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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II ORGANIZING STRUCTURE CHAPTER III THE QUALIFICATION, PRICE, QUANTITY AND MODE OF THE BIDDING CHAPTER IV RULES FOR TENDER EVALUATION CHAPTER V OPERATIONAL PROCEDURES CHAPTER VI THE SUBMISSION, TRANSFER AND ASSIGNMENT OF QUOTAS CHAPTER VII EXPORT LICENSES CHAPTER VIII PROVISIONS OF PENALTIES CHAPTER IX SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The Detailed Rules have been formulated in accordance with the Methods on Quota Bidding of Export Commodities (hereinafter referred to the Methods). CHAPTER II ORGANIZING STRUCTURE Article 2. The export quota bidding committee (hereinafter referred to the bidding committee) of the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to MOFTEC) consists of one chairman, one or two vice chairmen and a number of committee members. The chairmanship shall be held by a leader of Ministers of MOFTEC; the vice-chairmanship by the persons-in-charge from the Department of Foreign Trade Administration of MOFTEC; the committee membership by people from the Department of Foreign Trade Administration, and from the departments and bureaus concerned of MOFTEC. Article 3. The main obligations of the bidding committee are as follows: (1) Determining the quota quantity of each bidding, the mode of bidding adopted and the proportion of each mode of bidding against the total number of tender invitations for different commodities before each bidding, in the light of their specific situations; (2) Examining the plans of export quota bidding of specific commodities; directing, supervising the bid opening and tender evaluating by bidding offices and verifying the results of quota bidding; (3) Publishing various notices, announcements and decisions of quota bidding; (4) Accepting the quotas submitted by enterprises and reported by bidding offices; affixing a seal and keeping a record of the quota transfer and assignment; (5) Examining the work of receiving bid bonds and winning prices as well as the use of quotas. The department of foreign trade administration of MOFTEC will be responsible for the routine affairs of the bidding committee. Article 4. The bidding office shall consist of a chairman, a vice-chairman and a number of office members. The chairmanship shall be held by the person-in-charge from chambers of Commerce for imports and exports, the vice-chairmanship and the office membership by representatives from chambers of commerce for imports and exports, China Association of Foreign Investment Enterprises, coordinating departments of relevant industries and experts in the fields concerned. Bidding offices will adopt the principle of one person for one ballot and the minority obeying the majority. Article 5. The obligations of bidding offices are as follows: (1) Drafting the plans of export quota bidding of specific commodities, in which the important items, such as the standard of bidding qualifications should be discussed collectively and decided by voting at bidding offices, before a preliminary plan is reported to the bidding committee for examination and verification; (2) Confirming the list of bidding enterprises on the basis of the bidding qualification and reporting the result to the bidding committee \for examination and verification; (3) Conducting the bid opening, tender evaluation and reporting the results to the bidding committee for examination and verification. Article 6. Relevant chambers of commerce for imports and exports shall be in charge of the routine affairs of the bidding work, including: (1) Drafting notices, announcements and decisions concerning the quota bidding and submitting them to the bidding committee for examination and verification; (2) Printing in uniform and providing "Notice of reward" (see Attachment 1), "the receipt of winning prices in public quota bidding of export commodities" (see Attachment 2), "the receipt of winning prices in negotiated quota bidding of export commodities" (see Attachment 3), "the certificate of application for export licenses of the commodities subject to bidding" (see Attachment 4) and "the certificate of quota transfer and assignment of bidding commodities" (see Attachment 5), etc according to regulations; (3) Examining and verifying the work of receiving bid bonds and winning prices for bid which are paid by enterprises and reporting to the bidding committee; (4) Accepting the quotas turned in by enterprises; accepting and ratifying applications of enterprises for quota transfer and assignment and reporting to the bidding committee to affix a seal and keep a record; (5) Examining and supervising the use of quotas and licenses by the winning enterprises; (6) Conducting other relevant business transferred by the bidding committee. CHAPTER III THE QUALIFICATION, PRICE, QUANTITY AND MODE OF THE BIDDING Article 7. The qualification for bidding varies depending on the types of bidding adopted: (A) Public Bidding Any kinds of enterprises (including the foreign investment enterprises) with registered capital, import and export volume reaching a certain scale and with operation right of export, which is approved by MOFTEC, shall be allowed to participate in public bidding after they have registered with the administrative organizations for industry and commerce and joined relevant chambers of commerce for imports and exports (foreign enterprises join China association of foreign investment enterprises); enterprises, which are granted by MOFTEC the operation right of border trade by small scale, may participate in the bidding and bid for quotas for their own products, unless otherwise provided for by MOFTEC. (B) Negotiated Bidding 1. The top several enterprises with qualifications for public bidding and with the average export volume or value of a certain bidding commodity in the previous 2 or 3 years reaching a certain proportion of the country's aggregated annual average export volume or value; the other export enterprises with registered capital or production reaching a