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MEASURES FOR THE ADMINISTRATION OF REGISTRATION OF HAZARDOUS CHEMICALS

The State Economic and Trade Commission

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

No.35

The Measures for the Administration of Registration of Hazardous Chemicals, which were adopted at the director executive meeting of
the State Economic and Trade Commission, are hereby promulgated and shall enter into force on November 15, 2002.

Director of the State Economic and Trade Commission Li Rongrong

October 8, 2002

Measures for the Administration of Registration of Hazardous Chemicals

Chapter I General Rules

Article 1

In order to strengthen the safety administration of hazardous chemicals, to prevent chemical accidents and to provide technology and
information support for emergent rescue, the present Measures are formulated in accordance with the Regulations on the Safety Administration
of Hazardous Chemicals.

Article 2

The present Measures shall apply to the entities that produce or store hazardous chemicals and those that use highly toxic chemicals
or use other hazardous chemicals the quantities of which constitute major hazard sources within the People’s Republic of China (hereinafter
referred to as register entities).

Article 3

Scope of the registration of hazardous chemicals:

1)

Hazardous chemicals included in the standard Name List of Hazardous Chemicals (GB 12268) of the state;

2)

Other hazardous chemicals that are determined and promulgated by the State Administration of Safe Production Supervision in conjunction
with the departments of public security, environment protection, health, quality control and communication under the State Council,
but not included in the Name List of Hazardous Chemicals.

The State Bureau of Safe Production Supervision and Administration shall summarize and promulgate the Catalog of Hazardous Chemicals
according to the hazardous chemicals determined in Items 1) and 2).

The register entities of hazardous chemicals are: the entities that produce and store hazardous chemicals (hereinafter referred to
as production entities and storage entities), and the entities that use highly toxic chemicals and use other hazardous chemicals
the quantities of which constitute major hazard sources (hereinafter referred to as use entities).

The production entities, storage entities and use entities shall refer to the legal persons or non-legal persons that have made registration
with the industry and commerce authorities.

Article 4

The State Bureau of Safe Production Supervision and Administration shall be in charge of the supervision and administration of the
registration of hazardous chemicals of the whole country.

The bodies of safe production supervision and administration of the provinces, autonomous regions and municipalities directly under
the Central Government shall be in charge of the supervision and administration of the registration of hazardous chemicals within
their respective administrative areas.

Chapter II Registration Bodies

Article 5

The state shall establish the National Chemical Registration Center (hereinafter referred to as Registration Center) to undertake
the specific work and technical management of the registration of hazardous chemicals of the whole country.

The provinces, autonomous regions and municipalities directly under the Central Government shall establish chemical registration offices
(hereinafter referred to as registration offices) to undertake the specific work and technical management of the registration of
hazardous chemicals of their respective areas.

Article 6

The State Bureau of Safe Production Supervision and Administration shall supervise and administer the Registration Center; and the
bodies of safe production supervision and administration of the provinces, autonomous regions and municipalities directly under the
Central Government shall supervise and administer the registration offices under their respective jurisdiction.

Article 7

The Registration Center shall perform the following duties:

1)

Organizing, coordinating and directing the registration of hazardous chemicals of the whole country;

2)

Being responsible for the issuance of registration certificates of hazardous chemicals and the management of registration numbers
of the whole country;

3)

Establishing and maintaining the national hazardous chemical registration administration database and the dynamic statistics and analysis
information system;

4)

Setting up the state emergent consultation phone for chemical accidents, and establishing the emergent rescue information networks
jointly with the registration offices of the localities to provide chemical accident emergent consultation services;

5)

Organizing evaluations of the hazardous nature of new chemicals; and classifying the unclassified chemicals by their hazardous nature
in a unified way;

6)

Being responsible for the training of registration personnel of hazardous chemicals of the whole country.

Article 8

The registration offices shall perform the following duties:

1)

Organizing the registration of hazardous chemicals of their respective areas;

2)

Verifying the matters applied for registration by the register entities;

3)

Examining the normalization and consistency of the chemical safety technical specifications and chemical safety labels drawn up by
the production entities;

4)

Establishing hazardous chemicals registration administration databases and dynamic statistics and analysis information systems of
their respective areas;

5)

Providing chemical accident emergent consultation services.

Article 9

Staff members of the Registration Center and registration offices that engage in the registration of hazardous chemicals (hereinafter
referred to as registration staff) must go through the unified training, pass the examinations given by the State Bureau of Safe
Production Supervision and Administration and draw the Post Certificate of Hazardous Chemical Registration Staff (hereinafter referred
to as Registration Post Certificate) before they may assume their posts.

Article 10

The Registration Center shall have more than 10 registration staff with the Registration Post Certificate, and each registration office
shall have more than 3 registration staff with the Registration Post Certificate.

Article 11

The Registration Center and registration offices shall formulate strict work rules and procedures, provide satisfactory services to
the register entities and keep the commercial secrets of the register entities.

Article 12

The Registration Center shall report, in written form, on the registration of hazardous chemicals of the whole country to the State
Bureau of Safe Production Supervision and Administration every year; and each registration office shall report, in written form,
on the registration of hazardous chemicals of its area to the body of safe production supervision and administration of the province,
autonomous region or municipality directly under the Central Government every year. Copies of the reports of the local registration
offices shall be sent to the Registration Center at the same time.

Chapter III Time, Matters and Procedures of the Registration

Article 13

The register entities shall go through the formalities for registration of hazardous chemicals within 6 months from the day of promulgation
of the Catalog of Hazardous Chemicals.

With respect to the hazardous chemicals of which the hazardous natures are unclear, the production entity shall, within 1 year from
the day of implementation of the present Measures, entrust the professional technical agencies recognized by the State Bureau of
Safe Production Supervision and Administration to appraise and evaluate their hazardous natures, and shall go through the registration
formalities on the basis of the appraise and evaluation reports.

With respect to new chemicals, the production entity shall, within 1 year before the new chemicals are put into production, entrust
the professional technical agencies recognized by the State Bureau of Safe Production Supervision and Administration to appraise
and evaluate their hazardous natures, and shall go through the registration formalities on the basis of the appraise and evaluation
reports.

