REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON ARREST AND DETENTION
RULES GOVERNING OPERATION OF FOREIGN CIVIL AIRCRAFT
| Category | CIVIL AVIATION | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1979-02-23 | Effective Date | 1979-02-23 |
|
Rules Governing Operation of Foreign Civil Aircraft |
|---|
Attachment I
Attachment II
(Approved by the State Council and promulgated by the General
Administration of Civil Aviation of China on February 23, 1979)
Article 1 A foreign civil aircraft, when entering or leaving the
territory of the People’s Republic of China, operating or stopping-over
therein, shall comply with these rules.
Article 2 A foreign civil aircraft is permitted to enter or leave the
territory of the People’s Republic of China or make flights therein only in
accordance with the air transport agreement or other relevant documents
concluded between the Government of the People’s Republic of China and the
Government concerned, or by application through diplomatic channels to the
Government of the People’s Republic of China and after its acceptance has been
confirmed.
Article 3 A foreign civil aircraft and its crew and passengers, when
making flights or stopping-over in the territory of the People’s Republic
of China, shall comply with the laws of the People’s Republic of China and
its decrees and regulations relating to entry into, exit from and transit
through its territory.
Article 4 A foreign civil aircraft, when entering or leaving the
territory of the People’s Republic of China or making flights therein, shall
follow the instructions of the air traffic control (ATC) service of the
General Administration of Civil Aviation of China and observe all regulations
applicable to the flights.
Article 5 A foreign civil aircraft is permitted to operate scheduled
services and additional flights thereto in the territory of the People’s
Republic of China in accordance with the airtransport agreement concluded
between the Government of the People’s Republic of China and the Government
concerned on routes specified in the agreement.
A scheduled flight shall be conducted in accordance with a timetable,
which shall first be submitted to the General Administration of Civil Aviation
of China for approval by the airline designated by the Government of the other
party of the agreement.
The application for any additional flight shall be filed with the Civil
Aviation Administration of China by the airline designated by the
Government of the other party to the agreement at least five days before the
anticipated flight or within the time limit specified in the agreement. The
flight can be operated only after a permission thereof has been obtained.
Article 6 All non-scheduled flights other than scheduled flights and
additional flights operated by a foreign civil aircraft can be operated in
the territory of the People’s Republic of China only after a prior application
has been submitted and acceptance thereof has been confirmed.
The application for any non-scheduled flight shall be filed through
diplomatic channels at least ten days before the flight unless otherwise
specified in the bilateral air agreement.
Article 7 The application for any non-scheduled flight shall include the
following particulars:
(1) nationality of registration, owner and operator of the aircraft;
(2) purpose of flight;
(3) type, maximum all-up weight and maximum landing weight of the aircraft;
(4) identification marks (including nationality and registration marks) of
the aircraft;
(5) call signs of the radiotelephony and radiotelegraphy of the aircraft;
(6) frequency range to be used by the radio station on the aircraft;
(7) name, position and nationality of each crew member; number of
passengers and weight of cargo on board;
(8) approved weather minima of the pilot-in-command;
(9) itinerary, date and hours to be flown from the aerodrome of initial
departure to the aerodrome of destination, and the air route to be flown
within the territory of the People’s Republic of China;
(10) other information.
Article 8 A foreign civil aircraft operating non-scheduled flights within
the territory of the People’s Republic of China shall be escorted by crew
members (including a navigator and a radio operator) assigned by the General
Administration of Civil Aviation of China to guide the flight aboard the
aircraft unless otherwise stipulated in the clearance.
Article 9 A foreign civil aircraft operating in the territory of the
People’s Republic of China shall bear its nationality and registration marks.
A foreign civil aircraft without nationality and registration marks shall not
be permitted to make any flight within the territory of the People’s Republic
of China.
Article 10 A foreign civil aircraft operating in the territory of the
People’s Republic of China shall carry the following documents:
(1) its certificate of registration;
(2) its certificate of airworthiness;
(3) the professional licences or certificates for each member of the crew;
(4) its journey log book;
(5) the aircraft radio station licence;
(6) a general declaration;
(7) if it carries passengers, a list of their names and places of
embarkation and destination;
(8) if it carries cargo, a manifest of the cargo.
Article 11 A foreign civil aircraft shall fly within a specified air
corridor or over a specified entry/exit point when across the national
boundary of the People’s Republic of China. Deviation from the air corridor or
the entry/exit point is prohibited.
