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China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996

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China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 MOFTEC Copyright © 1996 MOFTEC ii Contents Contents Article 16 5 Article 17 5 Chapter 1 - General Provisions 2 Article 1 2 Chapter 3 - Foreign Economic and Technical Coop- eration in Border Regions 6 Article 2 2 Article 18 6 Article 3 2 Article 19 6 Chapter 2 - Border Trade of Small Amount 3 Article 20 6 Article 21 6 Article 4 3 Article 22 7 Article 5 3 Article 23 7 Article 6 3 Article 24 7 Article 7 3 Article 25 7 Article 8 3 Article 26 7 Article 9 4 Article 10 4 Chapter 4 - Supplementary Provisions 9 Article 11 4 Article 27 9 Article 12 4 Article 28 9 Article 13 5 Article 29 9 Article 14 5 Article 30 9 Article 15 5 SiSU Metadata, document information 11 iii Contents 1 Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions (Promulgated by the Ministry of Foreign Trade Economic Cooperation and the Customs General Administration on March 29, 1996) 1 China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 2 Chapter 1 - General Provisions 3 Article 1 4 With a view to strengthening and standardizing the administra- tion on border trade of small amount and foreign economic and technical cooperation of border regions, preserving the normal operating order for border trade of small amount and techni- cal cooperation of border regions, and promoting the healthy and steady development of border trade, the present provisions are formulated according to the Circular of the State Council on Circular of the State Council on Certain Questions of Border Trade. 5 Article 2 6 The regions (hereinafter referred to as “the Border Regions”)which may conduct border trade of small amount and foreign eco- nomic and technical cooperation of border regions stipulated in the present Provisions refer to border counties (cities and ban- ners) which are linked with neigh boring countries with land fron- tier and the administrative areas of open border cities approved by the State Council. The list of counties (cities and banners)in the Border Regions is presented as “Appendix 1”. 7 Article 3 8 The national macro regulatory provisions concerning the ad- ministration of border trade of small amount and foreign eco- nomic and technical cooperation in border regions shall be stud- ied and formulated by the Ministry of Foreign Trade and Eco- nomic Cooperation(hereinafter referred to as MOFTEC)in col- laboration with other relevant departments under the State Coun- cil. 2 China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 9 Chapter 2 - Border Trade of Small Amount sent to MOFTEC for verification and be copied by MOFTEC to the Customs General Administration and relevant departments 10 Article 4 under the State Council for record. 11 Border trade of small amount stipulated in present Provisions is Article 7 16 defined as the trade activities, which are done through the bor- der land ports designated by the state and conducted by the en- The total number of enterprises doing border trade of small 17 terprises in the Border regions which have been accredited with amount shall be approved and determined according to the fol- the right to do border trade of small amount(hereinafter referred lowing principles: to as “enterprises doing border trade of small amount”),with the enterprises in the border regions and other trading organiza- 1.MOFTEC shall, in light of the GNP foreign trade volume and 18 tions in the neighboring countries. the actual situations of the border provinces and autonomous regions, determine the total number of border trade enterprises for small amount business. 12 Article 5 2.The foreign trade companies, barter trade companies, border 19 13 With regard to the commodities originated from the neighbor- trade companies and manufacturing enterprises which import ing countries imported through the border ports designated by and export by themselves, accredited with the right of import the state, the import duties and the import value-added taxes and export by MOFTEC and have registered in the industrial as well as consumption tax shall be deducted by 50% against and commercial departments in the border regions, are entitled the national tariff in the first 3 years of the Ninth Five-year to do border trade of small amount within their approved busi- Plan(1996-1998),with the exception of tobaccos, liquors, cos- ness lines. metics and other commodities on which such duties and taxes shall be fully levied according to the state regulations. The list Article 8 20 of above-mentioned commodities will be published by the Cus- toms General Administration. The pre-condition for an enterprise to be accredited with the 21 right to do border trade of small amount is that it shall be a legal 14 Article 6 person registered in the industrial and commercial authorities in the border regions. Besides, it shall also meet the following 15 The enterprise doing border trade of small amount shall be ex- requirements: amined and approved, according to the stipulations formulated 1.Its registered capital shall not be less than RMB 500,000 22 by MOFTEC, by the local departments in charge of foreign trade yuan; and economic cooperation of the provinces, autonomous re- gions in border regions within the framework of the numbers 2.It shall occupy a fix operation site and have sufficient facilities 23 approved by MOFTEC. The list of such enterprises shall be and capital to do border trade; 3 China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 24 3.It shall set up complete operational organizations and has panies as being stipulated by the state, border trade of small qualified business personnel. amount may not be subject to the limitation with regard to the modes of trade and management division. The border trade en- terprises for small amount business are entitled to do all kinds 25 Article 9 of import and export business except for those as stipulated in Article 10. 26 The order trade enterprises for small amount business in ev- ery province and autonomous region in border regions shall conduct its border trade business in the places of their regis- Article 12 31 tration or through the neighboring open land ports which have been approved by the state. These ports shall include 4 ports of When border trade enterprises for small amount business ex- 32 cargo passage for border trade and regional trade approved by port commodities falling in the scope of the commodities which the State Council, i.e. Jiangshan, Qisha, Shitoubu and Guozis- the practice of uniform and joint management is applied to or han. shall be subject to quota bidding, chemicals both for military and civilian use and chemicals easily manufactured into toxic sub- 27 Article 10 stance, commodities which shall be exported in limited amount according to the international multilateral or bilateral agreements 28 Every border province and autonomous region may designate in which China is pledged to export within set limits, they shall one or two border trade enterprises for small amount business, be regulated according to the regulations in force as promul- which have the capability and demonstrate export records, to gated by the state. export through designated border ports, commodities produced by its localities and to which the practice of uniform and joint The varieties of commodities and the annual export quotas in 33 management is applied as stipulated by the state, or to import 1996 for commodities, produced by the border provinces and commodities which have been imported by limited number of autonomous regions and the practice of uniform and joint man- companies checked and approved by the state. The list of the agement is applied as stipulated by the state, shall be worked above-mentioned enterprises shall be reported to MOFTEC for out and issued by MOFTEC according to the production vol- examination and verification, while MOFTEC shall copy such ume, export amount and the growth rates of such export in the list to the Customs General Administration and relevant depart- previous 3 years. In the following years after 1996,such vari- ments under the State Council. eties and annual export quotas shall be worked out and issued by MOFTEC in reference to the export volume and growth rate of export in the previous year. 29 Article 11 The provisions on the administration of export of border trade 34 30 With an exception of the commodities to which the practice of for small amount subject to quota bidding with compensation uniform and joint export management is applied and the com- will be formulated separately in the provisions governing quota modities which have been imported by limited number of com- bidding. 4 China - Provisions of Administration on Border Trade of Small Amount and Foreign Economic and Technical Cooperation of Border Regions, 1996 35 Article 13 the overall situation in the previous year to MOFTEC before the end of January of every year. 36 The export of commodities subject to quota and license control by border trade enterprises for small amount business, other Article 17 43 than those stipulated in the previous Article, shall be free from quota and license control. But such export shall be under macro The tax repayment policies toward general trade shall be ap- 44 - regulations by MOFTEC and the State Planning Commission. plied to border trade and the procedures for tax repayment shall Within the framework determined by MOFTEC, the customs will be handled to that of the general trade.
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