Laws of the People's Republic of China

The Ministry of Commerce

Proclamation by The Ministry of Commerce of People's Republic of China

No.51

The detailed Rules for Allocation of the quota of import customs on palm oil, bean oil, colza oil and sugar in 2004 is formulated in accordance with the Interim Measures on the administration of the import customs quota on the agricultural production proclaimed by the Ministry of Commerce of People's Republic of China, the National Development and Reform Commission, and now is promulgated by the Ministry of Commerce of People's Republic of China.

Ministry of Commerce

September 28,2003

The detailed Rules for the allocation of the quota of import customs on palm oil, bean oil, colza oil and sugar in 2004

According to the Interim Measures on the administration of the import customs quota on the agricultural production promulgated by The Ministry of Commerce and the National Development and Reform Commission (Decree of The Ministry of Commerce and the National Development and Reform Commission No.4 (2003)), The quota's quantity, conditions for application and the allocation principle on the palm oil, bean oil, colza oil and sugar in 2004 is now promulgated as followings:

I.

In 2004, the amount of the import customs quota on palm oil, bean oil, colza oil and sugar is as followings: palm oil, 2,700 kilo tons, 18% of which is for the state-run trade; bean oil 3,118 kilo tons, 18% among which is for the the state-run trade; colza oil 1,126.6kilo tons, 18% among which is for the state-run trade; sugar 1,945 kilo tons, 70% among which is for the state-run trade

II.

An applicant, shall meet the requirements as followings, for the import customs quota on the palm oil, bean oil, colza oil and sugar:It must have registered in the administrative departments for Industry and Commerce before October 1, 2003 (a duplicate of the enterprise business license shall be needed);It must have good financial conditions and duty paid records (the relevant documents in 2003 and 2004 shall be needed);No violation records concerning the issues of customs, administration for industry and commerce, tax collections, and quality inspections;It has the qualification of the annual enterprises inspection in 2002;It has not violated the Interim Measures on the administration of the quota of import customs on the agricultural production proclaimed by the former State Development Planning Commission.An applicant for the quota shall also meet any of the following requirements, besides those set forth above:

A.

Palm oil

1

It shall be a State-run trading enterprise;

2

It shall be a Central Enterprise implementing the national reservation function;

3

It shall be an enterprise, which has been approved of the import customs quota on the palm oil application of 2003;

4

It shall be an enterprise in operation of foodstuffs manufacturing which uses palm oil as the main direct raw material and the annual amount it uses is over 3,000 tons;

5

It shall be a Process-Trade enterprise that uses palm oil as raw material.

B.

Bean oil

1

It shall be a State-run trading enterprise;

2

It shall be a Central Enterprise implementing the national reservation function;

3

It shall be an enterprise that has been approved of the import customs quota on the bean oil application of 2003;

4

It shall be an axunge-process enterprise, which can dispose the raw bean oil over 200 tons per-day and produces fine oil;

5

It shall be a Process-Trade enterprise that uses bean oil as raw material.

C.

Colza oil

1

It shall be a State trading enterprise;

2

It shall be a Central Enterprise implementing the national reservation function;

3

It shall be an enterprise, which has been approved of the import customs quota on the colza oil application of 2003;

4

It shall be an axunge-process enterprise, which can dispose the raw colza oil over 200 tons per-day and produces fine oils;

5

It shall be a Process-Trade enterprise that uses colza oil as raw material.

D.

Sugar

1

It shall be a State-run trading enterprise;

2

It shall be a Central Enterprise implementing the national reservation function;

3

It shall be an enterprise, which has been approved of the import customs quota on the sugar application of 2003;

4

It shall be a sugar refining enterprise that can dispose the raw sugar over 600 tons per-day;

5

It shall be a Process-Trade enterprise that uses sugar as raw material.

III.

The basic principle on the allocation of the import customs quota about agricultural productions mentioned above is on the basis of the importation achievement before, the production capacity and other relevant business standards.

A.

If the quantity of the import customs quota planned may meet the total quantities applies by qualified applicants, the allocation of the customs quota shall be allocated according to the quantity applied.

B.

If the quantity of the import customs quota may not meet the total amount applies by qualified applicants, the import customs quota shall be allocated first to the applicant with importation achievements; and among those applicants without importation achievements, the quota may be allocated pro rata mainly depending on the production capacity or the business amounts of the applicants. In case that an application quantity is less than the quantity pro rata allocated to it, the quota shall be allocated in accordance with the quantity it applied.

IV.

The period for applying for the import customs quota on palm oil, bean oil, colza oil and sugar is from October 15th to 30th, 2003. An applicant may acquire an application form of agricultural production import customs quota (referring to the Annex) from the authorized institutions by the Ministry of Commerce or download (copy) it from the website: www.mofcom.gov.cn.

V.

The authorized institutions by the Ministry of Commerce is responsible for receiving the applications by the local registered enterprises and transfer the applications of qualified enterprises to the Ministry of Commerce and at the same time make a copy of the applications to the National Development and Reform Commission for record.

VI.

The Ministry of Commerce shall issue certificate of the import custom quota allocation on the agricultural productions to the end-users through the authorized institutions.

Annex:

1.

Table of tax items and tax rate on plant oil and sugar

2.

Application form of the import customs quota on the agricultural productions