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NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING FOREIGN EXCHANGE CONTROL ON INDIVIDUAL FOREIGN TRADE OPERATIONS

State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on Relevant Issues concerning Foreign Exchange Control on Individual Foreign
Trade Operations

Hui Fa [2004] No.86

August 10, 2004

The branches of the State Administration of Foreign Exchange (hereinafter referred to as SAFE) or the departments of foreign exchange
control of all provinces, autonomous regions and municipalities directly under the Central Government, the branches of SAFE in Shenzhen,
Dalian, Qingdao, Xiamen and Ningbo, and all Chinese-capital banks designated for the foreign exchange business:

In order to promote the development of foreign trade and the facilitation of it and to improve the foreign exchange control, this
Notice is hereby promulgated as follows concerning the policy of foreign exchange control related to foreign trade in goods by individual
foreign trade operators:

1.

“Individual foreign trade operators” used in the Notice refer to individuals who have gone through the industrial and commercial registration
or other formalities for business operation according to law, obtained the individual license of the industrial and commercial business
or other certificate of business operation, made registration for record according to the provisions of the competent department
of commerce of the State Council (with the exception where no archive registration is required by law) and obtained the right of
engaging in foreign trade operation.

2.

To engage in foreign trade operation, the individual foreign trade operator shall go through the formalities for access to China Electronic
Port with the customs, and then go through the formalities for archive registration for the Roll of Import Entities Making External
Payment of Foreign Exchange or the verification of receipt of foreign exchange by export with the foreign exchange bureau (hereinafter
referred to as the “foreign exchange bureau”) of the place where he has made his industrial and commercial registration or has obtained
his business qualifications. Not until all the formalities mentioned above have been gone through can the individual foreign trade
operator open any settlement account of individual foreign trade or handle any receipt or payment of foreign exchange.

3.

When making the archive registration for the Roll of Import Entities Making External Payment of Foreign Exchange or the verification
of receipt of foreign exchange by export, the individual foreign trade operator shall provide the foreign exchange bureau with the
following materials:

(1)

an application;

(2)

the original copy and the copy of his valid ID certificate;

(3)

the duplicate and the copy of his license of industrial and commercial business or other certificates of business operation obtained
lawfully;

(4)

the original copy and the copy of the archive registration form of the foreign trade operator sealed with the archive registration
print;

(5)

his registration certificate by the customs and its copy;

(6)

the code certificate of his organization and its copy;

(7)

his IC card of “China Electronic Port”; and(8) other materials required by the foreign exchange bureau.

The foreign exchange bureau shall handle relevant formalities for the individual foreign trade operator if all the materials mentioned
above are inerrably submitted.

4.

The individual foreign trade operator may, with the approval of the foreign exchange bureau, open an individual settlement account
of foreign trade according to the need of his operation.

To apply for an individual settlement account of foreign trade, the individual foreign trade operator shall submit to the foreign
exchange bureau the following materials:

(1)

an application for opening an account in writing ;

(2)

the original copy and the copy of his valid ID certificate;

(3)

the original copy and the copy of the archive registration form of the foreign trade operator sealed with the archive registration
print;

(4)

the code certificate of his organization and its copy; and

(5)

other materials required by the foreign exchange bureau.

After checking and verifying all the materials mentioned above and finding no inerrability in them, the foreign exchange bureau shall
issue an Approval for Current Operation, by which the individual foreign trade operator may open an account with a bank engaging
in foreign exchange business in his place (hereinafter referred to as the “bank”). When opening an individual settlement account
of foreign trade for an individual, the bank shall add the word “individual” to the account post_title.

5.

The foreign trade settlement accounts of individual foreign trade operators shall be incorporated into the information system of foreign
exchange account management. The limits thereon shall be fixed at 100% of the actual receipt of foreign exchange under the trade
of individual foreign trade operators in goods.

The access procedures and technical regulations on the incorporation of foreign trade settlement accounts of individual foreign trade
operators into the information system of foreign exchange account management shall be issued by the SAFE separately. Before such
issuance, formalities of foreign exchange control such as opening and closing of accounts mentioned above shall be handled by hand
temporarily.

The collection and payment in the foreign trade settlement account of a foreign trade operator means the collection and payment of
foreign exchange under the import and export of goods, including incidental the collection and payment under the trade in goods.

6.

The foreign trade settlement account is a foreign exchange account so that no foreign cash can be deposited in or withdrawn from it.

Foreign exchange fund may be transferred between the individual foreign trade settlement account and the individual foreign currency
savings account of the same person, however, the fund transferred from the individual savings account to the foreign trade settlement
account shall be limited to external payment on the date of such transfer and can not be made for settlement of exchange. Fund in
the individual foreign trade settlement account may be transferred to the individual foreign cash savings account, however, fund
in the individual foreign cash savings account may not be transferred to the individual foreign trade settlement account.

7.

In his operation of foreign trade in goods, the individual foreign trade operator may make purchase, external payment and settlement
of foreign exchange either directly with the bank or through his individual foreign trade settlement account. However, they can go
through formalities for external payment of foreign exchange neither directly through the individual foreign currency savings account
nor through other foreign currency savings accounts of the operator used alternatively or together.

8.

Where any price of goods needs to be paid in advance externally under the trade in goods and one payment of equivalence is below US$30,000(including
US$30,000), the individual foreign trade operator shall go through the formalities for the external payment with the bank by presenting
relevant certifying materials such as the import contract, the verification form of payment of foreign exchange by import and the
proforma invoice. Where one payment of equivalence is beyond US$30,000, the individual foreign trade operator shall present the import
contract, the verification form of payment of foreign exchange by import, the proforma invoice and the letter of guarantee for such
payment in advance.

9.

The foreign exchange receipt of the individual foreign trade operator from export of goods may be directly settled, or settled through
depositing it in his individual foreign trade settlement account, or settled through depositing it in his individual foreign trade
settlement account and then transferring it to his individual foreign currency savings account.

(1)

Where the amount in a lump sum is equal to or below the equivalent of US$10,000, the operator shall settle the foreign exchange directly
with the bank by presenting his ID certificate;

(2)

Where the amount in a lump sum or the cumulative sum in one day is more than the equivalent of US$10,000:

(a)

If the transaction is to be settled in form of letter of credit, letter of guarantee or documentary collection, the operator shall
go through the formalities for the settlement of foreign exchange by presenting the valid commercial documents in any kind of such
forms.

(b)

If the transaction is to be settled in form of remittance and the settlement of foreign exchange in self-operated export is directly
done or after depositing into the individual foreign trade settlement account, the operator shall go through the formalities for
settlement of foreign exchange with the bank after the verification of its authenticity by the bank by presenting the relevant certifying
documents such as his ID certificate, the export entry and the verification form of receipt of foreign exchange by export.

(3)

In the case of settlement of foreign exchange through depositing into the individual foreign trade settlement account and transferring
to the individual foreign currency savings account, in addition to the provisions of the two preceding items, the Circular of the
State Administration of Foreign Exchange on Problems Related to the Standardization of the Management of Residents’ Personal Foreign
Exchange Settlement (SAFE No. 18 [2004]) shall be abided by.

10.

As to the method of supervision under which a verification form of receipt of foreign exchange by export is required for export entry,
the individual foreign trade operator shall apply to the foreign exchange bureau for the verification form in accordance with the
relevant present provisions. The foreign exchange bureau shall, according to the situation of the operator’s business and the verification
performance, determine the number of verification forms to be issued and issue them to the operator. Any new individual foreign trade
operator applying for verification forms for the first time, in addition, shall present the original copy and the copy of the relevant
contract to the foreign exchange bureau which shall determine the number of verification forms to be issued and issue them to the
operator according to the concrete situation after auditing.

11.

In case individuals receive funds from abroad or making external payment in the operation of foreign trade, they shall handle statistical
declaration of international balance of payment in accordance with the provisions of the Measures for the Statistical Declaration
of International Balance of Payment and other relevant provisions and fill corresponding corporate declaration forms.

12.

The receipt and payment of foreign exchange of the individual foreign trade operator under the technology import and export and the
service trade shall be handled in accordance with the relevant provisions concerning the control of foreign exchange under non-trade
account of domestic institutions. Individuals’ receipt and payment of foreign exchange under capital and financial accounts shall
be handled in accordance with the relevant present provisions concerning the foreign exchange control.

This Circular shall not apply to individual foreign operators’ operation of any border trade or foreign trade in goods in any special
economic zones such as bonded areas or export processing areas.

13.

Individual foreign trade operators shall accept the supervision and inspection of the foreign exchange bureau. The foreign exchange
bureau shall, pursuant to the Regulations of the People’s Republic of China on Foreign Exchange Control and other regulations on
foreign exchange control, impose punishment on any individual foreign trade operator who violates this Circular or any other provisions
on foreign exchange control. If the violation constitutes a crime, the judicial departments shall investigate the violator for criminal
responsibility.

14.

Other matters on foreign exchange control not covered or clearly provided herein shall be handled by referring to the current policy
for control of foreign exchange related to foreign trade activities by domestic institutions.

This Circular shall go into effect 30 days later after its promulgation. After receiving this Notice, each branch of the SAFE and
department of foreign exchange shall promptly transmit the Notice to the sub-branches and banks under its jurisdiction and make it
public. Each Chinese-capital bank designated for foreign exchange business shall promptly transmit the Notice to its affiliated branches
and sub-branches. Any question occurred in the implementation of this Notice shall be fed back promptly to the SAFE.



 
State Administration of Foreign Exchange
2004-08-10

 







INTERIM RULES ON THE HEARING OF ANTIDUMPING INVESTIGATIONS

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Economic Relations and Trade of the People’s Republic of China

No.3

In accordance with the Antidumping Regulation of the People’s Republic of China, the Temporary Rules of the Ministry of Foreign Trade
and Economic Cooperation of the People’s Republic of China on the Hearing of Antidumping Investigations are hereby promulgated and
shall enter into force on January 22, 2002.

