Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Economic Relations and Trade of the People's Republic of China

No.12

In accordance with the Law of the People's Republic of China on Foreign Trade and the Regulations of the People's Republic of China on the Administration of Goods Import and Export, the Measures for the Administration of Export Commodities Quotas has been approved after discussion at the 9th ministerial meeting of the Ministry of Foreign Trade and Economic Cooperation of 2001 and is hereby promulgated, and shall come into force on January 1, 2002.

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

December 20, 2001

Measures for the Administration of Export Commodities Quotas

Chapter I General Provisions

Article 1

In order to standardize the administration of export commodities quotas, to guarantee that the administration of export commodities quotas consist with the principles of efficiency, justness, openness and transparency and to safeguard the normal exports of commodities subject to quota administration, these Measures have been formulated according to the relevant provisions of the Law of the People's Republic of China on Foreign Trade (hereinafter referred to as the Foreign Trade Law) and the Regulations of the People's Republic of China on the Administration of Goods Import and Export (hereinafter referred to as the Regulations on Goods Import and Export).

Article 2

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) shall be responsible for the administration of export commodities quotas of the whole country. The commissions (departments, bureaus) of foreign trade and economic cooperation of the provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan (hereinafter referred to as the local administrative authorities of foreign trade and economic cooperation) shall, based on the authorization of the MOFTEC, be responsible for the administration of export commodities quotas within their respective area.

Article 3

According to the provisions of Article 35 and Article 36 of the Regulations on Goods Import and Export, the MOFTEC applies export quota administration with respect to the commodities restricted from export by the State.

Article 4

These Measures shall be inapplicable to the following commodities subject to export quota administration:

1)

Export commodities subject to quota bidding or paid use administration;

2)

Export commodities subject to passive quota administration according to the provisions of multilateral or lateral agreements;

3)

Commodities listed in the appendixes of these Measures.

Article 5

These Measures shall be applicable to the exports of the commodities subject to quota administration in various trade forms.

Article 6

The valid term of export commodities quotas shall expire on December 31 of their current year.

Chapter II The list of export commodities subject to quota administration

Article 7

The list of export commodities subject to quota administration shall be formulated, adjusted and promulgated by the MOFTEC.

Article 8

The list of export commodities subject to quota administration shall be promulgated at least 21 days before the implementation; and in case of emergency, shall be promulgated not later than the day of implementation.

Chapter III Total Amount of Export Quotas

Article 9

The total amount of export commodities quotas shall be determined and promulgated by the MOFTEC.

Article 10

When determining the total amount of export commodities quotas, the MOFTEC shall take the following factors into consideration:

1)

needs of guaranteeing the safety of national economy;

2)

needs of protecting the limited domestic resources;

3)

development planning, objectives and policies of the State on the relevant industries;

4)

demands of the international and domestic markets, and the production and sales status.

Article 11

The MOFTEC shall promulgate the total amount of export quotas of the next year before October 31 of each year.

Article 12

The MOFTEC may adjust the total amount of export commodities quota according to the actual needs, but the relevant adjustments shall be finished and promulgated no later than September 30 of that current year.

Chapter IV Application for Export Quotas

Article 13

The export enterprises that have the license or qualification for import and export management and have no violation of laws and rules in economic activities in the last 3 years may apply for the export commodities quotas.

Article 14

The enterprises under local administration shall file the applications for quotas to the local administrative authorities of foreign trade and economic cooperation; the local administrative authorities of foreign trade and economic cooperation shall, after examining and gathering the applications of the enterprises of their respective area, report to the MOFTEC according to the requirements of the MOFTEC. The enterprises under central administration shall directly apply to the MOFTEC for the export commodities quotas.

Article 15

The export enterprises shall file the quota applications in formal written form, and shall submit the relevant documents and materials according to the requirements.

Article 16

The MOFTEC shall accept the applications for the export commodities quotas of the next year presented by the local administrative authorities of foreign trade and economic cooperation and the enterprises under central administration from November 1 to 15 each year, and shall not accept the applications filed at other time.

Chapter V Distribution, Adjustment and Management of Export Quotas

Article 17

The MOFTEC shall distribute the export commodities quotas to the local administrative authorities of foreign trade and economic cooperation and the enterprises under central administration; and the local administrative authorities of foreign trade and economic cooperation and the enterprises under central administration shall, within the amount of quotas of their respective area and according to these Measures and the relevant provisions of the State on the administration of goods export, distribute the quotas to the enterprises of their respective area that have filed applications.

