goldentianjin

(Adopted at the Seventh Session of the Standing Committee of the Eighth National People's Congress on May 12, 1994)

Chapter I Principles

Article 1 This Law is formulated with a view to developing the foreign trade, maintaining the foreign trade order and promoting a healthy development of the socialist market economy.

Article 2 Foreign trade as mentioned in this Law shall cover the import and export of goods, technologies and the international trade in services.

Article 3 The authority responsible for foreign trade and economic relations under the State Council is in charge of the administration of the foreign trade of the entire country pursuant to this Law.

Article 4 The State shall apply the foreign trade system on a uniform basis and maintain a fair and free foreign trade order in accordance with law.

The State encourages the promotion of its foreign trade, exercises the initiative of localities and safeguards the autonomy of business operation of the foreign trade dealers.

Article 5 The People's Republic of China promotes and develops trade ties with other countires and regions on the principles of equality and mutual benefit.

Article 6 The People's Republic of China shall, under international treaties or agreements to which the People's Republic of China is a contracting party or a participating party, grant the other contracting parties or participating parties, or on the principles of mutual advantage and reciprocity, grant the other party most - favored - nation treatment or national treatment within the field of foreign trade.

Article 7 In the event that any country or region applies discriminatory prohibition, restriction or other like measures against the People's Republic of China in respect of trade, the People's Republic of China may, as the case may be, take counter - measures against the country or region in question.

Chapter II Foreign Trade Dealers

Article 8 Foreign trade dealers as mentioned in this Law shall cover the legal entities and other organizations engaged in foreign trade dealings in compliance with the provisions of this Law.

Article 9 A foreign trade dealer who intends to engage in the import and export of goods and technologies shall fulfill the following requirements and acquire the permit from the authority responsible for foreign trade and economic relations under the State Council:

1. having its own name and corporate structure;
2. having definite scope of business in foreign trade;
3. having place of business, financial resources and professional personnel essential to the foreign trade dealings which it intends to engage in;
4. having a required record of import and export which were effected on its behalf or having necessary sources of goods for import or export:
5. other requirements provided in relevant laws and administrative regulations.

The detailed rules for the implementation of the preceding paragraph are to be laid down by the State Council.

The enterprises with foreign investment shall be exempt from the permit requirement provided in paragraph 1 with respect to their import of non-productive articles for their own use, import of equipment's and raw materials and other articles necessary for their production as well as the export of the products they produce under the relevant provisions of laws and administrative regulations governing enterprises with foreign investment.

Article 10 The establishment and operation of enterprises and organizations engaged in international trade in services shall be in compliance with the provisions of this Law and other relevant laws and administrative regulations.

Article 11 Foreign trade dealers shall enjoy full autonomy in their business operation and be responsible for their own profits and losses in accordance with law.

Article 12 In foreign trade activities foreign trade dealers should honor their contracts, ensure the quality of the commodity and perfect the after-sale services.

Article 13 Any organization or individual without foreign trade operation permit may entrust a foreign trade dealer located in China as it s agent to conduct its foreign trade business within the business scope of the latter.

The entrusted foreign trade dealer shall provide the principal with actual business information such as market situation, commodity prices and client position. The agent and the principal shall conclude and sign an agency agreement, in which the rights and obligations of both parties should be specified.

Article 14 Foreign trade dealers are obligated to provide documents and information in relation to their foreign trade dealings to the relevant authorities pursuant to the regulations of the authority responsible of foreign trade and economic relations under the State Council. The relevant authorities shall not disclose the business proprietary information provided by the dealers.

Chapter III Import and Export of Goods and Technologies

Article 15 The State allows free import and export of goods and technologies except where laws or administrative regulations provided otherwise.

Article 16 The State may impose restrictions on the import or export of goods and technologies in any of the following circumstances:

1. where the import or export shall be restricted in order to safeguard the national security or public interest;
2. where the export shall be restricted on account of domestic shortage in supply or effective protection of exhaustible domestic resources;
3. where the export shall be restricted due to the limited market capacity of the importing country or region; 4. where the import shall be restricted in order to establish or accelerate the establishment of a particular domestic industry;
5. where the restriction on the import of agricultural, animal husbandry or fishery products in any form is necessary;
6. where the import shall be restricted in order to maintain the State's international financial status and the balance of international payments;
7. where, as the international treaties or agreements to which the People's Republic of China is a contracting party or a participating party require, the import or export shall be restricted.

Article 17 The States prohibits the import or export of any goods or technologies in any of the following circumstances;

1. where such goods or technologies will endanger national security or public interest;
2. where the import or export of such goods or technologies must be prohibited in order to protect human life or health;
3. where such goods or technologies will disrupt the ecological environment;
4. where the import or export of such goods or technologies shall be prohibited in accordance with the provisions of international treaties or agreements to which the People's Republic of China is a contracting party or a participating party.

Article 18 The authority responsible for foreign trade and economic relations under the State Council shall, in collaboration with the relevant authorities under the State Council and in accordance with the provision of Article 16, Article 17 of this Law, formulate, adjust and publish the list of goods and technologies whose import or export are subject to restrictions or prohibitions.

Upon the approval of the State Council the authority responsible for foreign trade and economic relations under the State Council may, within the framework of Article 16 and Article 17, independently or in collaboration with the relevant authorities under the State Council determine, on a temporary basis, to impose restriction or prohibition on the import or export of particular goods or technologies not included in the list mentioned in the preceding paragraph.

Article 19 Goods whose import or export is restricted shall be subject to quota and /or licensing control; technologies whose import or export is restricted shall be subject to licensing control.

Import or export of any goods and technologies subject to quota and /or licensing control will be effected only with the approval of the authority responsible for foreign trade and economic relations under the State Council or the joint approval of the preceding authorities and other authorities concerned under the State Council in compliance with the provisions of the State Council.

Article 20 Import and export quotas of goods shall be distributed on the basis of the conditions including but not limited to the actual import or export performance and capability of the applicants in foreign trade dealings and on the basis of the principles of efficiency, impartiality, transparency and fair competition by the authority responsible for foreign trade and economic relations under the State Council or the relevant authorities under the State Council within their respective responsibilities.

The ways and means of the distribution of quotas are to be regulated by the State Council.

Article 21 Where the import or export of goods, articles such as cultural relics, wildlife animals, plants and the products there of are prohibited or restricted by other laws or administrative regulations, the provisions of the laws and regulations in question shall be observed.

Chapter IV International Trade in Service

Article 22 The State promotes the progressive development of the international trade in services.

Article 23 With respect to international trade in services, the People's Republic of China , pursuant to the commitments made in international treaties or agreements to which the People's Republic of China is a contracting party or participating party, grants the other contracting parties and participating parties market access and national treatment.

Article 24 The State may restrict international trade in services on the basis of any of the following considerations:

1. In order to safeguard the national security or public interest;
2. In order to protect the ecological environment;
3. In order to establish or accelerate the establishment of a particular domestic service industry;
4. In order to maintain the State*s balance of international payments;
5. Other restrictions provided in relevant laws and administrative regulations.

Article 25 The Sate prohibits any international trade in services which:

1. may endanger national security or public interests;
2. is contrary to the international obligations undertaken by the People's Republic of China;
3. is prohibited by relevant laws and administrative regulations.

Article 26 The authority responsible for foreign trade and economic relations under the State Council and relevant authorities under the State Council are responsible for the administration of international trade in services in accordance with this Law and other relevant laws and administrative regulations.

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