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INTERIM RULES ON THE PROCEDURES FOR ADJUSTING THE RANGE OF PRODUCTS UNDER SAFEGUARDS

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China

No. 38

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards adopted by the 12th Executive Meeting of the
Ministry of Foreign Trade and Economic Cooperation on December 13, 2002 are hereby promulgated and shall be come into force as of
the day of January 13, 2003.

Minister of the Ministry of Foreign Trade and Economic Cooperation, Shi Guangsheng

December 13, 2002

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards

Article 1

In order to guarantee the fairness, justice and openness of the safeguards work, these Rules are enacted in accordance with the Safeguards
Regulations of the People’s Republic of China.

Article 2

According to Articles 5, 15, 16, 18 and 21 of the Safeguards Regulations of the People’s Republic of China, the Ministry of Foreign
Trade and Economic Cooperation (hereinafter referred to as MOFTEC) shall determine in the safeguards case filing proclamations and
award proclamations (hereinafter referred to as safeguards proclamations) the range of products under safeguards investigation and
that of products subject to safeguards (hereinafter referred to as range of products under safeguards). The customs shall implement
the range from the date of the proclamation.

Article 3

During the implementation period of safeguards proclamations, any adjustment in the range of products under safeguards shall be determined
by MOFTEC through the relevant proclamations, and the customs shall implement the adjustment from the date of the proclamation.

Article 4

Procedures for adjusting the range of products in safeguards proclamations of the MOFTEC shall comply with these Rules.

Procedures for adjusting the range of products in safeguards proclamations include the application procedures and the procedures for
acceptance of application, investigation, decision and the relevant proclamation by the MOFTEC.

Article 5

Application procedures:

(1)

After a safeguards case filing proclamation is made, if any relevant interested party raises objections to the range of products under
investigation, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in the proclamation
or within the period extended upon the approval of the MOFTEC.

(2)

After a proclamation of safeguards preliminary award is made, if any relevant interested party raises objections to the range of products
subject to safeguards, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in
the proclamation or within the period extended upon the approval of the MOFTEC.

(3)

The interested party as used in these Rules shall refer to the applicant for safeguards, foreign manufacturer, exporter, importer
as well as other organization or individual with interest relations.

(4)

The application shall be in filed in written form.

Article 6

An application form shall include the following information:

(1)

The name and basic information of the applicant, and the product to be adjusted;

(2)

Reasons for the adjustment, detailed explanation of the reasons and the relevant evidence;

(3)

Detailed description and specification of the product to be adjusted. The product shall be described in the following order: tariff
number, physical characteristics, chemical characteristics etc, and the description shall reflect the uniqueness and exclusiveness
of that product; if the description through the aforesaid methods can not reflect the uniqueness and exclusiveness of that product,
the usage of the product shall be specified;

(4)

Detailed description and explanation of the similarities and differences, and replaceable nature between the import product to be
adjusted and the domestic product of the same kind or the directly competitive products;

(5)

The import volume and sum of the import product to be adjusted of the previous five years and the forecasted import volume of the
next three years;

(6)

The foreign manufacturer, exporter, importer and end user;

(7)

Seal or signature of the legal representative of the applicant or the person legally authorized thereby.

Article 7

Procedures for acceptance, investigation, decision and proclamation:

(1)

MOFTEC shall check the application submitted by the applicant, and accept the application if it meets the requirements of Article
6 ;

(2)

MOFTEC shall investigate and verify the authenticity of the application through questionnaire, on-spot verification and hearing etc;

(3)

MOFTEC shall investigate the rationality of the application and the interests of the interested parties concerned including the applicant
for safeguards, and verify the description and specification of the product, and may retain experts to make a demonstration when
necessary;

(4)

If the application meets the conditions for adjusting the range of products under safeguards according to the aforesaid procedures,
MOFTEC may decide to adjust the range of products under safeguards and make a proclamation;

(5)

Where MOFTEC hasn’t received an application for adjusting the product range, it may decide to adjust the product range upon the examination
of the materials submitted by the interested parties;

(6)

After the final decision on safeguards is implemented, if it is necessary to adjust the proclamation contents, a decision may be made
by referring to the aforesaid procedures and be proclaimed by MOFTEC.

Article 8

Where safeguards review is involved; the adjustment of product range shall be carried out by referring to these Rules.

Article 9

The power to interpret these Rules shall remain with MOFTEC.

Article 10

These Rules shall enter into force on the 30th day after their proclamation.



 
The Ministry of Foreign Trade and Economic Cooperation
2002-12-13

 







DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTMENT OF BANKING MARKET ACCESS MANAGEMENT STYLE AND PROCEDURE

China Banking Regulatory Commission

Decree of China Banking Regulatory Commission

No.1

The Decision on Adjustment of Banking Market Access Management Style and Procedure has been adopted at the first Chairman Meeting
of CBRC on May 26. It is hereby promulgated and shall enter into force on July 1, 2003.

Liu Mingkang, Chairman of China Banking Regulatory Commission

May 29, 2003

Decision of China Banking Regulatory Commission on Adjustment of Banking Market Access Management Style and Procedure

In order to raise the efficiency of market access and promote financial innovation, China Banking Regulatory Commission decided to
adjust the management style and procedure of banking market access. To be specific, it goes as follows:

I.

Adjust the power of approving newly established branches

(I)

Banking regulatory bureaus or branch bureaus directly under CBRC should receive and check the application materials of the policy-related
banks, the state-owned commercial banks and the joint stock commercial banks within their jurisdiction area for preparing to construct
branches and submit the materials to CBRC for approval. Banking bureaus or branch bureaus directly under CBRC should check the application
materials for opening of the agencies CBRC have approved, present the agencies licenses and make a copy for CBRC. The style and procedure
of approving newly established foreign branches have no changes.

(II)

Banking bureaus or branch bureaus directly under CBRC should receive and approve the application materials of various banks in the
same cities for preparing to construct and opening branches and present them licenses.

(III)

Branch bureaus directly under CBRC are in charge of receiving and checking the application materials of various banks in their jurisdiction
area for preparing to construct branches and submit them to banking regulatory bureaus for approval; Branch banking regulatory bureaus
should check the application materials for opening of the agencies banking regulatory bureaus have approved, present the agencies
licenses and make a copy for banking regulatory bureaus.

II.

Adjust the style of approving new business

(I)

Eliminating the approval of the following business in Chinese banks: domestic factoring, liquidation of funds from agency securities
(Bank-Security Transfer), agent insurance, investment trusteeship by securities companies, trusteeship of credit capital, pension
trusteeship by enterprises. Eliminating the records of the following business of Chinese banks: interest-paid note discount from
buyer or agreement, overdraft of accounts of legal persons and agent of payment of trust products.

(II)

Eliminating the records of the following business in foreign banks: domestic factoring, interest-paid note discount from buyer or
agreement and overdraft of accounts of legal persons.

(III)

Within 10 working days after state-owned commercial banks and holding commercial banks began the above-mentioned business, their general
banks should report to CBRC in written form. Furthermore, city commercial banks, rural commercial banks and foreign banks only need
report to banking regulatory bureaus or branch bureaus directly under CBRC or branch banking regulatory bureaus in the same place
within 10 working days after starting the above-mentioned business.

(IV)

Different banks are enpost_titled to authorize their affiliated agencies meeting the requirement to do the new business which has been
approved. The branches of various banks can start new business after authorized by upper level banks and they should submit written
reports to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 10 working
days after starting the business.

III.

adjust the style of checking and approving the qualification of holding posts of senior administrative personnel

(I)

In Chinese banks, solely-owned banks established by foreign investors and Sino-foreign joint venture banks, for the senior administrative
personnel who make parallel transfer, if they have obtained the approval of taking posts, the former approval is effective and does
not need checking and approving again.

(II)

The above-mentioned senior administrative personnel may submit their auditing reports for leaving posts and materials related to holding
offices to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 1 month after
leaving posts.

(III)

Eliminating the records of post-holding qualifications of directors of foreign-invested banks￿￿ branches.

IV.

Present style and procedure of market access of urban credit cooperatives, rural credit cooperatives and postal saving agencies maintain
unchangeable.



 
China Banking Regulatory Commission
2003-05-29

 







NOTICE OF CHINA BANKING REGULATORY COMMISSION ON FURTHER STRENGTHENING FOREIGN EXCHANGE RISKS MANAGEMENT

China Banking Regulatory Commission

Notice of China Banking Regulatory Commission on Further Strengthening Foreign Exchange Risks Management

To all the banking regulatory bureaus, policy banks, state-owned commercial banks and joint-stock commercial banks,

Recently, some relevant departments have promulgated a series of reform measures regarding Renminbi exchange rate formation mechanism
and the inter-bank foreign exchange market of our country. In particular, the over-the-counter transactions and the system of market
makers were introduced into the inter-bank spot foreign exchange market on January 4, 2006, which pose new requirements and challenges
for the business operations and risk management of the banking industry. For the purpose of effectively controlling foreign exchange
risks of the banking industry and ensuring the safe and stable operation of the banking industry, a notice on the relevant matters
is made hereby as follows:

I.

Attach much importance to and comprehensively evaluate the possible effects of the reform of Renminbi exchange rate formation mechanism
and the development of inter-bank foreign exchange market on foreign exchange businesses and foreign exchange risks of your own bank.
The board of directors and senior managerial staff of each bank (including urban and rural credit cooperatives, the same hereinafter)
shall initiatively study and actively formulate various counter-measures in order to ensure that the development strategies of foreign
exchange businesses conform to its risk management level and level of capital adequacy. All the banks shall further improve the
foreign exchange risk management system, initiatively establish foreign exchange risk management departments or functions independent
of operational foreign exchange business departments and implement the risk management in the whole process of foreign exchange businesses
in light of the new Renminbi exchange rate formation mechanism and trading mode.

II.

Accurately calculate foreign exchange risk open positions, including the single currency open positions and overall open positions
in the bank accounts and trading accounts, and effectively control the overall foreign exchange risks of banks. At the same time,
special attention shall be paid to monitoring and management of foreign exchange risks of the clients that get loans from banks.
The effects of the alteration of the level of foreign exchange risks of such clients to their ability of debt payment shall be timely
evaluated.

III.

Strengthen the quota management of foreign exchange transactions, including the position limits and stop-loss limits of transactions,
etc. All the banks shall formulate monitoring and handling procedures and establish pre-warning mechanism for predicting quota excess,
and timely handle the unapproved transactions which exceed limits according to the policies and procedures for the quota management.
A market-maker bank shall strictly control comprehensive positions of market makers.

IV.

Enhance the price management level and quotation capacity for foreign exchange transactions. All the relevant banking institutions
shall realize an effective link-up of foreign exchange prices between the banks and foreign exchange trading markets, between the
banks and the clients and between head offices and branches, and realize a uniform quotation and dynamic management within their
respective whole bank. All the banks shall give reasonable quotation of foreign exchange transactions based on costs, proceeds and
risks analysis in order to avoid malicious price-related competition in the intra-trade competition or the sales promotion to clients.

V.

Continuously strengthen the system construction. A market-maker bank shall strengthen the construction of trading system, information
system and risk management system, and timely collect and incorporate the foreign exchange transactions of branches into the management
of the head office, and try to collectively balance transactions at the head office in light of the actual situation, and continuously
enhance the computerization level of foreign exchange transactions and foreign exchange risk management.

VI.

Formulate and improve the credit risk management mechanism of trading opponents. With the manner of over-the-counter transactions,
all the banks shall effectively manage the credit risks of trading opponents by strengthening the credit-granting management of trading
opponents, etc., and re-evaluate the credit risks of trading opponents on terms. All the banks shall incorporate the credit risks
of clients involved in foreign exchange transactions into the management system of uniform credit-granting of enterprise legal persons.

VII.

Effectively prevent operational risks in foreign exchange transactions. All the banks shall strictly distinguish and control the operational
risks in foreign exchange transactions by following such procedures as the preparations before transactions, realization and confirmation
of transactions, capital settlement, verification of current accounts and accounting and financial control. The responsibilities
for front, middle and back offices in foreign exchange transactions shall be strictly separated. The staff for transactions shall
carry out transactions in strict accordance with the business operational authorization; the staff in back offices shall carefully
and timely confirm transactions, carry out capital settlement and verification of current accounts, which exhibit their independent
and effective risk monitoring role; and independent middle offices may be set up for monitoring the risks relating to foreign exchange
transactions when necessary. All the banks shall practically strengthen the implementation of various rules and systems and effectively
control the regulation compliance risks.

VIII.

Strengthen the internal audit of foreign exchange risks. The auditing departments shall have professionals that are familiar with
foreign exchange transactions and capable of auditing foreign exchange risks; the auditing departments shall strengthen the examination
of internal audit of foreign exchange risks, timely evaluate the shortcomings of their respective banks with respect to foreign exchange
risks control and ensure the effective implementation of various risk management policies and procedures.

IX.

