Laws of the People's Republic of China

(Effective Date 1984.01.10)

   Article 1. These regulations are formulated with the purpose of strengthening the planned control of import trade, enhancing the economic results and better serving the construction of socialist modernization.

   Article 2. The People's Republic of China practices the Licensing System of import commodities. For all commodities imported on the strength of licenses as stipulated in these regulations unless otherwise stipulated by the State, an application shall be filed and the licence of import commodities obtained in advance, and an order or orders for import should be placed through the corporations approved by the State to engage in the business of importing such commodities. The Customs offices may give clearance after examination upon the strength of licence of import commodities and other documents concerned.

   Article 3. The Ministry of Foreign Economic Relations and Trade unifies the issuance of licences of import commodities on behalf of the State.

The administrative departments of foreign economic relations and trade at the provincial level may, within the scope of power stipulated by the Ministry of Foreign Economic Relations and Trade, issue licences of import commodities for their respective province, municipality under the State Council and autonomous region.

The Ministry of Foreign Economic Relations and Trade may also empower the special commissioners offices residing at the main ports to issue licences of import commodities within the scope of power stipulated.

   Article 4. Various corporations approved by the State to engage in the business of import shall conduct the import business strictly in accordance with the scope of operation and the list of import commodities approved.

Commodities to be imported by the head offices of foreign trade corporation specializing in import and export among the corporations mentioned in the preceding paragraph, or by import and export corporations under various Ministries and import and export corporations under the People's Governments at the provincial level are, except those commodities whose import is restricted by the State, exempted from obtaining licences of import commodities, and the Customs Offices shall give clearance after examination on the strength of the relevant documents. All Commodities to be imported by other corporations shall apply for and obtain licences of import commodities, and the Customs offices shall give clearance after examination on the strength of the licences of import commodities and the relevant documents.

The departments and enterprises which are not approved by the State to engage in import business are prohibited to import commodities without authorization.

   Article 5. Being in compliance with the stipulations of the State and approved by the relevant commissions and ministries under the State Council or the People's Governments of the provinces, municipalities under the State Council and autonomous regions, the commodities to be imported under the agreements and contracts concluded with foreign parties as regards processing with materials and assembling with components provided by foreign parties, compensation trade and contracting projects, which are not exceeding the scope of the approved items, are exempted from obtaining licences of import commodities. But all the imported commodities controlled by the State under the items of compensation trade and contracting projects, materials and components to be imported or the processed products under the items of processing with materials and assembling with components provided by foreign parties, which are to be turned into domestic sales, shall apply for and obtain licences of import commodities.

   Article 6. All Commodities whose import is restricted by the State, irrespective of their mades of imports, the sources of foreign exchanges and the channels of imports must, in accordance with the power of approval stipulated by the State, be examined and approved by the competent departments and departments unifying the examination, and the licences of import commodities must be applied and obtained by the purchasing units on the strength of the documents of approval.

The items of import commodities restricted by the state shall be made public and readjusted in a unified way by the Ministry of Foreign Economic Relations and Trade pursuant to the regulations of the State.

   Article 7. The following imports, which do not fall into the scope of items of paragraph 2 of the preceding Article, are exempted from obtaining licences of import commodities:

(1) In import and export trade, samples provided by foreign parties free of charge or samples bought by various corporations which may engage in import and export business in compliance with the approval of the State;

(2) Urgently needed articles for professional usages bought abroad at a price less than 5,000 US dollars on the international market by the departments of scientific research, education, culture, sports, medicine and public health themselves in accordance with the approval of the Ministry of Foreign Economic Relations and Trade, foreign trade administrative departments at the provincial level or the commissioners offices of the Ministry of Foreign Economic Relations and Trade stationed at various ports;

(3) Urgently needed parts and accessories of machinery, electrical appliances and precision instruments for production bought abroad at a price less than 5,000 US dollars on the international market by enterprises of factories and mining industry themselves in conformity with the approval of the Ministry of Foreign Economic Relations and Trade, the foreign trade administrative departments at the provincial level or the commissioners offices of the Ministry of Foreign Economic Relations and Trade stationed at various ports;

(4) Commodities imported with special approval by the State.

