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1993

INTERIM PROVISIONS OF THE TIBET AUTONOMOUS REGION CONCERNING THE PROMOTION OF TRADE WITH NEIGHBOURING COUNTRIES

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1987-03-24 Effective Date  1987-03-24  


Interim Provisions of the Tibet Autonomous Region Concerning the Promotion of Trade With Neighbouring Countries



(Approved by the State Council on March 24, 1987 and promulgated by the

People’s Government of the Tibet Autonomous Region)

    Article 1  These Provisions are formulated to further develop trade between
this Region and neighbouring countries, to invigorate economy and improve
administration.

    Article 2  These Provisions shall apply to the state-run enterprises,
collective enterprises, and individual industrial and commercial operators of
this Region that handle import and export business with neighbouring countries
(hereinafter referred to as “the importers and exporters”), and also apply to
nationals of neighbouring countries who have obtained the permanent residence
right in this Region (hereinafter referred to as “the foreign resident
importers and exporters”).

    Article 3  The state-run enterprises, collective enterprises and individual
industrial and commercial operators of this Region may carry on import and
export business, within the approved scope of business operation, with
neighbouring countries after they have obtained the approval from the
Department of Foreign Economic Relations and Trade of the Tibet Autonomous
Region (hereinafter referred to as “the Region Foreign Trade Department”), and
have gone through the procedures of registration with the administrative
department for industry and commerce and obtained the business license for
carrying on import and export business.

    Foreign nationals of neighbouring countries with the permanent residence
right in this Region may carry on import and export business with neighbouring
countries after obtaining the consent from the Region’s administrative
department for foreign nationals through verification, and the approval from
the Region Foreign Trade Department, as well as the business license for
carrying on import and export business by registering with the administrative
department for industry and commerce.

    Article 4  The importers and exporters, and the foreign resident importers
and exporters, shall present the relevant approval documents and business
licenses to the Customs Office for registration and obtaining the certificate
for declarant, which shall be presented for making declarations at the Customs
Office.

    Article 5  Import and export business with neighbouring countries shall be
conducted in accordance with the following principles: finding the sources of
goods and the markets by the importers and exporters themselves; holding
business talks of their own accord; acquiring balance of accounts in their own
ways; assuming sole responsibility for their gains and losses; and in the forms
of barter transaction and settlement of exchange.

    Article 6  With respect to trade between this Region and neighbouring
countries, the imports and the exports fall respectively into three categories
for administration:

    With respect to the goods that fall under the administration by import and
export licenses, every importer and exporter, or every foreign resident
importer and exporter, shall, in accordance with the annual import and export
plan, make an application to the Region Foreign Trade Department, which is
authorized by the Ministry of Foreign Economic Relations and Trade, for the
import and export license. The Customs Office shall give clearance after
verifying the license.

    With respect to the goods that do not fall under the administration by
import and export licenses, every importer and exporter, or every foreign
resident importer and exporter, shall carry out the business operations within
the annual plan approved by the Region People’s Government. The Customs Office
shall give clearance after verifying the relevant vouchers and documents, and
the import and export goods Customs declaration forms filled out by the
importers and exporters, or by the foreign resident importers and exporters,
who have obtained the right to carry on import and export trade with
neighbouring countries.

    With respect to those goods that are forbidden to import or export, the
importers and exporters, or the foreign resident importers and exporters, may
not transact them.

    Article 7  The operational activities of the importers and exporters, or of the foreign resident importers and exporters, who handle
trade with
neighbouring countries, must be subject to the administration by the Region
Foreign Trade Department in such aspects as planning, statistics, and pricing.
The operational activities in the market within the Region must be subject to
the administration of such relevant departments as the administrative
department for industry and commerce, taxes must be paid according to the
regulations, and no illegal operational activities are allowed.

    Article 8  The importers and exporters, or the foreign resident importers
and exporters, who carry on trade with neighbouring countries, shall abide by
the pertinent provisions of the state on the control of foreign exchange.

    Article 9  The imports and exports related to trade with neighbouring
countries must enter or exit at the designated opening ports, and be subject to
the examination and inspection by the Customs Office, the border inspection
station, the import and export commodities inspection agency, the public health
quarantine agency and the animals and plants quarantine agency, and Customs
duties, consolidated industrial and commercial tax, individual income
regulatory tax, and inspection fees must be paid according to the regulations.

    Article 10  All commodities imported from neighbouring countries are not
permitted to be sold outside this Region. Under special circumstances, when
imported commodities are absolutely necessary to be sold outside this Region,
the cases must be submitted to the Region Foreign Trade Department for approval
and obtaining the transport permit; with this transport permit the said
imported commodities are permitted to be carried beyond this Region. The
Customs duties on these imported goods as well as the import related product
tax (or added value tax) shall be paid according to the tax laws of the State.

    Article 11  The importers and exporters, or the foreign resident importers
and exporters that go to the neighbouring countries for trade activities must
go through the procedures for going abroad according to the pertinent
provisions.

    Article 12  Persons who handle import and export business with neighbouring
countries must abide by the laws, regulations and rules of the State;
offenders shall be dealt with according to law, depending on the seriousness of their cases.

    Article 13  These Provisions shall not apply to the state-run enterprises
of other provinces, autonomous regions, or municipalities directly under the
Central Government, that have a right to handle import and export business and
conduct trade with neighbouring countries through the ports in Tibet or through
the agencies of the state-run enterprises of this Region.

    Article 14  Businessmen from neighbouring countries may, at the invitation
of the departments of foreign economic relations and trade in this Region, come
to the open towns of this Region to hold business talks with the importers and
exporters of this Region, but they may not purchase the export commodities and
retail the imported commodities directly.

    Article 15  The rules for the implementation of these Provisions shall be
formulated by the Region Foreign Trade Department.

    Article 16  These Provisions shall not apply to the mutual market trade
between the border inhabitants.

    Article 17  These Provisions shall go into effect as of the date of
promulgation.  ?






REGUALATIONS ON THE MANAGEMENT OF EMPLOYMENT OF FOREIGNERS IN CHINA

Regualations on the Management of Employment of Foreigners in China

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II EMPLOYMENT PERMISSION

CHAPTER III APPLICATION AND EXAMINATION AND APPROVAL

CHAPTER IV LABOUR MANAGEMENT

CHAPTER V RULES ON PUNISHMENT

CHAPTER VI SUPPLEMENTARY RULES

   Article 1 These Regulations are hereby formulated in accordance with stipulation in relevant laws and regulations to enhance management of
employment of foreigners in China.

   Article 2 The foreigners as referred to in these Regulations refer to persons who do not have Chinese nationality as stipulated in the Nationality
Law of the People’s Republic of China.

The term of “employment of foreigners in China” as used in these Regulations refers to the behaviour of engaging in social labour
and receiving remunerations in accordance with law by foreigners who have not obtained permits to reside in China.

   Article 3 These Regulations are applicable to foreigners working inside China and units employing foreigners.

These regulations are not applicable to persons enjoying diplomatic prerogatives and immunity, such as those working in foreign embassies
and consulates in China, UN representative offices in China, and other international organizations stationed in China.

   Article 4 The labour administrations under the people’s governments at the provincial, autonomous regional and municipal level and those at
the prefectural level shall take charge of management of the employment of foreigners in China.

   Article 5 Units that employ foreigners shall apply for employment permission for these foreigners and shall employ foreigners only after obtaining
Certificates of the People’s Republic of China Permitting the Employment of Foreigners (hereinafter referred to as certificates of
permission).

   Article 6 The posts which employing units decide to fill with foreigners shall be those in special need and which can not be taken up by domestic
candidates for the time being. Moreover, no relevant state regulations shall be violated in the while.

No units shall employ foreigners to engage in cultural performances with a business character, except for those conforming with stipulations
in Clause 3 of Article 9 of these Regulations.

   Article 7 Foreigners seeking employment in China should meet the following qualifications:

(1) having reached the age of 18 and being healthy;

(2) possessing the professional skills needed for and corresponding work experiences in the work to be taken up;

(3) free from criminal records;

(4) having specific employer units;

(5) possessing valid passports or other international travel documents that can replace passports (hereinafter referred to as passport
substitutes).

