Laws of the People's Republic of China

The Ministry of Commerce

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

No. 13

Temporary Management Measures on Textile Export (Provisionality), which was deliberated and adopted at the 10th ministerial executive meeting of the Ministry of Commerce on June 7th, is hereby promulgated and shall be implemented as of July 20th,2005.

Minister of the Ministry of Commerce Bo Xilai

June 19th, 2005

Temporary Management Measures on Textile Export (Provisionality)

Article 1

These measures are formulated in accordance with Foreign Trade Law of the People's Republic of China and Administrative Permission Law of the People's Republic of China for the purposes of stepping up the transformation of growth mode of textile export and steadying operation order of textile export in our country.

Article 2

Ministry of Commerce is responsible for national temporary managed textile export, and works out or readjusts Temporary Managed Commodity Catalogue of Textile Export (hereinafter referred to as " Managed Commodity Catalogue") in the light of needs of works together with General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine.

Ministry of Commerce authorizes competent commercial administrations of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, Xinjiang Production and Construction Group and Harbin, Changchun, Shenyang, Nanjing, Wuhan, Chengdu, Guangzhou and Xi'an (hereinafter referred to as "local competent commercial administrations") to be responsible for management of temporary textile export permission.

General Administration of Quality Supervision, Inspection and Quarantine authorizes above administrations to be responsible for issuing origin certificate of temporary textile export in those areas according to the suggestions of Ministry of Commerce.

Article 3

Formulation and readjustment of Managed Commodity Catalogue are published by Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine by announcement, the published contents include corresponding classifications and tariff number of the products, countries or areas, period of implementation and permitted total quantity.

Article 4

Export countries in terms of these measures means final destination countries (areas), processing trade export means countries (areas) that actually declare at the customs for export. Management of entrepot trade does not apply to these measures.

Article 5

Temporary permission management of textile export apply to following customs supervisions:

Common trade, barter, import materials of trade of processing and assembling customers materials and processing goods for export, compensation trade, processing of exported material (corresponding contract), processing of imported material (non-corresponding contract), bonded factory and other trades.

The customs does not examine the license of the textile subject to Managed Commodity Catalogue that enter bonded areas, processing areas for export and other special areas and bonded places supervised by the customs from the areas outside above areas in the territory of China. When above goods are actually exited, the customs will go through the formalities of customs inspection by license for the goods exported to the countries or areas that need to implement temporary management of textile export in accordance with related regulations.

Article 6

Ministry of Commerce authorizes License Bureau to manage and guide all competent commercial administrations to issue Temporary Textile Export License (hereinafter referred to as "License". The name list, pattern of the License and special seal will be published separately by Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine.

Article 7

As for the commodities listed in Managed Commodity Catalogue, foreign trade managers (including the enterprises under the Central Government, hereinafter referred to as "managers") should go through approval formalities of temporary export permission and apply for License in local competent commercial administrations before export, and declare at the customs by the License.

Article 8

The commodities will be listed into Managed Commodity Catalogue in case of following circumstances:

1.

Textile that related countries or areas place restrictions to our country;

2.

Textile that need to take temporary management of quantity stipulated by bilateral contract.

Article 9

Temporary permitted export quantity is based on actual export achievements of corresponding commodity, determine temporary permitted export quantity that may be applied for under the item of the managers' actual export achievements at the customs (hereinafter referred to as "quantity that may be applied for") according to following calculation formula:

S£½T¡Á[a1¡Á(70%¡ÁQ1/M1+30%¡ÁQ2/M2)+a2¡ÁQ3/M3]

Among them:

1.

S is the quantity that may be applied for;

2.

T is the definite national temporary permitted export quantity;

3.

Q1 is the actual export achievements that managers export to the countries or areas that place restrictions after integration. Q2 is the actual export achievements that the managers (Q1¡Ù0) export to the whole world except for the countries and areas that place restrictions after integration. Q3 is the actual export achievements that managers export to the whole world before integration during statistical period.

