Ministry of Foreign Trade and Economic Cooperation, Administration of Import and Export Business Qualifications Relevant Provisions

Issued: July 10 2001
Effective: as of date of issue
Applicability: These Provisions do not apply to foreign investment enterprises, wholesale distributors, supply and marketing cooperatives, small-sized border trading enterprises, and enterprises in special economic zones and Pudong New Area (Item One).

Main contents: Under the Provisions, import and export business qualifications are divided into two types for the purposes of administration: foreign trade distribution business rights, which qualify the holder of such rights for import and export of all goods and technology; and self-operated import and export rights, which qualify the holder of such rights to import the equipment and materials it needs for its own use and export its own products. Both types of rights shall be evidenced by PRC Import and Export Enterprise Qualification Certificate. Enterprises granted either type of import-export rights may choose any mode of foreign trade to conduct their import and export business (Item Two). Conditions of eligibility and documentation requirements for each type of qualification are specified in the Provisions (Item Three). Applications for foreign trade distribution business rights shall be subject to verification and approval by the Ministry of Foreign Trade and Economic Cooperation, whereas applications for self import and export rights shall be verified and approved by an authorized local certificate issuing department (Item Four). The foreign trade and economic cooperation commission of each province, autonomous region, municipality directly under the central government, municipality with independent development plans and some other major cities are authorized to issue the PRC Import and Export Enterprise Qualification Certificate. The Provisions also set out the penalties for illegal acts of import and export enterprises (Item Seven).

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