+------------------------------------------------+---------------------+
| **[World Trade]{.smallcaps}**                  |                     |
|                                                |                     |
| **[Organization]{.smallcaps}**                 |                     |
+------------------------------------------------+---------------------+
|                                                |                     |
+------------------------------------------------+---------------------+
|                                                | **G/ADP             |
|                                                | /N/1/CHN/2/Suppl.4\ |
|                                                | G/SCM               |
|                                                | /N/1/CHN/1/Suppl.4\ |
|                                                | G/SG/               |
|                                                | N/1/CHN/2/Suppl.4** |
|                                                |                     |
|                                                | 1 December 2004     |
+------------------------------------------------+---------------------+
|                                                | (04-5226)           |
+------------------------------------------------+---------------------+
|                                                |                     |
+------------------------------------------------+---------------------+
| **Committee on Anti-Dumping Practices**        | Original: English   |
|                                                |                     |
| **Committee on Subsidies and Countervailing    |                     |
| Measures**                                     |                     |
|                                                |                     |
| **Committee on Safeguards**                    |                     |
+------------------------------------------------+---------------------+

NOTIFICATIONS OF LAWS AND REGULATIONS UNDER

ARTICLEs 18.5, 32.6 and 12.6 OF THE AGREEMENTs

PEOPLE\'S REPUBLIC OF CHINA

[Supplement]{.underline}

The following communication, dated 22 November 2004, is being circulated
at the request of the Delegation of the People\'s Republic of China.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

In accordance with Article 18.5 of the Agreement on Implementation of
Article VI of the GATT 1994, Article 32.6 of the Agreement on Subsidies
and Countervailing Measures and Article 12.6 of the Agreement on
Safeguards, the Government of China has the honour to notify the newly
amended Foreign Trade Law of the People's Republic of China to relevant
WTO Committees.

**Decree of the President of**

**The People's Republic of China**

(No.15)

The Foreign Trade Law of the People's Republic of China, adopted as
amended at the Eighth Session of the Standing Committee of the tenth
National People's Congress on 6 April 2004, is hereby promulgated and
shall come into effect as of 1 July 2004.

Hu Jintao

President of the People's Republic of China

6 April 2004

**The Foreign Trade Law of**

**the People's Republic of China**

(Adopted at the Seventh Session of the Standing Committee of the Eighth
National People's Congress on 12 May 1994; and amended at the Eighth
Session of the Standing Committee of the Tenth National People's
Congress on 6 April 2004.)

**Chapter I General Principles**

Article 1 This Law is formulated in order to broaden the opening to the
outside world, develop the Foreign Trade, maintain the Foreign Trade
order, protect the legitimate rights and interests of Foreign Trade
Operators, and promote a healthy development of the socialist market
economy.

Article 2 This Law shall apply to the Foreign Trade and the protection
of Foreign Trade related intellectual property rights.

Foreign Trade, for the purpose of this Law, means the import and export
of goods and import and export of technologies and the international
trade in services.

Article 3 The State Council's Competent Foreign Trade authority is in
charge, in accordance with this Law, of the administration of the
Foreign Trade nationwide.

Article 4 The State implements a uniform Foreign Trade system,
encourages the development of the Foreign Trade, and maintains a fair
and free Foreign Trade order.

Article 5 The People's Republic of China will, based on the principles
of equality and mutual benefit, promote and develop trade relations with
other countries and regions, conclude or accede to agreements on Customs
Unions or free trade zones and other regional economic and trade
agreements, and join regional economic organizations.

Article 6 The People's Republic of China, in respect of the Foreign
Trade, in accordance with international treaties or agreements to which
the People's Republic of China is a contracting party or acceding party,
grants the other contracting parties or acceding parties the
most-favoured-nation treatment, national treatment or other treatments,
or on the principles of mutual advantage and reciprocity, grants the
other party the most-favoured-nation treatment, national treatment or
other treatments.