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

January 16, 2002

Interim Rules on the Hearing of Antidumping Investigations

Article 1

In order to guarantee the fairness and justice of antidumping investigations and to protect the lawful rights and interests of the
interested parties, these Rules have been enacted according to the relevant provisions of the Antidumping Regulation of the People’s
Republic of China.

Article 2

The Temporary Rules are applicable to the hearing by the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred
to as the MOFTEC) on antidumping rulings in the antidumping investigation procedure.

Article 3

The Bureau of Import and Export Fair Trade under the MOFTEC Cooperation (hereinafter referred to as the BIEFT) shall be responsible
for the concrete organization of hearings on antidumping ruling.

Article 4

A hearing on antidumping ruling shall be held publicly; but those involving secrets of the State, commercial secrets or personal privacy
may be held in other forms upon the decision of the BIEFT on the basis of the applications of the interested parties.

Article 5

The BIEFT shall hold a hearing on the basis of the application of an interested party; and the BIEFT may hold a hearing by itself
when it considers necessary.

Article 6

The BIEFT shall notify the interested parties in advance as for the hearings held by itself, and shall apply the relevant provisions
of these Temporary Rules.

Article 7

The interested parties as referred to in these Rules shall be the applicants of antidumping investigations, the known export operators
and import operators, the governments of the export countries (regions) and other interested organizations and individuals.

Article 8

Where an interested party demands the holding of a hearing, it shall file a written application to the BIEFT.

The following contents shall be included in the application form:

1)

name, address and relevant information of the applicant for hearing;

2)

matters applied;

3)

reasons for application.

Article 9

The BIEFT shall decide to hold a hearing within 15 days from receiving the application from the interested party, and shall notify
all the interested parties including the applicant for the hearing.

Article 10

The following contents shall be included in the notification of the BIEFT on the decision of holding a hearing:

1)

decision to hold the hearing;

2)

reasons for the decision to hold the hearing;

3)

time and place of registration of the interested parties before the hearing and the relevant requirements;

4)

other matters.

Article 11

The interested parties shall, after receiving the notification on decision of holding a hearing, register with the BIEFT according
to the contents of the notification.

Article 12

The BIEFT shall, within 20 days from the deadline determined in the notification on decision of holding a hearing, make the decision
on the time and place for holding the hearing, the president of the hearing and the agenda of the hearing, etc., and shall notify
the registered interested parties.

Article 13

The president of a hearing shall exercise the following powers in the hearing:

1)

presiding over the hearing;

2)

confirming the identities of the attendants of the hearing;

3)

keeping the order of the hearing;

4)

raising questions to the interested parties;

5)

deciding whether to allow the interested parties to supplement evidence;

6)

deciding to suspending or terminating the hearing;

7)

other matters needed to be decided in the hearing.

Article 14

An interested party participating in a hearing may send its legal representative or principal to attend the hearing, or entrust 1
to 2 agents to attend the hearing.

Article 15

An interested party participating in a hearing shall bear the following obligations:

1)

attending the hearing at the designated place on time;

2)

abiding by the disciplines of the hearing and conforming to the arrangements of the president of the hearing.

Article 16

A hearing shall be held according to the following procedures:

1)

The president of the hearing announces the commencement of the hearing, and readouts the disciplines of the hearing;

2)

Verifying the attendants of the hearing;

3)

The interested parties make the statements;

4)

The president of the hearing inquires the interested parties;

5)

The interested parties make their final statements;

6)

The president of the hearing announces the end of the hearing.

Article 17

A hearing aims at offering an opportunity for the interested parties to fully state their opinions, and no debate procedure will be
arranged.

Article 18

Minutes shall be taken for hearings, and the president of hearing, the recorder of the minutes and the interested parties participating
the hearing shall put their signatures or put on their seals on the spot; where any interested party refuses to sign the name or
seal, the president of the hearing shall indicate the relevant information in the minutes of the hearing.

Article 19

In any of the following situations, a hearing may be postponed or cancelled upon the decision of the BIEFT:

1)

The applicant of hearing encounters any event or action of force majeure, and has already submitted a written application for postponing
or cancellation of the hearing;

2)

The antidumping investigation terminates;

3)

Other matters entailing the postponing or cancellation.

Article 20

After the causes for postponing the hearing eliminate, the BIEFT shall resume the hearing, and notify the registered interested parties.

Article 21

The form of notification as referred to in these Temporary Rules shall be the announcements made by the MOFTEC; and the BIEFT may
adopt other forms under special circumstances.

Article 22

The working language for the hearing shall be Chinese.

Article 23

The power to interpret these Rules shall remain with the MOFTEC.

Article 24

These Rules shall enter into force on the day of promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation
2002-01-16

 







CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC) AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON STRENGTHENING THE ADMINISTRATION OF FOREIGN EXCHANGE SALE AND PAYMENT RELATED TO TECHNOLOGY IMPORT CONTRACTS

The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Foreign Exchange

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the State Administration of Foreign Exchange (SAFE)
on Strengthening the Administration of Foreign Exchange Sale and Payment Related to Technology Import Contracts

WaiJingMaoJiFa [2002] No.50

February 20, 2002

Commissions (departments or bureaus) of foreign trade and economic cooperation of all provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, all SAFE branches, exchange administration
offices in Beijing and Chongqing, SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all designated
Chinese-funded foreign exchange banks:

The related issues on handling foreign exchange sale and payment procedures concerning technology import contracts are hereby notified
as follows in accordance with the Regulations of the People’s Republic of China on the Administration of Technology Import and Export
(Decree [2001] No.331 of the State Council) (hereinafter referred to as the Regulations), the Measures for the Administration of
Technologies Banned and Restricted from Import (Decree [2001] No.18 of MOFTEC and the State Economic and Trade Commission ), the
Administrative Measures on Registration of Technology Import and Export Contracts (Decree [2001 ] No. 17 of MOFTEC), and the Circular
on Issues Related to Strengthening the Administration of Foreign Exchange Sale and Payment for Import of Intangible Assets (HuiGuanHanZi
[1998] No.092), with a view to perfecting the administration of technology import contracts, standardizing and safeguarding financial
order, and preventing and cracking down on foreign exchange evasion and frauds:

1.

With regard to the import of any technology restricted from import (referring to such

technology listed in the category of technologies restricted from import in the Chinese Catalogue of Technologies Banned and Restricted
from Import), presentation of the License for Technology Import (See Attachment 1) issued by the department in charge of foreign
trade and economic cooperation and the Data Sheet of Technology Import Contract (See Attachment 3) is required in handling the procedures
for foreign exchange sale and payment related to the technology import contract. The procedures for foreign exchange sale and payment
may be handled only after examination by the designated foreign exchange bank that finds no error.

2.

With regard to the import of any technology that may be freely imported (referring to such technology not listed in the Chinese Catalogue
of Technologies Banned and Restricted from Import), presentation of the Certificate for Registration of Technology Import Contracts
(See Attachment 2) issued by the department in charge of foreign trade and economic cooperation and the Data Sheet of Technology
Import Contract (See Attachment 3) is required in handling the procedures for foreign exchange sale and payment related to the technology
import contract. The procedures for foreign exchange sale and payment may be handled only after examination by the designated foreign
exchange bank that finds no error.

3.

The MOFTEC examines the contracts for technologies restricted from import, issues the License for Technology Import and seals on the
Data Sheet of Technology Import Contract filled in by the operating units according to the Regulations and the Measures for the Administration
of Technologies Banned and Restricted from Import. While handling the foreign exchange sale and payment procedures, the operating
units use two original documents, namely, the License for Technology Import and the Data Sheet of Technology Import Contract. The
banks fill in the amount and date of each foreign exchange sale and payment and also affix the business seal to related columns in
the original document of the Data Sheet of Technology Import Contract. The total amount of foreign exchange sold and paid may not
exceed the total contractual price of the Data Sheet of Technology Import Contract.

4.

The departments in charge of foreign trade and economic cooperation at all levels register the contracts for technologies that may
be freely imported, issue the Certificate for Registration of Technology Import Contract and seal on the Data Sheet of Technology
Import Contract filled in by the operating units according to the Regulations and the Administrative Measures on Registration of
Technology Import and Export Contracts. While handling the foreign exchange sale and payment procedures, the operating units use
two original documents, namely, the Certificate for Registration of Technology Import Contract and the Data Sheet of Technology Import
Contract. The banks fill in the amount and date of each foreign exchange sale and payment and also affix the business seal to related
columns in the original document of the Data Sheet of Technology Import Contract. The total amount of foreign exchange sold and paid
may not exceed the total contractual price of the Data Sheet of Technology Import Contract.

5.

For any technology import contract regarded as an appendix of a joint venture contract or articles of association when an enterprise
with foreign investment is established, the Data Sheet of Technology Import Contract shall be filled in and sealed by the foreign
investment administrative department. When the foreign exchange sale and payment procedures are handled, relevant approval documents
and the Data Sheet of Technology Import Contract shall be presented at the same time. For any technology import contract signed by
an enterprise with foreign investment after its establishment, the technology import contract examination or registration procedures
shall be handled according to relevant regulations.

6.

Technology import contracts include: (1) contract for assignment of patent right; (2) contract for transfer of patent application
right; (3) contract for patent implementation license; (4) contract for license or transfer of exclusively-owned technology; (5)
contract for licensed use of computer software; (6) contract for licensed use or transfer of trademark containing license of patent
or exclusively-owned technology; (7) cooperative for technological service; (8) contract for technological consulting; (9) contract
for cooperative designing; (10) contract for cooperative research; (11) contract for cooperative development; and (12) contract for
cooperative production.

7.