   Article 8 Foreigners seeking employment in China shall enter China on the strength of occupation visas (or in line with agreements on mutual
exemption of visas if such agreements have been reached) and can get employed only after obtaining Employment Certificates for Foreigners
(hereinafter referred to employment certificates) and residential documents for foreigners.

Foreigners who have not obtained residential documents (namely, those holding, F, L, C, and G visas), foreigners studying or doing
field work in China, and the dependents of foreigners holding occupation visas shall not be employed in China. In special cases,
employing units shall apply for certificates of permission according to the examination and approval procedures stipulated in these
Regulations, and the foreigners to be employed shall change their status at public security departments on the strength of these
certificates of permission, and obtain employment certificates and residential documents before they become employed.

The employment of the spouses of the persons in foreign embassies and consulates, in UN organizations, and in the representative offices
of other international organizations in China shall be handled according to the Regulations of the Ministry of Foreign Affairs of
the People’s Republic of China on the Employment of the Spouses of the Persons Working in Foreign Embassies, Foreign Consulates,
and UN Organizations in China, with relevant proceedings to be completed in line with the examination and approval procedures stipulated
in Clause 2 of this article.

Certificates of permission and employment certificates shall be prepared by the Ministry of Labour in a unified way.

   Article 9 Foreigners meeting one of the following qualifications can be exempted from certificates of permission and employment certificates:

(1) Foreign experts and management personnel engaged with funds directly from the Central Government or with funds from State organs
or institutional units, foreign experts and management personnel with senior professional post_titles or certificates of special skills
acknowledged by authoritative technical management departments or trade associations of their home countries or international organizations,
and foreigners carrying certificates of foreign experts issued by the Administration of Foreign Experts.

(2) Foreign labourers with Permits for Foreigners to Engage in Offshore Oil Operations in the People’s Republic of China who are engaged
in offshore oil operations and do not have the need to land, and who have special skills.

(3) Foreigners putting on art performances of a business character on the strength of Permits for Temporary Performances of a Business
Character as approved by the Ministry of Culture.

   Article 10 Foreigners meeting any of the following qualifications can be exempted from obtaining certificates of permission and can directly
apply, upon entry into China, for employment permits on the strength of occupation visas and other relevant certificates:

(1) Foreigners who are employed to work in China according to agreements and protocols signed between China and foreign governments
or international organizations, or who are employed to implement Sino- foreign cooperative projects or projects of exchanges.

(2) Chief representatives and representatives of the residential offices of foreign enterprises in China.

CHAPTER III APPLICATION AND EXAMINATION AND APPROVAL

   Article 11 Units employing foreigners shall fill Application for Employing Foreigners (hereinafter referred to as the Application), file applications
to departments in charge of their respective trades at the same level of departments in charge of their labour management (hereinafter
referred to as departments in charge of respective trades), and present the following documents in validity:

(1) Resume of the foreigners to be employed.

(2) Letter of employment intent.

(3) Explanation of reasons for the employment.

(4) Certificates qualifying the foreigners for the work.

(5) Health certificates of the foreigners to be employed.

(6) Other documents required by laws and regulations.

Departments in charge of respective trades shall carry out examination and give approval in line with stipulations in Article 6 and
Article 7 of these Regulations and other relevant laws and regulations.

   Article 12 After approval by departments in charge of respective trades, employer units shall go through verification procedures with labour
administrations at the provincial, autonomous regional and municipal level or with authorized labour administrations at the prefectural
level at their locations, carrying with them the application forms. Labour administrations at the provincial, autonomous regional
and municipal level or authorized labour administrations at the prefectural level shall appoint special organs (hereinafter referred
to as certificate issuing departments) to take specific charge of the work of the signing and issuance of certificates. Certificate
issuers shall carry out verification according to the opinions put forward by departments in charge of respective trades and the
supply and demand situation at the labour market, and issue certificates of permission to employer units after verification.

   Article 13 Employer units at the central level and those without being affiliated to any departments in charge of respective trades may, if
they want to employ foreigners, directly file applications and go through employment permission procedures with the certificate issuing
departments of labour administrations.

Foreign-funded joint ventures hoping to employ foreigners do not need to ask for examination and approval from departments in charge
of respective trades. They may apply for and obtain certificates of permission directly from the certificate issuing departments
of labour administrations on the strength of their contracts, articles of association, certificates of approval, business licenses,
and the documents specified in Article 11 of these Regulations.

   Article 14 The employer units that have obtained the approval to employ foreigners shall not directly issue certificates of permission to the
foreigners to be employed. The authorized units shall issue visa notices and certificates of permission to the foreigners to be employed
in stead.

   Article 15 The foreigners who have obtained approval to work in China shall apply for occupation visas at Chinese embassies or consulates on
the strength of the certificates of permission issued by the Chinese Ministry of Labour, the notices and certificates of permission
issued by authorized units, valid passports issued by their own countries, or documents that can substitute passports.

Those conforming with conditions specified in Clause 1 of Article 9 of these Regulations shall apply for occupation visas on the strength
of the notices sent by authorized units, those conforming with conditions specified in Clause 2 of Article 9 of these Regulations
shall apply for occupations visas on the strength of the notices given by the China Offshore Oil Corporation, and those conforming
with conditions specified in Clause 3 of Article 9 of these Regulations shall apply for occupation visas on the strength of the notices
given by the foreign affairs offices of the people’s governments of relevant provinces, autonomous regions or municipalities and
the documents of approval issued by the Ministry of Culture (both will be given directly to Chinese embassies or consulates in the
countries concerned).

Those conforming with conditions in Clause 1 of Article 10 of these Regulations shall apply for occupation visas on the strength of
the notices given by authorized units and letters of projects of cooperation and exchange. Those conforming with conditions specified
in Clause 2 of Article 10 of these Regulations shall apply for occupation visas on the strength of the notices given by authorized
units and certificates of registration issued by administrations for industry and commerce.

   Article 16 Employer units shall, within 15 days of the entry of the foreigners they employ, apply to the original certificate issuing departments
for certificates of employment for these foreigners and fill the Forms of Registration of Employment of Foreigners) on the strength
of the certificates of permission, the labour contracts they have signed with these foreigners, the valid passports of these foreigners,
or documents that can substitute the passports.

The certificates of employment are valid only in areas designed by certificate issuing departments.

   Article 17 Foreigners who have received certificates of employment shall, within 30 days after entry, apply for and obtain residence cards from
public security departments on the strength of their certificates of employment. The term of validity of residence cards can be determined
according to the term of validity of the certificates of employment.

   Article 18 Employer units and the foreigners employed shall sign labour contracts in accordance with law. The term of labour contracts shall
not be more than five years at the longest. Labour contracts shall terminate upon the expiration of their terms, although their can
be renewed after completing procedures of examination and approval as stipulated in Article 19 of these Regulations.

   Article 19 The certificates of employment of foreigners shall become invalid upon expiration of the labour contracts they sign with employer
units. If both parties hope to prolong the contracts, the employer unit shall apply, within 30 days of the termination of the original
labour contracts, to labour administrations for prolonging the employment and go through, if approved, procedures for extending the
term of the certificates of employment.

   Article 20 The foreigners who have prolonged their term of employment in China or changed their locations of employment or employers shall go
through alteration procedures with local public security departments within 10 days of such changes.

   Article 21 After termination of the labour contracts between the employed foreigners and the employer units, the employer units shall make timely
reports to labour and public security departments, return the certificates of employment and residence cards of the foreigners, and
go through exit procedures with public security departments.

   Article 22 Employer units shall not pay the foreigners they employ wages lower than local minimum wage standards.

   Article 23 The working hours, rest, holidays, labour safety and sanitation, and social insurance for foreigners employed in China shall be handled
in line with relevant State regulations.

   Article 24 The employer units with which the foreigners work in China shall be same and one as specified in the certificates of employment.

The foreigners who change their employers within the location designed by the certificate issuing departments but still engage in
the same occupation shall ask for approval from the original certificate issuing departments and go through employment alteration
procedures.

