1992年对外经贸部第5号令
（Promulgated² by the Ministry³ of Foreign Economic Relations and Trade of the People's Republic of China on December 31， 1992）
颁布日期：19921231 　实施日期：19930101 　颁布单位：对外经贸部

　　Chapter 1 General Rules

　　Article 1 The present Provisions are formulated⁴ for the purpose of implementing⁵ the bilateral⁶ agreements on trade in textile products concluded between the Government of the People's Republic of China and the governments of textile importing countries applying quantitative⁷ restrictions⁹， and keeping effective administration on textile quotas¹¹ to develop the exports of textile products to these countries in an orderly way.

　　Article 2 （1） The Ministry of Foreign Economic Relations and Trade of the People's Republic of China （hereinafter referred to as MOFERT） has the centralized authority of the overall administrations of exports of textile products to the restricting countries. MOFERT is responsible， externally， for negotiations¹² of the bilateral agreements and consultations¹³ with importing countries to settle the problem in the course of implementing the agreements， and internally responsible for the administration， allocation， adjustment and supervision¹⁴ of the utilization¹⁵ of the textile export quotas. It also confers the issuing authorizations to the localities and departments concerned for issuing the export certificates of textile products， and supervises a unified¹⁶ controlling on the certificates and their statistics.

　　（2） The Commissions （Departments） of Foreign Economic Relations and Trade， or the Foreign Trade Bureaus in all the provinces， autonomous¹⁷ regions， municipalities directly under the Central Government and the cities with separate plannings （hereinafter referred to as the local authorities） are the administrative¹⁸ organizations which supervise the exports in their own areas of textile products to the restricting countries. As authorised by MOFERT. their responsibilities include：

　　issuing the export certificates， coordinating¹⁹ the transfer of the textile quotas between enterprises of the same area， administering and supervising the quota¹⁰ utilization of their enterprises， and reporting to MOFERT the statistical²⁰ information of their textile exports to the restricting countries.

　　（3） The General Administration of Chinese Customs and its subordinate Offices throughout the country shall supervise and control all the exports of textile products destined²¹ to the restricting countries. Every shipment shall be verified and released upon the presentation of valid²² export certificates.

　　Categories of textile products （both for quotas and non- quota items） classified by restricting countries are listed in Annex²³ I to the Provisions.

　　Article 3 The restricting countries referred in the Provisions are the countries that have concluded with China the bilateral agreements on trade in textile products. They are the United States of America， the European Economic Community， Canada， Finland， Norway and Austria.

　　Article 4 The textile quota refereed²⁴ in the Provisions means are the quantitative limits for export of textile and finished products made of cotton， wool， man-made fibers²⁵， vegetable fibers other than cotton and silk blends under the bilateral agreements， classifications and units of quota are specified²⁶ by the agreements.

　　Chapter 2 Export License²⁷ System

　　Article 5 Exports of textile products to the restricting countries are subject to controlling systems of textile quotas and export license. Textile quotas are allocated²⁸ by MOFERT in compliance²⁹ with the relevant provisions of the Provisions； Export Licenses³⁰ are issued by the Quota and License Issuing Department under MOFERT and local issuing authorities delegated by MOFERT according to the quantities of MOFERT allocation.

　　Article 6 Only the enterprises， which are entitled by the State to handle the textile export businesses and committed to hand over foreign exchange earnings³¹ to the government， can apply for the quotas that cover the products falling into the scope of their businesses.

　　Article 7 Before actual shipment， enterprises which have been allocated with quotas shall apply to their local issuing authorities for Export License and other certificates， by presenting the original or copy of sales contract， commercial invoice³²， certificates of domestic production or processing， Letter of Credit or cashier's cheque. The original of the Export License is delivered to the importer， who shall， by presenting the original， apply for the Customs clearance³³ of the goods or for import permissions with their authorities. Two copies （Customs supervision） are submitted to Chinese Customs， one is for Customs file and the other shall be returned to the issuing authorities after it is checked and sealed by the Customs.