Article 12 Within a time limit of 15-20 minutes before flying across the
boundary of the People’s Republic of China either in entry or exit, the flight
crew of a foreign civil aircraft shall report the following to the relevant
ATC service of the General Administration of Civil Aviation of China:
– aircraft call sign;
– estimated time of crossing the national boundary;
– flight altitude; and
to obtain a clearance for flying across the national boundary in entry or
exit. Without such clearance the aircraft is not permitted to make entry into
or exit from the national boundary.
Article 13 A foreign civil aircraft, while flying across the border
of the People’s Republic of China or flying over a specified reporting point
in the territory of the People’s Republic of Chin shall report immediately
its position to the relevant ATC service of the General Administration of
Civil Aviation of China. Position report shall contain:
(1) aircraft call sign;
(2) position;
(3) time;
(4) flight altitude or flight level;
(5) estimated time of flying over the next position or estimated time of
arrival at the aerodrome of landing;
(6) other particulars requested by the ATC service or deemed necessary to
report by the air crew.
Article 14 When a foreign civil aircraft having flown across the national
boundary of the People’s Republic of China either in exit or in entry is
unable to continue its flight due to weather deterioration, malfunction of the
aircraft or any other special reasons, it is permitted to return by the
original route or air corridor. The flight crew shall, in the meantime,
report the following to the relevant ATC service of the General Administration
of Civil Aviation of China:
– aircraft call sign;
– reason for forced return;
– time beginning to return;
– flight altitude, and
– aerodrome for intended landing.
If no instructions have been received within the territory of the People’s
Republic of China from the relevant ATC service of the General Administration
of Civil Aviation of China, the return flight shall generally take a course of
opposite direction at a flight level immediately below the one originally
flown. In case this flight level is below the minimum safe altitude, the
return flight level shall then be immediately above the one originally flown.
Article 15 No foreign civil aircraft is allowed to fly across the
boundary of the People’s Republi of China or to operate therein without having
established radio contact with the relevant ATC service of the General
Administration of Civil Aviation of China.
Article 16 When a foreign civil aircraft making flight within the
territory of the People’s Republic of China interrupts its contact with the
aeronautical radio station of the relevant ATC service of the General
Administration of Civil Aviation of China, its crew shall manage to establish
contact with other aeronautical radio stations or other aircraft in flight to
relay aeronautical information. When such effort is of no avail, the flight
shall be conducted in accordance with the following procedures:
In visual meteorological conditions, the aircraft shall continue to
maintain its flight in VMC and land at a nearby aerodrome (i.e. the aerodrome
of departure, the intended aerodrome of landing or alternate aerodrome
previously designated by the General Administration of Civil Aviation of
China). The landing should be made in accordanc with procedures laid down in
Attachment I, “Symbols and Signals used as Means of Auxiliary Communications”,
to these Rules.
In instrument meteorological conditions or when a landing at a nearby
aerodrome cannot be made in VMC, the aircraft shall proceed strictly according
to the current flight plan and fly over the NDB of a designated aerodrome of
landing, commencing descent at the estimated time of arrival specified in the
flight plan. The landing should be made within thirty minutes after ETA in
accordance with the normal instrument approach procedure of the NDB.
In case of radio failure, if the aircraft transmitter is functioning, the
aircraft shall make blind transmission giving the pilot’s intention of
continued flight and other flight information. Blind transmission shall also
be made at predetermined time intervals or over the predetermined reporting
points. If, however, the aircraft receiver is functioning, the aircraft shall
keep a continuous listening watch for the instructions from the aeronautical
ground radio station.
Article 17 The visual meteorological conditions for an aircraft operating
within the territory of the People’s Republic of China are as follows:
– visibility: not less than 8km;
– vertical distance of aircraft from the cloud base: not less than 300m;
– horizontal distance of aircraft from cloud: not less than l.500m.
Article 18 The term “safe altitude” refers to the minimum flight altitude
which ensures an aircraft to avoid collision with surface obstacles.
Over mountainous region and plateau area the safe altitude along an air
route within the territory of the People’s Republic of China is 600m above the
highest elevation within 25km on each side of the centre line of the air
route; over areas other than mountainous region and plateau area, the safe
altitude is 400m above the highest elevation within 25km on each side of the
centre line of the air route.
