CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE ISSUE OF THE RELEVANT PROBLEMS ABOUT EXPANDING THE IMPORT AND EXPORT OPERATION RIGHTS OF ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning the Issue of the Relevant Problems about Expanding the
Import and Export Operation Rights of Enterprises with Foreign Investment

WaiJingMaoZiZi [2001] No.62

July 2,2001

The Committees (Departments and Bureaus) of Foreign Trade and Economic Cooperation of all provinces, autonomous Regions, municipalities
Directly under the central government and municipalities separately listed on the State plan:

This Circular is issued as follows to prepare for China’s access into the WTO and expand the trade rights of enterprises with foreign
investment.

1

Expanding the Export Operation Right of Manufacturing Enterprises with Foreign Investment

If manufacturing enterprises foreign investment can meet the following requirements, they are allowed to be engaged in purchase and
export of the commodities which are not controlled with quota, permit or exclusive rights, and may participate in the export quota
bidding for their self-manufactured products.

(1)

manufacturing enterprises with foreign investment with an annual export volume of over 10 million US Dollars.

(2)

No record of violation of laws or regulations concerning taxation, foreign currency and import and export for two consecutive years
before applications

(3)

With professionals in international trade

2

Expanding the Import Operation Right of Corporations with Foreign Investment whose Parent establishments are Manufacturing Groups.

Issues, involving the integrated products for imported systems or the imported products for trial sales of enterprises with foreign
investment, shall be dealt with in accordance with the Supplementary Provisions of the Ministry of Foreign Trade and Economic Cooperation
concerning Enterprises with Foreign Investment (2) (Ordinance 1 (2001) of the Ministry of Foreign Trade and Economic Cooperation).

3

Research with foreign investment and development centers are allowed to import and sell small quantities of high-tech products manufactured
by their parent establishments for the market tests of the products researched and developed by them.

(1)

The imported products manufactured by the parent establishments shall be the market test products of the research and development
projects being carried out by those centers.

(2)

Import quantities shall be suitable for market tests.

If manufacturing enterprises with foreign investment, enterprises with foreign investment or research with foreign investment and
development centers are engaged in the above import and export business, they shall apply to their original approval authorities
for the procedures of alteration of their business scopes.

Manufacturing enterprises with foreign investment, enterprises with foreign investment or research with foreign investment and development
centers shall report to the Ministry of Foreign Trade and Economic Cooperation for placing their transactions of the above import
and export business on files.