The departments in charge of foreign trade and economic cooperation at all levels shall check on strictly and supervise the operating
units to conscientiously fill in the Data Sheet of Technology Import Contract so as to ensure full and genuine reflection of the
contents of the contract.

8.

If any change happens to the contents of the Data Sheet of Technology Import Contract, the operating unit shall handle the change
procedures at the original organ of registration. The department in charge of foreign trade and economic cooperation shall fill in
and affix a seal to the Data Change Record Sheet of Technology Import Contract (See Attachment 4), which shall be used jointly with
the original Data Sheet of Technology Import Contract and other related approval documents.

9.

The License for Technology Import Contract and the Certificate for Registration of Technology Import Contract shall be printed in
a unified way by the MOFTEC, and the Data Sheet of Technology Import Contract and the Data Change Record Sheet of Technology Import
Contract are subject to random printing.

10.

The MOFTEC and the SAFE will establish an online check system in cooperation with related departments. Anyone who alters the registration
certificate or the contract data sheet without authorization shall, once found, be severely punished according to law.

11.

This Circular shall take effect as from March 1, 2002. For any contract already registered and put into force before issuance of this
Circular but whose implementation has not yet been completed, the original Certificate for Registration and Enter-into-Force of Technology
and Equipment Import Contract and the Data Sheet of Technology Import Contract will continue to be valid till the end of the contract
validity. The original Supplementary Circular on Strengthening the Administration of Technology Import Contracts and Foreign Exchange
Sale and Payment (WaiJingMaoJiFa [2001] No.98) and the Circular on Implementing Relevant Provisions of the Circular on Issues Related
to Strengthening the Administration of Foreign Exchange Sale and Payment for Import of Intangible Assets (WaiJingMaoJiFa-HanZi [1998]
No.50) shall be annulled at the same time.

Attachments:

1. License for Technology Import of the People’s Republic of China (omitted)

2. Certificate for Registration of Technology Import Contract (omitted)

3. Data Sheet of Technology Import Contract (omitted)

4. Data Change Record Sheet of Technology Import Contract (omitted)



 
The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Foreign Exchange
2002-02-20

 







OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF TAX YEAR FOR ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Official Reply of the State Administration of Taxation on the Issue of Tax Year for Enterprises with Foreign Investment

GuoShuiHan [2002] No.361

April 25, 2002

Shanghai Municipal State Taxation Bureau and Local Taxation Bureau:

The Request for Instruction on Whether Enterprises with Foreign Investment Can Apply to Change the Tax Year (HuiGuoShuiWai [2002]
No.15) has been received. We hereby give our reply as follows after deliberation:

I.

In accordance with Article 8 of the Rules for the Implementation of the Income Tax Law of the People’s Republic of China for Enterprises
with Foreign Investment and Foreign Enterprises, the tax year for enterprises with foreign investment shall begin on 1 January and
end on 31 December of the Gregorian Calendar.

II.

Article 16 of the Circular of the State Administration of Taxation on Some Business Disposal Issues Concerning the Implementation
of the Income Tax Law for Enterprises with Foreign Investment and Foreign Enterprises (GuoShuiFa [1991] No. 165) shall be ceased
from execution from 2002; where, prior to 2002, any enterprise with foreign investment was approved by the taxation authority to
take the accounting year of 12 months as the tax year, it may continue to execute until the expiry of the tax year approved.



 
The State Administration of Taxation
2002-04-25

 







RULES FOR CNNIC DOMAIN NAME DISPUTE RESOLUTION POLICY

China Internet Network Information Centre

Rules for CNNIC Domain Name Dispute Resolution Policy

China Internet Network Information Centre

September 25, 2002

Chapter I General Provisions and Definitions

Article 1

In order to ensure the fairness, convenience and promptness of a domain name dispute resolution procedure, these Rules are formulated
in accordance with CNNIC Domain Name Dispute Resolution Policy.

Article 2

The proceedings for the resolution of disputes under CNNIC Domain Name Dispute Resolution Policy adopted by CNNIC shall be governed
by these Rules and the Supplemental Rules of the Domain Name Dispute Resolution Provider.

Article 3

The following terms in the Rules for CNNIC Domain Name Dispute Resolution Policy (hereinafter referred to as these Rules or CNDRP
Rules) have the following definitions:

(1)

CNDRP means CNNIC Domain Name Dispute Resolution Policy adopted by CNNIC , which is incorporated by reference and made a part of the
Registration Agreement, and binding to the holders of the domain names.

(2)

Registration Agreement means the domain name registration agreement between a Registrar and a domain name holder.

(3)

Party means a Complainant or a Respondent.

(4)

Complainant means the party initiating a complaint concerning a domain name registration with Domain Name Dispute Resolution Provider
in accordance with CNDRP and the CNDRP Rules.

(5)

Respondent means the holder of the domain name against which a complaint is initiated.

(6)

Registry refers to China Internet Network Information Center (CNNIC).

(7)

Registrar refers to the entity authorized by CNNIC and responsible for acceptance of the domain name registration applications and
completion of domain name registrations.

(8)

Agency refers to the entity which accepts the applications for registrations of the domain names on behalf of the Registrar.

(9)

Provider refers to a dispute resolution service provider approved by CNNIC to resolve the domain name disputes.

(10)

Panel means a panel composed of 1 or 3 Panelists who are appointed by the Provider to be responsible for the resolution of a domain
name dispute.

(11)

Panelist means the individual who are listed among the Name List of Panelists approved by the Provider and published at the Provider’s
Web-site, and qualified to be members of the Panel for the resolution of the domain name disputes.

(12)

Supplemental Rules means the rules adopted by the Provider to supplement CNDRP in accordance with CNDRP and these Rules.

Chapter II Communications

Article 4

Any communication under these Rules shall abide by the following principles:

(1)

Any communication provided by a Party shall be copied and served to the other Party, the Panel and the Provider, as the case may be.

(2)

Any communication by the Provider to any Party shall be copied and served to the other Party.

(3)

Any communication by the Panel to any Party shall be copied and served to the other Party and the Provider.

(4)

It shall be the responsibility of the sender to retain records of the fact and circumstances of sending, which shall be available
for inspection by affected parties and for reporting purposes.

(5)

In the event a Party sending a communication receives notification of non-delivery of the communication, or thinks by himself that
he has not delivered the communication successfully, the Party shall promptly notify the Provider of the circumstances of the notification.
Further proceedings concerning the communication and any response shall be as directed by the Provider.

(6)

Either Party may update its contact details by notifying the Provider.

Article 5

When forwarding a complaint to the Respondent, it shall be the Provider’s responsibility to employ reasonably available means calculated
to achieve actual notice to Respondent. Achieving actual notice, or employing the following measures to do so, shall discharge this
responsibility:

(1)

Sending the complaint to all postal-mail and facsimile addresses shown in the Registry’s and the Registrar’s WHOIS database for the
registered domain name holder, administrative contact, the technical contact, the undertaker and the bill contact; and

(2)

Sending the complaint in electronic form (including annexes to the extent available in that form) by e-mail to the e-mail addresses
shown in the Registry’s and the Registrar’s WHOIS database for the registered domain name holder, administrative contact, the technical
contact, the undertaker and the bill contact, or if the domain name resolves to an active web page, sending the complaint in electronic
form (including annexes to the extent available in that form) by e-mail to the e-mail addresses shown on that web page; and

(3)

Sending the complaint to any address the Respondent has notified the Provider it prefers and, to the extent practicable, to all other
addresses provided to the Provider by the Complainant.

Article 6

Except as provided in the preceding Article, any written communication to Complainant or Respondent provided for under these Rules
shall be made by the preferred means stated by the Complainant or Respondent respectively, or in the absence of such specification,

(1)

By facsimile transmission, with a confirmation of transmission; or

(2)

By postal or courier service, postage pre-paid and return receipt requested; or

(3)

Electronically via the Internet, provided a record of its transmission is available.

Article 7

Any communication by the Complaint or the Respondent to the Provider or the Panel shall be made by the means and in the manner (including
number of copies) stated in the Provider’s Supplemental Rules.

Article 8

Unless otherwise agreed by the Parties or determined in exceptional cases by the Panel, the language of the domain name dispute resolution
proceedings shall be Chinese. The Panel may order that any documents submitted in languages other than Chinese be wholly or partially
translated into Chinese.

Article 9

Except as otherwise provided in these Rules, or decided by a Panel, all communications provided for under these Rules shall be deemed
to have been made:

(1)

If by facsimile transmission, on the date shown on the confirmation of transmission; or

(2)

If by postal or courier service, on the date marked on the receipt; or

(3)

If via the Internet, on the date that the communication was transmitted, provided that the date of transmission is verifiable.

Article 10

Except as otherwise provided in these Rules, the date calculated under these Rules when a communication begin to be made shall be
the earliest date that the communication is deemed to have been made in accordance with the preceding Article.

Chapter III The Complaint

Article 11

Any person or entity may initiate a domain name dispute resolution proceedings by submitting a complaint in accordance with CNDRP
and these Rules to any Provider approved by CNNIC.

