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Title: China's Non-Proliferation Export Control


1
China's Non-ProliferationExport Control
  • Li Genxin
  • Secretary General
  • China Arms Control and Disarmament Association
    (CACDA)

2
Presentation Outline
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key Elements of China XC
  • Case Study ICP in NORINCO

3
Presentation Outline
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key Elements of China XC
  • Case Study ICP in NORINCO

4
China's Basic Policy and Position on
Non-Proliferation
  • China firmly opposes WMD proliferation and their
    means of delivery
  • China believes that proliferation of WMD has
    complicated root causes. In order to prevent
    their proliferation, an integrated approach must
    be adopted to address both the symptoms and the
    root causes.
  • Chinese Government has adopted comprehensive
    measures to implement non-proliferation and
    export control obligation.

5
Presentation Outline
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key Elements of China XC
  • Case Study ICP in NORINCO

6
Actively Participating in International
Non-Proliferation Efforts
  • NPT Since joining NPT in 1992, China has
    faithfully honored all its obligations and
    dedicated itself to maintaining and enhancing the
    universality, effectiveness and authority of the
    NPT.
  • IAEA China joined IAEA in 1984. In early 2002
    formally completed the domestic legal procedures
    necessary for the entry into force of the
    Additional Protocol, thus becoming the first
    nuclear-weapon state to complete the relevant
    procedures.
  • BWC China acceded to the BWC in 1984, and has
    always supported and actively participated in the
    multilateral endeavors aimed at strengthening the
    effectiveness of the Convention.
  • CWC As an original State Party to the CWC, China
    has made positive contributions to the effective
    implementation of the Convention and promotion of
    its universality. China has established and been
    constantly improving its national legislation and
    other measures for implementation of the
    Convention, as well as enhancing the capabilities
    of its National Authority. By the end of June
    2005, China has received 95 on-site inspections
    by the OPCW, the conclusions of which have all
    demonstrated that China has strictly implemented
    its obligations under the Convention.

7
Developing Relations with Multinational Export
Control Regimes
  • Zangger Committee (October 1997)
  • Nuclear Suppliers Group (June 2004)
  • MTCR (Sept 2004 application for membership)
  • Australia Group (keep contacts and exchanges)
  • Wassenaar Arrangement (April 2004 and May 2005,
    China held two rounds of dialogues with AG in
    Vienna)
  • Dialogue and consultation with all
    concerned countries, e.g. US, UK, FR, GE,SW, IT,
    JP, AU, ROK, etc.
  • Participation in international and
    regional conferences and seminars

8
Presentation Outline
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key Elements of China XC
  • Case Study ICP in NORINCO

9
Key Elements of China XC
  • Legal framework
  • Licensing system
  • Control list
  • Inter-agency coordinating system
  • End-use and end-user guarantee
  • Catch-all principle
  • Enforcement
  • Social awareness and compliance

10
Legal System on Non-Proliferation Export Control
  • Since the mid-1990s, China has gradually set up a
    comprehensive legal system for export controls of
    nuclear, biological, chemical, missile and other
    sensitive items and technologies as well as all
    military products.

11
XC Laws and Regulations
  • 1994 Foreign Trade Law Of PRC, Revised in 2004
  • 1995 Regulations on Administration of Controlled
    Chemicals of PRC
  • 1997 Regulations on Nuclear Export Control of PRC
    (Under review)
  • 1998 Regulations on Export Control of Nuclear
    Dual-use Items and related Technologies of PRC
    (Under review)
  • 1998 Regulations on Arms Export of PRC, Revised
    in 2002
  • 2002 Regulations on Export Control of Missiles
    and Missile-Related Items and Technologies of PRC
  • 2002 Regulations on Export Control of Dual-Use
    Biological Agents and Related Equipment and
    Technologies of PRC (Amended in July 2006)
  • 2002 Measures on Export Control of Certain
    Chemicals and Related Equipment and technologies
    of PRC
  • 2002 Measures on the Administration of Export
    Registration for Sensitive Items and Technologies
  • 2003 Provisional Measures on the Administration
    of Export Licenses on Sensitive Items and
    Technologies

