[Hongde Information] Registration of Foreign Trade Operators Cancelled! Enterprises automatically obtain import and export rights! The Foreign Trade Law of the People's Republic of China was promulgated after revision.

Hongde International was informed that since 2019.12.1, the foreign trade operators record registration system took the lead in the free trade zone pilot to cancel the approval.

Decision of the Standing Committee of the National People's Congress on Amending the Foreign Trade Law of the the People's Republic of China of China (adopted at the 38th Session of the Standing Committee of the 13th National People's Congress on December 30, 2022)

As decided at the 38th Session of the Standing Committee of the 13th National People's Congress, the the People's Republic of China Foreign Trade Law shall be amended as follows:

Article 9 was deleted.

This Decision shall come into force as of the date of promulgation.

The Foreign Trade Law of the the People's Republic of China shall be republished with corresponding amendments and adjustments to the order of its articles in accordance with this Decision.

Since then, enterprises engaged in import and export business will no longer go through the registration procedures for foreign trade operators, and enterprises will automatically obtain import and export rights! (still need to go through customs registration to obtain customs clearance)

the People's Republic of China Foreign Trade Law

Chapter I General Provisions

Chapter II Foreign Trade Operators

Chapter III Import and Export of Goods and Technology

Chapter IV International Trade in Services

Chapter V Protection of Intellectual Property Related to Foreign Trade

Chapter VI Foreign Trade Order

Chapter VII Foreign Trade Investigation

Chapter VIII Remedies for Foreign Trade

Chapter IX Promotion of Foreign Trade

Chapter X Legal Liability

Chapter XI Supplementary Provisions

Chapter I General Provisions

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

Article 2 This Law shall apply to foreign trade and the protection of foreign trade-related intellectual property rights.

The term "foreign trade" as used in this Law refers to the import and export of goods, technology and international trade in services.

Article 3 The department in charge of foreign trade under the State Council shall be in charge of foreign trade throughout the country in accordance with this Law.

Article 4 The State applies a unified foreign trade system, encourages the development of foreign trade and maintains a fair and free foreign trade order.

Article 5 The the People's Republic of China shall, on the principle of equality and mutual benefit, promote and develop trade relations with other countries and regions, conclude or participate in such regional economic and trade agreements as customs union agreements and free trade agreements, and participate in regional economic organizations.

Article 6 In the field of foreign trade, the the People's Republic of China shall, in accordance with the international treaties and agreements it has concluded or acceded to, grant the other contracting parties or participating parties most-favored-nation treatment, national treatment, etc., or grant the other party most-favored-nation treatment, national treatment, etc., in accordance with the principles of reciprocity and reciprocity.

Article 7 Where any country or region adopts discriminatory prohibitions, restrictions or other similar measures against the People's Republic of China in the field of trade, the the People's Republic of China may, according to the actual situation, take corresponding measures against the country or region.

Chapter II Foreign Trade Operators

Article 8 The term "foreign trade operator" as mentioned in this Law refers to a legal person, other organization or individual that has gone through industrial and commercial registration or other practice procedures in accordance with the law and is engaged in foreign trade activities in accordance with the provisions of this Law and other relevant laws and administrative regulations.

Article 9 Foreign trade operators engaged in the import and export of goods or technology shall register with the competent department of foreign trade under the State Council or the agency entrusted by it; however, laws, administrative regulations and the provisions of the competent department of foreign trade under the State Council do not require record registration. The specific measures for archival filing and registration shall be formulated by the competent foreign trade department under the State Council. If a foreign trade operator fails to register for the record in accordance with the provisions, the Customs shall not handle the customs clearance procedures for import and export goods.

Article 10 International trade in services shall be conducted in compliance with the provisions of this Law and other relevant laws and administrative regulations.

Units engaged in foreign labor service cooperation shall have corresponding qualifications. The specific measures shall be formulated by the State Council.

