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FOREIGN TRADE LAW OF THE PEOPLE'S REPUBLIC OF CHINA
the Standing Committee of National People's
Congress
April 6, 2004
Content
Chapter 1 General Provisions
Chapter2 Foreign Trade Dealers
Chapter 3 Import and Export of Goods and Technologies
Chapter 4 International Trade in Services
Chapter 5 Protection of Trade-related Aspects of Intellectual Property
Rights
Chapter 6 Foreign Trade Order
Chapter 7 Foreign Trade Investigations
Chapter 8 Foreign Trade Remedies
Chapter 9 Foreign Trade Promotion
Chapter 10 Legal Liabilities
Chapter 11 Supplementary Provisions
Chapter 1 General Provisions
Article 1 This Law is formulated with a view
to expanding the
opening to the outside world, developing foreign trade, maintaining
foreign trade order, protecting the legitimate rights and interests
of foreign trade dealers and promoting the sound development of the
socialist market economy.
Article 2 This Law applies to foreign trade
and the protection of
trade-related aspects of intellectual property rights. For the
purposes of this Law, "foreign trade" refers to import and export of
goods and technologies and the international trade in services.
Article 3 The authority responsible for
foreign trade 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 pursue a uniform foreign trade regime,
encourage the development of foreign trade and maintain fair and
free foreign trade order.
Article 5 The people's Republic of China
shall, on the principle of
equality and mutual benefit, promote and develop trade relations
with other countries and regions, enter into or participate in such
regional economic trade agreements as customs union agreement, free
trade agreement and participate in regional economic organizations.
Article 6 The People's Republic of China
shall, in accordance with
the international treaties and agreements to which it is a
contracting party or a participating party grant the other
contracting parties or participating parties, or on the principle of
reciprocity grant the other party most-favored-nation treatment or
national treatment in the field of foreign trade.
Article 7 In the event that any country or
region applies
prohibitive, restrictive or other like measures on a discriminatory
basis 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 2 Foreign Trade Dealers
Article 8 For the purposes of this Law, "foreign trade dealers"
refers to legal persons, other organizations or individuals that
have fulfilled the industrial and commercial registration or other
practicing procedures in accordance with laws and engage in foreign
trade dealings in compliance with this Law and other relevant laws
and administrative regulations.
Article 9 Foreign trade dealers engaged in import and export of
goods or technologies shall register with the authority responsible
for foreign trade under the State Council or its authorized bodies
unless laws, regulations and the authority responsible for foreign
trade under the State Council do not so require. The specific
measures for registration shall be laid down by the authority
responsible for foreign trade under the State Council.
Where foreign trade dealers fail to register as required, the
Customs authority shall not process the procedures of declaration,
examination and release for the imported and exported goods.
Article 10 The international trade in services shall be carried out
in compliance with the provisions of this Law and other relevant
laws and administrative regulations. The units engaged in foreign
contract of construction project or foreign labor cooperation shall
be equipped with corresponding eligibility or qualification. The
specific measures therefore shall be laid down by the State Council.
Article 11 The State may implement state trading on certain goods.
The import and export of the goods subject to state trading shall be
operated only by the authorized enterprises unless the state allows
the import and export of certain quantities of the goods subject to
state trading to be operated by the enterprises without
authorization. The lists of the goods subject to state trading and
the authorized enterprises shall be determined, adjusted and made
public by the authority responsible for foreign trade under the
State Council in conjunction with other relevant authorities under
the State Council. In the event of importation of the goods subject
to state trading without authorization in violation of paragraph 1
of this Article, the Customs shall not grant release.
Article 12 Foreign trade dealers may accept the authorization of
others and conduct foreign trade as an agent within its scope of
business.
Article 13 Foreign trade dealers shall, in accordance with the
regulations laid down by the authority responsible for foreign trade
under the State Council or other relevant authorities under the
State Council in accordance with law, submit the documents and
materials relevant to their foreign trade dealings to relevant
authorities. The authorities concerned shall keep business secrets
confidential for the providers thereof.
