Required Report - public distribution

**Date:** 9/11/2008

**GAIN Report Number:** CH8083

CH0000

**China, Peoples Republic of**

**FAIRS Subject Report**

**Decree on Trade of Genetic Resources**

**2008**

**Approved by:**

![](media/image1.wmf)Mark Petry

AgBeijing

**Prepared by:**

Frederick Thomas and Josh O\'Rear

**Report Highlights:**

On August 20, 2008, the Government of China approved State Council
Decree No. 533, which details the procedures for Chinese companies
intending to import, export, or conduct joint research using "animal and
poultry genetic resources." This rule will take effect on October 1,
2008.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Beijing \[CH1\]

\[CH\]

**Executive Summary**:

On August 20, 2008, the Government of China, approved new State Council
Decree No. 533, a piece of legislation detailing the procedures for
Chinese companies intending to import, export, or jointly research
"animal and poultry genetic resources" (as defined within the
legislation). This decree details the roles of the Animal Husbandry and
Veterinary Service Administration at both the provincial and State
Council level. It also lists procedures that companies or institutions
should go through and punishments for non-compliance.

This measure has not been submitted to the World Trade Organization. It
will have some trade impact.

**Begin Translation**

**State Council Decree**

**No. 533**

**The Measures for the Approval of Entry and Exit of Domestic Animal and
Poultry Genetic Resources and the Cooperative Utilization with Foreign
Entities**

The rules were passed in the State Council Executive meeting on August
20 and will take effect on October 1, 2008.

Premier Wen Jiabao

August 28, 2008

Article 1:

In order to strengthen the management of the entry and exit of animal
and poultry genetic resources, increase cooperative utilization with
foreign entities, protect and optimally utilize animal and poultry
genetic resources, prevent the drain of genetic resources, and
facilitate the sustainable development of animal husbandry, according to
the Husbandry Law of People Republic of China (HLPRC), this legislation
is established and promulgated.

Article 2:

When importing or exporting animal and poultry genetic resources, which
are found on the list of protected animal and poultry genetic resources
in China (or referred to as being listed as "protected"), to or from
foreign countries, all activities should comply with HLPRC and meet the
regulations of this legislation.

Article 3:

The term "animal and poultry", in this legislation, means any animal or
poultry listed in the publicized animal and poultry genetic resources
specified in HLPRC Article 11.

The term "animal and poultry genetic resources" in this legislation
means any animal or poultry and their derived ova (eggs), embryos, sperm
(semen), and other genetic materials.

Article 4:

When introducing animal and poultry genetic resources from foreign
countries, the conditions below should be complied with the following
stipulations:

4.1 Purpose for introduction is clear, and the utilization is rational;

4.2 In concert with China's plan for the protection and utilization of
animal and poultry; genetic resources;

4.3 Be introduced from a non-epidemic area; and

4.4 Pose no risk to domestic animal and poultry genetic resources or the
environment by complying with the regulations regarding the quarantine
of animals and plants, entering or exiting the country, and of
agricultural transgenic bio-safety.

Article 5:

Domestic entities planning to introduce animal and poultry genetic
resources should apply to the local Administration of Animal Husbandry
and Veterinary Service at the provincial or autonomous region level or a
city directly under central government and submit a contract signed by
the exporter or a donation agreement signed by the donor.

When introducing animal and poultry genetic resources for breeding
purposes, the documentation below is required:

5.1 License for breeding animals, poultry production, and trade;

5.2 Animal pedigree or poultry generation certification issued by the
competent authority of the exporting country or region; and

5.3 When importing animal and poultry genetics that are introduced for
the first time, submit the origin of the breeding animal and poultry
genetic resources, distribution, breeding process, ecological
attributes, production performance, the major genetic defects and
special diseases in the genetic population.

