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Provisional Measures Governing Exportation of Textiles (Interim)
Decree No. 13 of the Ministry of Commerce of the People's Republic of China in 2005
《纺织品出口临时管理办法（暂行）》已经2005年6月7日商务部第10次部务会议审议通过，现予公布，自2005年7月20日起施行。 部长：薄熙来 二〇〇五年六月十九日
Provisional Measures Governing Exportation of Textiles (Interim), reviewed and adopted by the 10th Ministry's Meeting of the Ministry of Commerce on June 7, 2005, is now promulgated and shall enter into force as of July 20, 2005. Minister of Commerce: BO Xilai June 19, 2005
Article 1. The measures is formulated in the line with the provisions of the Foreign Trade Law of the People's Republic of China and the Administrative Licensing Law of the People's Republic of China to accelerate the transformation of the way of growth of the country's textiles export and stabilise the order of textiles exportation.
Article 2. The Ministry of Commerce (MOFCOM) is responsible for the provisional administration of the country's textiles exportation and shall, together with the Customs General Administration and the AQSIQ, design and make adjustment to the Catalogue of Commodities of Textiles for Exportation Subject to Provisional Administration (hereinafter referred to as the “Catalogue of Commodities Subject to Administration” in line with working needs.
The MOFCOM authorises commerce authorities of various provinces, autonomous regions, municipalities directly under the administration of the Central Government, cities listed separately under the Central Government, Xinjiang Production and Construction Formation and in cities of Harbin, Changchun, Shenyang, Nanjing, Wuhan, Chengdu, Guangzhou, and Xi'an (hereinafter referred to as “local commerce authorities”) to be responsible for the administration of temporary export licenses of textiles within their respective regions.
The AQSIQ shall, on the strength of recommendations given by the MOFCOM, authorise the above?mentioned agencies to handle the issuance of certificates of place of origin of textiles for exportation.
Article 3. The development of and adjustment to the Catalogue of Commodities subject to Administration shall be published by the MOFCOM, Customs General Administration and AQSIQ in the form of public notice, involving items including product categories and tariff lines concerned, countries or regions concerned, time and duration of implementation, total volume allowed by the licenses, etc.
Article 4. Exporting countries mentioned in this set of measures refer to final destination countries or regions; and in terms of processing trade export, the exporting countries refer to countries or regions declared for customs procedures. This set of measures shall not apply to transit trade.
Article 5. The following methods of customs monitoring are applicable to the provisional export licensing administration of textiles:
General trade, barter trade, imported materials for processing and assembling trade with supplied materials and processing for exportation commodities, compensation trade, processing with imported materials (contracts signed with corresponding parties), processing with imported materials (contracts signed are not between corresponding parties), bonded plants and other trade.
In cases where textiles subject to the Catalogue of Commodities subject to Administration enter from other places in Mainland China into bonded zones, export processing zones and other zones and bonded places under the special monitoring of the customs, the customs does not need to check and verify licenses. When the above?mentioned commodities leave the country and their destination is countries or regions where temporary exportation administration on textiles is exercised, the customs shall handle the inspection and exit granting formalities on the strength of licenses according to the related rules.
Article 6. The MOFCOM authorises licensing bureau to administer and guide in a unified manner the issuing work of Temporary Export Licenses of Textiles (hereinafter referred to as "licenses") of various local commerce authorities.
Names of issuing bodies, pattern and format of licenses and special seals shall be published separately, jointly by the MOFCOM, the Customs General Administration, and the AQSIQ.
Article 7. For commodities listed in the Catalogue of Commodities subject to Administration, foreign trade operators (including enterprises under the Central Government, hereinafter referred to as ?§operators?¨) shall proceed with the examination and approval formalities with the local commerce authorities for temporary export licenses before the actual exportation, obtain licenses, and go to the customs to handle customs clearance formalities on the strength of the licenses.
Article 8. Commodities under any of the following circumstances shall be listed in the Catalogue of Commodities subject to Administration:
1. textiles products that are subject to restrictions imposed by related countries or regions;
2. textiles products that are subject to temporary quantitative restriction according to bilateral protocols.
Article 9. Volume of temporary export licenses shall be based on export performance of related commodities. The following formula shall be used to identify the applicable volume of temporary export licenses (hereinafter referred to as “applicable volume”) of an operator under the heading of customs export performance.