Article 11 The State may exercise state-run trade administration over the import and export of some goods. The import and export business of goods under state-owned trade management can only be operated by authorized enterprises; however, the state allows the import and export business of part of the state-owned trade management goods to be operated by unauthorized enterprises. The catalogues of goods and authorized enterprises subject to state-run trade management shall be determined, adjusted and published by the department in charge of foreign trade under the State Council in conjunction with other relevant departments under the State Council.

In violation of the provisions of the first paragraph of this article, the customs shall not release the goods that are subject to state-owned trade management.

Article 12 Foreign trade dealers may accept the entrustment of others to handle foreign trade business on their behalf within the scope of business.

Article 13 Foreign trade dealers shall, in accordance with the provisions made by the department in charge of foreign trade under the State Council or other relevant departments under the State Council according to law, submit documents and materials related to their foreign trade activities to the relevant departments. The relevant departments shall keep commercial secrets for the providers.

Chapter III Import and Export of Goods and Technology

Article 14 The State permits the free import and export of goods and technologies. However, unless otherwise provided by laws and administrative regulations.

Article 15 The department in charge of foreign trade under the State Council may, on the basis of the need to monitor the import and export situation, implement automatic import and export licensing for some goods that are freely imported and exported and publish their catalogues.

For import and export goods subject to automatic licensing, if the consignee or consignor applies for automatic licensing before going through the customs declaration procedures, the competent department of foreign trade under the State Council or the agency entrusted by it shall grant permission; if the automatic licensing procedures are not completed, the customs shall not release the goods.

The import and export of technologies that are freely imported and exported shall be registered with the department in charge of foreign trade under the State Council or the agency entrusted by it.

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

(I) the need to restrict or prohibit import or export for the sake of safeguarding national security, social public interests or public morals;

(II) it is necessary to restrict or prohibit the import or export for the protection of human health or safety, the protection of the life or health of animals or plants, or the protection of the environment;

(III) it is necessary to restrict or prohibit the import or export of gold or silver in order to implement measures relating to the import or export of gold or silver;

(IV) there is a shortage of domestic supply or in order to effectively protect the natural resources that may be exhausted, it is necessary to restrict or prohibit the export;

The market capacity of the (V) to the country or region is limited, and it is necessary to restrict the export;

(VI) there is a serious disorder in the export business order and it is necessary to restrict exports;

(VII) need to restrict imports in order to establish or accelerate the establishment of a specific domestic industry;

(VIII) it is necessary to restrict the import of agricultural, animal husbandry and fishery products in any form;

(IX) the need to restrict imports in order to safeguard the country's international financial status and balance of payments;

(X), in accordance with the provisions of laws and administrative regulations, it is necessary to restrict or prohibit the import or export of other goods;

(xi) Other restrictions or prohibitions on import or export are necessary in accordance with the provisions of international treaties or agreements concluded or acceded to by China.

Article 17 With regard to the import and export of goods and technologies related to fissile and fusion substances or substances derived from such substances, as well as the import and export of weapons, ammunition or other military materials, the State may take any necessary measures to safeguard State security.

In wartime or for the maintenance of international peace and security, the State may take any necessary measures in respect of the import and export of goods and technologies.

Article 18 The department in charge of foreign trade under the State Council shall, in conjunction with other relevant departments under the State Council, formulate, adjust and publish the catalogue of goods and technologies whose import and export are restricted or prohibited in accordance with the provisions of Articles 16 and 17 of this Law.

The department in charge of foreign trade under the State Council, or in conjunction with other relevant departments under the State Council, may, with the approval of the State Council, temporarily decide to restrict or prohibit the import or export of specific goods or technologies not listed in the preceding paragraph within the scope of the provisions of Articles 16 and 17 of this Law.

Article 19 The State shall administer the goods restricted from import or export by means of quotas and licenses, and the technologies restricted from import or export shall be administered by licenses.

Goods and technologies subject to the administration of quotas and licenses shall, in accordance with the provisions of the State Council, be imported or exported with the permission of the department in charge of foreign trade under the State Council or with the permission of it in conjunction with other relevant departments under the State Council.

