Methods on the Administration of Tea Export Operation

 1998.10.10



MINISTRY OF FOREIGN ECONOMIC RELATIONS & TRADE



CIRCULAR  BY MINISTRY OF FOREIGN TRADE AND ECONOMIC  COOPERATION



CONCERNING THE PROMULGATION OF MEASURES ON THE ADMINISTRATION OF TEA



EXPORT OPERATION



Commissions (or departments at the provincial level or bureaus) of



various  provinces,  autonomous  regions,  municipalities  directly



administered by the central goverment and cities separately listed on



the nation's budgetary plan, Guangdong Branch of the Customs House,



various customs houses that are directly administered, various commodity



inspection bureaus that are directly administered, various Special



Commissioner's  Offices,  Administration of Quota  and  Licensing



Requirement Affairs, China General Company for Import and Export of



Foodstuffs, Native Produce and Animal By-Product, and China Chamber of



Commerce for Import and Export of Foodstuffs, Native Produce and Animal



By-Product:



In order to further the reform of the system of  foreign-trade



administration, to promote 'two turnings', to better bring into play the



important functions of export in foreign trade toward the promotion of



the national economy of China; At the same time, to grip  the



advantageous opportunity to improve the export of the tea of China,



especially green tea, to further reform the system of tea export of



China, our Ministry formulated through research Measures on  the



Administration of Tea Export Operation. Now, this is circulated to you.



Please act in accordance. The original Interim Measures on  the



Administration of Tea Export Operation is set aside and vacated at the



same time.



           Ministry of Foreign Trade and Economic Cooperation



                              July 22, 1998



ANNEX:



     MEASURES ON THE ADMINISTRATION OF TEA EXPORT OPERATION



([1998] Wai Jing Mao Guan Fa No. 401)



This set of measures is formulated in order to maintain the order of



China's tea export operation, to expand the export of tea, and to



promote the developement of the economy of tea-producing areas, and in



accordance with the relevant provisions of Foreign Trade Law of the



People's  Republic of China and the Interim Measures on  Export



Commodities promulgated by the State Council.



Article One From August 10, 1998 on, the State will no longer conduct



uniform joint operation on tea export, the transaction of which will be



striken by foreign trade companies with the right of tea export as



approved by Ministry of Foreign Trade and Economic Cooperation (MOFTEC),



manufacturing enterprises with the right of tea export, and MOFTEC-



approved foreign-invested enterprises. Without approval from MOFTEC, no



other enterprises shall operate in tea export. The inter-governmental



tea trade with Libya, Tunisia and other countries shall be operated by



the export enterprises as designated by MOFTEC.



Article Two The quota for Oolong tea export to Japan shall be



separatedly listed by MOFTEC, and the relevant export enterprises shall



strike transactions in accordance with the coordinating plan of China



Chamber of Commerce for Import and Export of Foodstuffs, Native Produce



and Animal By-Product.



Article Three The State shall go on with exercising administration over



tea export through planned quotas and export licencing. Various foreign



trade administration departments shall make arrangements strictly in



accordance with the planned quotas of tea export given by MOFTEC and



support the export by the foreign trade enterprises and manufacturing



enterprises that have strong operating competence, good profits and



famous trademarks for tea export. Only if there are needs and the



enterprises have the capacity to export, MOFTEC shall satisfy them in



the aspect of export quotas. The licence-granting organs entrusted by



MOFTEC shall issue export licences in strict accordance with the



relevant provisions concerning the administration of licence of export



quotas.



Article Four The tea export licence of all the companies directly



affiliated with various ministries and commissions that have the



operational right to export shall be issued by the Administration of



Quota and Licensing Requirement Affairs under MOFTEC. The tea export



licences of tea export enterprises in various provinces, autonomous



regions, municipalities directly administered by the central goverment



and cities separately listed on the nation's budgetary plan shall be



issued by various Special Commissionser's Offices of MOFTEC;  in



particular, Oolong tea export licences shall be issued by MOFTEC Special



Commissioner's Offices in Fuzhou and Guangzhou.



Article Five Tea for export must strictly comply with quality standards.



The tea that has already got uniform tea serial number and standard



export samples shall not be exported before it has passed commodity



inspection in accordance with uniform tea serial number and standard



export samples. Green tea shall pass commodity inspection conducted by



designated commodity inspection bureaus in Shanghai, Jiangsu, Zhejiang,



Ningbo, Anhui, Fujian, Jiangxi, Henan, Hubei, Hunan, Guangdong, Sichuan,



Yunnan, Guangxi, Shenzhen and Chongqing; in particular, pearl tea is



designated to be inspected by the commodity inspection bureaus in



Shanghai, Zhejiang and Ningbo, and no other ports may conduct commodity



inspection of green tea.



Article Six China Chamber of Commerce for Import and Export of



Foodstuffs, Native Produce and Animal By-Products shall be responsible



for coordinating and offering services to tea export; it's also



responsible for deciding the means to coodinate prices for tea export,



customers and the market, as well as for reporting in a timely manner to



MOFTEC the situation of the implementation and the existent problems.



Article Seven When tea export enterprises are submitting for tea export



commodity inspection and applying for tea export licences, they must



list the detailed kind of the tea and its HS serial number, and general



designations such as 'tea' or 'China tea' shall not be used. Otherwise,



various commodity inspection institutions shall not receive submissions



for inspection, and licensing organs shall not issue licences.



Article Eight In order to stabilize the channels for tea export and



explore new markets for export, the State encourages tea export



enterprises to improve the quality of tea for export, develope new kinds



of tea for export and build famous trademarks.



Article Nine MOFTEC may grant the right of tea export to  the



manufacturing enterprises that have reached stipulated standards in



producing capacity, operating scale, export supply, technical standard,



etc., and priority shall be accorded to manufacturing enterprises owning



famous trademarks and tea serial numbers.



Article Ten For export enterprises that violate the present Measures by



such means as exporting green tea and other kinds of tea with export



licence for red tea, the punishment of public criticism, reduction or



cancellation of tea export quota and even cancellation of the right to



operate  in tea export shall be meted out depending  upon  the



circumstances.



Article Eleven The present Measures shall be implemented as from August



10, 1998. For all previous provisions inconsistent with the present



Measures, the present Measures shall prevail.