A newly established production entity shall go through the formalities for registration of hazardous chemicals before starting production.

In case of major changes in the production scale or in the product categories as well as in the physical and chemical characteristics
of the products, the register entities that have made the registration shall, within 3 months, make a new registration of the major
changes.

Article 14

The matters that a production entity shall register include:

1)

Basic information of the production entity;

2)

Production capacity, quantities needed annually, maximum storage quantities of the hazard chemicals;

3)

Product standards of the hazard chemicals;

4)

Appraisal and evaluation reports on hazardous natures of new chemicals and the chemicals with unclear hazardous natures;

5)

Chemical safety technical specifications and chemical safety labels;

6)

Emergent consultation service telephone.

Article 15

The matters that a storage entity or use entity shall register include:

1)

Basic information of the storage entity or use entity;

2)

Categories and quantities of the hazard chemicals stored or used;

3)

Safety technical specifications and safety labels of the hazard chemicals stored or used.

Article 16

Registration procedures:

1)

The register entity shall draw the Hazardous Chemical Registration Form from the registration office of the province, autonomous region
or municipality directly under the Central Government where it is located, and faithfully fill out the form according to the requirements.

2)

The register entity shall provide the registration materials to the registration office by written documents and electronic documents.

3)

The registration office shall examine the hazardous chemical registration files submitted by the register entity within 20 days from
the day of submission, and may conduct on-spot verification if necessary, register the hazardous chemicals and the register entities
that meet the requirements, record the relevant data into the hazardous chemical administration database of the area and submit the
registration materials to the Registration Center.

4)

The Registration Center shall, within 10 days from receiving the registration materials submitted by the registration office, make
necessary examination and record the relevant data into the national hazardous chemical administration database before issuing the
hazardous chemical registration certificate and registration number to the register entity through the registration office.

5)

The registration office shall, within 5 days from receiving the registration certificate and registration number, serve the certificate
and number to the register entity or notify the register entity to draw them.

Article 17

When making registration, a production entity shall submit the following materials to the registration office of the province, autonomous
region or municipality directly under the Central Government where it is located:

1)

Hazardous Chemical Registration Form in triplication and one piece of the electronic version thereof;

2)

Two copies of the business license;

3)

Reports on the appraisal, classification and evaluation of the chemicals with unclear hazardous natures or of the new chemicals, three
pieces of each;

4)

Chemical safety technical specification and chemical safety label, three pieces and one electronic version of each;

5)

Emergent consultation service telephone number. If a relevant agency has been entrusted to set up the emergent consultation service
telephone, the trust deed for emergent services shall be provided;

6)

Product standards of the hazardous chemicals to be registered (if the state standards or industrial standards are adopted, the standard
numbers shall be provided).

A storage entity or use entity shall submit the materials provided for in Items 1), 2) and 4) above mentioned.

Article 18

The valid term of a registration certification of hazardous chemicals is 3 years. The register entity shall, within 3 months prior
to the expiration of the valid term, go through the review with the registration office of the province, autonomous region or municipality
directly under the Central Government where it is located. The contents to be reviewed shall include: alteration of the basic information
of the production entity, storage entity or use entity, and updates of the safety technical specification and safety label etc.

Article 19

A register entity shall perform the following obligations:

1)

Making general examinations of its hazardous chemicals and establish the administration archives of hazardous chemicals;

2)

Faithfully filling out the registration materials of hazardous chemicals;

3)

Appraising, classifying and evaluating the chemicals with unclear hazardous natures or the new chemicals produced by the entity;

4)

A production entity shall correctly draw up the chemical technical specifications according to the national standard and provide the
specifications to the users, hang or stick the chemical safety labels onto the packaging of the products, provide accurate and reliable
data and be responsible for the authenticity of the data;

5)

A storage entity or use entity of hazardous chemicals shall ask for the safety technical specifications from the entity supplying
the products;

6)

A production entity must provide the users with the chemical accident emergent consultation services, and provide technical directions
and necessary assistance for emergent rescue in chemical accidents;

7)

Assisting the registration staff to make verification of the hazardous chemical registration of the entity when necessary.

Article 20

When a production entity terminates the production of hazardous chemicals, it shall go through the formalities for writing off the
registration within 3 months from the termination of production.

Where a use entity terminates the use of hazardous chemicals, it shall go through the formalities for writing off the registration
within 3 months from the termination of use.

Chapter IV Penalty provisions

Article 21

If a production entity, storage entity or use entity is in any of the following situations, the body of safety production supervision
and administration at or above the county level shall order it to correct its behavior and impose on it a fine of less than 30,000
yuan regarding the seriousness of the circumstances:

1)

Failing to make the registration of hazardous chemicals pursuant to the provisions, or failing to make the registration within 6 months
from the day of receipt of the notification for registration;

2)

Failing to provide the emergent consultation services to the users;

3)

Transferring, renting or forging the registration certificate;

4)

A register entity that has made the registration failing to go through the registration formalities anew pursuant to the provisions
in case of major changes in the production scale, or the product categories, or the physical and chemical characteristics of the
products;

5)

Failing to apply for review pursuant to the provisions after the hazard chemical registration certificate expires;

6)

A production entity or use entity failing to go through the formalities for writing off the registration in time pursuant to the provisions
in case of termination of the production or termination of use of hazardous chemicals.

Article 22

If the staff of the Registration Center or registration office operate against the rules, conduct fraudulent acts, overissue the certificates,
or fail to make the registration within the prescribed time limit without due cases and give no clear answer, or disclose the commercial
secrets of the register entities, the body of safe production supervision and administration at or above the provincial level shall
order them to correct their behaviors, and shall give administrative punishments to the relevant responsible personnel, and shall
investigate for the responsibilities of the principal of the Registration Center or registration office.

Chapter V Supplementary Rules

Article 23

The hazard chemical registration forms, the hazard chemical registration certificates and the post certificates of hazard chemical
registration staff shall be uniformly printed by the State Bureau of Safe Production Supervision and Administration.

Article 24

The power to interpret the present Measures shall be authorized to the State Bureau of Safe Production Supervision and Administration.

