Facebook
Home Divorce Page 9

Divorce

ANNOUNCEMENT OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON THE PROMULGATION OF THE INTERIM PROVISIONS ON FOREIGN EXCHANGE ADMINISTRATION OF DOMESTIC SECURITIES INVESTMENT BY QUALIFIED FOREIGN INSTITUTIONAL INVESTORS

The State Administration of Foreign Exchange

Announcement of the State Administration of Foreign Exchange (SAFE) on the Promulgation of the Interim Provisions on Foreign Exchange
Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors

[2002] No.2

November 28, 2002

In compliance with the Interim Measures on the Administration of Domestic Securities Investment by Qualified Foreign Institutional
Investors promulgated as Decree No. 12 by the China Securities Regulatory Commission and the People’s Bank of China, the State Administration
of Foreign Exchange has formulated the Interim Provisions on Foreign Exchange Administration of Domestic Securities Investment by
Qualified Foreign Institutional Investors, which is hereby promulgated and shall take effect as from December 1, 2002.

Attachment: Interim Provisions on Foreign Exchange Administration of Domestic Securities Investment by Qualified Foreign Institutional
Investors Attachment:Interim Provisions on Foreign Exchange Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors

Chapter I General Provisions

Article 1

Pursuant to the Regulations on the Exchange System of the People’s Republic of China and the Interim Measures on the Administration
of Domestic Securities Investment by Qualified Foreign Institutional Investors (hereinafter referred to as Interim Measures), the
Provisions is enacted to regulate the investment activities of the qualified foreign institutional investors (hereinafter referred
to as QFIIs) in the PRC securities market and to maintain the stability of China’s foreign exchange market and balance of payments.

Article 2

A QFII shall entrust its custodian to go through all procedures stipulated in the Provisions on its behalf.

Article 3

A QFII and its custodian shall comply with relevant regulations and rules on foreign exchange administration in China.

Article 4

The State Administration of Foreign Exchange (hereinafter referred to as the SAFE) shall implement according to law the foreign exchange
administration of domestic securities investment by QFIIs.

Chapter II Administration of the Custodian

Article 5

In addition to the documents prescribed in Article 14 of the Interim Measures, a domestic commercial bank applying for the qualification
as a QFII custodian shall submit to the SAFE a report on the management of its foreign exchange business for the previous 3 years
and other documents required by the SAFE.

Article 6

A QFII custodian shall fulfill the following responsibilities with regard to foreign exchange administration:

1.

Handle QFII-related foreign exchange settlement and sale, receipt and payment, and RMB settlement business;

2.

Supervise the investment operations of the QFII, and report in a timely manner to the SAFE if it discovers that the QFII’s investment
instructions violate foreign exchange regulations;

3.

Open a special RMB account for the QFII, and record accurately in the QFII’s foreign exchange registration certificate (hereinafter
referred to as Foreign Exchange Registration Certificate) any remittance of investment principal or proceeds by the QFII in or out
of China;

4.

Report to the SAFE on any remittance of investment principal or proceeds by a QFII in or out of China within two business days after
the remittance is made;

5.

Report to the SAFE on the receipts to and payments from the special RMB account of the QFII and the investment return or loss of such
account for the previous month within the first five business days of each month;

6.

Prepare an annual financial report on the domestic securities investments of the QFII for the preceding year and submit it to the
SAFE after it has been audited by a Chinese certified public accountant, within the first three months of each fiscal year;

7.

Preserve such materials as records of the remittance of funds in or out of China, conversion, receipts and payments of Renminbi funds
of the QFII for no less than fifteen years;

8.

Prepare statistical report on the balance of payments according to relevant foreign exchange regulations; and

9.

Other responsibilities stipulated by the SAFE according to the principles of prudential supervision.

Chapter III Administration of the Investment Quota

Article 7

In addition to documents prescribed in the Article 8 of the Interim Measures, the QFII applying for investment quota shall submit
a photocopy of the Securities Investment License issued by the CSRC along with other documents required by the SAFE.

Article 8

The investment quota in Renminbi applied for by a single QFII shall be no less than the equivalent of USD50 million and no more than
the equivalent of USD800 million.

The SAFE may adjust the above ceiling and floor level in accordance with the capital market conditions and balance of payments.

Article 9

A QFII that fails to remit in the full amount of approved principal within three months after obtaining the Foreign Exchange Registration
Certificate and therefore needs to make up the difference between the actually remitted amount and the approved investment quota,
or needs to make another inward remittance of investment principal after part of the principal has been remitted abroad, or needs
to increase its investment quota, shall apply to the SAFE with the following documents:

1.

A written application (including proposed investment quota, investment plan, etc.);

2.

The Foreign Exchange Registration Certificate;

3.

An explanation of the source of funds and a commitment letter of no repatriation of investment during the approval period;

4.

A power of attorney issued by the applicant;

5.

A report on the applicant’s domestic securities investment activities; and

6.

Other documents required by the SAFE

Within seven business days after receipt of the complete set of application documents, the SAFE will decide whether to approve or
not to approve the application. If approved, the SAFE will issue an approval document, and send it to the applicant through its custodian;
if not, a written notification thereof shall be sent to the applicant through its custodian.

Article 10

The lockup period of a QFII’s investment funds shall be calculated from the date when its first inward remittance of investment principal
is made.

Article 11

A QFII that has remitted in principal for more than three months but less than one year, may, with the approvals of the CSRC and the
SAFE, transfer its investment quota to other QFIIs or other applicants that qualify under Article 6 of the Interim Measures.

Article 12

In the event that a QFII transfers all or part of its investment quota to another QFII, the transferor and the transferee shall apply
to the SAFE for the transfer with the following documents:

1.

A written transfer application;

2.

A transfer agreement;

3.

The Foreign Exchange Registration Certificate; and

4.

Other documents required by the SAFE.

After consulting with the CSRC, the SAFE shall make a decision on whether to approve or not to approve the application within seven
business days after receipt of the complete application documents from both the transferor and the transferee. If approved, an approval
document shall be issued to the transferor and to the transferee through their respective custodians; if not, a written notification
thereof shall be sent to them in the same way.

Article 13

If the SAFE approves a QFII to transfer its entire investment quota to another QFII, it shall adjust the investment quota of the transferee
accordingly. Within five business days after the completion of the transfer, the transferor shall close its special RMB account at
its custodian’s place of business and return to the SAFE its Foreign Exchange Registration Certificate.

If the SAFE approves a QFII to transfer part of its investment quota to another QFII, it shall adjust the investment quotas of the
transferor and of the transferee accordingly.

Article 14

In the event that a QFII needs to transfer all or part of its investment quota to another applicant that qualify under Article 6
of the Interim Measures, the transferee shall obtain the securities investment license from the CSRC and the investment quota from
the SAFE before it can apply for the transfer according to Articles 12 and 13 of the Provisions.

Chapter IV Administration of the Account

Article 15

With the approval of the SAFE, a QFII shall open only one special RMB account at the place of business of its custodian.

For opening the special RMB account, the QFII shall apply to the SAFE with the following documents:

1.

A written application for opening a special RMB account;

2.

The Foreign Exchange Registration Certificate;

3.

The official custodianship agreement signed with its custodian;

4.

A written commitment by the custodian to supervise the use of funds in the special RMB account; and

5.

Other materials required by the SAFE.

The SAFE shall issue an approval document within five business days after the receipt of the complete application documents. The custodian
may open a special RMB account for the QFII with the approval document, and report relevant information to the SAFE for record within
five business days after the opening of the account.

Article 16

The receipts and payments of the special RMB account of the QFII shall comply with Article 24 of the Interim Measures. The funds
in that account shall not be used for other purposes.

Article 17

The QFII shall close its special RMB account at the place of business of the custodian and return the Foreign Exchange Registration
Certificate to the SAFE in any of the following circumstances:

1.

All of the principal and proceeds have been remitted abroad;

2.

All of the investment quota has been transferred;

3.

The legal entity has been dissolved or entered into bankruptcy and completed liquidation procedures;

4.

Its assets have been taken over by a trustee;

5.

The securities investment license has become invalid automatically or has been returned to the CSRC; and

6.

Other circumstances stipulated by the SAFE.

Chapter V Administration of Remittance

Article 18

If a QFII needs to remit in in a single day an amount of investment principal that equals or exceeds the equivalent of USD50 million,
it shall inform the SAFE three business days before the remittance.

The SAFE may, in accordance with the conditions of the balance of payments, suggest that the QFII adjust its schedule for inward remittance
of principal within the validity period of its investment quota.

Article 19

If the principal remitted in is in freely convertible currencies other than the US dollar, the exchange rates shall be calculated
with reference to the base rates published by the PBC on the day of the remittance or the middle rate quoted by the custodian on
the day of the remittance.

Article 20

A QFII that needs to remit its principal abroad shall apply to the SAFE with the following documents five business days in advance:

1.

A written application for the repatriation;

2.

The Foreign Exchange Registration Certificate; and

3.

Other documents required by the SAFE.

Within five business days after receiving the complete application documents, the SAFE shall issue an approval document if it approves
such a remittance, and shall reduce the investment quota of the QFII accordingly. The custodian shall go through the procedures of
purchase of foreign exchange and remittance of the principal for the QFII with the approval document.

Article 21

If a QFII needs to purchase foreign exchange in order to repatriate its realized after-tax gains that has been audited by a Chinese
certified public accountant, it shall submit, in addition to the documents prescribed in Article 29 of the Interim Measures, its
Foreign Exchange Registration Certificate and other documents required by the SAFE.

Within fifteen business days after the receipt of the complete application documents, the SAFE shall issue an approval document if
it approves the remittance. The custodian shall go through the procedures of purchase of foreign exchange and repatriation of gains
for the QFII with the approval document.

The fiscal year for the calculation of a QFII’s realized gains shall comply with the Chinese fiscal year.

Chapter VI Supervision and Administration

Article 22

The SAFE shall exercise annual review over the Foreign Exchange Registration Certificate held by the QFII.

The annual review shall be conducted from April 1 to April 30 each year. The main contents of the annual review shall include:

1.

The receipt and payment of the special RMB account;

2.

The inward/outward remittances by the QFII;

3.

The foreign exchange sale, purchase and payment of the QFII; and

4.

The QFII’s compliance with relevant foreign exchange regulations.

Article 23

During the annual review, the QFII shall submit to the SAFE the following documents:

1.

A report on the investment activities by the QFII for the previous year;

2.

An annual financial statement of the QFII’s domestic securities investment for the previous year as prepared by its custodian and
audited by a Chinese certified public accountant;

3.

The Foreign Exchange Registration Certificate; and

4.

Other documents required by the SAFE.

The SAFE shall inform the PBC and the CSRC of the results of the annual review of the Foreign Exchange Registration Certificate.

Article 24

If the SAFE discovers any of the following situations on the part of the QFII during the annual review, the SAFE shall impose punishment
on the QFII in accordance with the Provisions. If the QFII does not redress the situation or refuses to execute the punishment before
the deadline, its Foreign Exchange Registration Certificate shall not pass the annual review:

1.

The inward remittance of principal exceeds the investment quota approved by the SAFE, or is made after the investment quota has expired;

2.

Outward remittance of principal or proceeds has been made without the SAFE’s approval;

3.

The receipts and payments of the special RMB account go beyond the scope stipulated in Article 24 of the Interim Measures; and

4.

The QFII has violated China’s laws or regulations or other relevant provisions.

The SAFE shall consult with the PBC and the CSRC to decide on a funds-exit plan for the QFII whose Foreign Exchange Registration Certificate
has not passed the annual review.

Article 25

The SAFE may conduct on-site inspections on QFIIs, custodians, securities companies, stock exchanges, and securities registration
and settlement institutions. The inspected shall accept the inspection and be cooperative during the inspection.

The SAFE shall inform the PBC and the CSRC of the results of on-site inspections.

Article 26

If the inward remittance of principal by the QFII exceeds the investment quota approved by the SAFE, or is made after the investment
quota has expired, or if its custodian handles inward remittance of principal for the QFII that exceeds the investment quota approved
by the SAFE, or is made after the investment quota has expired, the SAFE shall give a warning to the QFII or its custodian, require
it to redress the situation within a specified period of time, and to impose on it a fine of no more than RMB30,000.

Article 27

If a QFII has remitted abroad principal or proceeds without the SAFE’s approval, or if a custodian has gone through the procedures
of outward remittance of principal or gains for a QFII without the SAFE’s approval, the SAFE shall command it to redress the situation,
and impose on it a fine in Renminbi of 30 percent to five times of the evaded amount.

Article 28

If a QFII or a custodian has opened a special RMB account without the SAFE’s approval, or has opened several special RMB accounts,
or has used the special RMB account beyond the scope prescribed in Article 24 of the Interim Measures, the SAFE shall order it to
correct, circulate a notice of criticism, and impose on it a fine of no less than RMB 50,000 and no more than RMB300,000.

