6) For CD (compact disc) production equipments, the license issuing agencies shall issue the import licenses on the basis of the documents of approval of the State Administration of News and Publication and the import certifications of mechanical and electrical products of the MOFTEC.

7) For ozonosphere-exhausting materials, the license issuing agencies shall issue the import licenses on the basis of Examination and Approval Form of the Import of Ozonosphere-exhausting Materials under Control approved by the State Office of the Administration of Import and Export of Ozonosphere-exhausting Materials.

Article 17 For the import of the commodities subject to license administration in processing trade, the import licenses shall be exempted with the exception of product oil, controlled chemicals, chemicals easily to generate poison and CD production equipments.For the import of controlled chemicals, chemicals easily to generate poison and equipments of CD production, the license issuing agencies shall handle according to the provisions of Items 4), 5), and 6) of Article 16.

Article 18 For the import of mechanical and electrical products subject to quota administration for investment and self use and the import of non-mechanical and- electrical products for production and domestic sale of enterprises with investment, the license issuing agencies shall issue the import licenses on the basis of the Import Quota Certification of Enterprise with Foreign Investment issued by the MOFTEC or the administrative authorities of the provinces, autonomous regions, municipalities directly under the Central Government and municipality separately listed on the State plan. For the import of non-mechanical and electrical-products subject to import license administration for investment and self use of enterprises with foreign investment, the license issuing agencies shall issue the import licenses on the basis of the Import Registration Certification of Specific Commodities of Enterprises with Foreign Investment issued by the MOFTEC or the administrative authorities of the provinces, autonomous regions, municipalities directly under the Central Government and municipality separately listed on the State plan. For the import of CD production equipments of enterprises with foreign investment, the license issuing agencies shall issue the licenses on the basis of the License for Copying and Management of Audio and Video Products of the State Administration of News and Publication, the certificate of approval of the MOFTEC, the import contract (original and copy) and the list of import equipments.

Article 19 When applying for import licenses, the import enterprises shall file the applications truthfully according to the provisions of these Measures, and may not practice frauds and are strictly prohibited from deceitfully obtaining the import licenses by the means of false documents or false contracts, etc.

Chapter 5 Valid Term of Import License

Article 20 The valid term of import license shall be 1 year.The import license shall be issued within the valid term as prescribed in the documents of approval of the departments of import administration.The import license shall be valid in the current year. Where it is needed to continue to use the license in the next year under special circumstances, the valid term shall not go beyond March 31 of the next year.The import license shall be used within the valid term, and shall become invalid automatically upon the expiration of the term and the customs shall not grant release.

Article 21 Extension of import license

1) Where the import license hasn¡¯t been used within the valid term due to proper reasons, the import enterprise shall file an application for extension with the original license issuing agency within the valid term of the import license. The license issuing agency shall withdraw the original license and reissue the import license after writing off the original license in the computer management system of import and export licenses, and shall indicate in the notes the extended use and the number of the original license.

2) Where the import license hasn't been used up within the valid term, the import enterprise shall file an application for extension of the unused part with the original license issuing agency, and the license issuing agency shall withdraw the original license and reissue the import license after writing off the original license in the license issuance system and deducting the used quantities, and shall indicate in the notes the extended use and the number of the original license.

3) The import license may be extended for only once, and the extension may not be more than 3 months at the most.

4) If no application for extension is filed within the valid term of import license, the import license shall become invalid automatically, and the license issuing agency shall not accept and handle the license extension any longer, and the holder of that import license shall be regarded as to give up voluntarily.

Article 22 Alteration of import license

1) Once the import license is issued, no unit or individual may alter the contents on the license without authorization. Where alteration is needed, the import enterprise shall file an application for alteration within the valid term of the license, and return the license to the original license issuing agency, which shall reissue the license.

2) If the altered contents of the license involve the key columns on the license, the applying unit shall provide the documents of approval for the alteration of the original approving organ.

Article 23 Handling of the lose of import license If the import license drawn is lost, the unit drawing the license shall report the case to the department of public security immediately, and shall publish the announcement of invalidation on the national comprehensive or economic newspapers. The license issuing agency may, after verification that the case is true, cancel the original import license and issue the new license on the basis of the lose report, the newspapers on which the announcement of invalidation is published and other materials.

Article 24 Inquiry of import license Where the units such as the customs, administrations for industry and commerce, public security departments, discipline examination departments and courts etc. need to inquire or investigate the import licenses with the license issuing agencies, they shall show the relevant certificates before the licensing agencies may accept the inquiry.

Article 25 Where the license issuing agency for the commodity subject to the administration of import license is adjusted, the original license issuing agency may not issue the import license for that commodity any longer from the day of adjustment, and shall report to the adjusted license issuing agency the license application and drawing before the adjustment. The license applied and drawn by the import enterprise before the adjustment shall remain valid within the valid term. The import license which is unused or not used up within the valid term shall go through the procedures for extension at the adjusted license issuing agency according to the provisions.

Chapter 6 Inspection and Penalty

Article 26 The MOFTEC authorizes the License Bureau to make regular inspections over the license issuing agencies. The contents of inspection shall be the enforcement of these Measures by the license issuing agencies, and emphasis shall be put on whether there are problems of rule-breaking license issuance exceeding the quotas, without quota and beyond the authorities and levels, and whether there are other rule-breaking acts. The forms of inspection may be the combination of the regular or irregular inspection by the license issuing agencies and the selective inspection by the License Bureau. The License Bureau shall report the inspections to the MOFTEC.

Article 27 The license issuing agencies shall, according to the provisions of the MOFTEC on the network verification and inspection of licenses, report the data of license issuance to the higher authorities, thus to ensure the successful customs declarations by the enterprises and the verification and inspection by the customs. And the license issuing agencies shall carefully verify the data of verification and inspection fed back by the customs, inspect the use of the licenses and find out the existing problems without delay.

Article 28 The issued import licenses which exceed the quotas, without quota or beyond the authorities or levels shall be invalid. For the license issuing agencies that violate the provisions, the MOFTEC shall give the punishments such as warning, suspension or cancellation of license regarding the seriousness of the circumstances.

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