China

(Adopted at the 7th Session of the Standing Committee of the 8th National People’s Congress and Promulgated on May 12, 1994 and amended at the 8th Session of the Standing Committee of the 10th National People’s Congress and Promulgated on April 6, 2004; and amended in accordance with the Decision of the Standing Committee of the National People’s Congress on Amending Twelve Laws including the Foreign Trade Law of the People’s Republic of China as adopted at the 24th Session of the Standing Committee of the Twelfth National People’s Congress on No. 7, 2016.)

Chapter I Principles

Article 1 This Law is formulated with a view to enlarging opening to the outside world, developing the foreign trade, maintaining the foreign trade order, protecting the legal rights of foreign trade dealers and promoting a healthy development of the socialist market economy.

Article 2 This Law is applicable to foreign trade and intellectual property protection concerning foreign trade.
Foreign trade as mentioned in this Law shall cover the import and export of goods, technologies and the international trade in services.

Article 3 The authority responsible for foreign trade and economic relations under the State Council is in charge of the administration of the foreign trade of the entire country pursuant to this Law.

Article 4 The State shall apply the foreign trade system on a uniform basis, encourage the development of its foreign trade and maintain a fair and free foreign trade order in accordance with law.

Article 5 The People’s Republic of China promotes and develops trade ties with other countries and regions, enters into or participates customs unions agreement, free trade zone agreement and other regional economic trade agreement and attends regional economic organisation on the principles of equality and mutual benefit.

Article 6 The People’s Republic of China shall, under international treaties or agreements to which the People’s Republic of China is a contracting party or a participating party, grant the other contracting parties or participating parties most-favoured-nation treatment or national treatment within the field of foreign trade, or on the participles of mutual advantage and reciprocity, grant the other party most-favoured-nation treatment or national treatment.

Article 7 In the event that any country or region applies discriminatory prohibition, restriction or other like measures against the People’s Republic of China in respect of trade, the People’s Republic of China may, as the case may be, take counter-measures against the country or region in question.

Chapter II Foreign Trade Dealers

Article 8 Foreign trade dealers as mentioned in this Law shall cover the legal entities, other organisations or individuals engaged in foreign trade dealings and fulfilled industrial and commercial registration or other practice procedures in compliance with the provisions of this Law and other laws and administrative regulations.

Article 9 A foreign trade dealer who intends to engage in the import and export of goods and technologies shall register in the authority responsible for foreign trade and economic relations under the State Council; but those who are not required to register according to laws, administrative regulations and rules from the authority responsible for foreign trade and economic relations under the State Council need not to register. The detailed measure of registration shall be stipulated by the authority responsible for foreign trade and economic relations under the State Council.

The foreign trade dealer who does not register as required, the Customs shall not permit its customs clearance concerning its imported or exported goods.

Article 10 The foreign trade dealer who intends to engage in the foreign service trade shall comply with this Law and other relevant laws and administrative regulations.

The entity who intends to engage in the foreign labour service cooperation shall obtain corresponding qualification. The detailed measure will be stipulated by the State Council.

Article 11 The State may implement state owned trade management upon import and export of some goods. The import and export business of those state owned trade management goods are only allowed to be operated by authorised entity. However, some non-authorisation entities permitted by the State are allowed to be engaged in the import and export business of state owned trade management.

The catalogue of goods and authorised entity of state owned trade management will be confirmed, adjusted and promulgated by the authority responsible for foreign trade and economic relations under the State Council and other relevant authorities.

The Customs will not allow the customs clearance for the entity who violates Clause 1 of this Article and import and export the state owned trade management goods without authorisation.

Article 12 The foreign trade dealer may accept others entrust to deal with foreign trade for others within its own business scope.

Article 13 The foreign trade dealer shall submit documents related to its foreign trade business according to the regulation of the authority responsible for foreign trade and economic relations under the State Council or other relevant authorities under the State Council. The relevant authorities shall keep the trade secrete confidential for the provider.
 

Chapter III Import and Export of Goods and Technologies

Article 14 The State allows free import and export of goods and technologies except where laws or administrative regulations provided otherwise.