12
Recent XC legal developmentsand temporary
measures
  • 2004 Foreign Trade Law Of PRC, Revision
  • 2005-01-01 Measures for the Administration of
    Licenses for the Export of Goods (MOFCOM Order
    No.28)
  • 2005-12-01 Reform of the Administrative Approval
    System for the Import and Export of Sensitive
    Items and Technologies (MOFCOM Circular No. 548)
  • 2006-01-01 Measures for the Administration on
    Import and Export License for Dual-Use Items and
    Technologies (MOFCOM and GAC Order No. 29)
  • 2006-07-27 Notice No.50 on Nuclear Dual-Use Items
    (COSTIND and GAC)
  • 2006-07-31 Regulations on Export Control of
    Dual-Use Biological Agents and Related Equipment
    and Technologies of PRC (Amended in July 31, 2006
    MOFCOM Notice No.61)
  • 2006-08-01 Management of Civil Aviation Parts
    Export Classification (MOFCOM and GAC Order No.6)
  • 2006-09-07 Regulations on the Management of
    Verification of Import and Export of Precursor
    Chemicals (Public Security Bureau, MOFCOM Order
    No.8)

13
Legal Obligations
  • Without registration, no one or unit can export
  • Submitted application materials should be true
    and complete. All records of a transaction
    should be kept for at least 2 years
  • Exporting controlled items or technologies
    without being licensed or exceeding the license
    scope is prohibited
  • Forging, altering, buying and selling the license
    is prohibited
  • Obtaining the license by fraud or other illegal
    means is prohibited
  • Violators will get administrative punishment or
    criminal judgment. (Shanghai and Jilin open
    cases)

14
Basic Principles Set in the Regulations
  • Exporter Registration System
  • Licensing System
  • List Control with HS Code
  • End-user and End-use Guarantee
  • Catch-all Principle
  • Legal Obligations and Penalties

15
Export Registration System
  • Exporter must get registered at government
    department
  • Without registration, no individual or entity
    could export sensitive items and technologies.
  • (Arms, Nuclear and Some Controlled Chemical
    Items are Monopolized or exclusive)
  • (A lot of area are governed by double register
    system license for qualification, license for
    export item)

16
Licensing System
  • Export means service, technical exchange, foreign
    assistance, etc. as well as physical transaction
  • All export of SGT should be licensed by a
    competent government agency in concurrence with
    other agencies concerned
  • Applications are handled on a case-by-case basis
  • Dispute resolution system (escalating system)
  • Legal time limit for licensing is 45 days. ( Not
    applicable to those submitted to State Council)
  • Adoption of a website-based electronic system to
    facilitate application

17
Control List
  • Nuclear Fully matched with NSG ZC lists
  • Biological Fully matched with AG list (2002.6)
  • Chemical Fully matched with AG list (2002.6)
  • Missile Compatible to MTCR list

18
End-user and End-use Guarantee
  • The end-user must guarantee
  • not to use the imported items and technologies
    for purposes other than the declared end-use
  • Not to transfer the imported items and
    technologies to any third party other than the
    declared end-user without consent of the Chinese
    government

19
Catch-All Principle
  • Where the exporter knows or should know that the
    missile-related items and technologies to be
    exported will be used by the receiving party
    directly in its program for developing missiles
    and other delivering systems listed in the
    Control List that can be used to deliver weapons
    of mass destruction, the export shall be subject
    to the provisions of these Regulations even if
    the items or technologies are not listed in the
    Control list.
  • --- Article 16 in the Missiles Export Control
    Regulations

20
GOVERNMENT COORDINATION
  • In May 2004, the Chinese Government established
    an inter-agency contingency mechanism for export
    control and spelt out in detail the
    responsibilities, division of labor and work
    procedures of relevant export control departments
    in dealing with emergency cases in this respect.
  • Inter-agency coordinating system
  • (licensing, intelligence, enforcement and
    expertise support)
  • Fast reaction system
  • (for suspected cases calling for immediate
    action)

21
GOVERNMENT AGENCIES CONCERNED
  • Ministry of Commerce (MOFCOM)
  • Ministry of Foreign Affairs (MFA)
  • National Development and Reform Committee (NDRC)
  • Commission of Science and Technology Industry of
    National Defense (COSTIND)
  • Ministry of Agriculture (MOA)
  • Ministry of Health (MOH)
  • Customs, and etc.

