Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China

No. 38

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards adopted by the 12th Executive Meeting of the Ministry of Foreign Trade and Economic Cooperation on December 13, 2002 are hereby promulgated and shall be come into force as of the day of January 13, 2003.

Minister of the Ministry of Foreign Trade and Economic Cooperation, Shi Guangsheng

December 13, 2002

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards

Article 1

In order to guarantee the fairness, justice and openness of the safeguards work, these Rules are enacted in accordance with the Safeguards Regulations of the People's Republic of China.

Article 2

According to Articles 5, 15, 16, 18 and 21 of the Safeguards Regulations of the People's Republic of China, the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as MOFTEC) shall determine in the safeguards case filing proclamations and award proclamations (hereinafter referred to as safeguards proclamations) the range of products under safeguards investigation and that of products subject to safeguards (hereinafter referred to as range of products under safeguards). The customs shall implement the range from the date of the proclamation.

Article 3

During the implementation period of safeguards proclamations, any adjustment in the range of products under safeguards shall be determined by MOFTEC through the relevant proclamations, and the customs shall implement the adjustment from the date of the proclamation.

Article 4

Procedures for adjusting the range of products in safeguards proclamations of the MOFTEC shall comply with these Rules.

Procedures for adjusting the range of products in safeguards proclamations include the application procedures and the procedures for acceptance of application, investigation, decision and the relevant proclamation by the MOFTEC.

Article 5

Application procedures:

(1)

After a safeguards case filing proclamation is made, if any relevant interested party raises objections to the range of products under investigation, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in the proclamation or within the period extended upon the approval of the MOFTEC.

(2)

After a proclamation of safeguards preliminary award is made, if any relevant interested party raises objections to the range of products subject to safeguards, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in the proclamation or within the period extended upon the approval of the MOFTEC.

(3)

The interested party as used in these Rules shall refer to the applicant for safeguards, foreign manufacturer, exporter, importer as well as other organization or individual with interest relations.

(4)

The application shall be in filed in written form.

Article 6

An application form shall include the following information:

(1)

The name and basic information of the applicant, and the product to be adjusted;

(2)

Reasons for the adjustment, detailed explanation of the reasons and the relevant evidence;

(3)

Detailed description and specification of the product to be adjusted. The product shall be described in the following order: tariff number, physical characteristics, chemical characteristics etc, and the description shall reflect the uniqueness and exclusiveness of that product; if the description through the aforesaid methods can not reflect the uniqueness and exclusiveness of that product, the usage of the product shall be specified;

(4)

Detailed description and explanation of the similarities and differences, and replaceable nature between the import product to be adjusted and the domestic product of the same kind or the directly competitive products;

(5)

The import volume and sum of the import product to be adjusted of the previous five years and the forecasted import volume of the next three years;

(6)

The foreign manufacturer, exporter, importer and end user;

(7)

Seal or signature of the legal representative of the applicant or the person legally authorized thereby.

Article 7

Procedures for acceptance, investigation, decision and proclamation:

(1)

MOFTEC shall check the application submitted by the applicant, and accept the application if it meets the requirements of Article 6 ;

(2)

MOFTEC shall investigate and verify the authenticity of the application through questionnaire, on-spot verification and hearing etc;

(3)

MOFTEC shall investigate the rationality of the application and the interests of the interested parties concerned including the applicant for safeguards, and verify the description and specification of the product, and may retain experts to make a demonstration when necessary;

(4)

If the application meets the conditions for adjusting the range of products under safeguards according to the aforesaid procedures, MOFTEC may decide to adjust the range of products under safeguards and make a proclamation;

(5)

Where MOFTEC hasn't received an application for adjusting the product range, it may decide to adjust the product range upon the examination of the materials submitted by the interested parties;

(6)

After the final decision on safeguards is implemented, if it is necessary to adjust the proclamation contents, a decision may be made by referring to the aforesaid procedures and be proclaimed by MOFTEC.

Article 8

Where safeguards review is involved; the adjustment of product range shall be carried out by referring to these Rules.

Article 9

The power to interpret these Rules shall remain with MOFTEC.

Article 10

These Rules shall enter into force on the 30th day after their proclamation.