Regulations on Control of Military Products Export

Issued originally on 22 October 1997;
Revised according to the "Decision of the State Council and the Central Military Commission on Amending the PRC Regulations on Control of Military Products Export" on 15 October 2002

[Chinese Text]

Chapter 1: General Rules

Article 1: The regulations were instituted to strengthen unified management over military products export and protect the normal order of military products export.

Article 2: The export of military products mentioned by the regulations refer to the export of equipment for military purposes, special production facilities, as well as their related materials, technologies, and service.

The aforesaid export of military products must be included in the military products export control list. This military products export control list will be formulated, adjusted, and promulgated by the state department in charge of military products export.

Article 3: The state department in charge of military products export takes charge of the country's military products export and exercises supervision and management over it under the leadership of the State Council and the Central Military Commission.

Article 4: The state exercises a unified management system over the military products export; prohibits any military products export that damages national interests and security; and lawfully protects the normal order of military products export.

Article 5: Military products export should proceed under the following principles:

1. Being useful to the self-defense capability of the recipient country;

2. Being not harmful to the peace, security, and stability of the relevant region or the world;

3. Staying hands off the recipient country's internal affairs.

Article 6: If any provision of the regulations contradicts international conventions to which the PRC is a signatory or in which the PRC participates, the provisions of international conventions apply, with the exception of those provisions on which the PRC has reserved its opinions.

Chapter 2: Military Products Trading Corporations

Article 7: The military products trading corporations mentioned by the regulations refer to enterprises' legal persons who are lawfully entitled to military products export rights and engage in military products export within the prescribed operational scope.

Article 8: Military products export rights will be examined and granted by the state department in charge of military products export. Detailed measures will be worked out by the state department in charge of military products export.

Article 9: Military products export corporations must engage in business operations lawfully and assume sole responsibility for their losses or profits.

Article 10: Military products export corporations should abide by the contracts they have signed, guarantee their product quality, and do a good job in after-sale service.

Article 11: Military products export corporations should observe the rules of the state department in charge of military products export and honestly provide the documents and information related to their military products export. The state department in charge of military products export should keep the commercial secrets of military products export corporations and protect these corporations' legitimate rights and interests.

Article 12: Military products export corporations are entitled to authorize pre-approved military products export and transportation enterprises to handle military products export and transportation and the related business. Detailed measures will be worked out by the state department in charge of military products export.

Chapter 3: Management Over Military Products Export

Article 13: The state exercises a license system over military products export.

Military products export items and contracts should be examined and approved according to the provisions of the regulations. Military products export should proceed under a military products export license.

Article 14: Military products export items are subject to the examination and approval of the state department in charge of military products export or the relevant departments of the State Council and the Central Military Commission.

Article 15: Upon approval for military products export items, a military products export corporation can sign a contract with a foreign firm on such an export. After the contract is signed, it should be submitted to the state department in charge of military products export for examination and approval. The state department in charge of military products export will make a decision within 20 days after receipt of the application. The contract on military products export will come into force only after being approved.

When a military products export corporation submits a contract to the state department in charge of military products export for approval, it should also hand in valid certificates and documents of the recipient country.

Article 16: Important military products export items and contracts should be jointly examined by the state department in charge of military products export and the relevant departments of the State Council and the Central Military Commission and submitted to the State Council and the Central Military Commission for approval.

Article 17: Prior to a military products export, a military products export corporation should produce the relevant military products export approval document to the state department in charge of military products export for application of a military products export license. If the provisions on military products export are met, the state department in charge of military products export will issue a military products export license within 10 days after receipt of the application.

The customs will accept applications upon presentation of military products export licenses, and will release the commodities in accordance with the relevant state regulations.

Article 18: The examination and approval measures on military products export items and contracts as well as the measures on issuing military products export licenses will be instituted by the state department in charge of military products export.

Article 19: A notification on military products export will be jointly issued by the state department in charge of military products export and the relevant department. Upon receipt of this notification, the relevant department and local government should perform their duties in accordance with the relevant state regulations and ensure the safety, promptness, and accuracy of military products export.

Chapter 4: The Order of Military Products Export

Article 20: Any unit or organization that is not entitled to military products export rights are not allowed to engage in military products export.

The state prohibits any individual from engaging in military products export.

Article 21: When engaging in military products export, military products export corporations should observe the relevant laws and administrative regulations and protect the normal order of military products export.

Article 22: When engaging in military products export, military products export corporations are prohibited from the following practices:

1. Damaging state security or social and public interests;

2. Edging out competitors by illegal means;

3. Violating intellectual property rights protected by the PRC law;

4. Forging, falsifying, obtaining by fraud, or transferring military products export approval documents, contract approval documents, licenses, and the valid certificates of the recipient country;

5. Doing business beyond the prescribed operational scope;

6. Other practices that violate law and administrative regulations.

Article 23: The state department in charge of military products export may, if it deems it necessary or at the request of a military products export corporation, take measures against practices that hamper the normal order of military products export.

Chapter 5: Legal Responsibility

Article 24: If a military products export corporation violates Article 11 of the regulations, the state department in charge of military products export will order it to correct the violation within a time limit as a warning. If no correction is made within the time limit, a penalty of 20,000 to 100,000 yuan will be imposed on the corporation with suspension or even revocation of its military products export rights.

Article 25: If a military products export corporation violates Clauses 4 and 5 of Article 22, it will be held criminally accountable according to the legal provision on illegally carrying out business operations, forging, falsifying, selling, and buying state documents, certificates, and seals, or according to other regulations. If its violation is not serious enough for criminal indictment, the state department in charge of military products export will issue a warning, confiscate its illegal possession, impose a penalty twice the amount it has illegally obtained but less than three times the amount it has illegally obtained. If it does not have illegal possession or if the illegal possession is less than 100,000 yuan, a penalty more than 100,000 yuan but less than 300,000 yuan will be imposed with suspension or even revocation of the corporation's military products export rights.

If a military products export corporation violates Clauses 1, 2, and 3 of Article 22, other legal provisions, and administrative regulations, the relevant state department will impose a punishment according to the relevant legal provisions and administrative regulations, and the state department in charge of military products export can also suspend or even revoke the corporation's military products export rights. If it violates criminal law, the relevant legal provisions on crimes will be applied and the corporation will be held criminally accountable.

Article 26: If a military products export corporation violates Article 20 of the regulations, the state department in charge of military products export will ban its illegal activities. If it violates criminal law, it will be held criminally accountable according to the relevant legal provisions on illegal business operations and other regulations. If the violation is not serious enough for criminal indictment, the state department in charge of military products export will issue a warning, confiscate its illegal possession, and impose a penalty twice the amount it has illegally obtained but less than five times the amount it has illegally obtained. If it does not have illegal possession or if the illegal possession is less than 100,000 yuan, a penalty more than 100,000 yuan but less than 500,000 yuan will be imposed.

Article 27: If a military products export corporation does not accept the administrative action taken against it by the state department in charge of military products export, it should first apply for an administrative review. If it still remains unconvinced by the decision of the administrative review, it can file an administrative lawsuit with a people's court.

Article 28: If military products export managerial personnel abuse their power, neglect their duties, or accept bribes and extort money and goods from others by taking advantage of their posts, and if this constitutes a criminal offense, they will be held criminally accountable according to the relevant legal provisions on abuse of power, dereliction of duty, and acceptance of bribes or any other regulations. If this violation is not serious enough for criminal indictment, administrative punishment will be imposed.

Chapter 6: Supplementary Provisions

Article 29: These regulations apply to the export of police equipment.

Article 30: These regulations came into force on 1 January 1998

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.