Laws of the People's Republic of China

MOFCOM, NDRC, GAC, AQSIQ, and CAA

MOFCOM, NDRC, GAC, AQSIQ, and CAA of the People's Republic of China Supplementary Circular on Regulating Export Order of Motorcycle Products

Shang Ji Dian Fa [2006] NO. 44

Administrative commercial departments, development and reform commissions and economic and trade commissions of all provinces, autonomous regions, municipalities, separately listed cities in plan and Xinjiang Production and Construction Corps, Guangdong branch office, Special Commissioner's offices in Tianjin and Shanghai of General Administration of Customs, all customs and bureaus for entry-exit inspection and quarantine directly under General Administration of Customs, and related enterprises:

Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, State Bureau of Quality and Technical Supervision, and Certification and Accreditation Administration of the People's Republic of China jointly released Circular on Regulating Export Order of Motorcycle Products (No.699, 2005, hereinafter referred to as Circular) on Dec 28, 2005. Here announces the supplementary circular as follows, which covers related matters on export administration on off-road motorcycles, implementation of the contracts signed before release of the Circular and related definition on qualifications, statistics and export administration on engines of motorcycle and vehicle frames as well.

1.

Export administration on off-road motorcycles

(1)

. Off-road motorcycles in this Circular refer to no less than 50CC motorcycles that are designed for entertainment and athletics, but not for on-road or on-street use. Off-road motorcycles include motorossers, road racers, enduroes and so on.

(2)

. Off-road motorcycle producing enterprises must meet the following conditions for export of off-road motorcycle.

a.

Approved by certificate of enterprise quality and management system recognized by the state, such as ISO9000 or other related certificates of the nation;

b.

No less than 500,000 U.S Dollar export amount of off-road motorcycle during last year;

c.

Legal operation, no violation of IPR;

d.

Off-road motorcycle producing enterprises must have obtained related certificates of motorcycle access of importing countries or satisfied their requirements of related regulations on technologies;

Related departments will organize to stipulate the qualifications of off-road motorcycle producing enterprises as well as quality standards on their products in the meanwhile. The export of off-road motorcycles will take the new regulations as criterion as from release.

(3)

. Enterprises listed in List of Finished Motorcycle and ATV Producing Enterprises with Export Qualifications and Export Operation Enterprises with their Authorization (hereinafter referred to as List of Export Enterprises) must give clear indication of ˇ°off-roadˇ± in specification of the motorcycle products. For consumer's convenience, permanent sign of ˇ°off-roadˇ± (including words in Chinese characters or languages of the importing countries and the abbreviations as well) must be marked conspicuously on the motorcycles.

(4)

. Finished motorcycle and ATV producing enterprises with export qualifications that conforms to regulations of Article 1 of the Circular will obtain export qualifications of off-road motorcycle export automatically.

(5)

. In addition, please refer to related regulations on motorcycle export administration for export management on off-road motorcycles.

2.

Implementation of the contracts signed before release of the Circular

Enterprises that signed contracts before Jan 15, 2006, but without export qualifications, must register at administrative commercial departments (offices of import and export of electromechanical products) of the provinces, autonomous regions, municipalities and separately listed cities in plan or Xinjiang Production and Construction where the enterprises are located. Based on the registrations, license-releasing departments authorized by Ministry of Commerce will issue export license and inspection and quarantine organs will accept declaration of examination.

3.

Definition on qualifications

(1)

. Branches of group corporations with motorcycle producing access of development and reform commissions may declare in names of either the group corporation or branches.

(2)

. In case the export markets of ATV enterprises have no requirements on ATV access, enterprise quality and management system recognized by the state, such as ISO9000 are needed for declaration of List of Export Enterprises.

4.

Statistics

(1)

. Export amount includes self-management of export and supply export. Self-management of export is subject to statistics of the Customs while supply export is subject to declaration documents of foreign trade. Administrative commercial departments of the provinces, autonomous regions, municipalities and separately listed cities in plan or Xinjiang Production and Construction where the enterprises are located need to provide certification of supply export amount after examination and approval.

(2)

. Sales in the domestic finished motorcycle markets in 2005 are subject to number of certificates of approval reported to National Development and Reform Commission or number of tax certification. Development and reform commissions or economic and trade offices of provinces, autonomous regions or municipalities are responsible for work of examination, approval, and certification release as well.

5.

Export administration on engines of motorcycle and vehicle frames

Catalogue administration of export qualification will be carried out engines of motorcycle and vehicle frames. Only with authorization of finished motorcycle enterprises with qualifications, export operation enterprises can undertake export business of engines and frames of motorcycles. There is no limit to number of authorized enterprises. Certification of authorization includes reliability of engines and frames of motorcycles, word of approval for export, export nations and regions, seals of the enterprises, signatures of the corporations and so on (refer to appendix for format).

Administrative commercial departments (offices of import and export of electromechanical products) of the provinces, autonomous regions, municipalities and separately listed cities in plan or Xinjiang Production and Construction should speed up to organize declaration of enterprises in accordance with spirit of this Circular.

Ministry of Commerce

National Development and Reform Commission

General Administration of Customs

Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration of the People's Republic of China

Feb 15, 2006