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Q&A Regarding the China's Foreign Trade Law (8)

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Q: What is a chamber of commerce?
A: Foreign trade operators may legally establish and join relevant associations or chambers of commerce. Such associations or chambers of commerce shall abide by laws and administrative regulations, and according to their charters, provide their members with services related to foreign trade in areas such as production, marketing, information, and training. They shall play a coordinating and self-regulatory role, legally file applications for foreign trade relief measures, safeguard the interests of their members and the industry, reflect members’ suggestions on foreign trade to relevant government departments, and carry out activities to promote foreign trade.

Q: What are the consequences of unauthorized import or export of goods under state trading management?
A: For unauthorized import or export of goods subject to state trading management, the foreign trade competent authority under the State Council or other relevant departments of the State Council may impose a fine of up to RMB 500,000. In serious cases, the competent authority may, for a period of three years from the date the administrative penalty decision takes effect, refuse to accept applications from the offender to engage in the import or export of goods under state trading management, or revoke any existing authorization granted to the person for engaging in the import or export of other goods under state trading management.

Q: What are the consequences of failing to register a contract for technology that is freely importable or exportable?
A: If the parties fail to complete contract registration for technology falling under the category of free import or export, the foreign trade competent authority under the State Council shall order rectification and issue a warning. If the violation persists and no correction is made, a fine of up to RMB 50,000 may be imposed.

Q: What are the consequences of importing or exporting goods that are prohibited?‌
A: Any person who imports or exports goods that are prohibited, or who imports or exports goods subject to restrictions without obtaining the required permit, shall be dealt with and penalized by customs in accordance with relevant laws and administrative regulations. If the act constitutes a criminal offense, criminal responsibility shall be pursued in accordance with the law.

Q: What are the consequences of importing or exporting prohibited technologies?‌
A: Any person who imports or exports technologies that are prohibited, or who imports or exports restricted technologies without the required permit, or who fails to implement legally mandated necessary measures, shall be dealt with and penalized in accordance with relevant laws and administrative regulations. Where no provision is made under laws or administrative regulations, the foreign trade competent authority under the State Council shall order rectification, confiscate illegal gains, and impose a fine of one to five times the amount of illegal gains if such gains exceed RMB 500,000; if there are no illegal gains or the gains are less than RMB 500,000, a fine of up to RMB 500,000 may be imposed. If the act constitutes a criminal offense, criminal responsibility shall be pursued in accordance with the law.

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