Laws of the People's Republic of China

Shang Chan Zi [2006] No. 73

The competent departments of commerce in all provinces, autonomous regions, municipalities directly under the Central Government, cities specially designated in the state plan and Xinjiang Production and Construction Corps:

For the purpose of implementing the spirit of the Central Economic Working Conference, the National Science and Technology Conference and the National Commerce Working Conference, promoting the project of Invigorating Trade through Science and Technology, and strengthening the management and guidance of the construction of export innovation bases, the Ministry of Commerce formulated the Measures for the Administration of Developing the Export Innovation Bases for Invigorating Trade through Science and Technology and they are hereby printed and distributed.

The construction of export innovation bases is an important means to further implement the strategy of Invigorating Trade through Science and Technology and change the growth pattern of foreign trade, and is an entirely new task. Guided by the principles of advancing steadily and step by step, the construction of export innovation bases shall be gradually conducted on the basis of pilot bases construction of this year. The competent departments of commerce at various levels shall improve their ideological understanding, strengthen the organizing and guiding work, establish and perfect the mechanism of constructing export innovation bases and promote the task by virtue of the innovative spirit and methods.

The competent departments of commerce in all provinces, autonomous regions, municipalities directly under the Central Government, cities specially designated in the state plan and Xinjiang Production and Construction Corps shall, in accordance with the spirit of the Measures for the Administration of Developing the Export Innovation Bases for Invigorating Trade through Science and Technology(for Trial Implementation),organize the relevant entities to have the working programme of constructing export innovation bases timely modified, perfected and supplemented with necessary materials, or they shall re-recommend export innovation bases. The Recommendation documentations in respect of the aforesaid export innovation bases shall be submitted to the Ministry of Commerce (Industry Department) prior to September 15, 2006.

General Office of the Ministry of Commerce of the People's Republic of China

August 31, 2006

Measures for the Administration of Developing the Export Innovation Bases for Invigorating Trade through Science and Technology ( for Trial Implementation) Chapter 1 General Provisions

Article 1

In accordance with the Decisions of the CPC Central Committee and the State Council on Implementing the Programme for Scientific and Technological Development and Increasing the Capacity for Independent Innovation (Zhong Fa [2006]NO.4)and the Opinions of Eight Ministries on Further Implementing the Strategy of Invigorating Trade through Science and Technology Forwarded by the General Office of the State Council (Guo Ban Fa [2003] No.92), the Ministry of Commerce organized "the Project of Invigorating Trade through Science and Technology" and started constructing "Export Innovation Bases for Invigorating Trade through Science and Technology" (hereinafter referred to as export innovation bases) to optimize the export structure and promote change of the growth pattern of foreign trade. These measures are formulated for the purposes of enhancing the management, supervision and guidance of export innovation bases, perfecting the construction mechanism and ensuring their sound development.

Article 2

Export innovation bases refer to the industry concentration areas with distinctive industrial characteristics, certain scale of export, fairly strong international competitiveness, capacity of international market development, good demonstration, driving and radiating effects, and perfect industrial chain and supporting systems. They shall also attach importance to technological innovation.

Article 3

Export innovation bases may rely for their development on competitive industry parks, leading enterprises in its industry and administrative regions on the prefecture level and below.

Export innovation bases shall not be developed on the basis of infrastructure construction or newly-cultivated land occupation.

Article 4

The main tasks of constructing export innovation bases are to encourage and support the innovation of industrial technologies, foster and expand the industrial scale, enhance their international competitiveness, optimize the trade environment, strengthen the development of platforms for public service, improve the quality and efficiency of development and promote the organic integration of trade, science and technology and industry.

Article 5

Overall planning shall be reinforced in the construction of export innovation bases, the resources shall be allocated rationally and the mechanism shall be innovated, multi-channel, multi-level and multi-mode supporting systems shall be explored and established, the driving effects of the industry shall be enhanced so as to promote the restructuring and upgrading of exporting industries.

Article 6

The Ministry of Commerce shall take appropriate measures with related administrations to create a favourable environment with policies conducive to the construction and development of export innovation bases, and give priority to the construction projects of export innovation bases which are in line with related commercial policies.

Chapter 2 Administrative Institutions and Their Responsibilities

Article 7

The Ministry of Commerce and the competent department of commerce in all provinces, autonomous regions, municipalities directly under the central government and cities specially designated in the state plan (hereinafter referred to as the provincial competent department of commerce) shall together be responsible for the administration, guidance and supervision of the development of export innovation bases.

Article 8

The Ministry of Commerce shall conduct a macro-control and guidance of the development of export innovation bases, draw up and implement an overall program, set the objectives and tasks for development, formulate promoting policies after research, and clarify the time, requirements and procedures of application and confirmation of export innovation bases.