The foreigners who get jobs beyond the area designated by the certificates issuing departments or change their employer within the
area designated by the certificate issuing departments but engage in different occupations shall go through procedures for employment
permission anew.

   Article 25 Employer units must terminate their labour contracts with the foreigners who have been deprived by Chinese public security departments
of the right to reside in China due to violation of Chinese laws, and labour departments shall revoke the certificates of employment
of these foreigners.

   Article 26 Should any labour disputes arise between employer units and employed foreigners, these disputes shall be handled in line with the
Labour Law of the People’s Republic of China and the Regulations of the People’s Republic of china on the Settlement of Labour Disputes
in Enterprises.

   Article 27 Labour administrations shall carry out annual checks of certificates of employment. Within 30 days of the conclusion of each full
year of employment of foreigners, the employer units shall go through procedures with the certificate issuing departments of labour
administrations for the annual check of certificates of employment on behalf of the foreigners they employ. Certificates of employment
shall become invalid automatically should employer units fail to go through these procedures within the prescribed time.

Foreigners who lose or damage their certificates of employment while working in China shall report their cases to the original certificate
issuing departments and go through procedures for new certificates.

   Article 28 Foreigners who get employed without obtaining certificates of employment and employer units that employ foreigners without obtaining
certificates of permission shall be handled by public security departments in line with Article 44 of the Implementing Rules of the
Law of the People’s Republic of China on the Management of the Entry and Exit of Foreigners.

   Article 29 Labour administrations shall revoke the certificates of employment of foreigners who refuse checks of their certificates of employment
by labour administrations, change their employers or jobs without permission, or prolong their terms of employment without authorization,
and ask public security departments to deprive these foreigners of their qualification for residing in China. If these foreigners
are to be repatriated, the repatriation costs shall be shouldered by the employer units or the foreigners themselves.

   Article 30 Foreigners and employer units that forge, alter, transfer, trade or use other’s certificates of employment or certificates of permission
shall be subject to confiscation of these certificates of employment or certificates of permission by labour administrations and
be fined at between over 10,000 yuan and below 100,000 yuan. Those who commit cases so serious as to become criminal shall be handed
over to judicial departments to affix criminal responsibilities.

   Article 31 The staff members of certificate issuing departments and other relevant departments who usurp their power, ask for illegal charges,
or do wrong to serve their friends or relatives and as a result commit crimes shall be affixed with criminal responsibilities or
be administratively disciplined if their cases are not so serious as to be criminal.

   Article 32 Residents from China’s Taiwan, Hong Kong and Macao regions who seek jobs on the Chinese mainland shall be treated in line with the
Regulations on the Management of Employment of Taiwan, Hong Kong and Macao Residents on the Chinese Mainland.

   Article 33 These Regulations are not applicable those foreigners who are employed in China’s Taiwan, Hong Kong, or Macao regions.

   Article 34 Privately-owed economic organizations and individuals are forbidden to employ foreigners.

   Article 35 Labour administrations at the provincial, autonomous regional and municipal level may formulate, together with public security departments
and other departments, local implementing rules of these Regulations and report these rules to the Ministry of Labour, the Ministry
of Public Security, the Ministry of Foreign Affairs, and the Ministry of Foreign Trade and Economic Cooperation for the record.

   Article 36 These Regulations shall be explained by the Ministry of Labour.

   Article 37 These Regulations shall take effect on May 1, 1996. The Stipulations on the Employment of Foreigners Who have Not Obtained Residence
Cards and Foreigners Who Come to China for the Purpose of Study promulgated by the former Ministry of Labour and Personnel and the
Ministry of Public Security on October 5, 1987 shall be nullified at the same time.

    





MEASURES CONCERNING THE SUBSTITUTION OF PRODUCTS MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED PRODUCTS

20011006

The State Development Planning Commission

Measures Concerning the Substitution of Products Manufactured by Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual
Joint Ventures for Similar Imported Products

the State Development Planning Commission

October 19, 1987

Article 1

These Measures are formulated in accordance with the Provisions of the State Council Concerning the Encouragement of Foreign Investment,
to encourage foreign businessmen to invest in setting up technologically – advanced enterprises, and to help enterprises in achieving
a balance between their foreign exchange earnings and expenditures.

Article 2

These Measures shall apply to Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures of a production
nature (hereinafter referred to as joint ventures and contractual ventures) which can provide advanced technologies China needs and
are engaged in the development of new products, thereby realizing the upgrading of products and the replacement of old products with
new ones.

Article 3

Enterprises with foreign investment that satisfy the following conditions may apply to substitute their products for similar imported
products:

(1)

technologically-advanced joint ventures and contractual ventures whose products are indeed needed in China, and which have, at the
initial stage of production, experienced some temporary difficulties in balancing their foreign exchange earnings and expenditures
in the course of realizing the replacement of imported products with home-made ones;

(2)

the products manufactured by enterprises mentioned above belong to the categories of products the central departments, the localities
and other departments need to import at present and in the next few years;

(3)

products that are recommended as substitutes for similar imported products shall meet the needs of domestic users in specifications,
properties, the delivery time, technical services and technical training, and undergo the appraisal conducted by the national testing
center for the quality of products, thereby confirming that the aforesaid products measure up to the quality standard of similar
imported goods; in principle, the prices of the recommended products shall not be higher than those of the international market at
the time.

Article 4

Enterprises that recommend their products as substitutes for similar imported goods shall make an application in that connection at
the time when they submit their project proposals. When they submit their project feasibility study reports, they must state clearly
in the reports the proportion between domestic sales and export sales of the products manufactured by the joint ventures and contractual
ventures and the rate of progress for the replacement of imported products with home-made ones; moreover, they shall prove by an
ample demonstration or appraise the feasibility of substituting their products for similar imported ones (including a statement concerning
the annual quantity of their products to be used to substitute for imported products and annual amount of foreign exchange to be
earned therefrom).

Article 5

Pursuant to the principle of administration at different levels, the applications for the approval of using the products manufactured
by the joint ventures and contractual ventures to substitute for similar imported goods shall be examined and approved respectively
by the central competent authorities and the local competent authorities (or departments). If items above the norm examined and approved
by the central competent authorities need to be recommended as substitutes for similar imported products, the matter shall be examined
and approved by the State Planning Commission; and the items below the norm examined and approved by the local competent authorities
(or departments) need to be recommended as substitutes for similar imported products, the matter shall be examined and approved by
the local planning commissions or departments on their own.

Article 6

Import substitution to be effected in the items above the norm to be examined and approved by the State Economic Planning Commission:

(1)

of the goods which have been included in the Central Government’s medium-and long-term import plans approved by the State, except
those on which long-term import agreements have been concluded with foreign countries, substitution for imports shall be approved
in advance within the Central Government’s import plans if it is still possible that some of the goods to be imported can be substituted
with domestically – manufactured products when the feasibility study reports are examined and approved;

(2)

substitution for goods which have not been included in the Central Government’s medium-and long-term import plans shall, in principle,
not be approved in advance. However, the enterprises may apply to the State Planning Commission for using their products as substitutes
for similar imported products if such goods have been included in the Central Government’s annual import plans and are available
for substitution with home-made similar products. Once the applications are approved, the Ministry of Foreign Economic Relations
and Trade shall handle the procedures for substituting home-made product for similar imported products for the current year;

(3)

with respect to those commodities which have not been included in the Central Government’s long-term, medium-term and annual import
plans, if they are to be imported by the local governments in the current year, the enterprises may make an application to the local
planning commission; upon approval, the local department of foreign economic relations and trade shall handle the procedures for
using their products as substitutes for similar imported products.