4.

M1 is the actual export achievements that the managers in the whole country export to the countries and areas that place restrictions after integration. M2 is the actual export achievements that all managers (Q1¡Ù0) export to the whole world except for the countries and areas that place restrictions after integration. M3 is the actual export achievements that managers export to the whole world before integration during statistical period.

5.

a1 is export weight after integration, and a2 is export weight before integration. Say temporarily a1=0.7, a2=0.3, if the range of statistical period does not cover the period before integration, it is indicated a1=1, a2=0.

Article 10

Ministry of Commerce determines the managers' actual export achievements of related commodities in accordance with following principles:

(1)

According to export statistical data below the items of 10th place tariff numbers of Chinese customs;

(2)

Statistical period is 12 months before the implementation of temporary export permission;

(3)

Sum of actual export achievements is calculated according to the rate of added value of exported products. Common trade is calculated at the rate of 100% of export sum. Processing trade is calculated temporarily at the rate of 100% of export sum.

(4)

As for the group corporations that have many sub companies, branches or holding companies, the statistics is made according to actual managers (customs code of the enterprises), temporary export permission is listed under the name of every manager.

(5)

If the same manager uses more enterprises codes of Chinese customs (the enterprise's name must be the same) when he go through customs formalities for a certain commodity, the manager may calculate them together after applying to Ministry of Commerce and make the record. If he does not apply for the combination, the calculation should be made in accordance with the actual achievements under the item of the enterprise's code of the customs.

Article 11

Ministry of Commerce determines the classifications and quantity of the commodities that the managers may apply for in accordance with distribution principles, and distribute to all local competent commercial administrations in the form of writing or electron in one time or several times 30 days after the publication of Managed Commodity Catalogue, and publish them on website of Ministry of Commerce.

Article 12

The managers obtaining the quantity that may be apply for should make the application for permission to local competent commercial administrations within the range of classifications and quantity that may be apply for distributed by Ministry of Commerce.

Article 13

All local competent commercial administrations should gather and report in writing the application report and electronic data of the managers in these areas within 15 days as of the distribution day of the quantity that may be applied for.

Within 15 days at the receipt of the application report and electronic data of local competent commercial administrations, Ministry of Commerce may handle uniformly application permission formalities for local competent commercial administrations within the range of the quantity that may be applied for, and distribute permitted allocation quantity of temporary export to all managers in the whole country in the form of ministerial letter.

Article 14

To the commodities that the management time limit exceeds one year, Ministry of Commerce will arrange 5 percent of total quantity of temporary export permission nationwide from the second year for supporting the new managers who do not obtain application quantity. and distribute them to all local competent commercial administrations in accordance with the calculation principle in Article 9 . All local competent commercial administrations allocate them in the light of concrete conditions and publish the result on government's website.

Article 15

Temporary Textile Export License implements "one lot one license", "one customs one license", and is valid within Gregorian calendar year for the period of 6 months and become invalid if it is overdue. If the owner of Temporary Textile Export License does not export any commodities within valid period, he may have the license extended in original license issuing organ. The extension must not exceed three months. If it needs to extended or make any changes, a new license should be issued.

Article 16

If the managers obtaining Temporary Export License could not use up all the quantity within valid period of temporary permitted export quantity, they should hand over the surplus quantity to Ministry of Commerce no later than 60 days before the end of permission year. The enterprises under the Central Government in Beijing hand over them to Beijing competent commercial administration, and other managers hand over them to Ministry of Commerce through local competent commercial administrations.

Article 17

If the owner of Temporary Textile Export License does not use the quantity more than 20 percent of applied quantity and do not hand over within valid period, Ministry of Commerce will cut their quantity correspondingly according to proportion in next year's allocation.