　　Article 8 All the export certificates shall be filled up with typewriter or computer in strict accordance with “The Explanatory Notes On Certificate Declaration” compiled by MOFERT. Once they are issued， the certificates can not be amended³⁴ by the holder³⁵. The types of the certificates are listed in the Annex II.

　　Article 9 The issuing date in the certificates shall be as close to the actual date of shipment as possible， and the quota year shown in the certificates shall be the calendar year in which the goods are shipped. All the certificates are valid for 3 months after the day of issuing. In normal case， it takes no more than 3 working days to get a certificate issued.

　　Article 10 Certificates are issued with cost charges according to the relevant regulations of the State. All the incomes shall be spent on the related fields of textile quota administration.

　　Chapter 3 Quota Allocation

　　Article 11 Principles of Allocation

　　In order to stabilize³⁶ the market and increase foreign exchange earnings， and for the purpose of more effective controlling， the allocation of quota shall be relatively³⁷ concentrated rather than widely dispersed³⁸. Quota should mainly be allocated to the enterprises which have the government permission to handle textile export business， undertake to submit foreign exchange earnings to the State， and meanwhile have had past performance of exporting the products prior to restriction⁸. The quantities of quota allocated to an enterprise are decided³⁹ by its export performances of the proceeding⁴⁰ year， the export prices， its contributions to China's total exports of textile products and its qualification measured by the provisions of rewards and penalties of the Provisions.

　　Article 12 Allocation Approaches

　　（1） Allocation of Basic Quota Allocation of basic quota is conducted every yea r in two steps， the preliminary allocation in September of the proceeding year and the final allocation in March of the current year.

　　（（1）） The preliminary allocation of basic quota

　　a. Every year in September， quota is distributed preliminarily for the following year. Enterprises that have basic quotas and utilized⁴¹ up to 60% during January to August will be allocated 80% of its basic quota. The formula is：

　　basic quantity x 80% = quantity of preliminary allocation for the following year

　　b. Enterprises that actually used less than 60% of their basic quota will get the preliminary quantity pro¹ rata. The formula is：

　　basic quantity x actual utilized percentage = quantity of preliminary allocation for the following year

　　（（2）） The final allocation of basic quota

　　Under normal trade conditions， enterprises that utilized in the proceeding yea r 90% of their basic quota can obtain 100% of their share for the current year； If the utilization was less than 90% but the unused quantity had been submitted before July 15 of the same year， they would obtain 100% of their basic quota as well. The formula is：

　　basic quota of the proceeding year x 100% = basic quota of the current year

　　If the basic quota has not been used up in two consecutive⁴² years， the unused quantities would be deducted⁴³ for the third year even it was submitted in time.

　　If the submission⁴⁴ was conducted in August and September， 25% of the submitted quantities would be deducted for the following year. The formula is：

　　basic quota of the proceeding year-balance submitted x 25% = basic quota of the current year

　　If submitted in October and November， 50% would be deducted and the formula is：

　　basic quota of the proceeding year-balance submitted x 50% = basic quota of the current year

　　If submitted after 1st of December， whether submitted or not， 100% would be deducted. The formula is：

　　basic quota of the proceeding year-balance submitted or not = basic quota of the current year

　　In case the balance is not submitted in two consecutive years or the quota is wasted considerably⁴⁵， the enterprise will be punished to have its quantities double deducted.

　　（2） Allocation of the annual growth quota

　　（（1）） The annual-growth quota quantities are allocated by MOFERT， in aggregate⁴⁶ amounts to each local authorities and the departments under other Ministries⁴⁷ and Commissions， in accordance with the contributions of their enterprises to China's total export of textile products. The Foreign Trade Commissions of the local governments recommend to MOFERT the allocation of this aggregate quantities. Upon MOFERT's approval， the allocated aggregate quantities shall be designated， together with the final allocation of basic quota， to the enterprise. Quota for the departments of other Ministries and Commissions are allocated directly to them， together with the final allocation， according to their contributions to total textile export.

