Laws of the People's Republic of China

    Article 1  These Measures are formulated in order to accelerate the
commercialization and industrialization of the achievements in science
and technology, give impetus to scientific research institutes
participating in foreign trade and international competition and promote
the development of foreign economic relations and trade in our country.

    Article 2  These Measures shall apply to all types of independent
scientific research institutes (hereinafter referred to as the scientific
research institute) conducting the basic and application research of
natural science and technological development, and engaging in activities
of foreign economic relations and trade.

    Article 3  Any scientific research institute applying for the right
to import and export scientific and technological products (hereinafter
referred to as the import and export right) shall satisfy the following
requirements:

    (1) To have greater ability to study and develop technology and
technological products and fairly great productive ability. Technology
studied and developed and the technological products produced are capable of
international competition.

    (2) To have a great deal of achievement in the commercialization and
industrialization in science and technology, and the annual average amount
of foreign exchange earning which the applicant brings in by trusting
others with import and export is not less than US$ 500,000 within the two
years prior to the submission of such an application.

    (3) To have the facilities, funds and other necessary qualifications
needed to handle import and export business operations.

    Article 4  If scientific research institute is affiliated with  
conglomerate or other entity which has had the import and export right,
the scientific institute shall not be vested with the right thereof.

    Article 5  Any scientific research institute applying for the import
and export right shall submit the following data:

    (1) the feasibility study report, which includes the state of the
scientific research and productive strength and the technological level,
and includes the names of the enterprises directly under the institute
thereof and the Business Licences for Enterprises as Legal Person etc.;

    (2) the catalogue of the scientific and technological commodities
which are intended to be imported and exported and the scope of the
exported technology.

    Article 6  Any scientific research institute applying for the import
and export right shall go through the following procedures:

    Scientific research institute directly affiliated to department under
the State Council shall submit written application to the competent
department, the competent department shall submit the case to
the State Science and Technology Commission and the Ministry of Foreign
Trade and Economic Cooperation. Local scientific research institute
shall submit written application to the local department(commission)
of foreign economic relations and trade and the local science and
technology commission of the province, autonomous region or
municipality directly under the central government or the cities under
separate planning where the scientific research institute is located,
then the local department(commission) of foreign economic relations and
trade and the local science and technology commission shall be responsible
for examining the case and jointly submit it to the State Science and
Technology Commission and the Ministry of Foreign Trade and Economic
Cooperation after reaching unanimity. The State Science and Technology
Commission shall make reviewing suggestions in batches to the Ministry of
Foreign Trade and Economic Cooperation after reviewing the cases which the
localities or departments submited, and then the Ministry of Foreign Trade
and Economic Cooperation shall, in accordance with the suggestions of the
State Science and Technology Commission, verify the cases and approve them
in reply.

    Article 7  The import and export right shall be directly vested with
scientific research institute in principle, and new import and export
company shall not be approved to be set up additionally. The scientific
research institute having received Business Licences of Enterprise as
Legal Person shall be directly vested with the import and export right.
With regard to scientific research institute which has not received
Business Licences thereof, the import and export right may, at the
institute's request, be vested in a whole-capital enterprise owned by the
whole people designated by, and directly affiliated to, said institute.

    Article 8  The following are the rights and obligations of scientific
research institute vested with the import and export right:

    (1) exporting the technology studied and developed by the institute and
the self-produced technological products, importing raw and auxiliary
materials, technology, equipment, parts and components needed for
scientific research and production of the institute within the approved
scope of business operations;

    (2) enjoying all preferential treatments granted in accordance with the
relevant provisions of the state concerning import and export trade;

    (3) enjoying the same rights as the rights of other enterprises which
are engaged in importation and exportation by themselves in the aspect of
business association and import and export trade;

    (4) undertaking the tasks of export and bringing in foreign exchange
earning for the state and maintaining proper increasing speed;

    (5) abiding by the general and specific policies and all regulations of
the state on foreign economic relations and trade, accepting the
supervision, coordination and administration of the departments of foreign
economic relations and trade under the Central Government or local
government, obeying the coordination of the relevant import and export
chambers of commerce, and engaging in business operations within the
approved scope of import and export business. With respect to the new and
high technology and products under the export restriction by the state,
strictly handling the case in accordance with the relevant provisions.

    Article 9  Any scientific research institute vested with the import
and export right which intends to split up or merge with others, or
change its name, must submit the case to the Ministry of Foreign Trade
and Economic Cooperation for approval and undertake the procedures for
making changes in its registration.

    Article 10  If any scientific research institute vested with the
import and export right violates the relevant provisions on foreign
economic relations and technology trade of the state, it shall be
punished, according to the degree of seriousness of the case; or even the
import and export right shall be revoked.

    Article 11  Any scientific research institute fails to attain the
targets of export for bringing in foreign exchange earning set by the
state in the three successive year, the import and export right shall be
revoked.

    Article 12  The Ministry of Foreign Trade and Economic Cooperation
shall be responsible for the interpretation of these Measures.

    Article 13  These Measures shall enter into force on the date of
promulgation.