PROVISIONAL REGULATIONS ON ENVIRONMENTAL PROTECTION IN CASES OF WASTES IMPORTATION

   Article 1 This set of provisional regulations has been formulated in accordance with Law of the People’s Republic of China on Prevention and
Control of Environmental Pollution by Solid Wastes and other laws concerned, with the aim of strengthening environmental protection
in cases of wastes importation so as to prevent the pollution by imported wastes.

   Article 2 This set of provisional regulations is applicable to imports of wastes into the People’s Republic of China and the supervision and
administration associated with environment.

   Article 3 Imports of overseas wastes to be dumped, stored or treated inside China are forbidden.

   Article 4 All units and individuals have the right to report to environmental protection administration agencies, foreign economic and trade
administration agencies, import and export commodities inspection agencies, industrial and commerce administration agencies and judicial
agencies unlawfully imports of overseas wastes to the country by any entities.

   Article 5 The State Environmental Protection Agency shall exercise the supervision and administration of wastes importation nationwide.

Environmental protection organs at the local levels, in accordance with this set of provisional regulations, shall exercise the supervision
and administration of wastes importation of the localities under their jurisdiction. They also have the right to conduct on-site
inspection of entities engaged in imports of wastes.

   Article 6 The State Environmental Protection Agency shall compile, revise and promulgate Catalogue of Wastes Imported as Raw Materials Restricted
by the State (Appendix One) with joint efforts of the Ministry of Foreign Trade and Economic Cooperation and the General Administration
of Customs.

The State Import and Export Commodity Inspection Bureau and the State Environmental Protection Agency shall jointly establish standards
for compulsory inspection of imported wastes.

   Article 7 Departments in charge of foreign economic cooperation and trade, customs, import and export commodity inspection institutions and
industrial and commerce administration departments exercise the supervision and administration of wastes importation and related
business activities in their respective scopes of responsibility.

   Article 8 Any wastes listed in Appendix One can only be imported after the examination and approval of the State Environmental Protection Agency.

All other wastes not listed in Appendix One (Please refer to Article 32 for the scope of wastes) are banned from importation.

   Article 9 The procedures for the application, examination and approval of wastes importation are as the following:

1 Application for imports of wastes which have been listed in the sixth category of Appendix One with customs codes 7204-1000, 7204-2100,
7204-2900, 7204-3000, 7204-4100, 7204-4900 and 7204-5000 (referred to hereinafter as wastes with codes from 7204-1000 to 7204- 5000)
shall be filed directly by the units that plan to import or utilize the wastes with the State Environment Protection Agency for examination
and approval of the latter.

2 Applications for the imports of other wastes listed in Appendix One should be filed by the units that plan to import or utilize
the wastes with the local environment protection departments at the prefectural or municipal level (referred to hereinafter as environment
protection departments at the municipal level). The applications, after the examination and approval of the environmental protection
departments at the municipal level and the environmental protection departments of the provinces, autonomous regions and municipalities
directly under the Central Government, should be reported to the State Environmental Protection Agency for examination and ratification.

   Article 10 Applications for imports of wastes should meet the following conditions:

1 Entities applying for the imports of wastes as raw materials should be legally established enterprises with legal person status
and in possession of capabilities of utilizing the wastes and associated equipment for pollution control;

2 The wastes to be imported are included in the Catalogue of Wastes lmported as Raw Materials Restricted by the State.

   Article 11 Entities applying for the imports of wastes listed in Appendix One should present the following documents:

1 Application for the import of wastes (Appendix One);

2 Report on the environmental risks of the import of the wastes as raw materials or report table on the environmental risks of the
importation of the wastes as raw materials.

The afore-mentioned application papers should be submitted with three copies.

   Article 12 The environment protection departments, shall do the following within five work days since the receipt of the application papers
for wastes importation:

1 The departments shall handle the applications which comply with Articles 9 and 10 of this set of provisional regulations;

2 The departments shall reject the applications which do not comply with Articles 9 and 10 of this set of provisional regulations
and inform the applicants of the reasons;

3 If one of the documents required for application failed to be presented during the application, the applicants shall be notified
to make up for the document within a certain period of time. The applications will be rescinded if the required documents are not
presented within the specified period.

   Article 13 Entities applying for imports or uses of wastes with codes from 7204-1000 to 7204-5000 listed in Appendix One should make a correct
assessment on the risks to the environments as the result of the import, storage, transport and uses of the waste as raw materials,
and fill up and submit the “Report Table on the Environmental Risks of the Importation of the Wastes as Raw Materials” to the State
Environment Protection Agency for examination and approval.

