Laws of the People's Republic of China

Ministry of Commerce, State Development and Reform Commission

Order of the Ministry of Commerce and the State Development and Reform Commission

No. 4

The Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products, which have been formulated in accordance with the Foreign Trade Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Regulations of the People's Republic of China on the Administration of Import and Export of Goods and the Regulations of the People's Republic of China on Import and Export Duties and in consultation with the Customs General Administration, are hereby promulgated.

The list of agencies authorized by the Ministry of Commerce and the State Development and Reform Commission for the administration of import tariff quotas of agricultural products will be promulgated separately.

Lv Fuyuan, Minister of the Ministry of Commerce

Ma Kai, Chairman of the State Development and Reform Commission

September 27th, 2003

Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products

Chapter I General Provisions

Article 1

With a view to effectively implementing the administration of import tariff quotas of agricultural products and to establishing the system for administering the import tariff quotas of agricultural products that is uniform, fair, just, transparent, predicable and nondiscriminatory, the present Measures have been formulated in accordance with the Foreign Trade Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Regulations of the People's Republic of China on the Administration of Import and Export of Goods and the Regulations of the People's Republic of China on Import and Export Duties.

Article 2

Within the year of the Gregorian calendar, the State will, pursuant to the quota quantities as promised in China's schedule of concession and commitments for the trade of goods after entry into the WTO, determine the annual quantities of the agricultural products subject to the administration of import tariff quotas permitted to enter the market.

The import of agricultural products within the quota quantities will apply the in-quota tax rate, and the import of agricultural products outside the quota quantities will be implemented under the relevant provisions of the Regulations of the People's Republic of China on Import and Export Duties.

The excess part of bulk cargos shall be implemented pursuant to Paragraph 2 of Article 19 in the present Measures.

Article 3

The categories of agricultural goods subject to the administration of import tariff quotas are: wheat (including powder and grains thereof; hereinafter referred to as wheat), corn (including powder and grains thereof; hereinafter referred to as corn), rice (including powder and grains thereof; hereinafter referred to as rice), bean oil, colza oil, palm oil, sugar, cotton, wool and wool tops.

The corresponding import tax items, tariff serial numbers and applicable tax rates for agricultural goods subject to the administration of import tariff quotas shall be promulgated separately.

Article 4

Wheat, corn, rice, bean oil, colza oil, palm oil, sugar and cotton shall be subject to state-run trade quotas or non-state-run trade quotas. Those subject to state-run trade quotas shall be imported by state-run trade enterprises; those subject to non-state-run trade quotas may be imported by enterprises with the right of trade, and may also be imported directly by the final users with the right of trade.

Wool and wool tops shall be subject to the management of designated import enterprises, which shall be carried out in accordance with the Measures for the Administration of Designated Management of Goods Import (No. 21 of the Ministry of Foreign Trade and Economic Cooperation) promulgated by the former Ministry of Foreign Trade and Economic Cooperation.

Article 5

Import tariff quotas of agricultural products shall be global quotas.

Article 6

Import of agricultural goods in all trade forms that conform to Article 3 shall be included in the range of tariff quota administration.

Article 7

The import tariff quotas of bean oil, colza oil, palm oil, sugar, wool and wool tops shall be subject to the distribution of the Ministry of Commerce.

The import tariff quotas of wheat, corn, rice and cotton shall be subject to the distribution of the State Development and Reform Commission (SDRC) in conjunction with the Ministry of Commerce (MOFCOM).

Article 8

The MOFCOM and the SDRC will entrust their respectively authorized agencies to handle the following matters:

1)

Accepting the applications and transferring them to the MOFCOM and the SDRC;

2)

Accepting the consultations and transferring them to the MOFCOM and the SDRC;

3)

Notifying the applicants of any insufficiency in their applications, and offering chances for the applicants to eliminate such insufficiency;

4)

Issuing the Certificates of Import Tariff Quotas of Agricultural Products to the applicants approved.

Article 9

The Certificates of Import Tariff Quotas of Agricultural Products are applicable to the imports in the trade forms of general trade, processing trade, barter trade, small-scale border trade, assistance, donation and other forms.