Article 29

If a custodian has failed to submit to the SAFE reports or relevant materials as required, the SAFE shall order it to correct, circulate
a notice of criticism, and impose on it a fine of no less than RMB50,000 and no more than RMB300,000.

Article 30

If a custodian refuses to correct its illegal behavior, or the illegal behavior is a serious one, its qualification as custodian shall
be rescinded by a joint decision of the SAFE, the PBC and the CSRC.

Article 31

A QFII or custodian that has violated other foreign exchange regulations shall be punished by the SAFE in accordance with relevant
foreign exchange regulations.

Chapter VII Supplementary Provisions

Article 32

All documentation and materials stipulated in the Provisions shall be prepared in Chinese. If both English and Chinese versions are
available, the Chinese version shall prevail.

Article 33

The SAFE shall be responsible for the interpretation of the Provisions.

Article 34

The Provisions shall enter into force as of December 1, 2002.



 
The State Administration of Foreign Exchange
2002-11-28

 






CIRCULAR OF MINISTRY OF CONSTRUCTION CONCERNING THE ISSUE THAT ENTERPRISES WITH FOREIGN INVESTMENT APPLY FOR CITY PLANNING SERVICE QUALIFICATION CERTIFICATE

The Ministry of Construction

Circular of Ministry of Construction Concerning the Issue that Enterprises with Foreign Investment Apply for City Planning Service
Qualification Certificate

JianGui [2003] No.94

May 9, 2003

Construction offices of provinces and autonomous regions and planning bureaus (planning commissions) of municipalities directly under
the Central Government:

In order to implement the Provisions on Administration of Foreign-Invested City Planning Service Enterprises (hereinafter referred
to as Provisions), it is hereby announced as follows concerning the issue that enterprises with foreign investment apply for City
Planning Service Qualification Certificate:

I.

Technical equipment and work site

The enterprises with foreign investment applying for City Planning Service Qualification Certificate are supposed to meet the following
requirement in terms of technical equipment and work site:

(I)

having a certain number of computers, each professional technician should have one computer.

(II)

having digital AO or scanners, AO plotting instruments, color printers with high resolution ratio;

(III)

possessing CAD or GIS software;

(IV)

the construction area of per capita work site is no less than 10 square meters.

II.

Application materials of enterprises with foreign investment

Enterprises with foreign investment should provide original application materials and two copies. Original materials will be returned
to applicants after checked with copies by material receiving organs.

Professional technology proving materials refer to diplomas, technical post post_title certificates or certificated city planner qualification
certificates of employed Chinese main land technicians; diplomas of employed foreign technicians and certifying documents issued
by the competent departments of the governments of the countries or regions foreign technicians live in or industry associations,
academic institutions or notary offices to prove their experiences of taking up city planning and their achievements.

Enterprise technical equipment materials refer to allocation instruction of technical equipment and purchase credence.

The application form of City Planning Service Qualification Certificate for Enterprises with Foreign Investment can be obtained from
construction offices of the provinces or autonomous regions or planning bureaus (planning commissions) of municipalities directly
under the Central Government where they registered in advance.

III.

The procedure of applying for City Planning Service Qualification Certificate

In order to make it easy for foreign enterprises to apply for City Planning Service Qualification Certificate and strengthen the supervision
and administration to city planning activities of local foreign-invested city planning enterprises conducted by construction offices
of the provinces and autonomous regions and planning bureaus (planning commissions) of municipalities directly under the Central
Government, enterprises with foreign investment should submit the application materials stipulated by Article 13 of the Provisions
to construction offices of the provinces and autonomous regions and planning bureaus (planning commissions) of municipalities directly
under the Central Government where they registered; Construction offices of the provinces and autonomous regions and planning bureaus
(planning commissions) of municipalities directly under the Central Government will submit the materials which they have checked
and written comments on to Ministry of Construction within 30 days after receiving the application materials; Ministry of Construction
will make the decision to approve the application or not within 30 days after receiving the checked materials. Those who meet Article
6 and Article 13 of the Provisions will be presented City Planning Service Qualification Certificate for Enterprises with Foreign
Investment; those who do not meet the two articles will not be presented the certificate and will be informed the reasons. Furthermore,
Ministry of Construction will inform the enterprises not be approved to State Administration for Industry and Commerce and the Ministry
of Commerce by letter.

Construction offices of the provinces and autonomous regions and planning bureaus (planning commissions) of municipalities directly
under the Central Government should take the work of accepting the application materials of enterprises with foreign investment for
City Planning Service Qualification Certificate seriously and check the materials correctly according to the requirement of the Provisions
and this Circular.

IV.

Announcement on foreign-invested city planning enterprises

For the enterprises presented City Planning Service Qualification Certificate for Enterprises with Foreign Investment, the Ministry
of Construction will declare their names, addresses, legal representatives and name lists of professional technicians etc in the
website of Information Center of the Ministry of Construction.



 
The Ministry of Construction
2003-05-09

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE AUDIT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 48

The Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China,
which was adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of
China on February 28, 2006, is hereby promulgated and shall come into force as of June 1, 2006.

President of the People’s Republic of China, Hu Jintao

February 28, 2006

Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China

(Adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
February 28, 2006)

It is decided at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China
to amend the Audit Law of the People’s Republic of China as follows:

1.

Article 1 shall be amended as: “This Law is formulated in accordance with the Constitution for the purpose of strengthening the
audit supervision of the State, maintaining the fiscal and economic order of the State, enhancing the efficiency in using fiscal
capital, promoting the building of a clean government and ensuring the sound development of national economy and society.”

2.

A new paragraph shall be added to Article 3 as Paragraph 2: “An auditing organ shall carry out audit evaluation according to the
laws and regulations on fiscal revenues and expenditures and financial revenues and expenditures as well as other relevant provisions
of the State, and shall make an audit decision within the scope of its statutory authorities.”

3.

Article 4 shall be amended as: “The State Council and the local people’s government at or above the county level shall annually present
to the standing committee of the people’s congress at the corresponding level with an audit work report of the auditing organ on
budget implementation and other fiscal revenues and expenditures. An audit work report shall give emphasis to the audit of budget
implementation. When necessary, the standing committee of the people’s congress may make a resolution on the audit work report.

“The State Council and the local people’s government at or above the county level shall report the conditions on the correction circumstance
of the problems pointed out in the audit work report and the handling results to the standing committee of the people’s congress
at the same level.”

4.

Article 10 shall be amended as: “An auditing organ may, according to the requirements for the work and upon approval of the people’s
government at the same level, establish dispatched offices within its audit jurisdiction.

“The dispatched offices shall carry out the audit work according to law based on the strength of the authorization by the auditing
organ.”

5.

A new paragraph shall be added to Article 15 as Paragraph 4: “For the appointment and dismissal of the person in-charge of the local
auditing organ at any level, it is necessary to seek the opinions of the auditing organ at the next higher level in advance.”

6.

Article 16 shall be amended as: “The auditing organ shall exercise audit supervision over the budget implementation, final settlement
of accounts as well as other fiscal revenues and expenditures of all the other departments (including subordinate organs) at the
corresponding level and the governments at lower levels.”

7.

Article 17 shall be amended as: “The National Audit Office shall, under the leadership of the Premier of the State Council, exercise
audit supervision over the implementation of central budget and other fiscal revenues and expenditures, and submit reports on audit
results to the Premier of the State Council.

“The local auditing organ at any level shall, under the respective leadership of the governor of the province, chairmen of the autonomous
region, mayor, prefect, head of the county and head of the district as well as the leadership of the auditing organ at the next higher
level, exercise audit supervision over the budget implementation and other fiscal revenues and expenditures of the corresponding
level, and submit reports on audit results to the people’s government at the corresponding level and the auditing organ at the next
higher level.”

8.

Article 19 shall be amended as: “The auditing organ shall exercise audit supervision over the financial revenues and expenditures
to the public institutions and organizations of the State and other public institutions and organizations that use fiscal capital.”

9.

Article 21 shall be deleted.

10.

Article 22 shall be changed into Article 21 and amended as: “The audit supervision over the enterprises and financial institutions
in which the State-owned capital play a controlling or leading role shall be prescribed by the State Council.”

11.

Article 23 shall be changed into Article 22 and amended as: “The auditing organ shall exercise audit supervision over the budget
implementation and final settlement of accounts relating to the construction projects that are invested or mainly invested by the
government.”

12.

Article 24 shall be changed into Article 23 and amended as: “An auditing organ shall exercise audit supervision over the financial
revenues and expenditures of the social security funds, funds from public donations and other relevant funds and capital managed
by the government department or by any other entity commissioned by government “

13.

A new article shall be added as Article 25 : “An auditing organ shall, according to the relevant provision of the State, exercise
audit supervision over the main principals of state organs and other entities belonging to the audit supervision object of the auditing
organ according to law for their fulfillment of economic liabilities of fiscal revenues and expenditures, financial revenues and
expenditures and other economic activities for their respective regions, departments or entities during the course of holding posts.”

14.

Article 29 shall be amended as: “The entities subject to audit supervision object of the auditing organ according to law shall establish
and improve their internal auditing systems in accordance with the relevant provisions of the State, and their internal auditing
work shall be subject to the professional guidance and supervision of the auditing organ.”

15.

Article 30 shall be amended as: “If an entity under audit by a social audit institution is an object of audit supervision of the
auditing organ according to law, the auditing organ shall be enpost_titled to check the relevant audit report as issued by the aforesaid
social audit institution in the light of the provisions of the State Council.”

16.

Article 31 shall be amended as: “The auditing organ shall be enpost_titled to require an entity under audit to submit, in accordance with
the provisions of the auditing organ, the budget or plan on financial revenues and expenditures, budget implementation, final settlement
of accounts, financial accounting reports, electronic data on fiscal or financial revenues and expenditures stored and disposed
by computers and necessary computer technical documents, the conditions about the account opening at the financial institution, the
audit report issued by the social audit institution as well as other materials about fiscal or financial revenues and expenditures.
And the entity under audit shall not refuse or delay the submission or give a false report.

“The person in-charge of an entity under audit shall be responsible for the authenticity and integrity of the financial accounting
materials provided by his own entity.”

17.

Article 32 shall be amended as: “The auditing organ shall, during the course of audit, be enpost_titled to examine accounting vouchers,
accounting books, financial accounting reports, the electronic data system of fiscal or financial revenues and expenditures operated
and managed by computers as well as other materials and assets related to fiscal or financial revenues and expenditures. And the
entity under audit shall not refuse to submit them.”

18.

A new paragraph shall be added to Article 33 as Paragraph 2: “The auditing organ shall be enpost_titled to inquiry the account of an entity
under audit at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at
or above the county level.”

And a new paragraph shall be added as Paragraph 3: “If the auditing organ can prove that an entity under audit deposits public money
in the name of individuals, it shall be enpost_titled to inquire about the deposits of the entity under audit in the name of individuals
at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at or above the
county level.”

19.

Paragraph 1 of Article 34 shall be amended as: “When an auditing organ carries out an audit, the entity under audit shall not transfer,
conceal, alter or destroy its accounting vouchers, accounting books, financial accounting reports and other materials about fiscal
or financial revenues and expenditures, nor may it transfer or conceal the assets it obtained in violation of the provisions of the
State.”

A new paragraph shall be added as Paragraph 2: “Where an entity under audit has the action to violates the preceding Paragraph, the
auditing organ shall be enpost_titled to deter it, and when necessary and upon approval of the person in-charge of the auditing organ
of the people’s government at or above the county level, the auditing organ may have the right to seal up the relevant materials
and the assets obtained in violation of the provisions of the State. If the auditing organ needs to freeze the relevant deposits
at the financial institution, it shall file an application to the people’s court.”

Paragraph 2 shall be changed into two paragraphs as Paragraphs 3 and 4 and be amended as: “Where an entity under audit is carrying
out any act relating to fiscal or financial revenues and expenditures in violation of the provisions of the State, the auditing
organ shall be enpost_titled to deter it. If the determent fails, the auditing organ shall, upon approval of the person-in-charge of the
auditing organ of the people’s government at or above the county level, notify the fiscal department and the relevant competent authorities
to suspend the allotment of money directly related to the act of fiscal or financial revenues and expenditures in violation of the
provisions of the State; if the aforesaid money has been allotted, the use thereof shall be suspended.

“The measures adopted by auditing organ as prescribed by the preceding two paragraphs shall not affect the lawful business operations
or production and management activities of the entity under audit.”

20.

A new article shall be added as Article 37 : “The auditing organ may, when performing the duty of audit supervision, request the administrative
department of public security, supervision, public finance, taxation, customs, price or industry and commerce to offer assistance.”

21.

Article 37 shall be changed into Article 38 , and Paragraph 1 shall be amended as: “The auditing organ shall form an audit team in
light of the audit matters as determined in the plan on the audit, and shall, within 3 days before the audit implementation, serve
an audit notice to the entity under audit. In the case of any special circumstance, the auditing organ may, upon approval of the
people’s government at the same level, directly carry out the audit with the audit notice.”

