Laws of the People's Republic of China

No. 484 The Decision of the State Council on Revising the Regulation of the People's Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant Technologies is hereby promulgated, and shall go into effect as of the date of promulgation. Premier of the State Council Wen Jiabao

January 26, 2007

Decision of the State Council on Revising the Regulation of the People's Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant Technologies

As regards the Regulation of the People's Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant Technologies, the State Council has determined to make the following amendments:

1.

Article 1 shall be revised as: "The present Regulation is formulated in order to reinforce the export control of dual-purpose nuclear products and relevant technologies, prevent nuclear weapons from diffusing, keep away the acts of nuclear terrorism, promote the international cooperation in peacefully utilizing nuclear energy, and safeguard national security and social public benefits."

2.

Article 2 shall be revised as: "The export of dual-purpose nuclear products and relevant technologies" as mentioned in the present Regulation means the transfer of the equipment, materials, software and relevant technologies incorporated in the List for the Export Control of Dual-purpose Nuclear Products and Relevant Technologies (hereinafter referred to as the Control List) in methods of the trading export, endowments to and exhibitions in foreign countries or regions, as well as scientific and technological cooperation with and assistance and services, etc. to foreign countries or regions."

3.

Article 3 shall be revised as: "The state shall strictly control the export of dual-purpose nuclear products and relevant technologies, rigorously perform its international obligation of not diffusing nuclear weapons, and prevent dual-purpose nuclear products or relevant technologies from using for the purpose of nuclear explosion or the activities of nuclear terrorism.

The state may take any necessary measure for the export of dual-purpose nuclear products and relevant technologies in order to maintain national security as well as international peace and safety"

4.

Article 6 shall be revised as: "The export of dual-purpose nuclear products and relevant technologies shall be approved on the basis of the recipient party's promises as follows:

(1)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or any duplicate thereof will not be utilized for nuclear explosion purposes or any other purpose exceeding the declared final ones.

(2)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or any duplicate thereof will not be utilized for the nuclear fuel cycling that has not accepted the security supervision of International Atomic Energy Agency. As for a country that has entered into a voluntary security agreement with International Atomic Energy Agency, this provision may not apply.

(3)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or any duplicate thereof will not be transferred to a third party other than the declared final users without the Chinese government's consent."

5.

Item (3) of Article 8 shall be revised as: "Technical explanations or testing reports on dual-purpose nuclear products and relevant technologies"; and Item (4) shall be revised as: "Certifications about final users and final uses".

6.

Article 9 shall be revised as: "As regards the dual-purpose nuclear products and relevant technologies that are exported for overseas exhibitions, are exclusively used by the Chinese party abroad or are exported for overhauling, and they will be transported back within the prescribed period, or that are transported back after the overhauling in China to foreign countries or regions, or are under any other circumstance as provisioned by the Ministry of Commerce, the exporter can, when applying to the Ministry of Commerce for examination and approval, be exempted from submitting the documents as prescribed by Article 8 of the present Regulation."

7.

Article 11 shall be revised as: "The Ministry of Commerce shall examine the application upon receipt of an export application form and the documents prescribed by Article 8 of the present Regulation and make a decision on approval or disapproval within 45 working days in collaboration with China Atomic Energy Authority or with China Atomic Energy Authority and other departments concerned, as well as with the Ministry of Foreign Affairs in case diplomatic policies are involved."

8.

Paragraph 1 of Article 12 shall be revised as: "As regards the export of dual-purpose nuclear products and relevant technologies that will result in great influences to national security, social pubic interests or diplomatic policies, the Ministry of Commerce in collaboration with other related departments shall report this to the State Council for approval."

9.

A new article shall be added as Article 16 : "The customs house may propose a challenge on whether the export of the equipment, materials, software and relevant technologies exported by an exporter needs to apply for an export permit for dual-purpose nuclear products and relevant technologies, and may request this exporter to apply for a certification document on whether the exported goods fall within the scope of export control over dual-purpose nuclear products and relevant technologies to the Ministry of Commerce; in case the exported goods really fall within the scope of export control over dual-purpose nuclear products and relevant technologies, the exporter shall, according to the present Regulation, apply for an export permit for dual-purpose nuclear products and relevant technologies. The concrete measures shall be prepared by the General Administration of Customs in collaboration with the Ministry of Commerce."

10.

