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Law of the People's Republic of China on Foreign-capital Enterprises

Source: Ministry of Commerce of PRC

Article 1 These measures are formulated in accordance with the Regulations for the Implementation of the Law of People's Republic of China on Chinese-foreign Equity Joint Ventures of the People's Republic of China and the Provisions of the State Council on the Encouragement of Foreign Investment to simplify the procedures for application of import and export licenses so as to facilitate the business operations of the enterprises with foreign investment.

Article 2 The enterprises with foreign investment shall apply for import licenses for equipment and other materials which are imported as investment of the foreign partners and require import licenses in accordance with the approved list of imported equipment and materials. The Chinese customs shall just examine the imported goods which do not require import licenses in accordance with the approved list of imported equipment and materials.

Article 3 The enterprises with foreign investment may import without import licenses machinery and other equipment (including those requiring import licenses), vehicles necessary for production (referred to as trucks for transport, special vehicles and vehicles for both passenger and cargo transport purposes), raw materials, fuel, spare parts, accessories and components which are needed in export-oriented production, and the customs shall inspect and release them in accordance with the documents approved for the establishment of the enterprises, contracts or import-export contracts. These imported equipment, production vehicles, materials and accessories can only be used by the enterprise itself and cannot be sold or transferred in China, in special cases, if the imported raw materials and parts or the products manufactured with imported raw materials or of the parts are sold in China, the enterprises have to go through import formalities in accordance with Article 4.

Article 4 The enterprises with foreign investment which need imports for the purpose of producing goods for domestic sales and domestic business transactions, must apply for import licenses every six months in accordance with the approved import plan if the equipment and vehicles for use in production, raw materials, fuel, spare parts, accessories and components to be imported are required for import licenses. The Chinese customs will examine and release those goods which do not require import licenses according to the documents and contracts approved for the establishment of the enterprises and the relevant contracts.

Article 5 The provincial departments of foreign economic relations and trade shall be responsible for issuing the import licenses for the non-production goods, if such goods require import licenses and are imported in a reasonable quantity by the enterprises with foreign investment for their own use.

Article 6 Enterprises with foreign investments to export their own made products which require export licenses, shall apply for export licenses every six months in accordance with the approved annual export plan.

Article 7 If enterprises with foreign investment export that they produce and the exports do not need export licenses, the Chinese customs will examine and release the goods according to the export contracts and other relevant documents.

Article 8 If enterprises with foreign investment export products which are not produced by themselves and require export licenses in order to ensure their foreign exchange balance of revenue and expenditure, export licenses will be issued in accordance with the approved documents. The Chinese customs will examine and release those products which do not require export licenses, according to the export contracts and other documents.

Article 9 Enterprises with foreign investment may apply for import and export licenses to the relevant authorities in charge of issuing licenses, in accordance with the licenses categories at different levels announced by the Ministry of Foreign Economic Relations and Trade.

Article 10 These measures shall enter into force as of the date of promulgation.