Article 7

Import substitution to be effected in the items below the norm to be examined and approved by the local competent authorities (or
departments):

(1)

of the commodities which have already been included in the long-term, medium-term and annual import plans of the province, autonomous
region, or municipality directly under the Central Government, if there are some available for being replaced by home-made products,
they may, within the period for executing the locality’s import plan, be approved in advance by the planning commission of the province,
autonomous region, or municipality directly under the Central Government with reference to the examining and approving procedures
adopted by the central competent authorities, and the aforesaid planning commission shall also handle, within the aforesaid period,
the procedures for using the home-made products mentioned above as substitutes for similar imported commodities;

(2)

with respect to those commodities which have not been included in the localities’ long-term, medium-term and annual import plans,
but they are to be imported by the local area or by some other areas, a transregional operation may be conducted for using home-made
products as substitutes for similar imported commodities. The enterprises may make an application directly to the planning commission
of the province, autonomous region, or municipality directly under the Central Government that undertakes the import of the aforesaid
commodities; after they have obtained the approval, the department of foreign economic relations and trade of the aforesaid province,
autonomous region, or municipality directly under the Central Government shall handle the procedures for using their products as
substitutes for similar imported commodities:

(3)

with respect to the commodities to be imported by some departments with the foreign exchange in their possession, the enterprises
may make an application directly to these departments; after they have obtained the consent of the departments, they shall go through
the procedures for using their own products as substitutes for similar commodities to be imported.

Article 8

With respect to the aforesaid products which are to be used as substitutes for similar imported commodities as examined and approved
by the planning commission of the central competent authorities or of the local competent authorities (or by local departments),
if these products belong to the lot of products which are to be approved in advance within the long-and medium-term plans, they shall
be further verified and confirmed in the annual plan in accordance with the actual situation of the execution of the import plan
in the current year.

The products which have been approved as substitutes for similar imported products shall, under equal conditions (with similar imported
commodities), be given priority of being selected for use by domestic users.

The competent departments for imports administration and the examining and approving departments for imports at various levels shall
guide and encourage domestic users to give priority to the purchase of the products which are manufactured by the joint ventures
and contractual ventures and are in conformity with the conditions of products used as substitutes for similar imported products.

Article 9

When domestic users purchase products which have been approved as substitutes for similar imported products, the payment for such
products shall be made wholly or partially in foreign exchange to the joint ventures and contractual ventures in accordance with
the terms agreed upon by both parties and subject to the approval of the State administrative department of foreign exchange control.

Article 10

With respect to machinery and electrical products used as substitutes for similar imported products, the State Economic Commission
shall formulate and publish a catalogue of products used as substitutes for similar imported products and also the procedures for
the administration of substitution of home-made products for similar imported goods, thereby directing the domestic users to give
priority to the purchase of the products included in the aforesaid catalogue.

The joint ventures and contractual ventures which manufacture the products included in the aforesaid catalogue may participate in
the open tender for imported machinery and electrical equipment conducted by the China Bidding Center for Machinery and Electrical
Equipment (or by other bidding agencies authorized by the State Economic Commission); the Center shall issue a certificate to the
enterprise which has won the tender, thereby realizing the substitution of home-made products for similar imported goods.

Article 11

The joint ventures and contractual ventures shall, in accordance with the provisions of Article 4 of the Measures of the Ministry
of Foreign Trade and Economic Cooperation for the Implementation of the Application by Enterprises with Foreign Investment for the
Export Licence, go through the procedures for the importation of raw materials and component parts needed in the manufacture of products
used as substitutes for similar imported goods; when the aforesaid products are supplied to domestic users, the transaction shall
be handled in accordance with the provisions of Article 5 of the Measures of the General Administration of Customs of the People’s
Republic of China on Administration of the Import of Raw Materials and Component Parts Needed by Enterprises with Foreign Investment
to Carry out the Product Export Contracts.

Article 12

The joint ventures and contractual ventures which have obtained the approval to use their products as substitutes for similar imported
goods must fulfil the following requirements:

(1)

strictly fulfil the requirements for the export proportion stipulated in the contract and the rate of progress for the replacement
of imported products with home-made ones;

(2)

strive to maintain the advanced level of the technical performance and quality of their products;

(3)

deliver their products in accordance with the quantity and schedule stipulated in the contract; in the event that the users suffer
economic losses caused by problems relating to the time of delivery, the quantity of products delivered, and the quality of products,
they shall bear the corresponding economic liabilities;

(4)

provide high-quality service to the users.

Article 13

Once the products manufactured by the joint ventures and contractual ventures have been approved as substitutes for similar imported
goods, they shall not be included again in the State plan for the distribution of goods and materials produced domestically.

Article 14

The right to interpret these Measures shall reside in the State Planning Commission.

Article 15

These Measures shall enter into force as of the date of promulgation. Attachment:Catalogue of Commodities Which can be Replaced by Home-made Products as Included in the Central Government’s Import Plan to be Executed
During the “Seventh Five-Year Plan”:

(1)

steel products

(2)

pig iron

(3)

timber

(4)

copper

(5)

aluminium

(6)

zinc

(7)

rubber

(8)

chemical fertilizers

(9)

wood pulp

(10)

poly acrylonitrile fibre

(11)

polyamide fibre

(12)

artificial silk



 
The State Development Planning Commission
1987-10-19

 






REGULATIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON APPLYING FOR GUARANTEE FOR IMPORT AND EXPORT GOODS

INTERIM PROVISIONS OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING THE PROPORTION OF REGISTERED CAPITAL AND TOTAL AMOUNT OF INVESTMENT OF CHINESE-FOREIGN EQUITY JOINT VENTURES

The State Administration for Industry and Commerce

Interim Provisions of the State Administration for Industry and Commerce Concerning the Proportion of Registered Capital and Total
Amount of Investment of Chinese-foreign Equity Joint Ventures

GongShangQiZi [1987] No.38

February 17, 1987

Article 1

According to the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures and Rules for the Implementation of
the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, the provisions are formulated in order to clarify
the proportion of registered capital and total amount of investment of Chinese-foreign equity joint ventures.

Article 2

The registered capital of a Chinese-foreign equity joint venture shall adapt to its scale and scope of production and operation. The
parties of the joint venture shall share the profit, risks and losses in accordance with their proportion of the registered capital.

Article 3

The proportion of registered capital and total amount of investment of Chinese-foreign equity joint ventures shall abide by the following
provisions:

1.

Where the total amount of investment of the Chinese-foreign equity joint venture is less than 3,000,000 U.S. dollars (including 3,000,000
U.S. dollars), the registered capital shall account for seven tenth of the total amount of investment at least.

2.

Where the total amount of investment of the Chinese-foreign equity joint venture is between over 3,000,000 U.S. dollars to 10,000,000
U.S. dollars (including 10,000,000 U.S. dollars), the registered capital shall account for half of the total amount of investment
at least. Where the total amount of investment is less than 4,200,000 U.S. dollars, the registered capital shall be not less than
2,100,000 U.S. dollars.

3.

Where the total amount of investment of the Chinese-foreign equity joint venture is between over 10,000,000 U.S. dollars to 30,000,000
U.S. dollars (including 30,000,000 U.S. dollars), the registered capital shall account for two fifths of the total amount of investment
at least. If the total amount of investment is less than 12,500,000 U.S. dollars, the registered capital shall be not less than 5,000,000
U.S. dollars.

4.

WWhere the total amount of investment of the Chinese-foreign equity joint venture is over 30,000,000 U.S. dollars, the registered
capital shall account for one third of the total amount of investment at least. If the total amount of investment is less than 36,000,000
U.S. dollars, the registered capital shall be not less than 12,000,000 U.S. dollars.

Article 4

Where Chinese-foreign equity joint ventures encounter special circumstances so as not able to execute the provisions stated above,
they shall get the joint approval of the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry
and Commerce.

Article 5

Where Chinese-foreign equity joint ventures increase the investment, the proportion of the additional registered capital and the increased
amount of investment shall be in accordance with these provisions.

Article 6

The proportion of registered capital and total amount of investment of Chinese-foreign contractual joint ventures and foreign invested
enterprises shall be executed with reference to these provisions.

Article 7

These provisions apply to the proportion of registered capital and total amount of investment of the enterprises that are invested
and established by companies and enterprises of Hong Kong, Macao and Taiwan and other economic organizations or individuals.

Article 8

These provisions shall enter into force as of the date of promulgation.



