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INTERIM MEASURES CONCERNING STRENGTHENING ADMINISTRATION OF IMPORTS BY AIR

    With the development of China's foreign trade and economic and
technological exchanges with foreign countries, the amount of imports by air
has increased rapidly and the task of transporting goods from airports has
become increasingly arduous. The following interim measures are formulated in
order to speed up the flow of goods at airports to prevent goods from being
kept too long in storage:

    1. When entrusting the foreign trade companies and the industrial trade
companies which are empowered to import the relevant commodities to do the
ordering, the units importing goods through air transport must conscientiously
fill out import orders according to the instructions of the entrusted units.
The full name of the units and the detailed addresses must be written in the
column for the consignee, with the names and telephone numbers of the persons
in charge clearly indicated.

    2. When it is necessary to claim damages and demand resupply of goods
from the seller because of lack or loss of imported goods caused by the seller,
the company which did the ordering shall be responsible for the work involved.
If, in special cases, the job must be done by the users themselves, it is
necessary to ask the seller to indicate clearly on the way-bill the number of
the contract and the consignee (if foreign trade transport companies or other
agent transport departments are entrusted to do the job, the names of these
companies or departments shall be indicated) and notify the company which did
the ordering of the goods of the results.

    3. Foreign trade companies and industrial trade companies should accept
entrustment for ordering goods within the approved scope of business for handling
imported commodities. They must not accept entrustment from those user units
which have not obtained import licences for the goods. These companies should
examine and verify import orders and write the marks, codes and symbols in
strict accordance with the relevant stipulations. The relevant personnel
should be professionally familiar with the structure of the marks and arrange
the codes strictly according to their order. No such mistakes as reversion,
addition and subtraction may be allowed.

    Newly-established foreign trade companies and industrial trade companies
shall apply to the Ministry of Foreign Economic Relations and Trade (or its
Tranport Bureau) for marks and codes within one month of approval for the
establishment. Those companies which have not applied must go through the
formalities within one month of promulgation of these Measures. No units may
be allowed to devise their own codes or borrow the codes of other units. The
Ministry of Foreign Economic Relations and Trade (or its Transport Bureau)
shall conduct regular check-ups of the marks and codes used bv various
companies.

    4. When signing contracts of imports by air with foreign businessmen and
companies, foreign trade companies and industrial trade companies should try
to fix FOB prices (prices calculated on the basis that the seller delivers the
goods to the planes designated by the buyer) in the clauses so that our civil
aviation planes and the agencies for air transport of our foreign trade
transport companies or other agent transport companies stationed in foreign
countries will be used as much as possible.

    When signing contracts with foreign businessmen and companies, foreign
trade companies and industrial trade companies should take into full
consideration the factors of Customs clearance and transport in China. When
the sellers are requested to write way-bills, bills and receipts, they must
provide consistent marks, codes and the numbers of the contracts, with enough
copies. It is also necessary to ask the sellers to make eye-catching full-size
marks and symbols on the outside packing of the goods.

    5. After signing contracts, foreign trade companies and industrial trade
companies shall promptly send copies of the contracts, the licences and other
relevant materials to foreign trade transport companies or other agent
transport companies as certificates for taking over the goods, Customs
clearance and transport.

    6. After imported goods arrive at airports by air, transport departments
of the civil aviation administration shall promptly complete the formalities
for handing over the goods to the relevant foreign trade transport companies
and other agent transport companies, with every lot of goods carefully checked.
In case of any lack or damage of the goods or of loss of the whole lot of
goods, transport departments of the civil aviation administration shall sign
and issue certificates.

    7. After receiving the goods entrusted for Customs clearance, foreign
trade transport companies or other agent transport companies should go through
the formalities within the time limit prescribed by the Customs. With respect
to the goods which have been entrusted for Customs clearance but are not
armed with adequate number of documents and those goods which have not been
entrusted but belong to the category for which agent transport companies have
the duty to notify the relevant units, these companies should send three
notices or letters of inquiry to the units ordering the goods or the consignee
within the limited Customs clearance period. Upon the arrival of the goods, a
notice of arrival or a letter of inquiry shall be sent; if the goods are not
cleared through the Customs within a month, a notice of pressing for Customs
clearance or a letter of inquiry shall be sent; if the goods are not cleared
through the Customs within two months, another notice of pressing for Customs
clearance or a third letter of inquiry shall be sent. All the notices and
letters shall be sent by registered mail.

