Laws of the People's Republic of China

NOTICE CONCERNING THE THOROUGH IMPLEMENTATION OF
THE STATE COUNCIL NOTICE ON CERTAIN ISSUES
RELATING TO THE STRENGTHENING OF CONTROL OVER
COMMODITIES FOR EXPORT TO THE HONG KONG AND
MACAO REGIONS

  (Issued on January 21, 1986 by the Ministry of
Foreign Economic Relations and Trade)

SUBJECT: IMPORT & EXPORT LICENSING & ADMINISTRATION

ISSUING-DEPT: GENERAL CUSTOMS ADMINISTRATION

ISSUE-DATE: 01/21/1986

IMPLEMENT-DATE: 01/21/1986

LENGTH: 1376 words

TEXT:

(1) The list of licensed export commodities shall be amended. It has been decided to add peanut oil and another 82 commodities to the list of commodities subject to export licence control for export to Hong Kong and Macao. This shall come into effect on February 15, 1986. These, in addition to the 152 commodities which have already been announced as under export licence administration, now bring the total number to 235. At the same time, an administrative system controlling quota and licensing shall be implemented to apply to these 235 commodities which are exported to Hong Kong and Macao (including all the various forms of trade and the transhipment of goods through Hong Kong and Macao ports).

Export licensing shall still be implemented through the various administrative levels. Following amendments, 32 commodities will be granted export licences by the Ministry of Foreign Economic Relations and Trade, 42 by the special representative port offices authorised by the Ministry and 161 by the authorised provincial offices (commissions, bureaus) of the Ministry of Foreign Economic Relations and Trade.

(2) With regard to the 235 commodities subject to export licence control, the Ministry of Foreign Economic Relations and Trade or licence-issuing bodies authorised by the Ministry shall examine and issue export licences in accordance with export plans or quotas. Export of goods outside the plan or in excess of the quota must be reported to the Ministry of Foreign Economic Relations and Trade for approval. No special representative port office or authorised provincial office (commission, bureau) of the Ministry of Foreign Economic Relations and Trade may endorse and issue export licences for commodities for which there is no local export plan or quota.

The export plan and export quota shall be issued by the Ministry of Foreign Economic Relations and Trade. However, the amendment of the monthly quota for fresh, live, chilled and frozen goods for export shall be the responsibility of the authorised Guangzhou special representative port office, and the administration of the supply by Guangdong Province of vegetables, fresh water fish and fruits from southern Guangdong to Hong Kong and Macao shall still be the responsibility of Guangdong Province.

(3) All applications for export licences for commodities handled by industrial and trade corporations under the various Central Government departments, regardless of which administrative level might be responsible for issuing authorisation, shall be submitted to the respective company's head office. The head office, in turn, shall, in accordance with its undertakings under the foreign currency earning plan with regard to export commodities, apply to the Ministry of Foreign Economic Relations and Trade for the issuing of an export licence. All special representative offices and all offices (commissions, bureaus) at provincial levels authorised by the Ministry of Foreign Economic Relations and Trade shall no longer handle any export license applications nor endorse or issue any export licences for the above-mentioned corporations at their various district or branch organisations.

(4) In relation to the question of Special Economic Zone export licence control, the departments involved are at present organising the drafting of measures for the administration of foreign trade in SEZs. Before the implementation of these measures, the administration of export licences shall be carried out according to the existing regulations. That is:

1. Those commodities exported by SEZ foreign trade enterprises which have been produced within the SEZ, and which are subject to export licence control, are still to be handled according to the existing regulations. The export licences may be applied for and secured from licence issuing offices at the various levels as required. Without a licence, goods cannot be exported. The export plan and quota shall be included in the plan and quota of the respective province.

2. Should the commodities exported by the SEZ foreign trade enterprises not be produced in the SEZ (including commodities sold on a commission basis), an export licence must be applied for and obtained, in accordance with the regulations of the Ministry of Foreign Economic Relations and Trade, regardless of whether they are commodities subject to export licence control. The procedures for securing an export licence: It is necessary to hold a certificate from the authorised office (commission, bureau) of the Ministry of Foreign Economic Relations and Trade at the level of province, autonomous region, municipality under the control of the Central Government or city mentioned on the planning list where the commodities for export were manufactured (certificates by all other organisations shall not be valid). For those that are listed as commodities subject to export licence control, a licence shall be applied for and secured from the licence issuing offices at the various levels as stipulated in the regulations. For all other commodities a licence shall be applied for and secured from the provincial authorised office of the Ministry of Foreign Economic Relations and Trade in the province where the respective SEZ is located. In the "Remarks Column" of the export licence, the name of the province where the goods are manufactured must be clearly stated, to facilitate supervision and administration by Customs authorities and calculation by banks, of foreign exchange retention in accordance with regulations. The export of commodities from the Hainan Administrative Zone of Guangdong Province shall be treated in accordance with the regulations that apply to the SEZs.

(5) In cases of export from commission-processing or foreign investment projects already approved (including compensation trade, wholly foreign owned projects, Sino-foreign joint equity ventures and co-operative joint ventures), except where a ruling has already been imposed, approval documents, agreements and contracts must be produced, and an export licence applied for and obtained from the relevant issuing authority, in accordance with the principle of export licence control by different administrative levels. Henceforth, in the case of all commodities announced as being subject to export licence control, regardless of whether they be the products of commission processing or projects utilizing foreign investment, a report must be submitted in advance for examination by the Ministry of Foreign Economic Relations and Trade or its relevant authorised licensing bodies as determined by the system of export licensing by different administrative levels. After quota is obtained, the project may be accepted, and work commence, in accordance with the stipulated procedures.

(6) In the case of goods which fall into the category of the 83 items newly subject to the export licence control and which have been dispatched prior to February 15, 1985 and which are underway or have arrived at their destination without an export licence having been obtained, the export may, where it is an enterprise authorised to trade abroad and in order to prevent a build-up of goods at the port which would adversely affect normal export operations, present a letter of guarantee to the Customs authorities. Customs shall release the goods upon registration and a licence shall be obtained within a certain time limit. Failure to do so shall be dealt with by the Customs authorities in accordance with the law.

(7) All authorised licensing bodies must abide strictly by the principle of administration by the various levels. They must issue export licences in accordance with plans or quotas. Should the regulations be breached, the Ministry of Foreign Economic Relations and Trade may order a previously issued licence to be revoked and shall investigate and determine liability and may cease to issue licences.

In conclusion, the notice of the Ministry of Foreign Economic Relations and Trade solemnly reiterates any illegal sale, exchange, alternation of an export licence or attempt to obtain a licence through fraud or lies shall be strictly prohibited. Any breach of the above-mentioned Rules shall be dealt with severely.