Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Order of the President of the People's Republic of China

No.20

In accordance with the "Foreign Trade Law of the People's Republic of China" and the "Regulations of the People's Republic of China on the Administration of the Import and Export of Goods", and upon consent by and after negotiation with the General Administration of Customs, the "Measures on the Administration of Automatic Import License of Goods" are hereby promulgated and shall come into force on January 1, 2002.

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

December 31, 2001

Measures on the Administration of Automatic Import License of Goods

Article 1

These Measures are enacted in accordance with the "Regulations of the People's Republic of China on the Administration of the Import and Export of Goods" in order to effectively monitor the import of goods and regulate the automatic import license of goods.

Article 2

The Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China (hereinafter referred to as "the MOFTEC") shall, on the basis of the needs of monitoring the import of goods, administer the automatic import license of some goods.

Article 3

The catalogue of goods subject to automatic import license administration, including the names and tariff numbers of specific goods, shall be determined by the MOFTEC after negotiation with the relevant departments, and shall be promulgated at least 21 days before the execution thereof. The present catalogue of the goods subject to automatic import license administration is attached behind (see Attachment I).

Article 4

When, with respect to the goods subject to automatic import license administration, the reasons for the implementation of the administration have been changed, the MOFTEC shall cancel the automatic import license administration on the goods, and shall promulgate the cancellation.

Article 5

The automatic import licenses shall be issued by the Quota License Affairs Bureau, the departments in charge of foreign trade and economic cooperation of all provinces, autonomous regions, municipalities directly under the Central Government and cities directly under State planning as well as the relevant State departments (hereinafter uniformly referred to as the "license-issuing institutions") upon authorization by the MOFTEC. The name list of specific license-issuing institutions is attached behind (see Attachment II).

The MOFTEC shall be responsible for the supervision of the manufacture of the "Automatic Import Licenses" (for the sample form, please see Attachment III) and the "Special Seals for Automatic Import License" (for the sample seal, please see Attachment IV) and shall distribute such licenses and seals to the entities using the seals. Each of the entities using the seals must designate a special person to keep the seal, which shall be used for the special purpose.

Article 6

An import business operator shall, when importing the goods subject to automatic import license administration, submit an application for automatic import license to the automatic import license issuing institution authorized by the MOFTEC before it makes customs declaration. The customs shall handle the customs declaration formalities on the basis of the "Automatic Import License" covered with a "Special Seal for Automatic Import License". The bank shall handle the formalities on purchase of and payment in foreign exchange by depending on the "Automatic Import License".

Article 7

An import business operator shall, when applying for an automatic import license, submit the following documents:

(1)

the application form for the automatic import license (for the pattern, please see Attachment V);

(2)

the contract on the import of the goods;

(3)

copies of legal documents within the business scope approved by the administrative organ;

(4)

the contract on agency import concluded between the entrusting party and the import business operator if the import is subject to entrustment;

(5)

the documents attesting that the uses of the imported goods or the final users conform to be State provisions if there are certain provisions regarding the uses of the imported goods or the final users;

(6)

other necessary documents provided for by the MOFTEC to be submitted.

Article 8

With respect to any application for license with correct contents and a complete form, the license-issuing institution shall, after the receipt of such an application, immediately approve it within the feasible extent of its administration, and shall issue an automatic import license. In case of any particular circumstance, it shall issue the license within a time of no more than 10 working days as of its receipt of the application. The license-issuing institution shall transmit the relevant electronic data to the MOFTEC in time according to the relevant provisions.

Article 9

Any import business operator, once conforming to the State requirements in laws and regulations on being engaged in the import operation of goods subject to automatic license, may have the qualification to apply for and acquire the "Automatic Import License".

With respect to the goods subject to State designated trading administration, only the designated trading enterprises may have the qualification to apply for and acquire the automatic import license; if a non-designated trading enterprise needs to import the goods subject to designated trading, it shall entrust a designated trading enterprise to act as an agent for the import, who shall apply for the automatic import license. An import business operator may, if importing the goods subject to designated trading administration in a relevant manner exclusively provided for in the designated trading administration, directly apply for the automatic import license.

