I. Chemicals that can be used as chemical weapons.

II. Chemicals that can be used as precursors in the production of chemical weapons.

III. Chemicals that can be used as main raw materials in the production of chemical weapons.

IV. Discrete organic chemicals other than explosives and pure hydrocarbon compounds.

A list of the MCCs in the above categories shall be prepared and submitted by the chemical industry authorities under the State Council and published upon the State Council's approval.

ARTICLE 4

The chemical industry authorities under the State Council shall be responsible for the management of the MCCs nationwide. The local chemical industry authorities under the provincial government, autonomous region government or centrally-administered municipal government (the PARM government) are responsible for the management of the MCCs within their respective administrative regions.

ARTICLE 5

In accordance with the Regulations and other relevant State regulations, work units that produce, sell or use MCCs shall report to the chemical industry authorities under the State Council or the local chemical industry authorities under the PARM government the relevant information, data and the objective of use in the production, sales or use, and shall be subject to verification and supervision.

ARTICLE 6

The State exercises strict control over the production of Category I MCCs.

The production of Category I MCCs for the purpose of scientific research, medical treatment, pharmaceutical production or defensive protection shall be approved by the chemical industry authorities under the State Council and produced at small-sized facilities designated by such authorities.

It is strictly forbidden to produce Category I MCCs at facilities not designated by the chemical industry authorities under the State Council.

ARTICLE 7

The State uses a special license system for the production of Category II MCCs, Category III MCCs and the discrete organic chemicals with phosphorus, sulfur and fluorine contents in Category IV MCCs. No work units or individuals are permitted to engage in such production without obtaining the special license. The special licensing procedures shall be drawn up by the chemical industry authorities under the State Council.

ARTICLE 8

An application for building, expanding or renovating facilities used to produce Category II, Category III MCCs and the discrete organic chemicals with phosphorus, sulfur and fluorine contents in Category IV MCCs must be filed with the local chemical industry authorities under the PARM government. The local authorities shall evaluate, comment and submit the application to the chemical industry authorities under the State Council for approval. The construction cannot begin before the approval is obtained.

Upon completion, the local chemical industry authorities under the PARM government shall examine the project for acceptance compliance and apply for approval from the chemical industry authorities under the State Council. Operations cannot begin before the approval is obtained.

A notice shall be filed with the local chemical industry authorities under the PARM government, prior to construction, any project to build, expand or renovate facilities used in producing discrete organic chemicals in Category IV MCCs that do not have phosphorus, sulfur and fluorine contents.

ARTICLE 9

The MCCs shall be stored in specialized chemical industry warehouses and managed by designated personnel. The storage conditions of MCCs shall comply with the relevant State regulations.

ARTICLE 10

Work units with MCCs in storage shall set up strict check-in/check-out and registration systems. In the case of loss or theft, the local public security agencies and the local chemical industry authorities under the PARM government shall be notified immediately. The local chemical industry authorities under the PARM government shall cooperate with the public security agencies in the investigation.

ARTICLE 11

The deteriorated or expired MCCs shall be promptly disposed of. The disposal proposal shall be submitted to the local chemical industry authorities under the PARM government for approval before implementation.

ARTICLE 12

To use Category I MCCs for the purpose of scientific research, medical treatment, pharmaceutical production or defensive protection, an application must be submitted to the chemical industry authorities under the State Council for review and approval. A contract with the producer designated by the chemical industry authorities under the State Council can only be signed on the basis of the approval document from the chemical industry authorities under the State Council. A copy of the contract shall be deposited with the local chemical industry authorities under the PARM government for file.

ARTICLE 13

To use Category II MCCs, an application shall be submitted to the local chemical industry authorities under the PARM government for review and approval. A contract with the sales agency designated by the chemical industry authorities under the State Council can only be signed on the basis of the approval document from the local chemical industry authorities under the PARM government. A copy of the contract shall be deposited with the local chemical industry authorities under the PARM government for file.

ARTICLE 14

The chemical industry authorities under the State Council in conjunction with the foreign economic and trade authorities under the State Council shall designate work units (the designated units) to engage in the import and export of Category I MCCs, Category II MCCs, Category III MCCs, and the production technology and/or specialized equipment related to Category II and III MCCs.

Work units that need to import or export Category I MCCs, Category II MCCs , Category III MCCs, and the related production technology and/or specialized equipment related to Category II and III MCCs must entrust such designated units for the import and export. No other work units or individuals are permitted to handle such import and export.

