WORLD TRADE  
ORGANIZATION  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 Committee on Subsidies and Countervailing Measures Committee on Safeguards Original:   English 
 
 
 
NOTIFICATIONS OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS 
 
PEOPLE'S REPUBLIC OF CHINA 
 
Supplement
 
   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. 
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Decree of the President of  
The People’s Republic of China 
(No.15) 
 
 The Foreign Trade Law of the People’s Repub lic of China, adopted as amended at the 
Eighth Session of the Standing Committee of the tenth National People’s Co ngress 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 
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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 br oaden the opening to the outside world, develop the 
Foreign Trade, maintain the Foreign Trade order, pr otect 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, m eans 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 aut hority 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 th e principles of equality and mutual benefit, 
promote and develop trade relations with othe r 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 re spect of the Foreign Trade, in accordance with 
international treaties or agreements to which the Pe ople’s Republic of China is a contracting party or 
acceding party, grants the other contracting par ties 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-favour ed-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, Forei gn Trade Operator means a legal person, other 
organization or an individual that has carried out industrial and commercia l 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 rele vant 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 Forei gn Trade authority or the 
institutions delegated by it, unless laws, administrativ e regulations or provisions of the State Council’s G/ADP/N/1/CHN/2/Suppl.4 
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  competent Foreign Trade authority specify that regi stration 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.  Sp ecific 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 st ate 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 admi nistration and catalogue of authorized enterprises 
will be formulated, adjusted and published by th e 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 co mpliance with the provisions issued by the State 
Council’s competent Foreign Trade authority or othe r relevant State Council authorities in accordance 
with laws, submit documents and in formation related to its Foreign Trade activities to the relevant 
authorities.  The relevant authorities shall keep c onfidentiality 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 technolog ies to be imported and exported freely, unless 
otherwise provided by laws a nd 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 freel y, and publish the catalogue thereof. 
 
When the consignor or consignee subject to au tomatic licensing submits an application for an 
automatic license prior to carrying the Customs d eclaration procedures for those goods imported or 
exported under the automatic licensing, the State C ouncil’s competent Foreign Trade authority or an 
institution it delegates, shall grant the license;  wh ere the automatic licensing procedure is not carried 
out, the Customs Administration shall not allow clearance of the goods. 
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  When importing or exporting technologies that be long to free import and export, the contracts 
concerned shall be registered with the State C ouncil’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 im port 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 expor t 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 orde r to maintain the State’s international financial 
position and the balance of international payments;  (10)  there is a necessity to restrict or prohi bit other imports or exports in accordance with the 
provisions of laws and administrative regulations; 
 
(11)  there is a necessity to restrict or prohi bit other imports or exports in accordance with the 
provisions of international treaties or agreements c oncluded 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 re lating to fissionable and fusionable materials or the materials from 
which they are derived, and with respect to th e import and export of arms, ammunition or other 
military materials.   The State may take any necessary measure on the im port 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 comp etent Foreign Trade authority, together with other relevant State 
Council authorities, in accordance with the provision s 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 
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   With the approval of the State Council and within th e 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 lic enses 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 expor ted only when permitted by the State Council’s competent Foreign 
Trade authority, either independently or in collabor ation with other relevant State Council authorities. 
 
The State may impose tariff quotas on certain imported goods.  Article 20  Import and export quotas and tariff q uotas 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 prin ciples 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 merc handise 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 a nd 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 agreem ents 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 se rvices 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 prohib ition 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; 
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  (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 orde r 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 measu re to safeguard national security against the 
international trade in services relating to military a ffairs, fissionable and fusionable materials or the 
materials from which they are derived.  The State may take any necessary measure against intern ational 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 provis ions of Article 26, 27 of this Law and other 
relevant laws and administrative regulations, formul ates, 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-relate d intellectual property rights according to relevant 
laws and administrative regulations on intellectual property rights.  
Where imported goods infringe inte llectual 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 ho lder 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 providi ng exclusive grantback conditions in licensing 
contracts, and thereby harms the Foreign Trade or der, 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 Repub lic 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 or iginating 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 concl uded or acceded to, take necessary m easures in respect of the trade 
with that country or region.  
Chapter VI Foreign Trade Order 
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  Article 32  Monopoly practices carried out in Fore ign 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 releva nt anti-trust laws and administrative regulations.  
 Where the illegal practices referred  to in the above paragraphs ex ist, and harm the Foreign Trade 
order, the State Council’s competent Foreign Tr ade 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 anot her in a bid, false advertising, or commercial 
bribery etc. are not allowed. 
 