Article 15 For monitoring import and export, the authority responsible for foreign trade and economic relations under the State Council may give some free import and export goods automatic permission and promulgate its catalogue.

For the import and export goods in the automatic permission catalogue, the receiver or the deliverer shall apply for automatic application before customs clearance, the authority responsible for foreign trade and economic relations under the State Council or its authorised organisation shall approve the application. For those who do not apply for the automatic permission, the Customs would not give customs clearance.

For the import and export technologies in the automatic permission catalogue, the receiver or the deliverer shall put contract on record in the department in charge of foreign trade or its authorised organisation.

Article 16 The State may restrict or prohibit the import or export of goods or technologies for following reasons:

1. Where the import or export shall be restricted or prohibited in order to safeguard the national security, public interest or public morality;
2. Where the import or export shall be restricted or prohibited in order to protect the healthiness and security, to protect the life or healthiness of animal and plant and to protect circumstance;
3. Where the import or export shall be restricted or prohibited in order to implement measures concerning the import and export of gold or silver;
4. Where the export shall be restricted or prohibited on account of domestic shortage in supply or effective protection of exhaustible domestic resources;
5. Where the export shall be restricted due to the limited market capacity of the importing country or region;
6. Where the export shall be restricted due to the disorder of export system;
7. Where the import shall be restricted in order to establish or accelerate the establishment of a particular domestic industry;
8. Where the restriction on the import of agricultural, animal husbandry or fishery products in any form is necessary;
9. Where the import shall be restricted in order to maintain the State’s international financial status and the balance of international payments;
10. Where the import or export shall be restricted or prohibited according to laws and regulations;
11. Where, as the international treaties or agreements to which the People’s Republic of China is a contracting party or a participating party require, the import or export shall be restricted or prohibited.

Article 17 The State may take any necessary measure to safeguard the national securities for the import and export of goods and technologies related to fission material, fusion material and other material derived from these materials and import and export of weapon, ammunition and other military supplier.

To safeguard the world peace and securities during the wartime, the State may take any necessary measures on the import and export of goods and technologies.

Article 18 The authority responsible for foreign trade and economic relations under the State Council shall, in collaboration with the relevant authorities under the State Council and in accordance with the provisions of Article 16 and Article 17 of this Law, formulate, adjust and publish the list of goods and technologies whose import or export are subject to restrictions or prohibitions.

Upon the approval of the State Council the authority responsible for foreign trade and economic relations under the State Council may, within the framework of Article 16 and Article 17, independently or in collaboration with the relevant authorities under the State Council determine, on a temporary basis, to impose restriction or prohibition on the import or export of particular goods or technologies not included in the list mentioned in the preceding paragraph.

Article 19 Goods whose import or export is restricted shall be subject to quota and licensing control; technologies whose import or export is restricted shall be subject to licensing control.

Import or export of any goods and technologies subject to quota and licensing control will be effected only with the approval of the authorities responsible for foreign trade and economic relations under the State Council or the joint approval of the foregoing authorities and other authorities concerned under the State Council in compliance with the provisions of the State Council.

The State may restrict the import of some goods by tariff quota.

Article 20 Import and export quotas of goods and tariff quotas shall be distributed on the basis of the principles of transparency, fairness, impartiality and efficiency by the authority responsible for foreign trade and economic relations under the State Council or the relevant authorities under the State Council within their respective responsibilities. The detailed measures are to be regulated by the State Council.

Article 21 The State shall implement a uniform goods quality evaluation system in accordance with the relevant laws and administrative regulations to certify, inspect, and quarantine goods for import and export purposes.

Article 22 The State shall monitor the place of origin of import and export goods. The State Council will issue the detailed measures in this regard.

Article 23 Where the import or export of cultural relics, wildlife animals, plants and the products thereof are prohibited or restricted by other laws or administrative regulations, the provisions of the laws and regulations in question shall be observed.
 

Chapter IV International Trade in Services

Article 24 With respect to international trade in services, the People’s Republic of China, pursuant to the commitments made in international treaties or agreements to which the People’s Republic of China is a contracting party or a participating party, grants the other contracting parties and participating parties market access and national treatment.

