(Promulgated by the Ministry of Foreign Trade and Economic Cooperation

on April 24,1996)

Article 1 In order to adapt to the needs of gradually establishing the socialist market economic system, and improve the export administration regime for supplying fresh, live and frozen goods to Hong Kong and Macao, these provisions have been formulated in accordance with Provisional Regulations Concerning Administration of Voluntary Quota for Supplying fresh, Live and Frozen Goods to Hong Kong and Macao, and in connection with the actual circumstances of the current foreign trade regime.

Article 2 The export enterprises supplying fresh, live and frozen goods to Hong Kong and Macao mainly refer to the cereals and oils (foodstuffs)import and export companies which have the actual achievement in supplying fresh, live and frozen goods to Hong Kong and Macao. While keeping basic stability and relative centralization, the former supplying enterprises for the cereals or other state-owned enterprises which have foreign trade rights, with the approval from the Ministry of Foreign Trade and Economic Cooperation(hereinafter referred to as MOFTEC), can undertake part of the tasks of supplying fresh, live and frozen goods to Hong Kong and Macao.

Article 3 The local foreign economic and trade departments in charge shall be responsible for the preliminary verification of the enterprises applying for the operation of supplying fresh, live and frozen goods to Hong Kong and Macao, and then report the proposals to MOFTEC for examination and approval. As to the areas which are already able to fulfill the task of exports to Hong Kong and Macao, in principle, MOFTEC will not approve to and new operating enterprises.

Article 4 The state-owned enterprises which have foreign trade rights and satisfy the following conditions can apply for the operation of supplying fresh, live and frozen goods to Hong Kong and Macao

1.Have stable bases for export goods and the quality of goods must meet the qualification standards for supplying fresh, live and frozen goods to Hong Kong and Macao;

2.Have convenient railway or road transportation access and experience in the transportation management of fresh, live and frozen goods;

3.Have certain capability of conducting foreign trade and comprehensive operation, with the annual export volume reaching US$ 4 million and above, or for one single item of fresh, live and frozen goods to Hong Kong and Macao, the actual supplying performance exceeding US$ 1 million;

Article 5 When examining and approving to add new operating enterprises, apart from checking conditions stated above in Article 4,MOFTEC shall also consider the following factors:

1.As to the former supplying enterprises for the cereals and oils(foodstuffs) import and export companies, their role in fulfilling the task of supplying fresh, live and frozen goods to Hong Kong and Macao over a long period of time shall be examined, with an emphasis on considering goods sources, goods quality, transportation and operation management;

2.As to the goods which have a good domestic supply and high market shares in the Hong Kong and Macao Markets so that market demand has been basically satisfied, new operation enterprises in principle shall not be approved;

3.As to the goods which have low quantities of supply, low market shares and bad fulfillment of quotas, operating enterprises shall be appropriately increased or adjusted;

4.In case the demand for some goods in Hong Kong and Macao markets has increased while the current exporting enterprises are not able to fulfill the tasks, or there appears shortage of supply because of insufficient domestic supplies, some exporting enterprises can accordingly be arranged to conduct trial sales or operate the export business of the said goods to Hong Kong and Macao.

Article 6 After receipt of the application report from the localities, MOFTEC shall generally send back formal response within one month. The newly approved enterprises to undertake the export task of supplying frozen goods to Hong Kong and Macao shall strictly operate the exports of fresh, live and frozen goods within the scope approved by MOFTEC.

Article 7 In case that it is necessary to make important adjustments to the local operating enterprises supplying fresh, live and frozen goods to Hong Kong and Macao because of changes in the foreign economic and trade departments of the concerned localities shall report the plan to MOFTEC for approval before carrying it out.

Article 8 As to the newly approved operation enterprises, MOFTEC in principle will not increase the total amount of quota for the locality to export fresh, live and frozen goods. The quota needed by the newly added enterprises shall be balanced and solved by the local foreign economic and trade department itself within the total amount of allocated quota.

Article 9 The local foreign economic and trade departments, when assigning quotas to the exporting enterprises in their respective localities, shall in principle concentrate on those which have stable source bases and export quality goods at high prices. They shall also consider scale operation and avoid too much diffusion in quota assignment. Meanwhile, they shall report in time the quota assignment to MOFTEC and the Commissioner's Office of MOFTEC stationed in Guangzhou for record.

Article 10 The local foreign economic and trade departments shall strengthen the administration of exporting enterprises in their respective areas which supply fresh, live and frozen goods to Hong Kong and Macao and shall organize, coordinate the export work of relevant enterprises in accordance with the monthly quota assignment by the Commissioner's Office of MOFTEC stationed in Guangzhou, to ensure the fulfillment by the relevant localities and units of the task of supplying fresh, live and frozen goods to Hong Kong and Macao in goods quality, proper amount and at balanced and seasonable flow.

Article 11 The export enterprises supplying fresh, live and frozen goods to Hong Kong and Macao shall consciously accept the supervision by the relevant administrative departments. The goods they operate shall be handled on an uniform basis by the relevant agencies in Hong Kong and Macao.

Article 12 MOFTEC is responsible for regular inspection of the supplying sort of fresh, live and frozen goods to Hong Kong and Macao by the localities and units, and make adjustments to the operating enterprises with respect to the inspection results. As to the enterprises which fail to accomplish in time the task to export to Hong Kong and Macao and with low rate of quota fulfillment, MOFTEC will deduct their export quotas or reduce their exporting goods .As to the enterprises which supply goods of bad quality, violate the relevant regulations and Macao markets, MOFTEC will revoke their operation rights to export fresh, live and frozen goods to Hong Kong and Macao.

Article 13 These provisions shall enter into force from the date of promulgation and shall be interpreted by MOFTEC.