CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMIT-TING THE REQUEST SUBMITTED BY THE CHINA NATIONAL PETROCHEMICALS CORPORA-TION AND THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR INSTRUC-TIONS ON CHECKING THE ACTI
CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMIT-TING THE REQUEST SUBMITTED BY THE CHINA NATIONAL PETROCHEMICALS CORPORA-TION AND THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR INSTRUC-TIONS ON CHECKING THE ACTI
VITIES BY SOME UNITS IN THE COASTAL AREAS THATTAKE ADVANTA
This English document is coming from the "LAWS AND REGULATIONS OF THE
PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7)
which is compiled by the Brueau of Legislative Affairs of the State
Council of the People's Republic of China, and is published by the China
Legal System Publishing House.
In case of discrepancy, the original version in Chinese shall prevail.
Whole Document
CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMIT-
TING THE REQUEST SUBMITTED BY THE CHINA NATIONAL PETROCHEMICALS CORPORA-
TION AND THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR INSTRUC-
TIONS ON CHECKING THE ACTIVITIES BY SOME UNITS IN THE COASTAL AREAS THAT
TAKE ADVANTAGE OF REFUELLING AT SEA TO ENGAGE IN ILLEGAL TRANSACTION OF
FOREIGN EXCHANGE
(July 17, 1985)
The State Council has approved the Request for Instructions on Checking
the Activities by Some Units in the Coastal Areas That Take Advantage of
Refuelling at Sea to Engage in Illegal Transaction of Foreign Exchange,
which was submitted by the China National Petrochemicals Corporation and
the Ministry of Foreign Economic Relations and Trade and hereby transmits
it to you for you to act upon accordingly.
Petroleum and its products are important means of production and export
materials, for which there shall be a unified policy and strengthened
administration. The activities by some units in the coastal areas of
Guangdong Province and of the Guangxi Zhuang Nationality Autonomous Region
that take advantage of refuelling at sea to engage in illegal transaction
of foreign exchange have not only caused economic losses to the State but
also adversely affected the normal petroleum business operations in the
region encompassing Hong Kong and Macao. Resolute measures shall therefore
be adopted to check these activities. The People's Governments of
Guangdong Province and the Guangxi Zhuang Nationality Autonomous Region
shall organize the units concerned to earnestly investigate and rectify
the situation and seriously study and carry out the four measures put
forward by the China National Petrochemicals Corporation and the Ministry
of Foreign Economic Relations and Trade, which shall in turn send their
personnel to assist the Province and the Region in doing a good job of
this work.
Request of the China National Petrochemicals Corporation and the Ministry
of Foreign Economic Relations and Trade for Instructions on Checking the
Activities by Some Units in the Coastal Areas That Take Advantage of
Refuelling at Sea to Engage in Illegal Transaction of Foreign Exchange
(Excerpts)
Since the beginning of last year, the phenomenon has become extremely
striking in which some units and unlawful merchants take advantage of
refuelling at sea to engage in illegal transaction of foreign exchange. In
order to seek exorbitant profit, some units have, without authorization,
installed offshore filling points (or stations). Among these units, there
are commercial departments, departments for aquatic products, enterprises
jointly run by the special economic zones and the inland areas, offshore
petroleum service companies as well as enterprises run by rural people's
communes and production brigades and teams.
At present, such illegal activities are continuing to spread. Refuelling
at sea has been developed to the extent that not only fishing boats but
also oil tankers are involved and the fuels involved include not only
diesel oil for fishing boats but also kerosene. As a result of the
speculative buying and reselling on the part of unlawful merchants, such
illegal activities have developed to the extent that they are conducted
not only at sea but also on land and the amounts of foreign exchange
involved are ceaselessly increasing. In view of the above-stated
situation, drastic measures must be adopted to resolutely ban such illegal
activities. Towards this end, we propose to adopt the following 4
measures:
1. Petroleum is an important means of production and export material and
it is therefore imperative to strengthen the administration in this
respect. From now on, the units that shall be entitled to handle the
business of refuelling at sea shall be restricted to the sales companies
affiliated to the China National Petrochemicals Corporation or the
associated units of these sales companies and the China Vessel Fuel
Supplying Corporation only (and the fuels shall only be used for
refuelling sea vessels and may not be sold to any other units). No other
units shall have a hand in the handling of this business. It is imperative
for units that are authorized to handle the business to strengthen the
administration in this respect, perfect their management system, stop
loopholes and make a special effort to prevent the occurrence of the
phenomenon in which fuels to be sold at listed prices are sold at
negotiated prices. The State Administration for Industry and Commerce
shall, in accordance with the above provisions, check up on the units
engaged in petroleum business in the offshore areas of Guangdong Province
and of the Guangxi Zhuang Nationality Autonomous Region. Any units that
are found at variance with the above provisions shall be resolutely banned
and units that are in conformity with the above provisions shall go
through the procedures of registration and be issued with business
licences.
2. With respect to the supply of fuels to fishing boats of the fishermen
with dual domicile in the coastal areas of Guangdong Province, fuels that
are supplied at listed prices shall be handled in accordance with the
existing procedures whereas high-price fuels shall, without exception, be
paid in foreign exchange. All the foreign exchange revenue therefrom shall
be handed over to the Bank of China to be changed into Renminbi. With
respect to the supply of fuels to fishing boats of inland fishermen and
vessels for communications and transportation (and, it is imperative to
make a distinction between vessels engaged in inland navigation and those
engaged in ocean transportation), the departments for aquatic products and
the departments for oil supply shall formulate supply procedures so as to
prevent fuels from being smuggled out.
3. The supply prices of fuels to be used for refuelling fishing boats at
sea shall be exclusively administered by the China National Petrochemicals
Corporation. The various offshore filling stations shall in principle fix
their prices with reference to the prevailing market prices in Hong Kong
and Macao to be published daily by the local petroleum company. The China
National Petrochemicals Corporation shall make co-ordinations between the
prevailing oil market prices in Hong Kong and Macao and the negotiated
prices of fuels to be used for refuelling fishing boats at sea. No units
may compete by lowering selling prices.
4. The State Administration for Industry and Commerce shall strengthen the
supervision and inspection of the offshore filling stations and the
Customs shall strengthen its anti smuggling work.
If there is nothing inappropriate with the above proposed measures, it is
hereby requested that they be approved and transmitted to the people's
governments at various levels in the coastal areas and the units concerned
for implementation.
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