Notice on issuing the Interim Measures for the Administration of Innovative Procurement Methods in Government Procurement Cooperation

Notice on issuing the Interim Measures for the Administration of Innovative Procurement Methods in Government Procurement Cooperation

Treasury [2024] 13

Central budget units, Departments of Finance (bureaus) of provinces, autonomous regions, municipalities directly under the Central Government, and cities separately listed under the Plan, and Finance Bureau of Xinjiang Production and Construction Corps:

In order to implement the Plan for Deepening the Reform of the Government Procurement System and improve the system for supporting scientific and technological innovation in government Procurement, the Ministry of Finance has formulated the Interim Measures for the Management of Cooperative Innovative Procurement Methods in Government Procurement, which are hereby issued to you for your compliance.

Annex: Interim Measures for the Management of Innovative Procurement Methods in Government Procurement Cooperation

　　Ministry of Finance

April 24, 2024

Attachment

Interim Measures for the Administration of Innovative Procurement methods in government Procurement Cooperation

　　Chapter 1 General rules

Article 1 In order to implement the requirements of the Party Central Committee and the State Council on accelerating the implementation of the innovation driven development strategy, support the application of scientific and technological innovation, and in accordance with relevant laws such as the Government Procurement Law of the People's Republic of China and the Science and Technology Progress Law of the People's Republic of China, these Measures are formulated.

Article 2 Cooperative innovation procurement refers to the procurement method in which the purchaser invites suppliers to cooperate in research and development, shares research and development risks, and purchases innovative products that have been successfully developed according to the quantity or amount specified in the research and development contract. The collaborative innovation procurement method is divided into two stages: ordering and initial purchase.

Ordering refers to the activity in which the purchaser sets research and development goals, collaborates with suppliers to develop innovative products, and shares research and development risks.

First purchase refers to the activity of the purchaser purchasing a certain quantity or amount of corresponding products according to the research and development contract for innovative products that have been successfully developed.

The innovative products referred to in the preceding paragraph shall have substantial technological innovation, including new technological principles, ideas or methods. The modification of existing products and the verification, testing, and use of existing technological achievements without substantial technological innovation do not fall within the scope of innovative products stipulated in these measures.

Article 3 If the procurement project complies with the national plan for the development of science and technology and related industries, is conducive to the implementation of major national strategic goals and tasks, and meets any of the following conditions, cooperative innovation procurement methods may be used for procurement:

（1） Existing products or technologies in the market cannot meet the requirements and require technological breakthroughs;

（2） Based on the research and development of innovative products, forming new paradigms or solutions that can significantly improve functional performance and significantly enhance performance;

（3） Other circumstances stipulated by the financial department of the State Council.

Article 4 Central and provincial (including cities specifically designated in the state plan) budget units may adopt cooperative innovation procurement methods for procurement projects that meet the conditions stipulated in Article 3 of these Measures. Central and provincial budget units can carry out cooperative innovation procurement, and can also authorize their budget units to carry out cooperative innovation procurement. The municipal budget unit in charge of districts may adopt the cooperative innovation procurement method with the approval of the provincial competent department. For implementing cooperative innovation procurement, research and development funds should be listed in the department budget.

The purchaser may entrust a procurement agency to act as an agent for cooperative innovative procurement, and the procurement agency shall carry out procurement activities in accordance with the law within the scope of the commission.

Article 5 Cooperative innovation procurement shall establish a reasonable risk sharing and incentive mechanism, encourage state-owned enterprises, private enterprises, foreign-invested enterprises, universities, research institutions and other suppliers with research and development capabilities to actively participate, give full play to the radiation effect of financial funds on the research and development of applied technologies in the whole society, and promote scientific and technological innovation.

Article 6 Collaborative innovation procurement shall comply with the requirements of relevant national security laws and regulations. Relevant national departments shall conduct security reviews on cooperative innovation procurement activities involving national security in accordance with the law.

　　Chapter 2 Requirement Management

Article 7 Before conducting cooperative innovation procurement, the purchaser shall conduct market research and expert argumentation, scientifically set the minimum research and development goals, maximum research and development expenses, and research and development period for cooperative innovation procurement projects.

The minimum R&D goals include the main functions and performance of innovative products, the main service content, service standards, and other output goals.

The maximum R&D cost includes the expenses for compensating R&D costs and the initial purchase cost of innovative products for the project, and a certain incentive fee can also be set.

