MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY ANDELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VEN-TURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTEDPRODUCTS
MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY ANDELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VEN-TURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTEDPRODUCTS
Important Notice:
This English document is coming from "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
MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY AND
ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VEN-
TURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED
PRODUCTS
(Approved by the State Council and promulgated by the State Econo-
mic Commission on October 7, 1987)
Article 1
These Measures are formulated in accordance with the pertinent provisions
in Procedures for the Substitution of Products Manufactured by Chinese-
foreign Equity Joint Ventures and Chinese-foreign Contractual Joint
Ventures for Similar Imported Products, approved by the State Council and
promulgated by the State Planning Commission.
Article 2
Enterprises which satisfy the following conditions may make an application
for the inclusion of their products in the Catalogue of the Substitution
of Home-made Machinery and Electrical Appliances for Similar Imported
Products (hereinafter referred to as the "Catalogue"):
(1) Chinese-foreign equity joint ventures and Chinese-foreign contractual
joint ventures (hereinafter referred to as "the enterprises"), which are
capable of providing advanced technology that satisfies domestic needs,
and are engaged in the development of new products, thereby realizing the
upgrading of products and the replacement of old products with new ones,
but which are at present confronted with the temporary difficulties of an
imbalance in foreign exchange and are badly in need of support;
(2) the machinery and electrical appliances manufactured by the
enterprises are the same in performance and quality as similar products
produced in foreign countries, they can satisfy the needs of domestic
users, and their prices (the prices after taxation) are no higher than the
prices of similar imported products produced abroad;
(3) the machinery and electrical appliances manufactured by the
enterprises are in the categories that the domestic users want to import;
(4) the enterprises execute their obligations to export products in
accordance with the approved contracts.
Article 3
Chinese-foreign equity joint ventures and Chinese-foreign contractual
joint ventures, which apply for the substitution of their products for
similar imported foreign goods, shall prove by an ample demonstration and
appraise the feasibility of substituting their products for similar
imported ones at the time when they submit their feasibility studies
report for examination and approval.
Article 4
After the enterprises have gone into production, if their products are in
conformity with the stipulations of Article 2 mentioned above and they
request to have their products included in the State catalogue of the
substitution of home-made products for similar imported ones, the
enterprises shall make an application to the department concerned, and
submit duplicates of the application separately to the State Economic
Commission, the Ministry of Foreign Economic Relations and Trade, and the
local economic commission. The application shall be accompanied with an
application form for the substitution of home-made machinery and
electrical appliances for similar imported products, a certification
document testifying to the quality of the products, and report on market
demand projection for the said products; and the application shall be
examined and verified by the department concerned which shall, after
affixing its comments and seal to the application, transmit the
application to the State Economic Commission and the State Administration
of Foreign Exchange Control for examination and approval. Generally, the
period of time for the examination and approval shall not exceed two
months, and the approved items shall be promulgated by the State Economic
Commission for execution.
Article 5
The users who need the products listed in the Catalogue may place an order
directly with the enterprises, or the China Bidding Center for Machinery
and Electrical Equipment (or other bidding agencies authorized by the
State Economic Commission) shall, in accordance with the pertinent
provisions promulgated by the State, organize bidding, thus providing
advice to users for purchasing home-made products to substitute for
similar imported ones.
Article 6
Enterprises which sell machinery and electrical appliances listed in the
State catalogue of the substitution of home-made products for similar
imported goods may, with the approval of the administration of foreign
exchange control, collect part of the payment for goods in foreign
exchange, and the amount shall decrease progressively in accordance with
the rate of progress for the replacement of imported products with home-
made ones, specified in the contract or feasibility studies report.
Article 7
The bulk parts, spare parts, components, fittings and raw materials, which
the enterprises need for the production of machinery and electrical
appliances listed in the State catalogue of the substitution of home-made
products for similar imported goods, may be considered as bonded goods and
be placed under the surveillance of the Customs. Where the users enjoy
the preferential treatment of reduction of or exemption from duties when
they import the aforesaid machinery and electrical appliances directly
from abroad, the enterprises shall enjoy the same preferential treatment
of reduction of or exemption from duties when they import the said raw
materials, spare parts and components to produce similar machinery and
electrical appliances and sell them to the said users.
Article 8
The right to interpret these Measures shall reside in the State Economic
Commission.
Article 9
These Measures shall go into effect as of the date of promulgation.
Appendix
The catalogues of the first lot of machinery and electrical appliances
used in substituting for similar imported products and promulgated
simultaneously by the State Economic Commission: the first is SPECTRUM -
the control system of the centralized/decentralized type (including field
input/output installations, each station 1024 BIT data collecting set,
sequence control, programming control set, CRT operating station,
industrial controller), the enterprise that produces these products is the
Shanghai Fawkes-Polo Co. Ltd.; the second is MICONIC - B elevator (rated
speed 1.6 M/S, carrying capacity 1,000 KG), the enterprise that produces
this product is the Shanghai Elevators Factory of the China Schindler
Elevators Company.
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