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Regulations on Export Control of Military Items
22 October 1997
(In effect 1 January 1998)
(Translated from Chinese)
(Unofficial EANP translation)
I. General Rules
ARTICLE 1
The Regulations are formulated to strengthen centralized management of military exports and maintain normal military export order.
ARTICLE 2
The military exports referred to in the Regulations are commercial exports of military-purpose equipment, specialized production facilities and other materials, technologies and related services.
ARTICLE 3
Under the leadership of the State Council and the Central Military Commission, the State Administrative Committee on Military Products Trade (SACMPT) of the People's Republic of China is responsible for military export activities nationwide.
The State Bureau of Military Products Trade of the People's Republic of China, the executive body of the SACMPT, implements the supervision and management of nationwide military exports.
ARTICLE 4
The State enforces a centralized military export management mechanism to prohibit any military export activities that damage the national interests and security and to maintain normal military export order in accordance with the law.
ARTICLE 5
All military exports should be consistent with the following principles:
(2) They should not jeopardize the peace, security and stability in the relevant regions and around the world;
(3) They should not interfere in the internal affairs of the recipient country.
Provisions of international treaties which the People's Republic of China has concluded or joined shall prevail in case they are different from the Regulations. However, clauses about which the People's Republic of China has made statements of reservation are excluded.
II. Military Trading Companies
ARTICLE 7
Military trading companies referred to in the Regulations are corporate legal entities that have legally obtained military export authorization to engage in military export activities within the approved business scope.
ARTICLE 8
Military export authorization is reviewed and granted by the SACMPT. Specific application procedures will be stipulated by the SACMPT.
ARTICLE 9
Military trading companies will operate independently in accordance with the law and be responsible for their own profits and losses.
ARTICLE 10
Military trading companies shall abide by contracts, guarantee product quality and improve after-sales services.
ARTICLE 11
Military trading companies, as required by the SACMPT regulations, shall faithfully submit documents and files related to their military export activities to the relevant departments. These departments shall maintain commercial confidentiality and safeguard the legitimate rights and interests of the military trading companies.
ARTICLE 12
Military trading companies can entrust authorized military export transportation agents to handle export transportation and other related businesses. The SACMPT will draw up the specifics in this aspect.
III. Military Export Management
ARTICLE 13
The State manages military exports through a licensing system.
Military exports and contracts shall be filed for review and approval in accordance with the Regulations. Military exports must be accompanied by military export licenses.
ARTICLE 14
Military exports are reviewed and approved by the State Bureau of Military Products Trade or by the State Bureau of Military Products Trade in joint consultation with the relevant departments in the State Council and the Central Military Commission.
ARTICLE 15
Once the military export is approved, the military trading company can sign military export contracts with overseas buyers. The signed military export contract shall be submitted to the State Bureau of Military Products Trade for review and approval. The State Bureau of Military Products Trade shall make an approval or decline decision within fifteen days upon receipt of the application. Military export contracts are valid only upon such approval.
Military trading companies shall append with the military export contract approval application the valid certification documents from recipient countries when filing with the State Bureau of Military Products Trade.
ARTICLE 16
Major military exports and their related contracts shall be reviewed by the SACMPT and submitted to the State Council and the Central Military Commission for approval.
ARTICLE 17
Military trading companies shall apply to obtain the military export license with the approval documents for the export contracts prior to engaging in military exports. The State Bureau of Military Products Trade shall issue military export licenses within five days upon receipt of the application to those requests that conform to the military export contract specifications.
The Customs will accept declarations upon presentation of the license to examine and allow passage of the items in accordance with the relevant State regulations.
ARTICLE 18
The SACMPT will formulate the procedures for reviewing and approving military exports and contracts and for issuing military export licenses.
ARTICLE 19
Military export notification will be issued jointly by the State Bureau of Military Products Trade with other relevant departments. Upon receipt of such notification, the departments and local people's governments concerned shall seriously fulfill their duties in accordance with the relevant State provisions to ensure the safety, promptness and accuracy of military exports.
IV. Military Export Order
ARTICLE 20
No units or organizations shall engage in military export activities without obtaining authorization in advance.
The State prohibits individuals in military export operations.
ARTICLE 21
Military trading companies shall abide by the law and provisions of administrative regulations in their military export activities to ensure the normal order of military exports.
ARTICLE 22
Military trading companies shall not exhibit any of the following behaviors in their military export activities:
(2) Supplant competitors with unfair competitive means;
(3) Infringe upon intellectual rights protected by the laws of the People's Republic of China;
(4) Forge, alter, fraudulently obtain or transfer military export approval documents, contract approval documents, licenses, valid certificates from recipient countries, and other documents;
(5) Exceed the defined and approved scope of activities;
(6) Other activities that violate the laws and administrative regulations.
The State Bureau of Military Products Trade, on its own initiative or upon requests from other military trading companies, can take actions against conducts that interfere with the normal military export order.
V. Legal Responsibilities
ARTICLE 24
The State Bureau of Military Products Trade will give warning to and demand within a definite time corrective measures from the military trading companies that violate Article 11 of the Regulations. If no correction is made within the prescribed period of time, the State Bureau of Military Products Trade will request the SACMPT to revoke the military export authorizations granted to such military trading companies.
ARTICLE 25
The military trading companies that violate Article 21 and Article 22 of the Regulations will be penalized by the relevant State authorities according to the laws and administrative regulations. The State Bureau of Military Products Trade can request the SACMPT to revoke the military export authorizations granted to such military trading companies.
ARTICLE 26
Units that violate Article 20 of the Regulations will have their illegal activities closed down by the State Bureau of Military Products Trade and will be penalized by the State authorities concerned according to the relevant laws and administrative regulations.
ARTICLE 27
Any violations to the Regulations that constitute criminal offenses will be prosecuted according to law.
ARTICLE 28
Military trading companies that plead not guilty to the penalization that revokes their export authorizations can apply for review to the SACMPT within fifteen days of receipt of the penalization notification. The SACMPT shall make a review decision within fifteen days of receipt of the application. The review decision shall be deemed final.
ARTICLE 29
Staff working in national military export administration and management posts who neglect duties, perform fraudulent practices for selfish ends, abuse power, or accept and demand bribes shall be prosecuted according to law if criminal offenses have been committed. Disciplinary penalties will be given to those whose conducts do not constitute criminal offenses.
VI. Appendix
ARTICLE 30
The export of police-purpose equipment is governed by the Regulations.
ARTICLE 31
The Regulations become effective on January 1, 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.