Article 8 For cooperative innovation procurement, except for procurement from a limited scope or a sole supplier, the purchaser shall determine the research and development supplier through open competition.

Article 9 In cooperative innovation procurement, the purchaser shall set qualification conditions based on the research and development capabilities required by the supplier, in accordance with the requirements that are conducive to reducing research and development risks. This may include existing patents, computer software copyrights, proprietary technology categories necessary for cooperative innovation procurement projects, research and development performance of similar projects, and the research foundation already possessed by the supplier.

Two or more suppliers can form a consortium to participate in collaborative innovation procurement.

The research and development activities of cooperative innovation procurement should be conducted within the territory of China. Except for procurement projects involving national security and state secrets, the purchaser shall ensure equal participation of domestic and foreign enterprises in cooperative innovation procurement activities.

Article 10 The purchaser shall implement relevant policies on government procurement to support the development of small and medium-sized enterprises when conducting cooperative innovation procurement. The purchaser shall set up a procurement package specifically for small and medium-sized enterprises based on the situation of the procurement project and their ability to undertake it; For comprehensive procurement projects where the work content is difficult to separate, the purchaser should require the supplier who has obtained the procurement contract to subcontract a certain proportion of the procurement project to small and medium-sized enterprises, in order to promote their participation in innovative research and development activities.

Article 11 All types of intellectual property rights generated in cooperative innovation procurement shall, in principle, belong to the supplier in accordance with relevant laws and regulations such as the Civil Code of the People's Republic of China, the Law of the People's Republic of China on Scientific and Technological Progress, and intellectual property rights, except as otherwise provided by law or agreed upon in the research and development contract.

If intellectual property involves national security, national interests, or significant public interests, it shall be agreed that it shall be enjoyed by the purchaser or jointly enjoyed.

Article 12 Before conducting cooperative innovation procurement, the purchaser shall formulate a procurement plan. The procurement plan includes the following contents:

（1） The minimum research and development goals, maximum research and development costs, application scenarios, and research and development deadlines for innovative products;

（2） Supplier invitation method;

（3） Composition of negotiation team, selection method of evaluation experts, evaluation method, and preliminary evaluation criteria;

（4） The cost range for providing R&D cost compensation and the expense limit for R&D cost compensation for the project;

（5） Whether to conduct mid-term negotiations for research and development;

（6） Preliminary opinions on intellectual property ownership, benefit distribution, and usage methods;

（7） Requirements for iterative upgrade services of innovative products;

（8） The main terms that should be included in the research and development contract;

（9） Research and development risk analysis and risk control measures;

（10） Other matters that need to be determined.

The purchaser shall conduct consultation and demonstration on the scientificity, feasibility, compliance, etc. of the procurement plan, and implement it after completing the internal review and approval procedures in accordance with the relevant provisions of the Government Procurement Demand Management Measures.

Article 13 The purchaser shall, in accordance with relevant government procurement regulations, timely publish information on cooperative innovation procurement projects, including procurement intentions, procurement announcements, research and development negotiation documents, transaction results, research and development contracts, first purchase agreements, etc., on the media designated by the finance department of the people's government at or above the provincial level, except for information involving state secrets, trade secrets, and other information that cannot be disclosed in accordance with laws, administrative regulations, and relevant national provisions.

Article 14 Procurers, suppliers, evaluation experts, and relevant personnel shall strictly keep confidential any state secrets, work secrets, and trade secrets obtained during their participation in cooperative innovation procurement activities. Except for publicly available information, the information provided by the parties shall not be used for any other purpose without their consent.

　Chapter 3 Ordering procedures

Article 15 The purchaser shall form a negotiation team, which shall consist of an odd number of five or more representatives of the purchaser and evaluation experts. The purchaser shall independently select evaluation experts in the corresponding professional field. The evaluation experts should include one legal expert and one economic expert. The specific composition ratio of the negotiation team, the selection method of evaluation experts, and the personnel adjustment procedures during the procurement process shall be determined in accordance with the internal control management system of the purchaser.

The negotiation team is responsible for supplier qualification review, innovative concept exchange, R&D competition negotiation, mid-term R&D negotiation, and first purchase evaluation.