22
Non-Proliferation Export Control Organs
  • China's non-proliferation export control involves
    many of the government's functional departments.
    So far, a mechanism for a clear division of
    responsibility and coordination has been
    established among these departments.
  • MOFCOM The export of nuclear dual-use items,
    dual-use biological agents, certain chemicals,
    and the missile-related dual-use items and
    technology for civilian use is under the control
    of the Ministry of Commerce (MOFCOM), in
    coordination with other government departments
    concerned.
  • COSTIND Among them, the export of nuclear
    dual-use items and missile-related dual-use items
    and technologies is subject to examination by the
    MOFCOM, in coordination with the Commission of
    Science and Technology and Industry for National
    Defense (COSTIND).
  • MOA The export of dual-use biological agents and
    technologies related to animals and plants is
    subject to examination by the MOFCOM, in
    coordination with the Ministry of Agriculture
    (MOA) if needed.
  • MOH The export of dual-use biological agents and
    technologies related to humans is subject to
    examination by the MOFCOM, in coordination with
    the Ministry of Health (MOH) if needed.
  • SDRC The export of equipment and technologies
    related to dual-use biological agents and of
    equipment and technologies related to certain
    chemicals is subject to examination by the
    MOFCOM, in coordination with the State
    Development and Reform Commission (SDRC) if
    needed. The export of controlled chemicals is
    subject to examination by the State Development
    and Reform Commission, in coordination with the
    MOFCOM
  • MFA The export of sensitive items and related
    equipment and technologies that relate to foreign
    policy is subject to examination by the
    above-mentioned competent departments, in
    coordination with the Ministry of Foreign Affairs
    (MFA).
  • GAC The General Administration of Customs (GAC)
    is responsible for supervision and control of the
    export of the above-mentioned items and
    technologies, and it also participates in
    investigating and handling cases of illegal
    exports.
  • State Council Where the export items entail
    significant impact on national security and
    public interests, the competent departments
    shall, jointly with other relevant departments,
    submit the case to the State Council and the
    Central Military Commission for approval

23
NUCLEAR MATERIALS
24
NUCLEAR EQUIPMENT NON-NUCLEAR MATERIAL USED FOR
REACTORS
25
NUCLEAR DUAL-USE ITEMS TECHNOLOGIES
26
CONTROLLED CHEMICALS
27
SENSITIVE DUAL-USE ITEMS TECHNOLOGIES
(Including Biological, chemical and missile)
28
Rigorous Implementation of Laws and Regulations
on Non-Proliferation Export Control
  • In January 2004, the MOFCOM and the GAC jointly
    launched a computer control system for the export
    of sensitive items and technologies by connecting
    within the same network different agencies that
    approve and issue the license with the
    supervision branch of the Customs.
  • Based on control lists for nuclear, biological,
    chemical and missile exports, the MOFCOM and the
    GAC jointly compiled the Export Licensing
    Catalogue of Sensitive Items and Technologies
    covering 658 items and technologies, of which 68
    have had their customs code determined.
  • China's Customs also extensively apply hi-tech
    equipment in various links in the process of
    supervision and control of customs clearance,
    which has significantly upgraded the capacity of
    on-site law enforcement and efficiency of
    examination
  • Since the end of 2002, the Chinese Government has
    dealt with scores of cases of various types
    concerning illegal export of sensitive items and
    technologies. Competent authorities have put the
    companies involved in these cases on a "watch
    list" so as to prevent the recurrence of similar
    activities.
  • Relevant competent authorities have set up a
    "national expert supporting system for export
    control" that engages experts from nuclear,
    biological, chemical and missile fields to assist
    competent authorities in making correct and
    scientific judgments on relevant items during the
    process of export examination and approval

29
Outreach and Education
  • A very important part of the whole XC system
  • Co-efforts contributed by government and industry
    to nonproliferation
  • Help to detect and avoid possible proliferation
    in advance
  • foster and maintain a good interactive relation
    with industries
  • Objectives of Outreach
  • To raise public awareness of XC
  • To guide and assist firms understand and abide by
    national policies and regulations
  • To help firms to establish ICP, and assist them
    to analyze and decide the risk of a suspected
    transaction
  • To listen to the industry need and recommendation
    on XC regulations and procedures for improvement
  • To consult industries on actual item for
    professional and expertise opinions

30
Outreach Channels
  • Government Publications (Gazette)
  • Website (MOFCOM/MOFA)
  • Hotline
  • Training Courses
  • Seminars
  • Individual Contacts (Upon request)
  • Contacts through chambers and industry
    associations (imp/exp chambers, machinery
    industry association, CACDA, etc.)