Chapter 3 Import and Export of Goods and Technologies
Article 14 The State permit free import and export of goods and
technologies unless the laws or administrative regulations provide
otherwise.
Article 15 The authority responsible for foreign trade under the
State Council may, in accordance with the need to supervise import
and export, implement automatic import and export licensing certain
goods subject to free import and export and make public the list
thereof.
Where the consignee or the consigner of the imported or exported
goods subject to automatic licensing submits the automatic licensing
application before going through the Customs declaration procedures,
the authority responsible for foreign trade under the State Council
or its authorized authorities shall grant approval.
In case of failure to accomplish automatic licensing procedures, the
Customs shall not grant release. In the case of importing or
exporting technologies subject to free import and export, the
contracts thereof shall be registered with the authority responsible
for foreign trade under the State Council or its authorized
authorities.
Article 16 The State may restrict or prohibit the import or export
of relevant goods and technologies for the following reasons that:
(1) the import or export needs to be restricted or prohibited in
order to safeguard the state security, public interests or public
morals,
(2) the import or export needs to be restricted or prohibited in
order to protect the human health or security, the animals and
plants life or health or the environment,
(3) the import or export needs to be restricted or prohibited in
order to implement the measures relating to the importations and
exportations of gold or silver,
(4) the export needs to be restricted or prohibited in the case of
domestic shortage in supply or the effective protection of
exhaustible natural resources,
(5) the export needs to be restricted in the case of the limited
market capacity of the importing country or region,
(6) the export needs to be restricted in the case of the occurrence
of serious confusion in the export operation order,
(7) the import needs to be restricted in order to establish or
accelerate the establishment of a particular domestic industry,
(8) the restriction on the import of agricultural, animal husbandry
or fishery products in any form is necessary,
(9) the import needs to be restricted in order to maintain the
State's international financial status and the balance of
international payment,
(10) the import or export needs to be restricted or prohibited as
laws and administrative regulations so provide, or
(11) the import or export needs to be restricted or prohibited as
the international treaties or agreements to which the state is a
contracting party or a participating party so require.
Article 17 The State may, in the case of the import or export of the
goods and technologies relating to fissionable and fissionable
materials or the materials form which they are derived as well as
the import or export relating to arms, ammunition and implements for
war, take any measures as necessary to safeguard the state security.
The State may, in the time of war or for the protection of
international peace and security, take any measures as necessary in
respect of import or export of goods and technologies.
Article 18 The authority responsible for foreign trade under the
State Council in conjunction with other relevant authorities under
the State Council shall, in accordance with the provisions of
Articles 16 and 17 in this Law, establish, adjust and publish the
list of goods and technologies of which the import or export is
subject to restrictions or prohibitions.
The authority responsible for foreign trade under the State Council
independently or in conjunction with other relevant authorities
under the State Council may, with the approval from the State
Council, decide, on a temporary basis, to impose restrictions or
prohibitions on the import or export of goods and technologies not
included in the list provided in the above paragraph within the
meaning of Article 16 and Article 17 in this Law.
Article 19 Goods subject to import or export restriction 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 authorities responsible for foreign trade under the State
Council or the joint approval of the foregoing authorities and other
relevant authorities under the State Council in compliance with the
provisions of the State Council. Certain imported goods may be
subject to tariff rate quota control.
Article 20 Quotas and tariff rate quotas of the imported and
exported goods shall be distributed on the principles of
transparency, equity, impartiality and efficiency by the authority
responsible for foreign trade under the State Council or the
relevant authorities under the State Council within their respective
responsibilities. Specific measures for the distribution shall be
laid down by the State Council.
Article 21 The state shall implement the commodity assessment system
in a uniform manner and in accordance with the provisions of
relevant laws and administrative regulations carry out
certification, inspection or quarantine in respect of imported and
exported commodities.
Article 22 The state shall implement origin management in respect of
the imported and exported goods. Specific measures therefore shall
be laid down by the State Council.
Article 23 Where the import or export of cultural relics, wildlife
animals, plants and the products thereof are prohibited or
restricted by other laws or administrative regulations, the
provisions of relevant laws and regulations shall be observed.