Article 16 The purchaser shall issue a notice of cooperative innovation procurement to invite suppliers, but if it is limited by infrastructure, administrative licensing, or the need to use irreplaceable intellectual property or proprietary technology, and can only purchase from a limited scope or only one supplier, the purchaser may directly issue an invitation for cooperative innovation procurement to all eligible suppliers.

If suppliers are invited in the form of announcements, the announcement period shall not be less than five working days. The announcement and invitation letter for cooperative innovation procurement should include the purchaser and the name of the procurement project, the minimum research and development goals, maximum research and development expenses, application scenarios, and research and development period of the innovative product, the qualification requirements for suppliers, and the time and place for suppliers to submit application documents for participating in cooperative innovation procurement. At the same time, the purchaser should clearly state in the cooperative innovation procurement announcement and invitation letter that the minimum research and development goals and maximum research and development expenses may be substantially adjusted based on the exchange of innovative concepts.

The time for submitting the application documents for participating in collaborative innovation procurement shall not be less than 20 working days from the date of issuance of the procurement announcement or invitation letter. The purchaser shall specify in the announcement of cooperative innovation procurement and the invitation letter for cooperative innovation procurement whether to accept the participation of the consortium. If not specified, the participation of the consortium shall not be refused.

The negotiation team shall review the qualifications of suppliers in accordance with the law. If there are only two or one suppliers who have submitted application documents or passed the qualification review, they can continue to carry out procurement activities in accordance with the provisions of these measures.

Article 17 The negotiation team shall concentrate on exchanging innovative concepts with all qualified suppliers, including the minimum research and development goals, maximum research and development costs, application scenarios, and other relevant content of the procurement plan for innovative products.

In the exchange of innovative concepts, the negotiation team should comprehensively and timely answer supplier questions. When necessary, the purchaser or its authorized negotiation team can organize suppliers to conduct centralized Q&A and on-site inspections.

If the purchaser makes substantial adjustments to the content of the procurement plan based on the exchange of innovative concepts, necessary internal review and approval procedures shall be carried out in accordance with the relevant provisions of the internal control management system.

Article 18 The purchaser shall form a research and development negotiation document based on the results of the exchange of innovative concepts. The main contents of the R&D negotiation document include:

（1） The minimum research and development goals, maximum research and development costs, application scenarios, research and development deadlines, and relevant information for innovative products;

（2） Number of research and development suppliers;

（3） Provide a cost range and limit for compensating the R&D costs of a single R&D supplier, and specify the amount of incentive fees if additional incentive fees are set;

（4） The first purchase quantity or amount of innovative products;

（5） The evaluation methods and standards, the main evaluation factors and their weights that cannot be changed during the negotiation process, and whether a two-stage evaluation is adopted;

（6） Response requirements for R&D schedule and corresponding mid-term negotiation stage division;

（7） The cost range and amount of R&D cost compensation at each stage, as well as the response requirements for landmark achievements;

（8） The payment method, time, and conditions for R&D cost compensation expenses;

（9） Acceptance methods and standards for innovative products;

（10） Evaluation criteria for first purchase products;

（11） Response requirements regarding intellectual property ownership, benefit distribution, and usage methods;

（12） Implementing policies to support the development of small and medium-sized enterprises;

（13） Requirements for iterative upgrade services of innovative products;

（14） The main terms of the research and development contract;

（15） Response document preparation requirements, submission method, submission deadline and location, as well as the validity period of the response document;

（16） Other matters stipulated by financial departments at or above the provincial level.

The evaluation factors referred to in these measures mainly include the supplier's R&D plan, the supplier's proposed R&D cost compensation amount and initial product purchase price quotation, the completion time of R&D, and the after-sales service plan for innovative products. Among them, the proportion of the score of the supplier's research and development plan to the total score shall not be less than 50%.

The landmark achievements referred to in these measures include detailed design schemes for innovative products, verification of technical principles in laboratory environments, successful development of key components of innovative products, production of model prototypes that meet requirements, and innovative products passing the purchaser's trial and performance acceptance.

Article 19 The purchaser shall provide R&D negotiation documents to all suppliers participating in the exchange of innovative concepts and invite them to participate in R&D competition negotiations. The period from the date of issuance of the R&D negotiation document to the deadline for submission of the first response document by the supplier shall not be less than ten working days.

The purchaser may make necessary clarifications or modifications to the R&D negotiation documents that have been issued, but shall not change the subject matter and qualification conditions of the procurement. If the clarification or modification of the content may affect the preparation of the response document and result in insufficient preparation time for the supplier, the purchaser shall postpone the submission of the response document in accordance with the provisions of the R&D negotiation document.

