Chapter IV Order of Arms Export

Article 20 No unit or organization which has not obtained the business operations right for arms export shall engage in any arms export business activity.

The State forbids any individual to engage in any arms export business activity.

Article 21 Arms trading companies shall abide by the provisions of laws and administrative regulations and maintain the normal order of arms export in their arms export business activities.

Article 22 Arms trading companies shall not commit any of the following acts in their arms export business activities:

(1) impairing the security of the State or social and public interests;

(2) pushing out any other competitor by means of unfair competition;

(3) infringing upon the intellectual property rights protected by the laws of the People's Republic of China;

(4) forging, altering, obtaining by fraud or illegally transferring any document or certificate such as the approval document for arms export proposals, the approval document for a contract, the licence and the valid certification document of the recipient country;

(5) overstepping the approved scope of business; or

(6) any other act in violation of the provisions of laws and administrative regulations.

Article 23 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.

Chapter V Legal Liability

Article 24Where 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.

Article 25 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.

Article 26 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.

Article 27 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.

Article 28 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.

Chapter VI Supplementary Provisions

Article 29 These Regulations shall be applicable to the export of police equipment.

Article 30 These Regulations shall come into force as of January 1, 1998.

The English translation is for reference only and if there is any discrepancy, the Chinese version shall prevail.