Ministry of Foreign Trade and Economic Cooperation and General Administration of Customs, Administration of Import of Specially-designated 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 apply where specially designated mechanical and electrical products are imported into China (Article 2). The Rules shall also apply where a foreign investment enterprise imports such products for production of other products to be sold in the domestic market (Article 12). The Rules do not apply if the foreign investment enterprise imports such products as part of its capital investment or for its own use (Article 13).

Main contents: The Rules state that MOFTEC and the General Administration of Customs shall formulate, adjust, publish and implement a catalogue of specially designated mechanical and electrical products (Article 3). Importers applying to import specially-designated mechanical and electrical products must satisfy certain conditions, including a three-year clean record of compliance with exchange control and customs laws and regulations (Article 4). Applications from end users of such products for use for scientific research, education, cultural, health and other social benefit purposes shall be considered favourably (Article 6). Licensing application shall be made through a local foreign trade authority and a mechanical and electrical product import and export office to MOFTEC (Article 7). If the application is approved, a Mechanical and Electrical Product Import Licence will be issued by MOFTEC (Article 8). The applicant shall then conclude a contract with the foreign exporter and present the licence to the bank foreign exchange settlement and customs for customs clearance (Article 9).
Related legislation: PRC, Foreign Trade Law (Revised), Apr 6 2004, CLP 2004 No.4 p34; PRC, Administration of Import and Export of Commodities Regulations and Administration of Import of Mechanical and Electrical Products Procedures