The products entering the bonded warehouses, bonded zones and export processing zones are exempted for the Certificates of Import Tariff Quotas of Agricultural Products.

Chapter II Application

Article 10

The period for applying for the import tariff quotas of agricultural goods shall be between Oct. 15th and Oct. 30th of each year (with the exception of the distribution form of drawing the quotas by coming order on the basis of contract). The MOFCOM and the SDRC will promulgate the next year's total quantity of import tariff quotas of each agricultural goods and the specific conditions for the application therefore as well as the tariff serial numbers and applicable tax rates determined by the Customs Tariff Committee of the State Council on the International Business Daily, the China Economic Herald, the MOFCOM website (http://www.mofcom.gov.cn) and the SDRC website (http://www.sdpc.gov.cn) one month before the application period.

Bean oil, colza oil, palm oil, sugar, wool and wool tops shall be subject to the promulgation of MOFCOM; and wheat, corn, rice and cotton shall be subject to the promulgation of SDRC.

Article 11

The agencies authorized by MOFCOM are in charge of the applications for the import tariff quotas of bean oil, colza oil, palm oil, sugar, wool and wool tops within their respective areas.

The agencies authorized by SDRC are in charge of the applications for the import tariff quotas of wheat, corn, rice and cotton within their respective areas.

Article 12

The agencies authorized by MOFCOM shall, in light of the specific conditions promulgated, accept the applications on bean oil, colza oil, palm oil, sugar, wool, wool tops and the relevant documents submitted, and transfer the qualified applications to the MOFCOM before Nov.30th (with the exception of the distribution form of drawing the quotas by coming order on the basis of contract), with the copies thereof sent simultaneously to the SDRC.

The agencies authorized by SDRC shall, in light of the specific conditions promulgated, accept the applications on wheat, corn, rice, cotton and the relevant documents submitted, and transfer the qualified applications to the SDRC before Nov.30th, with the copies thereof sent simultaneously to the MOFCOM.

Chapter III Distribution

Article 13

Import tariff quotas shall be distributed on the basis of the quantity applied for by the applicants, their previous import performance, production capacity and other relevant commercial standards or on the basis of the form of drawing by coming order. The minimum quantity of distribution shall be determined on the basis of the commercially feasible shipping quantity of each category of agricultural products.

Article 14

The MOFCOM and the SDRC will, before Jan. 1st of each year, issue to the final users the Certificates of Import Tariff Quotas of Agricultural Products via their respectively authorized agencies, to which the "Special Seal of the MOFCOM for Certificate of Import Tariff Quotas of Agricultural Products" and the "Special Seal of the SDRC for Certificate of Import Tariff Quotas of Agricultural Products" shall be affixed.

The quotas for state-run trade shall be indicated on the Certificate of Import Tariff Quotas of Agricultural Products.

Chapter IV Valid Term

Article 15

The annual import tariff quotas of agricultural goods shall be implemented from Jan. 1st of each year, and shall be valid within the year of the Gregorian calendar. The Certificates of Import Tariff Quotas for Agricultural Products shall be valid from Jan. 1st to Dec. 31st of its current year.

The valid term of the Certificates of Import Tariff Quotas for Agricultural Products subject to the distribution form of drawing by coming order on the basis of contract shall be carried out in accordance with the detailed implementation rules promulgated.

Article 16

For the agricultural products subject to import tariff quotas that are shipped out from the departing port before Dec. 31st of the year and shall arrive at the destination in the next year, the final user shall, by presenting the Certificate of Import Tariff Quotas of Agricultural Products and the relevant certifications, apply for term extension to the original agency that has issued the certificate. The said agency may extend the term after having examined the case, but the term may not be extended to a time later than the end of February of the next year.

Chapter V Implementation

Article 17

The final users shall, pursuant to the relevant provisions of the State on import of the commodities concerned, sign the import contracts by themselves or entrust others to sign the contracts.

Article 18

For the import of agricultural products for processing trade that is subject to the administration of tariff quotas, the customs shall handle the record-keeping procedures for the processing trade contracts by the Certificate of Approval for Processing Trade submitted by the enterprises, and handle the customs clearance procedures by the Certificate of Import Tariff Quotas of Agricultural Products submitted where "processing trade" has been indicated under the column of "trade modes".