The State may apply tariff quota management to some imported goods.

Article 20 The quotas and tariff quotas for import and export goods shall be allocated by the department in charge of foreign trade under the State Council or other relevant departments under the State Council within the scope of their respective duties and in accordance with the principles of openness, fairness, impartiality and efficiency. The specific measures shall be formulated by the State Council.

Article 21 The State shall implement a unified commodity conformity assessment system and, in accordance with the provisions of relevant laws and administrative regulations, carry out certification, inspection and quarantine of import and export commodities.

Article 22 The State shall administer the origin of imported and exported goods. The specific measures shall be formulated by the State Council.

Article 23 Where the import or export of cultural relics, wildlife, plants and their products is prohibited or restricted by other laws and administrative regulations, the provisions of the relevant laws and administrative regulations shall apply.

Chapter IV International Trade in Services

Article 24 The the People's Republic of China shall grant market access and national treatment to other contracting parties and participating parties in international trade in services in accordance with the commitments made in the international treaties and agreements it has concluded or acceded.

Article 25 The department in charge of foreign trade under the State Council and other relevant departments under the State Council shall administer international trade in services in accordance with the provisions of this Law and other relevant laws and administrative regulations.

Article 26 The State may restrict or prohibit relevant international trade in services for the following reasons:

The (I) needs to be restricted or prohibited in order to safeguard national security, social public interests or public morals;

(II) need to be restricted or prohibited for the protection of human health or safety, the protection of animal or plant life or health, or the protection of the environment;

(III) need to restrict in order to establish or accelerate the establishment of a specific domestic service industry;

(IV) restrictions are needed to ensure the country's foreign exchange balance;

(V) other restrictions or prohibitions are necessary in accordance with the provisions of laws and administrative regulations;

(VI) other restrictions or prohibitions are necessary in accordance with the provisions of international treaties or agreements concluded or acceded to by China.

Article 27 With regard to military-related international trade in services, as well as international trade in services related to fissile and fusion materials or materials from which such materials are derived, the State may take any necessary measures to safeguard State security.

In time of war or for the maintenance of international peace and security, the State may take any necessary measures in respect of international trade in services.

Article 28 The department in charge of foreign trade under the State Council shall, in conjunction with other relevant departments under the State Council, formulate, adjust and publish the market access catalogue of international trade in services in accordance with the provisions of Articles 26 and 27 of this Law and other relevant laws and administrative regulations.

Chapter V Protection of Intellectual Property Related to Foreign Trade

Article 29 The State protects foreign trade-related intellectual property rights in accordance with the laws and administrative regulations on intellectual property rights.

Where the imported goods infringe upon the intellectual property rights and endanger the foreign trade order, the department in charge of foreign trade under the State Council may take such measures as prohibiting the import of the relevant goods produced and sold by the infringer within a certain period of time.

Article 30 If the intellectual property right holder prevents the licensee from questioning the validity of the intellectual property rights in the license contract, conducts a compulsory package license, stipulates the conditions for exclusive grant-back in the license contract, and endangers the order of fair competition in foreign trade, the competent department of foreign trade under the State Council may take necessary measures to eliminate the harm.

Article 31 Where other countries or regions fail to grant national treatment to the People's Republic of China legal persons, other organizations or individuals in the protection of intellectual property rights, or fail to provide full and effective protection of intellectual property rights to goods, technologies or services originating from the People's Republic of China, the competent foreign trade department under the State Council may, in accordance with the provisions of this Law and other relevant laws and administrative regulations, and in accordance with the international treaties and agreements concluded or acceded to by the the People's Republic of China, take necessary measures for trade with the country or region.

Chapter VI Foreign Trade Order

Article 32 In foreign trade activities, monopolistic acts shall not be carried out in violation of the provisions of relevant anti-monopoly laws and administrative regulations.