Article 19 A foreign civil aircraft making flight within the territory of
the People’s Republic of China shall fly at a specified level or altitude.
The flight levels within the territory of the People’s Republic of China
are as follows:
0 through 179 degrees(T): from 600m to 6,000m, flight levels are at
intervals of 600m;
above 6,000m, they are at intervals of 2,000m.
180 through 359 degrees(T): from 900m to 5,700m, flight levels are at
intervals of 600m;
above 7,000m, flight levels are at intervals of 2,000m.
Flight levels are calculated on a specific pressure datum of 76Omm height
of mercury and courses are measured from true north at the initial and turning
point of an air route.
Article 20 The flight altitude or flight level for each flight conducted
by a foreign civil aircraft within the territory of the People’s Republic of
China is assigned by the relevant ATC service of the General Administration
of Civil Aviation of China.
When a foreign civil aircraft finds it necessary to change its altitude or
flight level during flight, no matter what weather conditions prevails, a
clearance must be obtained beforehand from the relevant ATC service of the
General Administration of Civil Aviation of China.
Article 21 A foreign civil aircraft making flight within the territory of
the People’s Republic of China shall follow a specified air route, deviation
from which is prohibited.
The maximum width of an air route within the territory of the People’s
Republic of China is 20km and the minimum width is 8km.
Artilce 22 If the pilot-in-command of a foreign civil aircraft flying
within the territory of the People’s Republic of China is unable to determine
his position, he shall report to the relevant ATC service of the General
Administration of Civil Aviation of China immediately.
When a foreign civil aircraft in flight deviates from a specified air
route, the relevant ATC service of the General Administration of Civil
Aviation of China shall do its possible to assist the aircraft in recovering
its original route. However, the ATC service of the General Administration of
Civil Aviation of China shall not be held responsible for whatever
consequences resulted therefrom.
Article 23 The following rules shall apply when aircraft approaching each
other in visual flight:
(1) when two aircraft are approaching head-on at the same level, each
shall alter its course to the right, maintaining a separation between them of
500 metres or more;
(2) when two aircraft are converging at the same altitude, the pilot who
sees from the cockpit the other aircraft on his left shall descend, while the
pilot who sees the other aircraft on his right shall ascend;
(3) overtaking of aircraft at the same level shall be made at a lateral
distance of 500 metres or more to the right side of the aircraft being
overtaken;
(4) individual aircraft shall take the initiative to give way to aircraft
in formation or aircraft engaged in towing objects; power-driven aircraft
shall take the initiative to give way to non-power-driven aircraft.
Article 24 A foreign civil aircraft, when flying within the territory of
the People’s Republic of China, shall maintain continuous guard for timely
radio contact with the relevant ATC service of the General Administration of
Civil Aviation of China in conformity with mode of transmission and
frequencies prescribed by the General Administration of Civil Aviation of
China.
For air/ground radio communications, the following rules shall be observed:
(1) ln radiotelegraphy the international Q code is to be used; in
radiotelephony, the Chinese language or any other language agreed upon by the
Government of the People’s Republic of China is to be used.
(2) For geographic localities, Chinese names in romanization, location
indicators, location designators, identifications of radio navigation aids or
geographical coordinates shall be used.
(3) Units of measurement: Distance in metres or kilometres: flight
altitude, elevation and height in metres; horizontal speed and wind speed in
air in kilometres per hour; vertical speed and surface wind speed in metres
per second; wind direction in degrees (true north as zero degree); visibility
in kilometres or metres; altimeter setting in millimeters of mercury or
millibars; temperature in degrees (C); weight in tons or kilograms; time in
hours and minutes (GMT on 24-hour basis beginning from zero hours).
Article 25 A foreign civil aircraft flying within the territory of the
People’s Republic of China shall land at an aerodrome designated by the
General Administration of Civil Aviation of China. Prior to landing, a
clearance shall be obtained from the ATC service at the designated aerodrome;
after landing, no take-off is allowed without a clearance.
The pilot-in-command of an aircraft on non-scheduled flight shall, after
landing, report to the ATC service at the aerodrome about the flight
conditions within the territory of the People’s Republic of China and shall
file an application for the ensuing flight.
Article 26 The air crew of a foreign civil aircraft shall have completed
their preflight preparation before departure. The pilot-in-command or his
representative shall submit a flight plan to the relevant ATC service of the
General Administration of Civil Aviation of China at least one hour before
the estimated time of departure.
