Ministry of Foreign Trade and Economic Cooperation, Ministry of Finance and People's Bank of China, Reporting and Approval of Large-sized Export Credit and Export Credit Insurance Projects Measures

Issued: June 11 2001
Effective: as of date of issue
Interpreting authority: Ministry of Foreign Trade and Economic Cooperation, Ministry of Finance and People's Bank of China
Applicability: For the purposes of the Measures, a "Large-sized export credit and export credit insurance project" means a complete equipment set export project or overseas construction contract with a contract value of US$100 million or more that requires China to provide export credit and export credit insurance (Article 1).

Main contents: The Measures provide that an enterprise applying for large-sized export credit and export credit insurance must have the qualifications for using export credit to export complete equipment sets and contract overseas construction projects as stipulated in the Ministry of Foreign Trade and Economic Cooperation, Qualification Examination for Utilization of Export Credits in Overseas Construction Project Contracts and Complete Equipment Set Export Circular and the Ministry of Foreign Trade and Economic Cooperation, Questions Concerning Qualification Examination for Utilization of Export Credits to Contract Overseas Projects and Export Complete Equipment Sets Supplementary Circular (Article 2). The enterprise applying for large-sized export credit and export credit insurance shall first supply a bid application to the relevant trade association before the close of the bid or the execution of a bid negotiation agreement (Article 3). A recommendation of the relevant trade association will be a basis for the Ministry of Foreign Trade and Economic
Cooperation to approve the application (Article 4). If the enterprise is recommended and approved, it may then apply to the bank and the insurance institution for export credit and export credit insurance (Article 5). After winning the bid, the enterprise shall report the project to various ministries for their opinions, and these opinions shall be consolidated and submitted to the State Council by the Ministry of Foreign Trade and Economic Cooperation (Articles 6 and 7). If the enterprise enters into any commercial contract for the project before it has received the approval of the State Council, such contract must be made "Subject to the approval of the relevant Chinese government authority" (Article 9).
Related legislation: PRC, Foreign Trade Law (Revised), Apr 6 2004, CLP 2004 No.4 p24; Qualification Examination for Utilization of Export Credits in Overseas Construction Project Contracts and Complete Equipment Set Export Circular, 2000; Questions Concerning Qualification Examination for Utilization of Export Credits to Contract Overseas Projects and Export Complete Equipment Sets Supplementary Circular, 2000; Administration of Restricted Export Technology Measures, Oct 28 1998, CLP 1999 No.2 p10; Re-dividing the Work of Mechanical and Electrical Chamber of Commerce and Contracting Chamber of Commerce to Coordinate Their Functions, 1999; Ministry of Foreign Trade and Economic Cooperation and People's Bank of China, Permit for Bidding (Negotiated Bidding) on Overseas Construction Project Contracts Tentative Measures, Dec 24 1999, CLP 2000 No.5 p5 and Examination of Exports of State Secret Technology Provisions, Oct 30 1998, CLP 1999 No.2 p9