Strictly control the risks of foreign exchange derivatives. The banks engaging in the derivative-related transactions from the conversion
of Renminbi into foreign currencies shall establish an effective risk management system in line with their transactions of derivatives
in strict accordance with the requirements as prescribed in the Interim Measures for the Management of the Transactions of Derivatives
of Financial Institutions; and they shall actively support and cooperate the exploration and development of new derivatives with
respect to system development and accounting assessment.

X.

Provide qualified staff for foreign exchange transactions and foreign exchange risk management. All the banks shall fully adopt market
means when hiring and selecting the staff for foreign exchange transactions and risk management, establish effective and proper incentive
mechanism and performances assessment system and retain and absorb talents with proper treatments.

All the banks shall seriously implement such supervisory regulations as the Guidelines for the Market Risk Management of Commercial
Banks, the Interim Measures for the Management of the Transactions of Derivatives of Financial Institutions, establish and improve
the risk management system, actively enhance the market risk management level including foreign exchange risks management, and prevent
the occurrence of significant losses of foreign exchange transactions. As to the further innovations in the inter-bank foreign exchange
market, all the banks shall actively communicate and coordinate with relevant departments, formulate the pre-schemes as well as possible,
and be well prepared in all aspects in advance, and shall timely report to the supervisory department in case of any significant
matter.

All the banking regulatory bureaus are required to forward this Notice to all the city commercial banks, urban credit cooperatives,
rural commercial banks, rural cooperative banks, rural credit cooperatives and foreign-funded banks within their respective jurisdiction.

China Banking Regulatory Commission

February 28, 2006



 
China Banking Regulatory Commission
2006-02-28

 







CIRCULAR OF THE STATE COUNCIL CONCERNING SEVERAL POLICIES ON CARRYING OUT THE DEVELOPMENT OF CHINA’S VAST WESTERN REGIONS

The State Council

Circular of the State Council Concerning Several Policies on Carrying out the Development of China’s Vast Western Regions

GuoFa [2000] No.33

October 26, 2000

The People’s Government of province, autonomous regions, municipalities directly under the Central Government, ministries and commissions
and institutions directly under the State Council:

Carrying out the strategy of the development of China’s vast western regions to speed up the development of the central-western regions
is an important composition of the modernization strategy of our country and is a great decision made by the central leadership of
the Party with great foresight and an overall point of view facing the new century, and it has very important economic and political
significance. In order to reflect the highlight support of the state to the western regions, the State Council has drawn up several
policies and measures for carrying out the development of China’s vast western regions. Relevant issues are hereby notified as follows:

1.

Principles of Policy Formulation and Support Emphasis

1)

Principles of Policy Formulation. Carrying out the development of China’s vast western regions is a grand systematic project and an
arduous historical task, the sense of urgency, and full mental preparation for lasting and tough struggle are both needed. We shall
insist on proceeding from actual conditions and working according to objective laws; be energetic and dynamic and acting according
to capabilities; focus on the present while keep the future in view; take the whole situation into account and plan accordingly,
and make scientific reasoning; carry out in steps while give prominence to the emphasis; prevent rushing headlong into mass action
and oppose extravagance and waste; never make things in chaos. Accelerate the changing of ideas, give more effort to opening to the
outside world, carry through the strategy of making the country strong through science and technology and the strategy of sustainable
development, integrate giving full play to the role of market mechanism and doing well macro-adjustment and control, combine the
self-reliance spirit of cadres and masses of people of the western regions and the support from all sides.

2)

Key Tasks and Strategic Objectives. For the present and the years to come, the key tasks of carrying out the development of China’s
vast western regions are: speeding up the construction of infrastructure facilities; improving the protection and development of
environment; consolidating the basic status of agriculture, adjusting the structure of industry, and developing characteristic tourism;
developing undertakings of science and technology, education, culture and sanitation. To work hard for the breakthrough progress
in the construction of infrastructure facilities and environment of the western regions and to make a good beginning of the development
of the western regions in 5 to 10 years. The western regions shall be built into a new one with prosperous economy, advanced society,
stable living, united nationalities and beautiful sceneries at the middle period of the 21st century.

3)

Key regions. The range in which policies on the development of the western are applicable includes Chongqing Municipality, Sichuan
Province, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Shangxi Province, Gansu Province, Ningxia Hui Autonomous Region,
Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolian Autonomous Region and Guangxi Chuang Autonomous Region. Carrying
out the development of China’s vast western regions shall rely on the main arteries of traffic like the Eurasia Continental Bridge,
the Changjiang River Channel and the South-west Access to the Sea, give full play to the role of central cities, connect the units
with lines and spread the experience gained at selected units to an entire area to form characteristic interregional economic areas
of the West Longhai Lanxin Line, the Upper Reaches of the Changjiang River, and the Nan(nin)-Gui(yang)-Kun(ming)area, promote the
development of other regions and carry forward the development of China’s vast western regions step by step and with emphasis.

2.

Policies on Increasing Financial Input

1)

Increase Financial Input for Construction. Increase the proportion of central financial construction funds used in the western regions.
Under the condition that loans are granted according to lending principles, state policy-related bank loans and preferential loans
of international financial organizations and foreign governments shall be arranged for projects of the western regions as much as
possible. The investment in major projects of infrastructure construction of the western regions newly arranged by the state mainly
comes from central policy-related construction funds, other special construction funds, bank loans and foreign investments, no gap
of funds shall be left. The central authorities shall raise special funds for the development of the western regions by various means.
Relevant central departments shall show support to the western regions when drawing up plannings and policies of the development
of industries and arranging special funds. It is encouraged to put enterprise funds into major construction projects of the western
regions.

2)

Give Priority to Construction Projects. Infrastructure facilities like irrigation works, traffic and energy, development and utilization
of superior resources, industrialization projects of characteristic new- and high-tech and military technologies converted to civilian
productions shall have priority in the overall layout of the western regions. Strengthen the build-up of corporate liability system,
project capital system, project bidding system, system of supervision and administration of project quality, system of supervision
and administration of project environment of the western regions, and the prophase work of construction projects.

3)

Increase Financial Transfer Payment. Increase the scale of general transfer payment to the western regions step by step along with
the growth of central financial power. Tilt in favor of the western regions in the distribution of special aid funds for agriculture,
social security, education, science and technology, sanitation, birth control, culture and environment protection. The arrangements
of poverty-relief funds of central finance shall put stress on the western poverty-stricken areas. The central finance shall pay
most of the aid funds and cash subsidies for the food, seeds and sprouts needed for the projects of restoring forest and grassland
from cultivated land, of natural forest protection, and that of the control and treatment of sand carried out with the approval of
the state. Local financial revenue that is affected because of the implementation of projects of restoring forest and grassland from
cultivated land and natural forest protection shall get appropriate aid from central finance.

4)

Increase Financial Credit Support. Banks shall, according to the principle of independence of commercial credit, increase credit input
to the construction of basic industries of the western regions, and put stress on supporting the construction of large and medium-sized
energy projects of railways, trunk line roads, electric power, oil and natural gas. Accelerate the evaluation and examination of
projects of loans affiliated to national debts to guarantee that the loans are in place as soon as possible according to the construction
schedule. As regard to projects of infrastructure facilities with large investment and long construction period, the term of loan
may be appropriately extended according to the project’s construction cycle and repaying ability. The State Development Bank shall
increase the proportion of newly added loans used in the western regions year by year. Expand the scope of loans granted to the projects
of infrastructure facilities, whose rights to charge or the rights to earnings are held in pledge. Increase credit support to the
development of agriculture, environment protection, superior industries, construction of small towns, technology reform of enterprises,
new- and high-tech enterprises and medium- and small-sized enterprises of the western regions. Actively provide study-assist loans
and loans for student apartments in the western regions. Loans for reconstruction of rural electric power grid and key projects of
large sums of loans for superior industries shall be specially arranged by the parent bank of agriculture banks, and direct loans
from the parent banks of various commercial banks shall also be arranged. Introduce banks of stock system to establish branch institutions
in the western regions step by step.

3.

Policies on Improving Investment Environment

1)

Make Efforts to Improve Soft Environment of Investment. Further the reform of state-owned enterprises of the western regions, accelerate
the establishment of the modern enterprise system, and do a good job of strategic adjustment of the state economy and reorganization
of assets of state-owned enterprises. Increase the support to state-owned enterprises of the western regions for clearing debts and
getting out of difficulty, and for reorganization and reconstruction. Strengthen the foster and build-up of commodity and element
markets of the western regions. Actively lead non-public economic sectors like individual economy and private economy of the western
regions to speed up development, and in principle, domestic enterprises of all kinds of systems of ownership are allowed to enter
all investment areas that are open to foreign businessmen according to relevant laws and regulations. Accelerate the establishment
of credit guaranty system of and service institutions for medium- and small-sized enterprises. Except the major and important projects
of the state and projects with special provisions, for all enterprises that invest equity capital or bank loans in projects of industries
encouraged and allowed by the state, the project proposals and research reports of feasibilities may be combined and submitted for
approval according to prescribed procedures, the preliminary designs and commencement reports may be free from the examination and
approval of governments, thus to simplify the procedures of the examination and approval of projects with foreign investments. Further
the conversion of governmental functions, separate governmental functions from enterprise management, reduce matters that need examination
and approval, simplify transaction procedures, intensify the sense of service, eliminate administrative monopoly, regional blockade
and protection, strengthen administration by law and protect legal rights and interests of consumers. Improve environment protection,
prevent rash and repeated construction, and close factories, mines and enterprises that produce inferior products, waste resources,
cause serious pollution and have no safe production conditions.

2)

Implement Policies of Preferential Taxation. With regard to enterprises with domestic investment and enterprises with foreign investment
of industries encouraged by the state, which are established in the western regions, business income tax shall be levied upon at
the rate with 15% reduction during a certain period. With the approval of people’s governments of the provincial level, enterprises
of autonomous minority nationality areas may get reduction or exemption of business income tax regularly. With regard to the establishment
of enterprises of traffic, electric power, irrigation works, postal service and broadcasting in the western regions, business income
tax are exempted for the first two years, and half reduced for the third year. Income of agricultural specialties produced from forests
and grassland restored from cultivated land for the purpose of environment protection may be exempted from agricultural specialty
tax for 10 years. Land used for construction of national highways and provincial highways in the western regions may be exempted
from cultivated land occupancy tax according to land used for construction of railways and civil aviation. The people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall decide on whether the land used for
construction of other highways may be exempted from cultivated land occupancy tax. With regard to the projects of industries encouraged
for domestic investment, industries encouraged for foreign investment and superior industries, when importing advanced technical
equipments for self-use within the total amount of investment, customs duty and value-added tax in the link of import may be exempted,
except those commodities prescribed by the state which shall not be exempted from tax.

3)

Implement Preferential Policies on Land and Mineral Resources. With regard to planting forests and grassland on barren hills and wasteland,
and to restoring forests and grassland from cultivated land of the western regions, the policy of “who restores, plants or operates,
who has the right to the use of land and the ownership of the forests and grassland” shall be implemented. Various economic organizations
and individuals may apply to use barren hills and wasteland owned by the state and conduct environment protection construction like
restoring vegetation of trees and grasses. On the condition that construction investment and afforestation work have been in place,
the right to the use of state-owned land may be obtained by assignment, fees for assignment may be reduced or exempted, the right
to the use of land shall remain unchangeable for 50 years, the term may be extended based on application after expiration, and the
right to the use of land may be inherited and transferred with compensation. If it is necessary to take back the right to the use
of state-owned land because of state construction, compensation shall be given according to law. Ecological forests restored from
cultivated land that enjoy state ration allowance shall not be felled. Strictly protect the basic farmland, and realize the balance
between occupancy and restoration of cultivated land. Further improve the system of examination and approval of land used in construction,
simplify procedures, and promptly provide and protect land used in construction. Income from paid use of current land which is used
in construction of towns shall be used mainly in the infrastructure construction of the towns. Increase policy support to the research,
evaluation, exploration, development, protection and reasonable utilization of mineral resources of the western regions. Draw up
policies and measures to promote legal assignment and transfer of exploration right and exploitation right, and foster the mining
right market.

4)

Adjust by the Mechanism of Price and Charge. Further the price reform, and further increase the proportion of market in the adjustment
of price. Set the price of “transmitting gas from west to east” and “transmitting electricity from west to east” reasonably, and
establish the mechanism of price forming in the manufacturing and marketing links of natural gas, electric power, oil and coal. Accelerate
the steps of water price reform, increase water price to a reasonable level step by step according to the requirements of water saving,
and perfect the collection and administration of charges for water resources. Strengthen unified administration of water resources
of drainage area, strictly implement the system of planned use of water and distribution of water, and promote reasonable utilization
and development of water resources. Charge system of city sewage and garbage disposal shall be carried out at large, and charges
collected shall be specially used in the disposal of sewage and garbage. Improve the pollution prevention and protection of water
resources of upper reaches of rivers and headwater areas. Operators may independently set the price of airplane tickets of inter-provincial,
provincial or regional branch lines in the western regions. Special freightage may apply to railways newly built in the western regions.
Improve general postal service and telegraphic service of the western regions.

