MEASURES FOR THE ADMINISTRATION OF LIQUOR CIRCULATION

Ministry of Commerce

Order of the Ministry of Commerce

No. 25

The Measures for the Administration of Liquor Circulation, which were adopted at the 15th executive meeting of the Ministry of Commerce
on October 19, 2005, are hereby promulgated and shall come into force on January 1, 2006.

Minister Bo Xilai

November 7, 2005

Measures for the Administration of Liquor Circulation

Chapter I General Provisions

Article 1

The present Measures are formulated according to the relevant laws and regulations of the state for the purpose of regulating the
order of liquor circulation, promoting the orderly development of the liquor market, safeguarding the interests of the state and
protecting the legitimate rights and interests of liquor producers, operators and consumers.

Article 2

The term “liquor” as mentioned in the present Measures refers to the liquor drink with more than 0.5% (cubic fraction) of alcoholic
degree (ethanol content), including fermented liquor, distilled liquor, compound liquor, edible liquor and any other drink with alcohol
component, except the medicinal liquor or any liquor in the category of health food whose production has been approved by the relevant
administrative department of the state in accordance with the law.

The term “liquor circulation” as mentioned in the present Measures includes the business operations like the wholesale, retail and
storage and transport of liquor.

Article 3

Any entity or individual that engages in any activity of liquor circulation within the territory of the People’s Republic of China
shall observe the present Measures.

Article 4

A system of archival filing of operators as well as a traceability system shall be established for liquor circulation.

Article 5

The Ministry of Commerce shall take charge of the supervision and administration for liquor circulation throughout the country.

The competent departments of commerce at or above the county level shall take charge of the supervision and administration of liquor
circulation of their administrative regions.

Chapter II Archival Filing and Registration

Article 6

An entity or individual that engages in the wholesale or retail of liquor (herein after referred to in general as “liquor operator”)
shall, within 60 days as of acquiring a business license, make the archival filing and registration formalities in the competent
department of commerce at the same level as the administrative department for industry and commerce where the registration is handled
according to the principle of territorial administration.

Article 7

The procedures for archival filing and registration formalities of liquor operators are as follows:

(1)

Collecting the Registration Form for Liquor Circulation Archival Filing (hereinafter referred to as the Registration Form). The Registration
Form may be downloaded from the official website of the Ministry of Commerce (https://www.mofcom.gov.cn) or be collected from the
local competent department of commerce.

(2)

Filling in the Registration Form. An liquor operator shall fill in the Registration Form in a complete, accurate and authentic manner
and meanwhile shall earnestly read the terms as attached to the Registration Form, which shall be signed and affixed with a seal
by the legal representative or business owner.

(3)

Submitting the following materials for archival filing and registration to the competent department of commerce:

(a)

A Registration Form in duplicate as filled in according to item (2) of Article 7 of the present Measures;

(b)

A photocopy of the business license that is signed or affixed with a seal by the legal representative or business owner as well as
a photocopy of the Sanitation License; and

(c)

Any other material as recognized by the Ministry of Commerce that is publicly required by the competent department of commerce at
the provincial level.

Article 8

The competent department of commerce shall, within 5 workdays as of receiving the aforesaid materials submitted by the liquor operator,
handle the formalities for archival filing and registration and affix its seal on the Registration Form.

Article 9

The competent department of commerce shall record and keep the archived and registered information as well as registration materials
of liquor operators completely and accurately , establish records on archival filing and registration, report them to the competent
department at the higher level on a periodic basis and may publicize them to the general public.

Article 10

Where any registered item in the Registration Form alters, the relevant liquor operator shall, within 30 days as of alteration (in
the case of any item regarding the industrial and commercial registration, it shall be within 30 days as of the alteration of industrial
and commercial registration), handle the formalities for alteration in the competent department of commerce.

The competent department of commerce shall, after receiving the written materials submitted by the liquor operator, handle the formalities
for alteration within 5 workdays.

A Registration Form shall, as of the day when the registration is writing off by the liquor operator in the administrative department
for industry and commerce or as of the day when the business license of the liquor operator is revoked, be automatically invalidated.
The competent department of commerce shall verify any write-off or revoke in collaboration with the administrative department for
industry and commerce at the same level on a periodic basis.

Article 11

The competent department of commerce shall, when handling the registration for archival filing and registration or for any alteration
of archival filing and registration, only collect the cost of production of relevant materials as verified by the local administrative
department for price and shall not charge any other fee.

Article 12

The liquor operator shall not forge, alter, rent, lend, transfer, purchase or sell or cheat for the Registration Form for Liquor Circulation
Archival Filing.