   Article 14 Entities applying for imports or uses of wastes listed as the second, seventh, eighth and ninth categories in Appendix One should
make a correct assessment on the risk to the environment as the result of the import, storage, transport and uses of the waste as
raw materials and fill up the” Report on the Environmental Risks of the Importation of Wastes as Raw Materials, in accordance with
related regulations of the State Environment Protection Agency.

   Article 15 Entities applying for imports or uses of wastes listed as the second, third, forth, fifth and the wastes other than those with codes
from 7204-1000 to 7204-5000 in the sixth category or applying for fresh imports of wastes described in Article 14, should make a
correct assessment on risks as the result of the wastes as raw materials and fill up and submit the Report Table on The Environmental
Risks of the Importation of the Wastes as Raw Materials, together with the application for wastes imports, in accordance with the
procedures as set in the second paragraph of Article 9 of this set of provisional regulations, to the environment protection departments
for examination.

   Article 16 The technical requirements and examination procedures on the assessment of risks to environment arising from imports of waste shall
be formulated separately by the State Environmental Protection Agency.

Entities engaged in assessment of risks in environment arising from imports of waste should acquire credentials for assessment of
environmental risks arising from wastes importation as approved and issued by the State Environment Protection Agency.

   Article 17 Environment protection departments at the municipal level and at the provincial level that handle applications for wastes importation
shall propose, sign and send opinions on the examination to the applicants within 10 work days since the receipt of the application
documents.

   Article 18 The State Environment Protection Agency shall decide to approve or disapprove the applications and notify the applicants of the decisions
within 10 work days since the receipt of the application documents submitted directly from the applicants or via the environment
protection departments at the provincial level.

Upon an approval to the import of wastes, the State Environment Protection Agency shall issue a Wastes lmportation Approval Certificate
(Appendix Three).

   Article 19 During the examination of application documents for wastes importation, the State Environment Protection Agency shall solicit opinions
from concerned departments or specialists when necessary.

   Article 20 A wastes importation approval certificate shall expire one year after its issuance by the State Environment Protection Agency.

   Article 21 For wastes listed in Appendix One the Customs shall release on the strength of a Wastes lmportation Approval Certificate issued by
the State Environment Protection Agency and the certificate of inspection issued by the local port’s import and export commodity
inspection department.

   Article 22 Entities which import and utilize wastes should compile and submit a quarterly Wastes Importation Reports (Appendix Four) to the
environment protection administrative departments at the municipal level in the locality where the entities reside.

Entities which utilize imported wastes should abide by the requirements as stipulated in the Reports on the Environmental Risks of
the Importation of the Wastes as Raw Materials or Report Tables on the Environmental Risks of the Importation of the Wastes as Raw
Materials to prevent the imported wastes from polluting the environment.

   Article 23 Should possibilities of polluting the environment be discovered when inspection of the imported commodities by the import and export
commodity inspection departments, the latters should timely report to the local environment protection departments and Customs for
suitable handling of the matter in accordance with law.

   Article 24 Upon the setting up of processing projects utilizing imported wastes as raw materials, the responsible units of the projects should
assess risks to the environment involved and compile and send a Report on the environmental Risks of the Importation of the wastes
with opinions signed by the environment protection departments at the municipal and provincial levels to the State Environment Protection
Agency for examination.

   Article 25 Entities utilizing the wastes as listed under the seventh category of Appendix One should have been approved and designated by the
State Environment Protection Agency to process and utilize wastes in the specified location.

   Article 26 When application for registration as enterprises engaging in import, management, and/or utilization of overseas wastes, approval
documents issued by the State Environment Protection Agency should be presented. For those who fail to present the approval documents
issued by the State Environment Protection Agency, the industrial and commerce administrative departments shall deny the application
for registration.

Enterprises already engaged in import of wastes before the promulgation of this set of provisional regulations should, in accordance
with the provisions in document NO. (1995) 54 issued by the General Office of the State Council, apply for retroactive examination
and approval formalities with the State Environment Protection Agency.

   Article 27 Dumping, storage and treatment of overseas wastes inside the country in violation of this set of provisional regulations, or imports
of wastes without authorization and approval by the State Environment Protection Agency shall be punished in accordance with Article
66 of Law of the People’s Republic of China on Prevention and

Control of Environmental Pollution by Solid Wastes.

