed between foreign trade
departments and local units for supporting the production for export, if any
locality or department is to make arrangements, beyond the State plan, for the
export of the said goods and materials, or to organize exchange of categories
and types that are favorable to us, the case shall obtain the consent of the
competent allocating departments, and be submitted to the State Import and
Export Commission and the State Planning Commission for approval.

    3. Customs offices at various localities should improve their control over
the goods and materials that are exported beyond the State plan. In order to
facilitate the administration of the Customs offices over the aforesaid export
goods and materials, all localities and departments that deal in the eleven
categories of export goods and materials stipulated in the said catalogue,
either within or beyond the State plan, shall all apply to the foreign trade
departments for export licences and the Customs offices shall examine the
export according to the licences; otherwise, no clearance shall be given to
these goods and materials.

    4. All the goods and materials listed in the catalogue for export beyond
the State plan, so long as their quality meets the state standards and no
problem arises in transportation, shall be purchased at the prices set by the
state, by the competent allocating departments, or the competent allocating
departments shall assist in locating users for domestic sale.

    If the above proposals are feasible, we request that they be approved and
transmitted to all departments and all provinces, autonomous regions, and
municipalities directly under the Central Government for implementation as of
February 1, 1982.
CATALOGUE OF GOODS AND MATERIALS SUBJECT TO THE EXPORT LICENCE PROCEDURES
FOR THE EXPORT BEYOND THE STATE PLAN

    1. crude oil, heavy oil, refined oil.

    2. coal.

    3. steel products: sheet steel (including zinc-plating steel, tin-plating
steel), strip steel, medium and heavy steel plate (including steel plate for
ship-building), welded pipe (including zinc-plating welded pipe), square
billet.

    4. pig iron, coke, iron alloy, chromium ore.

    5. plate glass.

    6. non-ferrous metals: copper, aluminium, lead, zinc, tin, cobalt, bismuth,
concentrate molybdenum ore and its products, tellurium; copper products,
aluminium products, and lead products placed under the state's unified
allocation.

    7. timber: log, sawn wood products, plywood.

    8. cement produced by large, medium-sized and small cement mills.

    9. natural rubber.

    10. sodium carbonate, polyethylene, polypropylene, phosphorus ore,
mawsonite, sulphur, benzene anhydride, liquid hydrocarbon.

    11. rice, soybean, corn, sugar, cotton, rosin, tung oil, flue-cured
tobacco.?