Article 25 The authority responsible for foreign trade and economic relations under the State Council and other relevant authorities under the State Council are responsible for the administration of international trade in services in accordance with this Law and other relevant laws and administrative regulations.

Article 26 The State may restrict or prohibit international trade in the relevant services on the basis of any of the following considerations:

1. To restrict or to prohibit international trade in services in order to safeguard national security, public interest, or public morality;
2. To restrict or to prohibit international trade in services in order to protect human health or safety, to protect the life or health of animals and plants, and to protect the environment;
3. To restrict international trade in services in order to establish or accelerate the establishment of a particular domestic service industry;
4. To restrict international trade in services in order to maintain the State’s balance of international payments;
5. Other restrictions or prohibitions provided in the relevant laws and administrative regulations;
6. Other restrictions or prohibitions in accordance with international treaties and agreements to which the People’s Republic of China is a contracting or participating party.

Article 27 The State may adopt any measures necessary as regards international trade in services relating to the military, or fission or fusion materials or any materials derived thereof to protect national security.

The State may adopt any necessary measures as regards international trade in services in times of war, or to preserve international peace and security.

Article 28 The authority responsible for foreign trade and economic relations under the State Council and other relevant authorities under the State Council shall draft, revise and promulgate the market entry catalogue for international trade in services in accordance with Article 26 and Article 27 of this Law, and in accordance with other relevant laws and regulations.

Chapter V Protection of Intellectual Property Rights in Foreign Trade

Article 29 The State shall protect intellectual property rights in foreign trade in accordance with the relevant intellectual property right laws and administrative regulations.

Where the import of goods infringes upon intellectual property rights, and harms the foreign trade order, the authority responsible for foreign trade and economic relations under the State Council may adopt measures such as prohibiting the import of goods related to those manufactured or distributed by persons infringing upon intellectual property rights.

Article 30 Where an intellectual property right holder prevents the licensee under the intellectual property right license from effectively questioning the intellectual property right as set out in the licensing agreement, or imposes a catch-all license, or sets out an exclusive return-of-license condition in the license agreement; and where such conduct causes harm to fair competition in foreign trade, the authority responsible for foreign trade and economic relations under the State Council may adopt necessary measures to eliminate any such harm.

Article 31 Where other countries or regions did not provide legal persons, other organisations or individuals of the People’s Republic of China with the national treatment with respect to the protection of intellectual property rights, or where such countries or regions could not provide sufficient protection of intellectual property rights for goods, technology, and the provision of services originated in the People’s Republic of China, the authority responsible for foreign trade and economic relations under the State Council may adopt necessary trade measures with respect to the countries or regions in question in accordance with this Law and other relevant laws and administrative regulations, as well as international treaties and agreements to which the People’s Republic of China is contracting or participating party.

Chapter VI Foreign Trade Order

Article 32 One may not infringe upon the relevant anti-monopoly laws and administrative regulations to engage in monopoly activities in foreign trade.

Any monopoly activity in foreign trade that causes harm to fair competition in the market place shall be dealt with in accordance with the relevant anti-monopoly laws and administrative regulations.

Where any infringing activity mentioned in this provision has caused harm to the foreign trade order, the authority responsible for foreign trade under the State Council may adopt any necessary measures to eliminate such harm.

Article 33 In foreign trade activities, one may not engage in unfair low pricing, collusion in tendering, making misleading public statements, commercial corruption and other unfair competition activities.

Unfair competition activities in foreign trade shall be dealt with in accordance with the relevant unfair competitions laws and regulations.

In regard to any unlawful conduct mentioned in this provision that harms the foreign trade order, the authority responsible for foreign trade under the State Council may adopt measures such as prohibiting the import or export of the relevant goods or technology of the infringing persons in question.

Article 34 The following conducts are prohibited in foreign trade activities:

1. Forgery or distortion of the country of origin symbol for import and export goods; forgery, distortion or trading of certificates of country of origin, import or export license, import or export quota certificate, or other import or export certification documents;
2. Defrauding refunded tax on exports;
3. Smuggling;
4. Avoiding certifications, inspections and quarantines provided for by law and administrative regulations;
5. Other acts contrary to the provisions of laws and administrative regulations.

