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(Adopted
at the Seventh Meeting of the Standing Committee of the Eighth National
People's Congress on May 12, 1994, promulgated by Order No.22 of
the President of the People's Republic of China on May 12, 1994,
and effective as of July 1, 1994)
Chapter
I General Provisions
Article
1 This Law is formulated with a view to developing foreign trade,
maintaining the order of foreign trade and promoting a sound development
of the socialist market economy.
Article
2 Foreign trade as used in this Law refers to the import and export
of goods and technologies, and the international service trade.
Article
3 The competent department in charge of foreign economic relations
and trade under the State Council shall be in charge of the work
of foreign trade throughout the country in accordance with this
Law.
Article
4 The State shall institute a uniform system of foreign trade and
safeguard a fair and free foreign trade order in accordance with
law. The State shall encourage the development of foreign trade,
bring into play the initiative of localities and ensure the independence
of management of foreign trade operators.
Article
5 The People's Republic of China promotes and develops trade relations
with other countries and regions in accordance with the principle
of equality and mutual benefit.
Article
6 The People's Republic of China in foreign trade grants the most
favoured nation treatment and the national treatment to other signatories
or acceding parties on the basis of the international treaties and
agreements that China has signed or acceded to, or to the other
party under the principle of mutual benefit and reciprocity.
Article
7 Where a country or a region adopts prohibitive, restrictive or
other similar measures that are discriminative in nature against
the People's Republic of China in trade, the People's Republic of
China may, in the light of the actual conditions, adopt corresponding
counter-measures against such a country or region.
Chapter
II Foreign Trade Operators
Article
8 Foreign trade operators as used in this Law refer to the legal
persons or other organizations engaged in the operative activities
of foreign trade in accordance with the provisions of this Law.
Article
9 Foreign trade operators handling the import and export of goods
or technologies must satisfy the following conditions, and obtain
the permission from the competent department in charge of foreign
economic relations and trade under the State Council:
(1)
having their own names and organizational structures;
(2)
having clear-cut business scopes of foreign trade;
(3)
having Premises, funds and professionals needed for the foreign
trade business they are engaged in;
(4)
having fulfilled the required performance of having necessary sources
of goods for import and export in the case of entrusting others
to handle imports and exports; and
(5)
other conditions provided by laws and administrative rules and regulations.
The
measures for the implementation of the provisions of the preceding
paragraph shall be formulated by the State Council.
Enterprises
with foreign investment shall be free from obtaining the permission
as stipulated in the first paragraph of this Article, if they, in
accordance with the laws and administrative rules and regulations
governing enterprises with foreign investment, import non-productive
goods for their own uses, or necessary equipment, raw materials
and other goods for their production, or export their own products.
Article
10 The establishment of the international service trading enterprises
and organizations and their business activities shall comply with
the provisions of this Law and other relevant laws and administrative
rules and regulations.
Article
11 Foreign trade operators shall in accordance with law enjoy full
autonomy in their management and shall be responsible for their
own profits and losses.
Article
12 Foreign trade operators shall, in conducting foreign trade activities,
honor contracts, ensure product quality and improve after-sale service.
Article
13 Organizations or individuals without permits for foreign trade
business may entrust foreign trade operators within China to conduct
foreign trade businesses on their behalf within the business scope
of the trustees. The foreign trade operators who are entrusted to
conduct foreign trade business shall truthfully provide the trustors
with market information, commodity prices, information about clients
and other relevant business information. The trustors and trustees
shall conclude a trusteeship contract in which the rights and obligations
of both parties shall be specified.
Article
14 Foreign trade operators shall, in accordance with the provisions
of the competent department in charge of foreign economic relations
and trade under the State Council, present documents and material
pertinent to their foreign trade business to the relevant departments.
The departments concerned shall keep business secrets for such providers.
Chapter
III Import and Export of Goods and Technologies
Article
15 The State shall allow free import and export of goods and technologies,
however, except as otherwise provided for in laws or administrative
rules and regulations.
Article
16 The State may restrict the import and export of the goods and
technologies under any of the following circumstance:
(1)
for safeguarding national security or public interests, there is
need to restrict imports or exports;
(2)
due to short supply on domestic market or for effective conservation
of exhaustible domestic resources, there is need to restrict exports;
(3)
due to the limited market capacity in the country or region of destination,
there is need to restrict exports;
(4)
for establishing or speeding up the establishment of a particular
domestic industry, there is need to restrict imports;
(5)
for any form of agricultural, animal husbandry or fishery products,
there is necessity to restrict imports;
(6)
for safeguarding the State international financial position and
ensuring the balance of international receipts and payments, there
is need to restrict imports; or
(7)
under the international treaties or agreements signed or acceded
to by the People's Republic of China, there is need to restrict
imports or exports.
