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Commen Sense >> Policy >>Foreign Trade Regulations on Export License Control

Foreign Trade Regulations on Export License Control

(Promulgated by Ministry of Foreign Trade and Economic Cooperation on January 2,1996)
      In order to strengthen and improve the administration on export license, these regulations are formulated according to The Law on Foreign Trade of the Peoples Republic of China (Hereinafter referred as foreign trade law) and Interim Procedures of the Peoples Republic of China Concerning Administration of Export Commodities.

1.Administrative Bodies for Issuing and Control of Export Licenses
Article 1 Ministry of Foreign Trade and Economic cooperation (MOFTEC)is the national administrative body for the issuing and control of export licenses and is responsible for the formulation, revision and explanation of the State rules and regulations on export licenses and for checks to the works of control to export licenses.

Article 2 MOFTEC shall determine upon and readjust from time to time the scope and catalogue of the commodities whose export should be put on license control and the scope of export licenses that should be issued by special administrative bodies.

Article 3 The Bureau for Control of Quotas and Licenses under MOFTEC (hereinafter referred to as the Bureau for shout),special commissioners offices of MOFTEC and commissions (departments or bureaus)of foreign trade and economic cooperation of the various provinces,autonomous regions and municipalities as well as those cities enjoying provincial status in planning (hereinafter referred to as the local trade departments for short)are authorized by MOFTEC as bodies to be responsible for the work of issuing of export licenses with in their own authorized scope.

2.Principles for Issuing of Export Licenses

Article 4 Export licenses are legal documents for the State to control upon the exits of the commodities from the territory of the country. All enterprises handling import and export must apply according to the regulations to an authorized administrative body concerned for the issuing of an export license before exporting any of the commodities subjected to export license control (except those have been subjected to exemption from export licensing according to these regulations).The Customs shall not accept the application for exporting of any commodities without an export license.

Article 5 Export licenses for commodities in different natures in the catalogue shall be issued by administrative bodies of different levels.

1. Export licenses issued by the Bureau under MOFTEC.
  • Licenses for the commodities listed in the catalogue provided by MOFTEC for all kinks of import and export enterprises throughout the country;
  • Licenses for commodities whose export is handled by those import and export enterprises under the State ministries and departments carrying out single planning management system and those national foreign trade (Production and trade) corporations under the State ministries and departments carrying out double planning management system (the corporations are listed in the Appendix 1);
  • Permissions for exits from the territory of country of commodities by projects subjected to export licensing of the institutions which have not been authorized to handle foreign trade.
2. Export licenses issued by special commissioner's offices of MOFTEC:
  • Licenses for the commodities listed in the catalogue provided by MOFTEC for various import and export enterprises of the provinces, autonomous regions, municipalities and those cities enjoying provincial status in planning and for the branches of the national foreign trade (production and trade) corporations under the State ministries and department carrying out double planning management system which are located in the places under the control of special representative offices;
  • Licenses of commodities subjected to export quota license control and commodities of bidding listed in the catalogue provided by MOFTEC for the branches of the various import and export enterprises under the State ministries and departments which are located in the areas;
  • Licenses for commodities of those units subjected to regulations otherwise.
3. Export licenses issued by local foreign trade departments;
  • Licenses for commodities listed in the catalogue provided by MOFTEC (export stipulated otherwise) for various local import and export enterprises and the local branches of the national foreign trade (production and trade) corporations under the ministries and departments carrying out the double planning management system. However, for licenses issued by the Department of Foreign Trade and Economic Cooperation of Tibet Autonomous Region, such a scope should be conformed to "The Circular Concerning the Definition of the Competence of the Department of Foreign Trade and Economic Cooperation of Tibet Autonomous Region in Issuing Export Licenses" promulgated by MOFTEC (Document NO673 of MOFTEC, 1995).
  • Licenses for commodities subjected to export licensing of local nonforeign-trade units.
4. Import and export enterprises throughout the country should go to the above designated export license issuing bodies ( including the special commissioner's offices of MOFTEC or local foreign trade departments ) to get the export licenses for any of the commodities subjected to export licenses for any of the commodities subjected to export licensing under the respective scope. The designated local export Licenses issuing bodies shall formulate detailed rules for the issuing of export licenses of commodities within the designated scope in accordance with these regulations and submit the rules to MOFTEC for examination and approval before their implementation.