4.

Policies on Expanding the Opening to the Outside World and Internal Areas.

1)

Further Expand Areas Opened to Foreign Investment. Encourage foreign businessmen to invest in infrastructure construction and resource
development like agriculture, irrigation works, ecology, traffic, energy, city planning, environment protection, mineral resources,
tourism, etc, and encourage the establishment of technology research and development centers. Expand service and trade areas of the
western regions opened to the outside world, extend experimental foreign investment units of banks, commercial retail enterprises
and foreign trade enterprises to municipalities directly under the Central Government, provincial capitals and capital cities of
autonomous regions, allow banks with foreign investment of the western regions to run RMB business step by step, allow foreign businessmen
to invest in the western regions in telecommunication, insurance, tourism, and to set up Sino-foreign equity joint accounting firms,
law firms, engineering design enterprises, railway and highway freight transport enterprises, municipal public enterprises and other
enterprises of areas promised to open. Experimental units of some areas that are to be opened are allowed to start in the western
regions before other places.

2)

Further Widen Channels of Using Foreign Investment. Experimental units using foreign investment by BOT in the western regions shall
develop experimental units using foreign investment by TOT. Allow projects with foreign investment to launch project financing which
includes RMB. Support enterprises with foreign investment of the western regions that meet requirements to list in domestic and overseas
stock markets. Support enterprises of industries encouraged and allowed by the state of the western regions to attract foreign investment
by transferring managerial authority, selling stock equity, merger and reorganization. Actively explore ways of attracting foreign
investment like Sino-foreign equity joint industry funds and risk investment funds. Encourage enterprises with foreign investment
in China to reinvest in the western regions, and reinvestment projects the foreign investment of which exceeds 25% shall enjoy the
treatments of enterprises with foreign investment. With regard to foreign businessmen investing in infrastructure and superior industry
projects in the western regions, the limit of the proportion of foreign investment may be appropriately eased, and the proportion
of RMB loans for capital assets investment provided by domestic banks may be appropriately eased. Allow some projects of the western
regions to increase the proportion of foreign preferential loans in the total investment appropriately. When superior industries
and export-oriented projects of the western regions introduce in advanced foreign technologies and equipments, the state shall give
support in the arrangement of the quota of foreign commercial loans. Actively make efforts to give priority to projects of the western
regions in the arrangement of multilateral or bilateral capital donations.

3)

Energetically Develop Foreign Economy and Trade. Further enlarge the power of enterprises to make decisions in foreign trade and operation,
encourage developing the export of superior products, foreign projects contracting and labor cooperation, investing and establishing
enterprises abroad especially in the neighboring countries, and ease the limit of personnel entry and exit. With regard to technologies
and equipments in urgent need for economic development of the western regions, proper consideration shall be given in import administration.
With regard to overseas tourists entering China in important tourism cities of the western regions, landing visa and other policies
of convenient entry visa shall be implemented according to situations. Carry out more preferential policies of border trade, ease
limits on matters like drawback, business scope of import and export commodities, import and export commodity quotas, license administration
and personnel entry and exit, promote the western regions and neighboring countries to open markets mutually, and promote healthy
development of economic and technological cooperation with neighboring countries and areas.

4)

Promote Regional Cooperation and Mutual Support. On the condition that repeated constructions are prevented, the transfer of under-developed
technologies and environment pollution are forbidden, strong measures shall be taken in aspects like investment, finance, taxation,
credit, economy and trade, industry and commerce, labor and statistics to support enterprises of the east and middle regions to cooperate
in various forms in the western regions in investing and establishing enterprises, purchasing shares and becoming shareholders, purchase
and merger, and technology transfer. Under the guidance of central and local governments, mobilize all forces of society to strengthen
mutual support between east and west, further increase support to the western poverty-stricken areas and minority nationality areas,
continue to promote the “Prosper the Border Area and Enrich the People” Action. Develop various forms of regional economic cooperation
centering on the key areas of the western development

5.

Policies on Attracting Qualified Personnel and Developing Science and Technology, and Education.

1)

Attract and Wisely Use Qualified Personnel. Draw up policies in favor of the western regions to attract and retain qualified personnel,
and to encourage them to establish business. Along with the reform of the wages system, provide allowance for tough and remote areas,
and increase the wages level of personnel of departments and institutions of the western regions to be equal to or above the national
average level step by step. Relying on key tasks, major construction projects and important research topics, provide favorable work
and living conditions to attract domestic and foreign personnel with professional talent to devote themselves in the western development.
Reform the domiciliary control system, allow residents of other regions, who go to the western regions to make investments, run business
and take part in the development, to keep their registered permanent residences of original domiciles. For personnel who have legal
and fixed domicile in cities below the prefecture level (including cities of the prefecture level) and small towns of the western
regions, and have stable jobs or living incomes, permanent residence in the towns may be registered based on their own wills. Encourage
reasonable transfer of spare agriculture labor force and reasonable inter-regional population flow. Expand exchange of cadres between
the east and western regions. Relevant central departments, universities and colleges, and research institutions of the east regions
shall increase intellectual service and personnel support provided to the western regions. Increase the introduction of foreign talents
to the western regions. Relying on relevant central departments and coastal economically developed areas, strengthen the foster of
leaders and cadres, cadres of minority nationalities of the western regions and the training of civil servants, professional technological
personnel and enterprises managerial personnel.

2)

Bring the Leading Role of Science and Technology into Full Play. Give more support tilting to the western regions in all kinds of
planned science and technology funds, and increase the amount of science and technology funds used in the western regions step by
step. Centering on the key tasks of the development of western regions, strengthen the build-up of science and technology capacity,
organize brainstorm projects of key technologies of commonness, speed up the spread and application of important technological achievements
and the pace of industrialization. Support the development of the industrialization of military technologies converted to civilian
productions. Support research institutions, colleges and universities of the western regions to strengthen characteristics application
research and basic research. Further the reform of science and technology system, accelerate the transformation of research institutions
engaged in application research to enterprises, strengthen the association of production, study and research, promote the close integration
of science and technology and economy. Allow and increase the proportion of development expenses drew from the sales amount by enterprises
of the western regions. Give more support of innovation funds for small- and medium-sized science and technology enterprises to projects,
which meet the requirements, of the western regions. Simplify the registration of industry and commerce, and increase the upper limit
of the proportion of stock equity, option and intellectual property in the total capital when science and technology personnel establish
science and technology enterprises in the western regions,

3)

Increase Educational Input. Continue to carry out compulsory education projects in the poverty-stricken areas, give more support of
the state to compulsory education in the western regions, increase funds input and make efforts to speed up the realization of nine-year
compulsory education. Give support to the construction of universities and colleges of the western regions, and the universities
and colleges in the east and middle regions are encouraged to expand the scale of enrollment of the students from the western regions.
Strengthen the project of mutual support of schools of the east regions to schools of western poverty-stricken areas, and the project
of mutual support of schools of large and middle sized cities of the western regions to schools of rural depressed areas. Build up
long-distance education system in the western regions. Strengthen the education and training of grassroots cadres and peasants of
scientific, technological and cultural knowledge.

4)

Strengthen the Construction of Cultural and Sanitary Establishments. State planned subsidies for construction of local cultural establishments,
investment for broadcasting and television establishments and cultural relics, shall tilt in favor of the western regions. Further
carry out economic policies for state cultural propaganda units to prosper literature creations. Carry forward “Village to Village”
construction of broadcasting and television establishments of natural villages, further expand the effective coverage of broadcasting
and television. Promote the development of cultural undertakings of border areas and minority nationality areas. Support the cultural
build-up and spiritual civilization build-up of the western regions. Give more support to the sanitary and birth control build-up
of the western regions, put stress on establishing and perfecting the primary health care system of rural areas.

The Office of the Development of Western Regions of the State Council shall, jointly with relevant departments, act promptly to study
and work out relevant detailed rules of the policies or opinions on implementation according to the above policies and measures,
and promulgate and put them into effect with the approval of the State Council. Governments of all levels of the western regions
shall implement unified policies on the development of China’s vast western regions according to the provisions of the state.

The above policies and measures mainly apply to the current time and 10 years (year 2001 to 2010) to come from now on, and will be
further perfected with the implementation of the strategy of the development of China’s vast western regions. All policies, measures
and the detailed rules of them prescribed shall come into force as of January 1, 2001.



 
The State Council
2000-10-26

 







PROVISIONS OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, AND THE STATE ECONOMIC AND TRADE COMMISSION ON THE RELEVANT ISSUES CONCERNING THE EXECUTION OF THE CIRCULAR ON THE RELEVANT ISSUES FOR PYRAMID SELLING ENTERPRISES WITH FOREIGN INVESTMENT TO TRANSFORM THEIR SELLING METHODS

20051231

The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Economic and
Trade Commission

Provisions of the State Administration for Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the
State Economic and Trade Commission on the Relevant Issues Concerning the Execution of the “Circular on the Relevant Issues for Pyramid
Selling Enterprises with Foreign Investment to Transform their Selling Methods”

GongShangGongZi [2002] No.31

February 4, 2002

The administrative bureaus for industry and commerce, the commissions of foreign trade and economic cooperation and the economic and
trade commissions (departments) of all provinces, autonomous regions and municipalities directly under the Central Government:

In order to execute the requirements in the “Circular of the General Office of the State Council on Carrying out the Special Punishment
Action of Severely Striking Pyramid Selling” (GuoBanFa [2001] No. 80), strengthen the supervision and administration of the enterprises
with foreign investment which engaged in the pyramid selling business activities but are approved to transform their selling methods
(hereinafter referred to as the transforming enterprises), the relevant issues concerning the execution of the “Circular on the Relevant
Issues for Pyramid Selling Enterprises with foreign investment to Transform Their Selling Methods” (ZiFa [1998] No.455 of the MOFTEC)
are hereby stipulated as follows:

I.

The transforming enterprises must strictly abide by the provisions in the “Circular of the State Council on Prohibiting Pyramid Selling
Business Activities” (GuoFa [1998] No.10) and the “Circular of the General Office of the State Council on Transmitting the Opinions
of the State Administration for Industry and Commerce and Other Departments on Severely Striking the Illegal Business Activities
Such as Pyramid Selling and Covert Pyramid Selling, etc.” (GuoBanFa [2000] No.55) as well as the “Circular on the Relevant Issues
for Pyramid Selling Enterprises with foreign investment to Transform Their Selling Methods” (ZiFa [1998] No.455 of the MOFTEC), and
shall not engage in the pyramid selling or covert pyramid selling activities in any form.

II.

A transforming enterprise shall not organize the employed salesmen into a network in the name of a department, group or team, etc.
to engage in marketing activities.

III.

A transforming enterprise shall calculate the remuneration of each employed salesman only on the basis of the amount of the products
he has directly sold to the final consumers, and shall not calculate any remuneration for the salesmen by reason of recommendation
for accession or else. The sales managers of a transforming enterprise must be formal employees of the enterprise.

IV.

A transforming enterprise must not employ salesmen to sell its products until it has established stores within the jurisdiction of
the region or city (also municipality directly under the Central Government, district or county) where its branch, which is approved
to be established and to employ salesmen, is located.

A transforming enterprise’s branch at the provincial level which was approved to be established and to employ salesmen, shall establish
stores in the regions and cities within the province (autonomous region, municipality directly under the Central Government) where
it carries out its selling activities, and may not employ salesmen to engage in the selling activities until it has been approved
and registered by the administrative organ for industry and commerce.

V.

A transforming enterprise shall conclude a contract with each employed salesman, and the contract shall state the salesman and the
store to which he belongs. Each salesman is only allowed to engage in the selling activities within the jurisdiction of the region
or city where his store is located, instead of engaging in the selling activities in different regions.

VI.

A transforming enterprise shall not employ any State civil servant, active serviceman, regular full-time student or any other person
prohibited by laws or regulations from doing concurrent business to engage in the selling activities.

A salesman employed by a transforming enterprise shall have the identification certificate or temporary residential certificate that
indicates he is at the locality of the store.

VII.

A transforming enterprise shall ensure that the consumers are able to buy from its stores all the products it has produced, and shall
not stipulate directly or in a disguised form that part of the products can only be bought through the salesmen.

VIII.

A transforming enterprise shall not set forth the premise to employ salesmen by selling them certain documents or in any other name,
nor shall it force any salesman to purchase such documents. A transforming enterprise shall neither demand the salesmen to buy up
its products it supplies by force, implication or inducement, etc., nor demand the salesmen in a disguised form to buy up its products
it supplies in the name of paying the training expenses, entry fee, suretyship bond or guaranty deposit, etc..

IX.

A salesman shall, when selling products to consumers, show the certificate indicating the transforming enterprise to which he belongs
and the store in which he works. When carrying out selling activities, a salesman may only introduce the functions, efficacy and
methods of use of the company’s products, instead of making propaganda which overstates the product’s functions or debases commodities
of the same category, taking the opportunity to recruit salesmen or develop the next level of salesmen for the transforming enterprise,
or taking the opportunity to organize training activities.

