Ministry of Foreign Trade and Economic Cooperation, Administration of Import Quotas for Mechanical and Electrical Products Implementing Rules

Issued: December 20 2001
Effective: January 1 2002
Interpreting authority: Ministry of Foreign Trade and Economic Cooperation (MOFTEC)
Applicability: The Rules shall be applicable to the import of mechanical and electrical products subject to import quotas (Article 2). Where a foreign investment enterprise imports such products for sale in the domestic market or for production of products to be sold in the domestic market, the Rules shall also be applicable (Article 16).

Main contents: The Rules state that a catalogue of mechanical and electrical products subject to import quotas shall be formulated and implemented by MOFTEC and the General Administration of Customs (Articles 3 and 4). Importers applying for import quotas must satisfy certain conditions, including a three-year clean record of compliance with exchange control and customs laws and regulations (Article 6). The import quotas are granted on an annual basis (Articles 7 and 8). Quota control authorities shall consider favourably the applications from end users of such products if they are to be used for scientific research, education, cultural, health and other social benefit purposes (Article 9). The Rules also set out the specific procedures for applying for the Certificate for Mechanical and Electrical Products subject to Import Quotas and the Import Quota Licence (Articles 10 to 14). Importers will not be granted import quotas if they sign import contracts before obtaining the Certificate for Mechanical and Electrical Products subject to Import Quotas and the Import Quota Licence in accordance with the Rules (Article 15).
Related legislation: PRC, Administration of Import and Export of Commodities Regulations and Administration of Import of Mechanical and Electrical Products Procedures