31
Major Activities
  • Training of Officials from Local Commerce
    Departments and Customs Officers
  • Training of Exporters Dealing with SGT exports
  • Seminars with Technical Experts
  • Seminars with Think-Tanks
  • On-site visit to Individual Companies
  • Co-hosted XC Seminars with USDOC in 2000 and 2003
  • Organizing Industries to Participate in
    International Meetings and Seminars

32
Greater Publicity for Laws and Regulations on
Export Control and Education for Enterprises
  • The Chinese Government attaches importance to
    educating and training law enforcement officials
    for export control, especially those at the
    grass-roots level, so as to raise their policy
    awareness and capability to exercise export
    control according to law.
  • After the release of relevant laws and
    regulations on export control, the MOFCOM carried
    out comprehensive training programs on policies,
    laws and regulations for commerce officials at
    local levels.
  • In places prone to cases of illegal export, the
    MOFCOM also holds, on non-regular basis, special
    training courses on policies, laws and
    regulations and law-enforcement of export
    control.
  • The GAC, jointly with relevant organs in charge
    of non-proliferation export control, conducted
    training programs for on-site customs officials
    across the country on policies, laws and
    regulations with regard to the export control of
    sensitive items and technologies.

33
Greater Publicity for Laws and Regulations on
Export Control and Education for Enterprises
  • To publish the full text of laws and regulations
    on export control on the web sites of competent
    government departments
  • To get export enterprises familiarized, by
    organizing regular training courses and lectures
    and distributing pamphlets, with policies, laws
    and regulations on export control as well as the
    procedures for export examination and approval to
    ensure that the enterprises implement them in
    real earnest and run their business according to
    law
  • To set up a hotline to timely clear up doubts or
    questions from the enterprises and to
    investigate and punish illegal exporters and make
    them public.
  • To encourages and guides the enterprises to build
    their own internal mechanisms for
    non-proliferation export control and implement
    accountability for non-proliferation in
    accordance with their own specific situations.
  • Some enterprises have set up offices for
    non-proliferation export control to disseminate
    information of relevant national policies and
    legislation, draw up specific measures for
    implementation within the enterprises, and
    supervise their own scientific research,
    production and business operations so as to
    ensure that the enterprises abide by national
    laws and regulations.

34
Future Priority
  • General training and education
  • Licensing related consulting (regulations and
    procedure)
  • ICP

35
Presentation Outline
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key elements of China XC
  • Case Study ICP in NORINCO

36
NORINCO Introduction
  • China North Industries Corporation (NORINCO) ,
    formally established in 1980 with approval of the
    Chinese government, is a giant enterprise group
    engaged in both products operation and capital
    operation, integrated with RD, manufacturing,
    marketing, and services. NORINCO mainly deals
    with defense products, petroleum mineral
    resources exploitation, international engineering
    contracting, optoelectronic products, civilian
    explosives chemical products, sports arms
    equipment, vehicles and logistics operation, etc.
    NORINCO has been ranked among the forefront of
    Chinas 500 largest state-owned enterprises in
    terms of total assets and revenue.

37
NORINCO ICP Elements
  • Management Commitment
  • Concrete Measures
  • ICP Offices
  • Export Compliance Instruction Manual
  • ICP Intranet
  • ICP Training
  • Management System
  • Screening System
  • Recordkeeping
  • Auditing
  • Encouragement and Penalty