ARTICLE 15

The State exercises strict control over the import and export of Category I MCCs. Category I MCCs may be imported only for scientific research, medical treatment, pharmaceutical production or defensive protection purposes.

A designated unit which has been entrusted to import Category I MCCs shall submit to the chemical industry authorities under the State Council an application attached with an explanation and certification of the product end-use. The chemical industry authorities under the State Council shall evaluate the application, provide input and submit it to the State Council for review and approval. Application by the designated unit to the foreign economic and trade authorities under the State Council for the import license shall made on the basis of the approval document from the State Council.

ARTICLE 16

A designated unit which has been entrusted to import Category II MCCs, Category III MCCs, and the production technology and/or specialized equipment related to Category II and III MCCs shall submit to the chemical industry authorities under the State Council an application attached with an explanation and certification of the product, technology and/or equipment end-use. Application by the designated unit to the foreign economic and trade authorities under the State Council for the import license shall made on the basis of the approval document from the chemical industry authorities under the State Council.

ARTICLE 17

A designated unit which has been entrusted to export Category I MCCs shall submit to the chemical industry authorities under the State Council an application attached with the statement of pledge issued by the recipient country government or entrusted governmental agencies that the imported chemicals shall only be used for scientific research, medical treatment, pharmaceutical production or defensive protection purposes and shall not be re-transferred to a third country. The chemical industry authorities under the State Council shall evaluate the application, provide input and submit it to the State Council for review and approval. Application by the designated unit to the foreign economic and trade authorities under the State Council for the export license shall made on the basis of the approval document from the State Council.

ARTICLE 18

A designated unit which has been entrusted to export Category II MCCs, Category III MCCs and the production technology and/or specialized equipment related to Category II and III MCCs shall submit to the chemical industry authorities under the State Council an application attached with the statement of pledge issued by the recipient country government or entrusted governmental agencies that the imported chemicals, production technology and/or specialized equipment shall not be used to produce chemical weapons and shall not be re-transferred to a third country. Application by the designated unit to the foreign economic and trade authorities under the State Council for the export license shall made on the basis of the approval document from the chemical industry authorities under State Council.

ARTICLE 19

The use of MCCs shall correspond with the purpose of use stated on the application declaration. Any change in purpose of use must be approved by the original reviewing and approving agencies.

ARTICLE 20

In accordance with the relevant State regulations, the use of Category I and Category II MCCs shall be periodically reported to the local chemical industry authorities under the PARM government. The report shall contain information on the quantity of the MCCs consumed and the quantity of the end-products produced with such MCCs.

ARTICLE 21

If a work unit is found to be producing MCCs in violation of the Regulations, the local chemical industry authorities under the PARM government shall demand corrective actions within a definite timeframe. Such work units may be subject to a penalty fine not exceeding 200,000 RMB yuan if no correction is made within the timeframe. Serious violators shall be ordered to cease production and start rectification by the local PARM government upon request from the local chemical industry authorities under the PARM government.

ARTICLE 22

If a work unit is found to be using MCCs in violation to the Regulations, the local chemical industry authorities under the PARM government shall demand corrective actions within a definite timeframe. Such work units shall be subject to a penalty fine not exceeding 50,000 RMB yuan if no correction is made within the timeframe.

ARTICLE 23

If a work unit is found to be selling MCCs in violation of the Regulations, the local chemical industry authorities under the PARM government shall confiscate the MCCs and the illegal revenues derived from such sales. Such work units may also be subject to a penalty fine that may range above one times but below two times of the sales amount.

ARTICLE 24

Any work unit found to have violated the Regulations by holding back and refusing to report the relevant MCCs information and data or impeding and obstructing the local chemical industry authorities under the PARM government to carry out the examination and supervision duties in accordance with the Regulations shall be subject to a penalty fine not exceeding 50,000 RMB yuan by the local chemical industry authorities under the PARM government

ARTICLE 25

Any violation of the Regulations that constitutes a breach of the maintenance of public order shall be subject to penalties outlined in the relevant provisions of the People's Republic of China Penalty Regulations on the Maintenance of Public Order. Any conduct that constitutes a crime shall be investigated for criminal responsibility.

ARTICLE 26

Work units that had produced, sold or used MCCs prior to the implementation of the Regulations shall go through the relevant procedures in accordance with the relevant provisions in the Regulations.

ARTICLE 27

The Regulations shall be effective on the day of issuance.

This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2007 by MIIS.