A new paragraph shall be added as Paragraph 3: “The auditing organ shall enhance the efficiency of audit work.”

22.

Article 38 shall be changed into Article 39 , and Paragraph 1 shall be amended as: “The auditors shall carry out their audit and
obtain the prove materials through the way of examining accounting vouchers, accounting books and financial accounting reports, consulting
the documents and materials about audit matters, inspecting the cash, physical objects and securities and making investigations
to the relevant entities or individuals.”

23.

Article 39 shall be changed into Article 40 and be amended as: “An audit team shall, after carrying out the audit of matters, submit
an audit report to the auditing organ. However, the audit team shall, prior to the submission of the audit report to the auditing
organ, solicit the opinions of the entity under audit. The entity under audit shall, within ten days upon receipt of the audit report
of the audit team, submit its written opinions to the audit team. The audit team shall submit the aforesaid written opinions together
with the audit report to the auditing organ.”

24.

Article 40 shall be changed into Article 41 and be amended as: “The auditing organ shall deliberate the audit report submitted by
the audit team according to the procedures as set down by the National Audit Office, and present an audit report of its own after
concurrently studying the opinions of the entity under audit about the audit report delivered by the audit team. It shall, within
the scope of its statutory authorities, make an audit decision or put forward the opinions for disposition and punishment to the
competent authorities in case the disposition or punishment should be imposed according to law on an act of fiscal or financial revenues
and expenditures in violation of the provisions of the State.

“The auditing organ shall serve the audit report and audit decision of its own to the entity under audit and the relevant competent
organ or entity. The audit decision shall enter into force as of the date of service.”

25.

A new article shall be added as Article 42 : “If the auditing organ at the higher level considers that an audit decision made by an
auditing organ at the lower level has violated the relevant provisions of the State, it may order the auditing organ at the lower
level to alter or cancel the aforesaid decision, and may directly make a decision on alteration or cancellation when necessary.”

26.

Article 41 shall be changed into Article 43 and be amended as: “If an entity under audit violates any provisions in this Law by
refusing or delaying to provide the materials about audit matters, or providing untrue or incomplete materials, or refusing or impeding
the inspection, the auditing organ may order it to make corrections, and may circulate a notice of criticism and give a warning.
If the entity under audit refuses to make corrections, it shall be subject to liabilities according to law.”

27.

Articles 42 and 43 shall be incorporated into one article as Article 44 and be amended as: “Where an entity under audit violates
the provisions in this Law by transferring, concealing, altering or destroying accounting vouchers, accounting accounts, financial
accounting reports or other materials related to fiscal or financial revenues and expenditures, or transferring or concealing the
assets obtained by violation of the provisions of the State, and if the auditing organ considers that the principal and other persons
held to be directly responsible should be given sanctions according to law, the auditing organ shall put forward the suggestions
for punishment, and the entity under audit or the organ at the higher level and the supervisory organ shall make a timely decision
according to law, and notify the result to the auditing organ in written form; and if a crime is constituted, the entity under audit
shall be subject to criminal liabilities according to law.”

28.

Article 44 shall be changed into Article 45 and be amended as: “Where any other department (including subordinate entities) at the
corresponding level or the government at the lower level commits the acts against the budget or other acts of fiscal revenues and
expenditures against the provisions of the State, the auditing organ, the people’s government or the competent authorities shall,
within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take the following
measures in light of the specific situation:

(1)

Ordering it to pay the money that should be turned over within the time limit;

(2)

Ordering it to return the occupied state-owned assets within the time limit;

(3)

Ordering it to refund the unlawful proceeds within the time limit;

(4)

Ordering to dispose the matter in accordance with the relevant provisions on the unified national accounting system; and

(5)

Other disposal measures.

29.

Article 45 shall be changed into Article 46 and be amended as: “Where an entity under audit commits the acts of financial revenues
and expenditures in violation of the provisions of the State, the auditing organ, the people’s government or the competent authorities
shall, within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take measures
as prescribed in the preceding Article in light of the specific situation, and may impose punishments on the entity under audit according
to law.”

30.

A new article shall be added as Article 47 : “The auditing organ shall make an audit decision within the scope of its statutory authorities,
and the entity under audit shall implement the aforesaid decision.

“Where the auditing organ orders an entity under audit to turn over a sum of money that should be turned over according to law, but
the entity under audit refuses to do so, the auditing organ shall circulate a notice to the competent authorities, and the competent
authorities shall, according to the laws and administrative regulations, withhold the aforesaid money or take other disposal measures,
and notify the results to the auditing organ in written form.”

31.

A new article shall be added as Article 48 : “Where an entity under audit holds objection to an audit decision on financial revenues
and expenditures made by the auditing organ, it may file an application for administrative reconsideration or lodge an administrative
lawsuit according to law.

“Where an entity under audit holds objection to an audit decision on fiscal revenues and expenditures made by the auditing organ,
it may request the people’s government at the same level with the auditing organ for ruling, and the ruling made by the people’s
government at the same level shall be the final decision.”

32.

Article 46 shall be changed into Article 49 and be amended as: “Where the fiscal or financial revenues and expenditures of an entity
under audit break the provisions of the State and the auditing organ considers it necessary to punish the principal and other persons
held to be directly responsible, it shall put forward the suggestions for punishment, and the entity under audit, the organ at the
higher level or the supervisory organ shall timely make a decision according to law and notify the results to the auditing organ
in written form.

33.

Article 48 shall be changed into Article 51 and be amended as: “Anyone who retaliates or makes a false charge against the auditor
shall be given sanctions according to law; and shall be subject to criminal liabilities according to law if any crime is constituted
.”

34.

Article 49 shall be changed into Article 52 and be amended as: “Where an auditor abuses his authorities, resorts to frauds for personal
ends, neglects his duties or divulges national secrets or business secrets he has learnt about, he shall be punished according to
law; and if a crime is constituted, he shall be subject to criminal liabilities according to law.”

This Decision shall come into force as of June 1, 2006.

The Audit Law of the People’s Republic of China shall be re-promulgated after the amendments have been made and the sequential numbers
of the articles are correspondingly adjusted according to this Decision.



 
Standing Committee of the National People’s Congress
2006-02-28

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON CONDUCTING ANNUAL INSPECTION ON FOREIGN EXCHANGE ACCOUNTS UNDER CURRENT ACCOUNT FOR THE YEAR OF 2001

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange (SAFE) on Conducting Annual Inspection on Foreign Exchange Accounts under
Current Account for the Year of 2001

HuiFa [2002] No.9

January 25, 2002

SAFE branches in all provinces, autonomous regions, and municipalities directly under the Central Government, exchange administration
offices, and SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

With a view to strengthening the supervision of foreign exchange accounts under current account, and normalizing annual inspection
on foreign exchange accounts, a notice concerning annual inspection on foreign exchange accounts under current account for the year
of 2001 is given as follows in accordance with the Provisions on the Administration of Domestic Foreign Exchange Accounts and the
Interim Provisions on Annual Inspection on Foreign Exchange Accounts under Current Account of Domestic Entities (hereinafter referred
to as Provisions on Annual Inspection):

1.

Schedule of the inspection

All SAFE branches shall conduct the annual inspection in their respective jurisdiction from March to May of 2002, and submit the inspection
report to the Current Account Management Department of the SAFE at the end of June.

2.

Scope of the inspection

The inspection shall cover the foreign exchange settlement accounts and foreign exchange special accounts of Chinese-funded entities,
and the foreign exchange accounts of foreign establishments in China.

3.

Requirements on the inspection

3.1

All SAFE branches shall carry out the inspection seriously and ensure its quality in accordance with the requirements of the SAFE
on the annual inspection.

3.2

In order to encourage law-abiding entities and establishments, properly simplify the inspection procedure on the law-abiding, and
raise the efficiency of work, Chinese-funded entities and foreign establishments that were found to have no problem related to infraction
of regulations in the previous annual inspection may be exempted from the 2001 annual inspection. Chinese-funded entities that were
evaluated as “honorable enterprises for collection of export proceeds” by SAFE offices in accordance with the Proposed Methods for
the Examination on Collection of Export Proceeds shall enjoy priority in going through relevant formalities after submitting their
inspection reports to SAFE offices.

3.3

This annual inspection shall, on the basis of an overall inspection on the foreign exchange accounts under current account of Chinese-funded
entities and foreign establishments in China, highlight:

3.3.1

cases of Chinese-funded entities exceeding the balance ceilings of their foreign exchange accounts;

3.3.2

cases of Chinese-funded entities opening accounts without approval of the SAFE offices;

3.3.3

cases of foreign exchange funds in foreign exchange special accounts of Chinese-funded entities being switched to time deposit account
without approval;

3.3.4

sales of net foreign exchange income in foreign exchange special accounts of Chinese-funded entities.

4.

Requirement on the inspection report

4.1

The report shall be authentic and accurate.

4.2

The report shall cover: process of the annual inspection (including arrangement of the inspection, checkup and conclusion); inspection
overview; main problems with account-opening entities and banks and analysis of their causes; classification of problems related
to infraction of regulations that exist in accounts opened in violation of rules and case analysis thereto related; measures taken
by the reporting SAFE office aiming at problems found and policy suggestions on improving the administration of foreign exchange
accounts.



 
The State Administration of Foreign Exchange
2002-01-25

 






PROVISIONS ON IMPOSITION OF ADMINISTRATIVE PENALTIES INCLUDING WARNING, SUSPENSION OR REVOCATION OF OPERATIONAL PERMIT UPON SMUGGLING OR RULE-VIOLATING ENTERPRISES FOR FOREIGN TRADE OR INTERNATIONAL FREIGHT AGENCY

The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs

Order of the Ministry of Foreign Trade and Economic Cooperationand the General Administration of Customs

No.6

In order to severely crack down smuggling and rule-violating activities, as well as maintain the foreign trade order, the “Provisions
on Imposition of Administrative Penalties Including Warning, Suspension or Revocation of Operational Permit upon Smuggling or Rule-violating
Enterprises for Foreign Trade or International Freight Agency” are hereby promulgated in accordance with the “Foreign Trade Law of
the People’s Republic of China”, which shall come into force on April 15, 2002. The “Interim Provisions on Imposition of Administrative
Penalties Including Warning, Suspension or Revocation of Operational Permit upon Rule-violating or Smuggling Enterprises for Foreign
Trade or International Freight Agency” jointly promulgated by the Ministry of Foreign Trade and Economic Cooperation and the General
Administration of Customs on December 1, 1998 (WaiJingMaoZhengFa [1998] No. 929) shall be abrogated simultaneously.

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

Director General of the General Administration of Customs Mu Xinsheng

February 26, 2002

Provisions on Imposition of Administrative Penalties Including Warning, Suspension or Revocation of Operational Permit upon Smuggling
or Rule-violating Enterprises for Foreign Trade or International Freight Agency

Article 1

These Provisions are enacted in accordance with the “Foreign Trade Law of the People’s Republic of China” and other relevant laws
and administrative regulations with a view to severely cracking down smuggling and rule-violating activities as well as maintaining
the foreign trade order.

Article 2

Smuggling or rule-violating enterprises as mentioned in these Provisions shall refer to various types of enterprises engaged in foreign
trade and economic cooperation, which are adjudicated by the people’s court to have committed the crime of smuggling, or ascertained
by the customs to have committed smuggling or have violated the customs’ surveillance provisions.

Article 3

The basic premise for imposing administrative penalties including warning, suspension or revocation of operational permit upon smuggling
or rule-violating enterprises for foreign trade or international freight agency is: the fact of rule-violating or smuggling conduct
exists, and the administrative penalty imposed by the customs has come into force; or the crime of smuggling is constituted, and
the judgment made by the court has come into force. The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred
to as the MOFTEC) or local department of foreign trade and economic cooperation authorized thereby shall, after receipt of the notice
of the customs or the court, have the right to impose administrative penalties including warning, suspension or revocation of operational
permit upon smuggling or rule-violating enterprises for foreign trade or international freight agency.

Article 4

Where an enterprise engaged in foreign trade and economic cooperation is under any of the following circumstances, it shall be imposed
upon an administrative penalty of warning by the MOFTEC or local department of foreign trade and economic cooperation authorized
thereby:

(1)

Smuggling imported or exported goods or articles, with the amount of evaded tax to be no less than 30,000 Yuan but less than 250,000
Yuan;

(2)

Smuggling goods or articles restricted by the state from being imported or exported, with the value involved to be no less than 100,000
Yuan but less than 1 million Yuan;

(3)

Violating the customs’ surveillance provisions in importing or exporting goods or articles, with the amount of delinquent tax to
be no less than 300,000 Yuan but less than 3 million Yuan;

(4)

Violating the customs office’s surveillance provisions in importing or exporting goods or articles, with the value involved to be
no less than 1 million Yuan but less than 10 million Yuan.