certain scale and with better capital situation, economic proficiency, high additional value and famous brand for their commodities (including foreign investment enterprises); the key export enterprises of a certain commodity subject to bidding, which respond actively to anti-dumping investigations of the commodity and pay adequate relevant fee in time. 2. The bidding qualification of textile products subject to negotiated bidding for the compulsory quota Bidding office will determine the qualification of enterprises for negotiated bidding, based on their export performances of textile products in the particular country before quotas are imposed by the country on China, which is provided by the bidding committee, the bilateral agreements between our country and the country which imposes quotas and other relevant situations. (C) The bidding qualifications of some commodities are stipulated separately by the State Council, which will be observed and implemented. Article 8. Bidding enterprises will decide on the tender offer independently. In order to avoid unreasonably low tender offer, bidding offices may decide on and publish the lowest tender offer in advance, in the light of the actual situation. Those below the limit will be considered invalid. In order to avoid unreasonably high tender offer, the bidding office is entitled to rescind the bidding documents whose tender offers deviate form the normal level. The weighted average prices of winning enterprises in the same public bidding of the year can be consulted to decide on the lowest tender offer in the negotiated bidding, the average profits of specific export commodities, the quota-winning prices of previous years and other factors can also be taken into considerations, in the light of the actual situation. Article 9. In order to prevent the monopoly or scattered distribution of quotas among the winning enterprises, the bidding committee may set, in the light of the actual situation, the maximum and minimum amount of tenders and publish the results before the bidding. Bidding offices may set, if needed, the maximum amount of tenders on different scales for specific commodities based on the export performance and economic proficiency of different export enterprises and other relevant factors. Those above the maximum amount and below the minimum amount will be considered invalid. In public bidding, bidding enterprises may decide on the amount of tenders independently in the range of maximum and minimum amount, among which those of foreign investment enterprises should not exceed the export scale i.e. the amount verified by MOFTEC minus the amount of tenders in negotiated bidding. In negotiated bidding, the bidding office will determine for enterprises subject to bidding the maximum amount of tenders respectively on the basis of their average export performances, situation of supplies and operation capabilities in the previous 2 or 3 years, the results will be informed to the enterprises upon approval by MOFTEC. Enterprises participated in the negotiated bidding of textile products for compulsory quotas shall bid within the maximum amount of tenders respectively determined by the bidding office the bidding documents above their corresponding amounts of tenders will be considered invalid. Article 10. The export performance of enterprises subject to bidding should be based on statistical data of the General Administration of the Customs, other materials may also be consulted, if necessary, upon the approval by MOFTEC. Article 11. Enterprises shall bid by electronic bidding documents before designated time and post their printed versions to the bidding office as the written spare copy. The electronic statistics will be considered true and valid in the bidding. When the bidding committee confirms the electronic statistics of the bidding documents unworkable, the written spare copy shall be used in tender evaluation instead. Export enterprises of various kinds shall be allowed to only bid for one time before the deadline. After the electronic bidding document is delivered, they should be careful about the feedback information of receiving it on the computer, which is issued by China international center of MOFTEC for electronic data interchange (hereinafter referred to as EDI center of MOFTEC), the bidding work comes to an end upon the confirmation of bidding documents being safely received. CHAPTER IV RULES FOR TENDER EVALUATION Article 12. The validity of tenders shall be decided upon in accordance with stipulations provided in article 8 and article 9 of the Detailed Rules. Article 13. Electronic bidding documents will be considered invalid in any of the following cases: (1) Bidding documents, which are requested voluntarily as invalid before the bid opening; (2) Bidding documents which exceed the designated deadline; (3) More than 2 (including 2) bidding documents are received successfully, which are delivered by one enterprise before the deadline, whether the content is same or not; or (4) Other case of bidding documents being considered invalid by the bidding committee. Article 14. Determining the winning enterprises Public bidding: tender offers of all qualified bidding enterprises shall be arranged in order from high to low prices, from which the aggregated number of tenders of bidding enterprises will be got. When the aggregated number of tenders equal the total amount of tender invitations, those included in the aggregated number of tenders (the total amount of tender invitations) will be bid-winning enterprises. If the total amount of tenders of enterprises at the lowest winning price exceeds the remaining quantity of quotas, all the enterprises at this price will be considered bid-winning enterprises. Negotiated bidding: all the enterprises with tender offers not below the lowest price level, which is stipulated by the bidding committee will be regarded as winning enterprises. Article. 