PROVISIONS OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THEIMPORT AND EXPORT OF TEXTILES
PROVISIONS OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THEIMPORT AND EXPORT OF TEXTILES
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
PROVISIONS OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE
IMPORT AND EXPORT OF TEXTILES
(Promulgated on January 8, 1985)
The following provisions are formulated, in accordance with the spirit of
the economic restructuring of the country, in respect of several issues
concerning the import and export of textiles.
1. In the exportation of textiles, it is advisable to combine industry
with trade; the combination may take various forms, of which the "Qingdao
Textile Unico. Ltd" is one; and enterprises may freely adopt other
combinative forms. From now on, case concerning the establishment of
various forms of textile industry and trade combination companies and
other combination complexes or production enterprises having direct links
with foreign businesses in the open coastal cities and municipalities
under separate planning shall all be handled and examined jointly by the
departments of foreign economic relations and trade and the departments of
textile industry in the cities or municipalities where the companies or
enterprises are located; the cases shall, then, be submitted to the
municipal people's government for examination and approval; and the cases
shall be further submitted to the people's government of the province or
autonomous region and to the Ministry of Foreign Economic Relations and
Trade and the Ministry of Textile Industry for record.
2. Issues concerning the export planning for textiles, foreign exchange,
earnings from exports, and the distribution of export quotas and the
issuance of import and export licences:
(1) it is necessary to implement the principle of taking into
consideration the historical conditions as well as the importance of
encouraging the advanced, facilitating competition, selecting quality
products for export, and promoting combination; a specific distribution
plan shall be worked out jointly by the Ministry of Foreign Economic
Relations and Trade and the Ministry of Textile Industry, and shall be
transmitted directly by the Ministry of Foreign Economic Relations and
Trade to the people's governments of various provinces (and/or autonomous
regions, municipalities directly under the Central Government),
municipalities under separate planning, and the national corporations
undertaking export tasks; the distribution plan shall no longer, be
transmitted according to the subordinating relationship by the National
Textile Import and Export Corporation.
(2) the departments of foreign economic relations and trade in various
regions shall, jointly with the departments of textile industry, work out
the local specific distribution plan in accordance with the aforesaid
principle, and then submit it to the people's government at the same level
for approval, which shall then be transmitted through the office (or
commission, bureau) of foreign economic relations and trade to various
branch offices of the textile import and export corporations, the industry
and trade combination companies, textile industry companies that undertake
export tasks assigned by the state, and combination complexes and
production enterprises vested with the external operating rights.
(3) in the course of implementation, the department of foreign economic
relations and trade shall strengthen administration. The racketeering in
export quotas and import and export licences shall be strictly banned; and
the offender shall be dealt with seriously.
(4) trade conducted between countries at the state level in accordance
with relevant agreements shall be carried out by the national import and
export corporations by organizing the relevant branch offices of foreign
trade corporations, industry and trade combination companies, and
production enterprises in holding business negotiations with foreign
businesses and concluding relevant transactions.
3. The key to expanding the export of textiles and bettering the quality
of products lies in bringing into play the initiative of production
enterprises and in actually devolving the power to them, so that the
production enterprises may sharpen their sensitivity towards and clarity
about the international market, thereby heightening their competitiveness.
At the same time, it is essential to bring into full play the role of
various branch offices of foreign trade corporations, of various companies
situated at ports, and of various industry and trade combination
companies. From now on, the National Textile Import and Export Corporation
shall devote its attention to doing a better job in providing information
and consultancy services; it may also handle directly a portion of the
import and export business operations.
The industry and trade combination companies and production enterprises,
which have obtained, with approval, the right to operate in foreign trade,
shall enjoy the same treatment as the textile import and export
corporations in such aspects as export quota, import and export licence,
and the right to handle import and export business; and shall also have
the right to export all commodities within the scope of business
operations of their own companies (including the right to export the two
kinds of yarns and the two kinds of cloth, but they must carry on the
unified provisions formulated by the State Council), and the right to
import various kinds of raw materials required by their companies in
production (not including such kinds of raw materials as terylene and poly
acrylonitrile fibre; however, in order to develop new varieties of
commodities, to guarantee the quality of products, and to meet the urgent
needs of production, they may, with the approval of the Ministry of
Textile Industry and the Ministry of Foreign Economic Relations and Trade,
import a small quantity of such raw materials), as well as dyestuffs,
chemical and auxiliary materials, and the right to act as an agent for the
exportation of the commodities within their scope of business operations.
Those companies and enterprises with the necessary qualifications may,
after obtaining the approval in accordance with the provisions of the
state, accredit representatives abroad or establish business offices there
to conduct studies and investigations and to promote the sale of their
products.
With respect to textiles under the scheme of agency in foreign trade, the
export quota and the export licence shall be issued, along with the
production task, to the production enterprises. The production enterprises
shall have the right to select their agents by themselves and may take
part in business negotiations with foreign firms. The agents shall be
responsible for concluding contract, and, at the same time, offer
satisfactory services and consultancy, and collect service charges
according to the stipulations. From now on, with respect to those industry
and trade combination companies and production enterprises that are vested
with the right to operate in foreign trade, the state will mainly evaluate
their fulfillment of the task of foreign exchange earnings from exports,
and make statistics concerning the level of foreign exchange earnings and
the costs in terms of foreign exchange, in order to select from among them
the more successful companies and enterprises for future arrangement.
4. With a view to changing the existing financial structure, that is
"everybody eating from the common pot", under which the state takes the
sole responsibility for gains and losses, various types of industry and
trade combination companies and enterprises that manufacture textile goods
for export shall follow the principle of settling the accounts for
imported raw materials in accordance with the international price level,
and pay the Customs duties and the product tax according to the
regulations when they are imported; then, after the products are exported,
the portion of import Customs duties and the product tax already paid
shall be refunded annually on the basis of the actual quantity of raw
materials used in the exported products, and, at the same time, the
product tax or the value added tax in the process of production shall also
be refunded; by so doing they shall take the sole responsibility for gains
and losses themselves.
5. After liberalizing the business operations in the export of textiles,
the Ministry of Foreign Economic Relations and Trade shall play the role
of overall administration of foreign economic relations and trade of the
country: strengthening the administration at home in accordance with its
competence and duty prescribed by the State Council, setting ceiling
prices for the imported raw materials used in the production of textiles
and floor prices for the export textiles, and providing promptly
information concerning the international market. All the textile import
and export corporations, industry and trade combination companies,
combination complexes and production enterprises vested with the external
operating rights, shall conduct their business operations in accordance
with the unified policies governing China's foreign economic relations and
trade.
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