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
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.
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