15 The winning prices and quota quantity of winning enterprises shall become: (A) the winning prices of winning enterprises: their tender offers; (B) the quota quantity won by the winning enterprise: depending on the types of the bidding adopted: 1. In public bidding: the quantity of quotas won by the winning enterprises is the number of their tenders. When the total amount of tenders of bidding enterprises at the lowest winning price exceeds the remaining quantity of quotas, enterprises at this price will allocate the remaining quotas based on their number of tenders. When the quantity of quotas won by winning enterprises is below the minimum amount of tenders, those enterprises will be considered failed in the bidding. 2. In negotiated bidding: The quantity of quotas won by the enterprises shall be determined in accordance with the following formula: (1) Quantity of Aggregated Bidding value x (Tender offer of a particular winning enterprise / Sum of the tender offers of all the winning enterprises); or (2) the maximum quantity of quotas won by an enterprises subject to its tenders. CHAPTER V OPERATIONAL PROCEDURES Article 16. Verification of the bidding qualification The bidding office should re-examine the bidding qualification of enterprises during the designated period of time and submit the results and other relevant material to the bidding committee for verification. Article 17. The bidding office should submit the bidding plan to the bidding committee for verification within the fixed period of time. Bidding announcements as well as the list of enterprises participated in negotiated bidding will be published on the designated news media upon verification. Article 18. The bidding office should publish preliminary bid-winning results in electronic way on the day right after the tender evaluation. Bidding enterprises may put forward questions, if they have, to the bidding office in 2 working days after the publication day. The bidding office should submit the results to the bidding committee for verification in 3 working days after the publication day. Article 19. The bidding committee should inform the bidding office in time and publish the list of winning enterprises upon the examination and approval of bid-winning results. Article 20. The bidding office should deliver timely according to the notice of the bidding committee, to bid-winning enterprises, "notice of award", "the receipt of winning prices in public quota bidding of export commodities" and "the receipt of winning prices in negotiated quota bidding of export commodities." Article 21. The way of paying the winning prices is as follows: Bid-winning enterprises should pay the bid bond and winning prices according to the following stipulations; other enterprises are not allowed to pay for them. 1. Bid-winning enterprises should pay the bid bond and winning prices to the designated bank account in check, draft or remittance within the fixed period of time and provide "the receipt of winning prices in public quota bidding of export commodities" and "the receipt of winning prices in negotiated quota bidding of export commodities", which are filled in by the enterprises. The bid bond shall be 30% to 80% of the winning prices (i.e. the sum = the quantity of quotas won by an enterprise X tender offer of the enterprise), the exact ration shall be determined by the bidding committee in light of the situation of specific commodities, the bid bond will not be returned in any case of the quotas being used. 2. Bid-winning enterprises shall pay, based on the quantity of quotas demanded by the export license, the balance amount of winning prices for the corresponding quotas to the designated bank account before they apply for the export license each time and provide "the receipt of winning prices in public quota bidding of export commodities" or "the receipt of winning prices in negotiated quota bidding of export commodities", which is filled in by the enterprise. Article 22. The bidding office shall immediately issue "the certificate of application for export licenses of the commodities subject to quota bidding" upon receiving the winning prices of enterprises. Article 23. The bidding committee may invite bid for the second time for the quotas withdrawn or submitted, based on their actual amounts, or deal with them in other ways approved by MOFTEC. CHAPTER VI THE SUBMISSION, TRANSFER AND ASSIGNMENT OF QUOTAS Article 24. Winning enterprises, which fail to use up the quotas in the bidding, shall apply for submitting or transferring the quotas on voluntary basis, after explaining to bidding offices. Article 25. October, 31st is the deadline for the submitting of quotas by enterprises to bidding offices, the time of submitting will be set separately for the seasonal commodities subject to bidding. Upon receiving the quotas submitted before October 31st, the biding office will reimburse the winning prices to the enterprises, which have already paid their winning prices, but the bid bond will not be returned. The bidding office will not deal with the submitting of quotas after October 31. Article 26. Winning enterprises should apply for quota transfer after they have paid the full amount of winning prices for the proposed quotas of being transferred to the designated bank account. Article 27. The enterprises to which quotas are assigned shall submit the application for quota transfer and assignment on voluntary basis between the two sides to the bidding office for verification. Article 28. The bidding office should report to the bidding committee during 3 working days upon receiving the quotas submitted by enterprises; the biding office should finish the verification during 3 working days, according to relevant stipulations, upon receiving the application for quota transfer and assignment of enterprises and submit to the bidding committee "the certificate of quota transfer and assignment of bidding commodities" to affix a seal and keep a record. The bidding committee will return it back to the bidding office in 3 working days after affixing a seal and keeping a record and inform the EDI center of MOFTEC at the same time. Article 29. The bidding