Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Economic Relations and Trade of the People's Republic of China

No.17

In accordance with the Regulations of the People's Republic of China on Administration of Import and Export of Technologies, the Rules of the People's Republic of China on Registration of Technology Import and Export Contracts have been approved by the 9th regular session of the Minister's Meeting in 2001 and are hereby published. These Rules shall be implemented from January 1, 2002.

Shi Guangsheng, Minister of MOFTEC

December 30, 2001

Rules of the People's Republic of China on Registration of Technology Import and Export Contracts

Article 1

These Rules are formulated in accordance with the Regulations of the People's Republic of China on Administration of Import and Export of Technologies in order to standardize the administration of contracts of import and export of technologies that can be feely imported or exported, to establish the information system for technology import and export, and to promote technology import and export.

Technology import contracts signed as appendixes to joint venture contracts or to articles of association or as part of equity or share of capital at the establishment of Sino-foreign equity joint ventures, Sino-foreign contractual joint ventures or wholly foreign-owned enterprises are also subject to relevant laws and regulations governing foreign-invested enterprises.

Article 2

Technology import and export contracts include contracts of assignment of patent rights or rights to apply for patents, contracts of licensing of rights to implement patents, contracts of licensing the use of technical know-how, contracts of technical service and other contracts concerning technology import and export.

Article 3

On-line registration should be made for each contract of import or export of technology which can be imported or exported freely. The competent authorities of foreign trade and economic cooperation (hereinafter as "the Competent Authorities") are in charge of the administration of registration of technology import and export contracts.

Contracts of import or export of technology which can be imported or exported freely shall enter into force upon their execution in accordance with law.

Article 4

MOFTEC is in charge of the administration of registration of technology import contracts for key projects.

Key projects refer to:

(1)

Projects financed or partly financed by State fiscal budget, loan granted by foreign governments or international financial institutions;

(2)

Projects approved by the State Council.

Upon execution of technology import contracts for key projects, the importer shall make registration on the website of China International E-Commerce Network (http:// info.ec.com.cn), and submit to MOFTEC for purpose of registration the application for registration, copies of the contracts and documents evidencing the legal status of the contracting parties. MOFTEC shall check the contents of the contracts and issue the Registration Certificates for Technology Import Contracts within three (3) working days.

Article 5

The competent authorities of foreign trade and economic cooperation of provinces, autonomous regions, cities under direct control of the central government and cities under special economic planning (hereinafter as "the Local Competent Authorities") are in charge of the administration of registration of technology import and export contracts for non-key projects. Technology import and export contracts signed by enterprises controlled by the central government shall also registered at the Local Competent Authorities at the location of the enterprises concerned.

The Local Competent Authorities may also authorize the Competent Authorities at a lower level to handle the registration of technology import and export contracts.

Upon execution of technology import and export contracts for non-key projects, the importer or exporter shall make registration on the website of China International E-Commerce Network, and submit to the Local Competent Authorities for purpose of registration the application for registration, copies of the contracts and documents evidencing the legal status of the contracting parties. The Local Competent Authorities or the authorized Competent Authorities at a lower level shall check the contents of the contracts and issue the Registration Certificates for Technology Import Contracts or the Registration Certificates for Technology Export Contracts within three (3) working days.

Article 6

In case the application documents are not in conformity with Article 18 or 40 of the Regulations of the P.R. China on Administration of Import and Export of Technologies or the on-line registration is not in conformity with the content of the contracts, the Competent Authorities shall notify the importer or export to revise or complete the documents. The Competent Authorities shall check the contents of the contracts and issue the Registration Certificates for Technology Import Contracts or the Registration Certificates for Technology Export Contracts within three (3) working days upon receiving the revised or completed documents.

Article 7

The following items of the technology import and export contracts shall be registered:

(1)

Code of the contracts;

(2)

Title of the contracts;

(3)

Suppliers of the technologies;

(4)

Recipients of the technologies;

(5)

Users of the technologies;

(6)

Main content of the technologies;

(7)

The contractual value;

(8)

Mode of payment;

(9)

Mode of foreign exchange collection;

(10)

Term of credit.

Article 8

A standard code shall be given to each technology import and export contract:

The code shall have 17 digits:

The first nine digits are fixed: the first and the second digits being the last two digits of the year in which the contract is executed; the third and four being the code of importing or exporting countries; the fifth and sixth being the code of area where the importing or exporting enterprise is located; the seventh indicating import or export (Y representing import and E representing export); the eighth and ninth being the code of the importing or exporting enterprise; and the last eight digits can be defined by the enterprise.

For example: 01USBJEO1CNTIC001

Article 9

In case revision is made to the registered items of the technology import and export contracts as provided in Article 7 of these Rules, the importer or exporter is required to make new registration for the changes.

Article 10

Suspension for application or early termination of registered technology import and export contracts should be recorded at the Competent Authorities.

Article 11

These Rules shall enter into force on January 1, 2002.