Foreign Trade Law of The People's Republic of China

  • Source: Ministry of Commerce of PRC
  • 10/19/2022 16:33
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Adopted at the 7th Session of the Standing Committee of the 8th National People's Congress on 12 May 1994; revised at the 8th Session of the Standing Committee of the 10th National People's Congress and promulgated by Order No. 15 of the President of the People's Republic of China on 6 April 2004, and effective as of 1 July 2004.)

PART ONE GENERAL PROVISIONS

PART TWO FOREIGN TRADE OPERATORS

PART THREE IMPORT AND EXPORT OF GOODS AND TECHNOLOGY

PART FOUR INTERNATIONAL SERVICE TRADE

PART FIVE PRODUCTION OF INTELLECTUAL PROPERTY RIGHTS RELATED TO FOREIGN TRADE

PART SIX FOREIGN TRADE ORDER

PART SEVEN FOREIGN TRADE INVESTIGATION

PART EIGHT FOREIGN TRADE REMEDIES

PART NINE PROMOTION OF FOREIGN TRADE

PART TEN LEGAL LIABILITY

PART ELEVEN SUPPLEMENTARY PROVISIONS

PART ONE GENERAL PROVISIONS

  Article 1 This Law is formulated in order to further open up to the outside world, develop foreign trade, maintain order in foreign trade activities, protect the lawful rights and interests of foreign trade operators, and promote the healthy development of the socialist market economy.

  Article 2 This Law shall apply to foreign trade and the protection of intellectual property rights related to foreign trade.

  For the purposes of this Law, the term “foreign trade” shall refer to the import and export of goods and technology and trade in international services.

  Article 3 The State Council department in charge of foreign trade shall be in charge of foreign trade throughout the country in accordance with this Law.

  Article 4 The State shall implement a unified foreign trade system, encourage the development of foreign trade and safeguard fair and free foreign trade order.

  Article 5 The People's Republic of China shall promote and develop trade relations with other countries and regions based on the principles of equality and mutual benefit, conclude or accede to regional economic and trade agreements such as agreements on tariff alliance and free trade zone, and participate in regional economic organizations.

  Article 6 The People's Republic of China shall, in accordance with international treaties and agreements that it has concluded or acceded to, or based on the principles of mutual benefit and reciprocity, grant other signatories or acceding parties most favoured nation treatment or national treatment and any other treatment in regard to foreign trade.

  Article 7 If a country or region adopts sanctions, restrictions or other similar measures of a discriminatory nature in regard to trade against the People's Republic of China, the People's Republic of China may adopt corresponding measures against such country or region in accordance with actual circumstances.

  PART TWO FOREIGN TRADE OPERATORS

  Article 8 For the purposes of this Law, the term “foreign trade operators” shall refer to legal persons, other organizations or individuals that handle business registration or other practice procedures according to law and engage in foreign trade business activities in accordance with the provisions of this Law and other relevant laws and administrative regulations.

  Article 9 Foreign trade operators engaged in import and export of goods or technology shall handle registration of record filing with the State Council department in charge of foreign trade or its appointed organizations, except where laws, administrative regulations or the State Council department in charge of foreign trade stipulate(s) that registration of record filing is not necessary. Specific procedures for registration of record filing shall be formulated by the State Council department in charge of foreign trade. Where a foreign trade operator has not handled registration of record filing according to provisions, customs shall not handle customs declaration and inspection and release procedures for the imported and exported goods.

  Article 10 Engagement in international service trade shall comply with the provisions of this Law and other relevant laws and administrative regulations.

  Work units that engage in contracting of foreign projects or foreign labour cooperation shall possess the appropriate quality or qualifications. Specific procedures shall be formulated by the State Council.

  Article 11 The State may implement administration of State trading on the import and export of certain goods. Import and export business of goods subject to administration of State trading may only be operated by authorized enterprises, except where the State permits the import and export business of certain quantity of goods subject to administration of State trading to be operated by non-authorized enterprises. The catalogue of goods subject to administration of State trading and enterprises authorized to operate shall be determined, adjusted and announced by the State Council department in charge of foreign trade in conjunction with other relevant departments of the State Council.

