Laws of the People's Republic of China

    Article 1  These Measures are formulated in order to promote the
development of economy and foreign trade of our country, further reform
and perfect import administrative system in compliance with the
requirements of establishment of the socialist market economy system.

    Article 2  In accordance with the state industrial policy and the
plan for the development of the line of industry, and with reference to
international practice, the state executes the quota administration for the
goods which are needed to import in the right quantities to adjust market
supplies, but may cause serious injury to the development of the relevant
domestic industries or have direct effect on the readjustment of import
structure and industrial structure if they are imported excessively, and the
import goods which endanger the state's status of balance of payments in
foreign exchange.

    Article 3  The term "general goods subject to the import quota
administration", referred to in these Measures means all the goods needed
to be subject to the import quota administration with the exception of the
machinery and electrical appliances (the catalogue is attached as appendix).

    Article 4  The State Planning Commission shall, in accordance with the
requirements of the national economic development plan and the state
industrial policy, be responsible for the work of macro-administration and
coordination of the import quota for general goods throughout the country.
The State Planning Commission shall, in conjunction with the relevant
departments, put forward suggestions concerning the coordination of types
of general goods subject to the import quota administration, which shall be
promulgated and go into effect after being submitted to the State Council
for approval.

    Article 5  The State Planning Commission shall, in conjunction with
the relevant departments, in accordance with the state's position of
balance of payments in foreign exchange, the needs of domestic industrial
and agricultural production and construction and market demand, and the
needs of the state security and environmental protection, put forward the
total amount of annual import quota for general goods. After the approval
by the state council, it shall be listed into the annual plan for the
national economic and social development and shall, be distributed and
transmitted by the State Planning Commission in accordance with actual
status of economic development and the needs of production and construction
of all localities and departments.

    Article 6  Under guidance of the State Planning Commission, the
administrative organs designated by provinces, autonomous regions,
municipalities directly under the Central Government and cities under
separate planning and the relevant departments under the State Council
(hereinafter referred to as the administrative organs of the import quota
for general goods of localities and departments) shall be responsible for
the work of administration and coordination of import quota for general
goods in their own localities or departments, collect the requirements
concerning the import quota for general goods of their own localities and
departments and submit the case to the State Planning Commission after
overall balance, and examine and approve the applications for the import
quota for general goods of the enterprises directly under their own
localities or departments within the quantities of quota transmitted by
the State Planning Commission.

    Article 7  The enterprises applying for the import quota for general
goods (which means the productive enterprises and other enterprises having
registered with the administrative departments for industry and commerce and
acquired the status of legal persons after being approved by the state) shall
apply to the administrative organs of the import quota for general goods of
their own localities or departments.

    Article 8  The enterprises applying for the import quota for general
goods shall submit the relevant data such as purposes of import quota,
the ability to pay for importation and the actual state of using the quota
of last year to the administrative organs of the import quota for general
goods.

    Article 9  After receiving the application of an enterprise, the
administrative organ of the import quota for general goods shall, within
the quantities of quota transmitted by the State Planning Commission,
verify the purposes of import quota, the ability to pay for importation
of the enterprise and shall, in accordance with the actual productive and
managerial ability of the enterprise and in the light of the level of last
year, issue the certificate of import quota. If the import quota is not
permitted to be issued, the administrative organ of the import quota for
general goods of locality or department shall notice the enterprise
applying for the quota within 20 days.

    Article 10  The valid seal for the certificate of the import quota for
general goods shall be the unified special-purpose seal for the import
quota for general goods provided by the State Planning Commission.

    Article 11  After receiving the certificate of import quota issued by
the administrative organ of quota, an enterprise vested with the import
operation right may conduct operations on its own; with respect to an
enterprise which has not the right thereof, it shall entrust a foreign
trade enterprise vested with the import operating right with the external
operations. The enterprise shall apply for the import licence to the
Ministry of Foreign Trade and Economic Cooperation or the issuing organ
designated by the Ministry, the Customs shall give clearance against the
import licence.

    Article 12  The general goods subject to the quota administration,
which are imported for processing and re-export trade and entrepot trade,
shall be subject to the Customs supervision and control in accordance with
the relevant provisions.

    Article 13  The general goods subject to the quota administration,
which are imported as investments by enterprises with foreign investments,
shall be handled in accordance with existing investment laws and
regulations concerned of the state. The general goods subject to the
quota administration, which are imported for producing the products for
domestic sales, shall be listed in the plan for national total amount of
goods subject to the import quota administration, and shall be
administrated by the Ministry of Foreign Trade and Economic Cooperation
in accordance with the existing laws and regulations of the state.

    Article 14  The general goods subject to the quota administration,
which are imported because of donation, shall, in accordance with the
relevant provisions of the state and in the light of the subordinative
relationships of the accepting units, be subject to the import procedures
in accordance with these measures.

    Article 15  The general goods subject to the quota administration,
which are imported because of utilizing loans of foreign governments or
utilizing loans of international financial organizations, shall, in the
light of the subordinative relationships of the units which accept the
construction projects, be subject to the import procedures in accordance
with these Measures.

    Article 16  An import unit shall be deemed to violate these Measures
in any one of the following cases:

     (1) concluding contracts with the foreign party and receiving import
goods without applying for the certificate of the import quota in
accordance with these Measures;

     (2) altering or forging the certificate of the import quota without
authorization;

     (3) transferring illegally or racketeering in the certificate of the
import quota without authorization; or

     (4) violating the provisions of Interim Regulations of the People's
Republic of China on the Licencing System for Import Commodities.

    Article 17  Whoever violates these Measures, the Customs shall deal
with the cases in accordance with the relevant provisions of Customs Law
of the People's Republic of China and Rules for Implementation of the
Administrative Punishment under the Customs Law of the People's Republic
of China. If the cases are serious enough to violate laws, he shall be
prosecuted for the criminal responsibility according to law.

    Article 18  Any import administrative personnel who neglects his duty,
engages in malpractices for personal gains and abuses his powers, in
accordance with the severity of the case, shall be given a disciplinary
sanction by the supervisory department, if he violates laws, he shall be
prosecuted for the criminal responsibility according to law.

    Article 19  The State Planning Commission shall be responsible for the
interpretation of these Measures and organizing implementation.

    Article 20  Where the relevant provisions existing, before the
promulgation of these Measures, are in conflict with the provisions of
these Measures, the latter shall prevail. These Measures shall enter into
force on January 1, 1994.

    Appendix: Catalogue of General Goods Subject to the Import Quota
Administration:

    1. crude oil                    2. refined oil

    3. wool                         4. terylene

    5. poly acrylonitrile fibre     6. polyester chip

    7. timber                       8. plywood

    9. rubber (natural rubber, synthetic rubber)

    10. automobile tyres            11. sodium cyanide

    12. pesticides                  13. sugar

    14. chemical fertilizers        15. wood pulp

    16. tobacco and manufactured tobacco

    17. cigarette filter tips      

    18. diacetate fibre tow(used for cigarette)

    19. ABS resins                  20. cereals

    21. cotton                      22. vegetable oil

    23. spirits                     24. carbonate beverages

    25. colour photographic materials

    26. synthetic fibre cloth

    Note: The State Commission of Economic Relations and Trade shall be
responsible for determination, distribution and coordination of the
import quota for carbonate beverages.