Article 16 shall be altered as Article 17 , and be revised as: "The Ministry of Commerce shall terminate or revoke an granted export permit, and notify to related departments in written form, where the recipient party violates a corresponding promise made in accordance with Article 6 of the present Regulation or if the risk of nuclear proliferation or any act of nuclear terrorism occurs."

11.

A new article shall be added as Article 18 : "An exporter shall set up and perfect an inner control system for the export of dual-purpose nuclear products and relevant technologies, and appropriately maintain related contracts, invoices, documents, business letters and telegrams and other materials for five years or more. The Ministry of Commerce may consult and copy related materials."

12.

A new article shall be added as Article 19 : "Where an exporter knows, ought to know or is informed by the Ministry of Commerce that the equipment, materials, software or relevant technologies as exported involve the risk of nuclear diffusing or may be used for nuclear terrorism, they shall dealt with them according to the present Regulation, even though such equipment, materials, software or relevant technologies are not incorporated into the Control List."

13.

Article 17 shall be altered as Article 20 and be revised as: "The Ministry of Commerce may, upon approval of the State Council and in collaboration with relevant departments, temporarily decide to carry out the control to the export of specific dual-purpose nuclear products and relevant technologies that are not incorporated into the Control List in accordance with the present Regulation.

The "export of specific dual-purpose nuclear products and relevant technologies" as provisioned in the preceding paragraph shall be subject to approval in accordance with the present Regulation."

14.

A new article shall be added as Article 21 : "The Ministry of Commerce shall organize the experts in related fields to establish a consulting committee for the control of dual-purpose nuclear products and relevant technologies, which shall take charge of the consultation, evaluation and demonstration, etc. of dual-purpose nuclear products and relevant technologies."

15.

A new article shall be added as Article 22 : "The Ministry of Commerce or the Ministry of Commerce and related departments may investigate and deter the acts that are suspected of violating the present Regulation. Where necessary, the Ministry of Commerce may circulate a notice on the equipment, materials, software and relevant technologies to be exported to the customs house. As regards those goods under customs supervision, the customs house may check or detain them. As regards those goods beyond the customs supervision, the Ministry of Commerce may seal up or detain them. Related departments and individuals shall cooperate and assist."

16.

Article 18 shall be altered as Article 23 , and be revised as: "Anyone who exports dual-purpose nuclear products in violation of the present Regulation shall be punished in accordance with the Customs Law.

Anyone who exports the relevant technologies of dual-purpose nuclear products in violation of the present Regulation shall be warned by the Ministry of Commerce, and a fine of more than one time but less than five times the illegal business volume shall be imposed; where the illegal business volume is less than 50,000 Yuan, a fine of more than 50,000 Yuan but less than 250,000 Yuan shall be imposed; in case illegal gains exist, the illegal gains shall be confiscated; and in case a crime is constituted, criminal liabilities shall be investigated."

17.

Article 19 shall be altered as Article 24 , and be revised as: "In case anyone forges, alters, buys or sells export permits, it/he shall be punished in accordance with the related laws and administrative regulations; and if a crime is constituted, criminal liabilities shall be investigated.

Where anyone obtains export permits by frauds or any other unjustifiable means, these export permits shall be confiscated by the Ministry of Commerce and a fine of more than one time but less than five times the illegal business volume shall be imposed upon the violator; in case the illegal business volume is less than 50,000 Yuan, a fine of more than 50,000 Yuan but less than 250,000 Yuan shall be imposed; if there exists illegal gains, the illegal gains shall be confiscated; and in case a crime is constituted, criminal liabilities shall be investigated."

18.

Article 21 shall be altered into Article 26 , and be revised as: "The Ministry of Commerce may, in light of the actuality, adjust the Control List, and publicize it in collaboration with China Atomic Energy Authority and related departments."

19.

A new article shall be added as Article 28 : "The present Regulation shall be applicable to the export of dual-purpose nuclear products and relevant technologies from bonded areas, export processing zones, other special areas under the customs house's surveillance, export surveillance warehouses, bonded logistics centers or other bonded surveillance areas.

The transit, transshipment or pass of dual-purpose nuclear products and relevant technologies shall be governed by the present Regulation by analogy."

The order of articles and some wording have been adjusted and amended accordingly in addition.

The present Decision shall go into effect as of the promulgation date.

The Regulation of the People's Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant Technologies shall be revised in accordance with the present Decision, and be re-promulgated.