INTERIM PROVISIONS ON ADMINISTRATION OF ENVIRONMENTAL PROTECTION IN CASES OF WASTES IMPORT

The State Environmental Protection Administration, the Ministry of Foreign Trade and Economic Cooperation, the General Administration
of Customs, the State Administration for Industry and Commerce

Notice of the State Environmental Protection Administration, the Ministry of Foreign Trade and Economic Cooperation, the General Administration
of Customs and the State Administration for Industry and Commerce on Interim Provisions on Administration of Environmental Protection
in Cases of Wastes Import

Huan Kong [1996] No. 204

The environmental protection administration of every province, autonomous region, municipality directly under the Central Government
and every city specifically designated in the state plan, the Foreign Economic and Trade Commission (or Bureau), the Administration
for Industry and Commerce, the Sub-Administration of Customs of Guangdong, the customs offices directly affiliated to the General
Administration of Customs￿￿the commodity inspection bureau directly affiliated to the State Commodity Inspection Bureau, the municipal
special commissioners￿￿ offices of the Ministry of Foreign Trade and Economic Cooperation:

Interim Provisions on Administration of Environmental Protection in Cases of Wastes Import are hereby promulgated and please carry
out.

Notice is hereby given.

The State Environmental Protection Administration

The Ministry of Foreign Trade and Economic Cooperation

The General Administration of Customs

The State Administration for Industry and Commerce

March 1, 1996

Interim Provisions on Administration of Environmental Protection in Cases of Wastes Import

Chapter I General Provisions

Article 1

These Provisions are formulated in accordance with the Law of the People’s Republic of China on the Prevention and Control of Solid
Wastes Pollution to the Environment and relevant laws and for the purposes of strengthening the environmental management on import
of wastes and preventing the environmental pollution caused by imported wastes.

Article 2

These Provisions are applicable to the activities of import of wastes and environmental supervision and management within the territory
of the People’s Republic of China.

Article 3

It is forbidden to dump, pile or dispose of wastes imported from abroad in China.

Import of wastes that could be used as raw materials is restricted and, if import of such wastes is necessary, it must be governed
by these Provisions.

Article 4

All units and individuals have the right to expose units which illegally import wastes to the competent administrative departments
of environmental protection, competent departments of foreign trade and economic cooperation, Customs, import/ export commodity inspection
departments, administrative departments for industry and commerce and judicial organs.

Article 5

The State Environmental Protection Administration exercises supervision and control over import of wastes throughout the country.

The competent administrative departments of environmental protection of local people’s governments at various levels exercise supervision
and control over import of wastes within their respective jurisdictions according to these Provisions, and have the power to make
on-spot inspection into units engaging in import business activities of wastes.

Article 6

The State Environmental Protection Administration, jointly with the Ministry of Foreign Trade and Economic Cooperation and the General
Administration of Customs, formulate, adjust and announce the List of Wastes Restricted by the State for Import as Raw Materials
(Attachment 1).

The State Administration for Import and Export Commodity Inspection, together with the State Environmental Protection Administration,
formulate the standards for compulsory inspection over imported wastes.

Article 7

The competent departments of foreign trade and economic cooperation, Customs, import/export commodity inspection departments and administrative
departments for industry and commerce exercise supervision and control over import of wastes and related business activities within
their respective scope of duties.

Chapter II Environmental Management on Import of Wastes

Article 8

Import of any waste listed in Attachment 1 must be examined and approved by the State Environmental Protection Administration.

Import of any waste not listed in Attachment 1 of these Provisions (see Article 32 for the scope of wastes) is forbidden.

Article 9

The application and approval procedures for import of wastes are as follows:

(1)

If imports of wastes of H.S. code 7204.1000, 7204.2100, 7204.2900, 7204.3000, 7204.4100, 7204.4900 and 7204.5000 listed in Category
VI of Attachment 1 (hereinafter referred to as wastes of H.S. codes 7204.1000 to 7204.5000) are applied for, the units of import
of wastes or the units of utilization of wastes apply therefore directly to the State Environmental Protection Administration, and
the State Environmental Protection Administration examines and approves such applications.

(2)

If imports of other wastes listed in Attachment 1 are applied for, the units of import of wastes or the units of utilization of wastes
apply therefore to the competent administrative departments of environmental protection under the people’s governments at the city
level in the places where the units of utilization of wastes are located (hereinafter referred to as the competent administrative
departments of environmental protection at the city level), and after they are examined and consented by the competent administrative
departments of environmental protection at the city level and the competent administrative departments of environmental protection
under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government (hereinafter
referred to as the competent administrative departments of environmental protection at the provincial level), they are reported to
the State Environmental Protection Administration for examination and approval.

Article 10

An application for import of wastes must meet the following requirements:

(1)

The unit applying for import of wastes for use as raw materials must be an enterprise legal person established according to law, and
have the capability in utilizing the imported wastes and corresponding equipment for the prevention and control of pollution; and

(2)

Wastes applied for import have been listed into the List of Wastes Restricted by the State for Import as Raw Materials.