Article 9

The provincial competent department of commerce shall administrate and guide the development of local export innovation bases, draw up a program , establish and perfect the local development systems, provide guidance, coordination and administration for important export projects of export innovation bases and be responsible for the data collecting, promoting, investigating, studying and propagandizing work.

Article 10

The industry concentration areas confirmed to be export innovation bases shall, led by the provincial competent department of commerce, establish leading groups which are responsible for formulating and implementing the constructing plan of export innovation bases.

Article 11

The leading groups for the construction of export innovation bases shall enhance communication and coordination with related institutions, positively seek for policy support, improve the policy environment, fully propagandize and implement the state policies of Invigorating Trade through Science and Technology and enhancing the capacity of independent innovation and formulate coordinated policies adapted to local conditions.

Article 12

The leading groups for the construction of export innovation bases shall gradually establish and perfect the systems of dynamic follow up, regular examination and information report of export innovation bases, attach importance to study and research, report regularly the construction conditions of the export innovation bases to the Ministry of Commerce and ensure steady and effective development of the bases.

Chapter 3 Application and Confirmation of Export Innovation Bases

Article 13

Provincial competent departments of commerce shall be responsible for the application and preliminary examination of local export innovation bases, and the Ministry of Commerce shall be responsible for their confirmation.

Article 14

Provincial competent departments of commerce shall choose suitable local entities for application.

The applying entities shall submit the application documentations of export innovation bases to the provincial competent department of commerce as required. The provincial competent department of commerce shall, after preliminary examination, submit the final application documents and their own opinions of preliminary examination to the Ministry of Commerce.

Article 15

The Ministry of Commerce shall, based on the principles of openness, fairness and transparency and in accordance with the requirements for confirmation, establish an expert committee on export innovation bases to appraise the implementation programme of each applicant, examine carefully the application documentations and confirm the export innovation bases.

Article 16

The applicant of export innovation bases shall meet the requirements as follows for confirmation:

(1)

to make a development plan of the export innovation base and clarify the direction and objectives of development in accordance with the Eleventh Five-Year Plan for National Economic and Social Development and the Eleventh Five-Year Plan for Invigorating Trade through Science and Technology;

(2)

to have distinctive industrial characteristics and solid industrial foundation, the export of related products to exceed $30 million and keep steady growth in recent three years.

(3)

to have an obvious technological advantage, the production scale and technologies to be in the leading position in the country, the products to have a certain market share at home and abroad, and the input for research and development to reach or exceed 3% of the total income;

(4)

with a good environment for the development of the industry, and fairly complete systems of subsidiary facilities and public service; and

(5)

the industry to have fairly strong capacity of independent innovation and international competitiveness, to establish fairly perfect systems of independent innovation and protection of intellectual property rights, and the key exporting products to have been awarded the certificate by the main exporting countries and regions of this product;

The regional layout and division of labour shall be taken into account when confirming export innovation bases; the above standards may be moderately lowered for the applicants who have made significant breakthrough or are located in the northeast China old industrial bases and the central and western areas.

Article 17

The applicant of export innovation bases shall submit an application which shall include:

(1)

the statement of development of the main industry and exportation of its goods;

(2)

the future development plan and implementation program of the export innovation base;

(3)

the statement of local supporting policies for Invigorating Trade through Science and Technology;

(4)

the statements of the production scale of the main goods and of the leading position in technology of the enterprises in the bases;

(5)

the statement of the achievements in technological innovation and of independent intellectual property rights owned by the enterprises in the bases;

(6)

the export certificate of the previous year issued by local competent departments of commerce and customs; and

(7)

other related materials.

Article 18

The confirmed applicant shall be conferred the title and plate of "Export Innovation Bases for Invigorating Trade through Science and Technology" by the Ministry of Commerce.

Article 19

Export innovation bases shall be named respectively after their specialties in line with the current key areas of industrialization of high technologies with priority.

Chapter 4 Examination and Supervision

Article 20

The Ministry of Commerce shall, together with related administrations, examine and evaluate the development and operation of export innovation bases comprehensively and regularly, and carry out dynamic management on the basis of it.

Article 21

The well-developed export innovation bases shall be further supported and their developing experience shall be summarized and propagandized; the chronically less-developed ones shall rectify and reform themselves within specified time, otherwise they shall be disqualified as the export innovation bases.

The related supporting policies shall be repealed once the export innovation bases are disqualified.

Article 22

The statistics on the construction and development of export innovation bases shall be accurate and scientific, and any concealment or false report is prohibited. Once these behaviours are discovered and verified, the Ministry of Commerce may warn, circulate a notice of criticism or disqualify the export innovation bases.

Chapter 5 Supplementary Provisions

Article 23

The provincial competent departments of commerce may formulate detailed regulations for the development of local export innovation bases in accordance with these Measures.

Article 24

The Ministry of Commerce shall be responsible for the interpretation of these Measures.

Article 25

These Measures shall enter into force as of the date of printing and issuing.