Article 12

The complaint shall be submitted in hard copy and (except to the extent not available for annexes) in electronic form, and shall:

(1)

Request that the complaint be submitted for decision in accordance with CNDRP and these Rules;

(2)

Provide the name, postal and e-mail addresses, and the telephone and telefax numbers of the complaint and of any representative authorized
to act for the Complainant in the proceedings;

(3)

Specify a preferred method for communications directed to the Complainant in domain name dispute resolution proceedings, including
person to be contacted, medium to be adopted and address information, for each of electronic-only material and material including
hard copy;

(4)

Designate whether Complainant elects to have the dispute decided by a single member Panel or a three-member Panel and, in the event
Complainant elects a three-member Panel, provide the names of three candidates from the Provider’s list of panelists to serve as
one of the Panelists in the order of its own preference. The Complainant may also entrust the Provider to appoint the panelist on
his behalf;

(5)

Provide the name of the Respondent (domain name holder) and all information (including any postal and e-mail addresses and telephone
and telefax numbers) known to Complainant regarding how to contact Respondent or any representative of Respondent, in sufficient
detail to allow the Provider to send the complaint as described in Article 5 of these Rules;

(6)

Specify clearly the domain name (s) that is/are the subject of the complaint;

(7)

Identify the Registrar and/or the Agency with whom the domain name (s) is/are registered at the time the complaint is filed;

(8)

Specify the rights or legitimate interests on which the complaint is based with regard to the disputed domain name, annexing all materials
evidencing the rights or interests;

(9)

Describe, in accordance with CNDRP, the grounds on which the complaint is made including, in particular;

(i) the disputed domain name is identical with or confusingly similar to the complainant’s name or mark in which the Complaint has
civil rights or interests;

(ii) the disputed domain name holder has no right or legitimate interest in respect of the domain name or major part of the domain
name;

(iii) the disputed domain name holder has registered or is being used the domain name in bad faith.

(The description should, for elements (3), discuss any aspects of Article 9 of CNDRP. The description shall comply with any word
or page limit set forth in the Provider’s Supplemental Rules.)

(10)

Specify, in accordance with Article 13 of CNDRP, the remedies sought;

(11)

Identify any other legal or arbitral proceedings which have been commenced or terminated in connection with or related to any of the
domain name (s) that are the subject of the complaint. All materials concerning the above proceedings that can be obtained by Complainant
shall be submitted.

(12)

State that a copy of the complaint has been sent or transmitted to the Respondent (domain name holder) as well as the concerned Registrar
and/or the Agency respectively;

(13)

Conclude with the following statement followed by the signature or stamp of the Complainant or its legal representative or its authorized
representative:

“Complainant certifies that the complaint was filed in accordance with CNNIC Domain Name Dispute Resolution Policy and Rules for Domain
Name Dispute Resolution Policy as well as the relevant laws; that the information contained in this Complaint is to the best of Complainant’s
knowledge complete and accurate; that the corresponding claims and remedies shall be solely against the domain name holder and waives
all such claims and remedies against the dispute resolution Provider and Panelists, the Registry and the Registrar, the registry
administrator as well as the Agency”;

(14)

Annex, as attachments, any documentary or other evidence upon which the complaint relies.

Article 13

The Complaint may relate to more than one domain name, provided that the domain names are registered by the same domain name holder.

Article 14

After receipt of the complaint, the Provider shall review the complaint for administrative compliance with CNDRP and these Rules and,
if in compliance, shall forward the copy of the complaint to the Respondent, in the manner prescribed by Article 5 of these Rules,
within three (3) calendar days following receipt of the fees to be paid by the Complainant in accordance with Chapter VIII of these
Rules.

If the Provider finds the complaint to be administratively deficient, it shall promptly notify the Complainant of the nature of the
deficiencies identified. The Complainant shall have five (5) calendar days within which to correct any such deficiencies of the complaint.

If the Complainant does not correct the deficiencies identified or the corrected complaint cannot satisfy the requirements under CNDRP
and these Rules, the complaint will be deemed withdrawn without prejudice to submission of a different complaint by Complainant.

Article 15

The date of commencement of the domain name dispute resolution proceedings shall be the date on which the Provider completes its responsibilities
under Article 5 of these Rules in connection with forwarding the Complaint to the Respondent.

Article 16

The Provider shall immediately notify the parties, the concerned Registrar and CNNIC of the date of commencement of the domain name
dispute resolution proceedings.

Chapter IV The Response

Article 17

Within twenty (20) calendar days of the date of commencement of the proceedings the Respondent shall submit a response to the Provider.

Article 18

The response shall be submitted in hard copy and (except to the extent not available for annexes) in electronic form, and shall:

(1)

Respond specifically to the statements and allegations contained in the complaint and include any and all bases for the Respondent
(domain name holder) to retain registration and use of the disputed domain name (This portion of the response shall comply with any
word or page limit set forth in the Provider’s Supplemental Rules.);

(2)

Provide the name and contact details of the Respondent and of any representative authorized to act for the Respondent in the proceedings
(postal and e-mail addresses, and the telephone and telefax numbers);

(3)

Specify a preferred method for communications directed to the Respondent in the domain name dispute resolution proceedings, including
person to be contacted, medium to be adopted and address information, for each of electronic-only material and material including
hard copy;

(4)

If Complainant has elected a single member Panel in the Complaint, state whether Respondent elects instead to have the dispute decided
by a three-member panel;

(5)

If either Complainant or Respondent elects a three-member Panel, provide the names of three candidates from the Provider’s list of
panelists to serve as one of the Panelists in the order of its own preference. The Respondent may also entrust the Provider to appoint
the panelist on his behalf

(6)

Identify and state any other legal or arbitral proceedings which have been commenced or terminated in connection with or relating
to any of the domain name(s) that is/are the subject of the complaint and provide all information available concerning such proceedings;

(7)

State that a copy of the response has been sent or transmitted to the Complainant in accordance with these Rules;

(8)

Conclude with the following statement followed by the signature or stamp of the Respondent or its legal representative or its authorized
representative:

“Respondent certifies that the response was filed in accordance with CNNIC Domain Name Dispute Resolution Policy and Rules for CNNIC
Domain Name Dispute Resolution Policy as well as the relevant law; that the information contained in this Response is to the best
of Respondent’s knowledge complete and accurate; that the corresponding defenses and assertions shall be solely against the Complainant
and waives all such defenses and assertions against the Provider and Panelists, the Registry and the Registrar, the registry administrator
as well as the Agency.”;

(9)

Annex, as attachments, any documentary or other evidence upon which the response relies.

Article 19

If Complainant has elected to have the dispute decided by a single member Panel and Respondent elects a three-member Panel, Respondent
shall be required to pay one-half of the applicable fees for a three-member Panel as set forth in the Provider’s Supplemental Rules.
This payment shall be made together with the submission of the response to the Provider. In the event that the required payment is
not made, the dispute shall be decided by a single member Panel.

Article 20

At the request of the Respondent, the Provider may, under some special circumstances, extend appropriately the period of time for
the filing of the response. The period may also be extended by the agreement between the parties, provided that the agreement is
approved by the Provider.

Chapter V Appointment of the Panel

Article 21

The Provider shall maintain and publish a publicly available name list of panelists. The Panel in charge of the domain name dispute
resolution shall be composed by either one single Panelist or three Panelists.

Article 22

If neither the Complainant nor the Respondent has elected a three-member Panel, the Provider shall appoint, within five (5) calendar
days following receipt of the response by the Provider, or the lapse of the time period for the submission thereof, a single Panelist
from its list of panelists. The fees for a single member Panel shall be paid entirely by the Complainant.

Article 23

If either the Complainant or the Respondent elects to have the dispute decided by a three-member Panel, the Provider shall appoint
three Panelists in accordance with the procedures identified in Article 25 and 26 of these Rules. The fees for a three-member Panel
shall be paid in their entirety by the Complainant, except where the election for a three-member Panel was made by the Respondent,
in which case the applicable fees shall be shared equally between the Parties.

Article 24

Unless it has already elected a three-member Panel and provided the names of the three candidates, the Complainant shall submit to
the Provider, within three (3) calendar days of communication of a response in which the Respondent elects a three-member Panel,
the names of three candidates to serve as one of the Panelists.

Article 25

In the event that either the Complainant or the Respondent elects a three-member Panel, the Provider shall endeavor to appoint one
Panelist from the list of candidates provided by each of the Complainant and the Respondent. In the event the Provider is unable
within five (5) calendar days to secure the appointment of a Panelist on its customary terms from either Party’s list of candidates,
the Provider shall make that appointment from its list of panelists. The third Panelist shall be appointed by the Provider from its
list of panelists. The third Panelist shall be the Presiding Panelist.

Article 26

Where the Respondent fails to submit the response or, has submitted the response but fails to indicate how to designate the Panel,
the Provider shall proceed to appoint the Panel as follows:

(1)

If the Complainant has designated a single member Panel, the Provider shall appoint the Panelist from its list of panelists;

(2)

If the Complainant has designated a three-member Panel, the Provider shall, subject to availability, appoint one Panelist from the
list of candidates provided by the Complainant and shall appoint the second Panelist and the Presiding Panelist from its list of
panelists.

Article 27

The Panelists shall have the right to decide by themselves whether to accept the appointment. To ensure the promptness and smoothness
of the domain name dispute resolution proceedings, if any of the Panelists designated cannot accept the appointment, the Provider
shall appoint another Panelist from its list of panelists at its own discretion.

Article 28

Once the entire Panel is appointed, the Provider shall promptly forward the case file to all members of the Panel and shall notify
immediately the parties of the Panelists appointed and the date by which the Panel shall forward its decision on the complaint to
the Provider.

Article 29

A Panelist shall be impartial and independent and shall have, before accepting appointment, disclosed to the Provider any circumstances
giving rise to justifiable doubt as to the Panelist’s impartiality or independence. If, at any stage during the proceedings, new
circumstances arise which could give rise to justifiable doubt as to the impartiality or independence of the Panelist, that Panelist
shall promptly disclose such circumstances to the Provider. In such event, the Provider shall have the discretion to appoint a substitute
Panelist.

Prior to the acceptance of appointment as a Panelist, a candidate shall be required to submit to the Provider a Declaration of Independence
and Impartiality in writing.

Where either party thinks that any Panelist has material interests with the opposing party and that such circumstance may affect the
fair ruling of the case, that party may request to the Provider for removing the Panelist before the Panel has rendered its decision.
Removal of the Panelist shall be in the Provider’s discretion.

Article 30

No Party or anyone acting on its behalf may have any unilateral communication with the Panel. All communications between a Party and
the Panel or the Provider shall be made to a case administrator appointed by the Provider in the manner prescribed in the Provider’s
Supplemental Rules.