When the departure of an aircraft is delayed more than 30 minutes, the
original flight plan shall be revised, or a new one be submitted.
Article 27 The aerodrome traffic pattern within the territory of the
People’s Republic of China is usually of left hand type with a height normally
between 300 and 500 metres. No aircraft is allowed to overtake another
aircraft of the same type or of similar speed when making flight in the
traffic pattern. A longitudinal separation of 2,000 metres or more shall be
maintained and the effect of wake turbulence shall also be taken into
consideration. Only with ATC permission is an aircraft of higher speed allowed
to overtake the slower one on or before down wind leg, and overtaking shall be
made on the outer side of the pattern with a lateral separation of not less
than 500 metres. Except in the case of emergency landing, no aircraft is
allowed to overtake any other aircraft on the inner side of the traffic
pattern.
Aircraft entering the traffic pattern shall obtain prior clearance from
the ATC service at the aerodrome, and entry is to be made along the direction
of the pattern and no crosswise interception is allowed.
Article 28 When a foreign civil aircraft is making a flight at a
terminal control area under visual meteorological conditions, the air crew
shall keep a vigilant watch against possible collision with other aircraft.
The pilot-in-command shall be held responsible if any collision occurs.
Article 29 When a foreign civil aircraft is taking off from or
landing at an aerodrome within the territory of the People’s Republic of
China, the following altimeter setting procedures are to be observed:
(1) At an aerodrome where a transition altitude and transition level are
stipulated:
Before take-off: The aircraft altimeter shall be set to the atmospheric
pressure at the aerodrome elevation; upon reaching the transition altitude the
altimeter shall be set to 760mm.
Prior to landing: When an aircraft is passing through a transition level,
the altimeter shall be set to the atmospheric pressure at the aerodrome
elevation.
(2) At an aerodrome where no transition altitude or transition level is
stipulated:
Before take-off: The aircraft altimeter shall be set to the atmospheric
pressure at the aerodrome elevation; after take-off when the aircraft has
reached in altitude of 600 metres, the altimeter shall be set to 760mm.
Before landing: When an aircraft has entered the boundary of a terminal
control area or so instructed by ATC controller, the altimeter shall be set
to the atmospheric pressure at the aerodrome elevation.
(3) At an aerodrome of high elevation:
Before take-off: When the aircraft altimeter cannot be set to the
atmospheric pressure at the aerodrome elevation, it will then be set to 760mm,
with the indicated altitude interpreted as zero altitude.
Before landing: When the aircraft altimeter cannot be set to the
atmospheric pressure at the aerodrome elevation, landing is to be made with
the assumed zero altitude notified by ATC controller.
Article 30 When taking off from or landing at an aerodrome within the
territory of the People’s Republic of China, a foreign civil aircraft shall
observe the aerodrome weather minima specified by the General Administration
of Civil Aviation of China. No take-off or landing is allowed when the weather
conditions are below the minima. If in the case of emergency, the
pilot-in-command decides to land below the minima, he shall be held fully
responsible for his decision and all the consequences arising therefrom.
When the weather is extremely poor, the ATC service at the aerodrome shall
close the aerodrome, prohibiting all take-offs and landings.
Article 31 In case of hazardous weather that will endanger the aircraft
en route or in the vicinity of an aerodrome of departure or landing within the
territory of the People’s Republic of China, the relevant ATC service of the
General Administration of Civil Aviation of China may advise the
pilot-in-command of the aircraft in the affected area to postpone the
take-off, turn back or make a diversion to an alternate as appropriate. The
pilot-in-command, however, has the right to make a final decision for which he
is likewise to be responsible.
Article 32 When a foreign civil aircraft making a flight within the
territory of the People’s Republic of China is found to be in serious
mechanical or other troubles which may endanger its flight safety, the
relevant ATC service of the General Administration of Civil Aviation of China
has the right to terminate its flight and shall in the meantime inform the
State of registry of the aircraft, which shall decide if the flight is to be
continued.
Article 33 A foreign civil aircraft flying within the territory of the
People’s Republic of China shall not be, in any circumstances, allowed to
enter the prohibited airspace delineated by the People’s Republic of China.