Article 5

Where an enterprise engaged in foreign trade and economic cooperation is under any of the following circumstances, it shall be imposed
upon an administrative penalty of suspension of operational permit for foreign trade or international freight agency for 3 months
by the MOFTEC or local department of foreign trade and economic cooperation authorized thereby:

(1)

Smuggling imported or exported goods or articles, with the evaded tax amount to be no less than 250,000 Yuan but less than 3 million
Yuan;

(2)

Smuggling goods or articles restricted by the state from being imported or exported, with the value involved to be no less than 1
million Yuan but less than 10 million Yuan;

(3)

Violating the customs office’s surveillance provisions in importing or exporting goods or articles, with the amount of delinquent
tax to be no less than 3 million Yuan but less than 10 million Yuan;

(4)

Violating the customs office’s surveillance provisions to import or export goods or articles, with the amount involved to be no less
than 10 million Yuan but less than 30 million Yuan.

Article 6

Where an enterprise engaged in foreign trade and economic cooperation is under any of the following circumstances, it shall be imposed
upon an administrative penalty of revocation of operational permit for foreign trade or international freight agency by the MOFTEC
or local department of foreign trade and economic cooperation authorized thereby:

(1)

Smuggling imported or exported goods or articles, with the amount of evaded tax to be no less than 3 million Yuan;

(2)

Smuggling goods or articles restricted by the state from being imported or exported, with the value involved to be no less than 10
million Yuan;

(3)

Violating the customs office’s surveillance provisions in importing or exporting goods or articles, with the amount of delinquent
tax to be no less than 10 million Yuan;

(4)

Violating the customs’ surveillance provisions in importing or exporting goods or articles, with the value involved to be no less
than 30 million Yuan;

(5)

Smuggling goods or articles prohibited by the state from being imported or exported, and constitutes a crime.

Article 7

When an enterprise engaged in foreign trade and economic cooperation is under any two circumstances mentioned in the above penalty
clauses, it shall be punished by a severer penalty.

Article 8

Where a party is under any of the following circumstances, the MOFTEC or local department of foreign trade and economic cooperation
authorized thereby may, in accordance with the law, impose a lighter or mitigated administrative penalty or exempt it from administrative
penalty:

(1)

Eliminating or reducing, of its own accord, the endangering consequences caused by the illegal act;

(2)

Being coerced by others to commit the illegal act;

(3)

Performing meritorious services in cooperating with the administrative organ to investigate illegal acts;

(4)

Other circumstances under which it shall be imposed upon a lighter or mitigated administrative penalty in accordance with the law.

Article 9

The MOFTEC or local department of foreign trade and economic cooperation authorized thereby shall, before imposing an administrative
penalty, inform the party concerned, and the party shall have the right to state the facts and defend himself. For the administrative
penalty of suspension or revocation of operational permit for foreign trade or international freight agency, the party concerned
shall have the right to request a hearing; if the party requests a hearing, the MOFTEC or local department of foreign trade and economic
cooperation authorized thereby shall arrange for the hearing. When a hearing is concluded, the MOFTEC or its authorized local department
of foreign trade and economic cooperation shall make a decision on administrative penalty in accordance with the relevant laws, regulations
and the facts verified in the hearing.

Article 10

The MOFTEC or local department of foreign trade and economic cooperation authorized thereby shall, within 7 days after making a decision
on administrative penalty, serve the penalty decision to the party concerned; if the penalty decision cannot be served directly or
by mail, it shall be served by announcement.

Article 11

Any party who refuses to accept the decision on administrative penalty may, in accordance with the “Administrative Reconsideration
Law of the People’s Republic of China”, institute an administrative reconsideration, or in accordance with the “Administrative Procedural
Law of the People’s Republic of China”, institute an administrative litigation.

Article 12

These Provisions shall be applicable to enterprises with foreign investment. The MOFTEC or local department of foreign trade and economic
cooperation authorized thereby may, in accordance with these Provisions, impose such administrative penalties as warning, notification
of the customs to suspend or cease the handling of import and export business or international freight agency business upon the smuggling
and rule-violating foreign-funded enterprise, and shall notify the foreign parent company.

Article 13

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

Article 14

The present Provisions are promulgated on March 15, 2002, and shall come into force 30 days after the date of promulgation. The “Interim
Provisions on Imposition of Administrative Penalties Including Warning, Suspension or Revocation of Operational Permit upon Rule-violating
or Smuggling Enterprises for Foreign Trade or International Freight Agency” jointly promulgated by the Ministry of Foreign Trade
and Economic Cooperation and the General Administration of Customs on December 1, 1998 (WaiJingMaoZhengFa [1998] No.929) shall be
abrogated simultaneously.



 
The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
2002-02-26

 






WATER LAW OF THE PEOPLE’S REPUBLIC OF CHINA(THE MODIFIED EDITION)






e01800

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.74

The Water Law of the People’s Republic of China was modified and adopted at the 29th Meeting of the Standing Committee of the Ninth
National People’s Congress on August 29, 2002, the modified Water Law of the People’s Republic of China is hereby promulgated and
shall come into force as of October 1, 2002.

President of the People’s Republic of China: Jiang Zemin

August 29, 2002

Water Law of the People’s Republic of China(the modified edition) ContentsChapter I General Provisions

Chapter II Planning of Water Resources

Chapter III Development and Utilization of Water Resources

Chapter IV Protection of Water Resources, Water Areas and Water Projects

Chapter V Allocation and Economic Use of Water Resources

Chapter VI Settlement of Disputes over Water and Supervision and Inspection of Law Enforcement

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the rational development, utilization, preservation, and protection of water, for the prevention and control
of water disasters, and for the sustainable utilization of water resources in order to meet the needs of national economic and social
development.

Article 2

This Law must be observed in the development, utilization, preservation, protection, and management of water resources and in the
prevention and control of water disasters within the territory of the People’s Republic of China.

The “water resources” referred to in this Law include surface water and groundwater.

Article 3

Water resources shall be owned by the state. The State Council shall exercise ownership of water resources on behalf of the state.
Water in the ponds of rural collective economic organizations and in the reservoirs constructed and managed by rural collective economic
organizations shall be used by those organizations.

Article 4

The development, utilization, preservation, and protection of water resources and the prevention and control of water disasters shall
be carried out through comprehensive planning, with all factors taken into consideration. The planning shall seek both a temporary
solution and a permanent cure, with emphasis on multipurpose use and achieving maximum benefits to take advantage of the multiple
functions of water resources and harmonize water use in production and the environment.

Article 5

The people’s governments at and above the county level shall strengthen the construction of infrastructures for water conservation
that shall be included in plans for national economic and social development.

Article 6

The state shall encourage entities and individuals to develop and utilize water resources according to law, and to protect their legal
rights and interests. The entities and individuals developing and utilizing water resources shall bear an obligation to protect water
resources according to law.

Article 7

The state shall apply the systems of water licensing and paid use of water resources according to law, excepting collective economic
organizations and their members’ use of the water in the ponds and reservoirs owned by those organizations. The department of water
administration under the State Council shall be responsible for organizing the water license system implementation as well as the
nationwide paid use of water resource system.

Article 8

The state shall require strict economy in the use of water, vigorously promote measures for water saving, spread new technology and
techniques to conserve water, develop the water-conservation industry and agriculture and service industry, and establish a water-conservation
society.

The people’s governments at various levels shall take measures to improve the management of water preservation, establish the development
and distribution of water-conservation technology, and foster and develop water-preservation industries.

Entities and individuals shall bear an obligation to save water.

Article 9

The state shall protect water resources and adopt effective measures to preserve vegetation, plant trees, grow grass, conserve water
sources, prevent and control soil erosion and water pollution, and improve the ecological environment.

Article 10

The state shall encourage and support the research, distribution, and application of advanced technology for the development, utilization,
preservation, protection, and management of water resources and the prevention and control of water disasters.

Article 11

The people’s governments shall award the entities and individuals that have made outstanding achievements in the development, utilization,
preservation, protection and management of water resources and in the prevention and control of water disasters, etc.

Article 12

The state shall, with respect to water resources, adopt a system that organizes the administration by watersheds as well as by administrative
areas.

The department of water administration under the State Council shall be in charge of the unified administration and supervision of
water resources of the nation.

The watershed authorities, set up by the department of water administration under the State Council, at the important rivers and lakes
(as determined by the state) (hereinafter referred to as the watershed authorities) shall, within their respective jurisdictions,
exercise the water resource administration and supervision provided for by laws and regulations and authorized by the department
of water administration under the State Council.

The departments of water administration in the local people’s governments at and above the county level shall, according to the prescribed
limit of authorities, be in charge of the unified administration and supervision of water resources within their respective administrative
areas.

Article 13

The relevant departments under the State Council shall be in charge of the relevant work for the development, utilization, preservation
and protection of water resources.

The relevant departments of the local people’s governments at and above the county level shall, according to the division of duties,
be in charge of the relevant work to develop, utilize, preserve, and protect water resources.

Chapter II Planning of Water Resources

Article 14

The state shall formulate the strategic plan for water resources of the whole country.

The development, utilization, preservation and protection of water resources, and the prevention and control of water disasters, shall
be planned in a unified way on the basis of watersheds or regions. Plans are divided into watershed plans and region plans. Watershed
plans include comprehensive watershed plans and special watershed plans; region plans include comprehensive region plans and special
region plans.

The “comprehensive plans,” as used in the preceding paragraph, shall refer to the overall arrangements, formulated according to the
needs of economic and social development and the present situation of the development and utilization of water resources, for the
development, utilization, preservation and protection of water resources, as well as for the prevention and control of water disasters.
The “special plans,” as used in the preceding paragraph, shall refer to plans for prevention of floods, the control of water-logging,
irrigation, navigation, water supply, hydro-electric power generation, bamboo or log rafting, fishery, water resource protection,
water and soil conservation, prevention and control of sand disasters, and water preservation, etc.

Article 15

The region plan within a watershed shall be subject to the watershed plan, and the special plan shall be subject to the comprehensive
plan.

The comprehensive watershed plan and comprehensive region plan, as well as the special plan closely related to land utilization, shall
be coordinated with the plan for national economic and social development, the overall plan for land utilization, the overall urban
plan, and the plan for environment protection, and shall take account of the needs of the areas and industries.

Article 16

In order to draw up a plan, a comprehensive scientific survey and an investigation and assessment of water resources must be undertaken
by the department of water administration of the people’ s government at or above the county level jointly with the relevant department
at the corresponding level.

The people’s government at or above the county level shall improve the construction of the information system on hydrologic and water
resources. The department of water administration of the people’s governments at or above the county level and the watershed authorities
shall strengthen the dynamic monitoring of water resources.

The basic hydrologic materials shall be publicized pursuant to the relevant provisions of the state.

Article 17

The comprehensive watershed plans for important rivers and lakes determined by the state shall be formulated by the department of
water administration under the State Council This will be in conjunction with the relevant departments under the State Council and
the people’s governments of the relevant provinces, autonomous regions, and municipalities directly under the Central Government,
and shall be submitted to the State Council for approval. The comprehensive watershed plans and comprehensive region plans for other
rivers and lakes running across provinces, autonomous regions and municipalities directly under the Central Government shall be formulated
by the relevant watershed authorities in conjunction with the departments of water administration and the relevant departments of
the people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government where the
rivers and lakes are located. After the relevant people’s governments examine those plans and give their opinions, the plans shall
be submitted to the department of water administration under the State Council for examination, which shall, after seeking opinions
from the relevant departments under the State Council, submit the plans to the State Council or the department authorized thereby
for approval.

The comprehensive watershed plans and comprehensive region plans for rivers and lakes other than those described in the preceding
paragraph shall be formulated by the departments of water administration of the local people’s governments at and above the county
level, jointly with the relevant departments at the corresponding level and the relevant local people’s governments, and shall be
submitted to the corresponding people’s governments or the departments authorized thereby for approval, as well as to the departments
of water administration at the next higher level for record.

The special plans shall be formulated by the relevant departments of the people’s governments at and above the county level, and shall
be submitted to the corresponding people’s governments for approval after those departments seek opinions from other relevant departments
at the corresponding level. Among these special plans, the formulation and approval of plans on the prevention of floods, and water
and soil conservation plans, shall be carried out according to the relevant provisions of the Law on Prevention of Floods and the
Law on Water and Soil Conservation.

Article 18

A plan shall be strictly carried out once it has been approved.

When modifying the approved plan is necessary, the modification must be approved by the original approving department in accordance
with the procedures for plan formulation.

Article 19

Construction of a water project must be in conformity with the comprehensive watershed plan. With respect to the water projects constructed
on the important rivers and lakes (as determined by the state) and the rivers and lakes running across provinces, autonomous regions,
and municipalities directly under the Central Government, before the project feasibility reports are submitted for approval the relevant
watershed authorities shall examine and give opinions on whether the construction of the water project is in conformity with the
comprehensive watershed plan. With respect to the construction of water projects on other rivers and lakes, before the project feasibility
reports are submitted for approval, the water administration departments of the local people’s governments at or above the county
level shall, according to the limit of their authorities, examine and give opinions on whether the construction of water projects
conforms to the comprehensive watershed plans. Where the construction of a water project involves prevention of floods, the relevant
provisions of the Law on Prevention of Floods shall be observed; where other regions and industries are involved, the construction
entity shall seek opinions from the relevant regions and departments in advance.

