Laws of the People's Republic of China

the Ministry of Commerce

Announcement of the Ministry of Commerce

No. 92

The Detailed Rules for the Administration of Issuance of Automatic Import Licenses for Automobile Products, which were formulated in accordance with the Measures for the Administration of Import of Machinery and Electronic Products and the Measures for the Administration of Automatic Import License of Goods, are promulgated hereby and shall go into effect as of January 1, 2005.

The Ministry of Commerce

December 17, 2004

Detailed Rules for the Administration of Issuance of Automatic Import Licenses for Automobile Products

Article 1

For the purpose of effectively monitoring the information on automobile products, maintaining and regulating the normal order of domestic automobile market, these Detailed Rules are formulated in line with the Measures for the Administration of Import of Machinery and Electronic Products and the Measures for the Administration of Automatic Import License of Goods.

Article 2

The automobile products as mentioned in these Detailed Rules shall refer to finished automobiles, whole-set automobile fittings, assemblies or systems of fittings which constitute the features of finished automobiles, assemblies or systems of automobile parts, as well as key automobile components and parts. For the specific names and codes of the merchandises, please refer to the Catalogue of Goods Subject to Automatic Import License.

Article 3

The Ministry of Commerce shall be responsible for the administration of automatic import license for automobile products . For the automobile products subject to the administration of the Ministry of Commerce that is listed in the Catalogue of Goods Subject to Automatic Import License, the Automatic Import License shall be issued by the Ministry of Commerce; for other automobile products, however, the Automatic Import License shall be issued by the local or departmental offices in charge of the import and export of machinery and electronic products.

Article 4

With respect to the automobile products listed in the Catalogue of Goods Subject to Automatic Import License, which are imported by such means as ordinary trade, barter trade, small quantity frontier trade, lease, assistance, presenting and donation, the importing entity shall, before declaring to the Customs for clearance, apply to the Ministry of Commerce or the local or departmental office in charge of the import and export of machinery and electronic products, which is authorized by the Ministry of Commerce (hereinafter referred to as the issuing bodies) for the Automatic Import License.

Article 5

An entity applying for importing automobile products shall, in addition to the materials as prescribed in Article 8 of the Measures for the Administration of Automatic Import License of Goods, submit the following materials accordingly under any of the following circumstances:

(1)

When applying for import of automobiles for sale, it shall submit the testimonial on its authorized automobile brand distribution (at the time of initial application in the Gregorian calendar year).

(2)

When applying for importation of automobiles for self use by means of ordinary trade, it shall submit its business license or organization certificate (photocopy); when applying for import of automobiles for self use by means of assistance, donation or presenting, it shall submit its business license or organization certificate (photocopy) and the testimonials relating to such assistance, donation or presenting.

(3)

In case an automobile production enterprise applies for importing whole-set fittings (including SKD and CKD) or assemblies (systems) of parts for production of automobiles, it shall submit the Announcement on the Road Motor Vehicle Production Enterprises and Their Products in which the type of automobile it produces is listed.

The importing entity shall be responsible for the authenticity of the materials it has submitted, and guarantee that its relevant business activities comply with the laws and administrative regulations of the State.

Article 6

The application for the Automatic Import License for automobile products may be filed with the issuing body either through computer network or in writing.

On-line application: the entity applying for import may login the website authorized by the Ministry of Commerce (that is, www.chinabidding.com), enter into the online application system for the import license, truthfully fill in the Application Form for Importation of Machinery and Electronic Products and other materials as required online, and meanwhile submits the relevant materials as required by Article 5 of these Detailed Rules to the corresponding issuing body.

Written application: the entity applying for import may obtain the Application Form for Importation of Machinery and Electronic Products from the issuing body or download it (which may be copied) from the website authorized by the Ministry of Commerce www.chinabidding.com), and then truthfully fill in the Form as required, and submit it together with other materials prescribed in these Detailed Rules to the issuing body by delivery, by mail, or by other suitable means.

Article 7

To apply for importing the automobile products that are listed in the Catalogue of Goods Subject to Automatic Import License, which are administered by the Ministry of Commerce, the applicant's application materials must be verified by the local or departmental office in charge of import and export of machinery and electronic products. The local or departmental office in charge of import and export of machinery and electronic products shall, after receipt of the complete application materials, verify them immediately or within 3 working days at the longest, and shall submit them to the Ministry of Commerce after verification. The Ministry of Commerce shall, after receipt of the application that are considered as correct in content and complete in form, issue the Automatic Import License immediately, or within 10 working days under a particular circumstance.