Article 18

The MOFTEC shall distribute the export quotas of the next year to the local administrative authorities of foreign trade and economic cooperation and the enterprises under central administration before December 15 of each year; and the administrative authorities of foreign trade and economic cooperation shall distribute the quotas handed down by the MOFTEC to the applying enterprises of their respective area. If there exist precarious factors in the international market, the MOFTEC may distribute the export quotas of the next year in two times. In the first distribution, no less than 70% of the total amount of quotas shall be distributed before December 15 of each year; and the rest part shall be distributed no later than June 30 of the current year.

Article 19

When distributing the quotas, the MOFTEC and the local administrative authorities of foreign trade and economic cooperation shall take into full consideration the export performance of that commodity, the utilization rate of quotas, the business management capacity, the production scale and the resources status, etc. of the applying enterprise or area in the last 3 years.

Article 20

Under any of the following circumstances, the MOFTEC may increase or reduce the quotas that have already been distributed to the local administrative authorities of foreign trade and economic cooperation or the enterprises under central administration:

1)

Major changes take place in the international market;

2)

Major changes of domestic resources take place;

3)

The quota use paces between the areas or the enterprises under central administration are obviously unbalanced.

Article 21

The local administrative authorities of foreign trade and economic cooperation shall, in line with the principle of increase of utilization rate of quotas, inspect the enforcement of export commodities quotas of their respective area regularly, and shall take back the distributed quotas and redistribute them with respect to those of which the utilization rate fail to meet the prescribed requirements.

Article 22

The local enterprises shall return the annual quotas that they fail to use to the local administrative authorities of foreign trade and economic cooperation in time, and the local administrative authorities of foreign trade and economic cooperation may redistribute the quotas within their respective area or hand them in to the MOFTEC in the current year.

The enterprises under central administration shall directly return the annual quotas they fail to use to the MOFTEC before October 31 of the current year.

Article 23

If the local administrative authorities of foreign trade and economic cooperation or the enterprises under central administration fail to return the quotas according to the provisions of Article 22 of these Measures, and fail to implement all the quotas of their respective enterprise or area before the end of the current year, the MOFTEC may deduct their corresponding quotas in the next year.

Article 24

The MOFTEC and the local administrative authorities of foreign trade and economic cooperation shall notify the relevant export license issuing bodies about the quota distribution and the adjustment results at the same time; the distribution results and the adjustment plans of the local administrative authorities of foreign trade and economic cooperation shall be reported to the MOFTEC for record in 30 days from the day on which the decision is promulgated.

Article 25

The export enterprises shall, based on the quota certifications issued by the MOFTEC or the local administrative authorities of foreign trade and economic cooperation and according to the provisions on the administration of export license, apply to the license issuing bodies authorized by the MOFTEC for the export quota licenses, and go through the procedures for examination and release at the customs based on the export quota licenses.

Chapter VI Legal Responsibilities

Article 26

Where any export operator exports export commodities subject to quota administration beyond the scope approved or licensed or without approval by the means of falsely reporting the commodity name or reporting less export amount, etc., he shall be punished according to the provisions of Article 65 of the Regulations on Goods Import and Export, and the MOFTEC may cancel the export commodities quotas he has already obtained.

Article 27

Where anyone forges, alters or trades the export commodities quota certificates, documents of approval or export quota licenses, he shall be punished according to the provisions of Article 66 of the Regulations on Goods Import and Export, and the MOFTEC may cancel the export commodities quotas he has already obtained.

Article 28

Where any export operator obtains the export commodities quotas, documents of approval or export quota licenses through deception or other improper ways, he shall be punished according to the provisions of Article 67 of the Regulations on Goods Import and Export, and the MOFTEC may cancel the export commodities quotas he has already obtained.

Article 29

Where the local administrative authorities of foreign trade and economic cooperation distribute the quotas in violation of the provisions of these Measures or the provisions of the State on the administration of state-run trade or designated management, they shall be punished according to the relevant provisions of the Administrative Penalties Law, and the MOFTEC may notify them to make corrections and give them warnings.

Article 30

Where anyone has objections against the decisions on quota distribution or decisions on penalties made by the MOFTEC, he may either apply for administrative review according to the Administrative Review Law, or bring a lawsuit before the people's court.

Chapter VII Supplementary Provisions

Article 31

The export commodities quotas of enterprises with foreign investment shall be handled according to the relevant provisions.

Article 32

The power to interpret these Measures shall remain with the MOFTEC

Article 33

These Measures shall enter into force on January 1, 2002. The Interim Measures of the Ministry of Foreign Trade and Economic Cooperation for Reporting, Distributing and Enforcing Export Commodities Quotas promulgated by the MOFTEC on October 6, 1998, and the Rules for the Implementation of Interim Measures for Reporting, Distributing and Enforcing Export Commodities Quotas promulgated by the MOFTEC on January 2, 1999 shall be nullified simultaneously.