 
The State Administration for Industry and Commerce
1987-02-17

 






PROVISIONAL REGULATIONS ON STATISTICS AND SUPERVISION OF FOREIGN DEBTS

Provisional Regulations on Statistics and Supervision of Foreign Debts

     (Effective Date 1987.08.27)

   Article 1. The present regulations are formulated to control the size of the country’s foreign debts and to enable a timely and accurate way
of collecting information and statistics on such debts. They are also drafted to raise the country’s efficiency in utilizing foreign
funds and expedite the growth of the national economy.

   Article 2. A foreign debt registration system is implemented for such purpose.

The State Administration of Exchange Control (SAEC) is in charge of establishing and prefecting a system on collecting the statistics
on and the supervision of the country’s foreign debts, and of publishing statistic reports thereof.

   Article 3. Foreign debts herein mentioned refer to all debts which are guaranteed by repayment contracts to be repaid in foreign currency and
which are borrowed from international financial organizations, foreign governments, financial institutions or other institutions
located outside the People’s Republic of China by State enterprises, government departments, financial institutions or other institutions
(hereinafter referred to as borrowing units) in the People’s Republic of China. They include the following:

(1) Loans from international financial institutions;

(2) Foreign government loans;

(3) Loans from foreign banks and financial organizations;

(4) Buyer’s credits;

(5) Loans from foreign enterprises;

(6) Securities in foreign currency;

(7) International financial leases;

(8) Deferred payments;

(9) Debts incurred under compensation trade arrangements and are to be repaid in the form of cash of a currency other than Renminbi,
and

(10) Other forms of foreign debts.

Foreign exchange funds obtained by borrowing units from foreign banks and Sino-foreign joint venture banks registered in the People’s
Republic of China are regarded as foreign debts.

Foreign exchange funds borrowed and transferred into the country by foreign banks and Sino-foreign joint venture banks registered
in the People’s Republic of China are not regarded as foreign debts.

   Article 4. Registration of foreign debts is conducted on a case-by-case basis or a specified dates basis.

The “Foreign Debts Registration Certificate” shall be formulated and issued by the SAEC in a unified way.

   Article 5. Sino-foreign equity or non-equity joint venture enterprises and wholly foreign-owned enterprises are required to register at and
obtain from a SAEC office their respective foreign debt registration certificates every time such a loan is obtained from a foreign
source by submitting a copy of the loan contract within 15 days of the signing of the contract.

In the case of loans from international financial organizations, foreign governments, and borrowing by the Bank of China or other
authorized banks and financial institutions, the borrowing units are required to register at and obtain from a SAEC office their
respective foreign debt registration certificates at the specified date for such registration. The registration methods mentioned
in this article do not apply to relending.

Apart from the borrowing units mentioned above in this article, other borrowing units are required to register at and obtain their
respective foreign debt registration certificates from a SAEC office by submitting their borrowing approval certificates and copies
of their loan contracts within 15 days of the signing of the contracts.

   Article 6. Borrowing units are required, while transferring their credits from other countries to the People’s Republic of China, to open a
special forex account (foreign debt) with the Bank of China or other banks authorized by the SAEC (hereinafter referred to as bank/banks)
for which their foreign debt registration certificates must be submitted. Borrowing units that have obtained the necessary approval
to keep their credits abroad and borrowing units whose credits are in the form of funds that are not to be transferred into the country
are required to open a debt servicing forex account at banks for which their foreign debt registration certificates must be submitted.

Banks are not allowed to open special forex accounts or debt servicing forex accounts for borrowing units, which have not obtained
their foreign debt registration certificates as prescribed in these regulations, for the purpose of remitting repayments of principal
and interest out of the country.

   Article 7. Under the case-by-case registration method, a bank shall credit or debit the special forex account or the debt servicing forex account
of a borrowing unit when the latter makes repayments of the principal and interest of its outstanding foreign debts. The bank can
request the borrowing unit to submit its borrowing approval certificate and its foreign debt registration certificate issued by a
SAEC office for such transaction. The bank shall issue the borrowing unit a receipt on the transaction. The borrowing unit shall
then record the transaction according to the bank receipt by filling in a “Statement on Changes of Foreign Debt” and send a copy
of the statement of the SAEC office that has issued its foreign debt registration certificate.

Under the method of registration at specified dates, a borrowing unit is required to submit a monthly report on the the signing of
agreements, withdrawals, loan application and its repayment of principal and interest of its outstanding foreign debts to the SAEC
office which has issued its foreign debt registration certificate.

Borrowing units that have been approved to keep their credits abroad are required to the SAEC office which has approved their borrowing.

   Article 8. Once a borrowing unit has fully cleared its foreign debts as recorded in its foreign debt registration certificate, the bank concerned
shall cancel its special forex account or the debt servicing forex account. The said borrowing unit shall submit its foreign debt
registration certificate for cancellation to the SAEC office that has issued the said certificate within 15 days.

   Article 9. SAEC offices are authorized to impose a fine, according to the seriousness of the case, on any unit that is found to have violated
these regulations in any of the following ways, of an amount not exceeding 3% of the amount of the foreign debt concerned.

(1) Wilful non-registration or delay in registration of foreign debts;

(2) Refusal to submit, conceal or submit in a fraudulent way or repeated delays without any special reason in the submission of copies
of the “Statement of Changes of Foreign Debt” to the SAEC office;

(3) Foreign or altering the registration certificate, and

(4) Opening or keeping a special forex account or a debt servicing forex account without prior approval.

The party concerned is permitted to lodge an appeal against the penalty handed down with higher SAEC authorities.

   Article 10. The right to interpret these regulations is vested with the SAEC.

   Article 11. These regulations shall come into force from the day of promulgation.

Borrowing units which still have not cleared their foreign debts are required to register at their local SAEC office within 30 days
of the promulgation of these regulations.

    

Source:MOFTEC





MEASURES CONCERNING THE SUBSTITUTION OF PRODUCTS MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINTVENTURES FOR SIMILAR IMPORTED PRODUCTS

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1987-10-19 Effective Date  1987-10-19  


Measures Concerning the Substitution of Products Manufactured by Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual
Jointventures for Similar Imported Products

Measures
Appendix:

(Approved by the State Council and promulgated by the State Planning

Commission on October 19, 1987)
Measures

    Article 1  These Measures are formulated in accordance with the Provisions
of the State Council Concerning the Encouragement of Foreign Investment, to
encourage foreign businessmen to invest in setting up technologically-advanced
enterprises, and to help enterprises in achieving a balance between their
foreign exchange earnings and expenditures.

    Article 2  These Measures shall apply to Chinese-foreign equity joint
ventures and Chinese-foreign contractual joint ventures of a production nature
(hereinafter referred to as joint ventures and contractual ventures) which can
provide advanced technologies China needs and are engaged in the development
of new products, thereby realizing the upgrading of products and the
replacement of old products with new ones.

    Article 3  Enterprises with foreign investment that satisfy the following
conditions may apply to substitute their products for similar imported
products:

    (1) technologically-advanced joint ventures and contractual ventures whose
products are indeed needed in China, and which have, at the initial stage of
production, experienced some temporary difficulties in balancing their foreign
exchange earnings and expenditures in the course of realizing the replacement
of imported products with home-made ones;

    (2) the products manufactured by enterprises mentioned above belong to the
categories of products the central departments, the localities and other
departments need to import at present and in the next few years;

    (3) products that are recommended as substitutes for similar imported
products shall meet the needs of domestic users in specifications, properties,
the delivery time, technical services and technical training, and undergo the
appraisal conducted by the national testing center for the quality of
products, thereby confirming that the aforesaid products measure up to the
quality standard of similar imported goods; in principle, the prices of the
recommended products shall not be higher than those of the international
market at the time.

    Article 4  Enterprises that recommend their products as substitutes for
similar imported goods shall make an application in that connection at the
time when they submit their project proposals. When they submit their project
feasibility study reports, they must state clearly in the reports the
proportion between domestic sales and export sales of the products
manufactured by the joint ventures and contractual ventures and the rate of
progress for the replacement of imported products with home-made ones;
moreover, they shall prove by an ample demonstration or appraise the
feasibility of substituting their products for similar imported ones
(including a statement concerning the annual quantity of their products to be
used to substitute for imported products and annual amount of foreign
exchange to be earned therefrom).

