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INTERIM MEASURES FOR THE ADMINISTRATION OF THE MANAGEMENT OF IMPORT GOODS

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-07-19 Effective Date  1994-07-01  

Interim Measures for the Administration of the Management of Import Goods



Chapter I  General Provisions
Chapter II  The Administrative Principle of the Management
Chapter III  Coordination and Supervision
Chapter IV  Supplementary Provisions

(Approved by the State Council on June 13, 1994, promulgated by

Decree No.3 of the Ministry of Foreign Trade and Economic Cooperation and
the State Planning Commission on July 19, 1994)
Chapter I  General Provisions

    Article 1  These Measures are formulated in order to meet the needs
of the socialist market economic growth, actively organize import of the
goods and materials needed for the domestic economy construction and
maintain the normal order of the import management.

    Article 2  Various enterprises, institutions, organs and organizations
(hereinafter referred to as the import units) that import goods shall
handle the business in accordance with these Measures.
Chapter II  The Administrative Principle of the Management

    Article 3  The state shall execute the administration of the
management of the import goods with a catalogue. Few stable raw
materials goods which relate to the national economy and the people's
livelihood, and are capable of international market monopoly and are of
sensitive price, shall be listed in the catalogue and be subject to the
administration of verifying and confirming companies capable of
management, that is, they shall be handled by the foreign trade companies
(which include specialized foreign trade companies, comprehensive foreign
trade companies, industry and trade companies, combined foreign trade
companies and commercial and material supply companies vested with the
import and export operating right) which are verified and confirmed by
the state to be capable of management and be of good services. The goods
which are not listed in the catalogue shall be handled by various kinds of
enterprises vested with the import and export operating right on their own
in accordance with the scope of their business operations.

    Article 4  At present, the state verifies and confirms companies to
handle twelve kinds of goods (the catalogue is attached as appendix).
In accordance with the change of domestic market and the administrative
status of the management of import goods, the Ministry of Foreign Trade
and Economic Cooperation (hereinafter refereed to as the MOFTEC) shall,
in conjunction with the relevant departments, submit a report with its
opinions concerning the adjustment of the catalogue of goods subject to
the management of the verified and confirmed companies to the State
Council for promulgation and going into effect upon approval.

    Article 5  With respect to every kind of imported goods subject to
the management of the companies verified and confirmed by the state with
the exception of wheat, crude oil, refined oil and tobacco, the commissions
(departments, bureaus) of foreign economic relations and trade and in
the provinces, autonomous regions, municipalities directly under the
Central Government and cities under separate planning shall, in
accordance with the managerial capacity and service quality of foreign
trade companies of their own localities, recommend one or two foreign
trade companies of their own localities to handle the goods which shall
be verified, confirmed and published by the MOFTEC.

    Article 6  The import goods subject to the management of the foreign
trade companies under various departments, which are verified and
confirmed by the state, shall be verified, confirmed and published by
the MOFTEC.

    Article 7  When every import units import goods subject to the
management of the companies verified and confirmed by the state, they may
trust on their own the foreign trade companies vested with the right to
handle the said goods by the MOFTEC with the importation. The goods
imported by the state (which include the goods subject to the management
of the verified and confirmed companies) shall be handled by the
companies arranged by the MOFTEC.

    Article 8  With respect to the import goods subject to the management
of the companies verified and confirmed by the state, it is encouraged
that the main units using import goods shall establish joint-equity
companies with the relevant foreign trade companies, give full play to
respective superiority, and make the management well jointly.
Chapter III  Coordination and Supervision

    Article 9  With respect to the import goods subject to the management
of the companies verified and confirmed by the state, the relevant import
and export chambers of commerce shall establish specialized branches of
chambers of goods which shall be responsible for coordinating and
supervising the managerial order and price of the import goods.

    Article 10  The foreign trade companies, which are verified and
approved to handle the import goods subject to the management of the
companies verified and confirmed by the state, shall join the relevant
branches of chambers of goods, obey the coordination and supervision of
the import and export chambers of commerce, and shall be issued member
certificates of the specialized branches of goods by the relevant import
and export chambers of commerce.

    Article 11  When the import and export chambers of commerce do the
work of coordination and supervision, they shall implement the principle
of "self-administration, self-restraint, self-coordination", actively
organize price coordination, supervise the managerial order and provide
service for their members.

    Article 12 Where the quantity of a certain item of goods is increased
substantially and rapidly or the operation of importation is out of
regular order which results in serious injury to domestic production,
the MOFTEC may take temporary measures such as re-verifying and re-
confirming the managerial qualifications of the companies, to strengthen
micro-administration of the managerial order of import goods.
Chapter IV  Supplementary Provisions

    Article 13  The administration of the import management of enterprises
with foreign investments, shall be executed in accordance with the
existing laws and regulations.

    Article 14  With respect to the importation because of utilizing the
international foreign exchange loans, the administration of the management
of the importation shall be executed in accordance with the relevant loan
agreements.

    Article 15  The administration of the import management concerning
barter trade and importing materials for processing shall still be executed
in accordance with the existing provisions.

    Article 16  The import units in special economic zones, which import
goods for self-use, shall still import by themselves within the business
scope of the import and export enterprises.

    Article 17  The MOFTEC shall be responsible for the interpretation of
these Measures and organizing implementation.

    Article 18  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 July 1, 1994.

    Appendix: Catalogue of Import Goods Subject to the Management of
Companies Verified and Confirmed by the State:

    1) wheat;

    2) crude oil;

    3) refined oil, which denotes gasoline, kerosene and diesel oil;

    4) chemical fertilizers, which denote nitrogenous fertilizers,
phosphate fertilizers, potash fertilizers and compound fertilizers;

    5) rubber, which denotes natural rubber;

    6) steel products, which denote plate steel, wire steel, section steel,
tube and pipe steel, and tinned sheet;

    7) timber, which denotes log;

    8) plywood, which excludes panels, veneer sheets, and surface covered
sheets;

    9) wool, which denotes raw wool, scoured wool and wool tops;

    10) ploy acrylonitrile fibre, which denotes ploy acrylonitrile short
fibre, tops, and tow;

    11) cotton, which denotes raw cotton;

    12) tobacco and manufactured tobacco.

    Notes:

    1. At present, wheat is only verified and confirmed to be handled by
China National Cereals Oils and Foodstuffs Import and Export Cooperation
and China National Liangfeng Grain Import and Export Cooperation; crude
oil and refined oil is verified and confirmed temporarily to be handled
by China National Chemicals Import and Export Cooperation, China
International Oils and Chemicals Combination Cooperation and China
National Combination Oils Cooperation; tobacco and manufactured tobacco
is verified and confirmed to be handled by China National Tobacco Import
and Export Cooperation.

    2. If a company is engaged in importing the above mentioned twelve
kinds of goods which are subject to the state's administration of import
quota, it shall apply for import licence in accordance with the relevant
provisions; if the aforesaid goods are subject to the state's
administration of automatic registration, the company shall apply for the
register certificate in accordance with the relevant provisions. The
Customs shall give clearance against the licence or the register
certificate.



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