Chapter V Foreign Trade Order

Article 27 In foreign trade activities, foreign trade dealers shall operate their business in accordance with law and abide by the principle of fair competition, and are prohibited from the following acts:
1. Forgery, distortion or trading of certificates of country of origin and import or export licenses;
2. Infringement on the intellectual property rights protected by the laws of the People's Republic of China;
3. Squeezing out competitors with undue conducts of competition;
4. Defrauding the State of refunded tax on exports;
5. Other acts contrary to the provisions of laws and administrative regulations.

Article 28 In foreign trade activities, foreign trade dealers shall settle and use foreign exchanges in accordance with relevant regulations of the State.

Article 29 Where a product is imported in such increased quantities as to cause or threaten to cause serious injury to domestic producers of like or directly competitive products, the State may take necessary safeguard measures to remove or ease such injury or threat of injury.

Article 30 Where a product is imported at less than normal value of the product and causes or threatens to cause material injury to an established domestic industry concerned, or materially retards the establishment of a particular domestic industry, the State may take necessary measures in order to remove or ease such injury or threat of injury or retardation.

Article 31 Where an imported product is subsidized in any form directly or indirectly by the country of export and causes or threatens to cause material injury to an established domestic industry concerned or materially retards the establishment of a domestic industry, the State may take necessary measures in order to remove or ease such injury or threat of injury or retardation.

Article 32 In the events referred to in Article 29, Article 30 and Article 31, the authority or agency designated by the State Council shall conduct investigations and make determinations in accordance with relevant laws and administrative regulations.

Chapter VI Promotion of Foreign Trade

Article 33 The State shall establish and improve financial institutions for foreign trade and establish funds for foreign trade development and risk as the development of foreign trade requires.

Article 34 The State may take foreign trade promotion measures such as import or export credit and export tax refund for the purpose of the development of foreign trade.

Article 35 Foreign trade dealers may establish or join Chambers of Commerce for Importers and Exporters in accordance with law.

Chambers of Commerce for Importers and Exporters shall abide by relevant laws and administrative regulations, coordinate and guide the foreign trade activities of their members under their Articles of Association, provide advisory services, report to the relevant authorities of the Government the suggestions of their members with respect to foreign trade promotion, and actively promote foreign trade.

Article 36 The international trade promotion organization of China shall, in accordance with its Articles of Association, engage in development of foreign trade relations, sponsor exhibitions, provide information and advisory services and carry out other foreign trade primitive activities.

Article 37 The State shall support and promote the development of foreign trade in national autonomous areas and economically under - developed areas.

Chapter VII Legal Liabilities

Article 38 Anyone who smuggles goods that are subject to import or export prohibitions or restrictions, and hereby commits criminal offenses, shall be subject to criminal prosecution pursuant to the Supplementary Decision on the Punishment of Smuggling Crimes. Those offenses of smuggling which do not constitute crimes shall be subject to sanctions under the provisions of the Customs Law. In addition, the authority responsible for foreign trade and economic relations under the State Council may withdraw the foreign trade operation permit of the offender in question.

Article 39 Anyone who commits forgery, distortion of certificates of country of origin or license for import or export shall be subject to criminal prosecution under Article 167 of the Criminal Law. Anyone who commits trading of certificates of country of origin or license for import or export or trading of forged or distorted certificates of country of origin of license for import or export shall be subject to criminal prosecution in the light of Article 167 of the Criminal Law.

Where the criminal offenses referred to in the preceding paragraph are committed by an entity, the entity in question shall be imposed fine while the persons in charge of the entity directly responsible for the offenses and other persons directly responsible for the offenses shall be subject to criminal prosecutions in accordance with or in the light of Article 167 of the Criminal Law. In addition, the authority responsible for foreign trade and economic relations under the State Council may withdraw the foreign trade operation permit of the entity in question.

Anyone who knowingly uses forged or distorted import or export license in importing or exporting goods shall be imposed sanctions in accordance with the provisions of Article 38 of this Law.

Article 40 Anyone who imports or exports technologies that are subject to import or export prohibitions or restrictions in violation of this Law and commits criminal offenses, shall be subject to criminal prosecutions in the light of the Supplementary Decision of the Punishment of Smuggling Crime.

Article 41 Personnel serving in the State's foreign trade authorities who commit any neglect of duty, malpractice, irregularities or abuse of power, which constitute criminal offenses, shall be subject to criminal prosecutions pursuant to law; as to those offenses which do not constitute crimes, administrative sanctions shall apply.

Personnel serving in the State's foreign trade authorities who extort property from others with job convenience or illegally receive others' property and seek advantages for them in return and thus commit criminal offenses shall be subject to criminal prosecutions in accordance with the Supplementary Decision on the Punishment of Embezzlement and Bribery Crimes; where such conducts do not constitute criminal offenses, administrative sanctions shall apply.

Chapter VIII Final Provisions

Article 42 The State applies flexible measures, provides favorable conditions and convenience to the trade between the towns on the frontier and those towns of neighboring countries on frontier as well as trade among border residents. Detailed rules are to be laid down by the State Council.

Article 43 This Law shall not apply to the separate customs territories of the People's Republic of China.

Article 44 This Law shall enter into force as of July 1st, 1994.