Laws of the People's Republic of China

MEARUSES FOR FORMATION OF SPECIALIZED EXPORT
COORDINATING ORGANIZATIONS FOR MECHANICAL AND
ELECTRECAL PRODUCTS

  (Promulgated by Mechanical and Electrial Products Export Office
under the State Council and the Ministry of Foreign Economic Relations
and Trade on September 25. 1986)

SUBJECT: IMPORT & EXPORT LICENSING & ADMINISTRATION

ISSUING-DEPT: OFFICE OF EXPORT OF MACHINARY & ELECTRIC PRODUCTS OF THE STATE COUNCIL

ISSUE-DATE: 09/25/1986

IMPLEMENT-DATE: 09/25/1986

LENGTH: 1638 words

TEXT:

(1) Fundamental Task and Nature of Specialized Export Coordinating Organizations

The Specialized Export Coordinating Organizations are the non-operational export coordinating organizations for trades' joint external dealings formed according to the specialized categories of mechanical and electrical Products, and undertake to organize coordinated activities of export business of the members of the same trade and supervise and inspect such activites under the guidance of the state external economic and trade policies and the related laws and statutes. The member units of the coordinating organtions shall conduct external business according to the regulations of the state, be subject to the coordination and supervision by the coordinating organizations, and abide by the stipuations of the coordinating organizations for developing export and safeguarding common interests. Each specialized export coordinating organization may draw up its own statutes according to these measures. Formation of the Specialized Export Coordinating Organization for Mechanical and Electrical Products shall be reported to the Ministry of Foreign Economic Relations and Trade with copy of the report submitted to the Mechanical and Electrical Products Export Office under the State Council. The said Ministry and Export Office shall examine and approve the formation and give guidance to and exercise supervision over the organization.

II. Formation of Specialized Export Coordinating Organization

(1) The Specialized Export Coordating Organization shall be formed by the nation-wide mechanical and electrical foreign trade corporations specializing in the export of the designated mechanical and electrical products according to division of business operations jointly with foreign trade or industrial trade companies and local companies throughout the country which have the right to deal in externally the same kinds of products and productive enterprises with authorization to deal in foreign trade. All companies and enterprises (including foreign trade companies engaging in the export of civil mechanical and electrical products manufactured by military and industrial departments) may, upon application, joint the corresponding specialized export coordinating organization. Companies with operational power which have not joined the specialized export coordinating organization shall likewise be subject to coordination by the coordinating organization, failing which they shall not be allowed to operate externally. The descriptions and scope of commodities which the specialized export coordinating organizations undertake to coordinate and control shall be subject to the commodity catalogues formally approved by the state and shall not be crossed.

(2) The relationship of jurisdiction, ownership and accounting system of the companies and enterprises joining the specialized export coordinating organizations shall remain unchanged. The expenses for the activities of the coordinating organizations shall be provided by the member units.

(3) Conference of whole members shall be fromed by the members of the specialized export coordinating organizations as the organ of highest authority of such organizations. The board of directors or leading group elected at the conference of whole members shll be the standing body of the coordinating organization. Where necessary. personnel of related units may be selected and nominated to form skilled working bodies.

(4) A number of product coordinating groups may be formed within the specialized export coordinating organizations with the personnel to be selected from among those of the principal member units. The chief of the group may be selected from among the personnel experienced in dealing in the products concerned.

III. Specific Tasks of Specialized Export Coordinating Organizations.

(1) To organize negotiations for division of markets and put forward suggestions for allotment of quota of export products according to the conditions of international markets.

(2) To organize the member units to make recommendations on the cost of individual items of those mechanical and electrical products falling within the scope of operation of the members of the coordinating organizations and report to the governmental department concerned for examination and approval;

(3) To decide through discussion the trade practice, mode of payment and the price level, etc. according to market conditions, intent of sale and policies as regards different countries, but the cost of individual items shall not be exceeded.

(4) To put forward recommendations as to the products to be controlled by export license as well as on the exploitation of markets according to market conditions, and assist the departments of foreign economic relations and trade in the preliminary examination of export license in respect of products for which export license is required.

(5) To promote and coordinate the formation of overseas commercial information network, sales network and service network according to the needs in opening up international markets, and to do well the sales servicing workabroad to serve member units.

(6) To put forward recommendations for retest of the quality of export products or revocation of the permit in respect of the quality of export products according to the quality of products.

(7) To inspect the condition of the unified way in which external dealings are to be handled, and to criticize and stop acts in contravention of regulations. To have the right, with the authorization of the government, to examine the related commercial and financial papers of various companies which deal in commodities under the control of the coordinating organizations in serious contravention of the rules and regulations, and to recommend to the Ministry of Foreign Economic Relations and Trade and the Mechanical and Electrical Products Export Office under the State Council disciplinary action to suspend or revoke the operational power according to the seriouseness of the case.

(8) At the annual meeting, the conference of whole members to undertake to draw up and amend the statutes and the related rules and regulations of the coordinating organizations, elect members of the board of directors (or leading group), hear the report on the work of the board of directors (or leading group), inspect its work and discuss and draw up coordinating plans.

The duty of the board of directors (or leading group) shall be to implement the resolutions of the conference, draw up the work plan of the coordinating organizations inspect the day-to-day export business activities of the members, deal with various problems and disputes relating to business activities and the related work. The board of directors shall have an overall point of view in the work and carry on negotiations in a democratic way. Recommendations shall be put forward in respect of important issues on which there is divergence of views and shall be reported to the Ministry of Foreign Economic Relations and Trade and the Mechanical and Electrical Products Export Office under the State Council for coordination and decision;

(9) To deal with matters entrusted by the government. To organize member units to sum up annually the whole year's work and report it to the Mechanical and Electrical Products Export Office and the Ministry of Foreign Economic Relations and Trade together with the summary on the growth of business.

IV. Rights and Obligations of Members of Specialized Export Coordinating Organization

(1) To abide by coscientiously various rules and regulations of the state relating to the export of mechanical and electrical products, safeguard consciously the interests of the state, abide by conscientiously the division of operation as stipulated, jointly maintain the international market occupied and strive to open up new markets.

(2) To have the right to use the affirmed trademarks in the given markets as alloted by division of busion of operation and according to the provisions for controlled use of trademarks of the export commodities, and to develop export business actively.

(3) To have the right to develop new export commodities and open up new markets. The developing unit to have the preference in dealing in the new products and carrying on business in the new markets but to be subject to the corresponding coordinated control.

(4) To have the right to select the members of the board of directors of the coordinating organization and to be selected, and to have the right to supervise and criticize the work of the board of directors and put forward recommendations. To have the right to participate in various important activies of the specialized export coordinating organization and in the discussion of various business rules and regulations in a democratic way (including questionaire) and to make comments and put forward recommendations.

(5) To be entitled to share the service provided by the members of the coordinating organization.

(6) To conscientiously observe the related rules and regulations of the specialized export coordinating organization. Members shall support one another, cooperate closely, negotiate on an equal footing, exchange information and report truthfully to the coordinating organization on the condition of export operation as stipulated.

(7) To guide the respective branches and subbranches, and offices and personnel abroad to develop various trades of business according to the stipulations of the specialized export coordinating organization.

(8) To do business on behalf of other members as entrusted and charge a certain amount of agency commission.

(9) To have the right to levy criticism on member units for acts in contravention of stipulations.