Article 11 When engaging in the business of importing for entrusted processing and re-exporting, foreign-invested sourcing centers shall go through the same procedures as joint venture trading companies in the same business. All products shall be exported and shall not be sold domestically under general circumstances. In the case of special circumstances where the products fail to be exported and need to be sold domestically, the procedures for domestic sale of export-oriented products shall apply according to relevant provisions governing processing trade. The domestic sale shall be approved by the competent authority in charge of commercial affairs at the provincial level with the issuance of a Domestic Sale Permit. Meanwhile, the case shall be reported to and kept on record at the Ministry of Commerce. In the event that import permit is required, the import permit shall be obtained according to relevant regulations. Should the approval of the Ministry of Commerce be required, relevant existing regulations shall be observed.

The Customs shall collect unpaid duty for the products for domestic sale and release them upon presentation of Domestic Sale Permit and effective import permit.

Article 12 Unless otherwise provided for, sourcing centers for export set up in the Mainland of China by investors from Hong Kong SAR, Macao SAR and Taiwan region shall follow the Regulations.

Article 13. The Regulations shall be interpreted by the Ministry of Commerce, the Customs General Administration, the State Taxation Administration and the State Administration of Foreign Exchange.

Article 14 The Regulations comes into effect 30 days after the date of promulgation.

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