38
The Commitment on Nonproliferation Export
Compliance Signed by the President of NORINCO
  • NORINCO holds firmly the position that
    proliferation of WMD and their means of delivery
    is conducive neither to world peace and
    stability, nor to Chinas security, and is
    absolutely in contrary to its value of a
    responsible corporation for the benefit of
    international community.
  • NORINCO affirms its unequivocal and emphatic
    support for Chinese governments policies
    regarding non-proliferation of Weapons of Mass
    destruction (WMD) and their means of delivery. As
    an authorized defense products and services
    supplier, in recognition of the sensitive nature
    of its core business, its responsibility of
    non-proliferation and its obligation of export
    control compliance, NORINCO commits to abide by
    Chinese governments non-proliferation and export
    control laws and relevant law enforcement fully
    and uncompromisingly.
  • Effective export controls must be a combined
    effort between governments and companies. In
    response to Chinese governments endeavor to
    strengthen non-proliferation and export control
    law enforcement, NORINCO chooses to take the lead
    of non-proliferation and export control
    compliance on corporate level.
  • Under the guidance of Chinese government
    agencies, specifically Ministry of Foreign
    Affairs, Commission of Science, Technology and
    Industry for National defense (COSTIND) and
    Ministry of Commerce (MOFCOM), by adopting
    international best practice, NORINCO actively
    pursues a sound internal compliance programs
    (ICP), which prove to be a major improvement for
    corporate internal control in compliance with
    Chinese governments law enforcement
    requirements, such as export registration,
    license, end-user and end-use certification,
    control list and relevant export control
    examination and approval.
  • All NORINCO employees will actively assist in the
    achievement of the corporate goal of export
    compliance. In particular, NORINCO employees
    involved in the export of the companys products,
    technology, and services will be familiar with,
    and strictly abide by, all applicable provisions
    of export control laws and regulations. NORINCO
    holds all executives of export-related divisions
    and subsidiaries account for the responsibility
    of non-proliferation and export control
    compliance.
  • By taking catch-all principal for export control,
    NORINCO attaches clear-cut and unambiguous
    priority to the goal of non-proliferation of WMD
    and their means of delivery over commercial
    interests. In practice, this means that even if a
    particular export transaction is legal according
    to export control laws and regulations, NORINCO
    in accordance with its corporate policy of
    voluntary self-restraint in export matters will
    neither directly nor indirectly supply products,
    technology or services if NORINCO has reason be
    believe that such items could be used by its
    customer or end-user for the development or
    production of WMD and their means of delivery.
  • In order to ascertain what products, technology
    and services, as well as which customer and
    end-user, should be regarded as sensitive,
    NORINCO will establish and maintain contact with
    all responsible Chinese government agencies,
    relevant NGOs and non-proliferation and export
    control experts for information, instruction and
    advice.
  • Proliferation of WMD and their means of delivery
    represents a global challenge, NORINCO deems it a
    necessity to confront the challenge through
    international cooperation. International
    community should enhance mutual understanding
    through confidence building. NORINCO attaches
    importance to and actively participates in
    international best practice sharing and
    cooperation on non-proliferation. For the purpose
    of continuous improvement of its internal
    compliance programs, NORINCO is open to cooperate
    and share compliance knowledge with its
    international peers, non-proliferation research
    institutes as well as foreign
  • government agencies.
  • This policy applies to all divisions and
    subsidiaries of NORINCO worldwide. The principles
    incorporated herein have been fully implemented
    within the framework of NORINCOs existing
    internal compliance programs. This policy will
    continuously be reviewed and audited in order to
    incorporate the latest development of
    non-proliferation and export control.

39
Concrete Measures
  • Authorizing ICP Office with Veto Power
  • Drawing up Guidance Advice of NORINCO on
    Nonproliferation Export Control
  • 1, Improving the importance on export
    compliance, and doing business on the basis of
    nonproliferation
  • 2, Founding and advancing ICP in NORINCO
  • 3, Strictly implementing the regulations,
    and attaching primary importance to high risk
    fields
  • 4, Strengthening the training and education
    on nonproliferation export control.
  • Signing the Letter of Responsibility on
    Nonproliferation Export Control

40
ICP Offices
41
Offices Responsibilities
  • ICP Council
  • ICP Council is the top management body in
    NORINCO on nonproliferation export compliance.
    The members of ICP Council include vice
    presidents and managers of the departments
    related export, such as ICP Office, Strategic
    Management Department, Finance Department and
    Legal Affairs Department. In charge of overseeing
    regulations and work goals on nonproliferation
    export compliance, determine the principles and
    plans on how to deal with serious compliance
    failure and authorize ICP Office to strictly
    manage high risk businesses.
  • ICP Office
  • ICP Office is the standing body to implement
    the compliance program and address the day-to-day
    export control issues. Its responsibilities
  • 1, Following the development of
    international nonproliferation and studying the
    impact on international military products trade.
  • 2, Grasping the laws, rules and regulations
    of the government on nonproliferation export
    control and keeping all employees of NORINCO
    updated on regulatory changes
  • 3, Drawing up the regulations on
    nonproliferation export compliance, and
    implementing them after the approval of ICP
    Council.
  • 4, According to the instruction of
    President and ICP Council, ICP Office checks the
    sensitive business, and exercises the power of
    veto.
  • 5, Appointing the functional personnel to
    screen export contracts related sensitive
    countries, regions and sensitive items.
  • 6, Applying for registration of dual-use
    items and technology export from MOFCOM
  • 7, Organizing the internal training on
    nonproliferation export control, and enhancing
    the communication with relevant governments and
    NGOs