  Customs shall not release the goods subject to administration of State trading that are imported or exported without authorization in violation of Paragraph One of this Article.

  Article 12 A foreign trade operator may, upon entrustment of another party, act as an agent on its behalf to conduct foreign trade business within the scope of business.

  Article 13 A foreign trade operator shall, in accordance with the regulations formulated by the State Council department in charge of foreign trade or other relevant departments of the State Council in accordance with the law, submit documents and information related to its foreign trade business activities to the relevant departments. The relevant departments shall maintain the confidentiality of the trade secrets of providers.

  PART THREE IMPORT AND EXPORT OF GOODS AND TECHNOLOGY

  Article 14 The State permits free import and export of goods and technology, except as otherwise stipulated in laws and administrative regulations.

  Article 15 The State Council department in charge of foreign trade may, based on the needs for monitoring import and export, implement automatic licensing for import and export on certain free import and export goods and announce the catalogue thereof.

  In the case of import and export goods subject to automatic licensing, where a consignee or consignor submits an application for automatic licensing before handling customs declaration procedures, the State Council department in charge of foreign trade or its appointed organizations shall grant licensing. Where the procedures for automatic licensing have not been completed, customs shall not release the goods.

  To import and export free import and export technology, registration for record filing of contracts shall be handled with the State Council department in charge of foreign trade or its appointed organizations.

  Article 16 The State may restrict or prohibit the import or export of relevant goods and technology for the following reasons:

  1. it is necessary to restrict or prohibit import or export in order to safeguard State security, public interests or public morals;

  2. it is necessary to restrict or prohibit import or export in order to protect human health or safety, the lives or health of animals and plants, and the environment;

  3. it is necessary to restrict or prohibit import or export in order to implement measures related to the import and export of gold and silver;

  4. it is necessary to restrict or prohibit export due to a shortage of domestic supply or in order to effectively protect natural resources that may be exhausted;

  5. it is necessary to restrict export due to limited capacity of the markets of importing countries or regions;

  6. it is necessary to restrict export due to serious chaos in the export operation order;

  7. it is necessary to restrict import in order to establish, or accelerate the establishment of, specific domestic industries;

  8. it is necessary to restrict the import of agricultural, animal husbandry and fishery products in any form;

  9. it is necessary to restrict import in order to safeguard the international financial position and the balance of payments of the country;

  10. other circumstances in which it is necessary to restrict or prohibit import or export in accordance with the provisions of laws and administrative regulations; and

  11. other circumstances in which it is necessary to restrict or prohibit import or export in accordance with the provisions of international treaties or agreements that the People's Republic of China has concluded or acceded to.

  Article 17 The State may, in order to safeguard State security, adopt any necessary measures on the import and export in relation to fission and fusion substances, and the goods and technology related to the substances from which these types of substances are derived, and the import and export in relation to arms, ammunition or other military materials.

  During war time or in order to safeguard world peace and security, the State may adopt any necessary measures regarding import and export of goods and technology.

  Article 18 The State Council department in charge of foreign trade in conjunction with other relevant departments of the State Council shall formulate, adjust and announce catalogues of goods and technology that are restricted or prohibited from import or export in accordance with Articles 16 and 17 hereof.

  The State Council department in charge of foreign trade may, independently or in conjunction with other relevant departments of the State Council, decide on an interim basis to restrict or prohibit the import or export of specific goods and technology other than those in the catalogues stipulated in the preceding paragraph within the scope stipulated in Articles 16 and 17 hereof, upon approval of the State Council.

  Article 19 The State shall implement administration in forms such as quota and licensing on goods the import or export of which is restricted. Technology the import or export of which is restricted shall be subject to licensing control.

  Goods and technology subject to quota or licensing control may only be imported or exported upon the permission of the State Council department in charge of foreign trade, independently or in conjunction with other relevant departments of the State Council, in accordance with the provisions of the State Council.

  The State may implement tariff quota control on certain import goods.

  Article 20 Quotas for import and export goods and tariff quotas shall be allocated by the State Council department in charge of foreign trade or other relevant departments of the State Council within their respective scope of authority and on the basis of the principles of openness, fairness, impartiality and efficiency. Specific procedures shall be formulated by the State Council.