Article 20 Suppliers shall prepare response documents based on the R&D negotiation documents and make substantive responses to the requirements of the R&D negotiation documents. The response file includes the following contents:

（1） Supplier's research and development plan;

（2） R&D completion time;

（3） In response to the quotation, the supplier shall provide separate quotations for the R&D cost compensation amount and the first purchase product amount, and each shall not exceed the R&D cost compensation limit and first purchase cost specified in the R&D negotiation documents for a single R&D supplier. The initial purchase amount of the product includes not only the purchase cost of the innovative product itself, but also the operating and maintenance costs of the innovative product for a certain period of time in the future;

（4） The cost range and amount of R&D cost compensation for each stage;

（5） Acceptance methods and standards for innovative products;

（6） After sales service plan for innovative products;

（7） Intellectual property ownership, benefit distribution, usage methods, etc;

（8） Iterative upgrade service plan for innovative products;

（9） Implement the response content to support the development of small and medium-sized enterprises and other policy requirements;

（10） Other content that needs to be responded to.

The R&D plan of the supplier referred to in these measures includes the expected functions, performance, service content, service standards, and other output goals that the R&D product can achieve; The proposed technological roadmap and its advantages for research and development; Possible risks that may affect research and development and their control measures; The composition of the R&D team, the professional abilities and experience of team members; R&D schedule and explanation of milestone achievements at each stage.

Article 21 The negotiation team shall conduct separate negotiations with a single supplier and refine and adjust the relevant content. The main contents of the negotiation include:

（1） The minimum research and development goals, acceptance methods, and acceptance standards for innovative products;

（2） Supplier's research and development plan;

（3） R&D completion time;

（4） The cost range and amount of R&D cost compensation, as well as the initial purchase amount of the product;

（5） Evaluation criteria for R&D competitive negotiations;

（6） The cost range and amount of R&D cost compensation for each stage;

（7） Evaluation criteria for first purchase products;

（8） Intellectual property ownership, benefit distribution, usage methods, etc;

（9） Iterative upgrade service plan for innovative products;

（10） Possible risks and their control measures in the performance of R&D contracts.

In negotiations, the negotiation team may make substantial changes to the relevant content of the negotiation document based on the negotiation situation, but shall not lower the minimum research and development goal, increase the maximum research and development cost, or change the main evaluation factors and their weights in the negotiation document.

After the negotiation is completed, the negotiation team will determine the final negotiation document based on the negotiation results and notify all participating suppliers in writing at the same time. The supplier shall submit the final response document as required, and the negotiation team shall give the supplier a response time of no less than five working days. If there are only two or one suppliers submitting the final response documents, the procurement activities can continue in accordance with the provisions of this method.

Article 22 The negotiation team shall conduct a review of suppliers whose response documents meet all substantive requirements of the R&D negotiation documents, and recommend successful candidates in descending order of review scores.

According to the negotiation document, the negotiation team can conduct a two-stage review of the R&D proposal and other parts of the supplier's response document. The R&D proposal will be reviewed first, and if the R&D proposal score reaches the specified ranking, the other parts will be comprehensively reviewed. The candidates for the transaction will be determined in descending order of the total score.

Article 23 The purchaser shall determine the R&D suppliers based on the number of R&D suppliers specified in the negotiation documents and the order of the recommended candidates for the transaction by the negotiation team. The purchaser may also authorize the negotiation team in writing to directly determine the R&D suppliers. The maximum number of research and development suppliers shall not exceed three. If the number of successful candidates is less than the number of research and development suppliers specified in the negotiation documents, the purchaser may determine all successful candidates as research and development suppliers, or may restart government procurement activities. The purchaser shall sign a research and development contract with the research and development supplier in accordance with the law.

For purchases that can only be made from a single supplier, the purchaser and the supplier shall follow the principles stipulated in these measures, negotiate and determine a reasonable price based on research and development costs and comparable project contract prices, clarify the functions and performance of the innovative product, the completion time of research and development, the cost range and amount of research and development cost compensation, the amount of the first purchased product, the schedule of research and development, and the corresponding division of mid-term negotiation stages for research and development.