Article
17 The State shall prohibit the import or export of the goods and
technologies falling into any of the following categories:
(1)
those that endanger national security or public interests;
(2)
those whose import or export must be prohibited for the protection
of human life or health;
(3)
those that impair ecological environment; or
(4)
under the international treaties or agreements signed or acceded
to by the People's Republic of China, the prohibition of import
or export is required.
Article
18 The competent department in charge of foreign economic relations
and trade under the State Council shall, in collaboration with other
relevant departments under the State Council, formulate, readjust
and publicize the catalogue of goods and technologies whose import
or export is prohibited or restricted according to the provisions
in Articles 16 and 17 of this Law. The competent department in charge
of foreign economic relations and trade under the State Council
may, independently or jointly with relevant departments under the
State Council, subject to the approval of the State Council and
within the scope stipulated in Articles 16 and 17 of this Law, specially
decide to restrict or prohibit the import or export of specific
goods or technologies which are not included in the catalogues specified
in the preceding paragraph.
Article
19 Goods under import or export restrictions shall be managed by
distributing quotas or issuing licences; while technologies under
import or export restrictions shall be managed by issuing licences.
Goods and technologies managed by distributing quotas or issuing
licences may be imported or exported, as prescribed by the State
Council, only with the permission of the competent department in
charge of foreign economic relations and trade under the State Council
or together with relevant departments under the State Council.
Article
20 Quotas for import and export of goods shall be distributed by
the competent department in charge of foreign economic relations
and trade under the State Council or by relevant departments under
the State Council within their respective functions and responsibilities
on the principles of efficiency, impartiality, transparency and
fair competition and according to the performance and ability of
the applicants in import or export and other conditions. Ways and
measures for the distribution of quotas shall be prescribed by the
State Council.
Article
21 In respect of cultural relics, wild animals and plants and their
products as well as other goods and merchandise, if their imports
of exports are prohibited or restricted under other laws or administrative
rules and regulations, the provisions of such laws or administrative
rules and regulations shall be applied.
Chapter
IV International Service Trade
Article
22 The State shall promote the progressive development of international
service trade.
Article
23 The People's Republic of China shall, in international service
trade, grant other signatories and acceding parties market access
and national treatment according to the commitments made in the
international treaties or agreements it has signed or acceded to.
Article
24 The State may restrict international service trade on the basis
of any of the following considerations:
(1)
for safeguarding national security or public interests;
(2)
for protecting ecological environment;
(3)
for establishing or speeding up the establishment of a particular
domestic service industry;
(4)
for ensuring the State balance of international receipts and payments;
or
(5)
other circumstances calling for such restrictions as provided by
laws or administrative rules and regulations.
Article
25 The State shall prohibit the international service trade falling
into any of the following categories:
(1)
that endangering national security or public interests;
(2)
that running counter to the international commitments undertaken
by the People's Republic of China; or
(3)
that prohibited by laws and administrative rules and regulations.
Article
26 The competent department in charge of foreign economic relations
and trade under the State Council and relevant departments under
the State Council shall conduct management of international service
trade according to this Law and relevant laws and administrative
rules and regulations.
Chapter
V Order of Foreign Trade
Article
27 Foreign trade operators shall, in their foreign trade activities,
conduct business operations according to law, carry out fair competition
and shall not commit any of the following acts:
(1)
counterfeiting, altering, buying or selling certificates of origin,
or licenses of import and export;
(2)
infringing upon the intellectual property rights protected by laws
of the People's Republic of China;
(3)
pushing out competitors by means of unfair competition;
(4)
fraudulently obtaining tax refund for exports from the State; or
(5)
other acts violating laws or administrative rules and regulations.
Article
28 Foreign trade operators shall, in their foreign trade activities,
use, or settle their accounts of, foreign currency in accordance
with relevant regulations of the State.
Article
29 Where due to the increase of imported products, domestic producers
of like products or producers manufacturing products directly competitive
to the imported ones suffer material damage or threat of material
damage, the State may take necessary protective measures to eliminate
or reduce such damage or threat of damage.