The practices of unfair competition in Foreign Trad e activities shall be dealt with according to the 
laws and administrative regulations of anti-unfair competition.  Where the illegal practices referred to in the a bove 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 technol ogies 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 ot her 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 provi sions 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.  G/ADP/N/1/CHN/2/Suppl.4 
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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 togeth er with other relevant State Council authorities, 
investigation with regard to the following matte rs 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 safegua rd 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 impl ementing Article 7, para graph 2 of Article 29, 
Article 30, Article 31, paragra ph 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 Fo reign Trade investigation. 
 A Foreign Trade investigation may be conducted by such means as written qu estionnaire, hearing,  
on-site investigation, investiga tion through entrustment, etc. 
 
The State Council’s competent Foreign Trade aut hority 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 assi stance during the Foreign 
Trade investigation. 
 
When conducting Foreign Trade investigations , the State Council’s competent Foreign Trade 
authority, other relevant State Council authoriti es 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 regi ons are exported to a third country at less than 
normal values, causing or threatening to cause materi al injury to the established domestic industries, G/ADP/N/1/CHN/2/Suppl.4 
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  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 impe ding the establishment of the domestic industries, 
the State may take countervailing measures to eliminat e 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 threat ening 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 c oncluded 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 provi sions of such treaties or agreements, causing the 
loss of or damage to the rights and interests of th e 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 ta ke appropriate compensatory measures, and may in accordance with 
relevant treaties or agreements, suspend or termin ate 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 settleme nt 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 em ergency response mechanism for the import and 
export of goods, the import and export of technolo gies and international trade in services, so as to 
cope with any contingencies and unusual circumstan ces 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-circ umvention measures against the circumvention of 
the Foreign Trade remedies provided by this Law. 
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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 devel opment 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 e xport 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 en courage Foreign Trade Operators to explore 
international markets and to deve lop 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 a nd join relevant associations or chambers of 
commerce in accordance with the law.  Such associations or chambers of commerce shall ob serve the laws and administrative regulations in 
accordance with its articles of a ssociation, provide its members w ith such services as production, 
marketing, information and training, perform the f unction of harmonizing and self-discipline, submit 
applications for Foreign Trade remedies in accordan ce with the law, maintain the interests of its 
members and industry, convey to relevant govern ment authorities any proposals raised by its 
members on Foreign Trade, and conduct Foreign Trade promotion activities.  Article 57  The international trade promotion organi zations of China shall, in accordance with its 
articles of association, develop foreign contact, s ponsor 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 th e development of Foreign Trade in national 
autonomous regions and economi cally underdeveloped areas. 
 
Chapter X Legal Liability 
 
Article 60  Where the provision under Article 11 of th is 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 viol ator 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 ar e prohibited for import or export, or import or 
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  punished by the Customs Administra tion in accordance with the provisions in relevant laws or 
administrative regulations;  where criminal offe nces are constituted, criminal liability shall be 
prosecuted in accordance with the law. 
 
Those who import or export technologies that are pr ohibited 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 admi nistrative regulations, the State Council’s competent 
Foreign Trade authority will order correction, conf iscate unlawful income, and impose a fine of more 
than one time and less than five times of the unl awful 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 offe nces 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 af oresaid 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 expor tation 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 admi nistrative regulations;  where there are no such 
provisions in the relevant laws or administrativ e regulations, the State Council’s competent Foreign 
Trade authority will order correction, confiscate unlaw ful income, and impose a fine of more than one 
time and less than five times of the unlawful inco me;  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 cons tituted, 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 internati onal 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 releva nt laws and administrative regulations;  where 
criminal offences are constituted, criminal liabilit y 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 tr ade 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 Fore ign Trade authority, and the foreign exchange 
authorities or the designated banks of foreign excha nge shall not proceed with  any relevant settlement 
or sale of foreign exchange.  G/ADP/N/1/CHN/2/Suppl.4 
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   Article 65  If the working staff of the authoriti es 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 privil eges of his position or illegally accepts others 
property to seek advantages for them in return, wh ere 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 regulati ons 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 ad ministration of import or export of any cultural 
products, such laws or administra tion regulations shall prevail. 
 
Article 68  The State will adopt flexible measures,  grant preferential treatment and facilities to the 
trade between its border regions a nd 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 separ ate customs territories of the People’s Republic of 
China. 
 
Article 70  This Law shall enter into effect on 1 July 2004.  
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