The General Administration of Civil Aviation of China shall take serious
measures vis-a-vis the pilot-in-command of the aircraft entering such
prohibited airspace and shall not be responsible for any consequences that
may produce to such aircraft.
Article 34 When the General Administration of Civil Aviation of China
declares, under special circumstances, the closure of a specific air route or
an aerodrome, the pilot-in-command of the foreign civil aircraft concerned
shall amend his flight plan according to the NOTAM(s) issued by the General
Administration of Civil Aviation of China or the instructions from ATC service
concerned.
Article 35 With the exception of parachuting in emergency, no foreign
civil aircraft when flying within the territory of the People’s Republic of
China shall be allowed to jettison articles, spray liquids or make use of
parachutes unless with the permission from the relevant ATC service of the
General Administration of Civil Aviation of China and under prescribed
conditions.
Article 36 When a foreign civil aircraft flying within the territory of
the People’s Republic of China finds itself in emergency where the safety of
crew and passengers are endangered and immediate assistance is required, the
crew of the aircraft shall immediately send a distress signal to ATC service
of the General Administration of Civil Aviation of China so that search and
rescue service can be provided.
The distress signal by radiotelephony is “MAYDAY” and by radiotelegraphy,
“SOS”. As soon as a distress signal is sent, the crew of the aircraft in
distress shall do their possible to report the call sign of the aircraft,
nature of distress, present position, altitude and heading of the aircraft,
as well as the intention of the pilot-in-command by emergency communication.
Emergency communication shall be effected on frequencies currently used by
local air/ground radio communications systems. If necessary, the frequencies
can be switched over to the emergency frequencies for further contact in
accordance with the instructions of the relevant ATC service of the General
Administration of Civil Aviation of China. Emergency frequencies are given in
the AIP.
Article 37 When the safety of a foreign civil aircraft and/or its
occupants on board are endangered in an emergency which does not warrant
immediate assistance, the air crew of the foreign civil aircraft flying within
the territory of the People’s Republic of China shall immediately send an
emergency signal to the relevant ATC service of the General Administration of
Civil Aviation of China. The emergency signal used in radiotelephony is”PAN”
and “XXX” in radiotelegraphy. As soon as emergency signal is sent, the crew of
the aircraft shall also report by radio the call sign of the aircraft, nature
of emergency, its present position, altitude and heading of the aircraft as
well as the intention of the pilot-in-command. Emergency communication shall
be effected on the designated air/ground radio frequency, which can be
switched over to emergency frequencies whenever necessary for further contact.
Emergency frequencies are given in AIP.
Article 38 A foreign civil aircraft entering or leaving the territory of
the People’s Republic of China shall land at or take off from a designated
airport with Customs, quarantine and frontier inspection offices.
Article 39 A foreign civil aircraft within the territory of the People’s
Republic of China (including all its necessary documents, crew members,
passengers and articles carried aboard) is subject to inspection by the
relevant agencies of the People’s Republic of China.
Article 40 A foreign civil aircraft within the territory of the People’s
Republic of China is prohibited from carrying explosives, inflamables,
firearms, ammunition and other prohibited articles as prescribed by the
Government of the People’s Republic of China.
Article 41 When any crew member or passenger on board the foreign
civil aircraft suffers from an acute disease during flight, the
pilot-in-command shall immediately report to the relevant ATC service for
arrangement of necessary assistance and medical service for the patient upon
landing.
Article 42 If a foreign civil aircraft flying within the territory of the
People’s Republic of China is found in violation of these Rules, the air
defence aircraft of the Chinese People’s Liberation Army on duty may force the
aircraft to land at a designated aerodrome. Non-compliance with the
instructions of the relevant ATC service of the General Administration of
Civil Aviation of China shall constitute a violation of these Rules.
Signals used by the air defence aircraft on duty intercepting a foreign
civil aircraft which is found in violation of these Rules and the signals
used by the intercepted aircraft will be those as prescribed in Attachment II.
A foreign civil aircraft which is forced to make a landing may continue
its flight only after a clearance has been obtained from the General
Administration of Civil Aviation of China.
