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REGULATIONS GOVERNING EXPORT CONTROL OF MILITARY GOODS

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-10-22 Effective Date  1998-01-01  

Regulations of the People's Republic of China Governing Export Control of Military Goods



Chapter I  General Provisions
Chapter II  Military Goods Trading Companies
Chapter III  Military Goods Export Control
Chapter IV  Military Goods Export Order
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 234 of the State Council of the People's

Republic of China and the Central Military Commission of the People's Republic
of China on October 22, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to enhancing
unified export control of military goods and maintaining normal order
in the export of military goods.

    Article 2  Export of military goods referred to in these Regulations
means export for trade purposes of the equipment, special-purpose production
equipment and other materiel, technologies and related services to be used
for military purposes.

    Article 3  The State Control Commission for Military Goods Trade of the
People's Republic of China (hereinafter referred to as the State Control
Commission for Military Goods Trade) shall, under the leadership of the
State Council and the Central Military Commission, take charge of the work
of military goods export nationwide.

    The State Military Goods Trade Bureau of the People's Republic of China
(hereinafter referred to as the State Military Goods Trade Bureau), the
executive agency of the State Control Commission for Military Goods Trade,
shall exercise supervision and control over military goods export nationwide.

    Article 4  The State practises the uniform military goods export control
system, prohibits any act of military goods export to the detriment of
national interests and security and ensures normal order in military goods
export in accordance with law.

    Article 5  Military goods export shall abide by the following principles:

    (1) to be instrumental to the just self-defense capabilities of the
acceptor nation;

    (2) to be not detrimental to peace, security and stability in the region
concerned and the world; and

    (3) non-interference in the internal affairs of the acceptor nation.

    Article 6  In the case of different provisions in international treaties
the People's Republic of China has concluded and acceded to with these
Regulations, the provisions of the international treaties shall apply;
however, the articles about which the People's Republic of China has stated
its reservations are exceptions.
Chapter II  Military Goods Trading Companies

    Article 7  The military goods trading companies referred to in these
Regulations mean corporate enterprises engaging in military goods export
business operations with acquisition of the management right of military
goods export in accordance with law and within the verified business scope.

    Article 8  Military goods export management right shall be subject to
the examination and approval of the State Control Commission for Military
Goods Trade. Specific measures shall be formulated by the State Control
Commission for Military Goods Trade.

    Article 9  Military goods trading companies shall practise autonomous
management and be responsible for their profits and losses.

    Article 10  Military goods trading companies shall abide by the contract,
guarantee commodity quality and improve after-sales service.

    Article 11  Military goods trading companies shall, pursuant to the
provisions of the State Control Commission for Military Goods Trade,
truthfully present the documents and material relating to their business
operations in military goods export to the departments concerned. The
departments concerned shall keep the business secrets for the military
goods trading companies and safeguard the legitimate rights and interests
of the military goods trading companies.

    Article 12  Military goods trading companies may entrust approved
shipping agencies for military goods export in the handling of transportation
and related business for military goods export for them. Specific measures
shall be formulated by the State Control Commission for Military Goods Trade.
Chapter III  Military Goods Export Control

    Article 13  The State practises the licence system for military goods
export.

    Applications shall be filed for the examination and approval of the
items and contracts of military goods export pursuant to the provisions of
these Regulations. Military goods export shall be effected on the strength
of a military goods export licence.

    Article 14  Military goods export items shall be subject to the
examination and approval of the State Military Goods Trade Bureau or the
State Military Goods Trade Bureau in conjunction with the departments
concerned under the State Council and the Central Military Commission.

    Article 15  A military goods trading company may, upon approval of the
military goods export items, conclude a military goods export contract with
a foreign party. An application shall be filed with the State Military Goods
Trade Bureau for examination and approval upon conclusion of the military
goods export contract; the State Military Goods Trade Bureau shall, within
15 days from the date of receipt of the application, make a decision on
the approval or non-approval thereof. The military goods export contract
shall become established only upon approval.

    A military goods trading company shall, when filing an application for
the approval of the military goods export contract, enclose effective
testimonial documents of the acceptor nation.

    Article 16  Major military goods export items and contracts shall be
subject to the examination of the State Control Commission for Military
Goods Trade and submitted to the State Council and the Central Military
Commission for approval.

