(Promulgated by the Ministry of Foreign Trade and Economic Cooperation on March 13, 1996)

Article 1 For purpose of making the quota administration of fresh, live and frozen commodities supplied to Hong Kong and Macao more scientific and up to standard, establishing an inspiration mechanism of awarding the good and punishing the bad--only the fittest survive, maintaining good export order, increasing the profit of foreign trade enterprises, ensuring the quality of export products, making full use of quotas and taking into consideration of the feature of livestock supplied to Hong Kong and Macao, these detailed regulations are hereby formulated in pursuant to the Provisional Regulations of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on the Administration of Voluntary Quotas of Fresh, Live and Frozen Commodities Supplied to Hong Kong and Macao (hereinafter referred to as "Regulations").

Article 2 The Detailed Regulations shall apply to the export of such livestock supplied to Hong Kong and Macao as large-weighted live pig, meduim-weighted live pig, live suckling pig, live cattle and live sheep.

Article 3 Basic principle for the distribution and adjustment of annual quota:

1. The distribution and adjustment of quotas should keep to the principle of openness, impartiality and fairness, follow the procedure required by the Regulations and take full consideration of opinions of the Special Commissioner's Office of MOFTEC stationed in Guangzhou (hereinafter referred to as the Special Commissioner's Office in Guangzhou), of other related agencies of MOFTEC stationed in Hong Kong and Macao (hereinafter referred to as Agencies), and of local suppliers and companies concerned.

2. The distribution and adjustment shall be decided by percentage of qualified products, the exported livestock's average rank of selling price and the implementation of its quota, and in the meantime, in light of export performances to Hong Kong and Macao in the previous year, preferences shall be granted to localities and corporations whose export commodities are of high quality with high market selling price and whose quotas have been largely utilized.

3. Foreign-funded enterprises which at present have had quotas for supplying livestock to Hong Kong and Macao are subject to the various distribution and adjustment rules imposed upon by the Detailed Regulations. In principle, the annual quota shall not go beyond its approved export scale.

Article 4 Rank determination on percentage of qualified products and average selling price. The related localities' and units' rank on the percentage of qualified products and average selling price shall be decided by dividing the sum of two numbers by two, the quotient is the rank of the locality and unit on percentage of qualified products and average selling price.

Agencies concerned are responsible for the determination of position of export units on the percentage of qualified products supplied to Hong Kong and Macao. Determination standard shall be open, determination procedure impartial and selling price regularly announced. Detailed rules shall be drafted by the agency which will go into effect upon approval of MOFTEC.

Article 5 Determination of the fulfillment status of quota. Taking account of the monthly quotas granted by the Special Commissioner's Office in Guangzhou, the fulfillment of quotas by various localities and units shall be judged by the amount of goods upon actual arrival. The Special Commissioner's Office in Guangzhou and agencies shall be responsible for checking the actual arrival of goods of related localities and units to ensure the accuracy of fulfillment status of quota by various localities and units.

Article 6 Distribution of annual quotas.

1. On the basis of a fixed amount of total quotas, the annual quota base for various localities and units shall be decided by the proportion they occupied in previous year's annual quotas and the performance in trial operation in newly-opened ports.

2. In accordance with the quality and selling price of livestock supplied to Hong Kong and Macao by various localities and units, and following the standards for Deciding the Rank for Award and Punishment, the Deduction Ratio, and the Minimum Amount to Be Deducted of Certain Products as appended to the Detailed Regulations, the quota base of localities and units taken the last certain ranks on proportion of qualified goods and average grade of selling price shall be reduced, and the deducted amount shall be granted as award for those who take the first few places.

When the proportion of qualified large-weighted live pig and live cattle goes beyond 65% and 75% respectively, award and punishment shall not be applied to quotas of these two commodities by the proportion of qualified goods and the average grade of selling price.

3. In accordance with the Standards for Deciding the Rank for Award and Punishment, the Deduction Ratio and the Minimum Amount to Be Deducted of Livestock Supplied to Hong Kong and Macao as appendix of the Detailed Regulations, the quota base of localities and units who take the last few places in fulfilling quotas shall be reduced for awarding those who take the first few places in fulfilling quotas.

With no permission from MOFTEC or the Special Commissioner's Office in Guangzhuo, localities and units who provide unauthorized supply of goods in excess of quotas shall not be awarded. For localities and units whose excess is beyond 3%, the surpassed amount shall be deducted in full from the following year's quota base. The deducted amount shall be incorporated into the total quota and allocate to other ports.

If the fulfillment of quotas by localities and units reaches 95% or above, award and punishment shall not be decide by the rank of quota fulfillment.

Article 7 Adjustment of annual quotas

1. In accordance with Article 16 of the Regulations, quotas for fresh live and frozen commodities supplied to Hong Kong and Macao shall be collectively adjusted in April, July and October every year taking into consideration of the market in Hong Kong and Macao and domestic goods supply. With regard to seasonal commodities, or in case of sudden changes in market situation supply, of goods and transportation, MOFTEC shall approve the adjustment of quotas on a case-by-case basis in line with the actual situation.

2. The adjustment of quotas shall grant preferential increase to ports that are above the nation's average level in terms of fulfillment of quotas, the proportion of qualified livestock and grade of selling price. In the meantime, considering the applications from various places and their condition in supply of goods, transportation and operation, some quotas shall be allocated to qualified ports on a trial basis.

3. In the adjustment process, with regard to the quota's fulfillment of particular commodities, quotas for ports who present an ill-performance shall be reduced and the amount shall be given as award to those who make a good performance.

4. Ports who are ready to coordinate voluntarily in regulating the market and who provide goods in excess of quotas to accomplish a temporary supplying emergency shall be awarded, by MOFTEC's approval, with 50% of the surpassed amount, which is exempt from their annual quota.

Article 8 Economic and Trade Commissions in places concerned shall refer to these Detailed Regulations in allocating and adjusting export quotas granted by MOFTEC to related local enterprises.

Article 9 Other matters

Any enterprise who commits violation against MOFTEC's related regulations on the administration of quotas and licenses, unauthorized export which is not through agencies or any stipulations of the Regulations shall be punished by reducing or even canceling its quotas, as described in Article 31, Chapter VIII in the Regulations.

Article 10 The Detailed Regulations shall enter into effect on date of promulgation. Department of Foreign Trade of MOFTEC shall be responsible for its interpretation.

Appendix: Standards for Deciding the Rank for Award and Punishment, the Deduction Ratio and the Minimum Amount to Be Deducted of Livestock Supplied to Hong Kong and Macao.

Appendix:

Standards for Deciding the Rank for Award and Punishment, the Deduction Ratio and the Minimum Amount to Be deducted of Livestock Supplied to Hong Kong and Macao

　Remarks:

1. In accordance with the actual arrival of goods, it's quality, etc., the annual ratio of reduction shall be within the range of deduction as listed in the appenix, which applies to all ports whose quotas are to be reduced.

2. When the amount decreased does not meet the minimum amount after reducing by deduction ratio, reduction shall be done with the minimum amount as listed in the appendix.

3. Taking into account the fact that there are not many units who provide livestock to Macao, the rank for award and punishment of livestock supplied to Macao shall be the first and the last.