Chapter III Development and Utilization of Water Resources

Article 20

The development and utilization of water resources shall follow the principle of promoting benefits while eliminating disasters. It
shall take into consideration the interests of upstream and downstream areas, of the left and right banks, and of all regions concerned
to take advantage of the comprehensive benefits of water resources; it shall also conform to the overall arrangement for the prevention
of flood.

Article 21

The development and utilization of water resources shall first satisfy the needs of the urban and rural inhabitants in their domestic
use of water and give overall consideration to the agricultural, industrial and ecological need for water as well as to the needs
of navigation.

In dry and semi-dry areas, the development and utilization of water resources shall take into full consideration the ecological environment’s
need for water.

Article 22

In case of inter-watershed diversion, an overall plan and a scientific justification must be conducted and consideration given to
the demand for water in the watershed which supplies the water and in the watershed which receives it, while avoiding damages to
the ecological environment.

Article 23

The local people’s governments at various levels shall, in light of the actual situations of water resources of their respective regions,
rationally organize the development and comprehensive utilization of water resources according to the principles of unified management
and development of surface water and groundwater. It will open up the source while regulating the flow with priority given to regulation
as well as disposition and reuse of the sewage.

The formulation of national economic and social development plans and overall urban plans, and the layout of major construction projects,
shall be compatible with the conditions of the local water resources and the requirements of flood prevention, and scientific justification
shall be undertaken. In areas where the water sources are insufficient, the scale of the urban area and the development of industrial,
agricultural and service undertakings that use a large amount of water shall be restricted.

Article 24

In areas short of water resources, the state shall encourage the collection, development and utilization of rain and minor salt water
and the utilization and desalination of seawater.

Article 25

The local people’s governments at various levels shall improve the leadership over the work of irrigation, draining saturated fields,
and water and soil conservation, thus promoting the development of agriculture production. In areas where brackishness or saturation
is likely to take place, the governments shall take actions to control and lower the level of groundwater.

Where a rural collective economic organization or its members invest to construct water project facilities on the collective land
owned by the organization or land contracted by a member, the water project facilities and the water stored in them shall be managed
and rationally used according to the principle that “the party that invests in and constructs the facilities shall be the one to
manage and benefit from such facilities.”

The construction of a water reservoir by a rural collective economic organization shall be subject to the approval of the department
of water administration of the local peoples’ government at or above the county level.

Article 26

The state shall encourage the development and utilization of hydraulic power potential. On rivers with hydraulic power potential,
multipurpose cascade development shall be effected in a planned way.

In the development of hydropower stations, the ecological environment shall be protected and the needs for flood control, water supply,
irrigation, navigation, bamboo and log rafting, fishery, etc. shall be taken into account.

Article 27

The state shall encourage the development of water transport resources. When permanent dams and sluice-gates are built on rivers which
are migrating channels for aquatic creatures, or are navigable or suitable for bamboo and log rafting, the construction entity must
simultaneously build facilities for the passage of fish and ships and for bamboo and log rafting or, after approval by a department
authorized by the State Council, take other remedial measures. The construction entity must also make adequate arrangements for the
protection of aquatic creatures, navigation, and bamboo and log rafting during the construction period and the initial water-filling
period, and bear the expenses incurred thereby.

Where a non-navigable river or man-made waterway becomes navigable after a dam or sluice-gate is built, the construction entity shall
simultaneously build facilities for the passage of ships or reserve sites for such facilities.

Article 28

No entity or individual shall, while channeling, storing, or discharging water, infringe upon public interests or the lawful rights
and interests of other people.

Article 29

The state shall apply the policies of resettlement of inhabitants for development purposes to the resettlement of inhabitants in construction
of water projects, and shall appropriately arrange the production and lives of the resettled inhabitants and protect their lawful
rights and interests according to the principles of providing compensation and subsidy in the early stage and support in the latter
stage.

The resettlement of inhabitants shall be conducted at the same pace as that of the project construction. The construction entity shall,
according to the environment capacity of the area of resettlement and the principle of sustainable development, formulate a plan
for inhabitant resettlement in accordance with local conditions, and the relevant local people’s government shall organize the implementation
of the plan after it has been approved according to the law. The expenses incurred in the resettlement of inhabitants shall be included
in the investment plan for project construction.

Chapter IV Protection of Water Resources, Water Areas and Water Projects

Article 30

In the formulation of a plan for development and utilization of water resources, and in the management of water resources, the water
administration department of the people’s government at or above the county level, the watershed authorities, and other relevant
departments shall attend to maintenance of the rational volume of flow of the rivers and the rational water level of the lakes, reservoirs,
and groundwater as well as the maintenance of the natural purifying capacity of the water.

Article 31

The approved plan shall be observed in the development, utilization, preservation, and protection of water resources and the prevention
and cure of water disasters. If anyone causes the decline of functions of the rivers and lakes, over-collection of groundwater, or
subsidence of ground or water pollution in violation of the plan, he or she shall bear the responsibility for treatment.

Where mining or the construction of other underground projects results in a lowering of the groundwater level, the depletion of groundwater
or the subsidence of the ground because of water drainage, the mining entity or the construction entity shall take remedial measures.
Where losses are caused to the livelihood and production of entities or individuals, such losses shall be compensated.

Article 32

The water administration department under the State Council shall, in conjunction with the environmental protection department, the
relevant departments under the State Council, and the people’s governments of the relevant provinces, autonomous regions and municipalities
directly under the Central Government, delimit the water functional regions of the important rivers and lakes determined by the state
according to the comprehensive watershed plans, water resource protection plans and economic and social development requirements,
and report to the State Council for approval. The water functional regions of other rivers and lakes running across provinces, autonomous
regions and municipalities directly under the Central Government shall be delimited by the water administration departments, the
environmental protection departments, and other relevant departments of the people’s governments of the provinces, autonomous regions
and municipalities directly under the Central Government where those rivers and lakes are located. The regions shall, after the relevant
people’s governments examine and give their opinions, be examined by the water administration department under the State Council
jointly with the environmental protection department under the State Council. The opinions shall be submitted to the State Council
or the departments authorized thereby for approval.

The water functional regions of the rivers and lakes other than those prescribed in the preceding paragraph shall be delimited by
the water administration departments of the local people’s governments at or above the county level jointly with the environmental
protection departments and the relevant departments of the people’s governments at the corresponding level. The examination results
shall be submitted to the people’s governments at the corresponding level or departments authorized thereby for approval, and to
the water administration departments and environmental protection departments at the next higher level for record.

The people’s government water administration departments at and above the county level, or the watershed authorities, shall, according
to the water functional regions’ requirements for water quality and the natural purifying capacity of the water, determine the pollutant-carrying
capacity of those water areas, and present opinions to the departments of environmental protection on the limitation of total pollutants
discharge for those water areas.

The people’s governments water administration departments at and above the county level, or the watershed authorities, shall monitor
the water quality of the water functional regions. Where they find the total discharge of major pollutants exceeds the limitation
or the water quality of the water functional regions fails to meet the requirements of the functions of the water areas, they shall
promptly report to the relevant people’s governments for treatment as well as notifying the environmental protection departments.

Article 33

The state shall establish the system of protection of drinking water resources. The people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government shall set the drinking water resource conservation districts and
take necessary measures to prevent the water sources from drying up or being polluted, thus guaranteeing the safety of drinking water
for urban and rural residents.

Article 34

It is prohibited to set up outlets for discharging sewage into the drinking water resource conservation districts.

The establishment, modification or expansion of outlets for discharging sewage on rivers and lakes shall be subject to the consent
of the water administration departments or watershed authorities with the jurisdiction, and the environmental protection departments
shall be responsible for the examination and approval of the environmental impact reports of those construction projects.

Article 35

When any construction project occupies the water source for agricultural irrigation, the irrigation facilities, or drainage projects,
or has adverse impact on the original water source for irrigation, the construction entity shall take the relevant remedial measures
and shall compensate for the loss if there is any.

Article 36

In areas where groundwater has been over-collected, the local people’s governments at or above the county level shall impose strict
control on the collection of groundwater. In the areas where groundwater has been seriously over-collected, the prohibition districts
or limitation of groundwater collection may be delimited upon the approval of the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government.

For collection of groundwater in coastal areas, scientific justifications shall be undertaken, and measures shall be taken to prevent
ground subsidence and sea invasion.

Article 37

It is prohibited to abandon or pile in any river, lake, reservoir, or canal objects that block the passage of floodwater. Planting
trees or growing crops of a long-stalk variety that may block the passage of floodwater is also prohibited.

It is prohibited, within the range of riverway administration, to construct any building or structure that blocks the passage of flood
water or to conduct any activity that affects the river flow, impairs the safety of river banks and dikes, or hampers the passage
of flood water.

Article 38

The construction of bridges, wharfs and other buildings and structures that block, cross, or border the river, and the laying of pipes
or cables that cross the river within the range of riverway administration shall meet the standards for prevention of flood and other
related technical requirements set by the state. The plans for a construction project shall be submitted to the water administration
departments for examination and approval in accordance with the relevant provisions of the law on flood prevention.

Where the building of any of the structures or facilities referred to in the preceding paragraph requires extension, modification,
removal, or destruction of the original water structures or facilities, the entity constructing the new project shall bear the expenses
for extension or modification and the expenses for the compensation of losses, unless the original structures or facilities were
built in violation of the law.

Article 39

The state shall apply a license system for sand quarrying. The sand quarrying license implementation measures in the riverway shall
be provided by the state.

Where any sand quarrying within the range of riverway administration affects the river flow or endangers the safety of dikes, the
people’s government water administration department at the county level or above shall delimit the prohibition districts and prescribe
the prohibition period, which shall be publicly announced.

Article 40

It shall be prohibited to reclaim parts of a lake for use as farmland. Those already reclaimed shall be restored to the lake according
to the state-prescribed flood prevention standards.

It shall be prohibited to reclaim parts of a riverway for use as farmland. Where the reclaiming is indeed necessary, it shall be scientifically
justified. Reclamation shall, with the consent of the water administration department of the people’s government of the province,
autonomous region or municipality directly under the Central Government or the water administration department under the State Council,
be submitted to the people’s government at the corresponding level for approval.

Article 41

Entities and individuals shall bear the obligation of protecting water projects, and may not seize or destroy project facilities such
as dikes, bank revetments, flood prevention facilities, hydrologic monitoring facilities, or hydrogeologic monitoring facilities.

Article 42

The local people’s governments at and above the county level shall take measures to guarantee the safety of the water projects within
their respective administrative areas, especially the dams and dikes, and to eliminate dangerous conditions within the prescribed
period. The departments of water administration shall strengthen the supervision and administration of the safety of water projects.

Article 43

The state shall protect water projects. For the water projects owned by the state, the scope of project administration and protection
shall be delimited according to the provisions of the State Council.

For water projects managed by the water administration department under the State Council or the watershed authorities, the scope
of project administration and protection shall be delimited by the water administration department or the watershed authorities through
consultation with the relevant people’s governments of the provinces, autonomous regions, and municipalities directly under the Central
Government.

For water projects other than those prescribed in the preceding paragraph, the scope of project protection and the duties of protection
shall be delimited according to the provisions of the people’s governments of provinces, autonomous regions, and municipalities directly
under the Central Government.

Within the scope of water project protection, it shall be prohibited to conduct activities, such as blasting, sinking a well, rock
quarrying or earth collection, that affect the function or endanger the safety of water projects.

Chapter V Allocation and Economic Use of Water Resources

Article 44

The development planning departments and the water administration department under the State Council shall be in charge of the macro-allocation
of the water resources of the nation. The middle- and long-term plans for the supply and demand of water for the country and for
regions covering different provinces, autonomous regions, and municipalities directly under the Central Government shall be formulated
jointly by the State Council water administration department and other relevant State Council departments, and be submitted to the
development planning State Council department for approval before execution. Local middle- and long-term plans for the supply and
demand of water will be based on the middle- and long-term plan for the supply and demand of water made by the water administration
department of the people’s government at the next higher level and the actual local conditions. It will be formulated by the water
administration department jointly with the other relevant departments of the local people’s government at or above the county level,
and shall be submitted to the development planning department of the people’s government at the corresponding level for approval
before execution.

The middle-and long-term plan for the supply and demand of water shall be formulated on the basis of the present water supply and
demand situation, the plan for national economic and social development, the watershed plan, and the regional plan, according to
the principles of coordination of the supply and demand of water resources, comprehensive balance, protection of the ecology, strict
economic use, and rational opening of resources.

Article 45

For the regulation and storage of the runoff and the water allocation, the plans for water allocation shall be formulated on a watershed
basis in accordance with the watershed plan and the middle-and long-term plan for the supply and demand of water.