    Article 17  A military goods trading company shall, prior to military
goods export, apply to the State Military Goods Trade Bureau for a military
goods export licence on the strength of the approval document of the military
goods export contract; the State Military Goods Trade Bureau shall, within
five days from the receipt of the application, issue the military goods
export licence to the applicant found to conform to the provisions of the
military goods export contract.

    The Customs shall accept the declaration on the strength of the military
goods export licence and handle inspection and clearance pursuant to relevant
state provisions.

    Article 18  Measures for the examination and approval of items and
contracts of military goods export and measures for the issuance of military
goods export licences shall be formulated by the State Control Commission for
Military Goods Trade.

    Article 19  The State Military Goods Trade Bureau shall, in conjunction
with the departments concerned, issue a military goods export notice for the
export of military goods. The departments and local people's governments
concerned shall, on receipt of the military goods export notice and pursuant
to the relevant state provisions, conscientiously fulfil their duties to
ensure the safety, rapidity and accuracy in military goods export.
Chapter IV  Military Goods Export Order

    Article 20  No unit or organization shall engage in business operations
of military goods export without the acquisition of military goods export
management right.

    The State prohibits any individual from engaging in business operations of
military goods export.

    Article 21  Military goods trading companies shall, in business operations
of military goods export, abide by the provisions of laws and administrative
regulations and maintain the normal order in military goods export.

    Article 22  No military goods trading company shall, in business
operations of military goods export, commit the following acts:

    (1) endangering national security or public interest of society;

    (2) squeezing its competitive opponent out with unfair means of
competition;

    (3) infringing on intellectual property rights under the protection of the
laws of the People's Republic of China;

    (4) forging, altering, acquiring through fraud or transferring such
documents and licence as the approval document for military goods export
items, the approval document for contract, the licence and the effective
testimonial document of the acceptor nation;

    (5) operating beyond the verified business scope; and

    (6) other acts in violation of the provisions of laws and administrative
regulations.

    Article 23  The State Military Goods Trade Bureau may, when it deems
necessary or at the request of a military goods trading company, deal with
acts of hindering the normal order in military goods export.
Chapter V  Legal Liability

    Article 24  Any military goods trading company in violation of the
provisions of Article 11 of these Regulations shall be ordered by the State
Military Goods Trade Bureau to make a rectification within a specified period
and administered a warning; any military goods trading company that fails to
make a rectification on expiry of the specified period shall be revoked of
its management right of military goods export by the State Military Goods
Trade Bureau which shall report the case to the State Control Commission
for Military Goods Trade.

    Article 25  Any military goods trading company in violation of the
provisions of Article 21 and Article 22 of these Regulations shall be
penalized by the competent departments concerned pursuant to the provisions
of relevant laws and administrative regulations and may be revoked of its
management right of military goods export by the State Military Goods Trade
Bureau which shall report the case to the State Control Commission for
Military Goods Trade.

    Article 26  The State Military Goods Trade Bureau shall ban the illegal
operations in violation of the provisions of Article 20 of these Regulations,
and the competent departments concerned of the State shall, pursuant to the
provisions of relevant laws and administrative regulations, impose a penalty.

    Article 27  Criminal liability shall be investigated in accordance with
law for violation of the provisions of these Regulations that constitutes
a crime.

    Article 28  A military goods trading company which has objections to
the penalty decision revoking its management right of military goods export
may, within 15 days from the date of receipt of the penalty notice, apply
to the State Control Commission for Military Goods Trade for reconsideration.
The State Control Commission for Military Goods Trade shall, within 15 days
from the date of receipt of the application for reconsideration, make a
reconsideration decision which shall be the final decision.

    Article 29  Functionaries of state military goods trade administration
whose negligence of duty, indulgence in self-seeking misconduct, abuse of
power or acceptance or extortion of other people's property by taking
advantage of their positions constitutes a crime shall be investigated
of the criminal liability in accordance with law; where a crime has not been
constituted, administrative sanctions shall be imposed in accordance with law.
Chapter VI  Supplementary Provisions

    Article 30  These Regulations shall apply to the export of police
equipment.

    Article 31  These Regulations shall enter into force as of January 1,
1998.



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