Chapter VI Hearing and Ruling

Article 31

The Panel shall conduct the proceedings in such manner as it considers appropriate according to these Rules, and decide a complaint
on the basis of the statements and documents submitted and in accordance with CNDRP, as well as any rules and principles of law which
it deems applicable. If a Respondent does not submit a response, the Panel shall, in absence of exceptional circumstances, decide
the dispute based upon the complaint.

In all cases, the Panel shall ensure that the parties are treated with equality and that each party is given a fair opportunity to
present its case, give out its reasons and provide the evidence.

The Panel shall ensure that the proceedings take place with due expedition. It may, at the request of a party, extend, under some
special circumstances, a period of time fixed by these Rules.

The Panel shall determine the admissibility, relevance, materiality and weight of the evidence.

Article 32

In addition to the complaint and the response, the Panel may request, in its sole discretion, further statements or documents from
either of the parties.

Article 33

Under the normal circumstances, there shall be no in-person hearings (including hearings by teleconference, videoconference, and web
conference), unless the Panel determines that such a hearing is necessary for deciding the complaint. Either of the parties may request
the Panel to hold an in-person hearing at his own expenses.

Article 34

In the event that a party, in the absence of exceptional circumstances, does not comply with any of the provisions established by
these Rules or any of the time periods fixed by the Panel, the Panel shall proceed to a decision on the complaint.

Article 35

If a party, in the absence of exceptional circumstances, does not comply with any provisions of these Rules or any request from the
Panel, the Panel shall draw such inferences therefrom as it considers appropriate.

Article 36

In the event of multiple disputes between the parties, either party may petition to consolidate the disputes before a single Panel.
This petition shall be made to the first Panel appointed to hear a pending dispute between the parties. This Panel may consolidate
before it any or all such disputes in its sole discretion, provided that the disputes being consolidated are governed by CNDRP adopted
by CNNIC.

Article 37

In the absence of exceptional circumstances, the Panel shall render its decision on the complaint and forward the decision to the
Provider within fourteen (14) calendar days of its appointment.

Article 38

The Panelists shall submit the draft decision to the Provider before signing the decision. The Provider may review the form of the
award on condition that the Panelists’ independence of decision is not affected.

Article 39

In the case of a three-member Panel, the Panel’s decision shall be made by a majority. Each Panelist possesses an equal vote. Where
the majority cannot be reached, the decision shall be decided by the Presiding Panelist. Any dissenting opinion shall accompany the
majority decision.

Article 40

The Panel’s decision shall be made in electronic form and in hard copy, provide the final decision and the reasons on which it is
based, indicate the date on which it was rendered and identify the name(s) of the Panelists.

If the Panel concludes that the dispute is not within the scope of CNDRP, it shall so state. If after considering the submissions
the Panel finds that the complaint was brought in bad faith, , the Panel may declare in its decision that the complaint constitutes
an abuse of the domain name dispute resolution procedure.

Article 41

In the event of any legal or arbitral proceedings initiated prior to or during the domain name dispute resolution proceedings in respect
of a domain name which is the subject of the complaint, the Provider or the Panel shall have the discretion to decide whether to
suspend or terminate the proceedings, or to proceed to a decision.

Where a party initiates any legal or arbitral proceedings during the pendency of the domain name dispute resolution proceedings in
respect of a domain name which is the subject of the complaint, it shall promptly notify the Panel and the Provider.

Article 42

Before the Panel’s decision, the domain name dispute resolution proceedings may be terminated, if

(1)

The parties agree on a settlement.

(2)

The Panel thinks that it becomes unnecessary or impossible to continue the proceedings for other reasons, unless a party raises justifiable
grounds for objection within a period of time to be determined by the Panel.

Chapter VII Communication and Publication of the Decision

Article 43

Within three (3) calendar days after receiving the decision from the Panel, the Provider shall communicate the full text of the decision
to each party, the Registrar and CNNIC.

Article 44

Unless the Panel, at request of one party or considering the specific situation of the Case, determines otherwise, the Provider shall
publish the full decision on a publicly accessible web site within the time limit stipulated in Article 43 .

Chapter VIII Fees

Article 45

The Complainant shall pay to the Provider an initial fixed fee, in accordance with the Provider’s Supplemental Rules, within the time
and in the amount required. A Respondent electing to have the dispute decided by a three-member Panel, rather than the single member
Panel elected by the Complainant, shall pay the Provider one-half the fixed fee for a three-member Panel. In all other cases, the
Complainant shall bear all of the Provider’s fees.

Article 46

No action shall be taken by the Provider on a complaint until it has received from Complainant the initial fee in accordance with
the Provider’s Supplemental Rules.

Article 47

If the Provider has not received the fees within eight (8) calendar days of receiving the complaint, the complaint shall be deemed
withdrawn and the proceedings terminated.

Article 48

In exceptional circumstances, in the event the Panel, at the request of a party, determines that an in-person hearing is to be held,
the Provider shall request the parties for the payment of additional fees, which shall be established in agreement with the Parties
and the Panel.

Chapter IX Supplementary Provisions

Article 49

Except in the case of deliberate wrongdoing, neither the Provider nor a Panelist shall be liable to a party for any act or omission
in connection with any proceedings under these Rules.

Article 50

These Rules are subject to the interpretation of CNNIC.

Article 51

These Rules shall enter into force as of September 30, 2002.



 
China Internet Network Information Centre
2002-09-25

 







CIRCULAR ON STRENGTHENING THE ADMINISTRATION OF THE ESTABLISHMENT OF SENSITIVE MATERIALS PRODUCTION ENTERPRISES IN CHINA BY FOREIGN INVESTORS

The State Development Planning Commission, The State Economic and Trade Commission, The Ministry of Foreign Trade and Economic Cooperation

Circular on Strengthening the Administration of the Establishment of Sensitive Materials Production Enterprises in China by Foreign
Investors

GuoJingMaoTingChanYe [2002] No.165

November 26, 2002

The economic and trade commissions (economic commissions), planning commissions and departments of foreign trade and economic cooperation
of all provinces, autonomous regions and municipalities directly under the Central Government, municipalities separately listed on
the State plan and Xinjiang Army Corps of Production and Construction:

Upon the approval of the State Council, the State Development Planning Commission, the State Economic and Trade Commission and the
Ministry of Foreign Trade and Economic Cooperation distributed the Interim Provisions on Guiding the Orientation of Foreign Investment
and the Catalog for the Guidance of Foreign Investment Industries in June, 1995, which provide that the production of sensitive materials
belongs to the restricted category of foreign-funded projects. The relevant departments of Guangdong Province and of Zhuhai City
approved the establishment of a foreign-funded sensitive materials production enterprise—- Zhuhai Zhenke Sensitive Materials Manufacturing
Co., Ltd. in October 1995 without submitting the project to the industrial competent department under the State Council for examination,
approval and record according to the stipulated procedures, and adjusted its proportion of domestic sale to export in violation of
rules in March of 1998, and thus enabled the enterprise to be established in violation of rules and operate in excess of scope. We
hereby give a circularized criticism to the relevant departments of Guangdong Province and Zhuhai City for their approving the establishment
of the foreign-funded sensitive materials production enterprise in violation of rules. The economic and trade commissions (economic
commissions), the planning commissions and the departments (bureaus) of foreign trade and economic cooperation of all provinces,
autonomous regions and municipalities directly under the Central Government and municipalities separately listed on the State plan
shall take this as a warning, and avoid the re-occurrence of similar incidents.

In order to strengthen the normative administration of foreign-funded sensitive materials production enterprises in China, and promote
the healthy development of the sensitive materials industry, we hereby give our notice regarding the relevant issues as follows:

I.

Restatement on Examining and Approving Foreign-Funded Sensitive Materials Projects

According to the Stipulated Procedures It is provided in Article 12 of the Provisions on Guiding the Orientation of Foreign Investment
(Decree No. 346 of the State Council) which were promulgated by the State Council on February 11, 2002 that, “Foreign-funded projects
shall be examined and approved, and put on record respectively by the departments of development planning and the economic and trade
departments according to the limit of authority for examination and approval; the contracts and articles of association of enterprises
with foreign investment shall be examined and approved, and put on record by the departments of foreign trade and economic cooperation.
The foreign-funded projects under the limit for restricted foreign-funded projects shall be subject to the examination and approval
of the corresponding competent departments of the people’s governments of the provinces, autonomous regions, municipalities directly
under the Central Government and municipalities separately listed on the State plan, and shall be reported to the competent departments
at the next higher level and the competent industrial departments, the power for examination and approval of this kind of projects
may not be granted to the authorities at lower levels”. It is provided in Article 13 that “With respect to the foreign-funded projects
examined and approved in violation of the present provisions, the organ of examination and approval at the next higher level shall
cancel it within 30 workdays from the day of receiving the documents for record of that project, its contract and articles of association
shall be void, the department of enterprise registration shall not register it and the customs shall not handle the procedures for
import and export for it.” It is provided in the new Catalog for the Guidance of Foreign Investment Industries that came into force
on April 1, 2002 (Decree No. 21 of the State Development Planning Commission, the State Economic and Trade Commission and the MOFTEC)
that, sensitive materials production belongs to restricted foreign-funded industries. Therefore, the examination and approval of
foreign-funded sensitive materials projects shall be strictly in compliance with the above relevant provisions.

II.

Checking up the Foreign-Funded Sensitive Materials Enterprises Established in Violation of Rules

Where a department in any region approves the establishment of foreign-funded sensitive materials production enterprises in violation
of rules, the economic and trade commission (economic commission), the planning commission, and the department (bureau) of foreign
trade and economic cooperation of the relevant province, autonomous region, municipality directly under the Central Government and
municipality separately listed on the State plan shall organize the checking-up, immediately stop the establishment of such enterprises
in violation of rules, sand order the enterprises concerned to go through the formalities of approval and record within a time limit.

