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Regulations on the Import of Technology to the Xia
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1984.07.14
FUJIAN PROVINCE
 REGULATIONS ON THE IMPORT OF TECHNOLOGY TO THE XIAMEN SPECIAL ECONOMIC
ZONE
 (Approved at the Eighth Session of the Standing Committee of the
Sixth Fujian Provincial People's Congress on July 14, 1984)
 @@  Article  1.  The  present  set of regulations is drawn up in
accordance with relevant laws and decrees of the People's Republic of
China.
  @@  Article   2.   The  regulations  apply  to  the  SEZ
enterprises  and institutions  and  other  economic organizations
(hereinafter referred to as the  licensee) import or transfer of
technology with payment from foreign or Hongkong, Macao and Taiwan
enterprises, other economic organizations and individuals (hereinafter
referred to as the licensor).
 @@  Article  3.  The  technology  thus  acquired  must be both
practical and advanced, and may bring about marked economic benefits.
Technology here is meant to include:
(1) technology with valid patent right;
(2) technology with its patent right being applied for; and
(3) proprietary technology.
 @@  Article  4.  Technology that produces the following effects is
forbidden to be imported:
 (1) that which harms public order of society or violates social
ethics; and
(2) that which undermines ecological balance and harms the environment.
 @@  Article 5. Technology transfer or acquisition may take any
of the following forms:
(1) licensing;
(2) technical consultancy or technical service;
 (3)  using  patented  technology  or proprietary know-how as
capital  contribution  in  investment,  or  entering  into  joint
operation with the licensee;
(4) compensation trade or co-production; and
(5) projects under contract or other forms.
 @@  Article  6.  The  licensee  (recipient)  may  enjoy special
preferential terms  set by the Xiamen City People's Government if the
imported technology meets  one of the following conditions, and may
apply to a SEZ-based state bank for low-interest loans or financial
assistance:
 (1)  technology  which  is  examined  and proved by the state
scientific and research department as up to the world advanced level;
 (2)  that  which can markedly improve the competitiveness of the
products on the international market;
 (3)  that which may bring about marked economic results when applied
to the technical upgrading of enterprises; and
 (4)  that  which  is  indispensable  to  the requirements of the
Xiamen City People's Government.
 @@  Article  7.  In technology acquisition, the licensee should
apply in writing  to  an organization authorized by the Xiamen
City  People's Government and should attach a letter of intent about
the technology to be acquired and a report on the feasibility study.
When examined and approved, a  contract is to be signed between the
licensee  and licensor (supplier) and submitted  to  the  higher
authorities for approval. The approval department should reply within
44 days after receipt of the application.
 The  contract comes into force on the date of approval, and it
may  be  cancelled  by  the  approval  department if it is not
implemented within six months. The parties involved are allowed to
apply for an extension before expiry if they have a valid reason(s).
 @@  Article  8. Contracts must also have the following provisions
apart from those that are generally included in Sino-foreign economic
contracts:
(1) definition of key terms;
 (2)  subject  and  scope  of the technology involved, list of
technical information and the date of delivery;
 (3) progress of implementation, technical service and technical
training;
(4) the use of trademark;
(5) warranty, checking and acceptance of the technology;
 (6)  the  rights  and  obligations  of  both sides to use and
improve the technology;
(7) secrecy clause;
 (8) the way to work out and pay the remuneration for the technology;
and
(9) liquidated liabilities (damages).
 @@  Article  9.  Invalidation  of  technology transfer agreement
clauses if they are formed to include any of the following provisions:
(1) payment for expired or invalid patent rights;
 (2) restrictions on the licensee to licensing-in technology from
other sources;
 (3)  restrictions on improvement or development of the technology
in the course of application;
(4) obviously unreasonable conditions attached.
 @@ Article 10. In transferring patented technology of an unexpired
life, the  licensor  should provide the licensee with a manual on the
patent and a duplicate  or  a copy of the letters patent. The
certificate of patent right transfer, if any, should also be provided.
 In  transferring  technology  for which the patent is pending, the
licensor should  provide  the  licensee with such patent application
documents as the let

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