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Laws of the People's Republic of China

You are here: AsianLII >> Databases >> Laws of the People's Republic of China >> MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY AND ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED PRODUCTS

MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY AND ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED PRODUCTS

Measures for the Control of the Substitution of Machinery and Electrical Appliances Manufactured by Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual Joint Ventures for Similar Imported Products

Article 2 Enterprises which satisfy the following conditions may make an
application for the inclusion of their products in the Catalogue of the
Substitution of Home-made Machinery and Electrical Appliances for Similar
Imported Products (hereinafter referred to as the "Catalogue"):

(1) Chinese-foreign equity joint ventures and Chinese-foreign contractual
joint ventures (hereinafter referred to as "the enterprises"), which are
capable of providing advanced technology that satisfies domestic needs, and are
engaged in the development of new products, thereby realizing the upgrading of products and the replacement of old products with new ones, but which are at
present confronted with the temporary difficulties of an imbalance in foreign
exchange and are badly in need of support;

(2) the machinery and electrical appliances manufactured by the enterprises
are the same in performance and quality as similar products produced in
foreign countries, they can satisfy the needs of domestic users, and their
prices (the prices after taxation) are no higher than the prices of similar
imported products produced abroad;

(3) the machinery and electrical appliances manufactured by the enterprises
are in the categories that the domestic users want to import;

(4) the enterprises execute their obligations to export products in
accordance with the approved contracts.

Article 3 Chinese-foreign equity joint ventures and Chinese-foreign
contractual joint ventures, which apply for the substitution of their products
for similar imported foreign goods, shall prove by an ample demonstration and
appraise the feasibility of substituting their products for similar imported
ones at the time when they submit their feasibility studies report for
examination and approval.

Article 4 After the enterprises have gone into production, if their
products are in conformity with the stipulations of Article 2 mentioned above
and they request to have their products included in the State catalogue of the
substitution of home-made products for similar imported ones, the enterprises
shall make an application to the department concerned, and submit duplicates of the application separately to the State Economic Commission, the Ministry of
Foreign Economic Relations and Trade, and the local economic commission. The
application shall be accompanied with an application form for the substitution
of home-made machinery and electrical appliances for similar imported products,
a certification document testifying to the quality of the products, and report
on market demand projection for the said products; and the application shall
be examined and verified by the department concerned which shall, after
affixing its comments and seal to the application, transmit the application to
the State Economic Commission and the State Administration of Foreign Exchange
Control for examination and approval. Generally, the period of time for the
examination and approval shall not exceed two months, and the approved items
shall be promulgated by the State Economic Commission for execution.

Article 5 The users who need the products listed in the Catalogue may
place an order directly with the enterprises, or the China Bidding Center for
Machinery and Electrical Equipment (or other bidding agencies authorized by the
State Economic Commission) shall, in accordance with the pertinent provisions
promulgated by the State, organize bidding, thus providing advice to users for
purchasing home-made products to substitute for similar imported ones.

Article 6 Enterprises which sell machinery and electrical appliances
listed in the State catalogue of the substitution of home-made products for
similar imported goods may, with the approval of the administration of foreign
exchange control, collect part of the payment for goods in foreign exchange,
and the amount shall decrease progressively in accordance with the rate of
progress for the replacement of imported products with home-made ones,
specified in the contract or feasibility studies report.

Article 7 The bulk parts, spare parts, components, fittings and raw
materials, which the enterprises need for the production of machinery and
electrical appliances listed in the State catalogue of the substitution of
home-made products for similar imported goods, may be considered as bonded
goods and be placed under the surveillance of the Customs. Where the users
enjoy the preferential treatment of reduction of or exemption from duties when
they import the aforesaid machinery and electrical appliances directly from
abroad, the enterprises shall enjoy the same preferential treatment of
reduction of or exemption from duties when they import the said raw materials,
spare parts and components to produce similar machinery and electrical
appliances and sell them to the said users.

Article 8 The right to interpret these Measures shall reside in the State
Economic Commission.

Article 9 These Measures shall go into effect as of the date of
promulgation.
Appendix:

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-10-07	Effective Date	1987-10-07