Laws of the People's Republic of China

State Development and Reform Commission, Ministry of Commerce, Customs General Administration

Decree of the State Development and Reform Commission, the Ministry of Commerce and the General Administration of Customs of the People's Republic of China

No. 7

In accordance with the Foreign Trade Law of the People's Republic of China and the Regulation of the People's Republic of China on the Administration of Import and Export of Goods, the State Development and Reform Commission has, in conjunction with the Ministry of Commerce and the Customs General Administration, formulated the Measures for the Administration of Quotas for Coal Export, which are hereby promulgated, and shall come into force on July 1, 2004.

Ma Kai, Director General of the State Development and Reform Commission

Lv Fuyuan, Minister of the Ministry of Commerce

Mou Xinsheng, Director General of the Customs General Administration

January 7th, 2004

Measures for the Administration of Quotas for Coal Export

Chapter I General Provisions

Article 1

With a view to regulating coal export, guarantee the compliance of the administration of quotas for coal export with the principles of efficiency, impartiality, publicity and transparency, and to maintaining the normal order of coal export, the present Measures are formulated in accordance with the relevant provisions in the Foreign Trade Law of the People's Republic of China and the Regulation of the People's Republic of China on the Administration of Import and Export of Goods.

Article 2

The State Development and Reform Commission (hereinafter referred to as the SDRC) shall, in conjunction with the Ministry of Commerce, be responsible for determining the total quantity of quotas for coal export of the whole country and the distribution thereof.

Article 3

The present Measures shall be applied to coal export under ordinary trade. The coal export by other trade means shall be subject to the relevant existing provisions.

Chapter II Total Volume of and Application for Quotas for Coal Export

Article 4

The total volume of quotas for coal export in each year and the application procedures shall be announced by the SDRC on the website of China Economic Information (http://www.cei.gov.cn) and that of the State Development and Reform Commission (http://www.sdpc.gov.cn) by October 31 of the last year.

Article 5

The following factors shall be taken into account when determining the total volume of quotas for coal export:

(1)

Guaranty of the State's economic safety;

(2)

Rational utilization of coal resources;

(3)

Conformity with the development planning, targets and polices of the State in respect of the relevant industries; and

(4)

Supplies and demands in the international and domestic markets.

Article 6

Coal export shall apply state-run trade administration. An export enterprise that has obtained the state-run trade right for coal export may apply for quotas for coal export.

Article 7

An export enterprise shall file a quota application to the SDRC in due written form, and shall submit the relevant documents as required.

Article 8

The SDRC shall, from November 1 to 15 of each year, accept the applications filed by coal export enterprises for quotas for coal export of the next year.

Chapter III Distribution, Adjustment and Administration of Quotas for Coal Export

Article 9

The SDRC shall, jointly with the Ministry of Commerce, distribute to the enterprises 80% of the total volume of quotas for coal export for the next year by December 15 of each year, with the remaining part to be distributed no later than June 30th of the very year.

Article 10

The quotas for coal export shall be distributed by referring to the coal export performance of the enterprises during the last year.

Article 11

The validity period of a quota for coal export shall expire on December 31 of the current year.

Article 12

The distributed quotas may be adjusted, should any of the following circumstances occur:

(1)

There is any major change in international market;

(2)

There is any major change in the situation of domestic resources;

(3)

The schedules of using the quotas by export enterprises are obviously not balanced; or

(4)

Other circumstances under which the quotas need to be adjusted.

Article 13

A coal export enterprise shall, upon the strength of the approval document for quota, and in accordance with the relevant administrative provisions on export permit, apply to the permit issuance institution authorized by the Ministry of Commerce for the export permit, and shall, upon the strength of the export permit, go through the formalities of customs declaration and release upon inspection in the customs afterwards.

The coal export permits shall be administered in accordance with the relevant provisions of the Ministry of Commerce on permit administration.

Article 14

A coal export enterprise shall report the information on using quotas for coal export of the last month to the SDRC for archival purposes by the fifth day of each month.

Chapter IV Legal Liabilities

Article 15

Where a coal exporter is punished by the customs, the taxation authority, the commodity authority, the foreign exchange administration, or any other organ due to its violation of laws or rules, the SDRC may, in accordance with the actual circumstance, deduct the quotas for coal export that the coal exporter has already obtained.

Article 16

Where a coal exporter forges or alters an approval document or permit for export quotas, or obtains an approval document or export permit for export quotas by deceptive or other unfair means, it/he shall be punished in accordance with Articles 66 and 67 of the Regulation on Import and Export of Goods. The SDRC may also nullify the quotas for coal export that the coal exporter has already obtained.

Article 17

Whoever has any dissents over any decision on quota distribution or penalty may either initiate an administrative reconsideration in accordance with the Administrative Reconsideration Law, or bring a lawsuit to the people's court in accordance with the law.

Chapter V Supplementary Provisions

Article 18

The responsibility to interpret the present Measures shall remain with SDRC, the Ministry of Commerce and the Customs General Administration.

Article 19

The present Measures shall come into force on July 1, 2004.