Article 43 If the crew members or passengers of a foreign civil aircraft
entering or leaving the territory
TRIAL MEASURES CONCERNING THE PROMOTION OF EXPORTS BY IMPORTATION
| Category | FOREIGN TRADE | Organ of Promulgation | The Stade Council | Status of Effect | In Force |
| Date of Promulgation | 1979-03-26 | Effective Date | 1979-03-26 |
|
Trial Measures Concerning the Promotion of Exports by Importation |
|---|
(Approved and promulgated by the State Council on March 26, 1979)
In order to carry out the general task of the new period and to shift the
focus of the work on to the track of socialist modernization, foreign trade
should be greatly expanded and developed. Exports must be greatly increased
for the purpose of introducing new technology and importing equipment in
complete sets. All departments concerned and all regions should try their
best and use every possible means to develop the production of export
commodities; while tapping fully the domestic potentials for increasing the
sources of export commodities, raw materials and technology from abroad
should be utilized fully so as to bring into full play the domestic
production capacity, to devote major efforts to the promotion of exports
by importation and to expand export trade extensively and in a flexible way,
thus increasing foreign exchange earnings, and strengthening the country’s
paying capability in foreign exchange.
1. The scope of promoting exports through importation:
(1) to import materials for processing, including the importation of all
raw and semifinished materials or key raw and semifinished materials, and to
process them into finished products for export;
(2) to import main component parts or fittings, and to process and
assemble them into finished products for export; for example, to import
ships’ main engines or instruments for assembling vessels for export;
(3) to mainly use home-produced raw and semifinished materials, and import
auxiliary materials, then to process them into finished products for export;
and
(4) to import animal feeds, fertilizers, seeds, and breeding stocks, and
to use them in growing and breeding occupations, then to use the animal,
farm, and side-line products and local specialties for export; or to exchage
imported commodities for home-produced farm and side-line products and local
specialties, and to use them for export.
2. With respect to the raw, semifinished and auxiliary materials now
supplied domestically for the production of export commodities, such supplies
shall be guaranteed through the current supplying channel of materials and
shall not be reduced or cut; the materials which can be supplied domestically
shall not be imported or their importation shall be reduced. After the
implementation of the policy of promoting exports by imports, various
departments and areas, which are at present supplying commodities for export,
shall maintain a normal increase in export with the development of production.
3. The commodities manufactured under the policy of promoting exports by
importation, shall be marketable on the international market; profitable in
earning foreign exchange; up to the quality standards for export; and can be
manufactured domestically with a guarantee for the supply of fuels and power.
4. The amount of foreign exchange needed for carrying out the policy of
promoting exports by importation shall be included in the state plan for the
allocation of foreign exchange for imports, which shall be executed solely by
the Ministry of Foreign Trade. The specific business operations shall be
organized by the head offices of various national import and export
corporations. The bureaus of foreign trade of various provinces, autonomous
regions and municipalities directly under the Central Government shall be
responsible for supervising and examining the use of foreign exchange for
promoting exports by importation and the situation of business operations.
Where bank loans in foreign exchange are needed for commodities for promoting
exports by importation, the case shall be handled in accordance with the
measures for granting short-term foreign exchange loans. With respect to the
raw and semifinished materials, auxiliary materials and other materials
supplied by businessmen abroad for processing on the basis of materials
supplied, no matter letters of credit are mutually opened or not, so long as
the payment is not actually effected in foreign exchange, the aforesaid
materials shall not be counted as the materials used for promoting exports by
importation.
5. The commodities for promoting exports by importation shall, after
consultation made by the foreign trade departments with the relevant regions
or departments, be included in the state plans for production and for foreign
trade, and the following principles shall be implemented step by step;
separate plans; direct allocation of materials; production at designated
units and production quota fixed according to sales conditions. On the
condition that the fulfilment of the state plan is guaranteed, if there still
exist production potentials and products marketable on the international
market can be timely exported, then arrangements may be made for extra
exports for promoting exports by importation beyond the plans, and the
foreign trade bureaus of provinces, autonomous regions, or municipalities
directly under the Central Government shall be responsible for organizing
this matter; the foreign exchange needed for the production shall be alloted
specially by the Ministry of Foreign Trade.
6. The materials imported, and the products exported for promoting
exports by importation, shall not be included in the domestic scheme for
balanced distribution; imported materials shall, step by step, be allocated
directly by foreign trade companies to production units, and the products
shall be supplied directly by the production units to foreign trade companies
which shall purchase the products for export.