Chapter 4 International Trade in Services
Article 24 In respect of international trade in services, the
People's Republic of China shall, in accordance with the commitments
made in 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 market
access and national treatment.
Article 25 The authority responsible for foreign trade under the
State Council in conjunction with other relevant authorities under
the State Council shall, pursuant to provisions of this Law and
other laws and administrative regulations, administer the
international trade in services.
Article 26 The State may impose restrictions and prohibitions on the
international trade in services for the reasons that:
(1) restrictions or prohibitions are needed to safeguard the state
security, public interests or public morals,
(2) restrictions or prohibitions are needed to protect the human
health or security, the animals and plants life or health or the
environment,
(3) restrictions are needed to establish or accelerate the
establishment of a particular domestic service industry,
(4) restrictions are needed to maintain the balance of international
payment of the state,
(5) restrictions or prohibitions are needed as laws and
administrative regulations so provide, or
(6) restrictions or prohibitions are needed as the international
treaties or agreements to which the state is a contracting party or
a participating party so require.
Article 27 The State may, in the case of military-related
international trade in services, as well as the international trade
in services relating to fissionable and fissionable materials or the
materials form which they are derived, take any measures as
necessary to safeguard the state security. The state may, in the
time of war or for the protection of international peace and
security, take any measures as necessary in respect of international
trade in services.
Article 28 The authority responsible for foreign trade under the
State Council in conjunction with other relevant authorities under
the State Council shall, in accordance with the provisions of
Articles 26 and 27 in this Law and other relevant laws and
administrative regulations, determine, adjust and publish the market
access list of international trade in services.
Chapter 5 Protection of Trade-Related Aspects of Intellectual
Property Rights
Article 29 The State shall, in accordance with laws and
administrative regulations relevant to intellectual property rights,
protect trade-related aspects of intellectual property rights. Where
the imported goods infringe intellectual property rights and impair
foreign trade order, the authority responsible for foreign trade
under the State Council may take such measures as prohibiting the
import of the relevant goods from being produced or sold by the
infringe within a certain period.
Article 30 Where the intellectual property right owner is involved
in any one of such practices as preventing the licensee form
challenging the validity of the intellectual property right in the
licensing contract, conducting coercive package licensing or
incorporating exclusive grantback conditions in the licensing
contract, which impairs the fair competition order of foreign trade,
the authority responsible for foreign trade under the State Council
may take measures as necessary to eliminate such impairment.
Article 31 If other countries or regions do not grant the legal
persons, other organizations and individual from the People's
Republic of China national treatment in respect of the protection of
intellectual property rights, or cannot provide adequate and
effective protection of intellectual property rights for the goods,
technologies or services from the People's Republic of China, the
authority responsible for foreign trade under the State Council may,
in accordance with the provisions of this Law and other relevant
laws and administrative regulations and the international treaties
or agreements to which the People's Republic of China is a
contracting party or a participating party, take measures as
necessary in respect of the trade with the country or region in
question.
Chapter 6 Foreign Trade Order
Article 32 In foreign trade dealings, monopolistic behavior in
violation of relevant provisions of anti-monopoly laws and
administrative regulations is not allowed. In foreign trade
dealings, any monopolistic behavior with the effect of eliminating
market fair competition shall be disposed of in accordance with
relevant provisions of anti-monopoly laws and administrative
regulations.
Where any activities in violation of laws set forth in the former
paragraph occur with the effect of impairing foreign trade order,
the authority responsible for foreign trade under the State Council
may take measures as necessary to eliminate the impairment.
Article 33 In foreign trade activities, such unfair competition
activities as selling the products at unreasonable low prices,
colluding with each other in a tender, producing and releasing false
advertisements and conducting commercial bribery and others like are
not allowed.
Any unfair competitive practice conducted in the foreign trade
activities shall be disposed of in accordance with relevant laws and
administrative regulations against unfair competition. Where any
illegal activities as provided in the previous paragraph occur with
the effect of impairing foreign trade order, the authority
responsible for foreign trade under the State Council may take such
measures as prohibiting the dealer from importing and exporting
relevant goods and technologies to eliminate the impairment.