A water allocation plan covering different provinces, autonomous regions and municipalities directly under the Central Government
or a water diversion sketch under urgent drought conditions shall be formulated by the watershed authorities through consultation
with the relevant people’s governments o

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON STRENGTHENING THE PAYMENT OF INDIVIDUAL INCOME TAX BY SELF-ASSESSMENT OF THE INVESTORS OF LAW FIRMS AND OTHER INTERMEDIARY AGENCIES

The State Administration of Taxation

Circular of the State Administration of Taxation on Strengthening the Payment of Individual Income Tax by Self-assessment of the Investors
of Law Firms and Other Intermediary Agencies

GuoShuiFa [2002] No.123

September 29, 2002

Local tax bureaus of the provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan:

It has been found that, for a period of time, some localities have applied the method of collection of individual income tax upon
verification for the whole trade of law firms, the tax burden verified is obviously lower that the statutory tax burden. This kind
of doing has failed to comply with the Circular of the State Council on Approving and Transmitting the Opinions of the State Administration
of Taxation on Strengthening the Administration of Tax Collection and Reinforcing the Tax Payment by Self-assessment of Individual
Private Businesses (GuoFa [1997] No.12), is likely to lead to unfair tax burden and is adverse to brining into play the role of individual
tax in adjusting the high incomes. In order to strengthen the administration of collection of individual income tax of the investors
of laws firms and other intermediary agencies, the relevant issues are notified as follows:

I.

No locality may apply the method of tax collection upon verification to the whole trade of law firms. The localities shall observe
the Tax Collection Law and the Document GuoFa [1997] No.12, collect the individual income tax by self-assessment over the law firms
where it is possible.

II.

The localities that have applied the method of tax collection upon verification to the whole trade of law firms must correct their
doings before the end of this year, and shall report to the State Administration of Taxation about the correction before the end
of March of 2003.

III.

With respect to the law firms for which tax can’t be collected upon auditing according to Article 35 of the Tax Collection Law, the
payable tax amount shall be assessed at the rate of taxable income determined in the Circular of the Ministry of Finance and the
State Administration of Taxation on Printing and Distributing the Provisions on the Collection of Individual Income Tax over Investors
of Sole Proprietorships and Partnerships (CaiShui [2000] No.91). The localities shall assess their business income according to the
number of the employees and business scale etc, and assess the rate of taxable income on the basis of the higher profit level of
the same trade of the locality, and the rate shall not be any lower than 25%. The law firms over which the tax is collected upon
verification shall be urged to establish account books, and change the method to tax payment by self-assessment as soon as the necessary
conditions are met.

IV.

The localities shall strictly carry out the Circular of the State Administration of Taxation on the Relevant Business Concerning the
Collection of Individual Income Tax over Income of Practitioners in Law Firms (GuoShuiFa [2000] No.149), and strengthen the administration
of collection of individual income tax over law firms. With respect to the lawyers as employees of law firms, if their expenses for
case handling or other individual expenses are borne by the law firms, the case expenses less than 30% of their income provided for
in Paragraph 2 of Article 5 of Document GuoShuiFa [2000] No.149 shall no longer be deducted in the calculation of their income.

V.

The administration of collection of individual income tax of accounting firms, tax agencies, auditing firms and other intermediary
agencies shall follow the aforesaid principles.

 
The State Administration of Taxation
2002-09-29

 



CIRCULAR ON FURTHER OPENING THE INVESTMENT FIELD OF ROAD TRANSPORT TO FOREIGN INVESTORS

The Ministry of Communications

Circular on Further Opening the Investment Field of Road Transport to Foreign Investors

JiaoGongLuFa [2002] No.551

November 28, 2002

The departments (bureaus, commissions) of communications of the provinces, autonomous regions and municipalities directly under the
Central Government:

In accordance with the relevant commitments of China for the accession to the World Trade Organization (WTO) and the Provisions on
Foreign Investment in Road Transport Industry (Decree of the Ministry of Communications of the People’s Republic of China and the
Ministry of Foreign Trade and Economic Cooperation, No.9 of 2001), the relevant issues concerning the further opening of the investment
field of road transport to foreign investors are hereby notified as follows:

Article 1

From December 1, 2002, upon the approval for projects by the Ministry of Communications, companies, enterprises, other economic organizations
or individuals of foreign countries, and those of Hong Kong, Macao and Taiwan areas (hereinafter referred to as foreign investors)
will be allowed to, jointly with companies, enterprises or other economic organizations of China, establish Chinese-foreign equity
joint road transport enterprises, in which the foreign investors are in the holding position, in the road transport fields such as
road goods transport, road goods convey, loading and unloading, road goods storage and other auxiliary services and vehicle maintenance
etc that relate to road transport, by taking the form of Chinese-foreign equity joint ventures, among which the ratio of foreign
investment may reach 75%.

Article 2

The ratio of foreign investment may be further raised for the Chinese-foreign equity joint road transport enterprises that undertake
container transport, transport of refrigerated and heat preserved goods, multi modal transport of goods, express goods transport,
logistic distribution, car rentals, and testing of automobile comprehensive performance, for the Chinese-foreign equity joint road
transport enterprises that invest to construct and operate infrastructures of goods transport and logistic stations and sites, and
for the Chinese-foreign equity joint road transport enterprises that, jointly with road transport enterprises of the west regions,
engage in the business operations mentioned in Item 1 of this Circular.

Article 3

Upon the approval of the Ministry of Communications, foreign enterprises established in China will be allowed to, by the form of reinvestment,
establish Chinese-foreign equity joint road transport enterprises jointly with road transport enterprises of the west regions, however,
in the newly established Chinese-foreign equity joint road transport enterprises, the ratio of foreign investment may not be lower
than 25%.The approval for projects of foreign investment in road transport industry and the relevant matters shall be dealt with
according to the Regulations on Foreign Investment in Road Transport Industry.



 
The Ministry of Communications
2002-11-28

 






INTERIM PROVISIONS ON THE ADMINISTRATION OF INTERNET CULTURE

The Ministry of Culture

Decree of the Ministry of Culture of the People’s Republic of China

No. 27

The Interim Provisions on the Administration of Internet Culture, which were examined and adopted at the ministerial affairs meeting
of the Ministry of Culture on March 4, 2003, are hereby promulgated, and shall come into force on July 1, 2003.

Sun Jiazheng, Minister of the Ministry of Culture

May 10, 2003

Interim Provisions on the Administration of Internet Culture

Article 1

The Provisions are formulated in accordance with the Measures on the Administration of Internet Information Services and the relevant
provisions of the state in order to strengthen the administration of Internet culture, guarantee the lawful rights and interests
of Internet cultural entities, and promote the healthy and orderly development of China’s Internet culture.

Article 2

Internet cultural products mentioned in the Provisions mean the cultural products produced, disseminated and circulated through Internet,
which mainly include:

(1)

audio and video products;

(2)

game products ;

(3)

show plays (programs);

(4)

works of art;

(5)

cartoons and other cultural products .

Article 3

Internet cultural activities mentioned in the Provisions mean the activities of providing Internet cultural products and services,
which mainly include:

(1)

the activities of producing, reproducing, importing, wholesaling, retailing, leasing or broadcasting Internet cultural products;

(2)

the on-line acts of publishing cultural products on Internet, or sending cultural products through Internet to such user sides as
computers, fixed telephones, mobile phones, radios, TV sets, game players, etc. for Internet accessing users’ browse, reading, appreciation,
use or downloading;

(3)

the activities of exhibitions and competitions, etc. of Internet cultural products.

Internet cultural activities can be divided into two categories, namely, operational and non-operational. Operational Internet cultural
activities mean the activities of providing Internet cultural products and services to obtain benefits by charging fees from Internet
accessing users or by electronic commerce, advertisement, financial supports, etc. for the purpose of making profits. Non-operational
Internet cultural activities mean the activities of providing Internet accessing users with Internet cultural products and services
not for the purpose of making profits.

Article 4

Internet cultural entity mentioned in the Provisions means the Internet information service provider which is approved by the administrative
department of culture and the administrative organ of telecommunication to engage in Internet cultural activities.

Whoever engages in Internet cultural activities inside the territory of the People’s Republic of China shall abide by the Provisions.

Article 5

People engaging in Internet cultural activities shall abide by the Constitution and the relevant laws and regulations, adhere to the
orientation of serving the people and serving socialism, carry forward fine folk culture, disseminate ideas, morals and scientific,
technical and cultural knowledge beneficial to improving the nationality cultural quality, promoting economic development and social
progress, and enrich the people’s spiritual life.

Article 6

The Ministry of Culture shall be responsible for making guidelines, policies and planning for the development and administration of
Internet culture, supervising the Internet cultural activities nationwide; applying a permit system to operational Internet cultural
entities in accordance with the relevant laws, regulations and rules, applying a record system to non-operational Internet cultural
entities; supervising the contents of Internet culture, and punishing the acts in violation of the relevant regulations of the state.

The administrative department of culture under the people’s government of the province, autonomous region or municipality directly
under the Central Government shall be responsible for the daily administration of Internet cultural activities within its own jurisdiction
and the preliminary examination of the entities that apply to engage in operational Internet cultural activities within its own jurisdiction,
as well as for the examination of the entities that apply to engage in non-operational Internet cultural activities within its own
jurisdiction, and the imposition of punishments on the acts of engaging in Internet cultural activities in violation of the relevant
regulations of the state within its own jurisdiction.

Article 7

Whoever applies to establish an Internet cultural entity shall conform to the relevant provisions in the Measures on the Administration
of Internet Information Services, and shall meet the following conditions:

(1)

having the entity’s name, domicile, organizational structure and articles of association;

(2)

having a well-defined scope of Internet cultural activities;

(3)

having business management staff and professional technicians who have obtained the corresponding qualifications fitting in with the
needs of Internet cultural activities;

(4)

having funds, equipment and work sites fitting in with the needs of Internet cultural activities as well as corresponding management
and technical measures;

(5)

other conditions prescribed in laws and regulations.

For the approval of the establishment of an Internet cultural entity, the applicant shall, in addition to meeting the conditions enumerated
in the preceding paragraph, conform to the planning on the total number, structure and distribution of Internet cultural entities.

Article 8

Whoever applies to establish an operational Internet cultural entity shall file the application to the administrative department of
culture under the people’s government of the province, autonomous region or municipality directly under the Central Government at
its locality. The administrative department of culture under the people’s government of the province, autonomous region or municipality
directly under the Central Government shall, after its consent to it upon preliminary examination, submit the application to the
Ministry of Culture for approval.

Whoever applies to establish a non-operational Internet cultural entity shall file the application to the administrative department
of culture under the people’s government of the province, autonomous region or municipality directly under the Central Government
at its locality. The administrative department of culture under the people’s government of the province, autonomous region or municipality
directly under the Central Government shall, after granting the approval upon examination, submit the application to the Ministry
of Culture for record.

Article 9

Whoever applies to establish an operational Internet cultural entity shall submit the following documents:

(1)

the application letter;

(2)

the written notification on pre-approval of the enterprise name or the business license and the articles of association;

(3)

sources and amount of funds and the documents on proof of the applicant’s credit;

(4)

the documents on proof of qualifications and identity of the legal representative or main responsible persons as well as the main
management staff and professionals;

(5)

the documents on proof of the right to use the work site;

(6)

other documents to be submitted in accordance with the law.

For anyone who applies to establish an operational Internet cultural entity, the administrative department of culture under the people’s
government of the province, autonomous region or municipality directly under the Central Government shall, within 30 days as of the
receipt of the application, give its opinion on preliminary examination; if the application is preliminarily examined as qualified,
the said administrative department shall submit it to the Ministry of Culture for approval; if it is preliminarily examined as unqualified,
the said administrative department shall notify the applicant and state the reason thereof. The Ministry of Culture shall, within
30 days as of the receipt of the opinion on preliminary examination, make a decision on whether to approve the application, and notify
the applicant in writing; if the application is approved, a “Network Cultural Business Permit” shall be issued to the applicant;
if the application is not approved, the reason shall be stated.

Article 10

Whoever applies to establish a non-operational Internet cultural entity shall submit the following documents:

(1)

the application letter;

(2)

the articles of association;

(3)

sources and amount of funds and the documents on proof of the applicant’s credit;

(4)

the documents on proof of qualifications and identity of the legal representative or main responsible persons as well as the main
management staff and professionals;

(5)

the documents on proof of the right to use the work site;

(6)

other documents to be submitted in accordance with the law.

For anyone who applies to establish a non-operational Internet cultural entity, the administrative department of culture under the
people’s government of the province, autonomous region or municipality directly under the Central Government shall, within 30 days
as of the receipt of the application, make a decision on whether to approve the application, and notify the applicant in writing;
if the application is approved, an approval document shall be issued to the applicant; if the application is not approved, the reason
shall be stated.