    Article 5  Pursuant to the principle of administration at different
levels, the applications for the approval of using the products manufactured
by the joint ventures and contractual ventures to substitute for similar
imported goods shall be examined and approved respectively by the central
competent authorities and the local competent authorities (or departments).
If items above the norm examined and approved by the central competent
authorities need to be recommended as substitutes for similar imported
products, the matter shall be examined and approved by the State Planning
Commission; and the items below the norm examined and approved by the local
competent authorities (or departments) need to be recommended as substitutes
for similar imported products, the matter shall be examined and approved by
the local planning commissions or departments on their own.

    Article 6  Import substitution to be effected in the items above the norm
to be examined and approved by the State Economic Planning Commission:

    (1) of the goods which have been included in the Central Government’s
medium-and long-term import plans approved by the State, except those on which
long-term import agreements have been concluded with foreign countries,
substitution for imports shall be approved in advance within the Central
Government’s import plans if it is still possible that some of the goods to be
imported can be substituted with domestically-manufactured products when the
feasibility study reports are examined and approved;

    (2) substitution for goods which have not been included in the Central
Government’s medium-and long-term import plans shall, in principle, not be
approved in advance. However, the enterprises may apply to the State Planning
Commission for using their products as substitutes for similar imported
products if such goods have been included in the Central Government’s annual
import plans and are available for substitution with home-made similar
products. Once the applications are approved, the Ministry of Foreign Economic
Relations and Trade shall handle the procedures for substituting home-made
product for similar imported products for the current year;

    (3) with respect to those commodities which have not been included in the
Central Government’s long-term, medium-term and annual import plans, if they
are to be imported by the local governments in the current year, the
enterprises may make an application to the local planning commission; upon
approval, the local department of foreign economic relations and trade shall
handle the procedures for using their products as substitutes for similar
imported products.

    Article 7  Import substitution to be effected in the items below the norm
to be examined and approved by the local competent authorities (or
departments):

    (1) of the commodities which have already been included in the long-term,
medium-term  and annual import plans of the province, autonomous region, or
municipality directly under the Central Government, if there are some
available for being replaced by home-made products, they may, within the
period for executing the locality’s import plan, be approved in advance by
the planning commission of the province, autonomous region, or municipality
directly under the Central Government with reference to the examining and
approving procedures adopted by the central competent authorities, and the
aforesaid planning commission shall also handle, within the aforesaid period,
the procedures for using the home-made products mentioned above as
substitutes for similar imported commodities;

    (2) with respect to those commodities which have not been included in the
localities’ long-term, medium-term and annual import plans, but they are to be
imported by the local area or by some other areas, a transregional operation
may be conducted for using home-made products as substitutes for similar
imported commodities. The enterprises may make an application directly to the
planning commission of the province, autonomous region, or municipality
directly under the Central Government that undertakes the import of the
aforesaid commodities; after they have obtained the approval, the department
of foreign economic relations and trade of the aforesaid province, autonomous
region, or municipality directly under the Central Government shall handle the
procedures for using their products as substitutes for similar imported
commodities;

    (3) with respect to the commodities to be imported by some departments
with the foreign exchange in their possession, the enterprises may make an
application directly to these departments; after they have obtained the
consent of the departments, they shall go through the procedures for using
their own products as substitutes for similar commodities to be imported.

    article 8  With respect to the aforesaid products which are to be used as
substitutes for similar imported commodities as examined and approved by the
planning commission of the central competent authorities or of the local
competent authorities (or by local departments), if these products belong to
the lot of products which are to be approved in advance within the long and
medium-term plans, they shall be further verified and confirmed in the annual
plan in accordance with the actual situation of the execution of the import
plan in the current year.

    The products which have been approved as substitutes for similar imported
products shall, under equal conditions (with similar imported commodities), be
given priority of being selected for use by domestic users.

    The competent departments for imports administration and the examining and
approving departments for imports at various levels shall guide and encourage
domestic users to give priority to the purchase of the products which are
manufactured by the joint ventures and contractual ventures and are in
conformity with the conditions of products used as substitutes for similar
imported products.

    Article 9  When domestic users purchase products which have been approved
as substitutes for similar imported products, the payment for such products
shall be made wholly or partialy in foreign exchange to the joint ventures and
contractual ventures in accordance with the terms agreed upon by both parties
and subject to the approval of the State administrative department of foreign
exchange control.

    Article 10  With respect to machinery and electrical products used as
substitutes for similar imported products, the State Economic Commission shall
formulate and publish a catalogue of products used as substitutes for similar
imported products and also the procedures for the administration of
substitution of home-made products for similar imported goods, thereby
directing the domestic users to give priority to the purchase of the products
included in the aforesaid catalogue.

    The joint ventures and contractual ventures which manufacture the products
included in the aforesaid catalogue may participate in the open tender for
imported machinery and electrical equipment conducted by the China Bidding
Center for Machinery and Electrical Equipment (or by other bidding agencies
authorized by the State Economic Commission); the Center shall issue a
certificate to the enterprise which has won the tender, thereby realizing the
substitution of home-made products for similar imported goods.

    Article 11  The joint ventures and contractual ventures shall, in
accordance with the provisions of Article 4 of the Measures of the Ministry of
Foreign Economic Ralations and Trade Concerning the Application by Enterprises
with Foreign Investment for the Export Licence, go through the procedures for
the importation of raw materials and component parts needed in the manufacture
of products used as substitutes for similar imported goods; when the aforesaid
products are supplied to domestic users, the transaction shall be handled in
accordance with the provisions of Article 5 of the Measures of the General
Customs Administration of the People’s Republic of China Concerning the
Importation of Raw Materials and Component Parts Needed by Enterprises with
Foreign Investment to Execute Their Products Export Contracts.

    Article 12  The joint ventures and contractual ventures which have
obtained the approval to use their products as substitutes for similar
imported goods must fulfil the following requirements:

    (1) strictly fulfil the requirements for the export proportion stipulated
in the contract and the rate of progress for the replacement of imported
products with home-made ones;

    (2) strive to maintain the advanced level of the technical performance and
quality of their products;

    (3) deliver their products in accordance with the quantity and schedule
stipulated in the contract; in the event that the users suffer economic losses
caused by problems relating to the time of delivery, the quantity of products
delivered, and the quality of products, they shall bear the corresponding
economic liabilities;

    (4) provide high-quality service to the users.

    Article 13  Once the products manufactured by the joint ventures and
contractual ventures have been approved as substitutes for similar imported  
goods, they shall not be included again in the State plan for the distribution
of goods and materials produced domestically.

    Article 14  The right to interpret these Measures shall reside in the
State Planning Commission.

    Article 15  These Measures shall go into effect as of the date of
promulgation.

Appendix:

    Catalogue of commodities which can be replaced by home-made products as
included in the central government’s import plan to be executed during the
“Seventh Five-Year Plan”:


(1) steel products      (2) pig iron
(3) timber              (4) copper
(5) aluminium           (6) zinc
(7) rubber              (8) chemical fertilizers
(9) wood pulp           (10) poly acrylonitrile fibre
(11) polyamide fibre    (12) artificial silk?







