China: State Council Decision on Amending Nuclear Materials Export Regulations

Text of report by official Chinese news agency Xinhua (New China News Agency)

["The Decision of the State Council on Amending the 'Regulations of the People's Republic of China on Export Control Over Dual-Use Nuclear Materials and the Related Technologies'" - Xinhua headline;]

Beijing, 16 Feb (Xinhua) – The Decision of the State Council on Amending the “Regulations of the People’s Republic of China on Export Control Over Dual-Use Nuclear Materials and the Related Technologies”

The State Council decided to make amendments to the “Regulations of the People’s Republic of China on Export Control Over Dual-Use Nuclear Materials and the Related Technologies” as follows:

1. Article 1 is amended to: “These regulations have been formulated to strengthen the control over the export of dual-use nuclear materials and the related technologies, prevent nuclear proliferation, guard against terrorist acts, promote international cooperation in the peaceful use of nuclear energy, and safeguard state security as well as social and public interests.”

2. Article 2 is amended to: “The export of dual-use nuclear materials and the related technologies mentioned by these regulations refers to the export in the nature of trade of equipment, materials, software, and the related technologies as well as foreign-oriented donations, exhibitions, technological cooperation, assistance, service, and all other forms of transfer listed by the ‘Control List of Export of Dual-Use Nuclear Materials and the Related Technologies’ (hereinafter called ‘control list’ for short”).”

3. Article 3 is amended to: “The state exercises strict control over the export of dual-use nuclear materials and the related technologies, strictly performs its international obligation of nonproliferation of nuclear weapons, prevents the use of dual-use nuclear materials and the related technologies for nuclear explosion purposes or nuclear terrorist acts. [no unquote, as published]

“To safeguard state security and international peace and security, the state may at any time take necessary measures on the export of dual-use nuclear materials and the related technologies.”

4. Article 6 is amended to: “The approval for the export of dual- use nuclear materials and the related technologies should be based on the following guarantees made by the recipient:

(1) The recipient must guarantee that it will not use the dual- use nuclear materials and the related technologies or any other replicas provided by China, for nuclear explosion purposes or any purposes other than the end application that has been clarified.

(2) The recipient must guarantee that it will not use the dual- use nuclear materials and the related technologies or any other replicas provided by China, for nuclear fuel recycling activities without the protection and supervision by the International Atomic Energy Agency. This provision does not apply to countries falling under the International Atomic Energy Agency’s voluntary protection agreement.

(3) The recipient must guarantee that without the Chinese Government’s permission, it will not transfer the dual-use nuclear materials and the related technologies or any other replicas provided by China, to a third party other than the end user that has been clarified.”

5. Item 3 of Article 8 is amended to: “Technical explanations or test reports on dual-use nuclear materials and the related technologies”; Item 4 is amended to: “Certificates of the end user and end use.”

6. Article 9 is amended to: “The export of dual-use nuclear materials and the related technologies, participation in exhibitions of such materials and the related technologies outside China, their use by the Chinese side itself outside China, their repair and maintenance outside China, their transportation back into China within the time limits, their retransportation out of China after repair and maintenance in China, or any other situations prescribed by the Ministry of Commerce may be exempted from submitting the relevant documents stipulated by Article 8 of these regulations as long as the applications have been examined and approved by the Ministry of Commerce.”

7. Article 11 is amended to: “The Ministry of Commerce should, upon receipt of the export application forms and the documents specified by Article 8 of the regulations, discuss with the State Atomic Energy Agency or its relevant department, and with the Ministry of Foreign Affairs if the applications involve foreign policy, proceed with the necessary examination, and make a decision in 45 working days on whether the applications are approved or denied.”

8. Clause 1 of Article 12 is amended to: “With regard to the export of dual-use nuclear materials and the related technologies that have important bearings on state security, social and public interests, or foreign policy, the Ministry of Commerce and the relevant department should submit the applications to the State Council for approval.”

9. One more article is added to constitute Article 16: “The customs can raise questions for exporters about the export permits for dual-use nuclear materials and the related technologies when exporting equipment, materials, software, and the related technologies, and can require exporters to apply to the Ministry of Commerce for certificates and documents certifying whether the equipment, materials, software, and the related technologies to be exported fall within the scope of export control for dual-use nuclear materials and the related technologies. If the equipment, materials, software, and the related technologies to be exported fall within the scope of export control for dual-use nuclear materials and the related technologies, the exporters should, pursuant to the provisions of these regulations, apply for export permits for dual-use nuclear materials and the related technologies. Detailed procedures will be worked out by the General Administration of Customs and the Ministry of Commerce.”