Imports of wastes that cannot be used as raw materials under the pretext of importing them as raw materials shall be punished in accordance
with provisions as stated in the previous paragraph.

   Article 28 Solid wastes that have already entered into the country through illegal ways shall be handled in accordance with Article 68 of Law
of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes.

   Article 29 Counterfeiting and alteration of the State Environment Protection Agency’s Wastes lmportation Approval Certificates shall be fined
RMB50,000-500,000 and be investigated and affixed with criminal responsibility by judicial departments.

   Article 30 For those who failed to apply for retroactive examination and approval formalities in time for previous imports and continue the
act of importation in violation of the second paragraph of Article 26 of this set of provisional regulations, the customs shall not
release their imports and order the imports be transported back; foreign trade and economic cooperation departments shall rescind
their power of import in accordance with law; industrial and commerce administrative departments shall rescind their business licenses
in accordance with the law.

   Article 31 Whenever supervision and administrative personnel in charge of wastes import and export have offenses of abuse of power, dereliction
of duties, graft and embezzlement administrative punishment will be meted out if their acts have not been as serious as to constitute
a crime, but if the acts are so serious as to constitute a crime, criminal responsibility shall be affixed.

   Article 32 Explanations of certain terms in this set of provisional regulations:

1 The scope of wastes:

Solid wastes refer to environment-polluting solid or semi-solid waste materials arising from production construction, daily living
or other activities.

Industrial solid wastes refer to solid wastes arising from industrial or transport activities.

Urban daily living wastes refer to solid wastes arising from urban daily living or services and other solid wastes stipulated as urban
daily living wastes by the laws and regulations.

Hazardous wastes refer to wastes listed in the State’s catalogue of hazardous wastes or those established to be with hazardous properties
in accordance with the State-stipulated hazardous wastes appraisal criteria and appraisal methods.

2 Wastes importation entities refer to those foreign trade entities engaged in the importation of wastes.

3 Wastes utilization entities refer to those entities engaged in the actual processing and utilization of imported wastes.

   Article 33 Regulations formulated jointly by departments under the State Environment Protection Agency and other related departments on the
environmental control and administration of wastes importation before the promulgation of this set of provisional regulations, where
there are contradictions with this set of regulations, shall be nullified and ceased to be implemented.

   Article 34 This set of provisional regulations shall be interpreted jointly by the State Environment Protection Agency and other departments
concerned.

   Article 35 This set of provisional regulation goes into effect as of April 1, 1996.

NOTE: Related Articles of Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes;

   Article 66 For the dumping, storage, treatment of overseas solid wastes inside the Chinese territory, or import solid wastes as raw materials
without authorization by related responsible departments of the State Council in violation of provisions of this Law, the Customs
shall order the solid wastes involved be transported back and impose at the same time a fine of RMB100,000-1,000,000. Those who evade
the supervision and administration of the Customs and constitute smuggling offenses shall be meted out with criminal responsibilities.

Those who import wastes that cannot be used as raw materials under the pretext of importing them as raw materials shall be punished
in accordance with provisions as specified in the previous paragraph.

   Article 68 For solid wastes having entered the territory illegally, penalties shall be meted out by the Customs in accordance with provisions
of Article 66 of this Law after conveying opinions put forward by environment protection administrative departments above the provincial
level in accordance with the law. For those already polluted the environment, the environment protection departments above the provincial
level shall ordered the importer to clear up the pollution.

APPENDIX ONE:

Catalogue of Wastes Restricted by State to Be Imported as Raw Materials

Category Customs Codes Description of Wastes

First Category: 0506-9010 Bone wastes Animal Wastes

Second Category: 2619-0000 Molten slag, scummings (including Metallurgy Wastes vanadium slags), oxide skin and

Third Category: 4401-3000 Sawdust, wood wastes and splinters, Wood and Wood no matter pressed into logs, lumps, Products Wastes slices
or similar shapes

Fourth Category: 4707-1000 Recycled( waste and split) Recycled (waste unbleached kraft paper or paperboard and split) paper or and
recycled (waste and split) paperboard corrugated paper or paperboard

Fifth Category: 5202-1000 Waste cotton yarn (including waste Textile Wastes cotton thread)

Sixth Category: 7204-1000 Waste and split materials from iron Waste and split casting materials of base metals and base metals products