7. The production of products for promoting exports by importation shall
be arranged on the basis of good quality. For the manufacture of industrial
commodities, only factories with better production conditions shall be
designated specially for the said purpose. With respect to farm and side-line
products and local specialities, the production shall be developed in the
light of local conditions with tracts of land assigned for the purpose. The
aforesaid designation of factories and division of arable land shall remain
relatively stable.
8. In accordance with the principle of “integration of military production
and civil production” and “integration of production in peacetime and that in
wartime”. it is imperative to tap the productive potentials of the military
industrial enterprises, and to made full use of these military industrial
enterprises in promoting the production of export commodities for promoting
exports by importation. The prices of export commodities manufactured by the
military industrial enterprises shall be fixed according to the principle of
“same quality, same price” as the export commodities manufactured by civil
enterprises.
9. With respect to industrial commodities for promoting exports by
importation, the foreign trade company and the production or supplying unit
shall conclude and sign an economic contract or agreement, in which are
stipulated their respective obligations. In the event that either of the two
parties fails to execute the said contract or agreement, which consequently
has given rise to economic losses, the violator shall be liable for
compensating for the economic losses.
10. With respect to the farm and side-line products, livestock products
and local specialties for promoting exports by importation, while arrangements
are being made for the importation of animal feeds, fertilizers, seeds and
breeding stocks, the foreign trade company and the production or supplying
unit shall reach an agreement through consultation concerning the increase
of varieties and quantity, the specifications and quality of the commodities
they supply for export, as well as the time for delivery.
11. With respect to the industrial products for promoting exports by
importation, the foreign trade company and the production or supplying unit
shall reach an agreement through consultation concerning the rate of quality
products for export, the rating for the consumption of raw, semifinished, and
auxiliary materials, and the time for delivery. Those production enterprises,
whose rate of quality products for export is low, thus unable to guarantee the
quality of their products, and whose consumption of raw and semifinished
materials and production costs are high, are not eligible to be engaged in
“promoting exports by importation”.
12. With respect to the earnings of foreign exchange from commodities for
promoting exports by importation, business accounting shall be carried out
item by item, and the rate of foreign exchange earnings from exporting
finished goods should generally be controlled at the rate from 30% to 50% or
higher. The rate of foreign exchange earnings from products that call for more
sophisticated production technology shall be higher, while the rate of foreign
exchange earnings from products that are turned out with simpler production
technology shall be lower, but it shall not be lower than 30%.
13. Production enterprises (including state-run farms) that engage in
promoting exports by importation shall try their best to fulfil their
production tasks on time with the required quality and quantity and deliver
their goods on schedule. In the event that a Production enterprise undertakes
the task of manufacturing a particular item of export product in small
quantity, with complicated designs and varieties and a very short time limit
for delivery, and consequently suffers a loss in its normal profit earnings,
the foreign trade company shall make compensation for this by giving the
production enterprise a necessary subsidy not included in the calculated
purchasing prices after the foreign trade department and the relevant
departments have reached an agreement through consultation.
14. The making of prices in Renminbi within the country for the imported
goods and materials needed for promoting exports by importation shall, in
principle, be handled in accordance with the current measures for making
prices for imported goods. With respect to a few varieties of export goods
included in promoting exports by importation, which, as a consequence of the
high domestic appropriation prices of imported raw and auxiliary materials or
the high profit and tax rates, give rise to great losses in exporting such
finished goods, so long as the aforesaid varieties of goods sell well on the
international market and the rate of earnings in foreign exchange is
acceptable, they may, with approval, be imported through agency by the foreign
trade department and only service fees shall be charged or Customs
duty/consolidated industrial and commercial tax be exempted from. The products
supplied by production or supplying units for export shall calculate the
production costs in accordance with the actual appropriation price of the said
raw and auxiliary materials imported through the foreign trade channel.
15. With respect to the retention quota of foreign exchange earnings from
the commodities for promoting exports by importation, the case shall be
handled in accordance with the retention measures prescribed uniformly by the
State.
With respect to the business activities carried out for promoting exports
by importation, all regions and areas, all departments concerned, as well as
foreign trade companies and production enterprises, shall set up special
register and compile statistics for the said business activities, strengthen
the cost check-up and accounting, and guarantee the completeness of all
business vouchers and original records.
16. With respect to those production or supplying units engaged in
promoting exports by importation, which maintain better business performance
and higher foreign exchange earnings, higher pay, more bonuses and welfare
allowances may be allowed. As to those production or supplying units which
turn out poor quality products, embezzle imported goods and materials, and
plot to share among themselves the products, an investigation shall be made
into their illegal acts, and their cases shall be dealt with seriously.