Article 6:

When exporting animal and poultry genetic resources, which are found on
the list of protected animal and poultry genetic resources, the
conditions below should be met:

6.1 Utilization purposes are clear;

6.2 In concert with China's plan for the protection and utilization of
animal and poultry genetic resources;

6.3 Pose no risks to domestic animal and poultry production or product
exports; and

6.4 Meet the rationality of the "national benefit sharing plan".

Article 7:

When exporting animal and poultry genetic resources, which are found on
the list of protected animal and poultry genetic resources of China,
domestic entities should apply to the local Administration of Animal
Husbandry and Veterinary Service at the provincial or autonomous region
level or city directly under the central government and the
documentation below should be submitted:

7.1 A contract signed by the importers or a donation agreement signed by
donation recipients; and

7.2 Definition of how activity will comply with the "national benefit
sharing plan".

Article 8:

When utilizing animal and poultry genetic resources, which are found on
the list of protected animal and poultry genetic resources (thereby
listed as "protected") in China, with cooperative foreign entities or
individuals for joint research purpose, the following conditions should
be met:

8.1 The research purpose, cooperation range, and period are clearly
stated;

8.2 In concert with China's plan for the protection and utilization of
animal and poultry genetic resources;

8.3 Clearly defined rights for cooperating parties regarding
intellectual property;

8.4 Pose no risks to domestic animal and poultry genetics or the
environment; and

8.5 Meet the rationality of the "national benefit sharing plan".

Domestic entities utilizing animal and poultry genetic resources, which
are found on the list of protected animal and poultry genetic resources
in China, with cooperative foreign entities or individuals for the
purpose of joint research, should be legal entities classified as:
Chinese educational institutions, research organizations or Chinese
single-invested corporations.

Article 9:

Domestic entities planning to utilize animal and poultry genetic
resources, which are listed as "protected" in China, with cooperative
foreign entities or individuals for the purpose of joint research,
should apply to the local Administration of Animal Husbandry and
Veterinary Service of that province or autonomous region or city
directly under the central government and the documentation below should
be submitted:

9.1 The research project practicability report;

9.2 Joint research contract; and

9.3 Define how activities comply with the "national benefit sharing
plan" and be signed by cooperative entities or individuals.

Article 10:

It is prohibited to export to foreign countries or utilize animal and
poultry genetic resources that exist uniquely in China, which are newly
indentified but not yet characterized by the National Animal and Poultry
Genetic Resources Committee (NAPGRC), or those prohibited by the Animal
Husbandry and Veterinary Service Administration of the State Council in
China with cooperative foreign entities or individuals for the purpose
of joint research.

Article 11:

Upon the receiving application documents for entry, exit, or joint
research, the local Administration of Animal Husbandry and Veterinary
Service at the provincial or autonomous regions level or a city directly
under central government should complete the evaluation process within
20 working days. The evaluation and documents should then be submitted
to the Animal Husbandry and Veterinary Service Administration of the
State Council for further review and approval.

Article 12:

Upon receiving the evaluation and documents submitted by the local
Administration of Animal Husbandry and Veterinary Service at the
provincial or autonomous region level, or a city directly under the
central government, the Animal Husbandry and Veterinary Service
Administration of the State Council, should issue a permit for those
complying with Article 4, 6, and 8 within 20 working days. If the
application is declined the applicants should be notified in written
form with explanations.

When exporting or cooperatively working with a foreign cooperator, with
animal and poultry genetic resources listed as "protected" or importing
animal and poultry genetics that are being introduced for the first
time, the Animal Husbandry and Veterinary Service Administration of the
State Council, upon receiving the evaluation and documents submitted by
the local Administration of Animal Husbandry and Veterinary Service of
at the provincial or autonomous region level, or city directly under the
central government, should provide all the materials to National Animal
and Poultry Genetic Resources Committee(NAPGRC) for evaluation and
review within 3 working days. There is no time limit for the evaluation
by the NAPGRC.

Article 13:

If a final decision is not reached within 20 working days, and after
being approved by the section supervisor, the Animal Husbandry and
Veterinary Service Administration of the State Council can extend the
deadline another 10 working days, but it is required to notify the
applicant of the reasons for the extension.

Article 14:

A permit for import or export is valid for 6 months, if an extension is
required, the applicants should apply to the responsible agency within
10 working days before it expires, and the extension should not exceed 3
months.

Article 15:

When importing or exporting animal and poultry genetic resources, which
are listed as "protected", the entities should go through the proper
entry and exit quarantine procedures with the permit form. Customs will
release the products after the Entry and Exit Quarantine Administration
(CIQ) issues an "entry and exit goods custom clearance form". Within 10
working days, after the goods are released from customs, the entities
should report the amount of animal and poultry genetic material imported
or exported to the Animal Husbandry and Veterinary Service
Administration of the State Council. For their documentation and for
Environmental Protection Agency of the State Council, the Animal
Husbandry and Veterinary Service Administration of the State Council
should keep regular copies of the information.