X.

A transforming enterprise shall centrally organize the training activities of its salesmen, shall bear training expenses, and shall
accept the inspections and supervisions of relevant departments. The managers, lecturers and tutors of the training activities must
be formal employees of the transforming enterprise. No salesman is allowed to organize trainings or to engage in management. The
contents of the trainings shall be limited to the introduction of product-related knowledge, selling skills and interpretation of
the company rules and systems, and no propaganda shall be made to overstate the product’s functions or debase other commodities of
the same category. The number of the salesmen receiving training each time shall not exceed 50.

A transforming enterprise must work out the annual training plans for the salesmen (including the time, place, contents and number
of participants, etc. of trainings), shall, by the end of November of each year, submit the plans to the State Administration for
Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the State Economic and Trade Commission for record,
and shall accept the inspections and supervisions of the relevant departments.

XI.

A transforming enterprise’s salesmen shall engage in selling activities in accordance with the relevant provisions, and the transforming
enterprise shall bear the liabilities for its salesmen’s acts in violation of laws or rules during their selling of the enterprise’s
products.

XII.

The validity period of the “Salesman’s Certificate” issued by the original State Bureau of Internal Trade shall expire at the end
of 2001. From the year 2002, the State economic and trade department will, jointly with the labor department, enact separate administrative
measures in accordance with the relevant provisions of the State.

A transforming enterprise shall report, every half a year, the number of the salesmen in each province and the relevant information
to the State Administration of Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the State Economic
and Trade Commission.

XIII.

The transforming enterprises’ acts in violation of laws or rules shall be investigated by the administrative organ of industry and
commerce in accordance with the relevant provisions of the State.

XIV.

These Provisions shall enter into force as of April 1, 2002.



 
The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State
Economic and Trade Commission
2002-02-04

 







CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON PUBLICIZING THE SPECIAL PROVISIONS ON THE CONTENT AND FORMAT OF DIRECTIONS OF FOREIGN-INVESTED COMPANIES BY STOCK IN RAISING CAPITAL BY FLOATING SHARES – RULE 17 ON INFORMATION DISCLOSURE BY COMPANIES PUBLICLY ISSUING SECURITIES

The China Securities Regulatory Commission Commission

Circular of the China Securities Regulatory Commission on Publicizing the Special Provisions on the Content and Format of Directions
of Foreign-invested Companies by Stock in Raising Capital by Floating Shares —Rule 17 on Information Disclosure by Companies Publicly
Issuing Securities

ZhengJianFa [2002] No.17

March 19, 2002

Foreign-invested companies by stock planning to issue securities to the public:

In order to normalize the information disclosure behavior of foreign-invested companies by stock and protect the legitimate rights
and interests of the investors, the Commission formulates the Special Provisions on the Content and Format of Directions of Foreign-invested
Companies by Stock in Raising Capital by Floating Shares —Rule 17 on Information Disclosure by Companies Publicly Issuing Securities,
which is hereby publicized for implementation.

Attachment:Special Provisions on the Content and Format of Directions of Foreign-invested Companies by Stock in Raising Capital by Floating Shares
—Rule 17 on Information Disclosure by Companies Publicly Issuing Securities

Article 1

The Provisions are formulated in line with the Corporate Law of the People’s Republic of China, the Security Law of the People’s Republic
of China among others in order to normalize the information disclosure behavior of the foreign-invested companies by stock and safeguard
the legitimate rights and interests of the investors.

Article 2

When compiling the Directions of Fund-raising by floating shares for issuing shares to the public, the stock issuers shall follow
both the general regulations of China Securities Regulatory Commission on the content and format of the directions, and the requirements
of the Special Provisions.

Article 3

The stock issuers shall disclose the following risks that may possibly exist:

(i)

The risk of depending on the foreign raw material providers, foreign clients and foreign technical services.

(ii)

The risk of possible changes in China’s laws, regulations and policies concerning tax preferences to enterprises with foreign investment.

(iii)

The risk of possible changes in the laws and regulations on investment in or technology transfer to China of the domicile countries
or regions of the foreign stockholders or the company headquarters.

(iv)

The risk of exchange rate.

Article 4

The issuer shall disclose the laws and regulations on investment in and technology transfer to China of the domicile or headquarter
countries or regions of foreign stockholders with 5% or more of the total stocks.

The issuer shall disclose such information as limitation on equity transfer by the articles of association of the company.

Article 5

The issuer shall disclose in detail information on affiliated trade with the stockholders, including but not limited to:

(i)

Whether the business and technology of the issuer depend on the foreign stockholders, and whether there are some limitations on the
use of trademark, patent, and expertise. Measures to safeguard the public investors’ interests shall be clarified, should the above
circumstances exist.

(ii)

Information on the affiliated trade with foreign stockholders in the past three years, including but not limited to supply of raw
material, product sales, collection of technology transfer fee, administration and sales expenses apportionment as well as pricing
criteria, the opinions of the accounting firms auditing the issuance on the fairness and equitability of the affiliated trade, concrete
measures to ensure the fairness and equitability of the affiliated trade. The total volume of next year’s affiliated shall be announced
in the discussions and analysis among the management. In case the issuer is a manufacturing company, sources of raw materials and
product sales channels shall also be disclosed.

(iii)

The main content and the concrete implementation of the agreement on parting market signed by the issuer and other foreign stockers.

Article 6

The stock issuer shall disclose the nationalities, rights of permanent residence overseas of the directors and senior executives as
well as their positions in other institutions both at home and abroad.

Article 7

The foreign investment companies by stock established in the mainland of China by investors from by the investors of Hong Kong, Macao
and Taiwan regions shall also comply with this provision.

Article 8

The provision shall enter into force as of the date of promulgation.



 
The China Securities Regulatory Commission Commission
2002-03-19

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON FURTHER ADJUSTING POLICIES ON THE ADMINISTRATION OF FOREIGN EXCHANGE ACCOUNTS UNDER CURRENT ACCOUNT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange (SAFE) on Further Adjusting Policies on the Administration of Foreign Exchange
Accounts Under Current Account

HuiFa [2002] No.87

September 9, 2002

SAFE branches in all provinces, autonomous regions, municipalities directly under the Central Government, exchange administration
offices, and SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen, Ningbo, head offices of all designated Chinese-funded
foreign exchange banks:

In order to adapt to new circumstances after China’s entry into the WTO, further improve the foreign exchange administration under
current account, lower enterprises’ operational costs, and promote the development of foreign trade and economic cooperation, the
SAFE has decided to adjust policies on the administration of foreign exchange accounts under current account. A circular on relevant
issues is given hereunder:

1.

Further lower the threshold for Chinese-funded enterprises to open foreign exchange accounts, unify the requirements for opening foreign
exchange accounts under current account for both Chinese-funded and enterprises with foreign investment. Any domestic entity authorized
by or put on record in the competent administration agency to conduct foreign business or having foreign exchange proceeds under
current account (including enterprise with foreign investment) may apply to the SAFE office in its locality for opening a foreign
exchange account under current account.

2.

The existing foreign exchange settlement account under current account and special foreign exchange account of an enterprise shall
be consolidated into a foreign exchange account under current account. Foreign exchange account under current account shall be credited
with foreign exchange proceeds from current transactions and debited with foreign exchange payments for current transactions and
payments for capital transactions approved by a SAFE office.

3.

Balance ceiling shall be set for all foreign exchange accounts under current account. The balance ceiling of a domestic entity’s foreign
exchange account under current account shall be 20 percent of the amount of its foreign exchange proceeds from current transactions
for the previous year in principle. If an entity that has no foreign exchange proceeds under current account for the previous year
opens a new foreign exchange account under current account, the initial balance ceiling shall not exceed the equivalent of US$100,000
in principle.

SAFE offices in all localities have the right to appropriately adjust the balance ceilings of foreign exchange accounts under current
account of domestic entities under their jurisdiction in accordance with the business characteristics and actual needs of the entities
and the regional grand total quota ratified by the SAFE, provided that the total of the balance ceilings of all the domestic entities’
foreign exchange accounts under current account do not exceed the regional quota.

4.

Foreign exchange settlement accounts and special foreign exchange accounts opened before the implementation of this circular may be
used in accordance with the original scope of receipts and payments and balance ceiling. However, domestic entities shall go through
procedure of consolidating the accounts and deciding the new balance ceilings at the SAFE offices in their localities before December
31, 2003.

SAFE offices in all localities may schedule the account consolidation and new balance ceiling ratification for domestic entities in
their respective localities before December 31, 2003 in accordance with their supervision ability and the local conditions.

5.

Employment of the management information system for foreign exchange account (hereinafter referred to as “MIS”) shall be energetically
prompted. In areas where the MIS has been used and supervision over foreign exchange account under current account has been exercised
through the MIS, the SAFE offices there may take flexible measures in supervising foreign exchange account under current account,
such as further loosing the restriction on the number of foreign exchange accounts under current account, making no more annual inspection
on foreign exchange accounts under current account, giving up the requirement on banks to submit paper-made statements related to
foreign exchange accounts under current account.

6.

This circular shall be implemented as from October 15, 2002. For matters clearly stipulated in this circular, this circular shall
be followed, otherwise, current rules on the administration of foreign exchange account shall be followed.

On receiving this circular, all SAFE branches shall immediately transmit it to the sub-branches and foreign-funded banks under their
jurisdiction. Head offices of all designated Chinese-funded foreign exchange banks shall transmit it to their branches and sub-branches
as soon as possible. Any problem encountered during the implementation shall be reported in time to the Current Account Management
Department of the SAFE.

Attachment:

Detailed Implementing Rules on the Administration of Domestic Entities’ Foreign Exchange Accounts under Current Account Attachment:Detailed Implementing Rules on the Administration of Domestic Entities’ Foreign Exchange Accounts under Current Account

Chapter I General Provisions

Article 1

In accordance with Regulations on the Exchange System of the People’s Republic of China, the Rules on the Administration of Domestic
Foreign Exchange Accounts, and the Circular on Further Adjusting Policies on the Administration of the Foreign Exchange Accounts
Under Current Account, this Rules is enacted for the purpose of satisfying the needs of the new circumstances after China’s entry
into the WTO, lowering enterprises’ operational costs, and further improving foreign exchange administration under current account.

Article 2

Domestic entities in this Rules refer to government agencies, enterprises and institutions, social organizations, and armed forces
etc., including enterprises with foreign investment but not financial institutions.

Chapter II Opening and Use of a Foreign Exchange Account under Current Account

Article 3

A domestic entity satisfying either of the two conditions listed below may apply for opening a foreign exchange account under current
account at the SAFE office in its locality.

1.

Authorized by or put on record in a competent administration agency to run foreign business or having foreign exchange proceeds under
current account;

2.

Having foreign exchange proceeds from special sources and for prescribed purposes, such as donation, aid, and international postal
remittance.

Article 4

A foreign exchange account under current account shall be credited with foreign exchange proceeds from current transactions and debited
with foreign exchange payments to current transactions and payments under capital account approved by a SAFE office.

The scope of receipts and payments of a foreign exchange account under current account with special sources of proceeds and prescribed
purposes, such as donation, aid, and international postal remittance shall be checked and ratified in accordance with related contract
or agreement.

Article 5

A domestic entity shall apply to the SAFE office in its locality for opening a foreign exchange account under current account by presenting
the materials listed below:

1.

A written application for the opening of a foreign exchange account under current account;

2.

The original and a photocopy of the business license or certificate of corporation registration;

3.

The original and a photocopy of the permit of foreign business issued by the competent administration agency, or the Certificate of
Registration of enterprise with foreign investment (hereinafter referred to as Certificate of Registration) (see attachment 1), or
evidential materials for the foreign exchange proceeds under current account (such as memo of foreign exchange sale);

4.

The original and a photocopy of the certificate of institutional identification code;

5.

Other materials required by the SAFE office.

Article 6

The SAFE office shall examine the materials submitted by the applying domestic enterprise, and issue a “Certificate of Approval for
Opening a Foreign Exchange Account under Current Account” (hereinafter referred to as “Approval for Opening an Account” or AOA) (see
attachment 2).

Article 7

When approving the application by a domestic entity for opening an account, the SAFE office shall prescribe the balance ceiling of
the foreign exchange account under current account, and record it in the AOA.

Article 8

Balance ceiling of a domestic entity’s foreign exchange account under current account shall be 20 percent of the amount of its foreign
exchange proceeds from current transactions in the previous year.

Balance ceiling of a foreign exchange account under current account for earmarked proceeds from special sources, such as donation,
aid, and international postal remittance shall be 100 percent of the amount of the foreign exchange proceeds from the aforesaid special
sources.

The SAFE office may prescribe an initial balance ceiling up to the equivalent of USD100,000 for the foreign exchange account under
current account opened by a qualified domestic entity that does not have foreign exchange proceeds under current account in the previous
year.

The SAFE may adjust the criteria for prescribing balance ceilings of domestic entities’ foreign exchange accounts under current account.