In foreign trade activities, monopolistic acts that endanger fair market competition shall be dealt with in accordance with the provisions of relevant anti-monopoly laws and administrative regulations. Where an illegal act as described in the preceding paragraph endangers the foreign trade order, the department in charge of foreign trade under the State Council may take necessary measures to eliminate the harm.

Article 33 In foreign trade business activities, unfair competition acts such as selling commodities at unfair low prices, colluding in bidding, publishing false advertisements, and engaging in commercial bribery shall not be carried out.

Where acts of unfair competition are committed in foreign trade activities, they shall be dealt with in accordance with the provisions of the relevant laws and administrative regulations against unfair competition.

Where an illegal act as described in the preceding paragraph endangers the foreign trade order, the foreign trade department under the State Council may take measures such as prohibiting the import and export of the relevant goods and technologies by the operator to eliminate the harm.

Article 34 In foreign trade activities, the following acts are prohibited:

(I) forging or altering the marks of origin of import and export goods, forging, altering or buying or selling certificates of origin of import and export goods, import and export licenses, import and export quota certificates or other import and export certification documents;

(II) defrauding export tax rebates;

(III) smuggling;

(IV) evade certification, inspection and quarantine as prescribed by laws and administrative regulations;

(V) other acts that violate the provisions of laws and administrative regulations.

Article 35 Foreign trade dealers shall, in their foreign trade activities, abide by the relevant provisions of the State on foreign exchange control.

Article 36 Where any violation of the provisions of this Law endangers the foreign trade order, the department in charge of foreign trade under the State Council may make an announcement to the public.

Chapter VII Foreign Trade Investigation

Article 37 In order to maintain the foreign trade order, the department in charge of foreign trade under the State Council may, on its own or in conjunction with other relevant departments under the State Council, investigate the following matters in accordance with the provisions of laws and administrative regulations:

(I) the impact of import and export of goods, technology and international trade in services on domestic industries and their competitiveness;

(II) the trade barriers of the countries or regions concerned;

(III) matters that need to be investigated in order to determine whether foreign trade remedies such as anti-dumping, countervailing or safeguard measures should be taken in accordance with the law;

(IV) circumvention of foreign trade remedies;

(V) matters concerning national security interests in foreign trade;

(VI) matters that need to be investigated for the purpose of implementing the provisions of Article 7, the second paragraph of Article 29, Article 30, Article 31, the third paragraph of Article 32, and the third paragraph of Article 33 of this Law;

(VII) other matters that affect the foreign trade order and need to be investigated.

Article 38 The initiation of a foreign trade investigation shall be announced by the department in charge of foreign trade under the State Council.

The investigation may be conducted by means of a written questionnaire, a hearing, an on-the-spot investigation, a commissioned investigation, etc.

The department in charge of foreign trade under the State Council shall, on the basis of the investigation results, submit an investigation report or make a decision on the handling of the case, and issue a public announcement.

Article 39 Relevant units and individuals shall cooperate and assist in foreign trade investigations.

The department in charge of foreign trade under the State Council and other relevant departments under the State Council and their staff shall have the obligation to keep confidential the state secrets and commercial secrets they know when conducting foreign trade investigations.

Chapter VIII Remedies for Foreign Trade

Article 40 The State may take appropriate foreign trade remedies based on the results of foreign trade investigations.

Article 41 Where the products of other countries or regions enter the Chinese market by dumping below their normal value, causing material injury or threat of material injury to an established domestic industry, or causing material obstruction to the establishment of a domestic industry, the State may take anti-dumping measures to eliminate or mitigate such injury or threat of injury or obstruction.

Article 42 If the products of other countries or regions are exported to the market of a third country at a value lower than the normal value, causing material damage or threat of material damage to the established domestic industries of our country, or causing material obstacles to the establishment of domestic industries of our country, the competent department of foreign trade under the State Council may consult with the government of the third country upon the application of the domestic industry and require it to take appropriate measures.