Article 16:

During the joint research's cooperation period, if it is required to
modify the research's purpose, scope, or cooperation period, or mend an
IPR issue and/ or "research result mutual benefit agreement" and/or
"national benefit sharing plan", the domestic entities should re-apply
for approval according to the procedures described in this legislation.

Article 17:

The local Administration of Animal Husbandry and Veterinary service at
the provincial or autonomous region level or city directly under the
central government should follow up on imported animal and poultry
genetic resources, organize experts to test and evaluate the production
performance, monitor herd (flock) health, adaptability, and the relevant
impacts on the environment and on local animal and poultry genetic
resources. The

Animal Husbandry and Veterinary Service Administration of the State
Council should report the results of these findings.

If imported animal and poultry genetic resources pose a risk to the
environment or local animal and poultry genetic resources, the Animal
Husbandry and Veterinary Service Administration of the State Council
should coordinate with relevant agencies to make the appropriate safety
control measures.

Article 18:

Domestic entities who cooperate with foreign entities or individuals to
utilize animal and poultry genetic resources, which are listed as
"protected" in China, for the purpose of joint research, should report
the status of the research to the local Administration of Animal
Husbandry and Veterinary Service at the provincial or autonomous region
level or city directly under the central government, each year before
December 31 for review and comments on the research. The local authority
will then report to the Animal Husbandry and Veterinary Service
Administration of the State Council for further documentation.

Article 19:

Those who have an interest-relationship with relevant entities
(importers, exporters, domestic research entities, foreign research
entities or individuals) should not be involved in or participate in the
application evaluation, approval, testing, or evaluation of imported
animal and poultry genetic resources.

Article 20:

China's domestic animal and poultry genetic resources information,
including major animal and poultry genetic lines and specific
geographical genetic resource data, documentation materials, or samples
should not be exported or donated to foreign entities or individuals
without the approval of the Animal Husbandry and Veterinary Service
Administration of the State Council.

Article 21:

Government employees will be penalized for misconduct committed during
approval or evaluation processes; once it is determined a crime has been
committed and the offender will be punished by law.

Article 22:

Experts involved in the evaluation, review, and approval, according to
this legislation, will be penalized for misconduct, for example: taking
bribes, seeking personal interest, or providing false comments.

Article 23:

If entities hide information or provide false materials while importing,
exporting, or utilizing animal and poultry genetic resources, which are
found on the list of protected animal and poultry genetic resources in
China, from foreign countries, a warning will be issued by the local
Administration of Animal Husbandry and Veterinary Service at the
provincial or autonomous region level, or a city directly under the
central government, and applications from this entity will be not be
accepted for 3 consecutive years.

Article 24:

If entities use illegal means, such as bribery or falsifying documents,
to obtain a permit while importing, exporting, or utilizing animal and
poultry genetic resources, which are found on the list of protected
animal and poultry genetic resources in China, from foreign countries,
the Animal Husbandry and Veterinary Service Administration of the State
Council will revoke the permit, issue a fine ranging from RMB 10,000 to
50,000 [^1], and confiscate products and illegal income. Future
applications from this entity will not be accepted for consecutive 10
years.

Article 25:

If, without approval, entities or individuals import or cooperatively
utilize animal and poultry genetic resources listed as "protected" or
newly identified but not yet characterized by NAPGRC in China with
foreign cooperators the offenders will be punished by the Husbandry Law
of PRC.

Article 26:

If, without approval, entities or individuals export animal and poultry
genetic resources which are listed in the list as "protected", they will
be punished by the Custom Law of PRC. Customs will transfer the detained
products to the local Animal Husbandry and Veterinary Service
Administration.

Article 27:

When exporting or utilizing animal and poultry genetic resources, which
are found on the list of protected animal and poultry genetic resources
in China, with the cooperative foreign entities or individuals for joint
research purpose, should entities act against the regulations of
national confidentiality, legal action will be taken based on the
regulations in Confidentiality law of PRC.

Article 28 This rule will take effect on October 1, 2008.

**End translation**

[^1]: ^^ US\$1,461 to US\$7,305 (conversation rate = 6.84 on September
    11, 2008)