    With respect to the goods which should be directly handed over to the
consignee by transport departments of the civil aviation administrations, the
departments shall send three notices of pressing for Customs clearance within
two months of the arrival of the goods.

    8. In order to find out the real situation to facilitate the Customs
clearance, in case that goods imported by air are not cleared through the
Customs two months after the day when the means of transport were declared for
entry, transport departments of the civil aviation administration, foreign
trade transport companies or other agent transport departments may send
separate applications to the Customs for opening the packing of the goods. The
opening of the packing shall be conducted under the supervision of the
Customs, which shall sign and issue the relevant certificates.

    9. Under no excuses may consignees refuse to go through the formalities
concerning Customs clearance and refuse to take delivery of their goods. When
there are good reasons, they should promptly explain to the Customs, transport
departments of the civil aviation administrations, foreign trade transport
companies or other agent transport departments, and complete the job within
three months. During this period, the consignees may declare to the Customs
that they abandon the relevant advertisement material, samples, presents and
those documents of claims for damages which have exceeded the prescribed
period of validity. The goods imported through contracts and those documents
of claims for damages which have not exceeded the prescribed period of
validity may not be abandoned in principle. When there are good reasons for
the abandonment, approval must be obtained from the competent department.

    10. The Customs should simplify the formalities and speed up the
examination and clearance of imported goods in the spirit of providing good
service but with strict examination. The imported goods with documents of
approval issued by the State shall be cleared according to the relevant
regulations.

    The goods for which damages have been claimed shall be examined and
cleared in accordance with the Stipulations Concerning Imposition of or
Exemption from duties on Imported and Exported Goods Compensated at No Costs
formulated by the General Administration of Customs. If it is difficult for
the consignees to produce the certificates of claims for the examination on
the spot, the Customs may clear the goods first after the consignees provide
necessary guarantee and promise to go through the formalities within the time
limit. With respect to the samples and presents which do not belong to the
category of imported goods restricted by the State but are not supported by
receipts, upon the application of the consignees, the Customs may open the
packing for examination, offer an appraised price and clear the goods with or
without taxes according to the regulations.

    11. If consignees fail to declare to the Customs within three months of
the declaration for entry by the means of transport, their imported goods
shall be transferred to the Customs for sale by the transport departments of
the civil aviation administration, foreign trade transport companies or other
agent transport department. The goods should be sold in the principle of
economy and making the best use of everything. Instruments and machinery
equipment should be sold as far as possible to the relevant units.

    The money from the sale of such goods, after the deduction of the expenses
for transport, loading and unloading and storage as well as the duties, shall
be returned by the Customs to the consignees upon their applications within
one year of selling. The money shall be turned over to the State treasury if
no one applies for it.

    12. Units importing goods, foreign trade companies, industrial trade
companies, foreign trade transport companies and other agent transport
departments as well as the Customs at the airports must all strictly implement
these Measures and should, in accordance with these Measures, establish and
amplify their rules and regulations and clarify post responsibilities.

    13. The commissions (or offices) in charge of port affairs in various
regions shall, in accordance with the Interim Provisions for the Scope of
Competence of Local Administrative Organs for Port Affairs issued by the
General Office of the State Council, organize various relevant units at the
ports to jointly check the implementation of these Measures and solve
contradictions promptly through coordinated efforts.

    In case that goods have gone bad, documents claiming for damages have
exceeded the prescribed period, or owners of the goods cannot be found because
of clogged airports caused by violations of these Measures, investigations
shall be carried out to pursue the economic and administrative liabilities of
the responsible units or persons.

    14. The Leading Group for Port Affairs of the State Council shall, in
conjunction with the Ministry of Foreign Economic Relations and Trade, the
General Administration of Customs, the Civil Aviation Administration of China
and other relevant departments, conduct regular checkups and promptly review
and solve existing problems.