Article 6 For the issuing of export licenses, in general, one approval is to one license, but the following commodities are exception:
  • Export commodities produced by foreign funded enterprises;
  • Export commodities related to compensation trade;
  • The 27 varieties of commodities such as rice, soya beans, corn, live pigs, live cattle, live sheep, live fowls, frozen beef, frozen mutton, frozen pork, frozen sucking pigs, frozen fowls, frozen doves, giant crabs, swimming crabs, chestnuts, Hebei-produced pears, Hami melons, fragrant pears, tea, fireworks, toilet paper, drawnwork, carpets, crude oil, refined oil and coal.
Article 7 Once an export license is issued, no unit or individual is allowed to revise the contents therein. If the related contents need to be revised within the term, the license per se should be replaced by a new one by the original issuing body.


3. Terms of Validity of Export Licenses

Article 8 Export commodity quotas are valid in the very year of their issuing ( export stipulated otherwise ). All import and export commodities should apply to the license-issuing bodies concerned for issuing of licenses for the next year before December 16, every year.

Article 9 License issuing bodies concerned may sign and issue as of December 15, in a year an export license for export quotas allocated in advance by MOFTEC of next year but as the quotas granted by MOFTEC for a definite year are not allowed to be used in advance, the date of issuing on the license should still be filled up as January 1 of the next year. Besides, the export licenses issued should be included in the number of the licenses issued in the next year.

Article 10 For cases of one approval for one license, and export license can be valid for three months at most as of the issuing date and it can only be used once at the Customs within its valid term. In cases of not one approval to one license ( except for fresh, live and frozen products to be shipped and supplied to Hong Kong and Macao ), a license can be valid for six months and can be used at the Customs for 12 times at most. The Customs should record down and sign the quantity of the products concerned on one batch by one batch basis. An export license for fresh, live and frozen products to be shipped and supplied to Hong Kong and Macao (except transit goods ) is valid for one month and should become invalid after one month.

Article 11 If the quotas associated to an export license have not been used in whole or in part because of various reasons, the license per se can be returned within its valid term to the related issuing body. The body shall return the unused quotas by signing and issuing a new license to replace the old one.

Article 12 When there is a reasonable need to extend the valid term of a license, the original issuing body of the license may extend the term to next year but not beyond the end of February of the year and the term of validity of an export license crossing a year cannot be further extended.

Article 13 In case of restructuring of an issuing body around the year-end, the export licenses having been issued by that body need not be replaced by new ones issued by a new body but can only be valid until the end of February of next year. But if the restructuring is made in other times, stipulations concerning the restructuring should be followed.

4. Matters should Be Examined When Issuing of A License

Article 14 Application forms submitted by the export enterprises concerned.
When applying for export licences, every export enterprises should submit to the licence-issuing body the export permits and contracts ( only duplicates are needed ), and an earnestly and accurately filled up application form ( original ) for the export license. The issuing body concerned should strictly examine contents filled up in the form to see whether they are conformed to the regulations concerned and to the contents in the export contracts before signing and issuing the export license.

Article 15 To see whether the applying enterprise has the right to handle the export of the commodities concerned. The license-issuing body should make the examination strictly according to "Regulations on Distribution of the Quotas of Export Commodities" promulgated by the MOFTEC ( The Document No.761 in 1995 of MOFTEC ).

Article 16 To check the prices of the export commodities. When examining the export contracts, the license-issuing body concerned should pay major attention to the prices of the export commodities. The commodity prices filled up on the export license should be conformed to the commodity prices in the export contracts. When the prices in the export contracts are lower than the coordinated prices by the related import and export chamber of commerce, however, the license-issuing body should refuse to issue the export license.

