This English document is coming from "LAWS AND REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7)

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 INTERIM MEASURES FOR THE ADMINISTRATION OF PETTY TRADE IN THE BORDER AREAS (Approved by the State Council on December 15, 1984 and promul- gated by the Ministry of Foreign Economic Relations and Trade on December 20, 1984) 1. These Measures are formulated to invigorate economy in the border areas, to satisfy to a larger extent the needs of the inhabitants in the border areas in their production and life, to promote the contacts and communication between the border inhabitants of two neighbouring countries, and to develop their good neighbourly relations.

2. The petty trade in the border areas, as mentioned in these Measures, refers to the petty trade carried out in the border towns of China, between the departments or enterprises designated by the people's governments of provinces or autonomous regions and the border towns on the other side, as well as to the mutual market trade between the border inhabitants of the two neighbouring countries.

3. The petty trade in the border areas shall be carried out at the ports and trading points in the border areas as agreed on by the two sides through consultation.

4. The petty trade in the border areas shall be subject to the administration by the relevant people's governments of the provinces and autonomous regions. Matters involving the opening of ports, external relations, security, frontier defence, the Customs, banking, commodity inspection, animal and plant quarantine, and administration for industry and commerce shall be handled by relevant competent departments under the State Council on the proposal of the people's governments of the provinces or autonomous regions.

5. The petty trade in the border areas shall be conducted in accordance with the following principles: finding the sources of goods and the markets by themselves; holding business talks by sellers and buyers of their own accord; acquiring balance of accounts in their own ways, and assuming sole responsibility for their profits and losses.

6. With respect to the petty trade carried out between the border towns, the Customs duty, product tax and value added tax shall, in accordance with the tax regulations, be levied.

7. The mutual market trade between the border inhabitants shall be carried out within the scope of a definite quota. The specific quota shall be prescribed by the people's governments of the provinces or autonomous regions concerned, and submitted to the Ministry of Foreign Economic Relations and Trade and the General Administration of Customs for the record.

8. The commodities involved in the mutual market trade between the border inhabitants may be exempted from the Customs duty, product tax and value added tax if they do not exceed the quota.

9. All contraband goods are forbidden to be imported or exported.

10. With respect to the import and export commodities subject to the licences, the Ministry of Foreign Economic Relations and Trade shall authorize the department (commission, bureau) of foreign economic relations and trade under the province or autonomous region concerned to handle the matter of examination and approval.

11. The department (commission, bureau) of foreign economic relations and trade under the provinces or autonomous regions shall be responsible for submitting the reports on the annual operational conditions and statistics of the petty trade in the border areas to the Ministry of Foreign Economic Relations and Trade for the record.

12. The petty trade in the border areas shall strictly comply with the laws and administrative regulations of the State.

The people's governments of various provinces and autonomous regions shall, in the light of the local conditions, formulate practicable specific measures to facilitate the development of the petty trade in the border areas.