Article 14 For the mechanical and electrical products subject to import license administration, local and departmental mechanical and electrical offices shall submit application materials of import entities to the MOFCOM after verification. The MOFCOM shall verify the application materials and make decision whether to issue the Import License of People's Republic of China (hereafter referred to as Import License) within 20 days. Import entities shall handle clearance procedures according to provisions of customs against the Import License.

To import the specified used mechanical and electrical products, import entities shall handle clearance procedures according to provisions of customs with the Import License and the Customs Clearance Form of Entry of Goods (mark "file of import of used mechanical and electrical products" in the Remark column) issued by state inspection and quarantine agencies.

Article 15 The MOFCOM and the GAC shall formulate and promulgate the Measures for Implementation and Administration of Import License of Mechanical and Electrical Products. The MOFCOM, together with the GAC and GAQSIQ shall formulate and promulgate the Measures for Administration of Specified Used Mechanical and Electrical Products.

Chapter IV Automatic Import License

Article 16 To monitor the import of mechanical and electrical products, the state implements automatic import license to some mechanical and electrical products under free import category.

Article 17 The MOFCOM, together with the GAC and the GAQSIQ, formulate, adjust and promulgate the Catalogue of Automatic Import License of Mechanical and Electrical Products. The Catalogue of Automatic Import License of Mechanical and Electrical Products shall be promulgated no later than 21 days before implementation.

Article 18 To import the mechanical and electrical products subject to automatic import license, import entities shall apply and obtain the Automatic Import License of the People's Republic of China (hereafter referred to as Automatic Import License) from the MOFCOM or local and departmental mechanical and electrical offices before transaction of clearance procedures, and handle clearance procedures according to provisions of customs against the Automatic Import License.

To import the used mechanical and electrical products listed in the catalogue of automatic import license of mechanical and electrical products (excluding specified used mechanical and electrical products), import entities shall handle clearance procedures according to provisions of customs with the Automatic Import License and the Customs Clearance Form of Entry of Goods (mark "file of import of used mechanical and electrical products" in the Remark column) issued by state inspection and quarantine agencies.

Article 19 The MOFCOM and the GAC formulate and promulgate the Measures for Implementation of Automatic Import License of Mechanical and Electrical Products.

Chapter V Monitoring and Supervision of Import

Article 20 The MOFCOM is responsible for taking statistics, analysis and monitoring of national import of mechanical and electrical products.

Local and departmental mechanical and electrical offices shall submit their statistics data and materials of the import of mechanical and electrical products to the MOFCOM according to the provisions of national statistics systems.

Article 21 If there is any abnormality of import of mechanical and electrical products by monitoring, the MOFCOM shall notify relevant departments in a timely manner and carry out investigation according to laws.

Article 22 The MOFCOM and local and departmental mechanical and electrical offices can undertake inspections on import of mechanical and electrical products under restrictive import category according to laws. Import entities shall cooperate with and assist the inspections and inspection departments shall keep business secrets for the import entities.

Article 23 Import entities shall not have the following acts:

(1) Import of mechanical and electrical products under forbidden import administration, or import of mechanical and electrical products under restrictive import administration without approval or license;

(2) Import of mechanical and electrical products under restrictive import administration exceeding the scope of approval or license;

(3) Forgery, compilation, purchase or sale of certificates for import of mechanical and electrical products (including Import License and Automatic Import License, similarly hereafter);

(4) Acquirement of certificates for import of mechanical and electrical products by cheat or other illegal manners;

(5) Illegal transfer of certificates for import of mechanical and electrical products;

(6) Application for import without going through legal procedures;

(7) Other acts in violation of laws and administrative regulations regarding import of mechanical and electrical products.

Chapter VI Legal Responsibilities

Article 24 Any import entity having any act provided in Article 23 hereof and constituting a crime shall bear criminal responsibilities according to law. If the act is not enough for criminal punishment, relevant parties concerned shall be punished by administrative agencies with rights of administrative penalty such as public security bureaus and customs according to laws.

Article 25 If import entities refuse to accept administrative decisions or administrative penalties by state administrative agencies, they can apply for administrative reconsideration or institute an administrative litigation.

Article 26 Where any staff member responsible for administration of import neglects his duties, practices favoritism, engages in irregularities and abuses his power, he shall be given penalties by relevant administrative competent authorities depending on seriousness of his acts according to relevant provisions; if a criminal is constituted, he shall bear criminal responsibilities.

Chapter VII Supplementary Provisions

Article 27 Following provisions hereof are applicable in any of the following circumstances:

(1) These Measures are applicable to priced import equipment under processing trade;

(2) Non-priced import equipment under processing trade is exempted from import license of mechanical and electrical products except that procedures of entry inspection and quarantine are required to go through for used processing equipment. Non-priced equipment under customs supervision shall be under supervision for five years and if the said equipment still remains in original