Laws of the People's Republic of China

Ministry of Commerce

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

No. 20

Provisional Administrative Measures on Textile Export has been adopted on the 15th ministerial meeting of Ministry of Commerce on Sep 16, 2005, which is now announced and takes effects as from Sep 22, 2005. Provisional Administrative Measures on Textile Export (temporary) (Ministry of Decree No.13, 2005) is abolished at the same time.

Minister of the Ministry of Commerce Bo Xilai

Sep 22, 2005

Provisional Administrative Measures on Textile Export

Article 1 .

In accordance with Foreign Trade Law of the People's Republic of China and Administrative License Law of the People's Republic of China, this Measures is stipulated for the purposes of speeding up the increasing transformation of national textile export and stabilizing export business order as well.

Article 2 .

Ministry of Commerce is responsible for the provisional administration on national textile export, and stipulating and adjusting List of Commodities under Provisional Administration of Textile Export (hereinafter referred to as "List of Commodities under Administration") together with General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine in line with work requirements.

Ministry of Commerce authorizes provinces, autonomous regions, municipalities, separately listed cities, Xinjiang Xinjiang Production and Construction Corps of CPLA, and administrative commercial departments of Harbin, Changchun, Shenyang, Nanjing, Chengdu, Guangzhou and Xi'an (hereinafter referred to as all local administrative commercial departments) to supervise the local provisional export permission administration.

General Administration of Quality Supervision, Inspection and Quarantine authorizes above departments to issue certificate of origin of provisional textile export in line with suggestions of Ministry of Commerce.

Article 3 .

Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine will release List of Commodities under Administration in form of announcement, the contents of which include products categories and relevant tariff codes, involved countries or regions, implementing time period and permitted quantity.

Article 4 .

Countries of exportation in the Measures refer to the final destination counties (regions), and the countries of processing trade exportation refer to the countries of exportation of real declaration. The Measures does not apply for transit trade.

Article 5 .

Administration on Provisional Textile Export Permission applies for the following Customs supervision:

Average trade, barter trade, importing materials and processing and exporting commodities of assembling trade, compensation trade, processing with imported materials, bonded factory and other trade.

Customs will not check license of textiles under List of Commodities under Administration from overseas to special supervision areas of Customs such as bonded areas, export processing areas and bonded places, however, Customs will go through approval formalities by license when above commodities are exported to countries or regions that require provisional textile export administration.

Article 6 .

All textiles listed in List of Commodities under Administration are under the provisional export management system. Ministry of Commerce authorize bureau of license affairs to administrate on total, and direct all local administrative commercial departments to issue Provisional Export License of Textile (hereinafter referred to as License). Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine will separately announce certificate-issuing organs, license sample and special seal.

Article 7 .

Before exporting commodities listed in List of Commodities under Administration, foreign trade business operators (including central enterprises, hereinafter to as "business operators") should go through examination and approval formalities of provisional export permission, and apply for license, with which customs declaration formalities can be finished.

Article 8 .

Commodities in List of Commodities under Administration includes:

(1)

. Textiles under the limit of relevant countries and regions;

(2)

. Textiles under the provisional quantity management in accordance with bilateral agreement.

Article 9 .

Stipendiary public bidding will be hold up for a certain percentage of provisional permitted export quantity, and the rest will be distributed in line achievements. In accordance with export achievements of relevant commodities, the permitted applying quantities of provisional export under item of customs export achievements (hereinafter referred to as permitted applying quantity) will be calculated in accordance with the following formulas.

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

Thereinto:

(1)

S refers to permitted applying quantity;

(2)

T refers to the total permitted quantity of national provisional export;

(3)

Q1 refers to export achievement to countries or regions limiting on textile export of China after integration; Q2 refer to export achievements to other countries or regions except those limiting on textile export of China after integration; Q3 refers to export achievements before integration during statistic period.

(4)

M1 refers to export achievements to countries or regions limiting on textile export of China of all national business operators after integrations; M2 refer to export achievements to other countries or regions except those limiting on textile export of China of all national business operators after integration; Q3 refers to export achievements of all national business operators before integration during statistic period.

(5)

a1 refers to export weighting after integration; a2 refers to export weighting before, interim a1=0.7, a2=0.3; in case the statistic period doesn't cover period before interpretation, a1=1, a2=0.

(6)

The minimum permitted applying quantity of all categories is 2004 piece (kg, square meter, and pair). In case the permitted applying quantity in line with the above formulas is less than the minimum quantity, the total permitted applying amount equals to zero.

(7)

The rest will be distributed in accordance with achievements.

Article 10 .

Ministry of Commerce confirms business operators' export achievement of relevant commodities in line with following principles:

(1)

. Statistic date of export under the 10-digit tariff code of Customs.

(2)

. The time period of statistic is 12 months before implementation of provisional export permission.

With consideration of special export situation of 2005, permitted applying amount of 2006 will be calculated with formula of Article 9 , the statistic period is from Jun 1, 2005 to May 31, 2005, and permitted applying amount during Jun 11, to Dec 31, 2005 is additionally added as well.

(3)

. Export achievement of average trade and processing trade will be calculated as 100 percent of export sum total of China Customs.

(4)

. Export achievement of enterprises in western areas will be calculated as 150 percent of export sum total of China Customs, and export achievement of enterprises in old industry base in central and northeast areas will be calculated as 130 percent of export sum total of China Customs.