Where an enterprise of processing trade fails to re-export the processed products within the prescribed term, it shall go through the writing-off procedures for processing trade contracts within 30 days after the expiration of term. The customs will implement the procedures thereabout according to the relevant provisions on processing trade.

Article 19

The Certificate of Import Tariff Quotas of Agricultural Products will apply the system of one certificate for several batches, that is, a final user in need of importing the products in several batches may go through the customs clearance procedures for several times by the Certificate of Import Tariff Quotas of Agricultural Products. A final user shall faithfully fill out the "Column for Final User's Import" under the Certificate of Import Tariff Quotas of Agricultural Products and take the Certificate to the original Certificate issuing agency in exchange for the certificate for the part of quotas that have not gone through the customs clearance procedures.

The excess part of bulk cargos in a batch imported shall be no more than 5% of the batch.

Article 20

The agricultural products entering the bonded warehouses, bonded zones, export processing zones from outside China and to which import tariff quotas are applied shall be subject to the examination before release and to the supervision and control conducted by the customs in accordance with the relevant provisions.

For the agricultural products exiting or imported from outside the bonded warehouses, bonded zones, export processing zones and to which import tariff quotas are applied, the customs will handle the import procedures by the Certificate of Import Tariff Quotas of Agricultural Goods in accordance with the relevant provisions on the administration of import of goods.

Article 21

A final user shall, within 20 office days after finishing the customs clearance procedures for the final batch of products whose quotas are indicated in the Certificate of Import Tariff Quotas of Agricultural Products, hand in the original of the first pages (customs procedure pages for the consignee) of the said Certificate signed and sealed by the customs to the original Certificate issuing agency.

A final user shall, before the end of January of the next year, return the original of the unused first pages (customs procedure pages for the consignee) of the Certificate of the current year to the original Certificate issuing agency.

Chapter VI Adjustment

Article 22

Where no contract is concluded before Aug. 15th of the current year for the state-run trade quotas of agricultural products distributed to a final user, the final user may entrust a trade enterprise of any kind with the right of trade to import the products upon the approval of the MOFCOM or the SDRC in accordance with the division of administration as provided in Article 7 of the present Measures. A final user with the right of trade may also import the products directly.

Article 23

Where a final user holding the Certificate of Import Tariff Quotas of Agricultural Products fails to conclude an import contract for all the quotas already drawn in the current year or fail to fulfill the contract already concluded, it shall return the unfinished quotas to the original Certificate issuing organ before Sep. 15th.

Article 24

The term for applying for the tariff quotas to be redistributed for the import of agricultural products shall be from Sep. 1st to Sep. 15th of each year (with the exception of the distribution form of drawing by coming order on the basis of contracts). The MOFCOM and the SDRC will respectively promulgate the specific conditions for applying for the tariff quotas to be redistributed on the International Business Daily, the China Economic Herald, the MOFCOM website (http://www.mofcom.gov.cn) and the SDRC website (http://www.sdpc.gov.cn) one month before the application period. The applications shall be submitted to the MOFCOM or the SDRC via their respectively authorized agencies.

Bean oil, colza oil, palm oil, sugar, wool and wool tops shall be subject to the promulgation of MOFCOM, and wheat, corn, rice and cotton shall be subject to the promulgation of SDRC.

Article 25

A final user that has finished the import tariff quotas distributed of agricultural products before the end of October and has returned the originals of the first pages (customs procedure pages for the consignee) of the Certificate of Import Tariff Quotas of Agricultural Products may apply for the tariff quotas to be redistributed.

Article 26

Before September, 30 of each year, the MOFCOM shall distribute the tariff quotas to be redistributed of bean oil, colza oil, palm oil, sugar, wool and wool tops to the final users (with the exception of the distribution form of drawing by coming order on the basis of contracts), and the SDRC shall distribute the tariff quotas to be redistributed of wheat corn, rice and cotton to the final users.

The tariff quotas to be redistributed shall, in light of the applying conditions promulgated, be distributed according to the form of drawing by coming order. The minimum quantity of distribution shall be determined on the basis of the commercially feasible shipping quantity of each category of agricultural products.