RULES FOR THE IMPLEMENTATION OF ADMINISTRATIVE PUNISHMENTS UNDER THE CUSTOMS LAW OF THE PEOPLE’S REPUBLIC OF CHINA

e02391,e0357719870630the State Council1987070119870701The General Administration of Customsepdf/e02907.pdfOcustoms, administrative punishment, smugglee02907Rules for the Implementation of Administrative Punishments Under the Customs Law of the People’s Republic of China(Approved by the State Council on June 30, 1987, promulgated by the General Administration of Customs on July 1, 1987, amended according
to the Reply of the State Council Concerning Revising the Rules for the Implementation of Administrative Punishments Under the Customs
Law of the People’s Republic of China on February 17, 1993)Chapter I General ProvisionsArticle 1 These Rules are formulated with a view to implementing the provision legal responsibilities under the Customs Law of the People’s
Republic of China (hereinafter referred to as the Customs Law) in accordance with Article 60 of the Customs Law.Article 2 These Rules shall be applied to acts which do not constitute the crimes of smuggling, to acts which constitute the crimes of smuggling
but exempted from prosecution or punishment by law, and to acts which violate provisions concerning Customs supervision and control.Chapter II Smuggling Acts and their PunishmentsArticle 3 Any of the following acts shall be regarded as an act of smuggling:1.without the approval of the State Council or the department empowered by the State Council, to transport or to carry articles prohibited
by the State from entering or leaving the territory, and goods and articles restricted by the State in importation or exportation,
or legally liable to Customs duties, into or out of the territory at a port where there is no Customs establishment;2.to transport, carry or send by post articles prohibited by the State from entering or leaving the territory, and goods and articles
restricted by the State in importation or exportation or legally liable to Customs duties, into or out of the territory at a port
where there is a Customs establishment, by concealment, disguise, incomplete or fraudulent declaration or other means aiming at evading
Customs supervision and control;3.to evade payment of customs duties by incomplete or fraudulent declaration of the price for the import or export goods;4.to sell without Customs approval and payment of Customs duties specially permitted bonded goods, other goods under Customs control
or inward means of transport which are meant to be used outside the territory;5.to sell without Customs approval and payment of Customs duties goods enjoying specially granted duty reduction or exemption imported
for use by designated enterprises or for specified purposes, or to transport without authorization goods enjoying specially granted
duty reduction or exemption from the designated areas, where they are intended for use, to other places of China.Article 4 Any of the following acts shall be regarded and punished as an act of smuggling:1.to purchase smuggled import goods and articles illegally and directly from the smuggler;2.to transport, purchase or sell articles prohibited by the State from entering or leaving the territory or to transport, purchase or
sell without legal certificates the goods or articles restricted by the State in importation and exportation, on inland sea or territorial
waters.Article 5 Any act listed in Article 3 and Article 4 of these Rules shall be punished in accordance with the following provisions:1.The Customs shall confiscate the smuggled articles which are prohibited by the State from entering or leaving the territory and the
illegal incomes obtained therefrom, and may impose a fine below 50,000 yuan in RMB at the same time.2.The Customs shall confiscate the smuggled goods and articles which are restricted by the State in importation or exportation and the
illegal incomes obtained therefrom, and may, at the same time, impose a fine below the value of the smuggled goods or articles, or
below three times the amount of duties leviable:3.The Customs shall confiscate the illegal incomes obtained form evading payment of customs duties by incomplete or fraudulent declaration
of the price for the import or export goods, and may impose a fine three times the amount of duties evaded.4.The Customs shall confiscate the goods or the articles used specially to cover up smuggling and confiscate or order the dissembling
of specially designed equipment for the concealment of the smuggled goods and articles. In case the smuggled goods or the articles
are not confiscable, the Customs shall order the payment of an amount of money equal to the value of the smuggled goods or articles.Article 6 Where a smuggling act is done by two or more persons, they shall be punished respectively according to the extent of their involvement
and their respective responsibilities. Confiscation of illegal goods incomes shall be imposed on those who do not report the case
they know and provide facilities to the smuggler, and a fine below twice the illegal incomes may be imposed at the same time. In
case there is no illegal income, a fine below 5,000 yuan in RMB shall be imposed.Article 7 Any act in the way of preparing devices or creating conditions for smuggling shall be given a lesser punishment by applying mutatis
mutandis Article 5 of these Rules.Article 8 Punishments may be exempted or be imposed in lesser degrees in cases where:1.the smuggling act is of a minor nature;2.the person in question owns up the case and informs against other offenders;3.the smuggling is discovered three years later. The duration specified in item 3 under this Article shall be counted from the day when
the smuggling act takes place. In case that the smuggling is of a continuous nature, it shall be counted from the day when the last
act of smuggling takes place.Chapter III Acts Violating Regulations on Customs Control and the PunishmentsArticle 9 Acts which violate Customs regulations but do not constitute acts of smuggling shall be considered as acts violating regulations on
Customs control.Article 10 Goods which are imported or exported in violation of the State rules and regulations governing the importation and exportation or
without license or other documents of approval shall be confiscated or ordered to be sent back. In case that a license or a documental
approval is obtained afterwards, a fine below the value of the goods shall be imposed.Article 11 A fine below the value of the goods or articles or below twice the amount of the duties leviable shall be imposed for any of the following
acts:1.to transport, carry or send by post into or out of the territory, with a view to evading Customs supervision and control, goods or
articles which are not listed in the categories prohibited by the State from entering or leaving the territory or restricted by the
State in importation or exportation, or legally liable to Customs duties;2.to open, pick up, deliver, forward, change, repack, mortgage or transfer goods under Customs control or incoming and outgoing articles
not yet released by the Customs without Customs authorization;3.to keep untruthful operational records or to fail to give a justifiable reason for shortage of goods in the transportation, storage,
processing, assembling and consignment sale of bonded goods;4.to utilize, without Customs approval, goods and articles enjoying specially granted duty reduction or exemption for other purposes
than those provided for;5.to make untruthful declaration of import or export goods for its name, quantity, standard, price, origin of production, trade manner,
country of consumption, country of trading or other items which should be declared;6.to fail to re-transport temporarily exported or imported goods into or out of the territory within the specified time limit and let
the said goods remain inside or outside the territory without authorization;7.to fail to transport the transit, transshipment or through goods out of the territory within the specified time limit and let the
said goods remain inside the territory without authorization;8.to transfer materials and supplies intended for use by the inward or outward means of transport without obtaining Customs approval
or paying Customs duty.Article 12 A fine below 50,000 yuan in RMB shall be imposed upon any of the following acts:1.for a means of transport, without approval from the State Council or other department empowered by the State Council, to enter or
leave the territory at a place without a Customs establishment;2.for an inward or outward means of transport staying at the Customs surveillance zone to leave without Customs approval;3.for an inward or outward means of transport en route from one place with a Customs establishment to another with a Customs establishment
to change route midway by moving out of the territory or to a point in the territory where there is no Customs establishment without
completing the clearance formalities and obtaining the Customs approval.Article 13 A fine below 30,000 yuan in RMB shall be imposed upon any of the following acts:1.for an inward or outward means of transport to fail to submit papers and documents required or submit untrue papers or documents to
the Customs after arriving at or before departing from a place with a Customs establishment;2.to fail to accept the checking and examination by the Customs of the inward or outward transport, and goods and articles in accordance
with relevant regulations;3.for an inward or outward means of transport to load or unload inward or outward goods and articles, or to embark or disembark passengers
without Customs approval;4.for an inward or outward means of transport to engage, without Customs approval, concurrently in cargo or passenger transport in the
territory or services other than inward and outward transportation in the territory;5.for an inward or outward means of transport to change to transport services within the territory without completing Customs formalities
in accordance with the regulations;6.for anyone engaged in the storage, processing, assembling and consignment sale of the bonded goods to fall to complete procedures
such as receipt, delivery and cancellation in accordance with the regulations or to fail to complete Customs procedures in accordance
with the regulations when the relevant contracts have been suspended, prolonged or transferred;7.to store goods under Customs control outside the Customs surveillance zone without Customs approval or to fail to accept Customs control
over such goods;8.to open or destroy, without Customs authorization, seals affixed by the Customs on the means of transport, warehouses or goods.Article 14 A fine below 20,000 yuan in RMB shall be imposed on any of the following acts:1.for the inward means of transport which has entered the territory but has not made the declaration to the Customs, or for the outward
means of transport which has cleared the Customs but has not left the territory to fail to move along routes specified by competent
communications authorities or by the Customs;2.for the inward and outward vessel or vehicle carrying goods under Customs control to fail to move along the routes specified by the