Article 7 In the event that any country or region applies discriminatory
prohibitions, restrictions or other like measures against the People's
Republic of China in respect of trade, the People's Republic of China
may, depending on actual circumstances, take countermeasures against the
aforesaid country or region.

**Chapter II Foreign Trade Operators**

Article 8 For the purpose of this law, Foreign Trade Operator means a
legal person, other organization or an individual that has carried out
industrial and commercial registration or other business practicing
procedures in accordance with the law, and is engaged in Foreign Trade
activities in accordance with this Law and other relevant laws and
administrative regulations.

Article 9 Foreign Trade Operators engaged in the import and export of
goods or the import and export of technologies shall register with the
State Council's competent Foreign Trade authority or the institutions
delegated by it, unless laws, administrative regulations or provisions
of the State Council's competent Foreign Trade authority specify that
registration is not required. The specific measures for registration
will be formulated by the State Council's competent Foreign Trade
authority.

If a Foreign Trade Operator fails to register as required in accordance
with the regulations, the Customs Administration shall not carry out the
procedures of custom declaration, inspection or release for imports or
exports of its good.

Article 10 To engage in the international trade in services, this Law
and other relevant laws and administrative regulations shall be complied
with.

Units engaged in overseas project contracting and those providing labour
services abroad shall have corresponding qualifications or competence.
Specific measures shall be formulated by the State Council.

Article 11 The State may subject import and export of certain goods to
the state trading administration. Such business as subject to the state
trading administration shall only be carried out by authorized
enterprises, unless the State permits the import and export of a certain
quantity of goods subject to the state trading administration to be
carried out by non-authorized enterprises.

Catalogue of goods subject to the state trading administration and
catalogue of authorized enterprises will be formulated, adjusted and
published by the State Council's competent Foreign Trade authority
together with other relevant State Council authorities.

If the provisions of the first paragraph of this Article are violated by
importing or exporting goods subject to the state trading administration
without authorization, the Customs Administration shall not release the
goods.

Article 12 A Foreign Trade Operator may, under entrustment, undertake
Foreign Trade business on behalf of such others within its business
scope.

Article 13 A Foreign Trade Operator shall, in compliance with the
provisions issued by the State Council's competent Foreign Trade
authority or other relevant State Council authorities in accordance with
laws, submit documents and information related to its Foreign Trade
activities to the relevant authorities. The relevant authorities shall
keep confidentiality of the business secrets for the providers of such
documents and information.

**Chapter III Import and Export of Goods**

**and Import and Export of Technologies**

Article 14 The State permits goods and technologies to be imported and
exported freely, unless otherwise provided by laws and administrative
regulations.

Article 15 The State Council's competent Foreign Trade authority may,
based on import and export monitoring requirements, implement an
automatic import and export licensing system on certain goods which are
imported and exported freely, and publish the catalogue thereof.

When the consignor or consignee subject to automatic licensing submits
an application for an automatic license prior to carrying the Customs
declaration procedures for those goods imported or exported under the
automatic licensing, the State Council's competent Foreign Trade
authority or an institution it delegates, shall grant the license; where
the automatic licensing procedure is not carried out, the Customs
Administration shall not allow clearance of the goods.

When importing or exporting technologies that belong to free import and
export, the contracts concerned shall be registered with the State
Council's competent Foreign Trade authority or the authority delegated
by it.

Article 16 The import or export of relevant goods and technologies may
be restricted or prohibited by the State based on any of the following
reasons:

\(1\) there is a necessity to restrict or prohibit import or export in
order to safeguard national security, social and public interests or
public morals;

\(2\) there is a necessity to restrict or prohibit import or export in
order to protect human health or safety, the life or health of animals
or plants, or to protect environment;

\(3\) there is a necessity to restrict or prohibit import or export in
order to implement measures relating to the import and export of gold or
silver;

\(4\) there is a necessity to restrict or prohibit export due to
shortage in domestic supply or in order to effectively protect domestic
resources which are possibly being exhausted;