Article 34 The following practices are not allowed in foreign trade
activities:
(1) forgery, distortion of origin marks of the imported and exported
goods; forgery, distortion or trading of origin certificates of
imported or exported goods, import and export licenses, certificates
of import and export quota or any other certificate for import and
export;
(2) defrauding the State of the refunded tax on exports;
(3) smuggling;
(4) evading certification, inspection and quarantine inspection as
provided by laws and administrative regulations;
(5) other activities in violation of the provisions of laws and
administrative regulations.
Article 35 In foreign trade activities, foreign trade dealers shall
act in compliance with relevant provisions of foreign exchange
administration of the state.
Article 36 The authority responsible for foreign trade under the
State Council may give a notice to the public the activities in
violation of this Law for impairing foreign trade order.
Chapter 7 Foreign Trade Investigation
Article 37 In order to maintain the foreign trade order, the
authority responsible for foreign trade under the State Council may
carry out investigations on the following matters in accordance with
laws and administrative regulations at its disposal or in
conjunction with other relevant administrations:
(1) the impact on the domestic industry as well as the competitive
strengths of import and export of goods, import and export of
technologies and international trade in services;
(2) trade barriers of relevant countries or regions;
(3) matters needed to be investigated on in order to determine
whether such foreign trade remedies as anti-dumping, countervailing
or safeguard measures shall be taken;
(4) activities that circumvent foreign trade remedies;
(5) matters in relation to state security in foreign trade;
(6) matters needed to be investigated on in order to enforce the
provisions of Articles 7, 29 (2),30,31,32 (3) and 33 (3).
(7) Other matters which may have impact on foreign trade order and
need to be investigated on.
Article 38 The authority responsible for foreign trade shall give a
notice in case of initiating foreign trade investigations. The
investigation may take the form of questionnaires in writing,
hearings, on-the-spot investigations, entrusted investigations and
otherwise.
The authority responsible for foreign trade under the State Council
shall, on the basis of the findings, submit investigation reports or
make determinations and give public notices.
Article 39 Relevant units and individuals shall provide the foreign
trade investigation with cooperation and assistance.The authority in
charge of foreign trade and other authorities under the State
Council as well as their staff members shall have the obligation to
keep the state secrets and business secrets known to them
confidential during foreign trade investigations.
Chapter 8 Foreign Trade Remedies
Article 40 The State may take appropriate foreign trade remedies on
the basis of the findings of foreign trade investigation.
Article 41 Where a product from other countries or regions is dumped
into the domestic market at a price less than its normal value and
under such conditions as to cause or threaten to cause material
injury to the established domestic industries, or materially retards
the establishment of domestic industries, the State may take
anti-dumping measures to eliminate or mitigate such injury, threat
of injury or retardation.
Article 42 Where the export of a product from other countries or
regions to the market of a third country causes or threatens to
cause material injury to the established domestic industries, or
materially retards the establishment of domestic industries, the
authority responsible for foreign trade under the State Council may,
on the request of the domestic industries, carry out consultations
with the government of that third country and require it to take
appropriate measures.
Article 43 Where an imported product has directly or indirectly
accepts any specific subsidiary granted by the exporting country or
region and under such conditions as to cause or threaten to cause
material injury to the established domestic industries, or
materially retards the establishment of related domestic industries,
the State may take countervailing measures to eliminate or mitigate
such injury or threat of injury or retardation.
Article 44 Where a product is being imported in substantially
increased quantities and under such conditions as to cause or
threaten to cause serious injury to the domestic industry that
produces like or directly competitive products, the State may take
safeguard measures as necessary to eliminate or mitigate such injury
or threat of injury and provide the industry concerned with
necessary support.
Article 45 Where the increase of services provided to China by the
service suppliers from other countries or regions causes or
threatens to cause injury to the domestic industries that provide
like or directly competitive services, the State may take remedies
as necessary to eliminate or mitigate such injury or threat of
injury and provide such industry with necessary support.