Customs;3.for the inward and outward vessel or aircraft berthing or landing at a place without a Customs establishment, or jettisoning or discharging
goods and articles at such a place owing to force majeure to fail to report to the Customs establishment nearby without justifiable
reasons.Article 15 For any of the following acts, the duty evaded shall be paid or the articles involved sent back, and a fine below the value of the
related articles may be imposed at the same time:1.for a person carrying or sending by post into or out of the territory articles exceeding Customs-specified quantity limits but of
small amount or value and intended for personal use to fail to declare them to the Customs;2.for a person carrying or sending by post articles into or out of the territory, to make untruthful declaration to the Customs or not
to accept Customs examination;3.to fail to take temporarily inward or outward articles exempted form Customs duties upon registration with the Customs out of or into
the territory in accordance with the regulations;4.for a person passing through the territory to leave the articles he carries in the territory without Customs approval.Article 16 Any of the following acts shall be subject to a fine below 1,000 yuan in RMB:1.to fail to notify the Customs in advance of the time of arrival of the inward or outward vessel, train or aircraft, the place of its
stay or any changes in such time and place without justifiable reasons;2.to open or damage the seals affixed by the Customs upon the articles without authorization;3.to violate the Customs law and regulations, so that the Customs cannot exercise or has to suspend control over the inward and outward
means of transport, goods and articles.Article 17 In case truthful report is made prior to Customs examination concerning the carrying or sending by post of articles prohibited by
the State from entering for leaving the territory into or out of the territory, the articles concerned shall be confiscated or sent
back in accordance with the regulations, and a fine may be imposed at the same time depending on circumstances.Article 18 Remission or mitigation of punishment may be applied to violations of Customs regulations if the case is of a minor nature or a confession
is made by the person involved. Punishments shall be exempted for acts violating the Customs regulations if the case is discovered
three years later.Chapter IV Handling of the Smuggling Acts and Acts Violating Regulations on Customs ControlArticle 19 Decisions of punishment for smuggling acts and acts violating regulations on Customs control shall be made by the director of the
Customs establishment.Article 20 Detention of goods, articles or means of transport by the Customs shall be made upon the issuance of the Detention Note. The form
of the Detention Note shall be uniformly determined by the General Administration of Customs.Article 21 In case that the goods, articles or means of transport cannot be detained or are not suitable for detention, a deposit or a mortgage
of an equivalent value may be required by the Customs from the person concerned or the person in charge of the means of transport.Article 22 The goods, articles and means of transport detained by the Customs in accordance with the regulations shall not be disposed of before
the verdict by a people’s court or the decision of punishment by the Customs comes into force. But in the case where goods and articles
are fresh and live, perishable or easy to become ineffective, the Customs may sell them, retain the proceeds and notify the owner
of the goods or the articles.article 23 Where it is established by the Customs after investigation that the deposits or remittances are obtained illegally from smuggling,
the Customs may notify, in writing the bank or the post office concerned, asking it to suspend the payment or delivery of such deposits
or remittances and inform the depositor or the remitter at the same time. The duration of the suspension shall not exceed 3 months.
The money shall be disposed of by the Customs in accordance with the Customs Law and the present Rules after the decision of punishment
made by the Customs has become effective.Article 24 Where an enterprise, an undertaking, a State department or a social organization violates Customs regulations, the Customs may, besides
imposing punishment upon the unit concerned, imposed a fine below 1,000 yuan in RMB on the person in charge and the person directly
answerable for the violation.Article 25 Where an enterprise, an undertaking, a State department or a social organization violates the Customs Law, the Customs may, according
to the seriousness of the case, suspend temporarily the preferential treatment of duty reduction or exemption it enjoys, deprive
it temporarily of the right of declaration to the Customs or revoke the Certificate for Declaration of the person in question.Article 26 After a decision of punishment is made upon a smuggling act or an act violating regulations on Customs control, the Customs shall
send a Notification of Punishment to the person in question. If the person in question finds the Customs decision of punishment unacceptable,
he may submit an appeal for reconsideration of the case to either the Customs establishment making the decision or to one at a higher
level, within 30 days of receipt of the notification of punishment; the Customs shall make a decision within 90 days of receipt of
the appeal and send a Decision of Reconsideration to the person in question. If the person in question finds the decision made after
the reconsideration still unacceptable, he may sue at a people’s court within 30 days of receipt of the decision. The person in question
may also sue directly at a people’s court within 30 days of receipt of the Notification of Punishment. Where string directly at the
people’s court is chosen, the person in question may not appeal to the Customs for reconsideration. The form of the Notification
of Punishment and the Decision of Reconsideration of the Customs shall be uniformly determined by the General Administration of Customs.Article 27 The Notification of Punishment or Decision of Reconsideration may be sent to the person in question by the Customs directly and signed
by him to acknowledge the receipt or sent by post. In the latter case, the date indicated on the registration receipt of the post
office shall be regarded as the day of receipt. A public announcement shall be made in case the delivery is impossible, and the announcement
shall be regarded equally as receipt.Article 28 If the person in question fails to appeal for reconsideration or sue at a people’s court in the specified time limit, the decision
of punishment shall enter into force. The fine, the illegal income and the sum of money equal to the value of the smuggled goods,
articles or smuggling means of transport which are confiscated in accordance with the regulations shall be paid within the time limit
specified in the decision of punishment of the Customs.Article 29 If the person punished by the Customs does not have a permanent residence in the territory, the fine, the illegal income and the sum
of money equal to the value of the smuggled goods, articles or smuggling means of transport which are confiscated in accordance with
the regulations shall be paid prior to his leaving of the territory. Where the person in question fails to accept the decision of
punishment by the Customs or cannot pay the amount of money prior to his leaving of the territory, a deposit or a mortgage of a value
equal to the amount of money to be paid, or a guarantee which is acceptable to the Customs shall be provided. Where the person in
question executes the decision of punishment by the Customs within the specified time limit, the Customs shall return the deposit
or the mortgage provided by him without delay and the guarantee shall cease right away.Article 30 Where the person in question refuses to execute the Customs decision and fails to appeal for a reconsideration of the case or sue
at a people’s court within the specified time limit, the Customs making the decision may confiscate the deposit provided by him or
take the goods, articles or means of transport detained or kept as a mortgage as substitutes for the money required by the decision
of punishment after an assessment made according to the current prices, or request the People’s Court for an enforced execution.Article 31 A fine imposed in accordance with these Rules shall not exempt the person in question from the payment of Customs duties and the completion
of the relevant Customs formalities specified by the laws and regulations in case the inward or outward goods, articles or means
of transport are not confiscated.Chapter V Supplementary ProvisionsArticle 32 The Customs personnel who abuse their powers and intentionally create difficulties or procrastinate the control and examination shall
be given a disciplinary sanction in accordance with the provisions governing the rewards and punishments of the personnel working
for government departments. Those who practice graft, neglect their duties or connive at smuggling shall be given a disciplinary
sanction in accordance with the provisions governing the rewards and punishments of the personnel working for the government department
or be subject to an investigation of criminal responsibility in accordance with the law, depending on the seriousness of the cases.Article 33 The following terms used in these Rules shall have the meanings hereunder assigned to them: “Articles” also include currencies, gold
and silver, and other negotiable securities; “Equivalent value” is based on the retail price of the similar product sold at the local
State-owned shops. Where such a price is not available, it shall be assessed and determined by the Customs; “Below” or “under” includes
the number itself.Article 34 The list of goods restricted by the State in importation or exportation shall be announced by the competent departments under the
State Council. The list of articles prohibited by the State from entering or leaving the territory shall be decided by the General
Administration of Customs in accordance with the Customs Law and other laws and regulations, together with relevant competent departments
under the State Council, and made public by the General Administration of Customs. The list of articles restricted by the State in
entering or leaving the territory shall be made public by the General Administration of Customs.Article 35 The right to interpret these Rules shall reside in the General Administration of Customs.Article 36 These Rules shall come into effect on July 1,1987.



 
The General Administration of Customs
1987-07-01

 






PROVISIONAL REGULATIONS FOR THE PROPORTION OF REGISTERED CAPITAL TO TOTAL AMOUNT OF INVESTMENT OF JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

PROVISIONAL RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON CONSTRUCTION TAX

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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