III.

In accordance with Article 16 of the Provisions on Guiding the Orientation of Foreign Investment (Decree No. 346 of the State Council)
which were promulgated by the State Council on February 11, 2002, which stipulates: “With respect to the investment projects established
by overseas Chinese and the investors from Hong Kong Special Administration Region, Macao Special Administrative Region or Taiwan
Area, the present provisions shall be applicable by reference in implementation”, the sensitive materials production enterprises
invested and established in China by overseas Chinese and investors from Hong Kong, Macao or Taiwan, shall also be in compliance
with the above requirements.



 
The State Development Planning Commission, The State Economic and Trade Commission, The Ministry of Foreign Trade and
Economic Cooperation
2002-11-26

 







REGULATIONS ON THE MANAGEMENT OF FOREIGN-FUNDED URBAN PLANNING SERVICE ENTERPRISES

Regulations on the Management of Foreign-funded Urban Planning Service Enterprises

     Decree of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation,

No 116

The Regulations on the Management of Foreign-funded Urban Planning Service Enterprises, deliberated and ratified at the 65th executive
meeting of the Ministry of Construction on December 13th, 2002 and the 2nd working meeting of the minister of Foreign Trade and Economic
Cooperation on January 30th, 2003, is hereby promulgated for implementation as of May 1st, 2003.

Wang Guangtao, Minister of Construction

Shi Guangsheng, Minister of Foreign Trade and Economic Cooperation

February 13th, 2003

Regulations on the Management of

Foreign-funded Urban Planning Service Enterprises

   Article 1 Pursuant to the Law of the People’s Republic of China on Foreign-funded Enterprises , the Law of the People’s Republic of
China on Sino-foreign Equity Joint Ventures , the Law of the People’s Republic of China on Sino-foreign cooperative Joint Ventures
, and the Law of the People’s Republic of China on Urban Planning , the current Regulations is hereby formulated to expand the
scope of opening to the outside; regulate foreign companies, enterprises and other economic entities or individuals investing in
enterprises providing services to urban planning; and strengthen management of the activities of urban planning services provided
by foreign-funded urban planning service enterprises.

   Article 2 The Regulations applies to those setting up foreign-funded urban planning service enterprises within the boundary of the People’s
Republic of China and applying for the Certificate of Qualification of Foreign-funded Enterprises for Urban Planning Services
, and to the supervision and management of foreign-funded urban planning service enterprises.

   Article 3 The foreign-funded urban planning service enterprises as referred to in the current Regulations include Sino-foreign equity joint
ventures, Sino-foreign cooperative joint ventures, and ventures with exclusive foreign investment that are set up in the People’s
Republic of China in accordance with law to provide services to urban planning.

The term ‘urban planning service’ as used in the current Regulations refers to provide drawing and consulting services to urban
development plans other than general planning.

   Article 4 All foreign companies, enterprises, other economic entities or individuals engaged in urban planning services in China shall set
up Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, or ventures with exclusive foreign investment and
apply for the Certificate of Qualification of Foreign-funded Enterprises for Urban Planning Services .

Those have not been granted the Certificate of Qualification of Foreign-funded Enterprises for Urban Planning Services shall
not take up the business of urban planning services.

   Article 5 The department responsible for the management of foreign trade and economic cooperation under the State Council shall take charge
of management of establishment of foreign-funded urban planning service enterprises, while the department responsible for construction
under the State Council shall take charge of management of qualification of foreign-funded urban planning service enterprises.

The departments responsible for foreign trade and economic cooperation under the people’s governments at the provincial, autonomous
regional and municipal governments under the direct leadership of the central government shall take charge of preliminary examination
of establishment of foreign-funded urban planning service enterprises in their respective administrative areas, and departments responsible
for urban planning under people’s governments at and above the county level shall take charge of supervision and management of the
urban planning service activities carried out by foreign-funded urban planning service enterprises in their respective administrative
areas.

   Article 6 Apart from meeting requirements set in relevant Chinese laws and regulations on foreign-funded enterprises, the following requirements
shall be met for the establishment of foreign-funded urban planning service enterprises:

1. The foreign party shall be an enterprise or professional specializing in urban planning services in its resident country
or region.

2. The applicant shall own more than 20 employees specializing in urban planning, architecture, road transportation, gardening
and related disciplines, with foreign specialists accounting for no less than 25 percent of the total, and have at least one foreign
technician specializing in urban planning, architecture, road transportation, and gardening respectively.

3. The applicant shall have technical apparatus and fixed working site as stipulated by the State.

   Article 7 Those applying for establishing foreign-funded urban planning service enterprises shall apply, in accordance with law, to the
State Administration of Industry and Commerce or local administrations of industry and commerce with authorization from the State
Administration of Industry and Commerce for examination and approving the post_titles of the foreign-funded enterprises they plan to set
up.

   Article 8 After passing examination and receiving approval of the post_titles of the foreign-funded enterprises it plans to set up, the applicant
shall apply to the departments of the provincial, autonomous regional or people’s municipal government under the direct leadership
of the central government in charge of foreign trade and economic cooperation in the region where the enterprise is to be located
for the establishment. it shall submit the following documents:

1. The application for the establishment of a foreign-funded enterprise signed by the legal representative of the investing
party.

2. The feasibility study report, project proposal and plan on the establishment of the enterprise (including staffing of specialists,
plan on technical equipment, and area of the working site) produced or approved by the investing party.

3. The contract and rules of the foreign-funded enterprise signed by the legal representative of the investing party (or rules
only, in the case of an enterprise with exclusive foreign investment).

4. Notice of pre-approval on the post_title of the enterprise to be set up.

5. Certificate of legal person registration of the investing party and certificate of the credit provided by the bank of the
investing party.

6. Documents and certificates of appointment of the chairman, board members, managers, and leading engineers or technicians
to be appointed by the investing party.

7. The balance sheets and statements of loss and gain of the investing party during the latest three years as audited by a
chartered accountant or an accountant firm.

8. Certificate of registration and certificate of bank credit of the urban planning service enterprise(s) run by the foreign
investing party in its country or region.

9. Certificates of experiences and achievements of the foreign investing party in urban planning services produced by responsible
government departments or associations, societies, or notary organs in the residential country or region of the said party.

   Article 9 The department under provincial, autonomous regional or people’s municipal governments under the direct leadership of central
government in charge of foreign trade and economic cooperation shall complete preliminary examination within 30 days after receiving
an application and submit its approval to the State Council department in charge of foreign trade and economic cooperation.

   Article 10 The State Council department in charge of foreign trade and economic cooperation shall submit the application documents that have
passed preliminary examination and approval to the State Council department in charge of construction for soliciting the comments
within 10 days. The State Council department in charge of construction shall put forward its opinion within 30 days after receiving
the application documents. Within 30 days after receiving the written opinion of the State Council department in charge of construction,
the State Council department in charge of foreign trade and economic cooperation shall make a decision of approval or disapproval.
In the case of approval, a certificate of approval shall be issued; and in the case of disapproval, a written explanation shall be
given.

   Article 11 After receiving the Certificate of Approval of Foreign-funded Enterprise, the applicant shall register with an administration
of industry and commerce in accordance with law to get a business license.

   Article 12 After receiving a legal person business license, the applicant shall apply to the State Council department in charge of construction
for the Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises .

   Article 13 The following documents shall be supplied for application for the Certificate of Qualification for Urban Planning Services for
Foreign-funded Enterprises :

1. Form of Application for the Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises ;

2. Certificate of Approval of Foreign-funded Enterprise;

3. Business license for enterprise legal person;

4. Contract of employment of technicians and specialists and certificates of technical qualifications of these people put on
file in labour and personnel departments;

5. Documents about the technical equipment of the enterprise.

   Article 14 The foreign-funded urban planning service enterprise shall report, within 30 days after receiving the Certificate of Qualification
for Urban Planning Services for Foreign-funded Enterprises , to the urban planning administration in the city or county of its registered
for the record.

   Article 15 The foreign-funded urban planning service enterprise that contracts for urban planning services in areas other than that of its
registration shall report to the urban planning administrations of these areas for the record.

   Article 16 All the documents submitted by the applicant shall be written in Chinese. If any document of certification is written in a foreign
language, a Chinese version shall be supplied.

   Article 17 Foreign-funded urban planning service enterprises shall abide themselves by pertinent Chinese laws, regulations, and technical
standards and norms when providing urban planning services.

   Article 18 The foreign technicians employed by foreign-funded urban planning service enterprises shall stay in China for a total length of
no less than 6 months per person a year.

   Article 19 The State Council department in charge of construction shall carry out annual checks to the foreign-funded urban planning service
enterprises that have received the Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises . Those
found unqualified shall have their Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises revoked.

   Article 20 Chinese units that have received the Certificate of Qualification for Compilation of Urban Planning shall hand in the Certificate
when they are restructured into Sino-foreign equity or cooperative joint ventures specializing in urban planning services.

   Article 21 Foreign-funded urban planning service enterprises shall hand in their Certificate of Qualification for Urban Planning Services
for Foreign-funded Enterprises when they stop operations or are disbanded or terminated.

   Article 22 It is strictly forbidden to entrust any businesses of urban planning services to foreign-funded enterprises that have not granted
the Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises .

It is strictly forbidden to entrust any businesses of service to general urban planning to foreign-funded enterprises.

   Article 23 Those that contract for urban planning services without the Certificate of Qualification for Urban Planning Services for Foreign-funded
Enterprises shall be ordered by the construction administrations of people’s governments at or above the county level to stop their
illegal activities, together with a penalty above RMB10,000 yuan and below RMB30,000 yuan. Their achievements shall not be acknowledged
by any department.