  Article 21 The State shall implement a unified commodity quality evaluation system and carry out certification, inspection and quarantine of imported and exported commodities in accordance with the provisions of the relevant laws and administrative regulations.

  Article 22 The State shall implement administration of place of origin on imported and exported goods. Specific procedures shall be formulated by the State Council.

  Article 23 Where there are stipulations in other laws and administrative regulations on the restriction or prohibition of import and export of cultural relics, wild animals and plants and their products, etc., the stipulations of the relevant laws and administrative regulations shall prevail.

  PART FOUR INTERNATIONAL SERVICE TRADE

  Article 24 The People's Republic of China shall grant, in accordance with its commitments in regard to international service trade in international treaties or agreements to which it is a signatory or acceding party, market access or national treatment to other signatories or acceding parties in such treaties or agreements.

  Article 25 The Sate Council department in charge of foreign trade and other relevant departments of the State Council shall administer international service trade in accordance with the provisions of this Law and other relevant laws and administrative regulations.

  Article 26 The State may restrict or prohibit the relevant international service trade for any of the following reasons:

  1. restriction or prohibition is necessary in order to safeguard State security, public interests or public morals;

  2. restriction or prohibition is necessary in order to protect human health or safety, the lives or health of animals and plants, and the environment;

  3. restriction is necessary in order to establish, or accelerate the establishment of, specific domestic service industries;

  4. restriction is necessary in order to safeguard the balance of foreign exchange payments of the country;

  5. other circumstances in which restriction or prohibition is necessary in accordance with the provisions of laws and administrative regulations; and

  6. other circumstances in which restriction or prohibition is necessary in accordance with the provisions of international treaties or agreements that the People's Republic of China has concluded or acceded to.

  Article 27 The State may, in order to safeguard State security, adopt any necessary measures on international service trade in relation to military, and the international service trade in relation to fission and fusion substances, and the substances from which these types of substances are derived.

  During war time or in order to safeguard world peace and security, the State may adopt any necessary measures regarding international service trade.

  Article 28 The State Council department in charge of foreign trade in conjunction with other relevant departments of the State Council shall formulate, adjust and announce catalogues of market access to international service trade in accordance with Articles 26 and 27 hereof and the provisions of other relevant laws and administrative regulations.

  PART FIVE PRODUCTION OF INTELLECTUAL PROPERTY RIGHTS RELATED TO FOREIGN TRADE

  Article 29 The State shall protect intellectual property rights related to foreign trade in accordance with the laws and administrative regulations on intellectual property.

  Where imported goods infringe upon intellectual property rights and harm foreign trade order, the State Council department in charge of foreign trade may adopt measures such as prohibition of the import of goods produced or sold by the infringer within a certain time period.

  Article 30 Where an owner of intellectual property rights commits any one of the acts such as preventing licensees from inquiring about the validity of intellectual property rights specified in the licensing contract, giving compulsory package licence, stipulating terms of exclusive grant back rights in licensing contracts, thereby harming the order of fair competition in foreign trade, the State Council department in charge of foreign trade may adopt necessary measures to eliminate such harm.

  Article 31 Where any country or region fails to grant national treatment to the legal persons, other organizations or individuals of the People's Republic of China in regard to protection of intellectual property rights, or fails to provide sufficient and effective protection of intellectual property rights to goods, technology or services that originate from the People's Republic of China, the State Council department in charge of foreign trade may, in accordance with the provisions of this Law and other relevant laws and administrative regulations and, based on the international treaties and agreements that the People's Republic of China has concluded or acceded to, adopt necessary measures on trade with such country or region.

  PART SIX FOREIGN TRADE ORDER

  Article 32 In the course of foreign trade business activities, no act of monopoly that violates the provisions of laws and administrative regulations on anti-monopoly may be implemented.

  Where an act of monopoly is implemented in foreign trade business activities and the fair competition of the market is harmed thereby, the matter shall be handled in accordance with the provisions of laws and administrative regulations on anti-monopoly. If an illegal act specified in the preceding paragraph is committed and foreign trade order is harmed thereby, the State Council department in charge of foreign trade may adopt necessary measures to eliminate the harm.

  Article 33 In the course of foreign trade business activities, no acts of unfair competition such as selling commodities at an unfairly low price, colluding in the submission of tenders, publishing false advertisements and engaging in commercial bribery may be implemented.