\(5\) there is a necessity to restrict export due to limited market
capacity of an importing country or region;

\(6\) there is a necessity to restrict export when severe disturbance in
export business order arises;

\(7\) there is a necessity to restrict import in order to establish or
accelerate the establishment of specific domestic industries;

\(8\) there is a necessity to restrict import of agricultural, animal
husbandry or fishery products in any form;

\(9\) there is a necessity to restrict import in order to maintain the
State's international financial position and the balance of
international payments;

\(10\) there is a necessity to restrict or prohibit other imports or
exports in accordance with the provisions of laws and administrative
regulations;

\(11\) there is a necessity to restrict or prohibit other imports or
exports in accordance with the provisions of international treaties or
agreements concluded or acceded to by the People's Republic of China.

Article 17 The State may take any necessary measure to safeguard
national security on the import and export of goods and technologies
relating to fissionable and fusionable materials or the materials from
which they are derived, and with respect to the import and export of
arms, ammunition or other military materials.

The State may take any necessary measure on the import and export of
goods and technologies in time of war or for the maintenance of
international peace and security.

Article 18 The State Council's competent Foreign Trade authority,
together with other relevant State Council authorities, in accordance
with the provisions of Article 16 and 17 of this Law, formulates,
adjusts and publishes the lists of goods and technologies that are
restricted or prohibited for import or export.

With the approval of the State Council and within the scope of Article
16 and 17, the State Council's competent Foreign Trade authority may
independently or together with other relevant State Council authorities
decide provisionally to restrict or prohibit the import or export of
specific goods or technologies not in the list mentioned in the
preceding paragraph.

Article 19 The State implements quotas, licenses or other administrative
measures on goods that are restricted for import or export and
implements licenses on technologies that are restricted for import or
export.

Goods or technologies subject to quotas or licenses shall, in accordance
with provisions of the State Council, be imported or exported only when
permitted by the State Council's competent Foreign Trade authority,
either independently or in collaboration with other relevant State
Council authorities.

The State may impose tariff quotas on certain imported goods.

Article 20 Import and export quotas and tariff quotas will be allocated
by the State Council's competent Foreign Trade authority or other
relevant State Council authorities within their respective scopes of
responsibility and on the basis of the principles of transparency,
fairness, impartiality and efficiency. Specific measures will be
formulated by the State Council.

Article 21 The State implements a uniform merchandise conformity
assessment system, and certifies, inspects and quarantines the import
and export merchandise in accordance with relevant laws and
administrative regulations.

Article 22 The State applies rules of origin to import and export goods.
Specific measures will be formulated by the State Council.

Article 23 Where cultural relics, wild animals and plants and products
made therefrom are restricted or prohibited for import or export by
other laws and administrative regulations, the provisions of such laws
and administrative regulations shall apply.

**Chapter IV International Trade in Services**

Article 24 With respect to international trade in services, the People's
Republic of China, pursuant to its commitments under international
treaties or agreements to which the People's Republic of China is a
contracting party or an acceding party, grants market access and
national treatment to other contracting parties or acceding parties in
such treaties or agreements.

Article 25 The State Council's competent Foreign Trade authority and
other relevant State Council authorities are responsible for the
administration of international trade in services in accordance with
this Law and other relevant laws and administrative regulations.

Article 26 The State may restrict or prohibit the relevant international
trade in services based on any of the following reasons:

\(1\) there is a necessity for a restriction or prohibition in order to
safeguard national security, social and public interest or public
morals;

\(2\) there is a necessity for a restriction or prohibition in order to
protect human health or safety, the life or health of animals or plants
or to protect environment;

\(3\) there is a necessity for a restriction in order to establish or
accelerate the establishment of specific domestic service industries;

\(4\) there is a necessity for a restriction in order to guarantee the
balance of international foreign exchange payments;

\(5\) there are necessities for other restrictions or prohibitions in
accordance with laws and administrative regulations;

\(6\) there are necessities for other restrictions or prohibitions in
accordance with the provisions of international treaties or agreements
concluded or acceded to by the People's Republic of China.

