Administrative Regulations on Contracting Foreign Projects (Revised in 2017)

Administrative Regulations on Contracting Foreign Projects (Revised in 2017)
Administrative Regulations on Contracting Foreign Projects (Revised in 2017)

Order of the State Council of the People's Republic of China No.676

March 1, 2017

(Promulgated by the Order of the State Council of the People's Republic of China No. 527 on July 21, 2008; and revised in accordance with the Decision of the State Council on Revising and Repealing Certain Administrative Regulations on March 1, 2017)

Chapter I General Provisions

Article 1 These Regulations are formulated to regulate the administration of the contracting of foreign projects and enhance the sound development of the contracting of foreign projects.

Article 2 For the purpose of these Regulations, the term "contracting foreign project" refers to an activity of a Chinese enterprise or any other unit (hereinafter referred to as unit) of contracting an overseas construction project (hereinafter referred to as construction project).

Article 3 The state encourages the units to contract foreign projects and improve the quality and level of such projects.
The relevant departments under the State Council shall formulate and improve the policies and measures favorable for contracting foreign projects, and establish and improve the service system and risk prevention mechanism for contracting foreign projects.

Article 4 When contracting foreign projects, the units shall safeguard national interests, social public interests and the legal rights and interests of their staff being sent abroad.
A unit contracting foreign project shall abide by the law of the country or region where the construction project is located, stick by the contract, respect the local customs and habits, pay attention to ecological and environmental protection and promote the local economic and social development.

Article 5 The competent commerce authorities of the State Council shall take charge of the supervision and administration of the foreign project contracting activities, and the relevant departments under the State Council shall take charge of the relevant administrative work within their respective scope of duties and functions.
The competent commerce authorities of the State Council shall organize and arrange construction enterprises to participate in contracting foreign projects.
The competent department of commerce of the people's government of a province, autonomous region or municipality directly under the Central Government shall take charge of the supervision and administration of the foreign project contracting activities under their respective jurisdiction.

Article 6 Any association or chamber in contracting foreign projects shall provide information and training services thereabout for its members according to its articles of association, work out industrial norms according to law, give play to its role of coordination and self-discipline, safeguard fair competition and protect the interests of its members.

Chapter II Foreign Project Contracting Activities

Article 7 The competent commerce authorities of the State Council shall, together with other relevant departments of the State Council, establish a safety risk assessment mechanism of foreign projects, publishing the safety appraisal results in the relevant countries and regions on a regular basis so as to provide pre-warning information in a timely manner and guide foreign project contractors to do well the safety protection.

Article 8 No foreign project contractor may contract any project at an illegitimate low price or engage in collusive tendering or commercial bribery.

Article 22 Where any foreign project contractor falls under any of the following circumstances, the competent commerce authorities shall order it to correct, and impose a fine of not more than RMB50,000 but not less than RMB20,000 upon it; impose a fine of not more than RMB10,000 but not less than RMB5,000 upon the main principal if it refuses to correct:
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