Laws of the People's Republic of China

the Ministry of Commerce

Order of the Ministry of Commerce of the People's Republic of China

No. 17

The Measures on the Notification of Illegal and Irregular Acts of Foreign Trade Operators, which were adopted upon deliberation at the 12th executive meeting of the Ministry of Commerce on July 21, 2005, are hereby promulgated and shall go into effect as of September 1, 2005.

Minister of the Ministry of Commerce, Bo Xilai

August 23, 2005

Measures on the Notification of Illegal and Irregular Acts of Foreign Trade Operators

Article 1

With a view to maintaining fair and free foreign trade order, these Measures are formulated in accordance with the Foreign Trade Law of the People's Republic of China (hereinafter referred to as the Foreign Trade Law) and other relevant laws and administrative regulations.

Article 2

These Measures shall apply to those illegal and irregular foreign trade operators that violate any of the provisions of the Foreign Trade Law and undermine the foreign trade order in the foreign trade and the foreign-trade-related intellectual property protection, and the acts thereof.

Article 3

The term "foreign trade operator" as mentioned in these Measures refers to a legal person, or any other organization or individual that has gone through its/his industrial and commercial registration or other formalities for business operation according to law and undertakes foreign trade business according to the provisions in the Foreign Trade Law and other relevant laws and administrative regulations.

Article 4

The Ministry of Commerce is responsible for the communication, coordination and collection of information about illegal and irregular foreign trade operators and their acts, and shall notify the general public of the illegal and irregular foreign trade operators and their acts on the official website or in a designated national publication.

The Ministry of Commerce and local competent commerce departments shall establish an information exchange and coordination mechanism in conjunction with the departments of customs, taxation, industry and commerce, quality inspection, foreign exchange administration, public security and courts.

Article 5

The illegal and irregular foreign trade operator and its acts notified to the general public refers to any of the following acts committed in the foreign trade business operations, for which the violator has been punished or investigated for criminal liabilities according to laws or administrative regulations:

(1)

Importing or exporting any goods or technology that is prohibited from being imported or exported, or importing or exporting without permission any goods or technology that is subject to import or export restriction;

(2)

Importing or exporting, without authorization, any of the goods subject to the administration of state-trading regime in violation of any provision on the administration of state trading;

(3)

Undertaking any banned international service trade, or unlawfully undertaking any restricted international service trade;

(4)

The importing or exporting of goods has infringed on any intellectual property right and, or has undermined the foreign trade order;

(5)

Conducting any act of monopolization against the relevant laws or administrative regulations on anti-monopolization;

(6)

Conducting such unfair competition acts as selling commodities at unjustifiably low prices, colluding in the bidding, running false advertisements, or offering commercial bribes, etc.;

(7)

Counterfeiting or altering the marks of origin of the imported or exported goods, counterfeiting, altering, buying or selling the certificates of origin, licenses for import or export, certificates of import or export quotas or other certification documents for import or export;

(8)

Defrauding export tax refunds;

(9)

Smuggling;

(10)

Evading attestations, inspections or quarantines as prescribed by laws or administrative regulations;

(11)

Violating the provisions of the state concerning foreign exchange administration; or

(12)

Committing, in violation of the laws or administrative regulations, any other act that undermines the foreign trade order.

Article 6

The notification of the information about illegal and irregular acts of foreign trade operators shall includes:

(1)

The operator's name, code of organization, domicile, place of business, legal representative and the industrial and commercial registration number;

(2)

Illegal or irregular acts; and

(3)

Punishment or criminal liabilities that shall be imposed according to the laws or administrative regulations.

Article 7

Where a foreign trade operator, which has been imposed upon administrative punishment or investigated for criminal liabilities, is under any of the following circumstances, he/she may not be notified or may not be notified for the time being:

(1)

An administrative reconsideration or lawsuit is filed within the prescribed time limit, but the final decision, ruling or judgment has not been made yet; or

(2)

Any information is prohibited from being disclosed as prescribed by any law or regulation because it involves the national security or commercial secret.

Article 8

The Ministry of Commerce shall, in line with the principles of fairness and justice, notify the general public of those illegal or irregular foreign trade operators who have undermined the foreign trade order and their acts.

Article 9

Where a functionary responsible for notifying according to these Measures neglects his/her duty and causes any adverse influence or loss to a foreign trade operator, he/she shall bear corresponding liabilities according to the relevant laws and regulations, and the persons-in-charge shall be subject to the liabilities of leaders.

Article 10

The power to interpret these Measures shall remain with the Ministry of Commerce.

Article 11

These Measures shall go into effect as of September 1, 2005.