Article 24 The purchaser shall, in accordance with the provisions of the R&D contract, organize a negotiation team to conduct mid-term negotiations with the R&D supplier at different stages of R&D on issues such as R&D progress, landmark achievements and their acceptance methods and standards, and the cost range and amount of R&D cost compensation. The relevant content shall be refined and adjusted according to the progress of R&D, but the compensation cost range of each R&D supplier at each stage shall not exceed the cost range of R&D cost compensation stipulated in the R&D contract, and the sum of the cost compensation amounts at each stage shall not exceed the R&D cost compensation amount stipulated in the R&D contract. Mid stage negotiations for research and development should be completed before the start of each stage.

After the agreed deadline for each stage expires, the R&D supplier shall submit a results report and cost explanation, and the purchaser shall pay the R&D cost compensation fee based on the R&D contract agreement and the mid-term negotiation results. If the iconic achievements provided by the R&D supplier meet the requirements, they will enter the next R&D stage; If the R&D supplier fails to complete the landmark results as agreed, they will be eliminated and the R&D contract will be terminated.

Article 25 For the final finalized innovative products and qualified samples submitted by R&D suppliers, the purchaser shall conduct acceptance in accordance with the acceptance methods and standards stipulated in the R&D contract, and may invite members of the negotiation team to participate in the acceptance.

　Chapter 4 First purchase procedure

Article 26 The purchaser shall carry out the initial purchase of innovative products in accordance with the provisions of the research and development contract.

If only one innovative product developed by a research and development supplier passes the acceptance inspection, the purchaser directly determines its first purchased product. If two or more innovative products developed by R&D suppliers pass the acceptance inspection, the purchaser shall organize a negotiation team to review and determine the first purchase product of one R&D supplier's innovative product based on the evaluation criteria stipulated in the R&D contract.

The first purchase review comprehensively considers the functionality, performance, price, after-sales service plan, etc. of the innovative product, and determines the first purchase product based on the principle of optimal cost-effectiveness. At this time, the R&D supplier's quotation for the initial purchase amount of the product shall not exceed the initial purchase cost specified in the R&D negotiation document.

The purchaser shall publish the information of the first purchased product on the media designated by the finance department of the people's government at or above the provincial level within ten working days after determining the first purchased product, and sign an innovative product first purchase agreement with the first purchased product supplier in accordance with the agreed quantity or amount of the innovative product first purchase in the research and development contract, clarifying the functions, performance, service content and standards of the first purchased product, the quantity, unit price and total amount of the first purchased product, the delivery time of the first purchased product, the payment method and conditions of the funds, etc., as a supplementary agreement to the research and development contract.

Article 27 During the validity period of the R&D contract, the supplier shall provide iterative upgrade services for the first purchased product in accordance with the R&D contract, and replace the original first purchased product with the upgraded innovative product.

If the purchaser needs to adjust the cost due to the adjustment of innovative product functions and performance goals, the additional cost shall not exceed 10% of the initial purchase amount.

Article 28 If other purchasers have a demand, they may directly purchase innovative products published on designated media, or may entrust suppliers to customize and modify innovative products without reducing their core technical parameters.

If other purchasers purchase innovative products, they shall voluntarily sign a procurement contract with the supplier at a price not higher than the initial purchase price before the termination of the research and development contract for the innovative product.

Article 29 The financial department of the State Council, in conjunction with the relevant industry regulatory departments of the State Council, shall select key products from the initial purchase and formulate corresponding procurement demand standards, and recommend their use in government procurement; Compulsory procurement can be implemented for innovative products related to national security.

　　Chapter 5 Research and development contract management

Article 30 The purchaser shall sign a research and development contract based on all substantive requirements of the research and development negotiation documents and the response documents of the research and development supplier. The R&D contract should include the following contents:

（1） The names, addresses, and contact information of the purchaser and the research and development supplier;

（2） Procurement project name and number;

（3） The functionality, performance, service content, service standards, and other output goals of innovative products;

（4） The cost range and amount of R&D cost compensation, and if there are additional incentive expenses, the amount of incentive expenses;

（5） The quantity, unit price, and total amount of the first purchase of innovative products;

（6） R&D schedule and corresponding mid-term negotiation stage division;

（7） The cost range and amount of R&D cost compensation for each stage, as well as landmark achievements;

（8） The payment method, time, and conditions for R&D cost compensation expenses;

（9） Innovative product acceptance methods and standards;

（10） First purchase product evaluation criteria;

（11） After sales service and iterative upgrade service plan for innovative products;

（12） Agreement on intellectual property ownership, distribution of benefits, and usage methods;

（13） Implementing policies to support the development of small and medium-sized enterprises;

（14） R&D contract period;

（15） Possible risks and their control measures during contract performance;

（16） Confidentiality of technical information and materials;

（17） Termination of the contract;

（18） Liability for breach of contract;

（19） Dispute resolution methods;

（20） Other matters that need to be agreed upon.

