China: Implemented Revised Foreign Trade Law

On 1 July 2004, the revised Foreign Trade Law of the People's Republic of China came into effect. The Law requires exporters of all goods and technology to register with the department of the State Council in charge of foreign trade, the Ministry of Commerce (MOFCOM). The state allows free import and export of goods and technology, but it may restrict or prohibit the import or export of goods and technologies for various reasons, including national security, public interests, protection of health or the environment, or to protect natural resources. The competent foreign trade department of the State Council is responsible for formulating, publishing and adjusting the catalog of goods and technologies restricted or prohibited from import and export. The Law also disciplines anticompetitive behaviour, allows for the conduction of foreign trade investigations, and measures in case of a disproportionate increase in imports damaging domestic competitors. Individuals who import or export restricted goods without authorisation are subject to confiscation of the illegally obtained income and a fine between one and five times the illegally obtained income; if there is no illegally obtained income or if it is less than CNY 10'000, a fine between CNY 10'000 and CNY 50'000 shall be imposed. Transgressors may also face criminal charges and temporary trading restrictions. Overall, the Law is meant to support foreign and international trade.