Article 27 The State may take any necessary measure to safeguard
national security against the international trade in services relating
to military affairs, fissionable and fusionable materials or the
materials from which they are derived.

The State may take any necessary measure against international trade in
services in time of war or for the maintenance of international peace
and security.

Article 28 The State Council's competent Foreign Trade authority,
together with other relevant State Council authorities in accordance
with the provisions of Article 26, 27 of this Law and other relevant
laws and administrative regulations, formulates, adjusts and publishes
lists of market access for international trade in services.

**Chapter V Protection of Foreign Trade-related**

**Intellectual Property Rights**

Article 29 The State protects Foreign Trade-related intellectual
property rights according to relevant laws and administrative
regulations on intellectual property rights.

Where imported goods infringe intellectual property rights and harm the
Foreign Trade order, the State Council's competent Foreign Trade
authority may take measures that include prohibiting importation of
relevant goods produced or sold by the infringers within a certain
period of time.

Article 30 Where the intellectual property right holder conducts any of
the practices that include preventing the licensee from challenging the
validity of the intellectual property rights in licensing contracts,
coercive package licensing or providing exclusive grantback conditions
in licensing contracts, and thereby harms the Foreign Trade order, the
State Council's competent Foreign Trade authority may take necessary
measures to eliminate such harm.

Article 31 Where other countries or regions failed to accord national
treatment to legal persons, other organizations or individuals from the
People's Republic of China with regard to the protection of intellectual
property rights, or failed to provide full and effective protection with
regard to intellectual property rights for goods, technologies or
services originating from the People's Republic of China, the State
Council's competent Foreign Trade authority may, according to this Law
and other relevant laws or administrative regulations, and in compliance
with the international treaties or agreements the People's Republic of
China concluded or acceded to, take necessary measures in respect of the
trade with that country or region.

**Chapter VI Foreign Trade Order**

Article 32 Monopoly practices carried out in Foreign Trade activities
that violate the relevant\
anti-trust laws or administrative regulations are not allowed.

Monopoly practices carried out in Foreign Trade activities that harm the
fair competition of the market, shall be dealt with according to the
relevant anti-trust laws and administrative regulations.

Where the illegal practices referred to in the above paragraphs exist,
and harm the Foreign Trade order, the State Council's competent Foreign
Trade authority may take necessary measures to eliminate the harm.

Article 33 The practices of unfair competition in Foreign Trade
activities such as selling commodities at unreasonably low prices,
colluding with one another in a bid, false advertising, or commercial
bribery etc. are not allowed.

The practices of unfair competition in Foreign Trade activities shall be
dealt with according to the laws and administrative regulations of
anti-unfair competition.

Where the illegal practices referred to in the above paragraphs harm the
Foreign Trade order, the State Council's competent Foreign Trade
authority may take measures that include prohibiting the import and
export of relevant goods or technologies of that operator to eliminate
the harm.

Article 34 In Foreign Trade activities, the following acts are
prohibited:

\(1\) the forgery or alteration of marks of origin on import and export
goods; the forgery, alteration, purchase or sale of certificates of
origin for import and export goods, import or export licenses,
certificates of quota for import and export, or other kinds of
certificates for import and export;

\(2\) fraudulently obtaining for refunded tax on exports;

\(3\) smuggling;

\(4\) circumventing the authentication, inspection or quarantine
specified by laws or administrative regulations;

\(5\) other activities in violation of the provisions of laws and
administrative regulations.

Article 35 In Foreign Trade activities, the Foreign Trade Operators
shall abide by the requirements of foreign exchange regulations of the
State.

Article 36 The State Council's competent Foreign Trade authority may
publish cases which violate this Law and harm the Foreign Trade order.