5. Scope of the Export License Administration and the Basis for License Issuing

Article 17 MOFTEC administers licenses for exports to everywhere in the world in both planned and voluntary export quotas (hereinafter referred as export quotas ) for general export commodities subjected to export licensing (the catalogue of the commodities should be conformed to "The catalogue of the Commodities Subjected to Export License Control and Issuing in Separate Levels" printed and distributed by MOFTEC.)

  • As to the commodities subjected to export quota control, the license-issuing bodies should sign and issue export licenses according to the export quotas allocated by MOFTEC and the export quotas redistributed by the local foreign trade departments.
  • As to the export commodities subjected to the control of general licenses except chemicals for both military and civil use, heavy water, chemicals liable to be turned into poisonous products, and computers, the license-issuing bodies should sign and issue the export licenses according to the effective export contracts signed by the export enterprises.
  • As to the export commodities of the two above categories subjected to bidding for quotas, export licenses should be signed and issued according to the list of the enterprises winning the biddings, the quantity of the commodities the enterprises have won in the bidding, and "The Certificates on Application for Export Licenses of Commodities Subjected to Paid Quota Bidding" given by the Bidding Committee. As to the export commodities subjected to no-pay biddings, the export licenses should be signed and issued on the basis of the list of the enterprises winning the biddings, the quantity of the commodities the enterprises have won it the bidding, and the certificates of bidding winners given by the bidding committee.
  • Enterprises or units which are exporting chemicals for both military and civil use in any form should apply to the Ministry of Chemical Industry for approval. The license-issuing bodies shall sign and issue export licenses on the strength of the documents approved by the Ministry of Chemical Industry.
  • Enterprises and units which are exporting heavy water and chemicals liable to be turned into poisonous products in any form should apply to MOFTEC for approval. The license-issuing bodies shall sign and issue the export licenses on the strength of the documents of approval by MOFTEC.
  • Enterprises which are exporting computers subjected to the export license control should apply to MOFTEC for technical examination before handling the export. The license-issuing bodies shall sign and issue the export licenses on the strength of "The Form of Technical Examination of Computers for Export" approved by MOFTEC.
Article 18 The re-export of the commodities made of imported materials subjected to the export license control should abide by the following regulations in gaining the export licenses besides being subjected to supervision and control by the Customs according to regulations concerned.
  • For all the commodities subjected to export quota control except rolled steel, pig iron, zinc and sugar, the license-issuing bodies shall sign and issue the export licenses on the strength of the documents on the import of the materials for processing projects approved by MOFTEC and the local foreign trade departments and the documents on the export quotas distributed by MOFTEC. For the commodities subjected to general export licensing quota control, the licen-issuing bodies shall sign and issue the export licenses on the strength of the documents on the import of the materials for processing approved by MOFTEC and the local foreign trade departments, the export contracts signed by the export enterprises and the registration book of the overseas-supplied materials for processing.
  • For the re-export of the processed overseas supplied rolled steel, pig iron, zinc and sugar, the license-issuing bodies shall sign and issue the export licenses on the strength of the documents on the import of the materials for processing approved by MOFTEC, the registration book ( original copy ) of the imported materials of the export enterprises, and the export contracts. Such exports are not included in the annual export quotas.
Article 19 When foreign-funded enterprises export their own products which are subjected to the export license control (including the re-export of processed imported materials ), the following regulations should be followed:
  • For the foreign-funded enterprises licensed to handle export, the license-issuing bodies shall sign and issue the export licenses on the basis of the export quotas of the foreign-funded enterprises allocated by MOFTEC.
  • For the foreign-funded enterprises which had been licensed to handle export before the readjustment of the catalogue of the commodities subjected to export licensing and whose export commodities became the new commodities subjected to export license control because of the readjustment, MOFTEC shall check and ratify the export quotas of the foreign-funded enterprises according to their business scopes and their production and export scales. The license-issuing bodies then shall sign and issue the export licenses on the basis of the quantity of the export quotas of the foreign-funded enterprises allocated by MOFTEC.
  • If a project funded by foreign-funded enterprise(s) involve(s) in export of the commodities subjected to export licensing, it is necessary to apply to MOFTEC for approval at the stage of the project proposal before being examined and approved according to the procedures of the examination and approval. For those projects which have not been approved by MOFTEC but only by the local authorities, MOFTEC shall not allocate annual export quotas and the license-issuing bodies shall not sign and issue the export licenses.
Article 20 Exports of various raw materials, spare parts, components and other materials needed by Sino-foreign joint equity or cooperative ventures and Chinese solely-funded enterprises which are located outside China as investment or production material should be treated as the general trade export and the license-issuing bodies should sign and issue the export licenses according to Article 17 of these Regulations.

