The import right of foreign-funded enterprises is only confined to the import within their legal business scope, they have no right to import on behalf of other enterprises and units. Imports of foreign-funded enterprises are detailed as below:

• Import by foreign enterprises for their investment, i.e., investment in kind like machinery, equipment and materials etc.
• Import by foreign enterprises attributed to production and business operations, i.e., materials, fuel, parts and components etc. needed in production and business operations of the enterprise.
• Import by foreign enterprises of articles not for production, i.e., article in reasonable quantities for their own use like article for office use, construction of enterprise, maintenance of equipment and increase of fixed asset of the enterprises.

Regulations concerning administration of import:

1. Equipment and materials imported as investment by foreign investors of foreign-funded enterprises do not fall within the category of commodities under the administration by import license and therefore will be examined and released by the customs according to the original approval list of importation of equipment and materials to be imported by the enterprises. In case the imported goods fall within the category of commodities under administration by import license, they will be examined and released by the customs according to the approved import list of equipment and materials after obtaining the import license by the foreign enterprise.

2.Imports(including those under administration of import license system) of machinery and equipment, vehicles for use in production(including trucks, special cars and wagon for passenger and freight transport), raw materials, fuel, spare parts in bulk, components, parts to complete the set etc. by foreign-funded enterprises for their need in production of products for export and business operation may be exempted from import licensing but should be under supervision of the customs and examined and released against documents of approval for the establishment of the enterprises and the approved contact and the import contract. As for imports for use in manufacture of products for domestic sales and for use in business operation in China, Approval from the Tianjin Municipal Commission of Foreign Economic Relations and Trade on the plan approved by the Ministry of Foreign Trade and Economic Cooperation shall be obtained before an license for those items under administration of import license system is issued by the authorities in charge of the issuance of import license.

The import license shall be obtained every six months. Commodities that do not fall under the administration of import license may be imported against the documents of approval for the establishment of the enterprise and the approval contract and released after examination by the customs.

3.Imports of nonproductive articles by foreign-funded enterprises in reasonable quantities and for their own use that fall under the administration of import license shall be approved by the Tianjin Municipal Commission of Foreign Economic Relations and Trade for the issuance of import license by the relative authorities in charge of issuance of licence. Article not falling under the administration of import licence imported may be examined and released by the customs against documents of approval for the establishment of the enterprise and the approval for the establishment of the enterprise and the approved contract(article of association). However, the nonproductive articles not covered by the original contract(articles of association) and the list for import of equipment can only be imported after approval by the Tianjin Municipal Commission of Foreign Economic Relations and Trade.

Administration of Export

Export by foreign-funded enterprises may be carried out in the following ways:

• Direct conclusion of business with foreign buyers and export by the enterprises.
• Sales and distribution by marketing organizations of their foreign partners on their behalf.
• Sales and distribution by various foreign trade corporations in China on their behalf.

Regulations concerning export of commodities under administration of export licence:

1.Export licence is to be issued for the export of commodities under administration of export license system by the quota affairs bureau of the Ministry of Foreign Trade and Economic Cooperation, various local special commissioner's offices of the Ministry of Foreign Trade and Economic relations and various commissions and departments of foreign economic relations and trade of provincial level respectively in line with relative regulations concerning release of license for export commodities under administration at different levels.

However, for foreign funded enterprises, export license can only be obtained after approval of the relative plan by the Ministry of Foreign Trade and Economic Cooperation no matter the commodities for export fall under administration of which level.

2.For commodities exported by foreign funded enterprises or under the name of compensation trade, maximum validity of the export license is 6 months, allowing repeated use up to 12 times, with the export quantity of each time to be written down by the customs.

Administration Export for Re-export of Products Processed with Imported Materials:

1.Except products forbidden to be exported without permission whose processing business still need to be reported to the Ministry of Foreign Trade and Economic Cooperation for examination and approval, processing business concerning other commodities may be conducted in accordance with the stipulations of "Administrative Measures of the General Administration of Customs of the People's Republic of China Pertaining to Export of Products Processed with Imported Materials", without any need to report the matter to the Ministry of Foreign Trade and Economic Cooperation for examination and approval.

2.With reference to export of products processed with imported materials, export license must be applied for and obtained for all commodities the export of which is under state administration with quota system in line with the export plan and allocation of quota of the state except steel, pig iron and zinc. As for processing with imported materials concerning steel, pig iron and zinc, the administrative unit should obtain export license on the strength of "Handbook for Processing with Imported Materials" and the sales contract for the export of processed products if the main material used in the processing are imported. The export quantities will not be counted under the annual plan and quota.

3.For export of other products processed with imported material under administration of quota system, the business unit shall obtain export license with the "Handbook for Procession with Imported Materials" and the export contract from the licensing authorities. Export of such products will not be counted under the annual plan and quota.

4.Relative provisions promulgated by The Ministry of Foreign Trade and Economic Cooperation will apply to the administration of export by foreign funded enterprises, processing with imported material, labor contracting, export of small complete plants, export of supplies by the International Economic and Technological Cooperative Corporation, export of exhibits, retail items in trade fairs and samples, and export under the name of economic aid and in connection with the "more or less" clause of shipment and in connection with matters relative to penalties for violations of the provisions.

Stipulations regarding the Inspection of Import and Export Goods

Mandatory Inspection:

The scope of mandatory inspection: inspection of all the goods for import and export enlisted for inspection by the commodity inspection organization; export food subject to quarantine tests; animal products subjects to quarantine tests for export; appraisal of the function and usage of packages and containers for export of hazardous goods; certification of transportation conditions of cargo holds and containers for export of decompose-prone food and frozen food; other imports and exports subject to commodity inspection as regulated by laws and stipulations and relevant international treaties.

Inspection Exemption:

Goods meeting the requirements for exemption stipulated by State Commodity Inspection Bureau are exempt: from, inspection upon approval. Inspection exemption can also be granted to samples, gifts, exhibits not for sale and other goods of a non-trade on the strength of evidence from relevant departments.

Quality Licensing:

For major import and export goods involving safety and sanitation, import licensing for safety and export licensing for quality are applied. No import or export of such goods is permitted without the license of the commodity inspection organizations. At present, export license for quality are issued for nine categories of goods and import licenses for safety are issued for 47 categories of goods.

Hygiene Registration System:

All plants and storehouses that produce, process and store export-oriented food in China must pass the verification test of the commodity inspection organs and obtain the hygiene registration or a certificate there of before they are allowed to produce, process, and store food for export.

Import Inspection for Import by Foreign funded Enterprises:

Goods imported for use by foreign funded enterprises are to be inspected by these enterprises themselves. Except for imports subject to mandatory in inspection and imports involving hygienic and safety issues, goods imported by Sino-foreign Equity or Contractual enterprises are to be inspected by these enterprises themselves. The equipment and objects imported at a prices as investments by foreign funded enterprises should be reported to and inspected by the commodity inspection organizations. Verification Certificates of Value serve as valid documents in formalities of capital verifications.

Priority Policy:

Imports and exports by foreign-funded enterprises enjoy priority when applying for inspection, appraisal, quality license, hygiene registration and GSP certificates of origin.