Article 18

The quantity handed over and not applied for by the managers should be brought into surplus quantity of temporary permission of textile export in the same year. Total surplus should be allocated by Ministry of Commerce in accordance with Article 9 , and allocation result should be distributed no later than 45 days before the end of the permission year.

Article 19

The managers who have obtained Temporary Export License should fill in License Application Form according to the facts and affix a seal of the enterprises when they apply for the License. Whoever applies for it through internet should fill in electronic form according to the facts and send it to corresponding license issuing organ.

The managers should submit or post related export contract (copy of original one) to license issuing organs at the same time when they make the application in the form of writing or through internet.

Article 20

After receipt of effective correct and completed application for the license, all license issuing organs should issue license within 3 working days in accordance with permission documents for temporary export and corresponding electronic data distributed by all local competent commercial administrations authorized by Ministry of Commerce.

Article 21

To the commodities managed by temporary export permission, Managers should apply for textile origin certificate to temporary license issuing organs authorized by General Administration of Quality Supervision, Inspection and Quarantine after they obtained temporary export license. License issuing organs issue textile origin certificate by license, and the quantity, amount of money and other related content should be consistent in the license and the certificate.

Article 22

Managers declare at the customs by License with a special seal for Textile License, go through the customs in related import countries by electronic data and written License of Ministry of Commerce and origin certificate issued by competent license issuing organ.

Article 23

The customs should verify the license affixed with special seal for Textile License when handling related textile export formalities. To the exported textile subject to legal examination, the customs should handle the formalities of inspection and clearance by Clearance Sheet of Exit Cargo issued by inspection and quarantine organs.

Ministry of Commerce checks up the license through electronic internet together with General Administration of Customs. Related mechanism of electronic verification and corresponding verification management measures will be worked out, published and implemented separately.

Article 24

Temporary Textile Export License must not be transferred, bought and sold, forged and revised. Whoever transfers, buys and sells or forge and revise approval documents for license or export license will be punished in accordance with related provisions of Foreign Trade Law of the People's Republic of China, Customs Law of the People's Republic of China, Management Regulations of Cargo Import & Export of the People's Republic of China and Management Measures on License of Cargo Export. At the same time Ministry of Commerce may cancel temporary permitted textile quantity that he has obtained.

Article 25

Managers who exports samples and every lot of samples does not exceed 50 pieces (including pieces, suit, pair, kg or other commodity units, excluding dozen, dozen pair, dozen suit and ton) may exempt from applying for export license. But if the samples are subject to those that the customs of import country requests them to pass the customs by license, managers should apply for the license to license issuing organ within the range of quantity the enterprise may apply for.

Article 26

The export of exhibits or exhibits for sale for taking part in or holding exhibition in foreign countries is handled according to related regulations of Management Measures on License of Cargo Export. Those that the customs of import country requests the license for passing the customs should be handled in accordance with related provisions of Article 25 of these measures.

Article 27

If the commodities subject to temporary export permission management are performed automatic permission of textile export before the implementation of Temporary Export License, Automatic License for Textile Export will not be used as the evidence of passing through the customs as of the implementation day of Temporary Export License.

Article 28

If any managers evade the provisions of these measures to export the commodities of the origin of China through a third country or area to the country or area stipulated by Managed Commodity Catalogue, and as soon as it is investigated to be true, Ministry of Commerce will make an announcement to prohibit them to be engaged in all export activities relating the commodities subject to temporary export permission management within 1 year as of the effective day of related administrative punishment.

Article 29

License issuing, investigation of law enforcement organs, verification of license issuing organs, and the punishment on the license issuing organs that violating related regulations and the managers that transfer, buy and sell or forge and revise license are handled in accordance with related provisions of Management Measures on License of Cargo Export unless there are separate regulations.

Article 30

The textile processed through OPA in the interior but the origin is not in the interior do not apply to these measures.

Article 31

The interpretation of these measures is vested in Ministry of Commerce.

Article 32

These measures will come into effect on July 20, 2005.