Article 46 Where the restriction imposed by a third country on the
import of a certain product causes the increase in quantities of
such product imported into the domestic market and under such
conditions as to cause or threaten to cause injury to the
established domestic industry, or materially retards the
establishment of related domestic industries, the state may take
remedies as necessary to restrict the import of the product
concerned.
Article 47 Where any country or region that enters into or
participate in the economic and trade treaties or agreements with
the People's Republic of China deprives the People's Republic of
China of or impairs her interests under such treaties or agreements,
or hinders realization of the object of such treaties or agreements,
the People's Republic of China has the right to request the relevant
country or region to take appropriate remedies and has the right to
suspend or terminate its performance of relevant obligations in
compliance with relevant treaties and agreements.
Article 48 The authority responsible for foreign trade under the
State Council shall carry out bilateral or multilateral foreign
trade consultations, negotiations and settle disputes in accordance
with this Law and other relevant laws.
Article 49 The authority responsible for foreign trade under the
State Council and the other relevant authorities under the State
Council shall establish the pre-warning and emergency system for
import and export of goods, import and export of technologies and
international trade in services so as to cope with the unexpected
and unusual situations in foreign trade for the purpose of
safeguarding the economic security of the State.
Article 50 The State may take necessary anti-circumvention measures
against the activities circumventing the foreign trade remedies
provided under this Law.
Chapter 9 Foreign Trade Promotion
Article 51 The State formulates foreign trade expansion strategies,
establishes and improves the foreign trade promotion mechanism.
Article 52 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 53 The State may take such measures as import and export
credit, export credit insurance, export tax refund and other foreign
trade promotion measures for the purpose of developing foreign
trade.
Article 54 The State establishes the foreign trade public
information service system, providing foreign trade dealers and the
public with information services.
Article 55 The State shall take measures to encourage foreign trade
dealer to explore international market, and develop foreign trade by
adopting various forms such as foreign investment, foreign contract
of construction project and foreign labor cooperation.
Article 56 Foreign trade dealers may organize or participate in
relevant associations or chambers of commerce for importers and
exporters in accordance with the law. Relevant associations or
chambers of commerce shall abide by relevant laws and regulations,
provide in compliance with their
Articles of association their members with foreign trade related
services in aspects of manufacturing, marketing, information and
training, play a positive role in coordination and self-discipline,
submit applications for relevant foreign trade remedies, safeguard
the interests of their members and the industry, report to the
relevant authorities the suggestions of their members with respect
to foreign trade promotion, and actively promote foreign trade.
Article 57 The organization for the promotion of international trade
in China shall, in accordance with its
Articles of association, engage in developing foreign trade
relations, sponsoring exhibitions, providing information and
advisory services and carry out other foreign trade promotion
activities.
Article 58 The State shall support and facilitate the foreign trade
carried out by small and medium-sized enterprises with small or
middle scale.
Article 59 The State shall support and promote the development of
foreign trade in national autonomous areas and economically
under-developed areas.
Chapter 10 Legal Liabilities
Article 60 Anyone who imports or exports the goods subject to the
state trading without authorization in violation of Article 11 of
this Law may be imposed on a fine of not more than RMB 50,000 Yuan
by the authority responsible for foreign trade under the State
Council or other authorities under the State Council; if the
circumstances are serious, the aforesaid authorities may refuse to
accept the application submitted by the trade dealer in violation of
laws for carrying out imports or exports of the goods subject to
state trading within three years from the date the administrative
sanction decision takes effect or may withdraw the granted
authorization of import and export of goods subject to state
trading.
Article 61 Anyone who imports and exports the goods of which import
and export is prohibited, or imports and exports the goods of which
import and export is restricted without authorization shall be
disposed of and punished by the Customs in accordance with relevant
laws and administrative regulations; if the case constitutes a
crime, he shall be prosecuted for criminal liabilities in accordance
with the law.Anyone who imports and exports the technologies of
which import and export is prohibited, or imports and exports the
technologies of which import and export is restricted without
authorization shall be disposed of and punished in accordance with
relevant laws and regulations; Where no laws or regulations are
available to apply to such activities, the authority responsible for
foreign trade under the State Council shall order him to make a
rectification, confiscate the illegal proceeds and impose a fine
from one to five times the amount of the illegal gains.