Details as below:1. S stands for the applicable volume;
2. T stands for the national total volume of temporary export licenses identified;
3. Q1 stands for the export performance of an operator to a restricting country or region after the removal of quota; Q2 stands for the export performance of an operator to all other countries and regions except the restricting ones (Q1≠0) after the removal of quota; Q3 stands for export performance of an operator in terms of total exports abroad during the period of statistics when quota were still in place;
4. M1 stands for the export performance of all operators of the country restricting countries or regions after the removal of quota; M2 stands for the export performance of all operators, whose Q1 do not equal zero, to all other countries and regions except the restricting ones (after the removal of quota); M3 stands for export performance of all operators of the country in term of total exports abroad during the period of statistics when quota were still in place;
（五）a1为一体化后的出口权重，a2为一体化前的出口权重，暂定a1=0.7, a2=0.3；若统计时间范围不涵盖一体化前的时间，则a1=1, a2=0。
5. a1 stands for the exportation weighted after the quota is removed; a2 refers to the exportation weighted before the quota is removed. For the time being, the following figures are used temporarily, a1= 0.7, a2=0.3. In cases where the statistics period does not cover the period before the quota is removed, then, a1=1, a2=0.
Article 10. The MOFCOM shall identify the export performance of related commodities of an operator according to the following principles:
1. in line with the export statistics according to the 10?digit tariff lines of China's customs;
2. the time of statistics is the 12 months before the implementation of the temporary export licenses;
3. in principle, the export performance value should be calculated according the value added part of the exported products.
For general trade, 100% of the export volume will be used in calculation, and for processing trade, temporarily, 100% of the export volume will be used in calculation;
For group enterprises that have more than one subsidiary, branch or company under their control, the calculation shall be carried out on the basis of actual operators (according to the enterprise code given by the customs) and the temporary export license shall be distributed to each of the operators.
In cases where the same operator uses more than one enterprise code given by the Chinese customs in the exportation declaration of a certain category of products (the name of the enterprise shall be the same), calculation may be done on an aggregate basis after the operator has applied to the MOFCOM and filed for record. For those that fail to apply for aggregate calculation, the calculation will be done according to each enterprise code.
Article 11. The MOFCOM shall, according to the distribution principle, identify the category and quantity of commodities that each and every operator can apply for, deliver them within 30 days upon the publication of the Catalogue of Commodities subject to licenses in one go or in several batches to the various local commerce authorities, and publish them on the website.
Article 12. Operators that have obtained the information regarding how much they can apply for shall file applications for licenses to the local commerce authorities within the category and quantity of licenses to which they are eligible to apply.
Article 13. Within 15 days upon receipt of the quantity of licenses that may be applied for, various local commerce authorities should gather and report the applications reports they have received from operators within their respective regions, together with the electronic data.
Upon receipt of the application report and electronic data from various local commerce authorities, the MOFCOM may handle the approval formalities of applications reported by various local commerce authorities in a unified manner within the total quota allowed, and delegate the distributable quantity of temporary export licenses to various operators nationwide in letter form.
Article 14. For commodities which are subject to licensing administration for over a year, the MOFCOM shall allocate 5% of the total volume of the nationwide temporary export quota on an annual basis, starting from the second year, to support newcomers that have not yet obtained licenses.
According to the calculation principles of article 9, the licenses shall be distributed and delegated to various local commerce authorities, which shall distribute them according to their respective situations and publish the result of distribution on their official websites.
Article 15. The temporary export license of textiles is subject to the system of "one license valid for one batch of products" and "one license valid only for one customs authority clearance". These licenses are valid in a calendar year and the validity is 6 months.
Holders of temporary export licenses of textiles may go to the original issuing bodies to handle the extension formalities in cases where they fail to export within the validity period, the longest extension given being no longer than 3 months. In the case of extension or changes being made to licenses, new licenses will be issued.
Article 16. Operators having obtained temporary export licenses shall, in cases where they are not able to use them all within the validity period of the licenses, hand in the remaining quantity to the MOFCOM within 60 days before the completion of the licensing year.
Enterprises that are directly under the Central Government shall submit them to the Beijing commerce authority and other operators shall submit them to the MOFCOM via various local commerce authorities.
Article 17. In cases where holders of temporary export licenses of textiles use less than 20% of the total quantity of licenses applied for within the validity period of the licenses and fail to submit them as requested, the MOFCOM shall deduct the quantity applied for by the holders for the next year in proportion.
Article 18. The volume handed in by operators and those not applied for will be included into the total remaining quantity of temporary export licenses for textiles of the year.
