Automatic Import Licences for FIEs

_{Llinks Law Office}

Following China's entry into the WTO, the Chinese legislature has been busy cleaning up and amending laws and regulations that are not in conformity with WTO rules. The import and export businesses of Chinese enterprises, as an important sector of the national economy, have attracted a great deal of attention both at home and abroad. On December 5 2001, the State Council promulgated the Regulations on Administration on Import and Export of Goods of the PRC (the Regulations). Effective January 1 2002, the Regulations have not only superseded and unified the unsystematic regulations and rules in this area, but have also systemized the administration of import and export of goods.

The Regulations classify imported and exported goods into three categories: prohibited, restricted and unrestricted. Both quota-schemed and licensed goods fall under the restricted category, and require prior approval from the authorities before being imported or exported. According to the Regulations, domestic importers are allowed to import unrestricted goods without prior approval, but they must complete the normal customs declaration procedure. The relevant government departments shall grant permission for import of such goods. Further, the Regulations authorize the relevant government departments to classify the import goods according to the automatic import licence administration. Following the Regulations, the Administrative Rules on the Licence for Imported Goods and the Administrative Rules on the Automatic Import Licence (collectively, the Import Licence Rules) were promulgated in late December 2001, and govern the importation of restricted goods and unrestricted goods, respectively. According to the Administrative Rules on the Automatic Import Licence, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) shall publicize the list of the goods under the automatic import licence at least 21 days before implementation, and the domestic importers shall apply for the automatic import licence before declaring the import goods at customs. Each automatic import licence is valid for six months and applicable to one custom declaration only.