**Chapter VII Foreign Trade Investigation**

Article 37 In order to maintain Foreign Trade order, the State Council's
competent Foreign Trade authority may conduct, either by itself or
together with other relevant State Council authorities, investigation
with regard to the following matters in accordance with the provisions
of laws and administrative regulations:

\(1\) impact of the import and export of goods, the import and export of
technologies or international trade in services on the domestic
industries and their competitiveness;

\(2\) trade barriers of relevant countries or regions;

\(3\) matters that require investigation in order to determine whether
trade remedy measures as\
anti-dumping, countervailing, or safeguard measures etc. should be
taken;

\(4\) acts circumventing Foreign Trade remedies;

\(5\) matters concerning the security interests of the State with
respect to Foreign Trade;

\(6\) matters that require investigation for implementing Article 7,
paragraph 2 of Article 29, Article 30, Article 31, paragraph 3 of
Article 32, paragraph 3 of Article 33 of this Law;

\(7\) other matters affecting the Foreign Trade order that require
investigation.

Article 38 An announcement will be published by the State Council's
competent Foreign Trade authority to initiate any Foreign Trade
investigation.

A Foreign Trade investigation may be conducted by such means as written
questionnaire, hearing,\
on-site investigation, investigation through entrustment, etc.

The State Council's competent Foreign Trade authority shall give report
or make decisions, and publish announcements in accordance with the
investigation results.

Article 39 Relevant units and individuals shall provide cooperation and
assistance during the Foreign Trade investigation.

When conducting Foreign Trade investigations, the State Council's
competent Foreign Trade authority, other relevant State Council
authorities and their staffs shall be obliged to keep confidentiality of
all the State secrets and business secrets which they have learned.

**Chapter VIII Foreign Trade Remedies**

Article 40 The State may take appropriate Foreign Trade remedies in
accordance with the results of Foreign Trade investigations.

Article 41 Where products from other countries or regions are dumped
into China's market at less than normal values, causing or threatening
to cause material injury to the established domestic industries, or
materially impeding the establishment of the domestic industries, the
State may take anti-dumping measures to eliminate or mitigate such
injury, threat of injury or impediment.

Article 42 Where products of other countries or regions are exported to
a third country at less than normal values, causing or threatening to
cause material injury to the established domestic industries, or
materially impeding the establishment of the domestic industries, the
State Council's competent Foreign Trade authority may, upon applications
by the domestic industries, negotiate with the government of the third
country, and require the latter to take appropriate measures.

Article 43 Where the imports are benefited directly or indirectly from
specific subsidies granted in any kind by the exporting countries or
regions, causing or threatening to cause material injury to the
established domestic industries, or materially impeding the
establishment of the domestic industries, the State may take
countervailing measures to eliminate or mitigate such injury, threat of
injury or impediment.

Article 44 Where the imports are increased in such quantities that cause
or threaten to cause serious injury to the domestic industries producing
like or directly competitive products, the State may take necessary
safeguard measures to eliminate or mitigate such injury or threat of
injury, and provide necessary support to the domestic industries.

Article 45 Where services provided by the service providers of other
countries or regions to China are increased in such quantities that
cause or threaten to cause injury to the domestic industries providing
like or directly competitive services, the State may take necessary
remedies to eliminate or mitigate that injury or threat of injury.

Article 46 Where an import restriction by a third country results in a
dramatic increase of certain products entering China's market, causing
or threatening to cause injury to the established domestic industries,
or impeding the establishment of the domestic industries, the State may
take necessary remedies to restrict the import of such products.

Article 47 Where a country or region that has concluded economic and
trade treaties or agreements with the People's Republic of China or has
acceded to such treaties or agreements together with the People's
Republic of China fails to abide by the provisions of such treaties or
agreements, causing the loss of or damage to the rights and interests of
the People's Republic of China under such treaties or agreements, or
impeding the realization of the objectives of such treaties or
agreements, the Government of the People's Republic of China shall have
the right to require the government of the relevant country or region to
take appropriate compensatory measures, and may in accordance with
relevant treaties or agreements, suspend or terminate the performance of
its relevant obligations under such treaties or agreements.