With respect to the goods subject to State trading administration, both State trading enterprises and non-State trading enterprises shall, when applying for and obtaining the automatic import license, conform to the relevant State provisions on the administration of State trading.

Where there are certain provisions on the uses or users of the imported goods in laws, regulations or State industrial policies, the application for the automatic import license shall conform to the relevant provisions.

Article 10

Whoever imports goods in any of the following trading manners does not need to obtain the automatic import license:

(1)

the manner of processing trade;

(2)

import of sample goods or advertisement products;

(3)

other trading manners provided for in State laws or regulations, in which the automatic import license does not need to be obtained.

Article 11

Where an import business operator does not use the automatic import license which it has obtained, it shall return the license to the original license-issuing institution, and shall state the reason; if it has lost the license, it shall immediately report to the original license-issuing institution, who shall, after verifying that the loss will cause no ill consequence, re-issue the license.

Article 12

With respect to the goods subject to automatic import license administration, which are under temporary prohibitive measures in import or temporary restrictive measures in the quantity of import taken by the State, the issuance of the automatic import license shall be ceased as of the date when the temporary measures come into force.

Article 13

The system of "one license for one batch" shall be exercised for the "Automatic Import License", that is, the same automatic import license shall not be used in accumulative customs declaration in batches. The period of validity of an automatic import license shall be six months. Where the said period needs to be extended or the automatic import license needs to be modified, a new license shall be re-applied for and re-issued without exception, and the previous license shall meanwhile be cancelled.

Article 14

Whoever imports the goods subject to automatic import license administration without permission before applying for and obtaining the automatic import license in accordance with these Measures, shall be treated in accordance with the relevant provisions in the Customs Law.

Whoever forges, alters or trades the automatic import license or obtains the automatic import license by deceptive means or any other unfair means, his automatic import license shall be taken back in accordance with the law, and the MOFTEC may take a measure of suspension up to revocation of its foreign trade operation license; if he has violated the Criminal Law, the case shall be transferred to the judicial department for investigation of his criminal liabilities.

The customs may, on the basis of the demand for investigating illegal cases, detain the automatic import license in accordance with the law.

Article 15

The automatic import license administration on the goods of enterprises with foreign investment shall be conducted in accordance with the present relevant provisions.

Article 16

The detailed rules for the administration of the automatic import license for mechanical and electronic products shall be enacted and promulgated by the MOFTEC in accordance with these Measures.

Article 17

The State Economic and Trade Commission and the MOFTEC shall continue to jointly administer 7 industrial products, namely, crude oil, steel, pesticides, acrylic, terylene, polyester slices, chemical fertilizer (all kinds of products of the HS number excluding urea, diammonium orthophosphate and compound fertilizer). For these industrial products, an enterprise with foreign investment shall continue to apply for the automatic import license for foreign-funded enterprise in the department of foreign trade and economic cooperation in accordance with the present provisions, and the customs shall, by depending on the automatic import license for foreign-funded enterprise covered with a special seal by the department of foreign trade and economic cooperation, inspect and release the products.

Article 18

These Measures shall not be applicable to the goods entering the bonded zones or export processing zones of the People's Republic of China, which are under automatic import license administration.

Article 19

The MOFTEC shall be responsible for the interpretation of these Measures.

Article 20

These Measures shall come into force on January 1, 2002. In case of any previous provision inconsistent with these Measures, these Measures shall prevail.

Attachment I:Catalogue of the Goods Subject to Automatic Import License Administration (omitted)

II:Name List of Automatic Import License Issuing Institutions (omitted)

III:Sample Form of the Automatic Import License (omitted)

IV:Sample of the Special Seal for the Automatic Import License (omitted)

V:Pattern of the Application Form for the Automatic Import License (omitted)