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Detailed Implementation Regulations on the Distribution and Adjustment of Annual Quotas for Supplying Livestock to Hong Kong and Macao
(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.
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