   Article 24 Those foreign-funded urban planning service enterprises that provide services to compilation of general urban planning in violation
of the current Regulations shall be ordered by the construction administrations of people’s government at or above the county level
to mend themselves. Those involved in severe cases shall have their Certificate of Qualification for Urban Planning Services for
Foreign-funded Enterprises withdrawn by the original issuer.

Those foreign-funded urban planning service enterprises that obtain the Certificate of Qualification for Urban Planning Services
for Foreign-funded Enterprises through fraud and deception shall have their Certificate withdrawn by the issuer.

After withdrawing a Certificate, the issuer shall inform the registration department concerned of the case. The enterprise whose
certificate has been withdrawn shall apply to the original department of registration for cancellation of its registration. Those
that refuse to go through cancellation formalities shall be handled by registration departments in accordance with law.

   Article 25 Those that entrust urban planning services or general urban planning services to foreign-funded enterprises that have not got
the Certificate of Qualification for Urban Planning Services for Foreign-funded Enterprises in violation of the current Regulations
shall be corrected by their senior departments, with administrative responsibilities to be affixed upon the person responsible in
accordance with law. If a crime is committed, criminal responsibilities shall be found out in accordance with law.

   Article 26 The current Regulations shall be interpreted by the State Council department in charge of construction and the State Council department
in charge of foreign trade and economic cooperation according to their respective functions.

   Article 27 Investors from the Hong Kong Special Administrative Zone, the Macao Special Administrative Zone, and Taiwan area coming to run
urban planning service enterprises on the mainland shall be handled with reference to the current Regulations.

   Article 28 The current Regulations shall take effect as of May 1, 2003.

To be sent to: The Law Committee of the National People’s Congress, the Law Office of the State Council, the Editorial Office
of the Gazette of the State Council, the construction commissions and bureaus of foreign trade and economic cooperation of people’s
governments at the provincial, autonomous regional and municipal level, the construction commission of cities as independent entries
in State plans and budgets, ministries and commissions of the State Council, and leaders, bureaus, and subsidiary institutions of
the Ministry of Construction.

Secretariat of the General Office of the Ministry of Construction

Printed and issued on February 20th, 2003

    






REPLY OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE ISSUE OF WHETHER THE BRANCH OF A ENTERPRISE WITH FOREIGN INVESTMENT SHALL BE PUNISHED FOR ITS BUSINESS OPERATIONS WITHOUT GOING THROUGH THE EXTENSION PROCEDURES AFTER THE OPERATIONAL PERIOD EXPIRES

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on the Issue of Whether the Branch of A Enterprise with Foreign Investment
Shall be Punished for its Business Operations without Going through the Extension Procedures after the Operational Period Expires

GongShangWaiQiZi [2002] No.10

January 18, 2002

The Administration for Industry and Commerce of Inner Mongolia Autonomous Region:

The “Request for Instruction on Whether the Branch of A Enterprise with Foreign Investment Shall Be Punished for Its Business Operations
without Going through the Extension Procedures after the Operational Period Expires” by the Industrial and Commercial Bureau of Baotou
City in your region (BaoGongShangFa [2001] No. 489 [2001]) has been received. Upon study of the issue, we hereby give the reply as
follows:

I.

Operational period is one of the registration items stated in the new-version business license of enterprises with foreign investment.
An enterprise with foreign investment shall go through the modification or cancellation registration in accordance with the provisions
once its operational period has expired.

II.

On the verification of the operational period of the branch of an enterprise with foreign investment, the validity period of the administrative
permit on the matters for approval, which is involved in the scope of business, shall be considered, unless otherwise provided for
by laws, regulations, rules or the regulatory documents by the State Administration for Industry and Commerce. The operational period
of the branch shall be determined within that of the enterprise with foreign investment upon the period applied for by the enterprise.

III.

Any branch of a company with foreign investment that continues business operations without going through the modification or cancellation
registration after the expiry of its operational period verified in compliance with the above principle, shall be punished in accordance
with Article 63 of the “Regulations on the Administration of Registration of Companies”.

For the violators whose operational period is directly verified by the registration organ to be one year due to administrative habits,
they shall generally be imposed upon a criticism, warning and be ordered to mend up in consideration of the specific situation and
the extent of the actual harm to the society. If the case is serious, they shall be punished in accordance with the preceding paragraph.



 
The State Administration for Industry and Commerce
2002-01-18

 







CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING THE OPINIONS ON HANDLING DISPUTES OVER STOCK EQUITY OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration for Industry and Commerce

Circular of the State Administration for Industry and Commerce Concerning the Opinions on Handling Disputes over Stock Equity of Enterprises
with Foreign Investment

GongShangWaiQiZi [2002] No.38

February 20, 2002

The administrations for industry and commerce of all provinces, autonomous regions and municipalities directly under the Central Government
and the administrations for industry and commerce of the authorized cities:

Recently, the State Administration for Industry and Commerce has continually received complaints and reports on disputes over stock
equity of enterprises with foreign investment. The opinions on handling the relevant issues are hereby put forward as follows:

1.

Based on the existing laws and regulations, an enterprise with foreign investment shall be confirmed according to the status of its
investors, source of fund, the proportion of the foreign fund and the industry policies, and shall be established according to legal
procedures.

2.

Where a dispute over the investment ownership of enterprise with foreign investment arises between the relevant parties and reconfirmation
is needed, the legal procedures for examination and approval and the legal procedures for examination and approval for alteration
shall be gone through, according to the actual contribution of investment and upon the unanimous agreement of the parties or after
the judicial or arbitration organs confirm the ownership according to law.

3.

The relevant parties that provide false documents and cheat to obtain the registration during the process of examination, approval
and registration shall bear the corresponding legal liabilities.



 
The State Administration for Industry and Commerce
2002-02-20

 







IMPORT AND EXPORT COMMODITY INSPECTION LAW

Law of the People’s Republic of China on Import and Export Commodity Inspection

(Adopted at the 6th Meeting of the Standing Committee of the Seventh National People’s Congress on February 21, 1989
and promulgated by Order No. 14 of the President of the People’s Republic of China on February 21, 1989, amended in accordance with
the Decision on Amending the Law of the People’s Republic of China on Import and Export Commodity Inspection adopted at the 27th
Meeting of the Standing Committee of the Ninth National People’s Congress on April 28, 2002.) 

Contents 

Chapter  I   General Provisions 

Chapter  II  Inspection of Import Commodities 

Chapter  III Inspection of Export Commodities 

Chapter  IV  Supervision 

Chapter  V   Legal Responsibility 

Chapter  VI  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted with a view to improving the inspection of import and export commodities, regulating inspection
of import and export commodity, protecting public interests and the legitimate rights and interests of the parties involved in foreign
trade, and promoting the smooth development of China’s economic and trade relations with other countries. 

Article 2  The State Council shall establish an administration for import and export commodity inspection (hereinafter referred
to as the State administration for commodity inspection, in short), which shall be in charge of the inspection of import and export
commodities throughout the country. The local import and export commodity inspection authorities set up by the State administration
for commodity inspection (hereinafter referred to as the commodity inspection authorities, in short) shall be responsible for the
inspection of import and export commodities within the regions under their jurisdiction. 

Article 3  The commodity inspection authorities and the inspection bodies permitted by the State administration for commodity
inspection shall, in accordance with law, perform the inspection of import and export commodities. 

Article 4  The import and export commodities shall be inspected in adherence to the principles of protecting human health and
safety, animal and plant life and health, and the environment; preventing deceptive practices and preserving security of the State.
The State administration for commodity inspection shall compile and readjust the catalogue of import and export commodities subject
to compulsory inspection (hereinafter referred to as the Catalogue, in short) and publish it for implementation.  

Article 5  The inspection of the import and export commodities which are listed in the Catalogue shall be conducted by the commodity
inspection authorities. 

No import commodities specified in the preceding paragraph that are not inspected may be said or used; and no commodities specified
in the preceding paragraph that fail to pass the inspection may be exported. 

Among the import and export commodities specified in the first paragraph of this Article, those that meet the requirements for exemption
from inspection, as prescribed by the State, may be exempted from inspection, if the consignee or consignor files an application
and the application is approved by the State administration for commodity inspection after examination. 

Article 6  By compulsory inspection of import and export commodities is meant the conformity assessment as to whether the import
and export commodities included by decision in the Catalogue meet the compulsory requirements of the technical regulations of the
State. 

The procedures for conformity assessment include: sampling, testing and inspection; evaluation, verification and assurance of conformity;
and registration, accreditation and approval as well as their combinations. 

 

Article 7  The import and export commodities which are listed in the Catalogue shall be inspected in accordance with the compulsory
requirements of the technical regulations of the State. With regard to those commodities for which compulsory requirements of the
technical regulations of the State have not yet been formulated, such requirements shall be formulated in time according to law.
Before their formulation, those commodities may be inspected with reference to the relevant foreign standards designated by the State
administration for commodity inspection. 

Article 8  The inspection bodies permitted by the State administration for commodity inspection may provide inspection and survey
services in respect of the import and export commodities as entrusted by parties involved in foreign trade or by foreign inspection
bodies. 

Article 9  Import and export commodities or items subject to inspection by other inspection bodies, as provided for by laws
or administrative rules and regulations, shall be inspected in accordance with the provisions of relevant laws or administrative
rules and regulations. 

Article 10  The State administration for commodity inspection and the commodity inspection authorities shall, without delay,
collect information on the inspection of import and export commodities and make it available to the relevant quarters.  

The staff members of the State administration for commodity inspection and the commodity inspection authorities shall have the obligation
to keep the commercial secrets of which they become aware in the course of fulfilling their duties of inspection of import and export
commodities. 