Article 9

The balance ceiling of a foreign exchange account under current account of a domestic entity shall be prescribed exclusively in US
dollar. Balance ceiling of such account in other currencies shall be converted into US dollars by the SAFE office at applicable internal
converting rate on the date when the account is opened.

Article 10

The SAFE shall prescribe a regional grand quota for balance ceilings of foreign exchange accounts under current account for each SAFE
branch in January of every year in accordance with foreign exchange proceeds under current account reflected in the BOP statistical
reporting for the previous year submitted by the branch. The regional grand quota shall be 25 percent of the region’s foreign exchange
proceeds under current account in the previous year.

The SAFE may adjust the criteria for prescribing the regional grand quota in accordance with the development of balance of payments
of China.

Article 11

A SAFE office may adjust upward or downward once a year in principle the balance ceiling of the foreign exchange account under current
account of a domestic entity in accordance with the regional grand quota prescribed by the SAFE, the local actual situation, and
real need of the domestic entity if the entity’s foreign exchange proceeds has changed significantly, provided that the total of
the balance ceilings of all the domestic entities’ foreign exchange accounts under current account does not exceed the regional grand
quota prescribed by the SAFE.

Article 12

A domestic entity shall open a foreign exchange account under current account at a bank or other kind of financial institution conducting
foreign exchange business (hereinafter referred to as “account opening financial institution” or AOFI) by presenting the AOA issued
by a SAFE office.

After opening a foreign exchange account under current account for a Chinese-funded domestic entity, the AOFI shall record the account
number, currency, date of opening, and balance ceiling in corresponding columns of the “AOA”, and return to the Chinese-funded entity
the fourth copy of the “AOA”. The Chinese-funded domestic entity shall present the fourth copy of the “AOA” to the SAFE office in
the locality where the account has been opened, and apply for a Certificate for the Use of Foreign Exchange Account (see attachment
3) within 10 working days after the date of opening the account.

After opening a foreign exchange account under current account for an enterprise with foreign investment, the AOFI shall record the
account number, currency, date of opening, and balance ceiling in corresponding columns of the Certificate of Registration and the
“AOA”. The AOFI shall send the fourth copy of the “AOA” to the SAFE office in the locality where the account has been opened within
the first 5 working days of the succeeding month.

After opening a foreign exchange account under current account for a domestic entity, the AOFI in an area where the MIS has been employed
and supervision over foreign exchange account under current account is exercised through the MIS (hereinafter referred to as MIS
area) shall report the information of account opening to the SAFE office in accordance with the Standard on the Interface between
the MIS and Data of designated foreign exchange banks. The AOFI needs not to return the fourth copy of the AOA to the Chinese-funded
domestic entity; and the Chinese-funded domestic entity needs not to apply for a Certificate for the Use of Foreign Exchange Account.

Article 13

A domestic entity can only open one foreign exchange account under current account in principle. Separate approval of the SAFE office
is not needed for opening a foreign exchange account under current account in a different currency in the same bank.

In an MIS area, a qualified domestic entity may apply to the SAFE office for opening two or more foreign exchange accounts under current
account in accordance with its actual need. There is no restriction on the number of accounts and the choice of AOFI. The AOFI shall
open account for the domestic entity in strict accordance with rules and transmit the information of account opening to the SAFE
office concerned via the MIS.

In case a domestic entity opens accounts in two or more currencies, or opens two or more accounts under current account, the SAFE
office shall prescribe a separate balance ceiling for every account under current account in every currency. The specific breakdown
of its prescribed balance ceiling may be decided by the domestic entity on its own, provided that the total of the balance ceilings
of all its accounts under current account do not exceed its prescribed balance ceiling.

Article 14

A domestic entity may either enter its foreign exchange proceeds from current transactions into its foreign exchange account under
current account or sell them to the bank. Once the balance of the foreign exchange account under current account exceeds the ceiling,
the surplus shall be sold to the bank.

Article 15

If the balance of a domestic entity’s foreign exchange account under current account exceeds the ceiling, the AOFI shall inform the
entity to sell the surplus in good time. IF the domestic entity fails to go through the procedure of selling the surplus in good
time, the AOFI has the right to compulsively exchange the surplus into renminbi in 10 working days after the occurrence of the excess,
and inform the domestic entity in 5 working days after the exchange.

Article 16

A domestic entity shall, in principle, not transfer its deposits in the foreign exchange account under current account into time deposit.
If the transfer is indeed necessary, the entity shall apply for it to the SAFE office in the locality where the account is opened
by presenting a written application, the Certificate for the Use of Foreign Exchange Account or the Certificate of Registration,
the original AOA, and account statement. Time deposit transferred from the foreign exchange account under current account shall be
included in calculating the balance ceiling of the source account under current account.

In an MIS area, a domestic entity may transfer its deposits in foreign exchange account under current account into time deposit with
the same AOFI. The time deposit shall be included in calculating the balance ceiling of the source account. The AOFI shall send the
information on the account opening for the time deposit to the local SAFE office in accordance with the serial number of the original
AOA for the source account.

Article 17

Transfer of foreign exchange funds between foreign exchange accounts under current account of the same nature opened by a domestic
entity with different AOFIs is permitted.

Chapter III Change of a Foreign Exchange Account under Current Account

Article 18

If a domestic entity needs to change the name of account holder or adjust the balance ceiling as required by business after opening
a foreign exchange account under current account, it shall apply to the SAFE office in the locality where the account has been opened
by presenting a written application, the Certificate for the Use of Foreign Exchange Account or the Certificate of Registration,
the original AOA, and account statement. Then the change shall be made at the AOFI by presenting the Certificate of Approval for
Change of Account (see attachment 4) issued by the said SAFE office. After handling the change, the AOFI shall send the fourth copy
of the Certificate of Approval for Change of Account to the said SAFE office in the first 5 working days of the succeeding month.

Article 19

If a domestic entity needs to open a foreign exchange account under current account outside its locality of registration as required
by business, it shall report to the SAFE office in its locality of registration for record, and apply to the SAFE office in the locality
where the account is going to be opened by presenting the Certificate for Outside Account Opening (see attachment 5) issued by the
former SAFE office and documents stipulated in Article 5 of this Rules, and then handle the procedure of opening the account at
an AOFI by presenting the AOA issued by the latter SAFE office. The latter SAFE office shall promptly inform the former SAFE office
in written form of the account opened.

A domestic entity’s foreign exchange account under current account opened outside its locality of registration shall be supervised
by the SAFE office in the locality where the account is opened. The balance ceiling of the outside account shall be prescribed by
this SAFE office in accordance with the entity’s foreign exchange proceeds reflected in the local BOP statistics reporting for the
previous year; and be included in calculating the balance ceiling of the region where the account is opened.

Chapter IV Closure and Cancellation of a Foreign Exchange Account under Current Account

Article 20

If a domestic entity wants to close a foreign exchange account under current account, it shall apply to the SAFE office, and handle
the closing procedure by presenting the “Certificate of Approval for Account Closing” (see attachment 6) issued by the SAFE office.
After closing the foreign exchange account, the AOFI shall send the fourth copy of the said Certificate to the SAFE office in the
locality where the account was opened within the first 5 working days of the succeeding month.

After an outside foreign exchange account of a domestic entity is closed, the SAFE office in the locality where the account was opened
shall inform in time the SAFE office in the entity’s locality of registration of the closure of the account in written form.

If a domestic entity holds another foreign exchange account under current account of the same nature as the closed one, balance in
the closed account may be transferred to that account. If there is no account of the same nature, balance in the closed account shall
be sold.

Article 21

If a domestic entity’s foreign exchange account under current account has neither receipts nor payments in one year after it is opened,
the AOFI shall report the case to the local SAFE office in January of the succeeding year. The SAFE office shall issue a “Notice
for the Cancellation of Account” (see attachment 7) to the entity and to the AOFI simultaneously.

The domestic entity shall go to the AOFI to handle the account closing procedure within 5 working days after receiving the said Notice.
If the entity fails to do so beyond the time limit, the AOFI may compulsively close the account and exchange the account balance
into renminbi 5 working days after receiving the said Notice. Renminbi from the exchange shall be dealt with in accordance with relevant
stipulations of the People’s Bank of China. After closing the account, the AOFI shall send the fourth copy of the “Notice for the
Cancellation of Account” to the SAFE office in the locality where the account was opened within the first 5 working days of the succeeding
month.

Article 22

Once the balance of a foreign exchange account under current account opened by a domestic entity with earmarked proceeds from special
sources such as donation, aid, and international postal remittance comes to zero, the account shall be closed in accordance with
Article 20 of this Rules.

Chapter V Supervision over a Foreign Exchange Account under Current Account

Article 23

An AOFI shall submit to the SAFE office “Monthly Statement of Domestic Entities’ Foreign Exchange Accounts under Current Account”
(see attachment 8) for the previous month within the first 5 working days of every month. All SAFE branches shall collect the “Monthly
Statement of Domestic Entity’s Foreign Exchange Account under Current Account” submitted by SAFE offices under their respective jurisdiction
and then present itemized reports to the SAFE within the first 10 working days of every month.

AOFIs in MIS areas shall transmit to SAFE offices the information on foreign exchange accounts under current account via the MIS on
a daily basis. AOFIs and SAFE offices there do not have to submit the statement stipulated in the previous paragraph.

Article 24

SAFE offices shall conduct annual inspection on the foreign exchange accounts under current account of the domestic entities under
their respective jurisdiction Annual inspection shall not be conducted on foreign exchange accounts under current account of domestic
entities in MIS areas.

Article 25

If a domestic entity that has not opened a foreign exchange settlement account or special account under current account before the
implementation of this Rules applies for the opening of a foreign exchange account under current account after the implementation
of this Rules, the SAFE office concerned shall approve its application in accordance with this Rules and prescribe a balance ceiling
for its account.

If a domestic entity that has opened a foreign exchange settlement account and special account under current account before the implementation
of this Rules applies for the opening of a foreign exchange account under current account after the implementation of this Rules,
the SAFE office concerned shall consolidate its settlement account and special account in accordance with this Rules, approve its
application for opening account, and prescribe a balance ceiling for the account ratified.

If a domestic entity that has opened a foreign exchange settlement account and special account under current account before the implementation
of this Rules does not apply for opening a foreign exchange account under current account after the implementation of this Rules,
its foreign exchange settlement account and special account may be used in accordance with the original scope of receipts and payment
and balance ceiling until December 31, 2003.

SAFE offices may schedule the account consolidation and balance ceiling ratification for domestic entities under their respective
jurisdiction before December 31, 2003 at latest in accordance with their own supervision ability, actual need of work and local conditions.

Article 26

The foreign exchange accounts under current account of domestic entities in special economic zones approved by the State Council and
subject to close supervision by customs (including bonded areas, export processing zones, and the diamond exchange) shall still be
opened and used in accordance with existing relevant regulations. However, foreign exchange account of said domestic entities in
MIS areas shall be incorporated into the MIS.

Article 27

A domestic entity or an AOFI violating this Rules shall be punished by the relevant SAFE office in accordance with Regulations on
the Exchange System of the People’s Republic of China, Rules on the Administration of Domestic Foreign Exchange Account, and other
relevant regulations.

Chapter VI Supplementary Provisions

Article 28

The Certificate for the Use of Foreign Exchange Account and the Certificate of Registration shall be printed exclusively by the SAFE.
The “AOA”, the “Certificate of Approval for Change of Account”, the “Certificate of Record for Outside Account”, the “Certificate
of Approval for Account Closing” and the “Notice for the Cancellation of Account” shall be designed exclusively by the SAFE and printed
by SAFE branches of their own accord. Their term of validity shall be one month after issuance.

Article 29

The SAFE shall be responsible for the interpretation of this Rules. Article 30 This Rules shall enter into force as from October
15, 2002.



 
The State Administration of Foreign Exchange
2002-09-09

 







REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON EXPORT CONTROL OF DUAL-USE BIOLOGICAL AGENTS AND RELATED EQUIPMENT AND TECHNOLOGIES

The State Council

Decree of the State Council of the People’s Republic of China

No.365

Regulations of the People’s Republic of China on Export Control of Dual-Use Biological Agents and Related Equipment and Technologies
are hereby promulgated and shall be come into force as of the day of Dec 1, 2002.

Premier of the State Council, Zhu Rongji

October 14, 2002

Regulations of the People’s Republic of China on Export Control of Dual-Use Biological Agents and Related Equipment and Technologies

Article 1

These Regulations are formulated for the purposes of strengthening export control of dual-use biological agents and related equipment
and technologies, and safeguarding the State security and social and public interests.

Article 2

The export of dual-use biological agents and related equipment and technologies referred to in these Regulations means the export
for trade of dual-use biological agents and related equipment and technologies listed in the “Dual-Use Biological Agents and Related
Equipment and Technologies Export Control List”(hereinafter referred to as the Control List) attached to these Regulations, and the
exchange with, interchange with, gift to, exhibition in, assistance to, provision of service for as such and other forms of technological
transfer thereof to foreign countries and regions.