If there are no illegal proceeds or the illegal proceeds are less
than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan
shall be imposed; if the case constitutes a crime, he shall be
prosecuted for criminal liabilities in accordance with the law. The
authority responsible for foreign trade under the State Council and
other relevant authorities under the State Council may, from the
date when the administrative sanction decision or criminal penalty
judgment takes effect as provided in paragraphs 1 and 2 of this
Article, refuse the applications for import and export quotas or
licenses submitted by the law-breaker, or prohibit the law-breaker
from engaging in the import and export of relevant goods and
technologies within a period from one to three years.
Article 62 Anyone who engages in the international trade in services
subject to prohibition or engages in international trade in services
subject to restriction without authorization shall be disposed of
and punished in accordance relevant laws and administrative
regulations; Where no laws or regulations are available to apply to
such activities, the authority responsible for foreign trade under
the State Council shall order him to make a rectification,
confiscate the illegal gains and impose a fine from one to five
times the amount of the illegal proceeds.
If there are no illegal proceeds or the illegal proceeds are less
than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan
shall be imposed; if the case constitutes a crime, he shall be
prosecuted for criminal liabilities in accordance with the law. The
authority responsible for foreign trade under the State Council may,
from the date when the administrative sanction decision or criminal
penalty judgment takes effect as provided in the previous paragraph
of this Article, prohibit the law-breaker from engaging in relevant
international trade in services within a period from one to three
years.
Article 63 Anyone who acts in violation of the provision of Article
34 of this Law shall be punished in accordance with relevant laws
and administrative regulations; if the case constitutes a crime, he
shall be prosecuted for criminal liabilities in accordance with the
law. The authority responsible for foreign trade under the State
Council may, from the date when the administrative sanction decision
or criminal penalty judgment takes effect as provided in the
previous paragraph of this Article, prohibit the law-breaker from
engaging in relevant foreign trade activities within a period from
one to three years.
Article 64 Where a foreign trade dealer is prohibited from engaging
in the relevant foreign trade activities in accordance with Articles
61-63, within the period of prohibition the Customs authority shall
not grant release to the relevant imported or exported goods of that
foreign trade dealer in accordance with the decision made by the
authority responsible for foreign trade under the State Council, and
the foreign exchange administration or designated foreign exchange
banks shall not process the procedures of selling and purchasing
foreign exchange.
Article 65 Any staff member serving in the authority responsible for
foreign trade in accordance with this Law who neglects his duty,
engages in malpractices for personal gains or abuses his power,
shall be prosecuted for criminal liabilities if the case constitutes
a crime, or shall be subject to administrative sanctions if the case
dose not constitute a crime in accordance with the law.
Any staff member serving in the authority responsible for foreign
trade in accordance with this Law, who extorts property from others
with job convenience or illegally accepts others' property and seeks
advantages for them in return shall be prosecuted for criminal
liabilities if the case constitutes a crime, or shall be subject to
administrative sanctions if the case does not constitute a crime in
accordance with the law.
Article 66 The parties in the foreign trade
activities may apply for
an administrative reconsideration or bring an administrative lawsuit
before a people's court in case of dissatisfaction with a specific
administrative act by the authority responsible for foreign trade
administration in accordance with this Law.
Chapter 11 Supplementary Provisions
Article 67 Where other laws or
administrative regulations provide
otherwise in respect of foreign trade administration of military
supplies, fissionable and fissionable materials or the materials
form which they are derived and import and export administration of
cultural products, the provisions thereof shall be observed.
Article 68 The State applies flexible
measures, provides
preferential conditions and conveniences to the trade between the
towns on the frontier and those towns of neighboring countries on
frontier as well as trade among border residents.Specific measures
therefore shall be laid down by the State Council.
Article 69 This Law shall not apply to the
separate customs
territories of the People's Republic of China.
Article 70 This Law shall come into force as
of July 1, 2004.
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