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	CANNED BUTTON MUSHROOMS EXPORT REGULATION

	(No.132 [1997] of the State Administration for Import and Export Commodities Inspection and the Ministry of Foreign Trade and Economic Cooperation, April 7, 1997: canned button mushrooms are our country's major export and for the sake of our country interest and the development of the industry, "Canned Button Mushrooms Export Regulation" was adopted, which shall come into force as of the day of promulgation)


SUBJECT : EXPORT REGULATION; CANNED BUTTON MUSHROOMS
ISSUING DEPARTMENT : MINISTRY OF FOREIGN TRADE & ECONOMIC RELATIONS (DISSOLVED), STATE ADMINISTRATION FOR IMPORT AND EXPORT COMMODITIES INSPECTION
ISSUE DATE : 04/07/1997
IMPLEMENT DATE : 04/07/1997
LENGTH : 1,321 words
TEXT :

Article 1. This Rule is formulated hereby with the aim of improving the business order of export of canned and salted mushrooms, bettering the quality of export products, and safeguarding the general interests of the country.

Article 2. The commodities covered by This Rule is canned and salted mushrooms for export, with their serial numbers being 20031010.01 and
07119033 respectively.

Article 3. Distribution of export quotas (excluding exports to the
European Union)

(1) Distribution and readjustment of quotas shall be carried out according to the principle of fairness, justice, and competitiveness;

(2) Business operations in scale and with good economic returns shall be encouraged, and quotas shall be distributed according to the actual use of quotas by local foreign trade companies and those directly affiliated to various ministries and commissions (hereinafter referred to the various units) as well as the prices of their exports and the quality of their export commodities;

(3) Distribution of quotas shall be carried out according to the following principle:

1. On the basis of determining the total quotas for the following year, the base amount of quotas of the various units shall be calculated according to their proportions against the total amount of quotas in the current year;

2. The base amount of quotas of the units that use their quotas at a rate below the national average between January and September of the current year shall be 10% to 50% (as shown in Customs statistics, the same below). After confirmation, the deduction ratio shall be applied to all units which suffer deduction. Deducted quota shall be rewarded to the units which have higher quota utilization than the national quota by proportion.

If the rates of quota use by the various units are all above 70% (including 70%), or if the national average is above 80%(including 80%), there shall be no rewards or punishments;

3. The base amount of quotas of the units whose export prices determined according to clauses on FOB prices are 5-10 % below the national average sold at the same market from January to September of the current year (as shown in statistics of export licenses, the same below) shall be cut by 5-10 % (with the specific figures to be fixed during distribution of quotas according to the overall situation of the export prices of the various units). The fixed rate of cut shall be applied to all units subject to quota cuts. The cut quotas shall be redistributed as a reward to units that export at prices the same as or above the national average and those whose export commodities are name-brand and of high quality; and

4. If the total amount of quotas need be readjusted or increased, the increased amount shall be distributed according to the rules in the preceding clause to units that boast big rates of quota use, that export at high prices, and whose export commodities are name-brand and of high quality;

(4) Re-distribution of quotas by the various units shall also be carried out according to stipulations in Clause 3 of this Rule. The amount of quotas distributed to each export enterprise shall not be smaller than 500 tons at minimum. Local foreign trade companies and those directly affiliated to various ministries and commissions whose amount of quotas exceeds 5,000 tons shall distribute these quotas to six enterprises at maximum. Those whose amount of quotas is below 5,000 tons (including 5,000 tons) shall distribute these quotas to three enterprises at maximum. The results of distribution of quotas by the various units shall be reported timely to (the Administration of Foreign Trade) of the Ministry of Foreign Trade and Economic Cooperation and the China Chamber of Foodstuffs, Native Produce and Animal Products Importers and Exporters (hereinafter referred to the Chamber);

(5) The Ministry of Foreign Trade and Economic Cooperation shall publish in International Business Daily name lists of the enterprises that have won re- distributed quotas.

Article 4. Management of export licenses is the following:

(1) Export licenses for canned and salted mushrooms shall be issued by departments authorized by the Ministry of Foreign Trade and Economic Cooperation;

(2) The departments shall issue export licenses in strict accordance with the duplicates of export contracts examined and signed by the Chamber;

(3) Export enterprises applying for export licenses shall declare the sanitation registration code of the enterprises producing export commodities, the batch numbers of production, and the trade marks (or fixed trade marks if the trade marks are provided by foreign businessmen). The departments issuing licenses shall write down these details in the Note columns of export licenses.

Article 5. Quality control of export commodities is the following:

(1) Canned and salted mushrooms shall be processed and produced only in factories or workplaces that have gone through sanitation registration with commodity inspection departments;

(2) Factories using salted mushrooms to produce canned mushrooms shall win approval from the China Commodity Inspection Bureau and organize production according to prescribed production technology and quantity.

(3) Canned mushrooms and salted mushrooms shall be inspected by commodity inspection departments on the spot before they are exported. Vouchers of inspections. To be written in these vouchers shall be the serial numbers of sanitation registration of the factories or workplaces producing canned or salted mushrooms, specifications and quantities of the canned or salted mushrooms, and destination tags. In case of commodities exported in other export ports, the commodity inspection departments in these ports shall carry out examination, exchange of vouchers, and pass in accordance with stipulations of the China Commodity Inspection Bureau;

(4) Commodity inspection departments concerned shall make regular report of the amount of canned or salted mushrooms they have inspected for export to the State Administration of Commodity Inspection, with copies sending to the Ministry of Foreign Trade and Economic Cooperation and the China Chamber of Commerce of Foodstuffs and Native Produce.

Article 6. Coordination of export operations is the following:

(1) The Chamber shall coordinate export of canned and salted mushrooms, particularly the export market, the price and the transaction;

(2) The Ministry of Foreign Trade and Economic Cooperation shall authorize the Chamber to take charge of preliminary examination of the prices of export contracts and follow-up supervision and examination after completion of export. The Chamber shall feed relevant information to pertinent administrative departments;

(3) Rules on the coordination of export of canned and salted mushroom shall be formulated by the Chamber.

Article 7. The canned or salted mushrooms exported by production enterprises that have been granted by the Ministry of Foreign Trade and Economic Cooperation to handle foreign trade independently shall be commodities produced by these enterprises themselves.

Article 8. The canned or salted mushrooms exported by foreign-funded enterprises shall be commodities produced by these enterprises themselves, and the amount of export shall not exceed the limit set by the Ministry of Foreign Trade and Economic Cooperation. They shall also subject themselves to the unified coordination by the Chamber via the China Association of Foreign-funded Enterprises.

Article 9. Custom offices shall pass canned or salted mushrooms declared for export on the strength of export licenses and commodity inspection vouchers.

Article 10. Rules on punishment are the following:

(1) Enterprises that export at low prices or commodities of poor quality, waste or transfer quotas without authorization, sell export licenses, or violate stipulations of this Rule in other aspects shall be criticized, warned, have their quotas cut, or deprived of the power to handle foreign trade independently after confirmation of their cases and the seriousness of their cases;

(2) Departments in charge of issuance of export licenses and those in charge of issuance of commodity inspection vouchers that violate stipulations of this Rule shall be handled according to regulations on the management of export licenses and on commodity inspection.

Article 11. The right to explain this Rule will stay with the Ministry of Foreign Trade and Economic Cooperation. Should any stipulations in other regulations contradict this Rule, this Rule shall prevail.

Article 12. This Rule shall take force on the date of promulgation.