Article 25

The present Measures shall enter into force on November 15, 2002, and the Provisions on the Administration of Registration of Hazards
Chemicals promulgated by the State Economic and Trade Commission on September 11, 2000 shall be abolished simultaneously.



 
The State Economic and Trade Commission
2002-10-08

 






MEASURES ON ADMINISTRATION OF FOREIGN-FUNDED INTERNATIONAL FREIGHT AGENCY ENTERPRISES

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

No.36

In order to perform the relevant commitments of China’s accession to WTO and to further promote the development of international freight
agency in China, the Measures of the People’s Republic of China on Administration of Foreign-funded International Freight Agency
Enterprises were adopted at the 11th executive meeting of ministers of the Ministry of Foreign Trade and Cooperation and are hereby
promulgated. These Measures shall come into force on the 30th day after the day of promulgation, the former Decree No.31 of 2001
shall be nullified at the same time.
Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangshen

December 11, 2002

Measures on Administration of Foreign-funded International Freight Agency Enterprises

Article 1

In order to promote the healthy development of international freight agency in China and to regulate the establishment and operation
of foreign-funded international freight agency enterprises, these Measures are enacted in accordance with the relevant state laws
and regulations on foreign-funded enterprises and the Provisions of the People’s Republic of China for the Administration of International
Freight Agency Industry.

Article 2

Foreign-funded international freight agency enterprises as used in these provisions refer to the enterprises with foreign investment
that are established by foreign investors in the form of Chinese-foreign equity joint venture, Chinese-foreign contractual joint
venture or sole foreign proprietorship, and that deal with international freight and relevant businesses for the trustor in the trustor’s
name or the enterprise’s own name upon commission of the consignee or consigner of import or export goods, and collect remuneration
(hereinafter referred to as foreign-funded international freight agency enterprises).

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as MOFTEC) and
the bodies authorized thereby are in charge of the approval and administration of foreign-funded international freight agency enterprises.

Article 4

Foreign investors may establish foreign-funded international freight agency enterprises within China in the form of Chinese-foreign
equity joint venture, Chinese-foreign contractual joint venture or sole foreign proprietorship.

In a Chinese-foreign equity or contractual joint international freight agency enterprise established by foreign investors, the capital
contribution of the Chinese party shall not be lower than 25%; the specific time for acceptance of applications for solely foreign-funded
international freight agency enterprises shall be promulgated by MOFTEC separately.

Foreign investors may purchase established foreign-funded international freight agency enterprises by purchasing stock equity, however,
the equity ratio and investors’ qualification must meet the requirements of these provisions, where state-owned assets are involved,
the relevant laws and regulations shall be followed.

Article 5

The Chinese and foreign parties applying for establishment of a foreign-funded international freight agency enterprise must meet
the following conditions:

1)

At least one Chinese party is an international freight agency enterprise undertaking international freight agency business, or an
import and export enterprise, or an enterprise engaging in relevant transport or storage business, the Chinese party meeting the
aforesaid conditions shall be the largest shareholder among the Chinese parties;

2)

At least one foreign party is an enterprise that has dealt with international freight agency for 3 years or more, and the foreign
party meeting the aforesaid conditions shall be the largest shareholder among the foreign parties;

3)

None of the Chinese and foreign parties has any record of violation of the industry rules in the 3 years prior to the day of application.

Article 6

If an international freight agency enterprise established within China by one foreign party has been in operation for less that 2
years, the said foreign party may not invest to establish a second international freight agency enterprise.

Article 7

For establishment of a foreign-funded international freight agency enterprise, the following requirements must be met:

1)

Having a registered capital of at least 1 million US dollars;

2)

Having at least 5 personnel who have engaged in international freight agency for 3 years or more or who have obtained the corresponding
qualification certificates;

3)

Having a fixed business site;

4)

Having necessary business facilities, such as communication, transport, loading and packaging etc.

Article 8

A foreign-funded international freight agency enterprise may deal with part or all of the following business upon approval:

1)

Booking (ship leasing, air chartering and cabin chartering), consigning, storing and packaging;

2)

Supervision of loading and unloading of goods, consolidating and devanning, distribution, transferring and relevant short-distance
transport services;

3)

Acting as an agent to make customs declarations, check and inspection, and to purchase insurance;

4)

Preparing the relevant documents, paying for the freight, settling and paying the miscellaneous expenses;

5)

Freight agency of international exhibits, personal articles and goods in transit;

6)

International multimode transport and container shipping (including consolidation);

7)

International express (excluding delivery of personal letters and official documents of party, political and military bodies at and
above the county level);

8)

Consulting and other international freight agency business.

Enterprises undertaking international express delivery of letters or articles with the nature of a letter (excluding delivery of personal
letters and official documents of party, political and military bodies at and above the county level) must, upon approval of the
departments of foreign trade and economic cooperation, make the post trust certificate with the post department.

Article 9

To establish a foreign-funded international freight agency enterprise, the party shall file an application with MOFTEC pursuant to
the procedures provided for in the existing state laws and regulations on foreign-funded enterprises, MOFTEC and the department authorized
thereby are in charge of examining and approving the establishment of the enterprise, and issuing of the Foreign-funded Enterprise
Approval Certificate and International Freight Agency Enterprise Approval Certificate. The following documents shall be provided
for the establishment of a foreign-funded international freight agency enterprise:

1)

Application form;

2)

Feasibility study report;

3)

Contract and articles of association;

4)

Name list and resumes of the directors and major managerial personnel;

5)

Notice for advance approval of enterprise name issued by the industry and commerce department;

6)

Registration certifications and credit certifications in the countries or regions where the investors are located;

7)

Qualification certifications of the major investors;

8)

Certifications of the enterprise’s business site;

9)

Other documents to be provided as required by the examination and approval body.

Article 10

The operation duration of a foreign-funded international freight agency enterprise shall not exceed 20 years as a general principle.