Article 43 Where an imported product directly or indirectly receives any form of specific subsidy from the exporting country or region, causing material injury or threat of material injury to an established domestic industry, or causing material obstruction to the establishment of a domestic industry, the State may take countervailing measures to eliminate or mitigate such injury or threat of injury or obstruction.

Article 44 Where a large increase in the quantity of imported products causes serious damage or threat of serious damage to a domestic industry that produces similar products or products in direct competition with them, the State may take necessary safeguard measures to eliminate or mitigate such damage or threat of damage, and may provide necessary support to the industry.

Article 45 Where the increase in the services provided to China by service providers from other countries or regions causes damage or threat of damage to domestic industries that provide similar services or services in direct competition with them, the State may take necessary relief measures to eliminate or mitigate such damage or threat of damage.

Article 46 Where a substantial increase in the number of certain products entering the Chinese market due to import restrictions by a third country causes damage or threat of damage to an established domestic industry, or hinders the establishment of a domestic industry, the State may take necessary relief measures to restrict the import of the product.

Article 47 If a country or region that has concluded or jointly participated in an economic and trade treaty or agreement with the the People's Republic of China violates the provisions of the treaty or agreement, causing the loss or damage to the benefits enjoyed by the the People's Republic of China under the treaty or agreement, or hindering the realization of the objectives of the treaty or agreement, the the People's Republic of China government has the right to request the government of the country or region concerned to take appropriate remedial measures, and may suspend or terminate the performance of relevant obligations in accordance with the relevant treaties or agreements.

Article 48 The department in charge of foreign trade under the State Council shall, in accordance with the provisions of this Law and other relevant laws, conduct bilateral or multilateral consultations, negotiations and dispute settlement in foreign trade.

Article 49 The department in charge of foreign trade under the State Council and other relevant departments under the State Council shall establish an early warning and emergency response mechanism for the import and export of goods, the import and export of technologies and international trade in services, so as to deal with unexpected and abnormal situations in foreign trade and safeguard national economic security.

Article 50 The State may take necessary anti-circumvention measures against acts of circumventing the foreign trade remedies provided for in this Law.

Chapter IX Promotion of Foreign Trade

Article 51 The State formulates foreign trade development strategies and establishes and improves foreign trade promotion mechanisms.

Article 52 The State shall, in accordance with the needs of the development of foreign trade, establish and improve financial institutions for foreign trade services and establish foreign trade development funds and risk funds.

Article 53 The State develops foreign trade by means of import and export credit, export credit insurance, export tax refund and other means of promoting foreign trade.

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

Article 55 The State shall take measures to encourage foreign trade dealers to explore the international market and develop foreign trade in various forms such as foreign investment, foreign project contracting and foreign labor service cooperation.

Article 56 Foreign trade operators may establish and join relevant associations and chambers of commerce in accordance with the law.

Relevant associations and chambers of commerce shall abide by laws and administrative regulations, provide their members with foreign trade-related production, marketing, information, training and other services in accordance with their articles of association, play a coordinating and self-regulatory role, and file applications for foreign trade remedies in accordance with the law. Safeguard the interests of members and industries, reflect members' suggestions on foreign trade to relevant government departments, and carry out foreign trade promotion activities.

Article 57 China's international trade promotion organizations shall, in accordance with their articles of association, carry out foreign relations, hold exhibitions, provide information, advisory services and other foreign trade promotion activities.

Article 58 The State supports and promotes the development of foreign trade by small and medium-sized enterprises.

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

Chapter X Legal Liability

Article 60 Anyone who, in violation of the provisions of Article 11 of this Law, imports or exports goods subject to state trade management without authorization, may be fined not more than 50,000 yuan by the competent foreign trade department of the State Council or other relevant departments of the State Council, or revoke the authorization given to him to engage in other state-run trade to manage the import and export of goods.

Article 61 The import and export of goods prohibited from import and export, or the import and export of goods restricted from import and export without permission, shall be dealt with and punished by the Customs in accordance with the provisions of relevant laws and administrative regulations; if a crime is constituted, criminal responsibility shall be investigated according to law.