Article 3

The export of dual-use biological agents and related equipment and technologies shall be in accordance with relevant laws, administrative
regulations of the State and these Regulations, and shall not imperil the State security and social and public interests.

Article 4

The State shall exercise strict control on the export of dual-use biological agents and related equipment and technologies so as to
prevent dual-use biological agents and related equipment and technologies from being used for the purpose of biological weapons.

Article 5

The State shall practice a licensing system for the export of dual-use biological agents and related equipment and technologies in
the Control List. Without being licensed, no unit or individual shall export such dual-use biological agents and related equipment
and technologies.

Article 6

Exporters of dual-use biological agents and related equipment and technologies shall register themselves with the competent department
in charge of foreign economic relations and trade of the State Council (hereinafter referred to as the competent foreign economic
and trade department of the State Council). Without such registration, no unit or individual shall export dual-use biological agents
and related equipment and technologies. The specific measures for such registration shall be formulated by the competent foreign
economic and trade department of the State Council.

Article 7

The receiving party of dual-use biological agents and related equipment and technologies shall guarantee:

(1)

Not to use the imported dual-use biological agents and related equipment and technologies for the purpose of biological weapons;

(2)

Not to use dual-use biological agents and related equipment and technologies supplied by China for the purposes other than the declared
end-use without the consent of the Chinese Government; and

(3)

Not to transfer dual-use biological agents and related equipment and technologies to any third party other than the declared end-user
without the consent of the Chinese Government.

Article 8

Anyone who intends to export dual-use biological agents and related equipment and technologies listed in the Control List shall apply
to the competent foreign economic and trade department of the State Council, fill in the export application form for dual-use biological
agents and related equipment and technologies (hereinafter referred to as the export application form), and submit the following
documents:

(1)

Identifications of the applicant’s legal representative, chief manager(s) and the person(s) handling the deal;

(2)

Duplicates of the contract or agreement, or other certification documents;

(3)

Technical specifications of the dual-use biological agents and related equipment and technologies;

(4)

Certificate of end-user and end-use;

(5)

Documents of guarantee as defined in Article 7 of these Regulations; and

(6)

Other documents as may be required by the competent foreign economic and trade department of the State Council.

Article 9

An applicant shall truthfully fill in the export application form.

Export application forms shall be uniformly produced by the competent foreign economic and trade department of the State Council.

Article 10

The competent foreign economic and trade department of the State Council shall, from the date of receiving the export application
form and the documents set forth in Article 8 of these Regulations, examine the application, or examine the application jointly
with other relevant departments.

The competent foreign economic and trade department of the State Council shall, within 15 working days, make a decision of approval
or denial of the application for the export of dual-use biological agents and related equipment and technologies listed in Part I
of the Control List; the competent foreign economic and trade department of the State Council shall, within 45 working days, make
a decision of approval or denial of the application for the export of dual-use biological agents and related equipment and technologies
listed in Part II of the Control List.

Article 11

Where the export of dual-use biological agents and related equipment and technologies entails significant impact on the State security
and social and public interests, the competent foreign economic and trade department of the State Council shall, jointly with relevant
departments, submit the case to the State Council for approval.

Where the export of dual-use biological agents and related equipment and technologies is submitted to the State Council for approval,
the timing restrictions set forth in Article 10 of these Regulations shall not be applied.

Article 12

Where an application for the export of dual-use biological agents and related equipment and technologies is examined and approved,
the competent foreign economic and trade department of the State Council shall issue a license for the export of dual-use biological
agents and related equipment and technologies (hereinafter referred to as an export license), and notify the Customs in writing.

Article 13

An export license holder who intends to change the dual-use biological agents and related equipment and technologies originally applied
for export shall return the original export license and file a new application to obtain an export license according to relevant
provisions of these Regulations.

Article 14

While exporting dual-use biological agents and related equipment and technologies, the exporter shall present the export license to
the Customs, complete the customs procedures and accept supervision and control of the Customs in accordance with the provisions
of the Customs Law.

Article 15

Where the receiving party contravenes the guarantees made according to the provisions of Article 7 of these Regulations, or there
is a risk of proliferation of dual-use biological agents and related equipment and technologies listed in the Control List that can
be used for the purpose of biological weapons, the competent foreign economic and trade department of the State Council shall suspend
or revoke the export license granted and notify the Customs in writing.

Article 16

Where any unit or individual knows or should know that the dual-use biological agents and related equipment and technologies to be
exported will be used by the receiving party directly for the purpose of biological weapons, it shall not export such dual-use biological
agents and related equipment and technologies, whether included in the Control List or not.

Article 17

Upon approval by the State Council, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments of the State Council, temporarily decide to exercise export control on specific dual-use biological agents and related
equipment and technologies other than those listed in the Control List in accordance with the provisions of these Regulations.

Article 18

Those who export dual-use biological agents and related equipment and technologies without being licensed or export dual-use biological
agents and related equipment and technologies beyond the scope of the export license without authorization, shall be investigated
for criminal liability in accordance with the provisions of the criminal law on the crime of smuggling, the crime of illegal business
operations, the crime of divulging State secrets or other crimes; if such acts are not serious enough for criminal punishment, by
distinguishing different circumstances, they shall be punished in accordance with relevant provisions of the Customs Law, or be given
a warning, confiscated of their illegal income, and fined not less than 50,000 Yuan but not more than 250,000 Yuan by the competent
foreign economic and trade department of the State Council; the competent foreign economic and trade department of the State Council
may concurrently suspend or even revoke the licensing for their foreign trade operations.

Article 19

Those who forge, alter, buy or sell the license for the export of dual-use biological agents and related equipment and technologies
shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of illegal business
operations or the crime of forging, altering, buying or selling official documents, certificates or seals of a State organ; if such
acts are not serious enough for criminal punishment, they shall be punished in accordance with relevant provisions of the Customs
Law, and the competent foreign economic and trade department of the State Council may concurrently revoke the licensing for their
foreign trade operations.

Article 20

Where a license for the export of dual-use biological agents and related equipment and technologies is obtained by fraud or other
illegal means, the competent foreign economic and trade department of the State Council shall revoke such an export license, confiscate
the illegal income, impose a fine of not less than 20,000 Yuan but not more than 100,000 Yuan, and suspend or even revoke the licensing
for their foreign trade operations.

Article 21

Where, in violation of the provisions of Article 6 of these Regulations, the export of dual-use biological agents and related equipment
and technologies is operated without registration, the competent foreign economic and trade department of the State Council shall
ban such illegal activities according to law, and relevant competent departments of the State shall impose punishment thereon in
accordance with relevant laws and administrative regulations.

Article 22

Where the State functionaries in charge of control on the export of dual-use biological agents and related equipment and technologies
abuse their powers, neglect their duties or extort or accept money or properties from others by taking advantage of their positions,
they shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of
power, the crime of neglect of duties, the crime of accepting bribes and other crimes; if such acts are not serious enough for criminal
punishment, they shall be given administrative sanctions according to law.

Article 23

In light of actual situations, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments, amend the Control List and submit it to the State Council for approval before implementation.

Article 24

In the case of the re-export of dual-use biological agents and related equipment and technologies after import, these Regulations
shall apply.

Article 25

These Regulations shall be effective as of December 1, 2002.

Attachment:Dual-Use Biological Agents and Related Equipment and Technologies Export Control List

1.

Introduction

(1)

This List comprises two parts.

(2)

Items controlled in the List are included mainly according to their dual-use specialty in biological area, especially their risk grade
for non-peaceful purpose. Thus, biological agents, found or never found, or eradiated in China area all listed in the List.

(3)

The pathogens controlled in the List include any isolated living creature of a pathogen agent, and any kind of biological materials
(e. g. cell, tissue, serum and animal), or non-biological materials contaminated with these pathogens. Whatever these pathogens are,
natural or genetically modified, is under export control, except those in the form of a vaccine.

(4)

Toxins controlled in the List do not include immunotoxins, and human medical products approved by the competent department of the
State.

(5)

Genetic elements controlled in the List include chromosomes, genomes, plasmids, transposons, and vectors whether genetically modified
or unmodified.

(6)

Related technologies controlled in the List include technical data and technical assistance and so on, except knowledge in the public
domain, or basic scientific research whether controlled in the List, or knowledge required for general patent. The forms of technical
data include blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals and instructions
written or recorded on other media or devices such as disks, tapes, read-only memories. The forms of technical assistance include
offering instruction, skills, training, working knowledge, consulting services, as well as transfer of technical data.

(7)

Once the dual-use biological equipment controlled in the List is approved to export, the export of basic technologies related to the
equipment, such as installation, operation, maintenance, repair or overhaul to the same end-user is also authorized.

2.

Definitions

For the purposes of this List, the following definitions apply:

(1)

“Biological dual-use specialty” means the character of being used either for peaceful purposes, such as medicine, prevention, protection,
or for non-peaceful purposes, such as development and production of biological weapons. The pathogens, toxins and genetic elements
with such character are called dual-use biological agents; and the equipment with such character is called dual-use biological equipment.

(2)

“Pathogen” means the natural or genetically modified pathogenic microorganism which can cause death, disease or other harms to human
beings, animals or plants.

(3)

“Toxin” means the biological active material, originated from any microorganism, animal or plant, whatever their method of production,
whether natural or modified, which can cause death, disease or other harms to human beings, animals, and plants.

(4)

“Vaccine” means the medicinal product that has entered into clinical trial, production or marketing as approved by the competent department
of the State, which is intended to stimulate a protective immunological response in humans or animals in order to prevent disease
in those to whom or which it is administered.

(5)

“Technology” means specific information necessary for the development, production or use of a product.

(6)

“Biosafety Level 3 (BL3)” means the containment level and biosafety treatment capabilities that can meet the criteria of BL3 containment
as specified in the WHO Laboratory Biosafety Manual (2nd edition, Geneva, 1993) with respect to biological medicine and microbiology
facilities in the maintenance of negative air pressure to the environment, access control and the rendering safe of exhaust air and
of contaminated material and waste, including effluents by HEPA filtration, microorganism operating regulation and personnel precaution.

(7)

“Biosafety Level 4 (BL4)” means the containment level and biosafety treatment capabilities that can meet the criteria of BL4 containment
as specified in the WHO Laboratory Biosafety Manual(2nd edition, Geneva, 1993) with respect to biological medicine and microbiology
facilities in the maintenance of negative air pressure to the environment, access control and the rendering safe of exhaust air and
of contaminated material and waste, including effluents by HEPA filtration, microorganism operating regulation, personnel precaution
and so on. The feature is that, on the basis of BL3, the airlock or pass-through autoclave system, biosafety cabinet class III or
positive-pressure ventilated suits and a special controlled air system are used to reach a higher biosafety containment and capacity
than BL3.

(8)

“Basic scientific research” means experimental or theoretical work undertaken principally to acquire new knowledge of the fundamental
principles of phenomena or observable facts, not primarily directed towards a specific practical aim or objective.

(9)

“Knowledge in the public domain” means technology that has been made available without restrictions upon its further dissemination
(copyright restrictions do not remove technology from being in the public domain).

(10)

“Development” is related to all stages before production, such as:

(a)

Design;

(b)

Design research;

(c)

Design analysis;

(d)

Design concepts;

(e)

Assembly of prototypes;

(f)

Pilot production schemes;

(g)

Design data;

(h)

Process or transforming design data into a product;

(i)

Configuration design;

(j)

Integration design and layouts.

(11)

“Production” means all production phases, such as:

(a)

Construction;

(b)

Production engineering;

(c)

Manufacture;

(d)

Integration;

(e)

Assembly (mounting);

(f)

Inspection;

(g)

Testing;

(h)

Quality assurance.

(12)

“Use” means operation, installation (including onsite installation), maintenance (checking), repair, overhaul, etc.

Part I

1.

Human or Zoonotic Pathogens

(1)

Bacteria

(a)

Clostridium perfringens;

(b)

Clostridium tetani;

(c)

Enterohaemorrhagic Escherichia coli, serotype O157 and other verotoxin producing serotypes;

(d)

Legionella pneumophila;

(e)

Yersinia pseudotuberculosis.

(2)

Viruses

(a)

Kyasanur Forest virus;

(b)

Louping ill virus;

(c)

Murray Valley encephalitis virus;

(d)

Omsk haemorrhagic fever virus;

(e)

Oropouche virus;

(f)

Powassan virus;

(g)

Rocio virus;

(h)

St Louis encephalitis virus.

2.

Plant Pathogens

(1)

Bacteria

(a)

Xanthomonas campestris pv. oryzae;

(b)

Xylella fastidiosa.

(2)

Viruses

Banana bunchy top virus

(3)

Fungi

(a)

Deuterophoma tracheiphila (syn. Phoma tracheiphila);

(b)

Monilia rorei (syn. Moniliophthora rorei).

3.

Genetic Elements and Genetically Modified Organisms

(1)

Genetic elements that contain nucleic acid sequences associated with the pathogenicity of any of the microorganisms in Part I of the
List.