Article 11

Whoever applies to establish an Internet cultural entity shall, after being approved, bring the “Network Cultural Business Permit”
or approval document to the administrative organ of telecommunication at its locality or the administrative department of information
industry under the State Council to go through the relevant formalities in accordance with the Measures on the Administration of
Internet Information Services.

Article 12

An Internet cultural entity shall, at an eye-catching position on the home page of its website, mark the serial number of the “Network
Cultural Business Permit” issued by the administrative department of culture or the serial number of the approval document, and the
serial number of the permit for business operation issued by the administrative department of information industry under the State
Council or the administrative organ of telecommunication of the province, autonomous region or municipality directly under the Central
Government, or the serial number of the record.

Article 13

Where an Internet cultural entity changes its name or scope of business, or is merged or divided, it shall, in accordance with Articles
8, 9 and 10 of the Provisions, go through the formalities for modification, and bring the “Network Cultural Business Permit” or approval
document issued by the administrative department of culture to go through the corresponding formalities in the local administrative
organ of telecommunication.

Article 14

Where an Internet cultural entity changes its address, legal representative or main responsible person, or terminates the Internet
cultural activities, it shall, within 30 days, go through the formalities for modification or cancellation in the administrative
department of culture under the people’s government of the province, autonomous region or municipality directly under the Central
Government at its locality, and go through the formalities for modification or cancellation of its permit for Internet information
services business operation in the administrative organ of telecommunication of the related province, autonomous region or municipality
directly under the Central Government. An operational Internet cultural entity must, when going through the formalities for modification
or cancellation, report to the Ministry of Culture for record.

Article 15

Where an operational Internet cultural entity fails to carry out Internet cultural activities before the expiry of 180 days as of
the day when it obtains the “Network Cultural Business Permit” and makes the enterprise registration in accordance with the law,
the Ministry of Culture shall, either by itself or upon the request by the administrative department of culture under the people’s
government of the province, autonomous region or municipality directly under the Central Government that handled the original examination,
cancel the “Network Cultural Business Permit”, and meanwhile notify the administrative organ of telecommunication of the related
province, autonomous region or municipality directly under the Central Government.

Where a non-operational Internet cultural entity fails to carry out Internet cultural activities before the expiry of 180 days as
of the day when it obtains the approval document, the administrative department of culture under the people’s government of the province,
autonomous region or municipality directly under the Central Government that handled the original examination shall cancel the approval
document, and meanwhile notify the administrative organ of telecommunication of the related province, autonomous region or municipality
directly under the Central Government.

Article 16

An Internet cultural entity shall, if to import Internet cultural products, report to the Ministry of Culture for examination of the
contents.

The Ministry of Culture shall, within 30 days as of the receipt of the application letter for examination of the contents, make a
decision on whether to approve the application, and notify the applicant. If the application is approved, an approval document shall
be issued to the applicant; if the application is not approved, the reason shall be stated.

Article 17

An Internet cultural entity shall not supply a cultural product containing any of the following contents:

(1)

that which defies the basic principles determined in the Constitution;

(2)

that which endangers the unity of the nation, sovereignty or territorial integrity;

(3)

that which divulges secrets of the State, endangers national security or damages the honor or benefits of the State;

(4)

that which incites the nation hatred or discrimination, undermines the solidarity of the nations, or infringes upon national customs
and habits;

(5)

that which propagates evil cults or superstition;

(6)

that which spreads rumors and disturbs the public order or destroys the public stability;

(7)

that which propagates obscenity, gambling, violence or instigates crimes;

(8)

that which insults or libels others, or infringes upon the lawful rights and interests of others;

(9)

that which endangers public ethics or the fine folk culture;

(10)

that which contains other contents prohibited by laws, administrative regulations or by the state.

Article 18

Where a cultural product supplied by an Internet cultural entity infringes upon the lawful rights and interests of a citizen, legal
person or other organization, the Internet cultural entity shall bear the civil liability in accordance with the law.

Article 19

An Internet cultural entity shall apply a system of examination, under which there shall be special examiners who examine the Internet
cultural products, so as to guarantee the lawfulness of the Internet cultural products. The examiners shall accept trainings and
obtain the corresponding employment qualifications before holding their posts.

Article 20

Where an Internet cultural entity finds that an Internet cultural product it supplies contains any of the contents listed in Article
17 of the Provisions, it shall immediately suspend the supply, reserve the relevant records, and report to the administrative department
of culture under the people’s government of the province, autonomous region or municipality directly under the Central Government
at its locality, and make a copied report to the Ministry of Culture.

Article 21

An Internet cultural entity shall record the contents in the back-up of the cultural products, the time and Internet web address or
domain name of the back-up. The back-up of the records shall be kept for 60 days, and be provided when the relevant department of
the state intends to inquire them in accordance with the law.

Article 22

Whoever engages in operational Internet cultural activities without approval shall be investigated and punished by the administrative
department of culture under the people’s government at the provincial level or above in accordance with Article 17 of the Measures
for Investigating, Punishing, and Banning Business Operation without License.

Whoever engages in non-operational Internet cultural activities without approval shall be ordered by the administrative department
of culture under the people’s government at the provincial level or above to make a correction within a time limit; if it refuses
to make a correction, it shall be ordered to suspend the Internet cultural activities, and be imposed upon a fine of not more than
1,000 Yuan.

Article 23

Whoever engages in operational Internet cultural activities by violating Articles 12, 13, 14, 19 and 20 of the Provisions shall be
warned by the administrative department of culture under the people’s government at the provincial level or above, be ordered to
make a correction within a time limit, and be imposed upon a fine of not more than 5,000 Yuan.

Whoever engages in non-operational Internet cultural activities by violating Articles 12, 13, 14, 19 and 20 of the Provisions shall
be warned by the administrative department of culture under the people’s government at the provincial level or above, be ordered
to make a correction within a time limit, and be imposed upon a fine of not more than 500 Yuan.

Article 24

Where an operational Internet cultural entity supplies Internet cultural products containing any content prohibited by Article 17
of the Provisions, or supplies Internet cultural products not approved by the Ministry of Culture to be imported, it shall be ordered
by the administrative department of culture under the people’s government at the provincial level or above to suspend such supply,
and be imposed upon a fine of not more than 10,000 Yuan if there are no illegal proceeds; or be imposed upon a fine of 1 time or
more but 3 times or less of the illegal proceeds if any, provided that the fine shall not exceed 30,000 Yuan; if the case is serious,
it shall be ordered to cease its business for rectification up to suspension of its “Network Cultural Business Permit”.

Where a non-operational Internet cultural entity supplies Internet cultural products containing any content prohibited by Article
17 of the Provisions, or supplies Internet cultural products not approved by the Ministry of Culture to be imported, it shall be
ordered by the administrative department of culture under the people’s government at the provincial level or above to suspend such
supply, and be imposed upon a fine of not more than 1,000 Yuan. If the case is serious, it shall be ordered to cease its business
for rectification up to revocation of its approval document.

Article 25

Whoever violates Article 21 of the Provisions shall be ordered by the administrative organ of telecommunication of the province,
autonomous region or municipality directly under the Central Government to make a correction; if the case is serious, it shall be
ordered by the administrative organ of telecommunication of the province, autonomous region or municipality directly under the Central
Government to cease its business for rectification or to temporarily close its website .

Article 26

The entities that have already engaged in Internet cultural activities in accordance with the relevant provisions of the state prior
to the effectiveness of the Provisions shall, within 60 days as of the effectiveness of the Provisions, make up for the formalities
of examination in accordance with Articles 8, 9 and 10 of the Provisions.

Article 27

The Provisions shall come into force on July 1, 2003.



 
The Ministry of Culture
2003-05-10

 