　　（（2）） Contribution to total textile export refers to the ratio， to the nation's gross textile export value， of the total textile export value of a province， autonomous region， municipality directly under the Central Government， municipality with separate plannings and departments under other Ministries and Commissions.

　　（（3）） The annual growth allocation formula：

　　a.

　　The nation's gross textile export value

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　　annual growth quantities in terms of standardized⁴⁸ quota

　　= average value per standardized unit

　　b.

　　Total textile export value of province x x

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　　quantity of annual growth

　　= average value per standardized unit allocation to province x x

　　（3） Allocation of quota under other flexibilities clauses

　　This quota refers to the quantities available from the flexibilities clauses stipulated⁴⁹ in the bilateral agreements （carry-over and category transfer）， the deducted quantities as applying penalties and the submitted quantities from localities.

　　（（1）） Allocation of carry-over and category transfer quantities：

　　a. Part of them will be distributed by MOFERT in the final allocation to enterprises of outstanding performance according to the provisions in Article 11， Chapter 3 of the Provisions.

　　b. The rests will be allocated according to Article 14， Chapter 4 of the Provisions.

　　（（2）） Penalized⁵⁰ quota shall be first used to compensate⁵¹ the enterprises which have been affected⁵² from fully⁵³ utilizing⁵⁴ their quotas. The surplus， if there be any， will be allocated according to Article 17， Chapter 6 of the Provisions.

　　（（3）） Submitted quota shall be handled in accordance with Article 14， Chapter 4 of the Provisions.

　　（4） Quota Tendering

　　（（1）） For the purpose of encouraging the export of higher quality garments， increasing economic benefit and offering more opportunities of fair competition to qualified⁵⁵ enterprises， certain amount of quotas shall be arranged by MOFERT every year for open tender.

　　（（2）） A Working Committee on Tenders （comprised by representatives from Foreign Trade Administration， MOFERT and China Chamber⁵⁶ of Commerce for Import and Export of Textiles） takes charge of bidding processes.

　　（（3）） Quota tendering shall follow the regulations formulated by MOFERT.

　　Chapter 4 Quota Transfer and Adjustment

　　Article 13 Quota Transfer

　　（1） Export enterprises in same area may consult with each other to transfer their basic quotas. This transfer will become valid only after it has been approved by the local authorities and filed with MOFERT and confirmed with a Notice of Transfer.

　　（2） Export enterprises in different areas may also consult with each other to transfer their basic quotas. This transfer will become valid only after it has been approved by the local authorities of the transferor and filed with MOFERT and confirmed with a Notice of Transfer.

　　（3） Quotas transferred out must be the basic portion of export enterprises and shall not exceed 20% of the relevant categories. Otherwise the over-exceeded quantities will be deducted in the next year. If a category were involved to be transferred out for two consecutive years， quantities will be deducted accordingly in the third year.

　　（4） Quota transfer can be validated⁵⁷ only among the enterprises that have the basic quotas. If quotas are to be transferred to export enterprise of no basic quota but approved by the State to handle textile export business and committed to hand over foreign exchange earnings， this transfer shall be approved by the local authorities of the transferor and filed with MOFERT and confirmed with a Notice of Transfer.

　　（5） Transferees shall not re-transfer out the quotas that are transferred in.

　　Article 14 Quota Adjustment

　　（1） Quota adjustments among the export enterprises of same area can be made possible by the local authorities depending on the quota utilizations of each enterprise. This adjustment will become valid only after it has been approved by the local authorities of the transferor and filed with MOFERT and confirmed with a Notice of Adjustment.

　　Adjustments， to the enterprise which are approved by the State to handle textile export business and committed to hand over foreign exchange earnings but have no quotas shall be filed with and approved by MOFERT.

　　（2） MOFERT will organize nationwide quota adjustments in the second half of the year depending on the utilizations.

　　（（1）） Source of quotas for adjustments are mainly from the unused quotas returned from local authorities， and some of the quantities from the flexibilities clauses （i. e. carryover and category-transfer）。

　　（（2）） Quota adjustment shall be conducted according to the provisions of Article 17， Chapter 6 of the Provisions.