Article 11

If it has been one year or more since a foreign-funded international freight agency enterprise started business and the capital contributions
have all been made by the parties, the enterprise may apply for setting up branches in other places of China.The business scope of
a branch shall fall within that of the head company. The civil liabilities of the branch shall be borne by the head company. The
registered capital of a foreign-funded international freight agency enterprise shall be subject to a 120, 000-US-dollars increase
for each branch it sets up to operate as an international freight agency. For those cheating the examination and approval body for
approval for establishment of branch by making false capital contribution or withdrawing registered capital etc, the examination
and approval body will cancel the International Freight Agency Enterprise Approval Certificate of the branch, aside from giving punishment
pursuant to the relevant regulations.

To apply for setting up a branch, the party shall file an application with the MOFTEC, and the MOFTEC or the department authorized
thereby will decide whether to approve after seeking opinions from the department of foreign trade and economic cooperation of the
place where the branch is to be set up. The following documents need to be provided for setting up a branch by a foreign-funded international
freight agency enterprise:

1)

Letter of opinions of the department of foreign trade and economic cooperation of the place where the branch is to be set up;

2)

Resolution of the board of directors on setting up the branch, increasing the capital or modifying the articles of association;

3)

Agreement on modifying the contract and articles of association with respect to increase of capital;

4)

Report on the enterprise’s business operations, reasons for setting up the branch and feasibility study analysis;

5)

Report on the verification of capital;

6)

Certifications of the personnel and business site of the branch;

7)

Other documents to be provided as required by the examination and approval body.

Article 12

Foreign-funded international freight agency enterprises shall strictly abide by the relevant laws and regulations of the state on
foreign investment and the Provisions of the People’s Republic of China on Administration of International Freight Agency Industry
and the implementation rules thereof, and the relevant departments will punish any law-breaking or rule-breaking acts pursuant to
the relevant laws and regulations.

Article 13

Foreign-funded international freight agency enterprises are encouraged to join in the civil organizations and trade guilds, such
as China International Freight Forwarders Association, China Association of Enterprises with Foreign Investment etc, and voluntarily
subject themselves to industry supervision and direction.

Article 14

These measures shall be referred to for the establishment of international freight agency enterprises in the mainland of China by
companies, enterprises, other economic organizations and individuals from Hong Kong, Macao and Taiwan area.

Article 15

These Measures shall enter into force on the 30th day after the day of promulgation, the former Provisions on Administration of Foreign-funded
International Freight Agency Enterprises shall be nullified at the same time.

This is hereby the notification.



 
The Ministry of Foreign Trade and Economic Cooperation
2002-12-11

 






CIRCULAR ON TAX PAID BY FOREIGN INVESTORS MERGING THE STOCK EQUITY OF CHINESE ENTERPRISES

The State Administration of Taxation

Circular on Tax Paid by Foreign Investors Merging the Stock Equity of Chinese Enterprises

GuoShuiFa [2003] No. 60

May 28, 2003

In order to promote and regulate the investment launched by foreign investors in China, introduce foreign advanced technology and
management experiences, raise China’s level of utilizing foreign capital and realize reasonable allocation of resources, the former
Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Administration
of Foreign Exchange and the State Administration of Taxation jointly promulgated the Interim Regulations Concerning the Issue that
Foreign Investor Merge Enterprises Within the Territory of China (hereinafter referred to as Interim Regulations) in March of 2003,
which allows foreign investors to merge the stock equity of enterprises without foreign investment within the territory of China
(hereinafter referred to as enterprises within the territory). Concerning the tax issue involved in the merger, it is hereby informed
as follows:

I.

Foreign investors enable enterprises within the territory to become enterprises with foreign investment through purchasing the stock
equity of their shareholders or subscribe their increased capital (hereinafter referred to as stock equity purchase). If foreign
investors have more than 25% of the total shares, the enterprise may pay various taxes according to tax laws and regulations suitable
to enterprises with foreign investment.

II.

For the enterprises with foreign investment changed into from an enterprise within the territory through stock equity purchase, if
they meet the relevant conditions stipulated by the Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises (hereinafter referred to as Tax Law) and its detailed rules, they could enjoy preferential tax
treatment made by Tax Law and other relevant provisions. The preferential tax should be calculated according to the following provisions:

(I)

The beginning of business and operation period. The day when an industrial and commercial organ approves and issues business license
means an enterprise with foreign investment changed into from an enterprise within the territory through stock equity purchase begins
its business. From the beginning day to the business maturity date set by industrial and commercial registration is operation period.

(II)

The settlement of pre-establishment loss. The total business loss that has not been made up before an enterprise with foreign investment
established may be covered by the enterprise with foreign investment changed into from an enterprise within the territory through
stock equity purchase in the rest years of covering loss stipulated by Article 11 of Tax Law.

(III)

Identification of profit-making year. Profit-making year refers to the year when an enterprise with foreign investment changed into
from an enterprise within the territory through stock equity purchase is established and it still makes profit after making up loss
of the years before. In the profit-making year, if the production period is less than 6 months, the enterprise may choose the beginning
year of tax reduction and remission according to Article 77 of detailed rules of Tax Law.

III.

The Circular shall enter into force as of January 1, 2003. The enterprises with foreign investment changed from enterprises within
the territory through stock equity purchase established before the promulgation of the circular should adhere to the circular if
they meet the conditions of Interim Regulations and the circular.



 
The State Administration of Taxation
2003-05-28

 






MOFCOM, NDRC, GAC, GAQSIQ AND CAA OF THE PEOPLE’S REPUBLIC OF CHINA ANNOUNCEMENT NO.14, 2006

Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration of
Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration

MOFCOM, NDRC, GAC, GAQSIQ and CAA of the People’s Republic of China Announcement No.14, 2006

[ 2006] No.14

In accordance with Circular on Regulating Export Order of Motorcycle Products (No.699, 2005) and Supplementary Circular on Regulating
Export Order of Motorcycle Products (No.44, 2006), here announce the List of Finished Motorcycle Producing Enterprises with Export
Qualifications and Export Operation Enterprises with Authorization, List of ATV Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization, and List of Off-road Motorcycle Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization of 2006.