17. To the production or supplying units engaged in promoting exports by
importation, the foreign trade companies should, at any time, provide the
aforesaid production or supplying units with specimens and samples of foreign
advanced products as well as relevant technical data, invite the personnel
from the production or supplying units to participate in business talks with
foreign companies or businessmen, organize, according to plan, study groups to
carry out investigations abroad, and invite foreign businessmen for technical
exchange.
18. All regions and areas, and all departments concerned, should
strengthen the leadership of the work concerning the production of export
commodities for promoting exports by importation, enthusiastically organize
the implementation, and solve the problems arising in production and supply of
goods. The production and supplying units and foreign trade departments should
sum up, in good time, their experience so as to push forward the steady
development of this work.?
CHINESE-FOREIGN JOINT VENTURES
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(Adopted by the Second Session of the Fifth National People’s Congress on July 1, 1979 and Promulgated on and Effective as of July Article 1. With a view to expanding international economic co-operation and technical exchange, the People’s Republic of China permits foreign Article 2. The Chinese Government protects, in accordance with the law, the investment of foreign joint venturers, the profits due them and their All the activities of a joint venture shall comply with the provisions of the laws, decrees and pertinent regulations of the People’s Article 3. The joint venture agreement, contract and articles of association signed by the parties to the venture shall be submitted to the Foreign Article 4. A joint venture shall take the form of a limited liability company. The proportion of the investment contributed by the foreign joint venturer(s) shall generally not be less than 25 per cent of the The parties to the venture shall share the profits, risks and losses in proportion to their respective contributions to the registered No assignment of the registered capital of a joint venturer shall be made without the consent of the other parties to the venture. Article 5. Each party to a joint venture may make its investment in cash, in kind or in industrial property rights, etc. The technology and the equipment that serve as a foreign joint venturer’s investment must be advanced technology and equipment that The investment of a Chinese joint venture may include the right to the use of a site provided for the joint venture during the period The various investments referred to above shall be specified in the joint venture contract and articles of association, and the value Article 6. A joint venture shall have a board of directors, which shall have its size and composition stipulated in the contract and the articles The board of directors is empowered, pursuant to the provisions of the articles of association of the joint venture, to discuss and The offices of president and vice-president(s) (or factory manager and deputy manager(s)) shall be assumed by the respective parties The employment and dismissal of the staff and workers of a joint venture shall be provided for in accordance with the law in the agreement Article 7. After payment out of the gross profit earned by the joint venture of the joint venture income tax, pursuant to the provisions of the A joint venture that possesses advanced technology by world standards may apply for a reduction of or exemption from income tax for A foreign joint venturer that reinvests in China its share of the net profit may apply for refund of a part of the income taxes already Article 8. A joint venture shall open an account with the Bank of China or a bank approved by the Bank of China. The pertinent foreign exchange transactions of a joint venture shall be conducted in accordance with the regulations on foreign exchange In its operating activities a joint venture may directly raise funds from foreign banks. The various kinds of a insurance coverage of joint venture shall be furnished by Chinese insurance companies. Article 9. The production and operating plans of a joint venture shall be filed with the departments in charge and shall be implemented through In its purchase of required raw and processed materials, fuels, parts and auxiliary equipment, etc., a joint venture should give first A joint venture is encouraged to market its products outside China. Export products may be distributed to foreign markets through Whenever necessary, a joint venture may establish branches outside China. Article 10. The net profit that a foreign joint venturer receives after fulfilling its obligations under the laws and the agreement and the contract, A foreign joint venturer shall be encouraged to deposit in the Bank of China foreign exchange that it is enpost_titled to remit abroad. Article 11. The wages, salaries and other legitimate income earned by the foreign staff and workers of a joint venture, after payment of the individual Article 12. The contract period of a joint venture may be decided through consultation by the parties to the venture according to its particular Article 13. Before the expiration of the joint venture contract period, in case of heavy losses, failure of a party to fulfill the obligations Article 14. Disputes arising between the parties to a joint venture that the board of directors cannot settle through consultation may be settled Article 15. This Law shall come into force on the day of its promulgation. The power to amend this Law is vested in the National People’s Congress. (The English translations are for reference only)
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