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Circular of the State Council on Issues Covering Border Trade
(Promulgated by the State Council on January 3, 1996)

[Preamble]

1.Issues on the administrative forms of the border trade

2.Issues on tariffs and import duties of border trade.

3.Issues on import and export administration of border trade in small amount

4.Issues on administration of import and export commodities under economic and technical cooperation between the border areas and their neighboring countries.

5.* Issues on strengthening administration of border trade

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China - Circular of the State Council on Issues Covering Border Trade, 1996

MOFTEC

copy @ Lex Mercatoria

Circular of the State Council on Issues Covering Border Trade
(Promulgated by the State Council on January 3, 1996)

3.Issues on import and export administration of border trade in small amount

The operation rights of an enterprise engaged in border trade in small amount shall be examined and approved by the border provinces and autonomous regions based n the operational qualifications and conditions formulated by MOFTEC as well as within the numbers of enterprises authorized. The list of enterprises engaged in border trade in small amount must be reported to MOFTEC for verification and approval and reported to the concerned departments of the State Council for record are not allowed to conduct border trade in small amount. In principle, operation of border trade in small amount will not be restricted by the forms of trade and business scope.

The border provinces and autonomous regions are allowed to designate 1ยกª2 enterprises engaged in border trade in small amount to export to those land neighboring countries the commodities produced locally and jointly conducted by the companies authorized by the state. and to import the commodities handled exclusively by the companies designated by the state. The list enterprises engaged in those business must be reported to the MOFTEC for verification and approval.

Except for those commodities that are subject to unified tender nationwide and required to be jointly conducted or chemicals that may be commonly used for military and civil purpose as well as chemicals from which poison is easily made, No quota or license is needed for the enterprises engaged in border trade in small amount to export the commodities that are under quota and license administration by the state, but the MOFTEC and the State Planning Commission shall adopt macro administration over such business, Within the trade volume stipulated by MOFTEC, the Customs shall release goods according to the export contracts of the enterprises and the documents issued by the foreign trade and economic administrative departments of the border provinces and autonomous regions.

The State Planning Commission and the State Economic and Trade Commission (the Office for Import and Export of Machinery and Electronic Products ) shall specially allocate certain quantity of import quotas annually in connection with border trade in small amount based on the situation of the previous years importation and demand and supply in domestic market. Within the set quota, the foreign trader and economic administrative departments of the border provinces and autonomous regions authorized By MOFTEC shall be responsible for issuing import license. The commodities under the quota administration of the state imported by the enterprises in the business of border trade in small amount shall be released by the Customs upon the quota certificates and import license issued by the foreign trade and economic administrative departments of the border provinces and autonomous regions. Proper simplified procedures shall also be introduced for the commodities under special and registration administration imported by the enterprises engaged in border trade in small amount. Detailed rules shall be promulgated by the State Planning Commission (the Office for Import and Export of Machinery and Electrical Products ) in consultation with concerned departments.


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