offices should deduct the quantity of quotas submitted or transferred by enterprises from the original amount. While "the certificate of quota transfer and assignment of bidding commodities" is delivered, "the certificate of application for export licenses of the commodities subject to quota bidding" should also be issued to the enterprises to which quotas are assigned. Relevant issuing authorities of certificates should also be informed respectively. CHAPTER VII EXPORT LICENSES Article 30. MOFTEC will pass on the list of winning enterprises in negotiated bidding and their quantities of quotas won in the bidding to different issuing authorities of certificates and local administrative departments of foreign economic relations and trade upon examination and approval. Article 31. The verification and delivering of export licenses of bidding commodities should be not only in accordance with relevant stipulations on the export license administration, but also based on the following regulations: (1) The list of winning enterprises in the negotiated bidding and their quantities of quotas won in the bidding transmitted by MOFTEC; or (2) The certificate of application for export licenses of the commodities subject to bidding. CHAPTER VIII PROVISIONS OF PENALTIES Article 32. Any enterprise or individual has rights and obligations to impeach and complain about the cheating practice of breaching the Methods and the Detailed Rules in the process of negotiated bidding. After the above-mentioned behaviors having been proved to be true after investigation, MOFTEC shall be entitled to veto this round of bidding and award the enterprise or individual for the impeachment or complaints. Article 33. The MOFTEC shall be entitled to punish those in the bidding office and the bidding committee who have breached the Measures and the Detailed Rules for the interests of a single individual or a small group, according to the seriousness of consequences, until transferring them to judicial departments for criminal responsibilities. Article 34. The bidding committee will revoke the quotas won in the bidding, when the enterprises disturb the work of quota bidding by collusive tendering, false declaration of bidding qualifications or in the other ways. The bidding committee will rescind their qualifications of quota bidding for the particular commodity for 2 to 4 years. Article 35. The bidding committee will revoke the quotas won by the enterprises when they win in the bidding but refuse to pay the bid bond according to stipulations, the bidding committee will rescind their qualifications of quota bidding for the particular commodity for 2 years. Article 36. Quotas will be considered wasted when they are not submitted or transferred according to stipulations, not taken before the date of expiration and when they are taken but left unused. Enterprises, which have wasted 30% or less than 30% of the quotas won in the bidding of the whole year will be rescinded of their qualifications for quota bidding of the commodity in the following 2 years. Those, which have wasted 30% or more than 30% of the quotas won in the bidding of the whole year, will be rescinded of their qualifications for quota bidding of the commodity in the following 3 years. Article 37. The bidding committee shall be entitled to rescind the permanent bidding qualifications for from a single commodity to all commodities subject to bidding of the enterprises which have been mentioned in the proceeding articles of Chapter 8, transfer the enterprises which breach these stipulations to relevant departments for investigation and punishment according to relevant laws and regulations, when they intend to disrupt the bidding work in a serious way. Article 38. When the bidding enterprises fail to pay winning prices (including the bid bonds) according to stipulations because of force majeure, they may be exempted from partial or full responsibility upon resolution of the bidding office and approval of the bidding committee, after showing the guarantee issued by relevant authorities within a reasonable period of time. Article 39. Relevant winning enterprises may be exempted from partial or full responsibility upon resolution of the bidding office and approval of the bidding committee in case of the generally low rate of certificate-bearing for the quota won in the bidding of a certain commodity which is caused by fluctuations of international market, etc. CHAPTER IX SUPPLEMENTARY PROVISIONS Article 40. The bidding committee shall open special accounts in designated banks to collect the bid bond and winning prices. Specific affairs may be entrusted to relevant chambers of commerce for imports and exports. Article 41. Bidding offices shall report the situation of collecting bid bonds to the bidding committee during 5 working days after the deadline for the collection of bid bonds, which is stipulated in Article 21 of the Detailed Rules. Article 42. The announcements and notices, etc. on export quota bidding will be published in "the international business", "the news of international trade and economics" or the other relevant media designated by the bidding committee. Article 43. Any establishment, organization or individual should not publish stipulations, announcement or notice concerning with quota bidding without approval of MOFTEC or the bidding committee. Article 44. MOFTEC will be responsible for the interpretation of the Detailed Rules. Article 45. The Detailed Rules shall enter into force on the date of promulgation, the original "Detailed Rules for the Implementation of the Measures on Export Quota Bidding with Compensation", "Detailed Rules for the Implementation of the Measures on Compulsory Quota Bidding and the Use with Compensation of Some Kinds of Textile Products" (trial implementation), "the Notice On several Issues in Compulsory Quota Bidding of Textile Products in the year 1999" and other relevant stipulations shall be annulled as of the same date. Attachments: omitted. |
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