10. Article 16 is changed to Article 17 and amended to: “In case the recipient breaks the promise it has made according to the provisions of Article 6, or in case there is an outbreak of nuclear proliferation or terrorist acts, the Ministry of Commerce should suspend or revoke the export permits it has issued and should notify the relevant department of the case.”

11. One more article is added to constitute Article 18: “Exporters should establish and perfect the internal control mechanism for the export of dual-use nuclear materials and the related technologies and appropriately keep the relevant contracts, invoices, receipts, business letters, and other documents for not less than five years. The Ministry of Commerce is entitled to check, review, and copy the relevant information.”

12. One more article is added to constitute Article 19: “Exporters who are aware, or should be aware, or obtain a notification from the Ministry of Commerce that the equipment, materials, software, and relevant technologies to be exported bear nuclear proliferation risks or may be used for nuclear terrorist purposes should abide by the provisions of these regulations even if the equipment, materials, software, and relevant technologies are not included on the control list.”

13. Article 17 is changed to Article 20 and amended to: “With the approval of the State Council, the Ministry of Commerce and the relevant department may decide impromptu to exercise control over the export of specially prescribed dual-use nuclear materials and the related technologies outside the control list. [no unquote, as published]

“The export of specially prescribed dual-use nuclear materials and the related technologies that fall within the provision of the previous clause should obtain permits according to the provisions of these regulations.”

14. One more article is added to constitute Article 21: “The Ministry of Commerce will organize the relevant experts to form an export control advisory committee on dual-use nuclear materials and the related technologies, to provide advice, assessments, and verification for exercising export control over dual-use nuclear materials and the related technologies.”

15. One more article is added to constitute Article 22: “The Ministry of Commerce, or the Ministry of Commerce and the relevant department, may investigate and stop any behaviour suspected of violating the provisions of these regulations. If necessary, the Ministry of Commerce may report to the customs on the equipment, materials, software, and the related technologies to be exported. The customs may inspect and detain the goods that fall under their supervision. The relevant units and individuals should provide cooperation and assistance.”

16. Article 18 is changed to Article 23 and amended to: “Export of dual-use nuclear materials in violation of the provisions of these regulations will be subjected to punishment according to the provisions of Customs Law. [no unquote, as published]

“Export of dual-use nuclear materials and the related technologies in violation of the provisions of these regulations will be given a warning by the Ministry of Commerce with a penalty of one to five times the amount of goods to be illegally exported. If the amount of goods to be illegally exported is less than 50,000 yuan, the penalty will be 50,000 yuan to less than 250,000 yuan. Illegal earnings, if any, will be confiscated. A violation that constitutes a crime will be held criminally accountable according to law.”

17. Article 19 is changed to Article 24 and amended to: “Forgery, imitation, or selling and buying of export permits will be punished according to the relevant law and administrative rules. If any of these constitutes a crime, the perpetrator will be held criminally accountable according to law. [no unquote, as published]

“Export permits obtained by deception or any other improper means will be confiscated by the Ministry of Commerce with a penalty of one to five times the amount of goods to be illegally exported. If the amount of goods to be illegally exported is less than 50,000 yuan, the penalty will be 50,000 yuan to less than 250,000 yuan. Illegal earnings, if any, will be confiscated. A violation that constitutes a crime will be held criminally accountable according to law.”

18. Article 21 is changed to Article 26 and amended to: “The Ministry of Commerce, together with the State Atomic Energy Agency and the relevant department, may adjust the control list in accordance with the actual situation and announce the adjustments.”

19. One more article is added to constitute Article 28: “The provisions of these regulations apply to the export of dual-use nuclear materials and the related technologies from the bonded areas, export processing areas, customs special supervisory areas, export supervisory storage houses, bonded commodity exchange centres, and other bonded supervisory sites. [no unquote, as published]

“The transit, transshipment, and direct shipment of dual-use nuclear materials and the related technologies should proceed in accordance with the provisions of these regulations.”

In addition, the order of wordings and the use of some wordings have been correspondingly adjusted and amended.

This decision comes into effect as of the date of announcement.

The “Regulations of the People’s Republic of China on Export Control Over Dual-Use Nuclear Materials and the Related Technologies” have been amended in accordance with the decision and are now repromulgated.

Decree of the State Council of the People’s Republic of China

Beijing, 16 Feb (Xinhua) – Decree 484 of the State Council of the People’s Republic of China

The Decision of the State Council on Amending the “Regulations of the People’s Republic of China on Export Control Over Dual-Use Nuclear Materials and the Related Technologies” is now announced and comes into effect as of the date of announcement.

Premier Wen Jiabao

26 January 2007

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