Article 21 When shipping out from China of Chinese-made equipment, materials, construction machinery by Chinese enterprises which have been approved to contract for construction work or labour services overseas for their own use and the daily necessities for their workers and staff abroad which are subjected to the export license control, the license-issuing bodies shall sign and issue the export license for the commodities on the basis of the categories of the commodities as set in the catalogue and the scope of their own power on the strength of the project contracts approved by MOFTEC and the local foreign trade departments if the commodities are subjected to license control ( except those commodities subjected to export quota paid bidding and those fresh, live and frozen products on quota control to be shipped and supplied to Hong Kong and Macao) and the customs shall examine and let them pass if the commodities are not subjected to license control. The export of the commodities subjected to export quota paid bidding and the fresh, live and frozen products on quota control to be shipped and supplied to Hong Kong and Macao will be handled according to Article 17 of this set of Regulations.

Article 22 For the export of the commodities which are subjected to export license control for use overseas together with the exported complete sets of equipment, the license-issuing institutions shall sign and issue the export license according to the fixed scope of the license-issuing catalogue and on the basis of the enterprises' contracts on the export of the equipment (except those commodities subjected to export quota paid bidding ). The export of the commodities subjected to export quota paid bidding should be handled according to Article 17 of this set of Regulations.

Article 23 As to the export of the commodities for paying back overseas loans or for compensation trade, the license-issuing institutions shall sign and issue the export licenses according to the export quotas for paying back overseas loans and for compensation trade allocated by MOFTEC. When an enterprise which is not licensed to handle foreign trade needs to pay back overseas loans or to do compensation trade business, it should entrust a foreign-trade enterprise to be its agent to apply for the export license for the export of its products.

6. Handling for Exceptional Circumstances of Export License Control

Article 24 No enterprise is allowed to handle export of the commodities whose export is banned by Article 17 and Article 21 of "The Foreign Trade Law".

Article 25 No enterprise is allowed to organize the export of the commodities whose export is banned by the appendices of this set of Regulations (see Appendix 2 ). But, the re-export of processed imported copper and copper alloys should be treated as a special case to be reported to MOFTEC for approval, and the lincense-issuing bodies shall sign and issue the export license on the strength of the documents approved by MOFTEC, the handbook of the imported materials for processing and the export contracts. In this case, MOFTEC shall sign and issue the export licenses for the import and export enterprises under the ministries and departments of the central government while the special commissioner's offices shall sign and issue the export licenses for various local import and export enterprises. The re-export of processed overseas-supplied copper and copper alloys should be treated as an exceptional case to be reported to MOFTEC for approval and be subjected to supervision and control by the customs according to the rules concerned.

Article 26 Freshwater fish, fresh vegetables and fruits ( referring to Lichi and Water melon ) to be shipped and supplied to Hong Kong and Macao should be subjected to released-bill control and be released by the customs according to Regulations concerned.

Article 27 The re-export of processed overseas-supplied materials (except otherwise stipulated ) is free from the export license, and the Customs shall release them according to Regulations concerned.