Article 8

To apply for importing the automobile products that are listed in the Catalogue of Goods Subject to Automatic Import License, which are administered by the local or departmental office in charge of import and export in charge of machinery and electronic products, the local or departmental office in charge of import and export of machinery and electronic products shall, after receipt of the complete application materials, issue the Automatic Import License immediately, or within 10 working days under a particular circumstance.

Article 9

Upon verification by the relevant department that automobile components and parts constituting features of finished automobile are imported, the Ministry of Commerce shall print and indicate "Constituting Features of Finished Automobile" in the remarks column of the Automatic Import License it issues.

Article 10

The automobile products imported for processing trade shall be re-exported in accordance with the provisions. In case the automobile products can not be exported due to certain reasons and need to be marketed inside China, the application shall be filed with the Ministry of Commerce by the enterprise in accordance with the relevant provisions on ordinary trade if such automobile products are subject to the administration of the Ministry of Commerce, and the Ministry of Commerce shall be responsible for issuing the Automatic Import License; while for other automobile products, the application shall be filed by the enterprise with the office at its locality or the office of the department to which it is subordinate in charge of import and export of machinery and electronic products, and the said offices shall be responsible for issuing the Automatic Import License. Each competent department for commercial processing trade at the provincial level shall, in accordance with the relevant provisions in the Measures for the Administration of Examination and Approval and Domestic Marketing of Automobiles Processing Trade, issue the Approval Certificate for Domestic Marketing of Bonded Materials and Components Imported for Processing Trade on the strength of the Automatic Import License issued.

In case the automobile products within an export processing zone need to be sold to the outside of the zone and within the territory of China, the importing entity must apply for the Automatic Import License in accordance with these Detailed Rules.

Article 11

A foreign-funded enterprise that imports automobiles (finished automobiles) for self use shall go through the import procedures in accordance with the relevant provisions.

Article 12

The Customs shall, on the strength of the Automatic Import License sealed with a special stamp of automatic import license for machinery and electronic products, handle the procedures related to inspection and clearance, while the bank shall handle the procedures related to sales and payment of foreign exchanges on the strength of the Automatic Import License.

Article 13

The Automatic Import License for automobile products shall be under the administration of either "one license for one batch" or "one license for not only one batch".

Article 14

The term of validity of an Automatic Import License for automobile products shall be six months, and the "Automatic Import License" may only be valid within the Gregorian calendar year in which it is issued.

The content of the Automatic Import License shall not be altered.

In case any Automatic Import License needs to be renewed or modified, the party concerned shall re-apply for a new one, and return the old one to the original issuing body for revocation.

Article 15

In case the Automatic Import License for automobile products is unable to be used or has not been used up within the term of validity, it shall be returned to the original issuing body within its term of validity.

Article 16

In case an Automatic Import License is lost, the entity applying for import shall immediately report in writing the loss to the original issuing body and the Customs which has been specified as the importing port on the Automatic Import License. If the loss has no ill consequence upon verification, the original issuing body may issue a new one; if, however, the loss causes any ill consequence, the said entity shall be subject to punishment on the basis of the effect caused, from a warning to suspension of the issuance of its Automatic Import License.

Article 17

Whoever fails to apply for the Automatic Import License in accordance with these Detailed Rules but discretionarily imports automobile products subject to administration of automatic import license shall be punished or penalized by the Customs in accordance with the relevant laws and administrative regulations. If a crime is constituted, he/it shall be prosecuted for criminal liabilities in accordance with the law.

Article 18

Whoever forges, alters, buys or sells the Automatic Import License for automobile products, or obtains the Automatic Import License by fraud or by other foul means, shall be penalized in accordance with the relevant laws and administrative regulations. If a crime is constituted, he/it shall be prosecuted for criminal liabilities in accordance with the law.

Article 19

The power to interpret these Detailed Rules shall be vested inthe Ministry of Commerce.

Article 20

These Detailed Rules shall go into effect as of January 1, 2005.