Laws of the People's Republic of China

REGULATIONS ON THE GENERALISED SYSTEM OF PREFERENCE
CERTIFICATES FOR EXPORT PRODUCTS OF BUSINESSES WHICH
UNDERTAKE PROCESSING AND ASSEMBLY FOR FOREIGNERS,
AND OF COMPENSATION TRADE, SINO-FOREIGN EQUITY AND
CONTRACTUAL JOINT VENTURES AND WHOLLY FOREIGN-OWNED
ENTERPRISES (FOR TRIALIMPLEMENTATION)

  (Issued on October 18, 1984 by the State Import and export
Commodities Inspection Bureau)

SUBJECT: COMPENSATION TRADE; JOINT VENTURES

ISSUING-DEPT: STATE ADMINISTRATION FOR THE INSPECTION OF IMPORT & EXPORT COMMODITY

ISSUE-DATE: 10/18/1984

IMPLEMENT-DATE: 10/18/1984

LENGTH: 889 words

TEXT:

1. These Regulations are formulated to promote the development of projects run by businesses which undertake processing and assembly for foreigners, and of compensation trade, Sino-foreign equity and contractual joint ventures, and wholly foreign-owned enterprises, and for the prompt and correct issuing of Form A Generalized System of Preference certificates of origin (hereinafter referred to as GSP certificates of origin).

2. All exporters of products which meet the following requirements may apply for the issuing of a GSP certificate of origin:

(1) They should meet the "processing criteria" and the "percentage criteria" and other relevant provisions prescribed by preference-giving countries in their GSP rules or origin;

(2) The products must be produced, manufactured, or processed and assembled in China.

3. In calculating the cost of products, all raw materials, spare parts and components, including those provided free of charge by foreign companies or manufacturers, shall be calculated in the cost of the product and may not be deducted from costs.

4. Raw materials, spare parts and components originating in China shall have proof of origin in the form of documents, marks or relevant certificates; where the origin cannot be proven, the materials, parts or components shall be regarded as being of imported composition.

5. Taiwan province, Hong Kong and Macao are integral parts of China. However, with regard to preferential treatment in the form of reductions or exemptions from Customs duty, preference-giving countries treat Taiwan, Hong Kong and Macao as individual preference-receiving areas. Therefore, should export products use raw materials, or spare parts or components from any one or more of these three areas, such materials, parts or components shall be counted as being of imported composition.

6. Products subject to a State (or provincial, autonomous region or directly administered municipality) export quota, as well as those which conflict with China's normal export trade, and those which are restricted exports to Hong Kong and Macao, shall comply with the provisions of the State, and the People's Governments of the provinces, or autonomous regions, or directly administered municipalities on export quota or restrictions thereon.

7. Application and authentication:

(1) Applicants for GSP certificates of origin must be exporting companies or factories undertaking processing and assembling businesses for foreigners or compensation trade, Sino-foreign joint equity or co-operative joint ventures or enterprises with sole foreign equity and which are officially approved by the People's Government or the foreign economic relations and trade department, at or above county level, or by departments nominated by the examining and approving organ to carry out this work.

(2) Applicants must make prompt application to the local Commodity Inspection Bureau (Office) for registration (a sample registration form is shown in Appendix 2), by presenting their document of certification issued by the examining and approving organ and a copy of the agreement or contract for processing and assembly for foreigners, compensation trade, Sino-foreign joint equity or co-operative joint venture or enterprise with sole foreign equity, as well as a detailed statement of the cost of the current consignment of products (a sample statement is shown in appendix 1) and other relevant documents. The Commodity Inspection Bureau (Office), after verification, shall register those applicants whose products conform to registration requirements and issue them with a notice of approval to apply for a GSP certificate of origin (a sample notice is shown in Appendix 3).

(3) All registered applicants applying for a certificate shall submit for verification to the Commodity Inspection Bureau (Office), not less than five days prior to the day of loading for export, the application form, the GSP certificate of origin completed in accordance with the requirements (in triplicate), a copy of the Chinese commercial export invoice and any other documents considered necessary by the Commodity Inspection Bureau (Office).

(4) Where the make-up of the origin of the raw materials, parts or components used in the processing and manufacture of the one product differs from one consignment to another, the applicant is still required promptly to supply the Commodity Inspection Bureau (Office) with a detailed statement of the cost of the product in each consignment, for verification.

8. If, on the fulfillment of a contract for the processing and assembly of products for foreigners, a new contract is signed, applicants are required to complete registration procedures anew with the local Commodity Inspection Bureau (Office).

9. With the exception of products which are transported from inland areas to the port of export and for which settlement of exchange is carried out at the port, the various Commodity Inspection Bureau (Offices) are not permitted to accept direct application for GSP certificates of origin (including application for re-issuing or modification of the certificate) from areas other than their own.

10. Application made directly by foreign (including overseas Chinese) companies or manufacturers located outside China will not be accepted.