Q&A Regarding the China's Foreign Trade Law (9)
| Q: |
After being penalized for importing or exporting goods that are prohibited from import or export, can the operator still engage in import and export activities? |
| A: |
From the date the administrative penalty decision takes effect or the date the criminal judgment becomes effective, the foreign trade authority under the State Council, or any other relevant department of the State Council, may, for a period of up to three years, refuse to accept applications from the offender for import or export quotas or licenses, or prohibit the offender from engaging in import and export activities of relevant goods or technologies for a period of not less than one year but not more than three years. |
| Q: |
What are the consequences of engaging in prohibited international trade in services? |
| A: |
Engaging in prohibited international trade in services, conducting restricted international trade in services without authorization, or failing to implement necessary measures as required by the Foreign Trade Law of China shall be dealt with and penalized in accordance with relevant laws and administrative regulations. Where laws and administrative regulations do not provide otherwise, the foreign trade authority under the State Council shall order rectification, confiscate illegal gains, impose a fine of one to five times the amount of illegal gains if such gains exceed RMB 500,000, or impose a fine of up to RMB 500,000 if there are no illegal gains or if such gains are less than RMB 500,000; where a criminal offense is constituted, criminal responsibility shall be pursued in accordance with law. |
| Q: |
After being penalized for engaging in prohibited international trade in services, can the operator still engage in international trade in services? |
| A: |
The foreign trade authority under the State Council may prohibit the offender from engaging in relevant international trade in services for a period of not less than one year but not more than three years, starting from the date the administrative penalty decision takes effect or the criminal judgment becomes effective. |
| Q: |
Does the China's Foreign Trade Law apply to China's separate customs territories? |
| A: |
The China's Foreign Trade Law does not apply to China's separate customs territories. |
| Q: |
When does the China's Foreign Trade Law come into effect? |
| A: |
The China's Foreign Trade Law shall come into effect on March 1, 2026. |