Ministry of Commerce

National Development and Reform Commission

General Administration of the Customs

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration

Feb 28, 2006



 
Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration
of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration
2006-02-28

 






PROCEDURES ON THE BOOK-ENTRY GOVERNMENT BONDS TRADING OVER THE COUNTER OF COMMERCIAL BANKS

The People’s Bank of China

Order of the People’s Bank of China

No.2

To regulate the book-entry government bonds trading over the counter of commercial banks and encourage healthy development of bond
market, the People’s Bank of China stipulated the Administration Rules on the Book-entry Government Bonds Trading over the Counter
of Commercial Banks. Now it enters into force after the passage by the Executive Meeting of the People’s Bank of China.

The People’s Bank of China

January 31, 2002

Procedures on the Book-entry Government Bonds Trading over the Counter of Commercial Banks

Chapter I General Provisions

Article 1

To regulate book-entry government bonds trading over the counter of commercial banks, facilitate investor’s trading activities and
protect their legal rights and encourage the healthy development of the bond market, the People’s Bank of China stipulated the Procedures
in accordance with relevant laws and regulations.

Article 2

The book-entry government bonds (hereinafter referred to as bonds) defined herein refer to bonds designated by the Ministry of Finance
and approved by the People’s Bank of China to be traded over the counter of commercial banks.

Article 3

Bond trading over the counter of commercial banks (hereinafter referred to as over-the-counter bond trading) defined herein refers
to trading activities conducted by commercial banks through their outlets with government bond investors, including bond custody
and settlement.

Article 4

After consulting with the Ministry of Finance, the People’s Bank of China can approve qualified commercial banks to undertake over-the-counter
bond trading.(hereinafter referred to as undertaking banks)

Article 5

Investors hereof are individuals or enterprises who trade bonds with commercial banks through commercial banks’ outlets. Financial
institutions shall not buy or sell bonds through commercial banks’ outlets.

Article 6

Over-the-counter bond trading shall follow the principle of fairness and integrity. Investors shall take the relevant risks alone.

Article 7

Over-the-counter traded bonds have a two-tier custody system: the Central Government Bond Registration and Clearing Corporation Ltd.
(Hereinafter referred to as Central Clearing Co.) is the primary custodian designated by the People’s Bank of China, while the undertaking
banks are the secondary custodian.

The bond custody account adopts the real name system.

Article 8

The Central Clearing Co. shall stipulate business standards for over-the-counter bond tradings in accordance with the Rules and regulate
the exchange of relevant data.

Article 9

The People’s Bank of China is the competent authority for the supervision of over-the-counter trading activities. Branches of the
People’s Bank of China conduct daily supervision on over-the counter trading activities of the commercial banks in their jurisdiction.

Chapter II Undertaking Banks

Article 10

A commercial bank applying to be an undertaking bank shall satisfy the following conditions:

(1)

The applicant should have unified, safe and stable computerized business processing system;

(2)

The applicant should have sound internal control system and risk prevention mechanism;

(3)

The applicant should have a special division to be responsible for over-the-counter trading activities and qualified full-time staff;

(4)

The applicant should actively participate in the inter-bank bond market and the total bond trading volume two years prior to the application
should rank higher;

(5)

The applicant should have been a member of the underwriter group of government bonds for three consecutive years before application;

(6)

The applicant should have no serious violation records two years prior to application in the inter-bank bond market; and

(7)

Other conditions required by the People’s Bank of China.

Article 11

A commercial bank that applies for being an undertaking bank shall provide the People’s Bank of China with the following materials:

(1)

An Application Letter;

(2)

A business plan for over-the-counter trading;

(3)

An organizational structure and staff arrangement plan for over-the-counter trading;

(4)

An internal control system and implementation rules worked out in accordance with the Rules;

(5)

The current situation of computer-based business processing system and a development plan of the business processing system for conducting
over-the-counter bond trading business; and

(6)

Other relevant materials required by the People’s Bank of China.

Article 12

The Provincial branches of an undertaking bank who apply for over-the-counter trading business shall get the approval by the People’s
Bank of China having consulted with the Ministry of Finance. The undertaking bank shall submit the name list of the outlets that
are to launch over-the-counter trading business to local branches of the People’s Bank of China and local fiscal agencies for record,
and shall publish the information through China Bond Information Network or other relevant media.

Article 13

An undertaking bank shall separate the over-the-counter trading business with other bond businesses in the inter-bank bond market.
Its responsible units, staffs and relevant accounts shall be managed separately.

Article 14

An undertaking bank can conduct the following businesses:

(1)

Buying and selling bonds with investors as a self-managing dealers and providing two-way quotation;

(2)

Opening custody accounts for bond investors and conducting custody, settlement and other relevant businesses;

(3)

Selling bonds and servicing bond principle and interest through their outlets; and

(4)

Handling the bond registration as collateral for investors.

Article 15

An undertaking bank has the following rights:

(1)

Requiring investors provide real and effective identification documents; and

(2)

Providing bid and offer prices with discretion within the established spreads.

Article 16

An undertaking bank’s commitments include:

(1)

Opening and maintaining accounts for investors and providing account requiring, information and consulting services;

(2)

Publishing price quotations for over-the-counter trading in accordance with the Rules;

(3)

Accurately and continuously keeping record of investor’s bonds transactions and balances, and transmitting daily over-the-counter
trading data in required forms and types to the Central Clearing Co.;

(4)

Keeping investor’s account information confidential; and

(5)

Reporting to the People’s Bank of China the information about over-the-counter trading business, serious events being reported to
both the People’s Bank of China and the Ministry of Finance.

Chapter III Trading and Settlement

Article 17

Over-the-counter trading shall be conducted through the over-the-counter trading business processing system (hereinafter referred
to as trading system) of the undertaking bank.

Article 18

Business day for over-the-counter trading is any day from Monday to Friday, except legal holidays. An undertaking bank shall not stop
over-the-counter trading without approval by the People’s Bank of China.

Article 19

Investors shall open bond custody accounts in their real names, and open or designate a corresponding capital account according to
the requirement of the undertaking bank.

Article 20

Investors shall provide the undertaking bank with written orders in buying or selling bonds. The undertaking bank shall maintain complete
record of investors’ orders in its trading system and provide investors with complete record of delivery as requested.

Article 21

The spread between the bid and offer prices made by an undertaking bank shall not be higher than the price difference set up or adjusted
jointly by the People’s Bank of China and the Ministry of Finance with consideration of market situation and discussion with the
undertaking banks.