The Customs offices shall examine and clear the imported commodities mentioned in items 2, 3 and 4 of the first paragraph of this Article on the strength of the certificates approved.

   Article 8. For commodities bought of one's own as stipulated by items 2 and 3 of the first paragraph of the preceding Article, whose price on the international market exceeds the fixed limits an application must be filed and the licence of import commodities obtained.

For urgently needed import commodities bought abroad directly by organs and associations other than those mentioned in paragraph 2 and 3 of the preceding article an application must also be filed and the licence of import commodities obtained.

   Article 9. Goods needed for production by Chinese-foreign joint ventures which can not be supplied in China, may be purchased abroad themselves by entrusting the relevant Chinese foreign trade corporations or imported within the scope of business of the said ventures.

The scope and procedures of applying and obtaining licences of import commodities shall be dealt with in accordance with Article 63 of the "Regulations for the Implementation of the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment".

   Article 10. Under the following circumstances, the Ministry of Economic Relations and Trade may not issue licences of import commodities or may cancel those already issued:

(1) Commodities, where import is banned, or temporarily suspended by decision of the State;

(2) Import commodities that are not consistent with the foreign policy of the State;

(3) Import commodities that are not consistent with the contents of the relevant bilateral trade agreements and payment agreements;

(4) Import Commodities that are not consistent with the standards of hygiene and quarantine of medicine, foodstuffs, animals, plants, agricultural products, animal by-products and aquatic products as stipulated by the departments of public health, Agriculture, Animal Husbandry and fishery of the State.

(5) Other import commodities that are detrimental to the interests of the State or procured through illegal dealings.

   Article 11. Official letters of the units at or above the provincial departments or bureau level shall be produced, and import certificates approved by the competent departments and the departments unifying the examination be submitted when applying for the obtaining licences of import commodities. The particulars of an application should include the name of the import commodities, specifications, quantity, value, usages, countries from which the commodities imported, sources of foreign exchanges, units conducting transactions with foreign parties and similar items.

The licences of import commodities shall be issued after verifying by the licence-issuing authorities, if the said particulars are consistent with the regulations.

In obtaining the licences of import commodities, the applying units shall apply in conformity with the facts strictly, and shall not resort to fraud and forgery violations shall be held responsible.

   Article 12. The period of validity of an import licence is one year. In case of failure to import the commodities within the period of validity, the licence-obtaining units may apply for an extension to the licence-issuing authority, which may extend correspondingly the period of validity of the licence in accordance with the stipulations of the contract.

   Article 13. The Customs offices may confiscate the commodities or instruct that they be shipped back in case they are imported without authorization for not applying and obtaining the licences beforehand in defiance of these regulations; as regards the commodities imported with licences issued retroactively by the licence-issuing authority, the customs offices may exercise discretion in light of the circumstances to give clearance after imposing a fine. The Customs offices shall, in accordance with the relevant provision of the laws and regulations of China's Customs, dispose of those who have forged, smeared and altered or transferred the licences of import commodities.

   Article 14. Commodities imported by the Special Economic Zone for the use inside the zone shall be dealt with according to the special regulations of the Special Economic Zone; All imported commodities and products of the Special Economic Zone, which are transported from the Special Economic Zone to the hinterland, shall be dealt with in the light of the stipulations of these regulations.

   Article 15. The Ministry of Foreign Economic Relations and Trade shall be responsible for the interpretation of these regulations rules for the implementation of these Regulations shall be formulated by the Ministry of Foreign Economic Relations and Trade together with the Customs General Administration.

   Article 16. These regulations shall come into force from the day of the promulgation.