Laws of the People's Republic of China

The Ministry of Commerce

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

No.52

Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and Wool Tops, formulated in accordance with the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products, is hereby announced.

Ministry of Commerce

September 28, 2003

Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and Wool Tops

Article 1

These rules are formulated in accordance with the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products promulgated by the Ministry of Commerce and the National Development and Reform Commission for the purpose of implementing tariff rate quota administration of wool and wool tops import.

Article 2

The tariff rate quota of imported wool is 287000 ton in 2004.The quota of imported wool tops is 80000ton in 2004.

Article 3

All the wool and wool tops which are imported by trade shall be administrated by tariff rate quota.

Article 4

Tariff rate quotas of wool and wool tops for the year of 2004 shall be distributed by import contracts on the principle of anyone who applies earlier getting the quota earlier. The applicants shall apply tariff rate quotas of wool and wool tops on the strength of import contracts and other relevant materials. The organization authorized by the Ministry of Commerce shall issue Tariff Rate Quota Certificate of the Imported Agricultural Products on the principle of anyone who applies earlier getting the quota earlier. The application shall not be accepted when the issued certificates have reached the quantity of tariff rate quotas of wool and wool tops for the year of 2004.

Article 5

The requirements for application:

(1)

The enterprises registered at the administrative department for industry and commerce before January 1, 2004. (Need to submit Copy of Business License for Enterprise as legal Person.)

(2)

Having fine financial condition and good records of paying taxes.(Need to submit the relevant materials of the year of 2002 and 2003.)

(3)

No record of breaking the regulations of the customs, the administrative departments of the industry and commerce, the tax authorities and the quality supervision departments from 2001 to 2003.

(4)

Having gone through the annual examination of 2003.

(5)

No violating the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products promulgated by the former State Development Planning Commission and Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and Wool Tops for the year of 2003.

Article 6

Qualifications for application:

(1)

Production enterprises and traders which have got tariff rate quotas of wool and wool tops in 2003 and have import performance (hereinafter referred to as applicants who have import performance).

(2)

Production enterprises which have no import performance in 2003 but the sale of products made from wool and wool tops is above RMB50, 000,000 Yuan and the designated wool trading enterprises published by the Ministry of Commerce (including those enterprises published by the former Ministry of Foreign Trade and Economic Cooperation.)(Hereinafter referred to as applicants who have no import performance).

(3)

The enterprises that have got the Approval Certificate of Processing Trade Operation and engage in processing trade.

Article 7

Applicants for quotas shall make applications to the local authorized organizations where the enterprises are registered on the strength of the import contracts of wool and wool tops on the principle of possession management. The applicant shall fill in the Application Form for Tariff Rate Quotas of Wool and Wool tops (see Appendix), and submit the relevant materials.

Article 8

Applicants for quotas may draw the Application Form for Tariff Rate Quotas of the Imported Wool and Wool Tops from the organizations authorized by the Ministry of Commerce or from the website of the Ministry of Commerce http://www..mofcom.gov.cn/ download and duplicate the Application Form for Tariff Rate Quotas of Wool and Wool Tops (see Appendix).

Article 9

Applicants for quotas may make applications for several times in a Gregorian calendar year. But they shall comply with:

(1)

For applicant who has import performance, the accumulated applying quantity before September 30,2004 shall not surpass the actual import quantity in2003 (which means returning the Tariff Rate Quota Certificate of Agricultural Products which has signed and sealed by the customs to the department which issued the certificate). If the actual import quantity is less than 300ton it may be calculated in 300ton.

(2)

For applicant who has no import performance, the accumulated applying quantity before September 30, 2004 shall not surpass 300ton.

Article 10

The final users of the quotas who have completely accomplished the import quantity provided by Article 9 (means returning the Tariff Rate Quota Certificate of the Imported Agricultural Products which has signed and sealed by the customs to the department which issued the certificate) may continue to apply for import quotas after September 30.

Article 11

After accepting and examining the applications, to those applicants who meet the provisions of Article 5 , Article 6 , Article 9 and Article 10 ,the authorized organizations shall report to the Ministry of Commerce in time through the computer web system, and fax the examined and signed application forms to the Ministry of Commerce. The sequence of applications determined by the results showed on the terminator of the management web system of the Ministry of Commerce.

Article 12

After receiving the applications from the website and the faxes in written form, shall notify the examination results to the authorized organizations in 5 working days.

Article 13

After receiving the notice of approve, the authorized organizations shall issue the Tariff Rate Quota Certificate of the Imported Agricultural Products in accordance with the quantity of the quotas approved by the Ministry of Commerce in 5 working days.

Article 14

The Tariff Rate Quota Certificate of Agricultural Products shall be valid for 6 months from the date it is issued. But the term of validity shall not be over December 31, 2004. For the Tariff Rate Quota Certificate of the Imported Agricultural Products used for processing trade operation, the term of validity shall not be over the end date for the finished products to re-export.

Article 15

For those goods setting out from the port of departure, and arriving in the next year, the final users shall apply for delaying to the organizations originally issuing the certificates with the relevant certificates and documents before December 31, 2004. The delaying shall not be over the end of June as the latest. For the enterprises engaging in processing trade operation which haven't completed part or all of the import, the part of the goods that hasn't been imported yet may apply for the Tariff Rate Quota Certificate of the Imported Agricultural Products for 2005, but the term of validity of the new quota certificate shall not be over the end date for the finished products to re-export.

Article 16

If the processing trade operation needs to be changed and delayed, the operator shall draw a new Tariff Rate Quota Certificate of the Imported Agricultural Products from the organization originally issuing the certificate, on the strength of the Identification of the Change of the Approval Certificate of Processing Trade Operation and the Tariff Rate Quota Certificate of the Imported Agricultural Products, but the term of validity shall not be over the time limit of change and delay stipulated in the Identification of the Change of the Approval Certificate of Processing Trade Operation.

Article 17

The final user who haven't used the tariff rate quotas in the term of validity of the quota certificate shall return the original copy of the quota certificate to the organization originally issuing the certificate. The Ministry of Commerce shall take back the quotas stipulated in the quota certificate, add them to the remaining sum of the tariff rate quotas and stop accepting and approving the application of the user for the quotas in the year.

Article 18

The enterprises which get the Tariff Rate Quota Certificate of the Imported Agricultural Products on the strength of the counterfeited contracts and materials shall be punished in accordance with the relevant provisions of the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products.

Article 19

After the imported goods completes all procedures of the customs, the final user shall return the original copy of the first form of the Tariff Rate Quota Certificate of the Imported Agricultural Products (the form of the consignee completing the procedures of the customs) to the organization originally issuing the certificate.

Article 20

The import of wool and wool tops shall be operated in accordance with the relevant provisions of the Measures on the Administration of the Designated Trading of Import Goods promulgated by the former Ministry of Foreign Trade and Economic Cooperation( the No.21 Order of the MOFTEC in 2001).

Article 21

The Ministry of Commerce is responsible for the interpretation of these rules.

Appendix:

(1)

The table of tax items and tax rate of wool and wool tops for 2004

(2)

the Application Form for Tariff Rate Quotas of Wool and Wool Tops