Article 35 In foreign trade activities, foreign trade dealers shall abide by the relevant State regulations on the administration of foreign exchange.

Article 36 The authority responsible for foreign trade under the State Council may make a public statement about any operation that contravenes this Law and that causes harm to the foreign trade order.
 

Chapter VII Foreign Trade Investigation

Article 37 In order to preserve the foreign trade order, the authority responsible for foreign trade and economic relations under the State Council may, on its own or jointly with other relevant departments under the State Council, conduct investigations in respect of the following matters in accordance with the laws and administrative regulations:

1. The effect of imported or exported goods and technologies and international trade in services on domestic industries and their competitiveness;
2. Trade barriers of other countries or regions;
3. Matters requiring investigation in order for the authorities to make a determination as to whether to adopt antidumping, countervailing or protective measures, or other foreign trade remedies in accordance with the law;
4. Evasion of trade remedies;
5. Foreign trade matters that are relevant to national security or national interest;
6. Matters requiring investigation in the execution of Article 7, Clause 29(2), Article 30, Article 31, Clause 32(3), and Clause 33(3) of this Law;
7. Other matters affecting the foreign trade order that require investigation.

Article 38 The authority responsible for foreign trade and economic relations under the State Council is responsible for issuing a public statement signalling the commencement of a foreign trade investigation.

Foreign trade investigations may be conducted in the forms of written questionnaires, hearings, onsite investigations, entrusted investigations, and etc.

Based on the results of the investigation, the authority responsible for foreign trade and economic relations under the State Council shall put forward an investigation report or issue a ruling, and shall issue a public statement in this regard.

Article 39 The relevant institutions and individuals shall provide their cooperation and assistance in foreign trade investigations.

The authority responsible for foreign trade and economic relations under the State Council and other departments under the State Council and their staff have a duty of confidentiality with respect to any confidential information of the state or any commercial secrets made known to them during, or resulting from foreign trade investigations.

Chapter VIII Foreign Trade Remedies

Article 40 The State may adopt reasonable foreign trade remedial measures based on the results of foreign trade investigations.

Article 41 Where goods originated in other countries or regions have entered into the Chinese market by way of dumping at lower than their market value, and which caused substantial damage or threaten to cause substantial damage to established domestic industries, or constitute a substantial encumbrance with respect to the establishment of domestic industries, the State may adopt antidumping measures to eliminate or reduce the damage or the threat of damage, or the encumbrance in question.

Article 42 Where goods originated in other countries or regions are exported into a third country at lower than their market value, and which caused substantial damage or threaten to cause substantial damage to established domestic industries, or constitute a substantial encumbrance with respect to the establishment of Chinese domestic industries, and upon receiving an application from Chinese domestic enterprises in this regard, the authority responsible for foreign trade and economic relations under the State Council may enter into discussions with the third country, and requesting the third country to adopt adequate measures in this regard.

Article 43 Where goods imported into China have directly or indirectly received any form of targeted subsidy from the exporting country or region, and where such actions have caused substantial damage or threaten to cause substantial damage to Chinese domestic industries, or constitute a substantial encumbrance with respect to the establishment of Chinese domestic industries, the State may adopt countervailing measures to eliminate or to reduce the damage or threat of damage, or the encumbrance in question.

Article 44 Where a sharp increase in the volume of imported goods has caused serious harm or threatens to cause serious harm to domestic industries that manufacture the same kind of goods, or goods that compete directly with imported goods, the State may adopt necessary protective measures to eliminate or reduce the damage or threat of damage in question, and may provide necessary support to the domestic industries in question.

Article 45 Where an increase in services provided in China by service providers of other countries or regions has caused damage or threatens to cause damage to domestic industries providing the same kind of service or services that are in direct competition with the service provided by the foreign service providers, the State may adopt the necessary remedies to eliminate or to reduce the damage or threat of damage.