Those who import and export technologies that are prohibited from import and export, or import and export technologies that are restricted from import and export without permission, shall be dealt with and punished in accordance with the provisions of relevant laws and administrative regulations; if there are no provisions in laws and administrative regulations, the competent foreign trade department of the State Council shall order corrections, confiscate the illegal income, and impose a fine of not less than one time and not more than five times the illegal income, A fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; If a crime is constituted, criminal responsibility shall be investigated according to law.

From the date when the administrative penalty decision specified in the preceding two paragraphs takes effect or the date when the criminal penalty judgment takes effect, the foreign trade department of the State Council or other relevant departments of the State Council may, within three years, not accept the application for import and export quotas or licenses submitted by the violator, Or prohibit the violator from engaging in the import and export of relevant goods or technologies within a period of not less than one year and not more than three years.

Article 62 Whoever engages in prohibited international trade in services or engages in restricted international trade in services without permission shall be punished in accordance with the provisions of relevant laws and administrative regulations; if there are no provisions in laws and administrative regulations, the competent department of foreign trade under the State Council shall order correction, confiscate the illegal income and impose a fine of not less than one time but not more than five times the illegal income. If there is no illegal income or the illegal income is less than 10,000 yuan, A fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; If a crime is constituted, criminal responsibility shall be investigated according to law.

The competent department of foreign trade under the State Council may prohibit the offender from engaging in the relevant international service trade business activities within a period of not less than one year and not more than three years from the date of entry into force of the administrative penalty decision or the date of entry into force of the criminal penalty judgment as stipulated in the preceding paragraph.

Article 63 Anyone who violates the provisions of Article 34 of this Law shall be punished in accordance with the provisions of relevant laws and administrative regulations; if a crime is constituted, criminal responsibility shall be investigated according to law.

The department in charge of foreign trade under the State Council may prohibit the offender from engaging in the relevant foreign trade business activities within a period of not less than one year and not more than three years from the date when the administrative penalty decision or the criminal penalty judgment comes into effect as stipulated in the preceding paragraph.

Article 64 Where a person is prohibited from engaging in relevant foreign trade business activities in accordance with the provisions of Articles 61 to 63 of this Law, within the period of prohibition, the Customs shall, in accordance with the prohibition decision made by the competent department of foreign trade under the State Council in accordance with the law, not go through the formalities of customs declaration, inspection and release of the relevant import and export goods of the foreign trade operator, and the foreign exchange administration department or the designated foreign exchange bank shall not handle the formalities for foreign exchange settlement or sale of the relevant foreign exchange.

Article 65 Any staff member of the department responsible for the administration of foreign trade in accordance with this Law who neglects his duty, engages in malpractices for personal gain or abuses his power, if the case constitutes a crime, shall be investigated for criminal responsibility according to law; if the case does not constitute a crime, he shall be given administrative sanctions according to law.

If a staff member of a department responsible for the administration of foreign trade in accordance with this Law takes advantage of his position to solicit property from others, or illegally accepts property from others to seek benefits for others, if the case constitutes a crime, he shall be investigated for criminal responsibility according to law; if the case does not constitute a crime, he shall be given administrative sanctions according to law.

Article 66 If the parties to foreign trade activities are not satisfied with the specific administrative acts made by the department in charge of foreign trade administration in accordance with this Law, they may apply for administrative reconsideration or bring an administrative lawsuit to the people's court in accordance with the law.

Chapter XI Supplementary Provisions

Article 67 Where laws and administrative regulations provide otherwise for the administration of foreign trade related to military products, fissile and fusion materials or materials derived from such materials, and the administration of the import and export of cultural products, such provisions shall prevail.

Article 68 The State shall adopt flexible measures and give preferential treatment and convenience to trade between border areas and border areas of bordering countries, as well as to trade between border residents. The specific measures shall be formulated by the State Council.

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

Article 70 This Law shall enter into force as of July 1, 2004. (WeChat Public Number: Hongde International Freight, Global Easy GO)
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