CUSTOMS REGULATIONS OF PRC CONCERNING THE CONTROL OVER PASSING TRAVELLERS’ LUGGAGE AND ARTICLES

   Article 1 The present regulations are formulated on the basis of the Customs Law of the People’s Republic of China and the Customs Regulations
of the People’s Republic of China Concerning the Supervision and Control over Luggage and Article of Incoming and Outgoing Passengers.

   Article 2 For the purpose of the present regulations, the term “passing Travellers” means passengers who come from a place outside the territory
and pass through the territory en route to a place outside the territory with valid passing visa (or with valid passport for passengers
come from countries which are mutually visa-free with our country); and incoming passengers who do not leave the Customs surveillance
zone or not leave the means of transport under the Customs control before leaving the territory.

   Article 3 Passing travellers, who do not leave the Customs surveillance zone or not leave the means of transport under the Customs control
at the port of entry may be exempted from filling the “Declaration Form for Passengers’ Luggage”. The Customs shall not examine the
luggage of these passengers except those Customs deemed necessary for an inspection.

   Article 4 Luggage carried by passing travellers who leave the Customs surveillance zone during the passing period shall be limited as their
travelling necessities and be dealt with in accordance with Customs regulations on luggage for inward and outward shortterm passengers
of non-residents, those belong to the items 3, 4 and 5 in the Classification List of Luggage and Articles of Incoming and Outgoing
Passengers (see Annex I) shall be released with temporary duty-exemption after being verified and noted by the Customs with in the
regulated scope, and the travelling passengers shall take back these luggage and articles when they leave the territory. Luggage
and articles beyond the regulated scope shall not be permitted in, except for those to be dealt with according to Article 5 of the
present regulations.

   Article 5 Articles carried by travelling passengers beyond the releasing scope prescribed in Article 4 of the present regulations shall be
undertaken by the Customs approved or appointed company engaged in declaration and transportation which entrusted by the passengers,
and the company shall complete the formalities of Customs transit goods for these articles, otherwise the articles shall not be permitted
in.

   Article 6 Except for those release by the special approval of the Customs General Administration with duty-payment or guarantee, articles not
permitted in shall be taken back and cleared with related Customs formalities by the owner of the article within 3 months from the
day which the articles are declared for entering the territory. Those do not complete with the above-mentioned formalities within
the prescribed time-limit shall be dealt with in accordance with Article 33 of the Customs Law of the People’s Republic of China.

   Article 7 Transit articles approved by the Customs and travelling necessities with temporary duty-exemption after Customs registration shall
not be left within the territory without the Customs authorization. Article unable to be taken back by reasons of lost, stolen or
force majeure shall be provided with approving documents issued by the public security office and the person concerned shall go through
the Customs clearance procedures. Those without approving documents shall have the duties paid.

   Article 8 No passing traveller shall be allowed to take articles listed in the List of Article Prohibited by the People’s Republic of China
from Entering or Leaving the Territory (see Annex II) no matter he leaves the Customs surveillance zone or not.

   Article 9 Any activity of the passing travellers in violation of the present regulations shall be punished in accordance with the Customs Law
of the People’s Republic of China and the Regulations for Imposing Administrative Penalties under the Customs Law of the People’s
Republic of China.

   Article 10 The present regulations shall be put into effect as of September 10, 1991.

Item I Foodstuffs, clothing materials, clothes and works of arts and crafts, Watches and other daily necessities valued less than
RMB 200 yuan (including RMB 200 yuan)

Item II Cigarettes Wine and spirits

Item III Daily necessities valued more than RMB 1,000 yuan

Item IV TV sets, washing machines, refrigerators, cameras, audio systems, radio cassette recorders, motorcycles and other daily necessities
valued between RMB 500 yuan and RMB 1,000 yuan (including RMB 1,000 yuan)

Item V Typewriters Electronic keyboard, cameras and other daily necessities valued between RMB 200 yuan and RMB 500 yuan (including
RMB 500 yuan)

Notes:

1. The value of the inward articles referred to in the List shall be determined by reference of the duty-paying value assessed by
the Customs. The value of the outward articles shall be the prices listed on the domestic legal commercial invoices.

2. The specific allowances for duty-paying or duty-free articles in the List, which is allowed to be carried by various kinds of passengers,
shall be regulated by the Customs General Administration separately.

3. Named articles without value-limitation in the List shall not be classified by their valueness.

I Articles prohibited from entering the territory

1. Arms, ammunition and explosives of all kinds;

2. Counterfeit currencies and counterfeit negotiable securities;

3. Printed matter, films, photographs, gramophone records, cinematographic films, loaded recording tapes and video-tapes, compact
discs (video and audio), storage medium for the computer and other articles which are detrimental to the political, economic, cultural
and moral interests of China;

4. Deadly poisons of all kinds;

5. Opium, morphia, heroin, marijuana and other addiction-inducing drugs and psychedelics;

6. Animals, plants and products thereof infected with or carrying disease germs, insect pests and other harmful organisms;

7. Foodstuff, medicines and other articles coming from epidemic-striken areas and harmful to man and live-stock or those capable of
spreading diseases;

8. Renminbi (with the exception of Renminbi dealt with the carried in compliance with an agreement or protocol on the exchange of
national currencies in the case of Foreign Exchange Certificates, relevant regulations shall be applied).

II Articles prohibited from leaving the territory

1. All articles enumerated as articles prohibited from importation;

2. Manuscripts, printed matter, films, photographs, gramophone records, cinematographic films, loaded recording tapes, video-tapes,
compact discs (video and audio), storage medium for the computer and other articles which involve state secrets;

3. Valuable cultural relics and other relics prohibited from exportation;

4. endangered and rare animals and plants (including their specimens) and their seeds or reproducing materials.