Article 46 Where a sharp increase in the volume of a type of imported goods in China is caused by import restrictions set by a third country, and such increase in volume has caused damage or threatens to cause damage to Chinese domestic industries, or constitutes an encumbrance with respect to the establishment of Chinese domestic industries, the State may adopt the necessary remedies to restrict the import of the type of goods in question.

Article 47 Where a country or region that has entered into an economic or trade treaty or agreement with the People’s Republic of China has breached the terms set out in the treaty or agreement, where such breach has caused the loss of, or damage to the interests that the People’s Republic of China would have enjoyed under the treaty or agreement, or where such breach prevents the realisation of the goals under the treaty or agreement, the Government of the People’s Republic of China has the right to demand that the relevant countries or regions adopt adequate remedies in this regard, and may suspend or stop fulfilling its related obligations under the relevant treaty or agreement.

Article 48 The authority responsible for foreign trade and economic relations under the State Council may conduct bilateral or multilateral foreign trade discussions, negotiations, and dispute resolutions in accordance with this Law and other related laws.

Article 49 The authority responsible for foreign trade and economic relations under the State Council shall establish an early warnings system as regards the import and export of goods and technologies, and international trade in services, in order to respond to sudden and abnormal events in foreign trade, and to preserve the stability of national economy.

Article 50 With respect to foreign trade remedies aimed at avoiding the application of this Law, the State may adopt the necessary anti-avoidance measures in this regard.
 

Chapter IX Promotion of Foreign Trade

Article 51 The State shall formulate foreign trade development strategies, and to establish and improve upon a mechanism for the promotion of foreign trade.

Article 52 The State shall establish and improve financial institutions for foreign trade, and establish funds for foreign trade development and venture funds as the development of foreign trade requires.

Article 53 The State may take import and export credit, export credit insurance, export tax refund, and other foreign trade promotion measures for the purpose of the development of foreign trade.

Article 54 The State shall establish a foreign trade public information service system to provide information service to foreign trade dealers and to other members of the public.

Article 55 The State shall adopt measures to encourage foreign trade dealers to explore the international market, and shall develop foreign trade in various forms such as foreign investment, foreign construction contracts and foreign labour cooperation.

Article 56 Foreign trade dealers may establish or join the relevant trade associations and Chambers of Commerce in accordance with the law.

The relevant associations and Chambers of Commerce shall abide by the relevant laws, administrative regulations, and Articles of Association to provide services to their members on the production, sale, information and training relating to foreign trade, to play a coordinating and self-regulatory role, to submit applications for foreign trade remedies in accordance with the law, to protect the interests of their members and of the industry, and to report to the relevant authorities of the Government the suggestions of their members with respect to foreign trade, and actively promote foreign trade activities.

Article 57 The international trade promotion organization of China shall, in accordance with its Articles of Association, engage in the development of foreign trade relations, sponsor exhibitions, provide information and advisory services and carry out other foreign trade promotional activities.

Article 58 The State shall support and promote the development of foreign trade in respect of small and mid-size enterprises.

Article 59 The State shall support and promote the development of foreign trade in national autonomous areas and economically under-developed areas.

Chapter X Legal Responsibilities

Article 60 With respect to any action in violation of Article 11 of this Law to engage in the unauthorized import or export of goods that are subject to state owned trade management, the authority responsible for foreign trade and economic relations under the State Council may impose a fine of less than RMB50,000; in case of serious breach, the authority responsible for foreign trade and economic relations under the State Council may prohibit the infringing persons from applying for the right to import/ export goods subject to state owned trade management, or to cancel any authorisation previously given to the infringing persons for the import/ export of other goods subject to state owned trade management for a period of THREE (3) years from the date on which the decision to impose administrative sanctions takes effect.

Article 61 Any activities with respect to the import or export of prohibited goods, or the import or export of restricted goods without authorization shall be dealt with or sanctioned by the Chinese customs authority in accordance with the relevant laws and regulations. And where such activities constitute criminal offences, they shall be subject to criminal prosecution.

