QuangPham

Only the companies or institutions authorised by the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) are allowed to carry out international operations. There are two possibilities: either companies of foreign trade or productive companies are entitled to trade on an international basis (import for their personal use conditioned by steady flows of export) . There are currently about 9, 000 companies authorised to carry out foreign trade operations in China (14 in 1979) .
More than half of the imports towards China are subject to import licenses. The initial license is issued by various organisations according to the product, but the final license is granted by the MOFTEC. In order to obtain these licenses, the importer must hold an exact reserve of exchange and prove that the import is necessary. The grant of licenses often depends on the domain of activity, being able to be encouraged, allowed, restricted or simply forbidden, according to the rule of investments promulgated by China. It is in any case imperative to have strong relations with the Chinese Administration to succeed in obtaining these licenses.
There are import quotas for more than 400 products, such as cars and textile. The criteria to establish these quotas is not public and it is extremely difficult to get information on this matter. In a WTO membership prospective, China suggested they would lift these quotas by 2005.
Most imported goods in China are subject to inspection. Either a preliminary inspection takes place in the exporting country for some products (textile for instance) , or either there is an inspection in the port or in the airport of arrival to check that the products meet the Chinese standards. These controls are LED directly and exclusively by Chinese Authorities.

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