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Regulations on Administration of Technology Import Contracts of the People's Re

Date: 2008-11-12 14:35 | Author: admin | From: | Read Times: 14

Promulgated by the State Council on May 24 , 1985

  Article 1 These Regulations are fonmulated with a view to further expanding foreign economic and technical cooperation , upgrading the scientific and technical level of the country and promoting the growth of national economy .

  Article 2 Importation of technology referred to in these Regulations means acquisition of technology through trade or economic and technical cooperation by any corporation, enterprise, organization or individual ( hereinafter referred to as the, recipient) within the territory of the People's Republic of China from any corporation , enterprise , organization, or individual ( hereinafter referred to as the supplier) , outside the territory of the People's Republic of China and such importation includes , thougt not exclusively :

  1 . Assignment or license of patent or otber industrial property rights ;

  2 . Provision of know-how , such as technological processes , fonmulas , product designs , quality control or management in the forms of drawings, technical data , technical specifications etc .

  3 . Techaical services .

  Article 3 The technology to be imported shall be advanced and appropriate and shall conform to at least one of the following requirements : .

  1 . Capable of developing and manufacturing new products;

  2 . Capable of improving quality and perfonpmance of products , reducing production costs and lowering consumption of energy or raw materials ;

  3 . Favorable to maximum utilization of local resources;

  4 . Capable of expaading product export and increasing earings of foreign currencies :

  5 . Favorable to environmental protection :

  6 . Favorable to production safety;

  7 . Favorable to improvement of management;

  8 . Conducive to raise scientific and technical level .

  Article 4 The recipient and supplier shall conclude in written form a tecbnology import contract ( hereinafter referred to as contract ) . An application for approval of the contract shall be submitted by the recipient , within thirty days from the date of conclusion of the contract, to the Ministry of Foreign Economic Relations and Trade of the People's Republic of China or any other agency authorized by the Ministry ( hereinafter referred to as the approving authority ) . The approving authority shall approve or disapprove the contract within sixty days from the date of receipt . Contracts approved shall come into effect on the date of approval . Contracts on which the approving authority does not make a decision within the specified period of time herein shall be regarded as being approved and come into effect automatically .

  Article 5 The conclusion of a technology import contract shall conform to the relevant provisions of the Foreign Economic Contract Law and other laws of the People's Republic of China .

  Both parties shall specify in the contract the following items :

  1 . Contents, scope and essential deescription of the technology provided , and a list of patents and trademarks if they are involved;

  2 . Technical targets to be expected and time limit and measures for accomplishing the targets ; and ,

  3 . Remuneration, and its composition and form of payment .

  Article 6 The supplier shall ensure that it is the lawful owner of the technology provided and that the technology provided is coraplete , correct , effective and capable of accomplishing tbe technical targets speci fiecl in the contract . .

  Article 7 The recipient shall assume the obliga tion to keep confidential, in accordance with the scope and duration agreed upon by both parties, the technical secrets contained in the technology provided by the supplier, which have not come into public domain .

  Article 8 The duration of the contract shall conform to the time needed by the recipient to assimilate the technology provided and , unless specially approved by the approving authority , shall not exceed ten years .

  Article 9 The supplier shall not oblige the recipient to accept requirements which are unreasonably restrictive . Unless specially approved by the approving authority, a contract shall not contain any of the following restrictive provisions:

  1 . Requiring the recipient to accept additional conditions which are not related to the technology to be imported, such as the purchase of unnecessary technology , technical service , raw materials , equipment or products ;

  2 . Restricting the free choice by the recipient to obtain raw materials , parts and components or equipment from other sources;

  3 . Restricting the development and improvement by the recipient over the imported technology;

  4 . Restricting the acquisition by the recipient of similar or competing technology from other sources;

  5 . Imposing non-reciprocal terms of exchange of improved technology on the recipient;

  6 . Restricting the quantity , variety and sales price of products to be manufactured by the recipient with the imported technology;

  7 . Unreasonably restricting the sales channels and export markets of the recipient;

  8 . Forbidding the use by the recipient of the imported technolog. after expiration of the contract ; or ,

  9 . Requiring the recipient to pay for or to assume obligations for patents which are unused or expired .

  Article 10 In applying for approval of contracts , applicants shall submit the following documents :

  1 . Application for approval of the contracts;

  2 . Copy of the contract concluded by both parties and its Chinese translation: and,

  3 . Documents evidencing thc legal status of the Contractlng partles .

  Article 11 Application and approval of any revision and renewal of a contract shall be made in accordance with thc provisions stipulated in Article 4 and 10 of these Regulations .

  Article 12 The authority to interpret these Regulations and to fonmulate detailed rules for impleraenting these Regulations resides in the Ministry of Foreign Economic Relations and Trade .

  Article 13 These Regulatons shall enter into force on the date of its promulgation.

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