Article 48 The State Council's competent Foreign Trade authority will
proceed with bilateral or multilateral consultations, negotiations and
settlement of disputes regarding Foreign Trade in accordance with this
Law and other relevant laws and regulations.

Article 49 The State Council's competent Foreign Trade authority and
other relevant State Council's authorities shall establish early warning
and emergency response mechanism for the import and export of goods, the
import and export of technologies and international trade in services,
so as to cope with any contingencies and unusual circumstances that may
occur in the course of Foreign Trade and thus maintain the security of
national economy.

Article 50 The State may take necessary anti-circumvention measures
against the circumvention of the Foreign Trade remedies provided by this
Law.

**Chapter IX Promotion of Foreign Trade**

Article 51 The State formulates Foreign Trade development strategies,
establishes and improves the mechanism for promotion of Foreign Trade.

Article 52 Based on the requirements for the development of Foreign
Trade, the State will establish and improve financial institutions for
Foreign Trade, and establish Foreign Trade development funds and risk
funds.

Article 53 The State will develop Foreign Trade by ways of import and
export credits, export credit insurance, export tax refunds and other
promotion measures.

Article 54 The State will establish a public Foreign Trade information
service system to provide information services to Foreign Trade
Operators and others of the public.

Article 55 The State will take measures to encourage Foreign Trade
Operators to explore international markets and to develop Foreign Trade
through various means such as investing abroad, contracting overseas
projects and conducting labour cooperation in foreign countries etc.

Article 56 Foreign Trade Operators may establish and join relevant
associations or chambers of commerce in accordance with the law.

Such associations or chambers of commerce shall observe the laws and
administrative regulations in accordance with its articles of
association, provide its members with such services as production,
marketing, information and training, perform the function of harmonizing
and self-discipline, submit applications for Foreign Trade remedies in
accordance with the law, maintain the interests of its members and
industry, convey to relevant government authorities any proposals raised
by its members on Foreign Trade, and conduct Foreign Trade promotion
activities.

Article 57 The international trade promotion organizations of China
shall, in accordance with its articles of association, develop foreign
contact, sponsor exhibitions, provide information and advisory services
and engage in other Foreign Trade promotion activities.

Article 58 The State will support and promote the development of Foreign
Trade conducted by small and medium-sized enterprises.

Article 59 The State will support and promote the development of Foreign
Trade in national autonomous regions and economically underdeveloped
areas.

**Chapter X Legal Liability**

Article 60 Where the provision under Article 11 of this Law is violated
by conducting importation or exportation of goods which are subject to
the state trading administration without authorization, the State
Council's competent Foreign Trade authority or the State Council's other
relevant authorities may impose a fine of not more than RMB 50,000;
where the circumstances are serious, the aforesaid authorities may,
within three years from the date on which the administrative penalty
decision takes effect, refuse to accept the application of the violator
to engage in the import and export of goods subject to the state trading
administration, or revoke the authorization granted such party to engage
in the import and export of other goods subject to the state trading
administration.

Article 61 Those who import or export goods that are prohibited for
import or export, or import or export goods that are restricted for
import or export without permission, shall be disposed of or punished by
the Customs Administration in accordance with the provisions in relevant
laws or administrative regulations; where criminal offences are
constituted, criminal liability shall be prosecuted in accordance with
the law.

Those who import or export technologies that are prohibited for import
or export, or import or export technologies that are restricted for
import or export without permission, shall be disposed of or punished in
accordance with the provisions in relevant laws or administrative
regulations; where there are no such provisions in relevant laws or
administrative regulations, the State Council's competent Foreign Trade
authority will order correction, confiscate unlawful income, and impose
a fine of more than one time and less than five times of the unlawful
income; where there is no unlawful income or the unlawful income is less
than RMB10,000, a fine of more than RMB10,000 and less than RMB50,000
shall be imposed; where criminal offences are constituted, criminal
liability shall be prosecuted in accordance with the law.