  Implementation of acts of unfair competition in foreign trade business activities shall be handled in accordance with the provisions of laws and administrative regulations on unfair competition.

  Where an illegal act specified in the preceding paragraph has been committed and foreign trade order is harmed thereby, the State Council department in charge of foreign trade may adopt measures such as prohibition of the import and export of the relevant goods and technology by the business operator to eliminate the harm.

  Article 34 The following acts may not be committed in foreign trade activities:

  1. forging or altering marks of place of origin of imported and exported goods, or forging, altering or trading certificates of place of origin of imported and exported goods, import or export licences, certificates of import or export quotas, or other import and export supporting documents;

  2. obtaining export tax refunds by means of deception;

  3. smuggling;

  4. evasion of certification, inspection and quarantine stipulated in laws and administrative regulations; and

  5. other acts in violation of the provisions of laws and administrative regulations.

  Article 35 In the course of foreign trade business activities, foreign trade operators shall comply with the provisions of the State on foreign exchange control.

  Article 36 Where foreign trade order is harmed in violation of the provisions hereof, the State Council department in charge of foreign trade may announce to the public thereof.

  PART SEVEN FOREIGN TRADE INVESTIGATION

  Article 37 In order to safeguard foreign trade order, the State Council department in charge of foreign trade may, independently or in conjunction with other relevant departments of the State Council, conduct investigation of the following matters in accordance with the provisions of laws and administrative regulations:

  1. impact of import and export of goods, technology and international service trade on the domestic industry and its competitiveness;

  2. trade barriers of the relevant countries or regions;

  3. issues that require investigation for determining whether foreign trade remedial measures such as anti-dumping, anti-subsidy or safeguard measures shall be adopted according to law;

  4. acts of evasion of foreign trade remedial measures;

  5. issues related to the security and interest of the State in foreign trade activities;

  6. issues that require investigation for implementing Article 7, Paragraph Two of Article 29, Article 30, Article 31, Paragraph Three of Article 32 and Paragraph Three of Article 33 hereof; and

  7. other matters affecting foreign trade order that require investigation.

  Article 38 Initiation of foreign trade investigation shall be publicly announced by the State Council department in charge of foreign trade.

  Investigation may be conducted by means such as written questionnaire, hearings, on-site investigation and investigation through entrustment.

  The State Council department in charge of foreign trade shall, in accordance with investigation results, issue an investigation report or render a ruling on handling, and publish an announcement thereof.

  Article 39 Relevant work units and individuals shall provide cooperation and assistance during foreign trade investigation.

  When conducting foreign trade investigation, the State Council department in charge of foreign trade, other relevant departments of the State Council and their working personnel shall have the obligations of maintaining the confidentiality of the State secrets and trade secrets that come to their knowledge.

  PART EIGHT FOREIGN TRADE REMEDIES

  Article 40 The State may adopt appropriate foreign trade remedial measures in accordance with foreign trade investigation results.

  Article 41 Where products of another country or region imported into the market of China at prices lower than their normal value by way of dumping result in substantial injury or threat of substantial injury to a related domestic industry that has already been established, or substantially impede the establishment of a related domestic industry, the State may adopt anti-dumping measures to eliminate or mitigate such injury, threat of injury or impediment.

  Article 42 Where products of another country or region exported to the market of a third country at prices lower than their normal value result in substantial injury or threat of substantial injury to a related domestic industry that has already been established, or substantially impede the establishment of a related domestic industry, the State Council department in charge of foreign trade may, in response to applications by the domestic industries, conduct consultation with the government of the third country and request for its adoption of appropriate measures.

  Article 43 Where imported products that directly or indirectly accept specific subsidies granted in any form by the exporting countries or regions result in substantial injury or threat of substantial injury to a related domestic industry that has already been established, or substantially impede the establishment of a related domestic industry, the State may adopt anti-subsidy measures to eliminate or mitigate such injury, threat of injury or impediment.

  Article 44 Where a large increase in the quantity of imported products results in serious injury or threat of serious injury to a related domestic industry that produces similar or directly competitive products, the State may adopt necessary safeguard measures to eliminate or mitigate such injury or threat of injury, and may also provide necessary support to the domestic industry.

