| (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 countries 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.
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.
(English Translations are for reference only)
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