(2)

Genetically-modified organisms that contain nucleic acid sequences associated with the pathogenicity of any of the microorganisms
in Part I of the List.

4.

Dual-Use Biological Equipment

(1)

Equipment for the micro-encapsulation of live microorganisms and toxins in the range of 1-10 micron particle size, specifically:

(a)

interfacial polycondensors;

(b)

phase separators.

(2)

Fermenters of less than 100 litres capacity with special emphasis on aggregate orders or designs for use in combined systems.

(3)

Conventional or turbulent air-flow clean-air rooms and self-contained fan-HEPA filter units that may be used for BL3 or BL4 containment
facilities.

5.

Related Technology

The technology for development or production of biological agents or dual-use biological equipment in Part I of the List.

Part II

1.

Human or Zoonotic Pathogens

(1)

Bacteria

(a)

Bacillus anthracis;

(b)

Brucella abortus;

(c)

Brucella melitensis;

(d)

Brucella suis;

(e)

Chlamydia psittaci;

(f)

Clostridium botulinum;

(g)

Francisella tularensis;

(h)

Burkholderia mallei (Pseudomonas mallei);

(i)

Burkholderia pseudomallei (Pseudomonas pseudomallei);

(j)

Salmonella typhi;

(k)

Shigella dysenteriae;

(l)

Vibrio cholerae;

(m)

Yersinia pestis.

(2)

Viruses

(a)

Chikungunya virus;

(b)

Congo-Crimean haemorrhagic fever virus;

(c)

Dengue fever virus;

(d)

Eastern equine encephalitis virus;

(e)

Ebola virus;

(f)

Hantaan virus;

(g)

Junin virus;

(h)

Lassa fever virus;

(i)

Lymphocytic choriomeningitis virus;

(j)

Machupo virus;

(k)

Marburg virus;

(l)

Monkey poxvirus;

(m)

Rift Valley fever virus;

(n)

Tick-borne encephalitis virus (Russian Spring-Summer encephalitis virus);

(o)

Variola virus;

(p)

Venezuelan equine encephalitis virus;

(q)

Western equine encephalitis virus;

(r)

White pox;

(s)

Yellow fever virus;

(t)

Japanese encephalitis virus.

(3)

Rickettsiae

(a)

Coxiella burnetii;

(b)

Bartonella quintana (Rochalimea quintana, Rickettsia quintana);

(c)

Rickettsia prowazeki;

(d)

Rickettsia rickettsii.

2.

Toxins as Follows and Subunits

(1)

Botulinum toxins

(2)

Clostridium perfringens toxins

(3)

Conotoxin

(4)

Shiga toxin

(5)

Staphylococcus aureus toxins

(6)

Tetrodotoxin

(7)

Verotoxin

(8)

Microcystin (syn. Cyanginosin)

(9)

Aflatoxins

(10)

Abrin

(11)

Cholera toxin

(12)

Diacetoxyscirpenol toxin

(13)

T-2 toxin

(14)

HT-2 toxin

(15)

Modeccin toxin

(16)

Volkensin toxin

(17)

Viscum Album Lectin 1 (syn. Viscumin)

3.

Animal Pathogens

(1)

Bacteria

Mycoplasma mycoides

(2)

Viruses

(a)

African swine fever virus;

(b)

Avian influenza virus;

(c)

Bluetongue virus;

(d)

Foot and mouth disease virus;

(e)

Goat poxvirus;

(f)

Herpes virus (Aujeszky’s disease);

(g)

Hog cholera virus (syn. swine fever virus);

(h)

Lyssa virus;

(i)

Newcastle disease virus;

(j)

Peste des petits ruminants￿￿ virus;

(k)

Porcine enterovirus type 9 (syn. swine vesicular disease virus);

(l)

Rinderpest virus;

(m)

Sheep poxvirus;

(n)

Teschen disease virus;

(o)

Vesicular stomatitis virus.

4.

Plant Pathogens

(1)

Bacteria

(a)

Xanthomonas albilineans;

(b)

Xanthomonas campestris pv. citri.

(2)

Fungi

(a)

Colletotrichum coffeanum var. Virulans (Colletotrichum kahawae);

(b)

Cochliobolus miyabeanus (Helminthosporium oryzae);

(c)

Microcyclus ulei (syn. Dothidella ulei);

(d)

Puccinia graminis (syn. Puccinia graminis f. sp. tritici);

(e)

Puccinia striiformis (syn. Puccinia glumarum);

(f)

Pyricularia grisea/Pyricularia oryzae.

5.

Genetic Elements and Genetically modified Organisms

(1)

Genetic elements that contain nucleic acid sequences associated with the pathogenicity of any of the microorganisms in Part II of
the List.

(2)

Genetic elements that contain nucleic acid sequences coding for any of the toxins in Part II of the List, or for their sub-units.

(3)

Genetically-modified organisms that contain nucleic acid sequences associated with the pathogenicity of any of the microorganisms
in Part II of the List.

(4)

Genetically-modified organisms that contain nucleic acid sequences coding for any of the toxins in the list or for their sub-units.

6.

Dual-Use Biological Equipment

(1)

Complete containment facilities at BL3 or BL4 containment level

Complete containment facilities that meet the criteria for BL3 or BL4 containment as specified in the WHO Laboratory Biosafety Manual
(2nd edition, Geneva, 1993) should be subject to export control.

(2)

Fermenters

Fermenters capable of cultivation of pathogenic microor-ganisms, viruses or for toxin production, without the propagation of aerosols,
having a capacity of 20 litres or greater. Fermenters include bioreactors, chemostats and continuous-flow systems.

(3)

Centrifugal Separators (including decanters)

Centrifugal separators capable of continuous separation of pathogenic microorganisms, without the propagation of aerosols, and having
all the following characteristics:

(a)

One or more sealing joints within the steam containment area;

(b)

A flow rate greater than 100 litres per hour;

(c)

Components of polished stainless steel or titanium;

(d)

Capable of in-situ steam sterilisation in a closed state.

(4)

Cross (tangential) Flow Filtration Equipment

Cross (tangential) flow filtration equipment capable of continuous separation of pathogenic microorganisms, viruses, toxins and cell
cultures, having all the following characteristics:

(a)

Equal to or greater than 5 square metres;

(b)

Capable of in-situ sterilization.

(5)

Freeze-drying Equipment

Steam sterilisable freeze-drying equipment with a condenser capacity of 10 kgs of ice or greater in 24 hours less than 1,000 kgs of
ice in 24 hours.

(6)

Protective and Containment Equipment

(a)

Protective full or half suits or hoods dependent upon a tethered external air supply and operating under positive pressure;

Note: This does not control suits designed to be worn with self-contained breathing apparatus.

(b)

Class 3 biological safety cabinets or isolators with similar performance standards (e. g. flexible isolators, dry boxes, anaerobic
chambers, glove boxes, or laminar flow hoods (closed with vertical flow)).

(7)

Aerosol Inhalation Chambers

Chambers designed for aerosol challenge testing with pathogenic microorganisms, viruses or toxins and having a capacity of 1 cubic
metre or greater.

7.

Related Technology

The technology for development or production of biological agents or dual-use biological equipment in Part II of the List.



 
The State Council
2002-10-14

 







PROVISIONS ON SAFEGUARDS INVESTIGATION AND AWARD OF INDUSTRY INJURY

20031117

The State Economic and Trade Commission

Order of the State Economic and Trade Commission of the People’s Republic of China

No.47

The Provisions on Safeguards Investigation and Award of Industry Injury, which have been adopted at the director’s executive meeting
of the State Economic and Trade Commission, are hereby promulgated and shall come into force on January 15, 2003.

Director of the State Economic and Trade Commission Li Rongrong

December 13, 2002

Provisions on Safeguards Investigation and Award of Industry Injury

Chapter I General Provisions

Article 1

In order to regulate and guarantee the safeguards investigation and award of industry injury, these Provisions have been enacted in
accordance with the Safeguards Regulations of the People’s Republic of China (hereinafter referred to as Safeguards Regulations).

Article 2

The applications for safeguards investigation filed pursuant to the Safeguards Regulations, as well as the activities relating to
safeguards investigation and award of industry injury, shall be governed by these Provisions.

Article 3

The State Economic and Trade Commission (hereinafter referred to as SETC) shall be in charge of the investigation and award of safeguards
industry injury. Safeguards investigation of industry injury involving agriculture products shall be carried out by SETC in conjunction
with the Ministry of Agriculture.

Article 4

The Bureau of Industry Injury Investigation under SETC is responsible for the concrete implementation of these Provisions.

Chapter II Determination of Injury and Causation

Article 5

Injury refers to the serious injury or threat caused by the increase of import products to the domestic industries that produce the
same kind of products or the direct competitive products.

Serious injury refers to the all-around and major derogation suffered by the domestic industries.

Serious threat refers to the obvious impendent serious injury, which will occur if no measures are taken.

Article 6

The following factors shall be taken into consideration in the determination of serious injury or threat caused to the domestic industries
by increase of import products:

1)

Increase of import products, including the absolute and relative increase rate and the amount of import products;

2)

Share of domestic market occupied by the increased import products;

3)

Impact of the import products on the domestic industries, in terms of output, sale level, market share, productivity, equipment utilization
rate, profit and loss, and employment etc;

4)

Other facts that cause injury to the domestic industries.

Determination of serious threat shall be based on the examination of, according to the facts, the production capacity, reserve, export
capacity and possibility of continual increase of export to China etc of the export country, and shall not be based on charges, supposition
or minimal possibility.

Article 7

When determining the impact of import increase on domestic industries, SETC shall objectively and comprehensively evaluate the various
quantitative indexes that affect the domestic industries according to the conclusive evidence, and shall not make the award only
on the basis of very few indexes.

Article 8

When determining the causation between the increase of import products and the injury, SETC shall not only take into consideration
the impact of the increase of import products on domestic industries, but also other factors causing the injury. Such other factors
shall include:

1)

Other factors affecting the price of the same kind of products in the domestic market;

2)

Change of need for the products;

3)

Change of consumption pattern;

4)

Restriction on trade implemented by the domestic and foreign manufacturers and the change of the competitive conditions between the
domestic and foreign manufacturers;

5)

Progress of technology;

6)

Export of the same kind of domestic products;

7)

Other factors.

If any factors other than the import increase cause injury to the domestic industries, such injury shall not be attributed to the
import increase.

Article 9

The same kind of products refer to the products identical with the import products under investigation; where there are no identical
products, the products that have the most similar characteristics as those of the import products under investigation shall be the
same kind of products.

Direct competitive products refer to the products that, though not of the same kind of products as the import product under investigation,
have the similar usage as that of the import products under investigation and may easily replace the import products, and they also
have direct competitive relationship.

Article 10

When determining the same kind of products and direct competitive products, the following factors may be taken into consideration:
physical characteristics, chemical nature, production equipment and technics, usage, replaceable nature, comment of the consumers
and manufacturer, sale channels and price of the products etc.

Article 11

SETC may exclude the products under investigation or part of those products that haven’t caused the industrial injury to the domestic
industries in the award of industry injury. No safeguards will be applied to the excluded products.

Article 12

In the investigation and award of industry injury, SETC shall take the public interest into consideration, and may make the investigation
on the possible impact of safeguards on the public interest.

SETC shall provide chances for the users and consumers of the import products to state their opinions and to submit evidence

Article 13

As a general principle, the period of industry injury investigation of a safeguards case is 3 years before the case is put on file.

Chapter III Industry Injury Investigation

Article 14

The applicant shall, within 3 days from the proclamation of the filing of the case of safeguards investigation, submit the application
form for safeguards investigation and the relevant evidence to SETC.

Evidence and materials submitted by the applicant shall include the following matters:

1)

Increase of import (including the absolute and relative increase) in the last 3 to 5 years and the relevant evidence;

2)

Share of the import products increased in the last 3 to 5 years in the domestic market;5) Impact of the import products increased
in the last 3 to 5 years on the domestic industries, and the relevant evidence, in terms of output, sale level, market share, productivity,
equipment utilization rate, profit and loss, and employment etc;

3)

Causation between the increase of import products and the injury to the domestic industries, and the relevant evidence;

4)

Other factors affecting the domestic industries and the relevant evidence.

Article 15

The applicant shall also submit to SETC an industry adjustment plan together with the application, the plan shall include the following
matters:

1)

Description of the present status of the domestic industries;

2)

Description of the injury suffered by the domestic industries due to the import increase;

3)

Specific suggestions on safeguards;

4)

Target of the adjustment of domestic industries;

5)

Forms and methods for adjustment of domestic industries;

6)

Schedule for the adjustment of domestic industries;

7)

Other matters that the applicant deems as necessary to be explained.

Article 16

Where any interested party applies for participating in the safeguards investigation activities, it shall file the application with
SETC and make the relevant registration within 20 days from the day of proclamation of case-filing of the safeguards investigation.
And the party may at the same time give opinions on the industry injury and causation in the safeguards investigation, and provide
the corresponding evidence.