INTERIM MEASURES GOVERNING NATIONAL HI-TECH INDUSTRY DEVELOPMENT PROJECTS

e00115,e00168,e03855,e046292006022820060401National Development and Reform CommissionOrder of the National Development and Reform CommissionNo. 43In order to carry out and fulfill the spirits of the Fifth Plenary Session of the 16th Congress and the National Science and Technology
Conference, enhance the independent innovation capacity, accelerate the development of hi-tech industries, further regulate and administer
national hi-tech industry development projects, the “Interim Measures Governing National Hi-tech Industry Development Projects” are
formulated, which were deliberated and adopted at the director general’s working meeting of the National Development and Reform Commission,
are hereby promulgated, and shall come into force on April 1, 2006.Director General of National Development and Reform Commission Ma KaiFebruary 28, 2006epdf/e04779.pdfA5, CHi-tech industry, development project, national hi-tech project, research and develop project, engineering laboratory project, engineering
center project, upgrading and adjusting projecte04779Interim Measures Governing National Hi-tech Industry Development ProjectsChapter I General ProvisionsArticle 1 The present Measures are formulated in accordance with the “Law of the People’s Republic of China on Scientific and Technological
Progress”, the “Law of the People’s Republic of China on Promoting the Transformation of Scientific and Technological Achievements”,
the “Decision of the State Council on Reforming the Investment System” and other laws and regulations, as well as the “Interim Measures
for the Administration of Central Budgetary Investment Subsidies and Interest Subsidy Funds” and other provisions, . for the purpose
of regulating and administering the national hi-tech industry development projects, promoting the healthy development of hi-tech
industries, and improving industrial core competence capabilities.Article 2 The present Measures shall apply to the national hi-tech industry development projects which regard the enhancement of independent
innovation capacity and promotion of hi-tech industry development as the main tasks, are listed into the national plan of hi-tech
industry development projects upon approval of the National Development and Reform Commission (hereinafter referred to as “NDRC”),
enjoy central budgetary investment subsidies or loan interest subsidies, are organized and administered by the administrative departments
in charge of projects, and are specifically implemented by the project owners (hereinafter referred to as “national hi-tech projects”).The national hi-tech projects that the funds within the central budgetary are contributed in the form of either direct investment
or capital shall be administered with reference to the relevant provisions of the state.Article 3 National hi-tech projects as mentioned in the present Measures shall include:(1)national hi-tech industrialization projects (hereinafter referred to as “industrialized projects”), which refer to the projects converted
from independent scientific and technological innovation achievements, with the engineering integration and demonstration of key
technologies as the main contents, or with the large-scale application as the objective;(2)national major technical equipment research and major industry technological development projects (hereinafter referred to as “research
and development projects”), which refer to the major technical equipment research projects needed in national key construction engineering
projects, as well as the key technology research and development projects with industrial commonness as urgently needed in optimization
and upgrading of key industrial structures;(3)national industrial technical innovation capacity construction projects, which refer to the national engineering laboratory construction
projects aiming at to break through the technical bottleneck of industry development, improve the engineering and industrialized
research and development of major scientific and technological achievements, and enhance the verification capacities (hereinafter
referred to as “engineering laboratory projects”), the national engineering research center construction projects (hereinafter referred
to as “engineering center projects”), as well as the state-accredited enterprise technical center construction projects aiming at
to improve enterprises’ technical innovation capacities (hereinafter referred to as “technical center projects”);(4)national hi-tech industry technical upgrading and structural adjustment projects, which refer to the construction projects whose main
contents are to reform backward production conditions with advanced technologies, techniques and equipment, and which aim at to promote
the information industry, biological industry, civil aviation and spaceflight industry to enlarge the scale, promote the optimization
and upgrading of industrial structure to drive industrialization with informatization, and actively develop electronic commerce and
enterprise informatization (hereinafter referred to as “upgrading and adjustment projects”); and(5)other national hi-tech industry development projects.Article 4 The term “investment subsidies” as mentioned in the present Measures shall refer to the investment fund subsidies offered by NDRC
to qualified enterprises’ investment projects (including investment projects of public institutions, the same hereafter) and local
governments’ investment projects. The term “loan interest subsidy ” as mentioned in the present Measures shall refer to the loan
interest subsidies offered by NDRC to the qualified investment projects using medium and long-term banking loans. Both investment
subsidies and loan interest subsidy funds (hereinafter referred to as “national subsidy funds”) are gratuitous investment.Chapter II Organization and AdministrationArticle 5 NDRC is the organizing department of national hi-tech projects, and mainly performs the following duties:(1)Researching and proposing the national hi-tech industry development planning and relevant special project planning, as well as the
development policies of the relevant industries;(2)Researching and determining the key areas and tasks of national hi-tech projects;(3)Organizing the appraisal of national hi-tech projects, and approving the application reports for funds used in national hi-tech projects;(4)Working out and distributing annual national hi-tech industry development project plans and investment plans; and(5)Coordinating the implementation of national hi-tech projects, and organizing or consigning the project evaluation work.Article 6 The term ” competent department of projects” as mentioned in the present Measures shall refer to the relevant department of the State
Council, or the development and reform commission or the economic (trade) commission of each province, autonomous region, municipality
directly under the Central Government, municipality under separate state planning, or Xinjiang Production and Construction Corps.The enterprise groups under separate state planning and the enterprises under central management may directly submit their application
reports for funds to NDRC, and shall assume superintendence responsibilities for their respective projects. The specific requirements
shall be prescribed in the announcement or notice on national hi-tech projects.For a national hi-tech project covering different regions or departments, the relevant regions or departments may determine the competent
department of the projects through negotiation, or the project organizing department may designate the competent department of the
projects.The competent department of project shall perform the following main duties:(1)Organizing the relevant work on applying for national subsidy funds for the hi-tech projects of its own department, region or enterprise
(group) according to NDRC’s announcement or notice on national hi-tech projects, making preliminary examination on the construction
conditions of the project and the contents of invitation for bid, etc., submitting the application report for project funds to NDRC
after passing the preliminary examination, and being responsible for the preliminary examination results and declaration materials;(2)Taking charge of managing the national hi-tech projects, coordinating and dealing with the major problems existing in project implementation,
as well as guaranteeing on-time completion of projects and organizing check and acceptance of projects;(3)Cooperating with the relevant departments of the state in the investigation, audit and inspection work; and(4)Collecting the information on implementation of national hi-tech projects in its own department, region or enterprise (group) and
reporting it to NDRC at regular intervals in each year.Article 7 The term “project unit ” as mentioned in the present Measures shall refer to an enterprise or public institution legal person that
is registered under Chinese law and applies for national subsidy funds for a hi-tech project. A project unit shall have sound operation
and management capacity, technical development capacity needed in undertaking national hi-tech projects, and capacities of raising
funds as well as organizing and managing engineering construction.A project unit shall perform the following main duties:(1)Complying with the requirements of the present Measures and the project announcement to work out and submit to the competent department
of project the application report for state subsidy funds for the hi-tech project, and bearing the responsibility for the authenticity
of the materials reported;(2)Implementing the project according to the contents and requirements determined in the application report for project funds, which
is approved by the project organizing department or competent department;(3)Complying with the requirements to report the information on implementation of the project and on provision of funds to the competent
department of project, and to timely report the major issues arising out of implementation of the project;(4)Managing the national subsidy funds on a special account basis;(5)Accepting the evaluations, investigations, audits and inspections made by NDRC, the public finance department or auditing department
at any level, the competent department of project, or the institutions entrusted by any of the foregoing departments; and(6)Complying with the requirements to timely make check and acceptance of the project after achieving the overall objective of the project.Chapter III Application Report and CheckArticle 8 NDRC shall, in accordance with the “National Hi-tech Industry Development Planning”, the “Guidelines for Current Priorities for Development
in Key Sectors of Hi-Tech Industry”, the “Catalogue for the Guidance of Industrial Structure Adjustment”, the “State Industrial Technology
Policies” and other relevant special planning and relevant industrial policies, publish the announcement or notice on national hi-tech
projects, clarify the key areas and tasks supported by the state and the time of implementation thereof, as well as the methods and
standards of arranging national subsidy funds.Article 9 For an enterprise investment project which ought to be ratified or archived by the local government in accordance with the relevant
provisions, the project unit shall, after the ratification or archival filing, file an application report for funds.For a local government investment project which ought to be examined and approved by the local government in accordance with the relevant
provisions, the project unit shall, after the feasibility study report is approved by the approving entity having the power concerned,
file an application report for funds.For a project which ought to be submitted in accordance with the relevant provisions to the State Council or NDRC for approval or
ratification, the project unit may, when submitting the feasibility study report or project application report, file the application
for funds at the same time, without having to separately submit an application report for funds; it may also, after the project is
approved or ratified, separately submit the application report for funds in light of the relevant requirements of the state policies
on investment subsidies and interest subsidy.Article 10 Whoever applies for a national hi-tech project shall meet the following basic conditions:(1)It meets the requirements in NDRC’s project announcement or notice;(2)It conforms to the state industrial policies and meets the requirements on energy conservation, low consumption, environmental protection,
and safety, etc., with the project program being reasonable and feasible, and has good social and economic benefits;(3)It has independent intellectual property rights of China, and the belongingness of the intellectual property rights is clear;(4)The project unit must have strong capacities in technical development, raising funds, implementing the project, and have good credit
rate, and meanwhile, its ratio of debts to assets falls within a reasonable scope, the project has basically met the conditions for
implementation, and the funds needed in the project have been resolved; and(5)The project owner shall accomplish the procedures for approval, ratification or archival filing of the construction project in accordance
with Article 9 of the present Measures, and the project has basically met the conditions for starting the construction, or the construction
has been started but the period from the time of approval, ratification or archival filing has not exceeded two years, and the project
owner who has the environmental protection permit and other permit document has passed the pre-examination on using land or the land
used for the project has been lawfully approved.Article 11 Whoever applies for a national hi-tech project shall also meet the following conditions:(1)The scientific and technological achievements adopted in the industrialized project (including independent intellectual property rights,
digested and absorbed innovations, and the technologies jointly developed by both domestic and foreign developers) shall be advanced
and have good value for extension and application, and be supported with the proof materials such as the certification or technical
test report, etc. issued by the relevant achievement authentication and authoritative institutions, the necessary verification and
production permits; while the project unit shall have strong capacities of organizing and managing engineering construction, and
have the qualification for production and operation of relevant industrialized projects.(2)The research and development scheme of the research and development project is advanced and feasible, and the objective is clear;
the project unit shall have strong capacities of technical innovations and equipment research, and have the research and development
basis in the relevant areas at the prior stage as well as the research and development team, the major technical equipment research
project shall be combined with the supporting projects.(3)The unit of an engineering laboratory project or engineering center project must be a supporting entity of a national engineering
laboratory or be a national engineering research center, which is established upon approval of NDRC and has accomplished the relevant
establishment work; the contents of project construction shall conform to the development direction and tasks of the engineering
laboratory or the engineering research center, and the construction scheme is reasonable.(4)The unit of a technical center project must be an enterprise to which the state-accredited enterprise technical center belongs, and
the state-accredited enterprise technical center is scored 70 or above in the assessment of state-accredited enterprise technical
centers in the latest year; the project shall be able to support the development of the enterprise’s key and core technologies. And(5)An upgrading and adjustment project shall conform to the catalogue on guidance of industrial structure adjustments; the project unit
shall have a good modern enterprise operation mechanism and good operational performance, and shall have the qualification for producing
the relevant products, and the project must have a reasonable economic scale, with the products meeting the relevant national and
international standards.Article 12 A project unit shall work out the application report for project funds in accordance with the relevant provisions in Article 10 and
Article 11 .The specific requirements of the application report for project funds shall be set forth in the project announcement or notification,
which shall include the following main contents:(1)the project unit’s basic information and financial conditions;(2)the basic information on the project, including the background of the project, the contents of project construction (research and
development), total investments and fund sources, techniques, fulfillment of all construction (research and development) conditions,
etc.;(3)the main reason and the policy basis for applying for national subsidy funds;(4)the contents of invitation for bid to the project (applicable to the investment project under application for national subsidy funds
amounting to 5 million Yuan or more); and(5)other contents required to be provided by NDRC’s project announcement or notice.An application report for project funds may be attached with the following relevant documents under different specific circumstances:(1)the approval documents to the feasibility study report of a government investment project or the approval documents on the ratification
or archival filing of an enterprise investment project;(2)the technical sources and the relevant documents proving that the technology is advanced;(3)the opinions issued by the urban planning department on the site selection under the urban planning (applicable to the investment
project within the urban planning area);(4)the opinions issued by the administrative department of land and resources on pre-examination of the land used for the project;(5)the opinions of examination and approval issued by the environmental protection administrative department to the environmental impact
assessment documents;(6)the loan commitments issued by the financial institution, and the loan agreement or contract concluded between the project unit and
the financial institution in the case of a project involving interest subsidy;(7)the statement of the project unit on being responsible for the authenticity of the contents of application report for project funds
and the attached documents; and(8)other documents required to be provided by NDRC’s project announcement or notice.Article 13 The competent department of project shall, in accordance with the relevant provisions in Articles 10 through 12, examine the application
report for project funds which is filed by the project unit, and submit the application report for project funds qualified upon examination
to NDRC. For a project on which the work functions remain with the commission of economic cooperation (trade) at the provincial level,
the commission of economic cooperation (trade) at the provincial level shall be the competent department of project. After consultation
between the commission of economic cooperation (trade) at the provincial level and the development and reform commission at the provincial
level, the development and reform commission at the provincial level shall submit the application report to NDRC jointly with the
commission of economic cooperation (trade) at the provincial level.With respect to the application report for funds composed of incomplete reported materials, NDRC shall timely notify the competent
department of project to supplement the relevant materials within the required time limit.Article 14 With respect to an application report for project funds which is submitted by the competent department of project, NDRC shall organize
a panel to make expert appraisal or shall entrust a consulting institution to make an evaluation, and may, when necessary, solicit
opinions from the relevant department of the State Council or the local government.The panel shall be composed of professional, authoritative, representative and unbiased experts who have no major interests with the
project. The panel shall appraise the project scientifically, objectively and impartially.The panel or the consulting institution shall make the appraisal or evaluation on the project mainly from the following aspects:(1)whether the project technology is advanced or applicable;(2)the driving function of the project to the optimization and upgrading of relevant industries;(3)the project unit’s operational capacity and technical development capacity;(4)the market prospect and economic benefits of the project;(5)the feasibility of the project implementation scheme; and(6)other requirements in NDRC’s project announcement or notice.Article 15 The NDRC shall, in compliance with the principles of being scientific, fair and selecting the best, and according to the experts’
appraisal opinions or the consulting institution’s evaluation opinions, comprehensively consider the opinions of the relevant department
of the State Council and the local government, examine and approve the application reports for project funds, and inform the competent
departments of projects the appraisal or evaluation opinions and the examination results of the projects in proper ways. The approval
documents to the application reports for project funds are the basis for distributing national subsidy funds, and shall include the
overall objectives for implementing the projects, the quota of national subsidy funds and the directions of using the funds. The
approval documents may either be issued separately or concentratively.NDRC shall examine the application report for project funds mainly from the following aspects:(1)conformity to the using direction within the central budgetary funds;(2)conformity to the relevant requirements of the project announcement or notice;(3)conformity to the principles on arrangement of the national subsidy funds;(4)entirety and effectiveness of the relevant submitted documents;(5)fulfillment of the main construction (research and development) conditions of the project; and(6)conformity to other conditions required by NDRC.Article 16 The maximum limitation of the funds arranged by NDRC to a single national hi-tech project shall generally not exceed 200 million Yuan.The funds arranged by NDRC to a single national hi-tech project invested by a local government, with the amount to be 30 million Yuan
or lower, shall all be managed in the form of investment subsidy or interest subsidy, and only the application report for funds needs
to be examined and approved. The funds arranged by NDRC to a single national hi-tech project invested by an enterprise, with the
amount to be 30 million Yuan or lower, may be managed in the form of investment subsidy or loan interest subsidy, under which circumstance
the application report for funds shall be subject to NDRC’s examination and approval; the funds may also be managed by way of contribution
of direct investment or capital, under which circumstance the feasibility study report shall be subject to NDRC’s examination and
approval.Where the funds arranged by NDRC to a single national hi-tech project are between 30 million Yuan and 200 million Yuan and occupy
no more than 50% of the total investments of the project, they may, if the project is invested by a local government, be managed
in the form of investment subsidy or loan interest subsidy, under which circumstance the application report for funds shall be subject
to NDRC’s examination and approval; or may, if the project is invested by an enterprise, either be managed in the form of investment
subsidy or loan interest subsidy, under which circumstance the application report for funds shall be subject to NDRC’s examination
and approval, or be managed by way of contribution of direct investment or capital, under which circumstance the feasibility study
report shall be subject to NDRC’s examination and approval.Where the funds arranged by NDRC to a single national hi-tech project are between 30 million Yuan and 200 million Yuan and occupy
more than 50% of the total investments of the project, or exceed 200 million Yuan, they may be managed by way of contribution of
direct investment or capital, under which circumstance the feasibility study report shall be subject to NDRC’s examination and approval.Article 17 Where the national subsidy funds of a single national hi-tech project exceed 30 million Yuan, NDRC may require the project unit to
submit the budgetary estimation on the preliminary design, and may entrust a consulting institution to make appraisal, and determine
the specific amount of the state-arranged funds according to the appraisal result.Article 18 The national subsidy funds of a single national hi-tech project shall generally be arranged once for all. With respect to a national
hi-tech project to which the national subsidy funds have been arranged, NDRC shall no longer accept its application report for funds
again.Chapter IV Administration of FundsArticle 19 The fund sources of a national hi-tech project shall include the project unit’s own funds, the national subsidy funds, the auxiliary
funds of the relevant department of the State Council or the local government, the bank loans, and other funds raised by the project
unit. The project funds shall generally be raised by the project unit itself, and the state shall provide supports by means of fund
subsidies.Article 20 The project capital raised by a project unit or the funds owned by a research and development project unit itself shall not be lower
than 30% of the newly increased investments to the project. The project capital sources shall include the cash used by the project
unit in the project, the funds raised from issuance of shares, the share funds

1...8910...12Page 9 of 12

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024