Article 22

Within business hours, undertaking banks shall quote unified bid and offer prices and reference yield to maturity in all their outlets
undertaking over-the-counter trading business, at the same time, disclose the information to public. They shall not unquote prices
at their wills; And they have the discretion to adjust their quotations according to market conditions.

Article 23

Undertaking banks shall present the following notice prominently in all their undertaking outlets: “The prices are given according
to market changes, investors shall buy or sell bonds at their own risks.”

Article 24

Undertaking banks shall buy or sell bonds at the disclosed prices. Were there some temporary shortage of certain kind of bond, the
relevant undertaking bank may suspend selling the bond and put a report to the People’s Bank of China for record. The bank shall
replenish supply of the bond within two business days and resume its selling.

Article 25

The quotation unit of over-the-counter bond trading is in RMB hundred yuan, and so is the trading unit. The unit for settlement is
yuan with two decimals.

Article 26

Over-the-counter trading adopts the real time settlement for delivery and payment. Undertaking banks shall conduct capital and bond
settlement for investors timely, and when the trading is concluded, transfer the relevant data and settlement orders to the Central
Clearing Co. as required.

The Central Clearing Co. shall, in accordance with the data and settlement orders received, finish the bond settlement between the
undertaking banks’ own accounts and their general broker’s accounts before the start of the next business day.

Chapter IV Bond Custody and Redemption

Article 27

The Central Clearing Co. shall open dealer’s accounts and general broker’s accounts for undertaking banks, and record their own bonds
and their clients’ bonds respectively. The Central Clearing Co. shall be responsible for the authenticity, accuracy and integrity
of the first-grade custodian accounts.

Article 28

An undertaking bank shall open bond custodian account for investors to record their bonds. After the Central Clearing Corporation’s
examination and verification, the outstanding balance recorded by the undertaking bank in the second-grade custodian accounts should
be the quantity of bonds held by investors. The undertaking bank shall be responsible for the authenticity, accuracy, integrity and
safety of the second-grade custodian accounts.

Article 29

Undertaking banks and the Central Clearing Corporation may charge service fees for providing custody and other relevant services.

Article 30

Undertaking banks shall strictly separate their own bonds with their investors’ bonds, and shall not misappropriate investors’ bonds.

Article 31

Investors may make recustody of their bonds among different undertaking banks.

Article 32

Issuers shall transfer the redeemed interest or principal to the fund account designated by the Central Clearing Corporation at least
one workday before the interest-payment day or the maturity day. The Central Clearing Corporation shall after receipt transfer the
above mentioned money to the undertaking bank one business day in advance, the latter shall transfer the total amount of money to
the fund accounts of investors on the interest payment day or redemption day.

Chapter V Inquiry and Supervision

Article 33

Undertaking banks shall establish account information inquiry systems for over-the-counter bonds trading, while the Central Clearing
Corporation shall establish an account information reviewing system. An investor may inquire about the transaction volume and outstanding
balance of his or her bonds from the undertaking bank or require that the Central Clearing Corporation review his or her outstanding
balance through the reviewing system. Were there any doubts, the investor may ask the undertaking bank to explain, and even report
that to the local People’s Bank of China branch if unsolved.

Article 34

Undertaking banks shall as stipulated transfer their over-the-counter trading data to the Central Clearing Corporation, and the latter
shall check relevant accounts against the data received. The Central Clearing Corporation shall check any wrong information with
the undertaking bank concerned. If the check cannot be finished before the next business day, the Central Clearing Corporation shall
suspend part or all of transactions of the undertaking bank with the approval by the People’s Bank of China.

Article 35

The Central Clearing Corporation shall publish the quotation information provided by undertaking banks to the public through China
Bond Information web-site or the media designated by the People’s Bank of China.

Article 36

With the authorization of the People’s Bank of China, the Central Clearing Corporation may examine the second-grade custodian accounts
of an undertaking bank.

Article 37

Undertaking banks and the Central Clearing Corporation shall report periodically to the People’s Bank of China on over-the-counter
trading and subject themselves to the inspection and supervision by the People’s Bank of China.

Chapter VI Penalty Provisions

Article 38

A commercial bank that has committed any of the following offences shall, according to the seriousness of the offence, be punished
by the People’s Bank of China in the formality of circulating a notice of criticism, giving a disciplinary warning, suspending or
revoking its trading status, plus a fine of no more than RMB30,000 yuan. Both the senior manager and the directly responsible personnel
shall be given disciplinary punishment by their regulatory authorities. Offences against the People’s Bank of China management rules
governing the competence for posts on Senior Management of Financial Institutions will be punished according to the rules.

(1)

Conducting over-the-counter trading business without approval;

(2)

Not publishing two-way quotations as stipulated by the rules;

(3)

Short-selling bonds;

(4)

Conducting over-the-counter trading business out of the trading system;

(5)

Not satisfying the need of investors according to the quoted prices;

(6)

Suspending trading activities without proper causes;

(7)

Misappropriating investors’ bonds;

(8)

Fabricating bond accounts’ records;

(9)

Change Custody for investors without following the relevant rules;

(10)

Issuing false bond custody certification;

(11)

Divulging investors’ account secret information; and

(12)

Other offences against the Rules.

Article 39

The Central Clearing Corporation shall be punished by the People’s Bank of China circulating a notice of criticism or giving a disciplinary
warning plus a fine of no more than RMB30000 yuan for any of the following offences. Both the senior manager and the directly responsible
person shall be given a disciplinary punishment by their supervisory authorities.

(1)

Causing serious losses to undertaking banks or investors because of its dereliction of duty;

(2)

Publishing false information or divulging non-public information;

(3)

Inducing investors and resulting in their losses;

(4)

Facilitating the malicious manipulation of the market or various activities against the Rules by undertaking banks;

(5)

Divulging secrets of undertaking banks and investors; and

(6)

Other offences against the Rules.

Chapter VII Supplementary Provisions

Article 40

The People’s Bank of China shall be responsible for the interpretation of the Rules.

Article 41

The Rules shall enter into force as of the date of its promulgation.



