Chapter One General Provisions

Article 1
In accordance with the "Law on Foreign Trade of the People's Republic of China", the "Administrative Provisions on Contracting Foreign Projects and Labor Cooperation Service of China" issued by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the "Articles of the Association of Foreign Contract Chamber of China", the "Trade Norms on Contact of Foreign Projects and Labor Cooperation Service of China (trial)" (hereinafter referred to as the Norms) hereby is formulated by Foreign Contract Chamber (hereinafter referred to as the Contract Chamber) in order to promote the contracting foreign projects and labor cooperation service, strengthen self-management in trade and normalize the contracting foreign projects and labor cooperation service.

Article 2
The Norms applies to all enterprises, economic organizations and their subsidiaries including branches & representative offices at abroad, which are engaged in contracting foreign projects and labor cooperation services, and have been authorized by national departments in charge of foreign trade and economic cooperation (hereinafter referred to as an enterprise).

Article 3
The Contract Chamber shall be responsible for instruction, coordination, service and supervision for contracting foreign projects and labor cooperation service according to the Norms.

Chapter Two Standard of Conduct

Article 4
When an enterprise undertakes contracting foreign projects and labor cooperation service, it must abide by relative Chinese laws, rules and regulations, and may not compromise the state, damage public interests and citizens' legal rights & interests. Meanwhile, it must abide by national and local laws and regulations of the country of the project, respect local customs and build up excellent reputation for the trade of contracting foreign projects and labor cooperation service.

Article 5
An enterprise must conduct legal operation within the business scope approved by the department in charge of foreign trade and economic cooperation. Any alteration of business scope, overrunning operation or attachment of any other economic organizations or individuals must be prohibited.

Article 6
When an enterprise is undertaking contracting foreign projects and labor cooperation service, it must fully understand the situation of politics, economy, laws and market of the country of the project, and credit of owner as well, seriously and carefully sign the contract and strictly execute it.

Article 7
An enterprise is prohibited to undertake or help others to undertake illegal immigration and pornographic services in the name of contracting foreign projects and labor cooperation service.

Article 8
An enterprise must be coordinated by the Contract Chamber, abide by its regulations of coordination and maintain order of operation of the whole trade when it is undertaking contracting foreign projects and labor cooperation service.

Article 9
In the case that an enterprise raises any objects to the coordination of the Contract Chamber, it should make appeal to the national department in charge of foreign trade and economic cooperation. Unless national department in charge of foreign trade and economic cooperation determines to suspend execution of the coordinating decision by the Contract Chamber, an enterprise cannot boycott the execution of the coordinating decision.

Article 10
When it is undertaking contracting foreign projects and labor cooperation services, an enterprise shall fully carry through ISO series of quality standard to ensure the quality of the project and safeguard reputation of the whole trade.

Article 11
An enterprise shall train all the labors exported according to relative state stipulations to ensure the quality of them.

Article 12
When an enterprise is undertaking contracting foreign projects and labor cooperation service, its middle and high rank of managerial personnel shall be trained on foreign trade and economic cooperation by the Contract Chamber according to relative state stipulations. As well, they shall obtain the qualification certificates of middle and senior manager of international economic cooperation enterprise.

Article 13
Contracts on export of labor service shall be signed between an enterprise and the labors exported to safeguard their legal rights and interest. In case their legal rights and interests are infringed, an enterprise shall be responsible for negotiation and settlement in time.

Article 14
When an enterprise is undertaking contracting foreign project and labor cooperation service, it shall strictly execute relative charging standards stipulated by the state and may not charge the labors exported any illegal fees at any items.

Article 15
An enterprise cannot undertake the following unlawful operations:

1. Accepting the attachment of any other economic organizations or individuals; and only charging the "brand use fee" while not involving in operation & management of the project, recruitment & management of the labors exported, and performance of responsibilities and obligations of the contract;

2. Subtracting the contracted project to other organizations which are unqualified;

3. Cooperating with illegal agencies on labor service both at home and abroad;

4. Cheating cooperative partners and labors exported with false advertisements and commitments;

5. Other illegal operations.

Article 16
An enterprise should undertake contracting foreign projects and labor cooperation service based on fair competition. An enterprise cannot take the following illegal competition to damage the interests of the state and the legal rights & interests of other enterprises:

1. Passing off or taking the liberty of using the name, qualification or performance of other enterprises; and providing false documents to domestic & overseas organizations and individuals;


2. Damaging the reputation of another enterprise by inventing & spreading false facts or revealing & providing the state of operation of another enterprise;

3. Pushing aside other enterprises by offering price lower than the cost of the project or labor service, or reducing the payment of labors exported;

4. Cheating the government, Contract Chamber and relative departments with dual contracts, false documents and certificates;


5. Other illegal competition.

Article 17
An enterprise must submit necessary and real documents to the Contract Chamber and relative departments in time according to their requirements.

Chapter Three Rewards and Punishment

Article 18
As for an enterprise that strictly abide by the Norms, the Contract Chamber should circulate a notice of commendation and recommend national departments in charge of foreign trade and economic cooperation to reward an enterprise.

Article 19
An enterprise that violates the Articles from 4 to 17 should be dealt with the following punishments:

1. Criticism and disciplinary warning should be given to an enterprise of a light case with slight effect, and recorded at file;

2. The Contract Chamber shall circulate a notice of criticism to an enterprise of a serious case with harmful effects in certain area, require to correct in set time and recommend national department in charge of foreign trade and economic cooperation to give it economic punishment;

3. The Contract Chamber shall recommend national department in charge of foreign trade and economic cooperation to give economic punishment and suspend its management right on contracting foreign projects and labor cooperation service to an enterprise of a serious case with more harmful effects. The member enterprise shall be placed on probation within the Chamber;

4. The Contract Chamber shall recommend national department in charge of foreign trade and economic cooperation to give economic punishment and cancel its management right for contracting foreign projects and labor cooperation service to an enterprise of an absolutely vile case with extremely harmful effects. The member enterprise shall be expelled from the Chamber;

5. An enterprise that has broken the law shall be prosecuted for its criminal liability.

Article 20
An enterprise shall have obligations to tip off the operations violating the Norms in the trade to the Contract Chamber or national department in charge of foreign trade and economic cooperation and assist to verify it. The Contract Chamber shall protect an enterprise that has reported true things.

Article 21
An enterprise, which is suspected having violated the Norms, shall actively cooperate with national department in charge of foreign trade and economic cooperation and the Contract Chamber to investigate and verify the case. In case an enterprise has violated the Norms and drags its feet, it shall be given a heavier punishment.

Article 22
The Contract Chamber shall inform an enterprise in written form and give audience to its appeal before it makes decision of punishment on an enterprise that has violated the Norms.

Chapter Four Supplementary Articles

Article 23
The Standing Body of the Contract Chamber shall be responsible for the execution of the articles of Chapter Three. Article 19, Section 4 shall be executed with the approval of the Standing Body.

Article 24
The Norms shall be construed by China Foreign Contract Chamber.

Article 25
The Norms shall be put into trial on January 13, 2000 when it is examined and adopted at the Fifth Meeting of the Third Council of the China Foreign Contract Chamber.