　　（（3）） Quota adjustment shall be made relatively concentrated and openly.

　　（（4）） Applications for adjustment shall be presented through local authorities. MOFERT will not， in normal cases， accept applications from export enterprise.

　　Chapter 5 Quota Calculation and Statistics

　　Article 15 Quotas are calculated in terms of calendar year.

　　Article 16 Statistics of Export Licenses for Textile Products shall be implemented⁵⁸ in accordance with the Rules on Statistics and Monitoring of Export Licenses for Textile Products to Restricted Countries promulgated by MOFERT.

　　Chapter 6 Rewards and Penalties

　　Article 17 The export enterprises that strictly⁵⁹ follow the Provisions and effectively use the quota up to 95% or more， will get certain rewards for one of the following qualifications.

　　（1） Making a remarkable⁶⁰ progress to export high-grade products.

　　（2） Promoting the export of non-quota products.

　　（3） Using more domestic-made fabrics⁶¹ than other enterprises.

　　Article 18 Penalty will be applied⁶² to the following cases：

　　（1） Wastage： The enterprises that do not return back the unused quota in accordance with the provisions of the Provisions will be penalized as stipulated by Article 12， Chapter 3.

　　（2） Over-using： If an enterprise overuses quota， the overused quantities will be deducted as much or in multiplicity； and if issuing authorities over-issue export license， a notice of reprimand will be circulated nationwide and in serious cases， their issuing authorizations will be suspended.

　　（3） Low Prices： If an enterprise exports its products at over low prices， certain amount of its next year's quotas for relevant category will be deducted.

　　（4） Fraudulent Practices： If an enterprise applies for export licenses but does not actually export the goods， double quantities of the next year's quotas will be deducted.

　　（5） Illegal Transshipment： If an enterprise violates the rules of origin made by importing countries by using the certificates of origin or labels of the third country （region） to transship Chinese textile products illegally to the countries which have restrictions on the products under bilateral textile agreements with China either the quantities involved or in multiplicity will be deducted from the quotas of the enterprises or the quotas of the regions where the enterprises are located， or the goods be confiscated⁶⁴ and a fine be imposed or legal penalty be imposed， all depending on the seriousness of the cases.

　　（6） Misses of Licences： If blank export licences are last due to administration and therefore cause the unauthorized occupation of quota， the quantities involved will be double deducted from quota of the parties concerned

　　（7） Falsifications： Anybody who alters the content of Export License without official permission or forges Export License， severer penalties shall be applied， including submission to judicial⁶⁵ authorities for investigating the legal responsibilities.

　　（8） The Chinese Customs can impose a fine on or confiscate⁶³ the goods for export if they are handled in violation⁶⁶ of the Provisions depending on the seriousness of the case.

　　Article 19 The sources of the rewarding quota are the quantities from penalties and the quota offered by the Flexihilities Clauses. But the quantities from penalties shall be used as priority to compensate the enterprises who have been affected from fully utilizing their quota.

　　Article 20 The rewarded quota to the enterprises is not accounted as their additional basic level for the following years

　　Chapter 7 Supplementary⁶⁷ Rules

　　Article 21 All the works on quota administration shall strictly follow the provisions of the Provisions to avoid any irregularities. Administrative officials in both MOFERT and local authorities shall accept supervisions. After investigation⁶⁸ and verification， those who abuse their privileges to seek personal gains and violate the Provisions， disciplinary punishment and even criminal penalty shall be imposed according to the nature of the case.

　　Article 22 Enough specialized⁶⁹ personnel shall be deployed⁷⁰ and kept stable in all local authorities and enterprises.

　　Article 23 Within the framework of the Provisions and taking into account the practical situation in the areas， all the local authorities shall set up and file with MOFERT the detailed⁷¹ rules for implementing the Provisions.

　　Article 24 The Provisions shall enter into force on January 1， 1993， and replace the previous Provisions published on January 1， 1985.

　　Note： In order to let the readers to understand it more easier， there is a little different in the layout between Chinese and English， but there is no change in the content of the Provisions.

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