(5)

. Export achievement of group corporations with branches will be calculated in line with real operators (in accordance with Customs enterprise code), the provisional export permission will be calculated to operators.

Article 11 .

Ministry of Commerce will confirm commodity categories and amount that business operators can apply for in accordance with distributing principle, and inform all local administrative commercial departments in written from or electronic form in 30 days after the issue of List of Commodities under Administration in a time or several times, and publish on website at the same time.

Article 12 .

Business operators with permitted applying quantity should apply to local administrative departments in permitted applying categories and quantity of Ministry of Commerce.

Article 13 .

All local administrative departments should submit applying reports and electronic data of local business operators within 15 days after issue of permitted applying quantity.

Ministry of Commerce will go through examination and approval formalities of all local administrative departments together within 15 days after receiving the reports and electronic data, and make known the distributed quantity of provisional export permission of different business operators in form of ministerial letters.

Article 14 .

The provisional permitted quantity of textile is conveyable. Local administrative departments are responsible for registration and technique management of alienation within the local areas, and Ministry of Commerce is responsible for the registration of trans-areas alienations, and China International Electronic Commercial Center will be responsible for the technique management. Operators accepting the permitted quantity must have been registered in administrative departments on industry and commerce, and administrative departments of foreign trade as well.

Article 15 .

The principles of "one license, one approval" and "one license for one customs declaration" will be carried out on provisional textile export permission that will take effect in 6 months, and will be abolished after expiration. In case holders of provisional textile export license have not exported during effective period, they may apply for prolonging formalities at the original certificate issuing organs, however, no more than 3 months can be prolonged, and new certificates are needed for prolonging and modification.

Article 16 .

In case the obtained permitted provisional export quantity cannot be completed used during effective time, business operators should submit those of the rest to Ministry of Commerce through local administrative commercial departments no later than 60 days before the end of permitted year.

Article 17 .

In case holders of provisional textile export licenses have not finished 80 percent of permitted applying amount in effective period and failed to submit the rest, Ministry of Commerce will deduct their distributing amount of next year proportionally.

Article 18 .

All submitted and un-submitted quantities will be reckoned in the rest amount of provisional textile export permission of the year, the total amount of which will be redistributed by Ministry of Commerce in accordance with relevant regulations of Article 9 . The distribution will be informed no later than 45 days before the end of the permitted year.

Article 19 .

When applying for licenses, business operators should fill in Application Form for License faithfully, and affix seals at the same time. Those who apply through Internet should fill related electronic forms and transmit to relevant certificate issuing organs.

Relevant export contracts (copy of the original) are also required be sent to certificate issuing organs.

Article 20 .

All certificate issuing organs should release licenses with in 3 days after receiving effective applications with correct contents and right forms in lime with approval documents and relevant electronic date of provisional export permission released by administrative commercial departments authorized by Ministry of Commerce.

Article 21 .

Business operators of commodities under provisional export permission administration should apply for certificate of origin to temporary certificate issuing organs authorized by General Administration of Quality Supervision, Inspection and Quarantine after transaction of provisional export permission licenses, by which certificate-issuing organs will release textile certificates of origin. Relevant contents such as amount and currency amount should be in coincidence.

Article 22 .

Business operators may go through formalities of export declaration by special seal for textile permission licenses, and go through the Customs at importing countries by electronic date and licenses in written form of Ministry of Commerce and certificates of origin issued by administrative certificate issuing organs.

Article 23 .

License with special seal for textile permission are needed for textile export formalities. For textiles belonging legal inspection exit, Declaration Form of Exit Commodities released by institutes of inspection and quarantine are needed as well.

Ministry of Commerce will carry out net working inspection together with General Administration of Customs. Relevant inspection mechanism and administrative measures will be announced for implementation separately.

Article 24 .

Provisional textile export license cannot be forged or altered. Any actions of Falsification of documents of permission and export license will be severely published in accordance with Foreign Law of the People's Republic of China, Custom Law of the People's Republic of China, Regulations on Commodity Import and Export of the People's Republic of China and Administrative Measures on Commodity Export License. Ministry of Commerce may cancel the obtained provisional textile export quantity at the same time.

Article 25 .

Export license are not required for export samples with amount of each batch no more than 50 pieces (suit, pair, kg or other unit, excluding units like dozen, dozen pairs, dozen suits and ton); however business operators may apply for license within applicable scope in case the importing countries require.

Article 26 .

Please refer to Administrative Measures on Commodity Export License for export affairs of exhibitions. In case the importing counties require, please refer to relevant regulations of Article 25 .

Article 27 .

In case commodities made in China are not exported in accordance with regulations of the Measures, and transited to countries and regions listed in List of Commodities under Administration through the third country or region, business operators cannot undertake business related to commodities under provisional export permission administration in one year as form relevant punishments take effect.

Unless there are separate regulations, Administrative Measures on Commodity Export License should be followed to issue license, carry out investigation on law enforcement agency, inspect certificate-issuing organs and give relevant punishment.

Article 29 .

The Measures is not applicable for textiles processed in mainland through OPA, and the origin of which is not china's mainland.

The Measurers is not applicable for distribution of rest amount of 2005 either.

Article 30 .

Ministry of Commerce is responsible for explanations for the Measures.

Article 31 .

The Measures takes effect as from its release, and Provisional Administrative Measures on Textile Export (temporary) is abolished at the same time.