(Promulgated by Decree No. 366 of the State Council of the People's Republic of China and the Central Military Commission of the People's Republic of China on August 15, 2002, and effective as of November 15, 2002)

For the purposes of further strengthening the unified administration of arms export and improving the system for arms export, it is decided to amend the Regulations of the People's Republic of China on Administration of Arms Export as follows:

I.One paragraph is added to Article 2 as the second paragraph: "Arms export referred to in the preceding paragraph shall be included in the arms export administration list. The arms export administration list shall be formulated, adjusted and published by the competent arms export department of the State. "

II.Article 3 is amended as follows: "The competent arms export department of the State shall, under the leadership of the State Council and the Central Military Commission, take charge of the arms export work throughout the country and exercise supervision and administration of arms export throughout the country."

III.Article 8 is amended as follows: "The business operations right for arms export shall be examined and approved by the competent arms export department of the State. Specific measures shall be formulated by the competent arms export department of the State."

IV.Article 11 is amended as follows: "In accordance with the provisions of the competent arms export department of the State, an arms trading company shall truthfully present the documents and data pertinent to its arms export business activities. The competent arms export department of the State shall keep business secrets of the arms trading company and protect its lawful rights and interests."

V.Article 12 is amended as follows: "An arms trading company may entrust an approved transportation enterprise for arms export with the transportation of arms for export and related business matters. Specific measures shall be formulated by the competent arms export department of the State."

VI.Article 14 is amended as follows: "Proposals for arms export shall be examined and approved by the competent arms export department of the State, or by the competent arms export department of the State jointly with the relevant departments of the State Council and the Central Military Commission."

VII.Article 15 is amended as follows: "When proposals for arms export are approved, an arms trading company may conclude contracts for arms export with the foreign side. After a contract for arms export is concluded, it shall file an application with the competent arms export department of the State for examination and approval; the competent arms export department of the State shall make a decision thereon within 20 days from the date of receipt of the application. A contract for arms export shall become effective only after it is approved.

"When filing an application with the competent arms export department of the State for approval of its contract for arms export, an arms trading company shall attach the valid certification documents of the recipient country."

VIII.Article 16 is amended as follows: "Important proposals and contracts for arms export shall be examined by the competent arms export department of the State jointly with the relevant departments of the State Council and the Central Military Commission and be submitted to the State Council and the Central Military Commission for approval."

IX.Article 17 is amended as follows: "An arms trading company shall, before exporting arms, apply to the competent arms export department of the State for an arms export licence on the basis of the approval document for the contract of arms export; when the requirements are met for an arms export contract, the competent arms export department of the State shall issue the arms export licence within 10 days from the date of receipt of the application.

"The Customs shall accept declarations according to the arms export licence, and examine and give clearance in accordance with the relevant provisions of the State."

X.Article 18 is amended as follows: "Measures for the examination and approval of proposals and contracts for arms export and methods for the issue of arms export licences shall be prescribed by the competent arms export department of the State."

XI.Article 19 is amended as follows: "For arms export, the competent arms export department of the State shall issue a notice of arms export jointly with the departments concerned. Upon receiving the notice of arms export, the departments concerned and the local people's governments shall conscientiously perform their functions and responsibilities according to the relevant provisions of the State in order to ensure safe, speedy and accurate export of arms."

XII.Article 23 is amended as follows: "The competent arms export department of the State may, when it deems necessary or at the request of an arms trading company, deal with any act which obstructs the normal order of arms export."

XIII.Article 24 is amended as follows: "Where any arms trading company violates the provisions of Article 11 of these Regulations, the competent arms export department of the State shall order it to make corrections within a specified time limit and give it a warning; if failing to make corrections within the specified time limit, such company shall be fined not less than 20,000 yuan but not more than 100,000 yuan and its business operations right for arms export shall be suspended or even revoked."

XIV.Article 25 is amended as follows: "Where any arms trading company violates the provisions of subparagraph (4) or (5) of Article 22 of these Regulations and also violates the criminal law, it shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of illegal operation, the crime of forging, altering, buying or selling official documents, certificates or seals of a State organ or other crimes; if the case is not serious enough for criminal punishment, the competent arms export department of the State shall give it a warning, confiscate its illegal income and concurrently impose a fine of not less than one time but not more than three times the illegal income; if there is no illegal income or the illegal income is less than 100,000 yuan, a fine of not less than 100,000 yuan but not more than 300,000 yuan shall be imposed and its business operations right for arms export shall be suspended or even revoked.

"Where any arms trading company violates the provisions of subparagraph (1), (2) or (3) of Article 22 of these Regulations or the provisions of laws or other administrative regulations, the competent arms export department of the State shall impose penalties on it in accordance with the provisions of relevant laws and administrative regulations and may concurrently suspend or even revoke its business operations right for arms export; if violating the criminal law, it shall be investigated for criminal liability in accordance with the relevant provisions of the criminal law."

XV.Article 26 is amended as follows: "Any illegal activity in violation of the provisions of Article 20 of these Regulations shall be banned by the competent arms export department of the State; if such activity violates the criminal law, criminal liability shall be investigated in accordance with the provisions of the criminal law on the crime of illegal operation or other crimes; if the case is not serious enough for criminal punishment, the competent arms export department of the State shall give a warning, confiscate the illegal income and concurrently impose a fine of not less than one time but not more than five times the illegal income; if there is no illegal income or the illegal income is less than 100,000 yuan, a fine of not less than 100,000 yuan but not more than 500,000 yuan shall be imposed."

XVI.Article 27 is deleted.

XVII.Article 28 is changed to be Article 27 and amended as follows: "Where an arms trading company refuses to accept a specific administrative act of the competent arms export department of the State, it shall apply for administrative reconsideration according to law at first; if it still refuses to accept the decision of administrative reconsideration, it may bring an administrative suit to the people's court according to law."

XVIII.Article 29 is changed to be Article 28 and amended as follows: "Where any State functionary engaged in administration of arms export abuses his power, neglects his duty or accepts or extorts money or property from other persons by taking advantage of his office thereby violating the criminal law, he shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of power, the crime of neglect of duty, the crime of acceptance of bribes or other crimes; if the case is not serious enough for criminal punishment, he shall be given an administrative sanction according to law."

In addition, the wording of some articles is amended correspondingly and the order of articles adjusted correspondingly.

This Decision shall be effective as of November 15, 2002.

The Regulations of the People's Republic of China on Administration of Arms Export are revised correspondingly in accordance with this Decision and promulgated anew.