The import or export of prohibited technologies or the import or export of restricted technologies without authorization, shall be dealt with or sanctioned in accordance with the relevant laws and regulations; where such conducts are not dealt with by law or regulation, the authority responsible for foreign trade and economic relations under the State Council shall issue a reprimand to ask for the correction of such conducts, to confiscate income derived from the illegal conducts, and to impose a fine of between 100% and 500% of the income derived from the illegal conducts; where no income is derived from the illegal conducts or where the income derived from the illegal conducts is less than RMB10,000, the fine shall be between RMB10,000 and RMB50,000. And where such conducts constitute criminal offences, they shall be subject to criminal prosecution.

The authority responsible for foreign trade and economic relations under the State Council may refuse to process any application for import or export quotas or permit submitted by the infringing persons within THREE (3) years from the date on which the decision to impose administrative sanctions takes effect, or the date on which the verdict with respect to the criminal prosecution takes effect. Alternatively, the authority responsible for foreign trade and economic relations under the State Council may prohibit the infringing persons from engaging in business activities in respect of the import and export of goods for a period of between ONE (1) to THREE (3) years.

Article 62 Any conducts to engage in prohibited international trade in services, or to engage in restricted international trade in services without authorization shall be sanctioned in accordance with the relevant laws and regulations. Where the laws or regulations do not provide for the sanction of such conducts, the authority responsible for foreign trade and economic relations under the State Council shall issue a reprimand and order the correction of such conducts, to order any illegal income confiscated, and to impose a fine of between 100% and 500% of the amount of the illegal income; where there is no illegal income or where the amount of the illegal income is less than RMB10,000, a fine of between RMB10,000 and RMB50,000 shall be imposed. And where such conducts constitute criminal offences, they shall be subject to criminal prosecution.

The authority responsible for foreign trade and economic relations under the State Council may prohibit the infringing persons from engaging in business activities relating to international trade in the relevant services for a period of between ONE (1) year and THREE (3) years from the date on which the decision to impose administrative sanctions takes effect or the date on which the verdict in the criminal prosecution takes effect.

Article 63 Any conduct in breach of Article 34 of this Law shall be sanctioned in accordance with the relevant laws and regulations; where such conduct constitutes a criminal offence, it shall be subject to criminal prosecution.

The authority responsible for foreign trade and economic relations under the State Council may prohibit the infringing persons from engaging in business activities relating to foreign trade for a period of ONE (1) to THREE (3) years from the date on which the decision to impose administrative sanctions takes effect, or the date on which the verdict in the criminal prosecution takes effect.

Article 64 Within the prohibition period imposed in accordance with Article 61 to Article 63 of this Law, the Chinese customs authority shall not, in accordance with the decision rendered by the authority responsible for foreign trade and economic relations under the State Council, process any import or export goods relating to the foreign trade dealer in question, and foreign exchange departments or designated foreign exchange banks shall not process the related exchange settlement or sale of exchange.

Article 65 In accordance with this Law, personnel serving in the State’s foreign trade authorities who commit any neglect of duty, malpractice, irregularities or abuse of power, which constitute criminal offences, shall be subject to criminal prosecutions pursuant to law; as to those offences which do not constitute crimes, administrative sanctions shall apply.

In accordance with this Law, personnel serving in the State’s foreign trade authorities who extort property from others with job convenience or illegally accept others’ property and seek advantages for them in return and thus commit criminal offences shall be subject to criminal prosecutions; where such conducts do not constitute criminal offences, administrative sanctions shall apply.

Article 66 Where any foreign trade dealers are not satisfied with the concrete administrative measures taken by the authority responsible for foreign trade in accordance with this Law, such persons may bring an administrative appeal in accordance with the law, or bring an administrative lawsuit in the People’s Court of China.

Chapter XI Final Provisions

Article 67 The administration of military products, cultural products, and fission and fusion materials or any materials derived thereof, shall abide by the specific laws and regulations applicable thereto.

Article 68 The State applies flexible measures, provides favourable conditions and conveniences to the trade between the towns on the frontier and those towns of neighbouring countries on the frontier as well as trade among border residents. Detailed rules are to be laid down by the State Council.

Article 69 This Law shall not apply to the separate customs territories of the People’s Republic of China.

Article 70 This Law shall enter into force as of July 1, 2004.