Article 17

Interested parties shall include:

1)

Foreign (region) manufactures, exporters and domestic importers of the product under investigation, or the industrial or other organization
of the manufacturers, exporters, and importers of that product;

2)

Governments and the government representatives of the country (region) of origin and the export country (region) of the product under
investigation;

3)

Manufactures and sellers of the same kind of domestic product, or the industrial or other organizations of the manufactures and sellers
of that product.

4)

Others.

Article 18

Where any interested parties participate in the investigation activities, they shall present the relevant identification certificates.
Where the interested party is an enterprise or other organization, it shall present the registration certificate, the business license,
and the identification certificate of the legal representative.

Where any agent participates in the investigation activities upon entrustment, the agent’s identification certificate and trust deed
shall be presented; where a party entrusts any lawyer to act as an agent, it shall entrust one who is a licensed lawyer from a Chinese
law firm, and shall present the trust deed, the business license of the law firm and the practice certificate of the lawyer.

Article 19

Objects of the safeguards investigation of industry injury by SETC include domestic manufacturers, domestic importers, domestic purchasers,
domestic final users, foreign exporters and foreign manufacturers etc.

Article 20

SETC may retain experts in the fields of industry, finance and accounting, trade and law etc to provide consultation if it deems necessary.
The relevant experts are obliged to keep the secret concerned.

Article 21

SETC employs such investigation methods as questionnaire, sample, hearing, technical appraisal and on-spot inspection in the industry
injury investigation.

Article 22

Questionnaires issued by SETC to the interested parties include: questionnaires for domestic manufacturers, questionnaires for domestic
importers, questionnaires for domestic users, questionnaires for foreign manufacturers, foreign exporters or other kinds of questionnaires.

Article 23

The interested parties shall return the answer sheets pursuant to the method and time provided for by the questionnaires. Where any
party needs an extension, it shall, within 7 days prior to the deadline for the answer, file a written application with SETC and
explain the reasons. Whether to grant the extension shall be decided by SETC.

Article 24

SETC may make an on-spot inspection over the interested parties. Before the on-spot inspection, the main purpose and contents of the
inspection shall be notified to the relevant interested parties in advance.

Article 25

At the request of an interested party or according to the need of investigation, SETC may, with the consent of the relevant country
(region), send personnel to that country (region) to investigate, with respect to the relevant product, the production capacity,
investment and expansion, storage, origin or transit, as well as the association relationship among the enterprises.

Article 26

SETC may organize relevant agencies and personnel to demonstrate the adjustment plan of domestic industries, including the aim, measures
and feasibility etc provided for by the adjustment plan.

Article 27

SETC may ask the interested parties to submit or supplement written materials pursuant to the provisions, or the interested parties
may voluntarily submit the written materials to SETC.

Article 28

Industry injury hearings may be held at the request of the interested parties or where SETC deems necessary. Industry injury investigation
hearings shall be held in accordance with the Rules for Industry Investigation Hearings.

Article 29

Where any interested party deems necessary to keep confidential the materials and the relevant evidence provided, it shall, when submitting
those materials to SETC, submit a non-confidential outline thereof together, or submit the confidential version and open version
of those materials separately.

The non-confidential outline and open version shall reasonably present the substantial contents of the confidential information. If
this requirement is not met, SETC may request the party to supplement the relevant contents and evidence materials.

Article 30

Where an interested party fails to provide the non-confidential outline or open version of the materials and relevant evidence, or
the reasons for failure to do so are insufficient, SETC may give no consideration to those materials. If SETC deems unnecessary to
keep confidential the materials provided, it may request the interested party to cancel the application for keeping confidential.

Article 31

In the course of industry injury investigation and award, an interested party shall tell the truth and provide the relevant materials.
If the interested party fails to do so or fails to provide the necessary information within a reasonable time, or seriously interferes
with the investigation by other means, SETC may make the award on the basis of the facts already obtained and the superior information
available.

Article 32

After a safeguards investigation is put on file and before the final award is proclaimed, any interested party may consult the open
information relating to the investigation of this case with SETC. Within a reasonable time after the final award is proclaimed, the
relevant interested party may also consult the relevant open information.

Article 33

To consult the open information, an interested party shall present the relevant certifications and go through the formalities for
consulting pursuant to the provisions.

Article 34

An interested party may extract and duplicate the open information, but may not take the original of the open information outside
of SETC.

Chapter IV Industry Injury Award

Article 35

SETC may give policy suggestions for the adjustment of domestic industries according to the industry adjustment plans filed by the
domestic industries and the relevant information obtained through the investigation.

SETC shall evaluate the effect of the safeguards to be taken on promoting the adjustment of domestic industries and the time it will
take.

Article 36

SETC shall, according to the initial investigation results, make a preliminary award on the injury and whether there is causation
between the injury and the increased import products.

Article 37

Where the preliminary award determines that the increased import products has caused injury to the domestic industries and there is
causation between the increased amount and the injury, SETC shall continue to make an investigation on the injury and the degree
thereof. SETC shall, according to the investigation results, make the final award on injury and whether there is causation between
the injury and the increased import products.

Article 38

Where a safeguard measure has been implemented for more than 1 year, SETC may suggest to gradually ease that measure according to
the need and development of domestic industries.

Article 39

Where a safeguard measure has been implemented for more than 3 years, SETC shall make a midterm review of the impact of that safeguard
on domestic industries and the adjustment of domestic industries. For a midterm review case, SETC shall make a review award.

Article 40

As to the procedures for midterm review, the relevant provisions on safeguards investigation shall be referred to.

Article 41

Within 60 days prior to the expiration of a safeguard measure as stipulated in the final award, SETC may give opinions on whether
to cancel or extend that measure according to the situation of domestic industries.

Chapter V Supplementary Provisions

Article 42

When submitting any documents and evidence materials to SETC, an interested party shall submit the Chinese version in quintuplicate,
and shall submit the corresponding electronic version in triplicate (computer disks or CD-ROM).

Article 43

In the industry injury investigation and award of SETC, the normative Chinese provided for by the language authority of the state
shall be used as the formal language and characters. Any documents, materials and information provided by the interested parties
shall be normative Chinese. Non-Chinese materials shall be accompanied by Chinese translations and the original text, and the Chinese
translation shall be superior to the others. Non-Chinese materials without Chinese translation accompanies shall not be regarded
as valid and legal evidence materials.

Article 44

The power to interpret these Provisions shall remain with SETC.

Article 45

These Provisions shall enter into force on January 15, 2003.



 
The State Economic and Trade Commission
2002-12-13

 







MEASURES FOR EVALUATION OF THE CHARGES FOR USING IMPORTS COMMODITY CONCESSION OF THE CUSTOM OF THE PEOPLE’S REPUBLIC OF CHINA

e02391,e02387,e02907,e014372003053020030701The General Administration of CustomsDecree of the General Administration of Customs of the People’s Republic of ChinaNo.102Measure for Evaluation of the Charges for Using Imports Commodity Concession of the Custom of the People’s Republic of China was approved
by Administration Affairs Committee on May 29, 2003, and promulgated hereby and shall enter into force as of July 1, 2003.The Interim
Measure of the Custom of the People’s Republic of China of Exemption of Imports Commodities Software (ShuShui [1993] No.15) promulgated
on January 8, 1993 shall be repealed simultaneously.
Minister of the General Administration of Customs Mou XinshengMay 30, 2003epdf/e03146.pdfP2, Oimport commodity, concession, charge for using, evaluation, importe03146Measures for Evaluation of the Charges for Using Imports Commodity Concession of the Custom of the People’s Republic of ChinaArticle 1 These Measures are formulated in accordance with the Custom Law of the People’s Republic of China and Regulations of the People’s
Republic of China on Import and Export Duties for the purpose of standardizing custom evaluation of the charges for using imports
commodity concession.
Article 2 Charges for using imports commodity concession as mentioned in these measure shall cover charges for using patent right, trademark,
expertise, copyright and so on, namely:
(I)Charges for using patent right￿￿(II)Charges for using trademark￿￿(III)Charges for using copyright￿￿(IV)Charges for using expertise￿￿(V)Charges for distribution and resale￿￿(VI)Charges of the same kindArticle 3 Charges for using imports commodity concession shall be included in the duty-paying price when meet the following conditions:(I)Related to the imports commodities￿￿(II)Seller views the payment as one precondition for certain goods to be sold within the territory of the People’s Republic of China.Article 4 Charges for using concession shall be viewed as related to the import commodities under any circumstances in accordance with Article
5 to 8.
Article 5 Charges for using concessions are payment for using patent right or expertise, and the import commodities shall be in accordance with
any of the following situations:
(I)goods contain patent and expertise;(II)goods which need patent and expertise to produce;(III)Machines or facilities specially designed for implementing the patent and expertise.Patent, expertise imported in the forms of tape, disk, compact disc or medium of the same kind, transmitted or downloaded from internet,
satellite will be viewed as related to the import commodities.
Article 6 Charges for using concessions are payment for using trademark, and the import commodities shall be in accordance with any of the following
situation:
(I)import commodities with trademark;(II)import commodities which can be resold after attached with trademark;(III)acquiring trademark when imported, can be resold after slightly processing and after attached with trademark.Article 7 Charges for using concessions are payment for using copyright, and the import commodities shall be in accordance with any of the following
situations
(I)import commodities with software, character, music, picture, image or things of the same kind in the forms as tapes, discs, compact
disc and medium of the same kind;
(II)import commodities with other forms of copyright.Article 8 Charges for using concessions are payment for the seller to acquire the right of resale, distribution and right of the same kind within
the territory of the People’s Republic of China, and the import commodities shall be in accordance with any of the following situations:
(I)commodities which can be resold directly after entering;(II)commodities which can be resole after slightly processing.Article 9 The payment of the charges for using concessions constitutes the preconditions for the sellers to sell certain commodities within
the territory of People’s Republic of China. To be in accordance with the second item of Article 3 , the transaction of the commodities
proceeds after the payment of the charges.
Article 10 Charges for using concessions included in the duty-paying price shall be levied according to the duty rate of the import commodities.Article 11 Consignee shall make a truthful declaration with regard to means of paying the charges for using the concession when declaring the
import commodities to the customs. The consignee shall also provide objective and quantifiable data.Charges for using the concession shall be added to the duty-paying price when comply with Article 3 . The customs shall examine and
approve the charges based on quantifiable and objective data. The duty-paying price shall be fixed by the customs; Where the consignee
can not provide relevant data or can not provide objective and quantifiable data, the duty-paying value of an import item shall be
fixed by the Customs according to the Provisions of the Customs of the People’s Republic of China For Assessment of Duty-paying Price
on Import and Export Goods.Charges for using the concession shall not be added to the duty-paying price when consignee proves it does not comply with article
3 , and after the confirmation of the customs. Any charges which have been added to the duty-paying price shall be deducted. The
charges which has not been separately stated and the Customs cannot judge from the data provided by the consignee shall not be deducted
therefore.
Article 12 Where only part of the charges for using the concession are in accordance with Article 3 , or where the charges for using the concession
in accordance with Article 3 only cover part of the commodities, the Customs shall assess the duty-paying price based on subjective,
quantifiable standard and common-accepted accounting principals by adding relevant charges to the duty-paying price.
Article 13 The charges which has been separately stated in any of the following circumstances will not be added into the duty-paying price after
the examination of the Customs.:
(I)charges for replicating the import commodity;(II)charges for skills training and oversea field trip;The charges shall be deducted from the duty-paying price where the charges have been included in the price; Where the above-mentioned
charges has not been separately stated and the Customs cannot judge from the data provided by the consignee, the charges shall not
be deducted therefore
Article 14 Any duty evasion by rendering false contracts, invoices and other documents, by making fraudulent declaration of the charges of using
the concessions, shall be investigated and punished in accordance with the Customs Law of the People’s Republic of China and the
Rules of Administrative Penalties for the Implementation of the Customs Law of the People’s Republic of China.
Article 15 Definitions of the following terms under the Regulations for Evaluation of the Charges for Using Imports Commodity Concession of the
Custom of the People’s Republic of China:“Payment” herein refers payment of charges for using concession by any means, it has two meanings, one is charges having paid, another
is charges to be paid.“Software” herein refers the programs and documents for data processing under the Regulations for the Protection of Computer Software.“Expertise” herein refers the knowledge, experience, technique and know-how for process design, prescription, product design, quality
control, examine, marketing management in the forms of blueprint, model, technical data and so on.“Charges for skills training” herein refers the teaching, accommodation, transportation and medical insurance fees for the technical
personnel sent out by the seller or the third party related to the seller for giving technical instructions with regard to the import
commodities.“Slightly processing” herein refers such activities as dilute, mix, sort, simply assembly, repackage or any other activities of the
same kink.
Article 16 The General Administration of Customs of the People’s Republic of China shall be responsible for the interpretation of the provisions.Article 17 These Measures shall enter into force as of July 1, 2003. The Interim Measures of the Custom of the People’s Republic of China of
Exemption of Imports Commodities Software promulgated on January 8, 1993 shall be repealed simultaneously.



 
The General Administration of Customs
2003-05-30

 







CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...