Article 28 The export of the commodities by foreign-economic-aid projects ( excluding those commodities banned for export ) is free from the export license. The customs shall release them according to the documents issued by MOFTEC on entrusting the enterprises to assume the foreign-economic-aid tasks or the consignment note on the foreign-economic-aid project issued by the China National Complete Plant Import and Export ( Group ) Corporation and the Customs declaration form filled up by the enterprise.

Article 29 The exit of exhibits, exhibits for sale and small Articles for sale shall be subjected to the following Regulations:
  • The exhibits to be brought out for display but not for sale for exhibitions chiefly managed by China abroad are exempt from export licenses. The Customs shall supervise, examine and release them on the strength of the documents on holding the exhibitions approved by MOFTEC and the Customs declaration forms. But, they should be transported back to China after the exhibitions.
  • As to the exhibits and small Articles to be taken out for sale at the exhibitions abroad held by national import and export corporations ( including national manufacturing and trade corporations ) authorized by MOFTEC subjected to export license control, the license-issuing bodies concerned shall sign and issue the export licenses on the strength of the documents on the holding of the exhibitions approved by MOFTEC and the Bureau of MOFTEC is responsible for signing and issuing such licenses for the import enterprises under the State ministries and departments while the local foreign trade departments are responsible for signing and issuing such licenses for their local import and export and export enterprises. Such export shall not account for any of the export quotas. Such kind of exhibits if not subjected to the export license control shall be supervised, examined and released by the Customs on the strength of the Customs declaration forms.
  • As to exit of the exhibits and small Articles to be taken out for sale at the exhibitions abroad held by non-foreign-trade units, whether they are subject-
    ed to export license control or not, export license should be applied. The license-issuing bodies shall sign and issue the export licenses on the strength of the documents on holding the exhibitions approved by MOFTEC. Bureau of MOFTEC is responsible for signing and issuing the export licenses for the units directly under the central govenment while the local foreign trade departments are responsible for signing and issue the export licenses for their local units.
Article 30 Rules for transport of samples of goods outside China:
  • Samples of commodities or experimental objects are not subjected to export license control if each batch of worth less than RMB 5,000 Yuan and the Customs shall examine and release them on the strength of the filled up Customs declaration forms. When each batch of such samples worth more than RMB 5,000 Yuan, they should be treated as the ordinary commodities for export and applications for the export licenses should be made. Besides, the export of the samples shall be included in the export quotas. The license-issuing bodies shall sign and issue the export licenses according to the fixed level-to-level export-license-issuing catalogues.
  • Samples of commodities shipped out of the country by non-foreign-trade units for cultural, technical or other exchange activities with each batch valued at RMB 5,000 Yuan or less are exempt from the export licenses whether they are subjected to the export license control or not. The Customs shall supervise, examine and release them on the strength of the certificates issued by the competent departments (at the department level or above ) which are in charge of the units to transport the samples abroad. If each batch of the samples is valued at more than RMB 5,000 Yuan, however, applications for the export licenses should be made and the export licenses shall give clear indication of the word "samples". Bureau of MOFTEC is responsible for signing and issuing of export licenses for the units directly under the central governments on the strength of the certificates issued by the competent departments (at the department level of above ) which are in charge of the units to transport the samples abroad. The local foreign trade departments are responsible for signing and issuing export licenses for their local units on the strength the certificates issued by the competent departments ( at the department level of above which are in charge of the units to transport the samples abroad. But, each batch of the samples for export should not be over the value of RMB 10,000 Yuan ).
  • To transport abroad commodity samples of Chinese traditional medical herbs and ready-prepared Chinese traditional medicines, it is necessary to abide by the Customs' regulations on the limit of the value of the samples.
Article 31 Tourist souvenirs and arts and crafts bought within China with foreign exchanges brought in China by foreign tourists, compatriots from Hong Kong and Macao and overseas Chinese which are to be taken or mailed abroad are exempt from the export licenses. The Customs shall examine and release them on the strength of the invoices of the tourist commodity-selling units designated by the State administrative ministerial departments in charge of tourism and the exchange memo. To take or mail abroad Chinese traditional medical herbs and ready-prepared Chinese traditional medical bought in China with or not with foreign exchanges should be handled according to the Customs' rules on travellers' taking or individuals' mailing abroad Chinese traditional medical herbs and ready-prepared Chinese traditional medicines. No small-lot order of the herbs and medicines from abroad is allowed.