A final user who has obtained the redistributed quotas may entrust a trade enterprise of any kind with the right of trade to import the products. A final user with the right of trade may also import the products directly.

Chapter VII Rules of Punishment

Article 27

Where any enterprise of processing trade sells the bonded import materials or the finished products thereof on domestic market without approval, the customs shall deal with it in accordance with the Customs Law of the People's Republic of China and the Detailed Rules for the Implementation of Administrative Punishment under the Customs Law of the People's Republic of China.

Article 28

Where anyone forges, alters or trades the Certificates of Import Tariff Quotas of Agricultural Products, he shall be investigated for criminal responsibilities pursuant to the provisions of the criminal law on the crime of illegal operations or the crime of forging, altering or trading documents, certificates or seals of state organs. If any final user holding the quotas commits the preceding acts, the MOFCOM and the SDRC shall refuse to accept its application for import tariff quotas for the following two years.

Article 29

Where any enterprise forges the relevant documents to deceitfully obtain the Certificate of Import Tariff Quotas of Agricultural Products, its Certificate shall be cancelled according to the law. And the SDRC shall refuse to accept its application for import tariff quotas for the following two years.

Article 30

Where any final user, violating Article 23 of the present Measures, fails to fulfill the import for all the tariff quotas distributed to it within the current year and fails to return the tariff quotas for which the import hasn't been fulfilled in the current year to the original Certificate issuing agency before Sep. 15th, the tariff quotas distributed to it in the next year shall be reduced pursuant to the unfulfilled proportion correspondingly.

Article 31

Where any final user holding the import quotas fails to fulfill all the tariff quotas distributed to it in two successive years and fails to return the unfulfilled tariff quotas of the current year to the original Certificate issuing agency before Sep. 15th in each of the two years respectively, the tariff quotas distributed to it in the next year shall be reduced according to the unfulfilled proportion of the last year correspondingly.

Article 32

Where any final user, violating the provisions of Article 21 of the present Measures, fails to hand in the originals of the first pages (customs procedure pages for the consignee) of the said Certificate signed and sealed by the customs to the original Certificate issuing agency, it shall be regarded as not fulfilling the import and the tariff quotas distributed to it shall be reduced correspondingly.

Article 33

Where anyone smuggles the agricultural products subject to import tariff quotas, the sum of tax evasion and dodging shall be calculated at the out-quota tax rate applicable, and the smuggler shall be punished in accordance with the relevant laws and administrative regulations.

Chapter VIII Supplementary Provisions

Article 34

The consultation on the distribution and redistribution of tariff quotas shall be filed with the MOFCOM, the SDRC or their respectively authorized agencies in written form. The MOFCOM, the SDRC or the authorized agencies shall give the reply within 10 working days.

Article 35

The manufacture of the Certificates of Import Tariff Quotas of Agricultural Products and the "Special Seal of Certificate of Import Tariff Quotas of Agricultural Products" shall be subject to the uniform supervision of the MOFCOM and the SDRC.

Article 36

Such columns in the Certificate of Import Tariff Quotas of Agricultural Product as the place of registration of the final user, serial number of tariff quotas, valid term of the Certificate, trade modes, commodity name, arranged quantity, quantity of state-run trade, issuing date of the Certificate and the port of clearance shall be printed by computers. A final user that needs to change the port of clearance in the Certificate may go to the original Certificate issuing agency for the change.

Article 37

The purchase of foreign exchange for the import of agricultural products subject to tariff quotas shall be carried out in accordance with the relevant provisions of the State.

Article 38

The state-run trade enterprises as mentioned in the present Measures refer to the enterprises to which the government has granted the special right of import management of some products.

The list of the state-run trade enterprises shall be approved and promulgated by the MOFCOM.

Article 39

The final users as mentioned in the present Measures refer to the production enterprises, traders, wholesale dealers and distributors, etc. that directly draw the import tariff quotas of agricultural products.

Article 40

The present Measures shall enter into force as of the date of the promulgation. The import tariff quotas of agricultural products in the year 2003 shall be implemented in accordance with the former Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products (No. 19 of the State Development Planning Commission).

Attachment: Certificate of Import Tariff Quotas of Agricultural Products (Sample) (Omitted)