 
The People’s Bank of China
2002-01-31

 






CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON INFORMING THE SUPPLEMENTARY SCHEME OF THE PASSIVE QUOTA DISTRIBUTION SCHEME 2002 ON SOME CATEGORIES OF TEXTILES FOR TEXTILE-PRODUCING ENTERPRISES EXPORTING BY THEMSELVES

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Informing the Supplementary Scheme of the Passive Quota Distribution
Scheme 2002 on Some Categories of Textiles for Textile-producing Enterprises Exporting by Themselves

WaiJingMaoMaoHan [2002] No.204

March 18, 2002

The departments (commissions, bureaus) of foreign trade and economic cooperation in Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu,
Zejiang, Ningbo, Anhui, Fujian, Shandong, Qingdao, Henan, Hubei, Hunan, Guangdong, Shenzhen, Sichuang, Shanxi, Ningxia and Xinjiang,
each enterprise directly under the Central Government, the Bureau of Quota and License Administration and the EDI Center of the Ministry:

In order to continue to support the textile-producing enterprises doing export by themselves (hereinafter referred to as manufacturing
enterprises) to expand their export, the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of
Textiles for the Textile-producing Enterprises Exporting by Themselves (see Attachment) is hereby distributed to you. Relevant details
are as follows:

I.

The quota categories in this Supplementary Scheme are 3/4A, 5, 5A, 7/8A and 43 which are exported to Canada and Category 659-s for
the US market. Year 2002 agreement quota levels for these categories are provided in this Supplementary Scheme, as they are not included
in the Circular on Informing the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of Textiles
for the Textile-producing Enterprises Exporting by Themselves (WaiJingMaoMaoFangHan [2002] No.3).

II.

The 2002 quota level of each of the above-mentioned categories for the manufacturing enterprise is 30% respectively of the total distributable
level of each category of the same the year.

III.

The State Economic and Trade Commission is responsible for working out the 2002 list of manufacturing enterprises and the specific
quota distribution scheme.

IV.

The quota distribution scheme of each local enterprise is to be delivered by electronic means. The quota distribution scheme of enterprises
administrated by the Central Government and the distribution scheme of Changchun is to be offered in written forms. Meanwhile, the
Changchun’s scheme will be sent to the export license issuing authority by electronic means.

V.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall transmit this Circular and the quota distribution
scheme to the relevant local manufacturing enterprises as soon as possible and issue the textile export licenses to the relevant
enterprises strictly in accordance with the distribution scheme.

VI.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall, as specific steps to seriously carry
out the strategy of “Broadly-Based Foreign Trade and Economic Cooperation”, bring manufacturing enterprises under unified passive
textile quota control, strengthen the guidance and training of them in quota utilization and timely resolve the problems in the process
of textile export so as to help and supervise these manufacturing enterprises to make better use of the textile quota.

VII.

The EDI Center of the Ministry is requested to tabulate, according to this Supplementary Scheme, the quota level of each category
distributed to the local manufacturing enterprises and send the data to all export license issuing unit for reference. In order to
reduce the data input workload, the EDI Center of the Ministry is also requested to work out and release the data of quota level
of local subsidiary enterprises provided in the Supplementary Scheme.

The Circular is hereby given for strict implementation.

Attachment: The Supplementary Scheme 2002 of the Passive Textile Quota Distribution Scheme for the Textile-producing Enterprises Exporting
by Themselves (omitted)



 
The Ministry of Foreign Trade and Economic Cooperation
2002-03-18

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON ADJUSTING THE POLICIES ON ADMINISTRATION OF FOREIGN CURRENCY BANKNOTES

The People’s Bank of China

Circular of the People’s Bank of China on Adjusting the Policies on Administration of Foreign Currency Banknotes

Yinfa [2002] No.283

September 9, 2002

Each branch and business administrative department of the People’s Bank of China, each central branch in the provincial capital city
and in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; each branch and department of foreign exchange administration of the State Administration
of Foreign Exchange (SAFE) in the province, autonomous region and municipality directly under the Central Government, each branch
of SAFE in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; and each Chinese-capital designated bank of foreign exchange:

Questions related to the adjustment of the administration of foreign currency banknotes are hereby notified as follows:

1.

In setting the nominal rate of exchange for US dollars, the trading price of spot exchange set forth by the designated banks of foreign
exchange shall not be 0.17% higher or lower than the transaction middle price published by the People’s Bank of China; the purchasing
price of banknotes shall not be 0.75% higher or lower than the trading middle price of the corresponding spot exchange, and the selling
price of banknotes shall be equal to the that of the spot exchange.

2.

In setting the nominal rate of exchange, the purchasing price of HK dollar banknotes set forth by the designated banks of foreign
exchange shall not be 0.75% higher or lower than the trading middle price of the corresponding spot exchange, the purchasing prices
of Euro and Japanese Yen banknotes shall not be 1% higher or lower than the trading middle prices of the corresponding spot exchange;
the selling prices of the aforesaid banknotes shall be equal to those of the corresponding spot exchange; the existing Policies on
the difference between the purchasing price and selling price of spot exchange shall remain valid. With respect to the range between
the prices of banknotes and those of spot exchange, the existing policies shall also remain valid.

The nominal rate of exchange set forth by the designated foreign exchange banks may fluctuate within the ranges determined in the
preceding paragraphs, and may be different according to the markets of different areas within the aforesaid ranges in order to provide
more competitive and high-quality services to the clients.

3.

The branches and sub-branches of the designated banks of foreign exchange in border trade areas of Heilongjiang, Inner Mongolia, Xinjiang,
Tibet, Yunnan and Guangxi etc, may post the exchange rates of Renmingbi against the currencies of the bordering countries. The difference
between the purchasing and selling prices may be determined by the banks themselves, and the foreign currencies collected may be
disposed by themselves.

4.

This Circular shall enter into force as of October 1, 2002. If any previous provisions conflicts with the contents of this Circular,
this Circular shall prevail. The branches of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the
sub-branches and the commercial banks (including foreign-funded banks) under their respective jurisdictions. Each bank shall report
its daily nominal rate of exchange to the SAFE before 9 am every day. If any problem is encountered in the implementation of this
Circular, please report to the SAFE in a timely manner.