Article 32 Domestic tourist-product-selling units approved by MOFTEC can accept overseas orders of batches of commodities worth US$ 50,000 or less ( excluding those commodities subjected to the export license control and passive export quota control ). The Customs shall examine and release the commodities on the strength of the Customs declaration forms filled up by the domestic tourist-product-selling units and the contracts concerned.

Article 33 In accordance with the international trade conventions, 5% over or less in amount of a batch of bulk goods for export is permitted, so the license-issuing bodies need not to give any indication on the export licenses and the Customs shall release the related amount. If the amount exceeds 5%, the license-issuing bodies should add the amount on the licenses and deduct the remaining export quotas.

7. Inspection and Punishment

Article 34 To establish an inspection system on the condition of export license issuance, MOFTEC shall inspect the conditions of export license issuance once a year. The contents of the inspection include checking up how the license-issuing bodies have implemented this regulations with major attention on the wrong practices such as overquota issuance of export licenses, no-quota issuance of export licenses, and issuance of export licenses exceeding the authority, bypassing the immediate leadership or violating the Regulations. A system of combining the regular or irregular self inspection of the license-issuing bodies and the spot checkup by MOFTEC will be practised. The regular inspection is carried out in September every year.

Article 35 All the license-issuing bodies should timely report to the leadership statistics about the license issuance. Those which have already been linked with the computer network should report their data through the network directly while those having not been linked with the computer network should report their data by submitting their discs.

Article 36 All the export-license-issuing bodies should sign and issue export licenses according to this set of Regulations and must not make overquota or no-quota issuance of export licenses, or issue export licenses exceeding their authority, bypassing the immediate leadership or violating this set of Regulations. For those license-issuing bodies which violate this set of Regulations, MOFTEC shall punish them by circulating a notice of criticism, issuing a warning or depriving them of the right to issuing export licenses according to the seriousness of the cases.

Article 37 While applying for export licenses, export enterprises should report the related information and data accurately according to this set of Regulations but not report false information, attempt to gain export licenses by presenting false contracts or other means, or transfer export licenses. Those violators shall be punished through circulating a notice of criticism, or suspending or depriving them of their right to handle export of commodities.

Article 38 When the Customs find in their supervision and control any violation of the Regulations on export license control, they should severely deal with the cases according to the Customs' rules concerned. Those whose violation has become a crime should be turned over to judicial organs for investigation into their criminal responsibilities.

8. Others

Article 39 "Some Regulations on Export License Control and Application" printed and issued by MOFTEC (Document No.53 of MOFTEC in 1994) ceases to be effective.

Article 40 This set of Regulations goes into effect as of the day when it is published. MOFTEC is responsible for explanation of the regulations.

Appendix 1: The list of the companies carrying out the double planning management system
  • China National Tabacco Import and Export Corporation
  • china National Electronics Import and Export Corporation
  • China National Auto Import and Export Corporation
  • China Iron and Steel Manufacturing and Trading Group Corporation
  • China Petrochemical International Company
  • China National Nonferrous Metals Import and Export Corporation
Appendix 2: The Catalogue of the Commodities Banned for Export: Musk, Platinum, Natural Bezoar, Copper and Copper Alloys.

Note: The license code of copper and copper alloys is 74030000 and the measuring unit is "kilogram". Besides, the contents of trading forms on the surface of the licenses can only be filled up with "imported materials for processing".