The remaining total will then be distributed by the MOFCOM in line with the provisions of article 7 and the results of distribution shall be published 45 days before the completion of the licensing year.
Article 19. Holders of temporary export licenses shall, at the time of applying for licenses, fill in the Application Form for Licenses according to the facts and stamp on the forms the official seal.
In the case of online application, the related electronic form should be filled in according to the facts and transmitted to the corresponding issuing bodies.
For online application or application in writing, the operators shall submit or mail at the same time the related export contract (copy of the original) to the issuing bodies.
Article 20. Upon receiving valid applications for licenses that are correct in content and complete in form, the various issuing bodies shall, on the strength of the approval document for temporary export licenses issued by various local commerce authorities that are authorized by the MOFCOM and related electronic data, issue licenses within 3 working days.
Article 21. For commodities subject to temporary export license administration, the operators, upon obtaining temporary export licenses, shall apply to the temporary licenses issuing bodies authorised by the AQSIQ for certificates of place of origin of textiles.
The issuing bodies shall issue certificates of place of origin of textiles on the basis of the licenses and require that the quantity, value and other items of the two certificates/licenses should strictly match.
Article 22. Operators shall handle the export customs declaration formalities on the basis of the licenses stamped with the special seal for textiles license.
The commodities shall be inspected and granted access to the related importing countries on the strength of the electronic data and written licenses from the MOFCOM and certificates of place of origin issued by competent issuing bodies.
Article 23. In the course of handling textiles export related formalities, the Customs shall inspect the licenses stamped with the special seal for textile licenses and handle the inspection and exit granting formalities for the exportation of textiles subject to legitimate inspection on the strength of the Notice of Customs Clearance of Outgoing Commodities issued by the inspection and quarantine agencies.
The MOFCOM shall exercise Internet linked inspection over licenses jointly with the Customs General Administration. Measures governing electronic inspection mechanism and related inspection and verification shall be worked out and published for implementation separately.
Article 24. Temporary export licenses for textiles shall not be transferred, sold or bought, forged or altered. Parties involved in the transfer, selling or buying, or forging of export license documents or export licenses shall be subject to punishments in line with related provisions of the Foreign Trade Law of the People's Republic of China, Customs Law of the People's Republic of China, Regulations of the People's Republic of China on the Administration of Import and Export Commodities and Measures Governing Goods Subject to Export Licenses. The MOFCOM may also revoke the quantity of temporary export licenses of textiles obtained by the violators at the same time.
Article 25. The exportation of sample products may be exempted from obtaining export licenses in cases where the quantity of each batch of commodities exported does not exceed 50 pieces (including sets, pairs, kilograms or other commodities unit, not including dozen, double-dozen, dozen-set, ton, etc).
However, in cases where the products are subject to license administration by the customs authority of the importing country, the operators shall apply to the issuing bodies for licenses within the quota of license allowed to them.
Article 26. Exportation of articles for display and articles for display and sales for the purpose of participation in overseas exhibitions or holding of exhibitions shall be handled in line with the provisions of the Measures Governing Goods Subject to Export Licenses.
In cases where the customs of the importing country requires licenses to grant access, the related provisions of article 25 of this set of measures shall apply.
Article 27. For commodities subject to temporary export licenses, if these are already subject to automatic export license of textiles before the implementation of this set of rules, the Automatic License for Exportation of Textiles obtained by operators shall not be used as a certificate on which the customs would give customs clearance, starting from the day of the implementation of the temporary export licenses.
Article 28. For acts whereby operators export products that are originated from China listed in the Catalogue of Commodities subject to Licenses via a third country or region to countries or regions to avoid the provisions of this set of rules the MOFCOM shall publish the names of the violators upon verification and shall ban the violators from engaging in any exportation activities related to goods that are subject to temporary export licenses for a year starting from the day when the related administrative sanction enters into force.
Article 29. The related provisions of the Measures Governing Licenses for Commodities' Export shall be referred to in the case of issuance of licenses, investigations launched by law enforcement bodies, inspection by the license issuing bodies, and the imposition of punishments to license issuing bodies in violation of the provisions of this set of measures and operators that transfer, sell or buy, forge or alter a license, unless otherwise specified.
Article 30. This set of measures shall not be applicable to textiles that are processed by way of OPA in Mainland China and whose place of origin is not identified as Mainland China.
Article 31. MOFCOM shall be entitled to the interpretation right of this set of measures.
Article 32. This set of measures shall enter into force as of July 20, 2005.