From the date on which the administrative penalty decision takes effect
or the criminal prosecution judgment takes effect as stipulated in the
two aforesaid paragraphs, the State Council's competent Foreign Trade
authority or other relevant State Council authorities may, for a period
of three years, refuse the application of the violator for any importing
or exporting quota or license, or prohibit the violator from conducting
any importation and exportation of relevant goods or technologies for a
period of more than one year and less than three years.

Article 62 Where any international trade in services that is prohibited
is engaged in, or where any international trade in services that is
restricted is engaged in without permission, punishment shall be imposed
in accordance with relevant laws or administrative regulations; where
there are no such provisions in the relevant laws or administrative
regulations, the State Council's competent Foreign Trade authority will
order correction, confiscate unlawful income, and impose a fine of more
than one time and less than five times of the unlawful income; where
there is no unlawful income or the unlawful income is less than
RMB10,000, a fine of more than RMB10,000 and less than RMB50,000 shall
be imposed; where criminal offences are constituted, criminal liability
shall be prosecuted in accordance with the law.

The State Council's competent Foreign Trade authority may, from the date
on which the administrative penalty decision takes effect or the
criminal prosecution judgment takes effect, prohibit the violator from
conducting any relevant international trade in services for a period of
more than one year and less than three years.

Article 63 Where the provisions under Article 34 of this Law are
violated, punishment shall be imposed in accordance with the provisions
in relevant laws and administrative regulations; where criminal offences
are constituted, criminal liability shall be prosecuted in accordance
with the law.

The State Council's competent Foreign Trade authority may, from the date
on which the administrative penalty decision takes effect or the
criminal prosecution judgment takes effect, prohibit the violator from
conducting any relevant foreign trade activities for a period of more
than one year and less than three years.

Article 64 Where a violator is prohibited from conducting any relevant
Foreign Trade activities in accordance with the provisions under
Articles from 61 to 63, during the prohibition period, the Customs
Administration will not carry out any customs declaration and inspection
or release procedures for the relevant importing or exporting goods of
such violator based on the prohibition decision made by the State
Council's competent Foreign Trade authority, and the foreign exchange
authorities or the designated banks of foreign exchange shall not
proceed with any relevant settlement or sale of foreign exchange.

Article 65 If the working staff of the authorities in charge of
administration of Foreign Trade according to this Law is derelict in its
duty, conducts malpractice or abuses of its authority, where a criminal
offence is constituted, criminal liability shall be prosecuted pursuant
to the law; where a criminal offence is not constituted, administrative
penalty sanctions shall be imposed in accordance with the law.

If the working staff of the authorities in charge of administration of
Foreign Trade according to this Law extorts property from others using
the privileges of his position or illegally accepts others property to
seek advantages for them in return, where a criminal offence is
constituted, criminal liability shall be prosecuted pursuant to the law;
where a criminal offence is not constituted, administrative penalty
sanctions shall be imposed in accordance with the law.

Article 66 Any party engaged in Foreign Trade activities who is not
satisfied with the specific administrative action taken by the
authorities in charge of administration of Foreign Trade according to
this Law, may apply for an administrative review pursuant to the law or
bring an administrative suit before the people's court.

**Chapter XI Supplementary Provisions**

Article 67 Where laws or administrative regulations provide otherwise
concerning the administration of Foreign Trade of military substances or
fissionable or fusionable materials or materials from which such
materials are derived, or concerning the administration of import or
export of any cultural products, such laws or administration regulations
shall prevail.

Article 68 The State will adopt flexible measures, grant preferential
treatment and facilities to the trade between its border regions and the
border regions of adjacent countries as well as to the trade between
border residents. Specific measures shall be formulated by the State
Council.

Article 69 This Law shall not apply in the separate customs territories
of the People's Republic of China.

Article 70 This Law shall enter into effect on 1 July 2004.

**\_\_\_\_\_\_\_\_\_\_**