If the scope and amount of compensation costs and landmark achievements for each stage stipulated in the R&D contract are refined and adjusted during the mid-term negotiations, the purchaser shall sign a supplementary agreement with the R&D supplier regarding the change matters.

Article 31 The term of a research and development contract includes the period for innovative product research and development, iterative upgrades, and initial purchase delivery. Generally, it shall not exceed two years, and for major cooperative innovation procurement projects, it shall not exceed three years.

Article 32 R&D contracts are cost compensation contracts. The scope of cost compensation includes equipment costs, business expenses, labor costs, and indirect expenses actually invested by suppliers in the research and development process.

The purchaser shall pay the R&D cost compensation and incentive fees to the R&D supplier in accordance with the R&D contract.

For cooperative innovation procurement projects specifically targeting small and medium-sized enterprises, the joint agreement or subcontracting intention agreement should clearly stipulate the sharing of risks in accordance with the cost compensation provisions of the research and development contract.

Article 33 The purchaser shall make advance payments to the supplier of the first purchased product for the production and manufacturing of innovative products. The advance payment amount shall not be less than 30% of the total initial purchase amount stipulated in the initial purchase agreement.

Article 34 In the performance of a research and development contract, if the purchaser believes that continuing to perform the research and development contract is meaningless due to the emergence of similar products to be developed in the market, the purchaser shall promptly notify the research and development supplier to terminate the research and development contract and pay the corresponding research and development cost compensation fees to the research and development supplier in accordance with the provisions of the research and development contract.

If the R&D fails or partially fails due to insurmountable technical difficulties, the R&D supplier shall promptly notify the purchaser to terminate the R&D contract and take appropriate remedial measures to reduce losses. The purchaser shall pay the corresponding R&D cost compensation fees to the R&D supplier in accordance with the R&D contract. If the R&D work is significantly delayed, stalled or failed due to the R&D supplier's violation of the contract, the purchaser may terminate the R&D contract, and the R&D supplier shall bear the corresponding breach of contract liability.

　　Chapter 6 Dispute settlement, supervision and inspection and legal liability

Article 35 If a supplier believes that the process of inviting participation in cooperative innovation procurement or qualification review has harmed their legitimate rights and interests, they may raise questions or complaints in accordance with the law.

Suppliers participating in R&D competition negotiations, mid-term R&D negotiations, and first purchase reviews may raise questions or complaints in accordance with the law if they believe that their legitimate rights and interests have been harmed by the R&D negotiation documents, procurement process, and transaction results.

Article 36 The financial department shall strengthen the supervision and inspection of cooperative innovation procurement activities in accordance with the law. If the inspection finds that the purchaser, procurement agency, or supplier has violated the provisions of these Measures, the financial department shall order them to make corrections within a specified period of time.

Article 37 If a party violates the provisions of these Measures and, after being ordered to rectify within a specified period, still affects or may affect the transaction results or contract performance, it shall be dealt with in accordance with government procurement laws, administrative regulations, and rules.

Article 38 If a party involved in government procurement violates the provisions of these Measures and causes losses to others, they shall bear civil liability in accordance with the law.

　　Chapter 7 Supplementary Provisions

Article 39 If a cooperative innovation procurement project involves state secrets, the procurement agency's commission, supplier qualification conditions, scope of competition, information release, etc. shall be executed in accordance with relevant regulations on classified government procurement.

Article 40 The financial departments of each province, autonomous region, and municipality directly under the Central Government may formulate specific implementation measures in accordance with these Measures.

Article 41 The term 'within the territory of China' referred to in these Measures refers to the administrative jurisdiction of the People's Republic of China that is subject to the Customs Law of the People's Republic of China, and does not include separate customs border areas such as Hong Kong, Macao, and Kinmen and Matsu in Taiwan.

Article 42 These Measures shall come into effect on June 1, 2024.