  Article 45 Where an increase in the services provided to China by service providers of another country or region results in injury or threat of injury to a related domestic industry that provides similar or directly competitive services, the State may adopt necessary remedial measures to eliminate or mitigate such injury or threat of injury.

  Article 46 Where a large increase in the import of certain products into the market of China due to restriction on import of a third country results in injury or threat of injury to a related domestic industry that has already been established, or substantially impede the establishment of a related domestic industry, the State may adopt necessary remedial measures to restrict the import of such products.

  Article 47 Where a country or region that has concluded or jointly acceded to an economic and trade treaty or agreement with the People's Republic of China violates the provisions thereof, leading to the loss of or damage to the interests that the People's Republic of China is entitled to according to such treaty or agreement, or impediment of the realization of goals thereof, the government of the People's Republic of China shall have the right to request the government of the relevant country or region to adopt appropriate remedial measures, and may suspend or terminate the performance of relevant obligations according to such treaty or agreement.

  Article 48 The State Council department in charge of foreign trade shall conduct bilateral or multilateral consultation, negotiation and resolution of disputes regarding foreign trade in accordance with the provisions of this Law and other relevant laws.

  Article 49 The State Council department in charge of foreign trade and other relevant departments of the State Council shall establish an alarm and contingency mechanism for import and export of goods, technology and international service trade, in order to cope with sudden and unusual circumstances in foreign trade activities and safeguard State economic security.

  Article 50 The State may adopt counter-evasion measures against acts of evasion of the foreign trade remedial measures stipulated herein.

  PART NINE PROMOTION OF FOREIGN TRADE

  Article 51 The State shall formulate foreign trade development strategies and establish and improve the mechanism for promotion of foreign trade.

  Article 52 The State shall establish and improve financial institutions serving foreign trade operations, and establish foreign trade development funds and risk funds in accordance with the needs of the development of foreign trade.

  Article 53 The State shall use import and export credits, export credit insurance, export tax refunds and other methods for promoting foreign trade to develop foreign trade.

  Article 54 The State shall establish foreign trade public information service system to provide information services to foreign trade operators and other public.

  Article 55 The State shall adopt measures to encourage the exploration of international markets by foreign trade operators, and shall use various means such as overseas investment, contracting of foreign projects and foreign labour cooperation to develop foreign trade.

  Article 56 Foreign trade operators may establish and join relevant associations and chambers of commerce in accordance with the law.

  The relevant associations and chambers of commerce shall abide by laws and administrative regulations, provide their members with services related to foreign trade in areas such as production, marketing, information and training according to the articles of association, bring coordination and self-discipline into full play, submit applications for foreign trade remedial measures according to law, safeguard the interests of members and the industry, put forward the suggestions of the members in relation to foreign trade to the relevant departments of the government, and engage in foreign trade promotion activities.

  Article 57 Chinese organizations for the promotion of international trade shall, in accordance with their articles of association, develop foreign networks, hold exhibitions, provide information and consultancy services and engage in other foreign trade promotion activities.

  Article 58 The State shall support and promote the engagement in foreign trade by small- and medium-sized enterprises.

  Article 59 The State shall support and promote the development of foreign trade in autonomous regions of ethnic minorities and in economically underdeveloped areas.

  PART TEN LEGAL LIABILITY

  Article 60 Where, in violation of Article 11 hereof, goods subject to administration of State trading are imported or exported without authorization, the State Council department in charge of foreign trade or other relevant departments of the State Council shall impose a fine of less than Rmb 50,000. Where the circumstances are serious, the department(s) may, within three years from the effective date of the decision on administrative penalty, refuse to accept applications for engaging in import and export business of goods subject to administration of State trading of the perpetrator, or revoke the authorization already granted to such perpetrator for engaging in import and export of other goods subject to administration of State trading.

  Article 61 Where goods that are prohibited from import and export are imported or exported, or goods under restriction of import and export are imported or exported without authorization, such act shall be handled and penalized by customs according to the provisions of the relevant laws and administrative regulations. Where a criminal offence is constituted, criminal liability shall be pursued according to law.

