(1) Import of products by foreign-invested enterprises for purposes of sale in China or sale in China after processing;

Import of new and used mechanical and electrical products by foreign-invested enterprises with their self-possessed funds beyond their amount of investment;

For the new mechanical and electrical products imported by foreign-invested enterprises within their amount of investment, if they are used and within the customs supervising term the enterprises require to release them from the supervision of customs in advance for purposes of self-use or sale in China, relevant procedures shall be handled referring to conditions in import;

(2) Import of priced equipment under processing trade and mechanical and electrical products under processing trade for purposes of sale in China, products sold in China or for self-use;

Non-priced import equipment under processing trade within the customs supervising term and applied for release from the supervision of customs in advance by the original using entities or with expired supervising term and not used by the original using entities;

(3) Entry in outside the special customs supervision areas and customs bonded and supervisory areas (within the territory of China) from these areas;

(4) Import of mechanical and electrical products in manners of leasing trade, compensatory trade, etc.

(5) Import of mechanical and electrical products in manners of free assistance, donation or presentation in economic exchanges, etc.

(6) Provisions in other laws and administrative regulations.

Article 18 These Measures are not applicable to the import of mechanical and electrical products subject to automatic import license in any of the following circumstances:

(1) Import of new mechanical and electrical products by foreign-invested enterprises within their amount of investment for purposes of investment and self-use;

(2) Non-priced equipment imported under processing trade which remain to be used by the original enterprises after expiration of supervising term of customs; and those imported under processing trade for purposes of export;

(3) The products that entered special customs supervision areas or customs bonded and supervisory areas from abroad or those entered or exited between special customs supervision areas or customs bonded and supervisory areas;

The products that entered special customs supervision areas and customs bonded and supervisory areas from outside of the said areas (within the territory of China) for purposes of use by enterprises in the said areas, and those required by infrastructure projects in the said areas and transferred to the outside of the said areas;

(4) The products supervised by customs that imported temporarily for re-export or exported temporarily for re-import;

(5) Import samples, advertising samples and experimental products and the value of each batch is less than 5,000 yuan;

(6) Provisions of other laws and administrative regulations.

Article 19 The MOFCOM and the GAC shall be responsible of interpreting these Measures.

Article 20 These Measures shall take effect as of May 1, 2008, and meanwhile the Detailed Regulations on Administration of Automatic Import License of Mechanical and Electrical Products (decree No.25 [2001] of the MOFTEC and the GAC) are repealed.

Appendix:

Application form of import of mechanical and electrical products (omitted)

(Source: www.fdi.gov.cn)