Article
30 Where products are imported at prices lower than its normal value,
thereby causing substantial damage or threat of substantial damage
to the relevant domestic industries already established, or substantially
hindering the establishment of relevant domestic industries, the
State may take necessary measures to eliminate or reduce such damage
or threat of damage or hindrance.
Article
31 Where imported products receive subsidies of any form directly
or indirectly from countries of exportation, thus causing substantial
damage or threat of substantial damage to relevant domestic industries
already established, or substantially hindering the establishment
of relevant domestic industries, the State may take necessary measures
to eliminate or reduce such damage or threat of damage or hindrance.
Article
32 When circumstances specified in Article 29, 30 or 31 occur, departments
or organs designated by the State Council shall investigate and
handle them according to laws or administrative rules and regulations.
Chapter
VI Promotion of Foreign Trade
Article
33 The State shall, in light of the needs for the development of
foreign trade, set up and improve financial institutions in service
of foreign trade and establish development fund and risk fund for
foreign trade.
Article
34 The State shall adopt promotional measures to develop foreign
trade such as providing credits for import and export and refunding
taxes on exports.
Article
35 Foreign trade operators may set up and join import-export chambers
according to law. Import-export chambers shall observe laws and
administrative rules and regulations, coordinate and direct foreign
trade activities of their members according to the articles of associations,
provide consultant services, report suggestions of their members
concerning the promotion of foreign trade to relevant governmental
departments and actively conduct activities for the promotion of
foreign trade.
Article
36 China's international trade promotion organizations shall, according
to the articles of associations, carry out foreign liaison activities,
hold exhibitions, provide information and consultant services as
well as other activities for the promotion of foreign trade.
Article
37 The State shall support and promote national autonomous regions
and economically under-developed areas to develop foreign trade.
Chapter
VII Legal Liability
Article
38 Whoever smuggles goods whose import and export are prohibited
or restricted, if such an act constitutes a crime, shall be investigated
for criminal responsibility according to the Supplementary Provisions
for the Punishment of the Crime of Smuggling. If such an act does
not constitute a crime, the offender shall be punished according
to the Customs Law. The competent department in charge of foreign
economic relations and trade under the State Council may concurrently
revoke their business licenses for foreign trade.
Article
39 Whoever counterfeits or alters certificates of origin or licenses
of import and export shall be investigated for criminal responsibility
according to the provisions of Article 167 of the Criminal Law.
Whoever buys or sells the certificates of origin for import and
export or licenses of import and export, or buys or sells counterfeited
or altered certificates of origin, or licenses of import and export
shall be investigated for criminal responsibility by applying mutatis
mutandis the provisions of Article 167 of the Criminal Law. Where
a unit commits the crimes specified in the preceding paragraph,
it shall be punished with a fine. Persons directly in charge and
persons who are held directly responsible in the unit shall be investigated
for criminal responsibility according to or by applying mutatis
mutandis the provisions of Article 167 of the Criminal Law. The
competent department in charge of foreign economic relations and
trade under the State Council may concurrently revoke their business
licenses for conducting foreign trade. Whoever knowingly uses counterfeited
or altered licenses of import and export to import or export goods
shall be punished according to the provisions of Article 38 of this
Law.
Article
40 Whoever in violation of this Law imports or exports technologies
whose import and export are prohibited or restricted, if such an
act constitutes a crime, shall be investigated for criminal responsibility
by applying mutatis mutandis the Supplementary Provisions for the
Punishment of the Crime of Smuggling.
Article
41 The State functionaries engaged in foreign trade who neglect
their duties or practise irregularities for personal gains or abuse
their power shall be investigated for criminal responsibility according
to law if their acts constitute a crime. If their acts do not constitute
a crime, they shall be given administrative sanctions. The State
functionaries engaged in foreign trade who by taking advantage of
their office extort other persons' money or goods or illegally accept
other persons' money or goods so as to seek benefits for such persons
shall be investigated for criminal responsibility according to the
Supplementary Provisions for the Punishment of the Crime of Corruption
and Bribery if their acts constitute a crime. If their acts do not
constitute a crime, they shall be given administrative sanctions.
Chapter
VIII Supplementary Provisions
Article
42 The State shall adopt flexible measures and provide favourable
treatment and convenience to the trade between its frontier towns
and the frontier towns of bordering countries as well as fairs among
the inhabitants of border areas. Specific measures shall be formulated
by the State Council.
Article
43 This Law shall not apply to the separate customs areas in the
People's Republic of China.
Article
44 This Law shall go into effect on July 1, 1994.
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