Chapter II 

Inspection of Import Commodities 

Article 11  For import commodities which are subject to inspection by the commodity inspection authorities, as provided for
by this Law, the consignee or his agent shall apply for inspection to the commodity inspection authorities located at the place he
makes Customs declarations. The Customs shall check and release the commodities on the strength of the Documents for Customs Clearance
issued by the commodity inspection authorities. 

Article 12  For import commodities which are subject to inspection by the commodity inspection authorities, as provided for
by this Law, the consignee or his agent shall, in the places and within the time limit specified by the commodity inspection authorities,
accept inspection of the import commodities conducted by the commodity inspection authorities. The commodity inspection authorities
shall complete the inspection and issue an inspection certificate within the time limit specified uniformly by the State administration
for commodity inspection. 

Article 13  Where the consignee of the import commodities other than those that are subject to inspection by the commodity inspection
authorities, as provided for by this Law, finds that the import commodities do not meet the relevant quality requirements, are damaged
or are short on weight or quantity, he shall apply to the commodity inspection authorities for inspection and the issuance of an
inspection certificate if such a certificate is necessary for claiming compensation,. 

Article 14  For important import commodities and complete sets of equipment in large size, the consignee shall, in accordance
with the terms agreed upon in foreign trade contracts, conduct initial inspection or initial supervision over manufacturing or loading
in the exporting country before shipment, over which the relevant competent departments shall tighten their supervision. The commodity
inspection authorities may, when necessary, dispatch inspection officials to take part in such inspection and supervision. 

Chapter III 

Inspection of Export Commodities 

Article 15  For export commodities which are subject to inspection by the commodity inspection authorities, as provided for
by this Law, the consigner or his agent shall, in the places and within the time limit specified by the commodity inspection authorities,
apply for inspection to the commodity inspection authorities. The commodity inspection authorities shall complete the inspection
and issue an inspection certificate within the time limit specified uniformly by the State administration for commodity inspection.
 

For the export commodities that are subject to inspection, as provided for by this Law, the Customs shall check and release the commodities
on the strength of the Documents for Customs Clearance issued by the commodity inspection authorities. 

Article 16  Export commodities which have passed the inspection conducted by the commodity inspection authorities and for which
inspection certificates have been issued shall be declared for export within the time limit specified by the commodity inspection
authorities. Re-application for inspection is necessary when the specified time limit expires. 

Article 17  An enterprise manufacturing packagings for dangerous export commodities shall apply to the commodity inspection
authorities for a test of the performance of such packagings. An enterprise producing dangerous export commodities shall apply to
the same authorities for a test of the use of packagings. No permission shall be granted for the export of dangerous commodities
kept in packagings which have not passed the test. 

Article 18  For vessel holds or containers used for carrying perishable foods, the carrier or the exporter using the vessel
holds or containers shall apply for inspection before loading. No permission shall be granted for loading and shipment until the
vessel holds or containers have passed the inspection. 

Chapter IV 

Supervision 

Article 19  For the import and export commodities other than those that are subject to inspection by the commodity inspection
authorities, as provided by this Law, the commodity inspection authorities may conduct random inspection in accordance with State
regulations.  

The State administration for commodity inspection may publicize the results of random inspection or notify the relevant departments
of the random inspection. 

Article 20  For the convenience of foreign trade, the commodity inspection authorities may, in accordance with State regulations,
conduct quality supervision and inspection in respect of the export commodities which are listed in the Catalogue, before they leave
the factory. 

Article 21  The agent going through the formalities of applying for inspection on behalf of the consignee of import commodities
or consigner of export commodities shall register with the commodity inspection authorities. When going through the formalities of
applying for inspection, the agent shall submit his letter of authorization to the commodity inspection authorities. 

Article 22  The State administration for commodity inspection may, in accordance with the relevant regulations of the State
and after examining their qualifications, permit the qualified inspection bodies at home and abroad to undertake the inspection and
survey of import and export commodities entrusted to them. 

Article 23  The State administration for commodity inspection and the commodity inspection authorities shall, in accordance
with law, exercise supervision over the inspection and survey of the import and export commodity conducted by the inspection bodies
permitted by the State administration for commodity inspection and may conduct random inspection of the commodities which have been
inspected by such bodies. 

Article 24  The State administration for commodity inspection shall, in adherence to the unified certification system of the
State, have the relevant import and export commodities supervised through certification. 

Article 25  The commodity inspection authorities may, on the basis of the agreements signed between the State administration
for commodity inspection and the foreign bodies concerned or upon entrustment by the foreign bodies concerned, undertake quality
certification of import and export commodities, and permit the use of quality certification marks on the import and export commodities
qualified. 

Article 26  The commodity inspection authorities shall supervise, through inspection of certificates, over the import and export
commodities which are subject to the permit system, as provided for by this Law, examining the certificates and checking whether
they conform to the commodities concerned.  

Article 27  The commodity inspection authorities may, when necessary, place commodity inspection marks or sealing on the import
and export commodities which have passed the inspection. 

Article 28  Where an applicant for the inspection of import and export commodities disagrees with the results of inspection
presented by the commodity inspection authorities, he may apply for re-inspection to the same authorities, or to those at the next
higher level or up to the State administration for commodity inspection. The commodity inspection authorities or the State administration
for commodity inspection which accepts the application for re-inspection shall draw a timely conclusion after re-inspection.  

Article 29  Where a party is not satisfied with the conclusion drawn after re-inspection by the commodity inspection authorities
or the State administration for commodity inspection, or is not satisfied with the decision on punishment made by the commodity inspection
authorities, he may, in accordance with law, apply for administrative reconsideration or bring a suit in a People’s Court according
to law. 

Article 30  The State administration for commodity inspection and the commodity inspection authorities shall, in the course
of performing their duties, abide by laws, safeguard the interests of the State, execute the laws strictly in pursuant to their statutory
functions and powers and the statutory procedures, and accept supervision.  

The State administration for commodity inspection and the commodity inspection authorities shall, on the basis the requirements for
performing their duties according to law, strengthen the building of their contingents and enable their staff members to possess
good political and professional qualifications. The staff members engaged in commodity inspection authorities shall receive professional
training and appraisal regularly, and only those who pass the appraisal may be assigned to their duties. 

The staff members engaged in commodity inspection shall devote themselves to their duties, offer services with civility and observe
professional ethics, and refrain from abusing their powers and seeking personal gain. 

Article 31  The State administration for commodity inspection and the commodity inspection authorities shall establish a sound
system for internal supervision, and conduct supervision and inspection on the execution of laws by their staff members.  

The limits of duties and powers of the key posts for accepting applications for inspection, conducting inspection and issuing certificates
to release commodities shall be explicitly defined, so that they are separate from each other and are mutually conditioned.  

Article 32  Any unit and individual shall have the right to accuse and inform against the violations of laws and rules of discipline
committed by the State administration for commodity inspection, the commodity inspection authorities and their staff members. The
departments receiving the accusations and information shall, in accordance with law and the division of duties, investigates and
deal with them without delay, and shall keep secret for the accusers and informers.  

     

Chapter V 

Legal Responsibility 

Article 33  Where a person, in violation of the provisions of this Law, sells or uses the import commodities subject to inspection
by the commodity inspection authorities, for the inspection of which he fails to file an application and which have not undergone
inspection, or exports the commodities for export subject to inspection by the commodity inspection authorities, for the inspection
of which he fails to file an application and which fail to pass the inspection, his unlawful gains derived therefrom shall be confiscated
by the commodity inspection authorities and, in addition, be fined not less than five percent but not more than twenty percent of
the value of the commodities; and if the violation constitutes a crime, he shall be investigated for criminal responsibility according
to law. 

Article 34  Where a unit, in violation of the provisions of this Law and without permission by the State administration for
commodity inspection, conduct inspection and survey of import and export commodities, the commodity inspection authorities shall
order it to desist  from the illegal operation; confiscate its unlawful gains derived therefrom and, in addition, impose on
it a fine of not less than the amount of, but not more than three times the amount of, the unlawful gains. 

Article 35  Where a person imports or exports commodities which are adulterated or mixed with fake commodities, spurious commodities
as genuine ones or defective commodities as good ones, or unqualified commodities as qualified ones, the commodity inspection authorities
shall order him to desist from importing or exporting commodities, confiscate his unlawful gains derived therefrom and, in addition,
impose on him a fine of not less than fifty percent of, but not more than three times the amount of, the value of the commodities;
and if the violation constitutes a crime, he shall be investigated for criminal responsibility according to law. 

Article 36  Where a person fabricates, adulterates, deals in or steals commodity inspection certificates or documents, seals
or stamps, marks, sealing or quality certification marks, he shall be investigated for criminal responsibility according to law;
and if the violation is not serious enough for criminal punishment, the commodity inspection authorities shall order him to rectify,
confiscate his unlawful gains derived therefrom and, in addition, impose on him a fine of not more than equivalent of commodities
value.  

Article 37  Where a staff member of the State administration for commodity inspection or the commodity inspection authorities,
in violation of the provisions of this Law, divulges the commercial secrets of which he is aware, he shall be given an administrative
sanction according to law; his unlawful gains, if any, shall be confiscated; and if the violation constitutes a crime, he shall be
prosecuted for criminal responsibility according to law. 

Article 38  Where a staff member of the State administration for commodity inspection or the commodity inspection authorities
abuses his power, intentionally creates difficulties, engages in malpractices for personal gain, fabricates inspection results or
neglects his duty and delays the inspection of commodities and the issuance of certificates, he shall be given an administrative
sanction according to law; and if the violation constitutes a crime, he shall be investigated for criminal responsibility according
to law. 

Chapter VI 

Supplementary Provisions 

Article 39  The commodity inspection authorities and other inspection bodies that conduct inspection or providing inspection
and survey services in accordance with the provisions of this Law shall collect fees according to relevant State regulations. 

Article 40  Regulations for the implementation of this Law shall be formulated by the State Council. 

Article 41  This Law shall go into effect as of August 1, 1989.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







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...