Article 11

The unit applying for import or utilization of wastes listed in Attachment 1 of wastes must submit the following application materials:

(1)

Application Form for Import of Wastes (Attachment 2)(omitted);

(2)

Report on Environmental Risks for Import of Wastes as Raw Materials or Statement on Environmental Risks for Import of Wastes as Raw
Materials.

The above-mentioned application materials must be made in three copies.

Article 12

The competent administrative department of environmental protection accepting an application for import of wastes shall, within five
working days from the date of receiving the application materials for import of wastes, handle the application for import of wastes
respectively as follows:

(1)

If the requirements of Articles 9 and 10 of these Provisions are met, the application for import of wastes shall be accepted;

(2)

If any of the requirements of Article 10 of these Provisions is not met, the application for import of wastes is not accepted and
the reasons are given thereto; or

(3)

If the applicant fails to submit any of the application materials listed in Article 11 of these Provisions, the applicant shall be
notified to submit the supplementary materials within a given time limit. If he fails to do so within the given time limit, it is
deemed as not filing application therefore.

Article 13

The units applying for import or utilization of wastes of H.S. codes 7204.1000 to 7204.5000 in Category VI of Attachment 1 must make
assessments on environmental risks from wastes planned to import for use as raw materials and in the course of their storage, transportation
and utilization, fill in the Statement on Environmental Risks on Import of Wastes and submit it directly to the State Environmental
Protection Administration for examination.

Article 14

The units applying for import or utilization of wastes in Categories II, VII, VIII and IX of Attachment 1 must make assessments on
environmental risks from wastes planned to import for use as raw materials and in the course of their storage, transportation and
utilization, prepare the Report on Environmental Risks on Import of Wastes, and submit it to the competent administrative departments
of environmental protection for examination according to the relevant provisions of the State Environmental Protection Administration.

Article 15

The units applying for import or utilization of wastes in Categories I, III, IV,V and VI other than wastes of H.S. codes 7204.1000
to 7204.5000 of Attachment 1, or the units applying for import of wastes again referred to in Article 14 already approved, must
make assessments on environmental risks from the wastes planned to import for use as raw materials and in the course of their storage,
transportation and utilization, fill in the Statement on Environmental Risks on Import of Wastes, and together with the Application
Form for Import of Wastes, submit them to the relevant competent administrative departments of environmental protection for examination
according to the procedures prescribed in paragraph (2) of Article 9 of these Provisions.

Article 16

The technical requirements and examination procedures for the assessment of environmental risk on import of wastes arc formulated
separately by the State Environmental Protection Administration.

The units undertaking to assess environmental risks on import of wastes must obtain the Qualification Certificate for Assessment of
Environmental Risks on Import of Wastes issued by the State Environmental Protection Administration.

Article 17

The competent administrative departments of environmental protection at the city or provincial level accepting applications for import
of wastes shall, within 10 working days from the date of receiving the application materials for import of wastes, produce their
examination comments and notify applicants.

Article 18

Within 10 working days from the date of receiving the directly accepted application materials for import of wastes or the application
materials for import of wastes transmitted by the competent administrative departments of environmental protection at the provincial
level, the State Environmental Protection Administration shall make decisions of approval or disapproval and notify applicants.

If an application for import of wastes is approved, the State Environmental Protection Administration issues the Certificate of Approval
for Import of Wastes (Attachment 3)(omitted).

Article 19

When necessary, the State Environmental Protection Administration may organize experts for discussion or solicit opinions of related
departments in the course of examining the application materials for import of wastes.

Article 20

The valid term of the Certificate of Approval for Import of Wastes issued by the State Environmental Protection Administration is
one year.

Article 21

The Customs must give clearance for wastes listed in Attachment 1 only according to the Certificate of Approval for Import of Wastes
issued by the State Environmental Protection Administration and the inspection certificate issued by the of import/export commodity
inspection agencies in the places of ports.

Article 22

The units of import of wastes and the units of utilization of wastes must fill in the Report on Import of Wastes for the wastes imported
each quarter (Attachment 4)(omitted), and submit them to the competent administrative departments of environmental protection at
the city level in the places where the units of utilization of wastes are located.

The units of utilization of wastes must, according to the requirements of the Report on Environmental Risks of Import of Wastes or
the Statement of Environmental Risks of Import of Wastes, prevent and control any pollution to the environment caused by the imported
wastes.

Article 23

The import/export commodity inspection agency shall, whenever discovering any possible pollution to the environment by imported wastes
in conducting inspection, timely notify and transfer the case to the local competent administrative department of environmental protection
and Customs for handling according to law.

Article 24

If a processing or production project which utilizes imported wastes as raw materials is constructed, the construction unit must make
an assessment of environmental risks, prepare the Report on Environmental Risks of Import of Wastes, and after the competent administrative
departments of environmental protection at the city level and the provincial level in the place where the construction project is
located produce their comments, submit it to the State Environmental Protection Administration for examination.