42
Export Compliance Instruction Manual
  • NORINCO has compiled Manuals on Nonproliferation
    Export Compliance since 2003, which have been
    distributed to all employees.
  • The manuals contain all international conventions
    on nonproliferation, all relevant laws,
    regulations and control lists issued by Chinese
    government, as well as the policies and
    procedures of export compliance in NORINCO.
  • The manuals contain all international conventions
    on nonproliferation, all relevant laws,
    regulations and control lists issued by Chinese
    government, as well as the policies and
    procedures of export compliance in NORINCO.
  • ICP Office closely follows up the scent of
    international and internal
  • nonproliferation and keeps the manuals current.

43
ICP Intranet
  • NORINCO sets a column on nonproliferation in the
    intranet which will be updated.
  • The column contains the electronic version of the
    Manuals on Nonproliferation Export Compliance,
    the latest tendency of nonproliferation and new
    measures taken by the company, which provides
    evidence for the
  • employees to consult the laws and rules they need
    while a problem arise.
  • Export compliance intranet is a platform of
    training on export compliance

44
ICP Training
  • ICP Office organizes trainings on
    nonproliferation export control for all employees
    involved in export annually.
  • 1, New Employees / Once a Year
  • 2, Employees Involved in Defense Export /
    Twice a Year
  • 3, Employees Involved in Export from
    Subsidiaries / Once a Year
  • 4, Employees of Overseas Branches / Once a
    Year
  • 5, Retired Employees / Once a Year
  • Assigning employees at various level
  • to receive professional training
  • by the government or NGOs.
  • Assigning employees from administra-
  • tion, sales and law units to go abroad
  • for professional training.

45
Some Practices
  • NORINCO has to apply for export license from
    government agencies in charge of export control
    according to Regulations of the PRC on
    Administration of Arms Export.
  • NORINCO has standardized business processes, and
    put a high emphasis on inquiry as starting point
    of process.
  • Cooperating with famous company abroad, NORINCO
    has implemented advanced ERP system to
    standardize business processes.
  • NORINCO actively interacts with the government
    ministries and places itself under guidance.
  • NORINCO has actively used government resources,
    and founded the experts consultant system on
    nonproliferation export control.

46
Management System
  • ERP Management System
  • Cooperating with famous company abroad,
    NORINCO has imported and implemented the
    international standard ERP system.
  • Screening System
  • 1, As for export contracts related sensitive
    countries, items or technologies, NORINCO will
    strictly examine the information of buyers and
    end-user and end-use certificate in order to
    prevent the diversion risk of these items or
    technologies.
  • 2, The sensitive business is
  • handled and screened on
  • the case-by-case basis.
  • All inquiries and offers are
  • evaluated and monitored.

47
Screening System
  • Customer Screen System
  • Order Screen System
  • Products Screen System

48
Customer Screen System
49
Order Screen System
50
Products Screen System
51
Recordkeeping
  • NORINCO has founded Documents Management Office,
    and identified specific persons to maintain all
    records of transactions.
  • NORINCO continuously improves the information
    management systems and perfects the database of
    export in which the history transactions can be
    easily found out.
  • 1, Keep specific records eternally
  • 2, For common transactions, identify the
    period of time records must be kept according to
    relevant regulations
  • 50 years 15 years

52
Auditing
  • NORINCO audits defense transaction every year.
  • 1?Audits on ICP.
  • 2?Random audits on the transactions related
    sensitive countries and items.
  • ICP Office regularly audits the export
    transactions of subsidiaries with Audit
    Department of NORINCO.
  • China Arms Control and Disarmament Association
    (CACDA) assess the effect of ICP in NORINCO every
    year.

53
Encouragement and Penalty
  • The work of export compliance at different levels
    must be reflected in their performance
    evaluations.
  • The employee who doesnt comply with the
    companys regulations will be subject to the
    heavy penalty. If he violated Chinas export
    control laws and rules, he should be subject to
    criminal or civilian penalties.

54
Conclusion
  • Basic Policy
  • Relations with Multinational XC Mechanisms
  • Key Elements of China XC
  • Case Study ICP in NORINCO

55
Thank You !
  • My Contact
  • Mr. Li Genxin
  • Secretary General
  • China Arms Control and Disarmament Association
  • 3, Toutiao, Taijichang, Beijing, 100006
  • Telephone86-10-85119632
  • Email ligenxin_at_hotmail.com
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