Chapter III Operating Rules

Article 13

The relevant state standards or industrial standards shall be implemented according to law in the business operations of liquor such
as wholesale, retail and storage and transport.

Article 14

A liquor operator (supplier) shall, when undertaking any wholesale of liquor goods, fill in the Attached Documents of Liquor Circulation
(hereinafter referred to as the Attached Documents) and record the circulation information of liquor goods in detail. The Attached
Documents shall follow the whole course of liquor circulation, be bundled with the goods, and match with the goods so as to realize
the traceability of the circulation information throughout the course from the day when liquor goods leave the factory to the point
of sales terminal.

The Attached Documents shall include such contents as the sales entity (name, address, serial number of archival filing and registration,
contact way), name of the purchasing entity, sales date, goods (name, specification, place of production, batch number of production
or production date, quantity and unit) and shall be affixed with the seal of the operator.

The liquor operator that has established perfect traceability system that meets the requirements of the present Measures may, upon
the recognition of the Ministry of Commerce, use the documents as formulated by itself instead of the Attached Documents as provided
for by the present Measures.

Article 15

The liquor operator shall, when purchasing any liquor goods, claim the photocopies of the business license, sanitation license, production
license (limited to producers), registration form, power of attorney of liquor goods distribution (limited to producers) of a supplier
that supplies goods for the first time.

The liquor operator shall claim the photocopy of the effective certificate certifying that the goods pass the quality inspection as
well as of the Attached Documents affixed with the seal of liquor operator or the documents that meet the provisions of paragraph
2 of Article 14 of the present Measures for each batch-based purchase of liquor goods. For any imported liquor goods, the photocopy
of the Sanitation Certificate of Imported Goods as well as the Examination Certificate of Imported Goods Labels as verified and issued
by the state entry-exit inspection and quarantine department shall be claimed also.

The liquor operator shall establish an account for purchase and sale in the liquor business operation and keep it for 3 years.

Article 16

The liquor operator shall mark and sell the bulk liquor in a fixed place. Any mobile sale of bulk liquor is prohibited.

The containers of bulk liquor shall meet the requirements of the state on food sanitation, to which the mark of meeting the standards
of the state on labels of liquor drinks shall be attached and on which the valid sales term after opening, business operator as
well as the contact telephone shall be indicated.

Article 17

The liquor operator shall, when storing or transporting any liquor goods, meet the relevant requirements for the administration of
food sanitation, fireproofing security and storage and transport. The liquor goods shall be kept away from areas of serious pollution
or heavy radiation and shall not be placed together with any poisonous, harmful, polluted or corrosive substance (source).

Article 18

The liquor operator shall, when selling any liquor goods, indicate the price and shall be honest and creditworthy.

Article 19

The liquor operator shall not sell any liquor goods to any minor and shall indicate this in an eye-catching position in its business
place.

Article 20

It’s prohibited to undertake the wholesale, retail or storage and transport of the following goods:

(1)

Any liquor goods produced by using any substance harmful to human such as non-edible alcohol;

(2)

Any liquor goods, of which the name or address of the production plant or production date has been forged or altered;

(3)

Any liquor goods that injured any intellectual property right such as the right to the exclusive use of trademark;

(4)

Any liquor goods which is adulterated, or any interior which is posed to superior or any fake which is posed to genuine or liquor
which exceeds the quality guaranty period or any liquor goods that is illegally imported; or

(5)

Any other liquor goods as prohibited by any law or regulation of the state.

Chapter IV Supervision and Administration

Article 21

The competent departments of commerce at or above the county level shall, according to the relevant laws and regulations of the state
as well as the present Measures, carry out supervision and administration for liquor circulation within their administrative region.

The competent department of commerce at all level shall not restrict or hinder the circulation of legal liquor goods within their
region.

Article 22

The competent department of commerce shall, when carrying out supervision and administration, show the effective certificate, and
the relevant law enforcers shall be no less than 2 persons. Under any circumstance where any relevant evidence is held or where any
tip-off is received, the law enforcers may consult the account or take samples randomly. In the case of any samples taking, the
effective certificate shall be shown to the party concerned.

The competent department of commerce is obliged to keep the commercial secrets of the parties concerned.

The liquor operator shall coordinate in the supervision and examination of the competent department of commerce by providing the
relevant information in a faithful manner and shall not unlawfully transfer or destroy any liquor goods waiting for examination
and inspection.

Article 23

The competent department of commerce shall establish a monitoring system for liquor circulation, carry out monitoring and analysis
on the local liquor circulation, establish the archival filing of liquor operators and publicize it to the general public at a
proper time.