Contact entity: Department of International Balance of Payments of the SAFE

Contact telephone number: (010) 68402160



 
The People’s Bank of China
2002-09-09

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE TAX POLICIES FOR FURTHER ENCOURAGING THE DEVELOPMENT OF SOFTWARE AND INTEGRATED CIRCUIT INDUSTRIES

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on the Tax Policies for Further Encouraging the Development
of Software and Integrated Circuit Industries

CaiShui[2002] No.70

October 10, 2002

The finance departments (bureaus), state tax bureaus and local tax bureaus of the provinces, autonomous regions, municipalities directly
under the Central Government, municipalities separately listed on the State Plan, and the finance bureau of Xinjiang Army Corps of
Production and Construction:

In order to further encourage the development of software and integrated circuit (IC) industries, the supplementary notice on the
relevant preferential tax policies is hereby made as follows upon approval of the State Council and in accordance with the relevant
provisions of the existing tax law:

I.

From January 1, 2002 to the end of 2010, with respect to the self-made IC products (including monocrystalline silicon wafers) sold
by value-added tax (VAT) general taxpayers, after the VAT has been collected at a 17% rate, the policy of “refund upon collection”
shall be applied to the actual VAT load that exceeds 3%, and the tax refunded shall be used by the enterprises in the expansion of
production and the study and development of IC products.

II.

With respect to the production enterprises of IC products whose product line is less than 0.8 micron (including 0.8 micron) wide,
after certification, the policy of “two-year exemption and three-year reduced payment” of enterprise income tax shall be applied
from the year when the enterprise begins to make profits from 2002, that is, for the first and second year after the enterprise begins
to make profits, the enterprise income tax shall be exempted, and from the third to fifth year, the enterprise income tax shall be
half exempted.

The enterprises with foreign investment that have already enjoyed “two-year exemption and three-year reduced payment” of enterprise
income tax from the profit-making year, according to the Law on Income Tax of Enterprises with Foreign Investment and Foreign Enterprises
and the detailed rules for implementation thereof, shall no longer implement this Article.

With regard to the enterprises with foreign investment that may enjoy exemption of enterprise income tax for two years from the profit-making
year according to the Law on Income Tax of Foreign-funded Enterprises and Foreign Enterprises and the detailed rules for implementation
thereof, if the “two-year exemption” of enterprise income tax actually enjoyed expired before 2002 (excluding 2002), then the “two-year
exemption” shall not be implemented for a second time; if the “two-year exemption” of enterprise income tax has been actually enjoyed
for less than 2 years before 2002 (excluding 2002), the remaining period of tax exemption and the “three-year reduced payment” shall
be implemented from thereon.

The domestic-funded enterprises that are exempted from enterprise income tax for two years from the year of starting production according
to the Circular on Several Preferential Tax Policies on Enterprise Income Tax (CuiShuiZi (94) No.001) of the Ministry of Finance
and the State Administration of Taxation shall implement “two-year exemption and three-year reduced payment” of enterprise income
tax from the profit-making year instead. If the enterprise made profits before 2002 (excluding 2002) and “two-year exemption” of
enterprises income tax actually enjoyed from the profit-making year expires, the “two-year exemption” shall no longer be implemented
for a second time, and the “three-year reduced payment” of enterprise income tax shall be implemented from 2002; if the enterprise
made profits before 2002 (excluding 2002), and has actually enjoyed “two-year exemption” of enterprises income tax from the profit-making
year for less than 2 years, the remaining tax exemption period and “three-year reduced payment” shall be implemented from thereon.

The IC production enterprises whose investment exceeds RMB 8 billion yuan or whose IC line is less than 0.25 micron wide shall continue
implementation of the Circular on the Relevant Tax Policy Issues of Encouraging the Development of Software and IC Industries of
the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs (CaiShui [2000] No.25).

III.

From January 1, 2002 to the end of 2010, for the investors of IC production and capsulation enterprises that increase the registered
capital of their enterprises directly with the profits after payment of enterprise income tax, or use such profits as capital to
launch other IC production or capsulation enterprises, of which the operation duration is no less than 5 years, the enterprise income
tax already paid for the part used as reinvestment shall be refunded at a 40% rate. If the enterprise withdraws the investment after
less than 5 years from the reinvestment, it shall be forced to return the enterprise income tax refunded.

From January 1, 2002 to the end of 2010, for the domestic and foreign economic organizations that invest in the western regions, with
their profits obtained within China after the payment of enterprise income tax, to launch IC production or capsulation enterprises
or software production enterprises, of which the operation duration is no less than 5 years, the enterprise income tax already paid
for the part used as reinvestment shall be refunded at an 80% rate. If the enterprise withdraws the investment after less than 5
years from the reinvestment, it shall be forced to return the enterprise income tax refunded.

The range of western regions shall comply with the Circular of the General Office of the State Council on Transmitting the Office
of Western Region Development of the State Council on Opinions on the Implementation of Several Policies and Measures for Western
Region Development (GuoBanFa [2001] No.73), that is the western regions include Chongqing Municipality, Sichuan Province, Guizhou
Province, Yunnan Province, Tibet Autonomous Region, Shannxi Province, Gansu Province, Ningxia Hui Autonomous Region, Qinghai Province,
Xijiang Uygur Autonomous Region, Xinjiang Army Corps of Production and Construction, Inner Mongolia Autonomous Region, and Guangxi
Zhuang Autonomous Region. The aforesaid policies shall be applied by analogy to the western regions in Tujia Autonomous Prefecture
of Xiangxi of Hunan Province, Tujia & Miao Autonomous Prefecture of Enshi of Hubei Province, Korean Autonomous Prefecture of Yabian
of Jilin Province.

IV.

Other policies and provisions relating to encouragement for software industry and IC industries shall comply with the Circular on
the Relevant Tax Policy Issues of Encouraging the Development Software and IC Industries (CaiShui [2000] No.25) of the Ministry of
Finance, the State Administration of Taxation and the General Administration of Customs.

If any previous policies conflict with this Circular, the latter shall prevail.



 
The Ministry of Finance, the State Administration of Taxation
2002-10-10

 






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

 






1...101112Page 11 of 12

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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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