Laws of the People's Republic of China

    1. These Measures are formulated to invigorate economy in the border areas,
to satisfy to a larger extent the needs of the inhabitants in the border areas
in their production and life, to promote the contacts and communication
between the border inhabitants of two neighbouring countries, and to develop
their good neighbourly relations.

    2. The petty trade in the border areas, as mentioned in these Measures,
refers to the petty trade carried out in the border towns of China, a between
the departments or enterprises designated by the people's governments of
provinces or autonomous regions and the border towns on the other side, as well
as to the mutual market trade between the border inhabitants of the two
neighbouring countries.

    3. The petty trade in the border areas shall be carried out at the ports
and trading points in the border areas as agreed on by the two sides through
consultation.

    4. The petty trade in the border areas shall be subject to the
administration by the relevant people's governments of the provinces and
autonomous regions. Matters involving the opening of ports, external relations,
security, frontier defence, the Customs, banking, commodity inspection, animal
and plant quarantine, and administration for industry and commerce shall be
handled by relevant competent departments under the State Council on the
proposal of the people's governments of the provinces or autonomous regions.

    5. The petty trade in the border areas shall be conducted in accordance
with the following principles: finding the sources of goods and the markets by
themselves; holding business talks by sellers and buyers of their own accord;
acquiring balance of accounts in their own ways, and assuming sole
responsibility for their profits and losses.

    6. With respect to the petty trade carried out between the border towns,
the Customs duty, product tax and value added tax shall, in accordance with the
tax regulations, be levied.

    7. The mutual market trade between the border inhabitants shall be carried
out within the scope of a definite quota. The specific quota shall be
prescribed by the people's governments of the provinces or autonomous regions
concerned, and submitted to the Ministry of Foreig Economic Relations and Trade
and the General Administration of Customs for the record.

    8. The commodities involved in the mutual market trade between the border
inhabitants may be exempted from the Customs duty, product tax and value added
tax if they do not exceed the quota.

    9. All contraband goods are forbidden to be imported or exported.

    10. With respect to the import and export commodities subject to the
licences, the Ministry of Foreign Economic Relations and Trade shall authorize
the department (commission, bureau) of foreign economic relations and trade
under the province or autonomous region concerned to handle the matter of
examiation and approval.

    11. The department (commission, bureau) of foreign economic relations and
trade under the provinces or autonomous regions shall be responsible for
submitting the reports on the annual operational conditions and statistics of
the petty trade in the border areas to the Ministry of Foreign Economic
Relations and Trade for the record.

    12. The petty trade in the border areas shall strictly comply with the laws
and administrative regulations of the State. The people's governments of
various provinces and autonomous regions shall, in the light of the local
conditions, formulate practicable specific measures to facilitate the
development of the petty trade in the border areas. ?