The Ministry of Commerce shall apply the modern information techniques to establish the information system regarding the administration
of liquor circulation and the security of liquor goods. The competent departments of commerce at all levels and liquor operators
shall report the relevant information in a timely manner.

Article 24

The competent department of commerce may, by itself or in collaboration with the relevant departments, take the sample and conduct
tests to the liquor goods as sold in the administrative region and may publicize the testing results to the general public.

The liquor authentication conclusion as produced or accredited by the competent department of commerce shall be based on the testing
results as produced by the statutory testing institution of the state or on the authentication report as produced by the enterprise
whose right has been injured.

Article 25

The liquor industrial organization is encouraged to establish and perfect an industrial self-discipline system.

Article 26

Any entity or individual is enpost_titled to tip off or expose any violation of the present Measures to the local competent department
of commerce, administrative department for industry and commerce or the relevant competent department.

Chapter V Legal Liabilities

Article 27

Where any entity or individual violates the provisions of Article 6 , paragraph 1 of Article 10 of the present Measures, the competent
department of commerce shall give it/him a warning and order it/him to correct within a time limit. Where it/he refuses to correct
within the prescribed term, the competent department of commerce may, based on the circumstances, fine the liquor operator less
than 2, 000 yuan and may publicize it to the general public.

Any entity or individual that violates the provisions of Article 12 of the present Measures may be fined less than 10, 000 yuan
according to the circumstances. Any entity or individual that violates any law or regulation on the administration of industry and
commerce shall be transferred to the administrative department for industry and commerce for handling in accordance with law. Where
a crime is constituted, the violator shall be subject to criminal liabilities according to law.

Article 28

Where any entity or individual violates the provisions of Article 14 or 15 of the present Measures, the competent department of commerce
shall give it/him a warning, order it/him to correct and publicize it to the general public. Where any entity or individual refuses
to correct, the competent department of commerce may, according to the circumstances, impose on it/him a fine less than 5, 000
yuan and publicize it to the general public.

Article 29

Where any entity or individual violates the provisions of Article 16 or 17 of the present Measures, the competent department of commerce
shall give it/him a warning and order it/him to correct. In the case of any serious circumstances, the competent department of commerce
may impose on it/him a fine less than 10, 000 yuan and transfer it/him to the administrative department for industry and commerce
for handling in accordance with law. Where a crime is constituted, the violator shall be subject to criminal liabilities according
to law.

Article 30

Where any entity or individual violates the provisions of Article 1 19 of the present Measures, the competent department of commerce
shall, by itself or in collaboration with the relevant department, give it/him a warning and order it/him to correct. Under any serious
circumstances, a fine less than 2, 000 yuan shall be imposed.

Article 31

Where any entity or individual violates the provisions of Article 20 of the present Measures, the competent department of commerce
shall, by itself or in collaboration with the relevant department, confiscate the illegal goods and impose on it/him a fine less
than 30, 000 yuan according to the circumstances. Any entity or individual that violates any law or regulation on the administration
of industry and commerce or injures the right to the exclusive use of trademark shall be transferred to the administrative department
for industry and commerce for handling in accordance with law. Any entity or individual that violates any other law or regulation
shall be transferred to the relevant organ for handling in accordance with law. Where a crime is constituted, the violator shall
be subject to criminal liabilities according to law.

Article 32

Where any entity or individual violates the provisions of paragraph 3 of Article 22 of the present Measures, the competent department
of commerce shall give it/him a warning and order it/him to correct. Under any serious circumstances, a fine less than 10, 000 yuan
may be imposed.

Article 33

Where the competent department of commerce conducts any supervision and administration on liquor circulation in violation of the present
Measures, it shall be given an administrative sanction according to law.

Chapter VI Supplementary Provisions

Article 34

The licensing system shall be continued in those regions where the licensing administration of liquor circulation has been carried
out according to law. The circulation of liquor goods shall be subject to the traceability system according to the present Measures.
The License for Liquor Circulation shall be deemed as the Registration Form.

Article 35

The Registration Form and the Attached Documents shall be uniformly formulated by the Ministry of Commerce. The competent departments
of commerce at the provincial level shall take charge of the specific implementation.

Article 36

The competent departments of commerce at or above the county level may entrust the relevant organizations to conduct the supervision
and administration of liquor circulation according to law.

Article 37

The power to interpret the present Measures shall remain with the Ministry of Commerce.

Article 38

The present Measures shall come into force as of January 1, 2006. A 3-month transitional period shall be set as of the day of implementation.
Within the transitional period, the liquor operator shall handle the formalities for archival filing and registration as well as
establish a traceability system according to the provisions of the present Measures.