  Where technology that is prohibited from import and export is imported or exported, or technology under restriction of import and export is imported or exported without authorization, such act shall be handled and penalized according to the provisions of the relevant laws and administrative regulations. Where there are no stipulations in laws or administrative regulations, the State Council department in charge of foreign trade shall order rectification, confiscate the illegal income, and impose a fine of not less than one time and not more than five times of the illegal income. Where there is no illegal income or the illegal income is less than Rmb 10,000, a fine of not less than Rmb 10,000 and not more than Rmb 50,000 shall be imposed. Where a criminal offence is constituted, criminal liability shall be pursued according to law.

  Beginning from the effective date of the decision on administrative penalty or the effective date of the decision on criminal penalty specified in the two preceding paragraphs, the State Council department in charge of foreign trade or other relevant departments of the State Council may refuse to accept applications for import and export quota or licence of the perpetrator within three years, or prohibit the perpetrator to engage in import and export business activities related to the relevant goods and technology for a period of not less than one year and not more than three years.

  Article 62 In the case of engagement in prohibited international service trade or engagement in restricted international service trade without authorization, such act shall be penalized according to the provisions of the relevant laws and administrative regulations. Where there are no stipulations in laws or administrative regulations, the State Council department in charge of foreign trade shall order rectification, confiscate the illegal income, and impose a fine of not less than one time and not more than five times the illegal income. Where there is no illegal income or the illegal income is less than Rmb 10,000, a fine of not less than Rmb 10,000 and not more than Rmb 50,000 shall be imposed. Where a criminal offence is constituted, criminal liability shall be pursued according to law.

  The State Council department in charge of foreign trade may prohibit perpetrators to engage in the relevant international trade service business activities for a period of not less than one year and not more than three years from the effective date of the decision on administrative penalty or the effective date of the decision on criminal penalty specified in the preceding paragraph.

  Article 63 Violation of Article 34 hereof shall be penalized according to the provisions of the relevant laws and administrative regulations. Where a criminal offence is constituted, criminal liability shall be pursued according to law.

  The State Council department in charge of foreign trade may prohibit perpetrators to engage in the relevant foreign trade business activities for a period of not less than one year and not more than three years from the effective date of the decision on administrative penalty or the effective date of the decision on criminal penalty specified in the preceding paragraph.

  Article 64 Where a foreign exchange operator is prohibited from engaging in the relevant foreign trade business activities according to Articles 61 to 63 hereof, customs shall not handle the procedures for customs declaration and inspection and release for the relevant imported and export goods of such foreign trade operator according to the prohibition decision rendered by the State Council department in charge of foreign trade; and the foreign exchange administrative department or designated foreign exchange banks shall not handle the relevant procedures for settlement and sale of foreign exchange, within the prohibition period.

  Article 65 Where working personnel responsible for foreign trade administration work according to this Law are derelict in their duties, practise graft or abuse their power, and a criminal offence is constituted thereby, criminal liability shall be pursued according to law. Where it is insufficient to constitute a criminal offence, administrative penalty shall be imposed according to law.

  Where working personnel responsible for foreign trade administration work according to this Law take advantage of their position to extort property from other parties or illegally accept property from other parties to seek benefits for such parties, and a criminal offence is constituted thereby, criminal liability shall be pursued according to law. Where it is insufficient to constitute a criminal offence, administrative penalty shall be imposed according to law.

  Article 66 Where a party involved in foreign trade business activities is dissatisfied with a specific administrative act of the department responsible for foreign trade administrative work according to this Law, it may apply for administrative review or institute an administrative action at a people's court according to law.

  PART ELEVEN SUPPLEMENTARY PROVISIONS

  Article 67 Where there are other stipulations in laws or administrative regulations on the administration of foreign trade relating to military materials, fission and fusion substances or substances that derive from these types of substances, and the administration of import and export of cultural products, such stipulations shall prevail.

  Article 68 The State shall adopt flexible measures to grant preferential treatment and convenience to promote trade between border regions of China and neighbouring countries and trading between border residents at fairs within each other's territories. Specific procedures shall be formulated by the State Council.

  Article 69 This Law shall not apply to separate tariff zones of the People's Republic of China.

  Article 70 This Law shall be implemented as of 1 July 2004.

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