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Chapter I General Provisions
Article 1 These Regulations are formulated for the purpose of strengthening the unified administration of arms export to maintain the normal order of arms export.
Article 2 "Arms export" referred to in these Regulations means the trading export of equipment, special production facilities and other materials, technology and related services which are used for military purposes.
Article 3 The State Commission for Administration of Arms Trade of the People's Republic of China (hereinafter referred to as the State Commission for Administration of Arms Trade) shall, under the leadership of the State Council and the Central Military Commission, be in charge of the work of arms export throughout the country.
The State Administration of Arms Trade of the People' s Republic of China (hereinafter referred to as the State Administration of Arms Trade) shall be the executive organ of the State Commission for Administration of Arms Trade and shall exercise supervision over and administration of the nationwide arms export.
Article 4 The State shall institute a unified administration system for the export of arms, forbid any act of exporting arms which endangers the national interests and security and maintain the normal order of arms export in accordance with the law.
Article 5 The following principles shall be observed in exporting arms.
(l) conduciveness to the capability for just self-defense of the recipient country;
(2) no injury to the peace, security and stability of the region concerned and the world as a whole;
(3) no interference in the internal affairs of the recipient country.
Article 6 Where an international treaty concluded or acceded to by the People' s Republic of China contains provisions different from these Regulations, the provisions of the international treaty shall prevail, except for the provisions on which reservations are made by the People' s Republic of China.
Chapter II Arms Trading Companies
Article 7 "Arms trading companies'' referred to in these Regulations mean the enterprises as legal persons which have obtained in accordance with the law the business operations right for arms export and are engaged in business activities of arms export within the approved scope of business.
Article 8 The business operations right for arms export shall be examined and approved by the State Commission for Administration of Arms Trade. Specific measures shall be formulated by the State Commission for Administration of Arms Trade.
Article 9 An arms trading company shall, in accordance with the law, enjoy full autonomy in its management and assume sole responsibility for its profits or losses.
Article 10 An arms trading company shall honor contracts, guarantee goods quality and improve post-sale services.
Article 11 An arms trading company shall, in accordance with the provisions of the State Commission for Administration of Arms Trade, truthfully present to the departments concerned the documents and data pertinent to its business activities of arms export. The departments concerned shall keep business secrets for the arms trading company and protect its lawful rights and interests.
Article 12 An arms trading company may entrust an authorized procuration enterprise for export transportation of arms to act as an agent for export transportation of arms and related business matters. Specific measures shall be formulated by the State Commission for Administration of Arms Trade.
Chapter III Administration of Arms Export
Article 13 The State shall implement a licensing system for arms export. Items and contracts of arms export shall, in accordance with the provisions of these Regulations, be submitted by form of application for examination and approval. Arms shall be exported on the strength of a license for arms export.
Article14 Items of arms export shall be examined and approved by the State Administration of Arms Trade or by the State Administration of Arms Trade jointly with the relevant departments under the State Council and the Central Military Commission.
Article 15 An arms trading company may, when the items of arms export are approved, conclude contracts of arms export with the outside world. After a contract is concluded, it shall file an application to the State Administration of Arms Trade for examination and approval; the State Administration of Arms Trade shall, within 15 days of receiving the application, make a decision to approve or not to approve the contract. A contract of arms export shall be formed only after it is approved.
An arms trading company shall, when filing an application to the State Administration of Arms Trade for approval on its contract of arms export, attach the valid certification documents of the recipient country.
Article 16 Important items and contracts of arms export shall be examined by the State Commission for Administration of Arms Trade and be submitted to the State Council and the Central Military Commission for approval.
Article 17 An arms trading company shall, before exporting arms, apply to the State Administration of Arms Trade for the license of arms export by virtue of the approval document for the contract of arms export, when the requirements are met for a contract of arms export, the State Administration of Arms Trade shall, within 5 days of receiving the application, issue the license for arms export.
The Customs shall accept declarations according to the license for arms export, and examine and give clearance in accordance with the relevant provisions of the State.
Article 18 Measures for the examination and approval of items and contracts of arms export and methods for the issue of licenses for arms export shall be prescribed by the State Commission for Administration of Arms Trade.
Article 19 For arms export, the State Administration of Arms Trade shall, jointly with the departments concerned, issue the notice of arms export. The departments concerned and the local people's governments shall, upon receiving the notice of arms export, conscientiously perform their functions and responsibilities according to the relevant provisions of the State in order to ensure safe, speedy and accurate export of arms.
Chapter IV Order of Arms Export
Article 20 No unit or organization which has not obtained the business operations right for arms export shall be engaged in any business activity of arms export. The State shall forbid any individual to engage in any business activity of arms export.
Article 21 An arms trading company shall, in its business activities of arms export, abide by the provisions of the laws and administrative rules and regulations and maintain the normal order of arms export.
Article 22 An arms trading company shall not commit any of the following acts in its business activities of arms export:
(1) impairing the national security or social and public interests;
(2) pushing out any other competitor by means of unfair competition ;
(3) infringing upon the intellectual property rights protected by the laws of the People' s Republic of China;
(4) counterfeiting, altering, obtaining by fraud or illegally transferring any document or certificate such as the approval document for items of arms export , the approval document for a contract , the license and the valid certification document of the recipient country;
(5) overstepping the approved scope of business; or
(6) any other act violating the provisions of the laws and administrative rules and regulations.
Article 23 The State Administration of Arms Trade may, when it deems necessary or at the request of an arms trading company, deal with any act which obstructs the normal order of arms export.
Chapter V Legal Liability
Article 24 Any arms trading company which violates the provisions in Article 11 of these Regulations shall be ordered by the State Administration of Arms Trade to correct its mistakes within a definite period of time and be given a warning; if its mistakes are not corrected within the definite time, the State Administration of Arms Trade shall report to the State Commission for administration of Arms Trade for of its business operations right for arms export.
Article 25 Any arms trading company which violates the provisions in Articles 21 and 22 of these Regulations shall be punished by the relevant competent departments of the State in accordance with the provisions of the relevant laws and administrative rules and regulations, and the State Administration of Arms Trade may report to the State Commission for Administration of Arms Trade for revokation of its business operations right for arms export.
Article 26 Illegal activities in violation of the provisions in Article 20 of these Regulations shall be banned by the State Administration of Arms Trade and punishments shall be given by the relevant competent departments of the State in accordance with the provisions of the relevant laws and administrative rules and regulations.
Article 27 Any violation of the provisions of these Regulations, if constituting a crime, shall be investigated for criminal liability according to law.
Article 28 If an arms trading company refuses to accept a punishment decision on revoking its business operations right for arms export, it may file an application for reconsideration to the State Commission for Administration of Arms Trade within 15 days of receiving the punishment notice. The State Commission for Administration of has Trade shall make a reconsideration decision within 15 days of receiving the application for reconsideration and this reconsideration decision shall be a final decision.
Article 29 Any functionary engaged in administration of arms trade who neglects his duty, engages in malpractices for personnal interests, abuses his power or accepts or extorts money or property from other persons by taking advantage of his office shall be investigated for criminal liability according to law if the act constitutes a crime or be given administrative sanction according to law if the act is not serious enough to constitute a crime.
Chapter VI Supplementary Provisions
Article 30 These Regulations shall apply to the export of police equipment.
Article 31 These Regulations shall come into force as of January 1, 1998.