This Measure is formulated in accordance with the Foreign Trade Law and the Regulations Governing Import and Export of Goods for purpose of reasonably allocating resources, normalizing the order of export businesses, creating an open and fair trade environment, executing the international conventions and treaties to which China is bound and safeguarding the national economic interests and security. The Ministry of Commerce, being the exclusive authority controlling licensing to exporting goods, shall be responsible to formulate measures, regulations and rules in respect of such licensing, to supervise and check the execution of this Measure and, to punish rule - breakers. The Ministry of Commerce shall, jointly with the General Administration of Customs, formulate, modify and publicize the annual Catalogue of Goods to be Exported Under Licensing Control. In addition, the Ministry shall also formulate, modify and publicize Catalogue of Goods to be Exported Under Classified Licensing Control.
The licensing to foreign - invested businesses'' export of self- produced goods subjecting to the control hereof (hereinafter referred to as the “Goods”), including export of processed goods made with imported materials, shall be processed as follows: if such business''s export is approved, the appropriate license issuing authorities shall issue the license to export to such business in accordance with the export quota for foreign-invested enterprises as provided by the Ministry of commerce; if such quota is set by bidding, the Ministry shall also provide relevant approval documents as stipulated in the Article 11 of this Measure; if foreign-invested enterprises'' export of the Goods has been approved prior to any modification of the above said Catalogue, which makes the already approved goods to export subjecting to new licensing controls, the Ministry of Commerce will, in accordance with the approved business scope and size of production and export volume, determine the export quota for such enterprises, according to which the license issuing authorities will then issue the license to export to them; and, if foreign- funded businesses'' investment projects involve export of the Goods, the license to such export shall be offered with stipulated procedures after the Ministry of Commerce has approved to their investment plans at the initial phase; otherwise, the Ministry shall not provide export quota to such businesses, nor shall the license issuing authorities issue license to export to them. The export quota shall be effective prior to and including December 31 of the current year, unless specified otherwise. Exporters should apply for license to export, which shall be valid for maximum six (6) months, within the said effective term. If such license is used in the coming year, the expiry date of it shall not exceed the end of February of that year. This Measure is publicized on December 10, 2004 as Decree 28 of the Ministry of Commerce and shall enter into effect as of January 1, 2005. From that day on, the Regulations Governing the Licenses to Exports(2001), publicized by the Ministry of Foreign Trade and Economic Cooperation, shall be null and void.
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