Laws of the People's Republic of China

Ministry of Commerce

Announcement of the Ministry of Commerce of the People's Republic of China

No. 65

Detailed Rules for Implementing the management of Import Tariff Quota of Wool and Woolen Sliver were drawn up in accordance with Temporary Measures on Management of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry of Commerce and National Development and Reform Commission), and are hereby published.

Ministry of Commerce

September 26, 2005

Detailed Rules for Implementing the management of Import Tariff Quota of Wool and Woolen Sliver

Article 1

These detailed rules are drawn up for the purposes of implementing the management of import tariff quota of wool and woolen sliver in accordance with Temporary Measures on Management of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry of Commerce and National Development and Reform Commission ).

Article 2

The quantity of import tariff quota of wool in 2006 is 287 thousand Ton, and woolen sliver is 80 thousand Ton.

Article 3

All wool and woolen sliver imported by trade are brought into management of import tariff quota of wool and woolen sliver.

Article 4

In 2006, import tariff quota is distributed in the form of "First come, first obtain". The applicants apply for import tariff quota of wool and woolen sliver by import contract of wool and woolen sliver or Approval Certificate of Processing Trade Business and related materials. Ministry of Commerce issues Certificate of Import Tariff Quota of Agricultural Products to the qualified applicants according to the principle of "First come, first obtain" through authorized organs. The application is not accepted when the distributed accumulative total quantity comes to the quantity of tariff quota of wool and woolen in 2006.

Article 5

Application requirements

1.

The enterprises that have registered in industrial and commercial administrations before January 1, 2006 and passed the annual examination made by industrial and commercial administrations in accordance with rules;

2.

No activities breaking the rules in import of wool and woolen sliver in customs, industry and commerce, taxation, quality examination and foreign exchange;

3.

No activities that violate Temporary Measures on Management of Import Tariff Quota of Agricultural Products and Detailed Rules for Implementing the Management of Import Tariff Quota of Wool and Woolen Sliver in 2005 published by Ministry of Commerce and National Development and Reform Commission.

Article 6

Quota applicants submit their applications to the organs authorized by Ministry of Commerce in the area the enterprises are located by import contract of wool and woolen sliver (Processing trade enterprises should also provide Approval Certificate of Processing Trade Business. The applicants should fill in Application Form for Import Tariff Quota of Wool and Woolen Sliver (see Appendix 1) and provide above materials.

Article 7

Quota applicants may obtain the Application Form for Import Tariff Quota of Wool and Woolen Sliver from the organs authorized by Ministry of Commerce or download (copy) it from the network of Ministry of Commerce: http://www.mofcom.gov.cn.

Article 8

Quota applicants may apply for tariff quota more times in Gregorian calendar year, but must abide by:

1.

The accumulative total quantity of import tariff quota applied before September 30, 2006 by the applicants who had real import achievements in 2005 (except for processing trade, the same below) does not exceed actual import quantity in 2005(according to the accumulative quantity in License for Import Tariff Quota of Agricultural Products received by original license issuing organ and signed by the customs. 300 ton may be applied for if the actual import quantity in 2005 is less than 300 ton.

2.

The accumulative quantity applied before September 30,2006 by the applicants who had no real import achievements in 2005 does not exceed 300 ton.

Article 9

If the final consumers that obtained quota finish the import quantity stipulated in Article 8 (It is calculated according to the accumulative quantity in License for Import Tariff Quota of Agricultural Products received by original license issuing organs and signed by the customs) after September 30, they may apply for import quota continuously.

Article 10

The organs authorized by Ministry of Commerce should apply for the quota through computer internet system of Ministry of Commerce after verification and confirming that the applications meet with the requirements of Article 5 , 8 and 9, and fax the verified and signed enterprises' application form to Ministry of Commerce. The subsequence shown in management network terminal of Ministry of Commerce is taken as the criterion.

Article 11

Ministry of Commerce informs the authorized organs the approval result within 5 working days at the receipt of the application through inter-net and the faxed paper.

Article 12

The organs authorized by Ministry of Commerce issue License for Import Tariff Quota of Agricultural Products to final consumers according to the quantity approved by Ministry of Commerce at the receipt of approval notice.

Article 13

License for Import Tariff Quota of Agricultural Products is valid within 6 months as of the issuing day, but the period of validity must not exceed December 31, 2006. The period of validity of License for Import Tariff Quota of Agricultural Products must not exceed the closing date of reselling export completed products in Approval Certificate of Processing Trade Business.

Article 14

If the products that are shipped from starting port before December 31, 2006 and arrive in the next year, the final consumers should apply for extension to original license issuing organs before December 31. The extension must not exceed the end of February, 2007. To the processing trade, if the import has not been finished or has not been wholly finished before December 31, the License for Import Tariff Quota of Agricultural Products for next year may be obtained for the part that has not been imported by original tariff quota license, but the newly obtained quota license must not exceed the closing date of reselling export completed products in the original Approval Certificate of Processing Trade Business.

Article 15

If there is any change or extension in processing trade business, a new License for Import Tariff Quota of Agricultural Products should be obtained in original license issuing organs by Changing Certificate of Approval Certificate of Processing Trade Business and License for Import Tariff Quota of Agricultural Products. The period of validity must not exceed the changed or extended deadline in Changing Certificate of Approval Certificate of Procession Trade Business.

Article 16

If final consumers do not use tariff quota within the period of validity of quota license, the original quota license should be returned to original license issuing organs. Ministry of Commerce should recall the quota listed in the license and bring it into tariff quota allowance of wool and woolen sliver.

Article 17

Whoever obtains License for Import Tariff Quota of Agricultural Products by cheating with forged contract or materials will be punished in accordance with the provisions of Temporary Measures on Management of Import Tariff Quota of Agricultural Products.

Article 18

Final consumers should send the first receipt (the document used by the consignees to go through the customs) of License for Import Tariff Quota of Agricultural Products signed by the customs to original license issuing organs within 20 working days after going through custom formalities.

Article 19

The interpretation of these detailed rules is vested in Ministry of Commerce.

Appendix :

(1)

Application Form for Import Tariff Quota of Wool and Woolen Sliver

(2)

Tax Items and Rate Schedule of Import of Wool and Woolen Sliver in 2006