Article 25

The units engaging in the processing and utilization of wastes in Category VII of Attachment 1 must be the wastes processing and utilization
units approved by the State Environmental Protection Administration.

Article 26

An enterprise applying to engage in import, operation, processing or utilization of wastes listed in Attachment 1 must submit the
document of approval issued by the State Environmental Protection Administration, and without such document of approval issued by
the State Environmental Protection Administration; the administrative department for industry and commerce may not approve its registration.

Enterprises already engaged in the operation activities of imported wastes prior to the operation of these Provisions must, according
to the provisions of Document No [1995] 54 of the General Office of the State Council, apply to the State Environmental Protection
Administration for examination and approval.

Chapter III Penalty Provisions

Article 27

Anyone who, in violation of these Provisions, moves wastes from abroad into China for dumping, piling or disposals, or imports wastes
for use as raw materials without approval by the State Environmental Protection Administration, is punished according to Article
66 of the Law of the People’s Republic of China on the Prevention and Control of Solid Wastes Pollution to the Environment.

Anyone who, in the name of utilization as raw materials, imports wastes not usable as raw materials is punished according to the provisions
of the preceding paragraph.

Article 28

Solid wastes already illegally moved into China are governed by Article 68 of the Law of the People’s Republic of China on the Prevention
and Control of Solid Wastes Pollution to the Environment.

Article 29

If anyone forges or alters the Certificate of Approval for Import of Wastes of the State Environmental Protection Administration,
the State Environmental Protection Administration imposes a fine of more than 50,000 Yuan but less than 500,000 Yuan thereto and
transfers concurrently to the judicial organ for investigation of criminal responsibility.

Article 30

If anyone, in violation of the provisions of Paragraph (2) of Article 26 of these Provisions, fails to go through the examination
and approval procedures with the State Environmental Protection Administration for import operations of wastes but continues to engage
in import operations of wastes, the Customs may not give clearance to the wastes and order him to transport the wastes back, the
competent department of foreign trade and economic cooperation shall revoke his import operation right according to law, and the
administrative department for industry and commerce shall revoke his business license according to law.

Article 31

Any person engaging in supervision and control on import/export of wastes who abuses his power, neglects his duty or practices favoritism
for personal gains, is given administrative sanctions if his act does not constitute a crime; and if a crime is constituted, criminal
responsibility is investigated according to law.

Chapter IV Supplementary Provisions

Article 32

The definitions of the following terms in these Provisions:

(1)

Scope of wastes:

Solid wastes mean wastes in solid or semi-solid state generated in the production, construction, daily life and other activities,
which pollute the environment.

Industrial solid wastes mean solid wastes generated in such production activities as industry and transportation.

Urban living rubbish means solid wastes generated in the course of urban daily life or activities providing services for urban daily
life as well as those solid wastes that, as stipulated by laws and administrative regulations, are deemed urban living rubbish.

Dangerous wastes mean wastes included in the national lists of dangerous wastes or wastes which, according to the State’s identification
standards and method of dangerous wastes, are determined as having the dangerous property.

(2)

Units of import of wastes mean foreign trade operation units engaging in import of wastes.

(3)

Units of utilization of wastes mean units that actually engage in the processing and utilization of imported wastes.

Article 33

If any provisions on environment management on import of wastes issued by the State Environmental Protection Administration itself
or jointly with relevant departments prior to entry into force of these Provisions contradict these Provisions, such provisions cease
to be implemented.

Article 34

These Provisions are interpreted by the State Environmental Protection Administration jointly with relevant departments.

Article 35

These Provisions shall enter into force as of April 1, 1996.

Attachment:Relevant Clauses of the Law of the People’s Republic of China on the Prevention and Control of Solid Wastes Pollution to the Environment

Article 66

If anyone, in violation of the provisions of this Law, dumps, piles or disposes of solid wastes moved into China from outside the
territory of China, or imports solid wastes for use as raw materials without approval by the competent department of the State Council,
the Customs orders to transport back and return the said solid wastes and may impose a fine of more than 100,000 Yuan and less than
1,000,000 Yuan concurrently. If anyone evades Customs control, thus constituting a crime of smuggling, criminal responsibility shall
be investigated according to law.

Anyone who, in the name of raw materials utilization, imports solid wastes not usable as raw materials shall be punished according
to the provisions of the preceding paragraph.

Article 68

With regard to the solid wastes already moved into China illegally, the competent administrative departments of environmental protection
of the people’s governments at and above the provincial level shall make proposals on handling them to the Customs according to law,
the Customs shall, according to the provisions of Article 66 of this Law, make decisions on the punishment therefore; if environmental
pollution has already been caused, the competent administrative departments of environmental protection of the people’s governments
at and above the provincial level shall order the importers concerned to eliminate the pollution.