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SUPPLEMENTARY PROVISIONS ON THE INTERIM MEASURES FOR THE ESTABLISHMENT OF SINO-FOREIGN JOINT VENTURE FOREIGN TRADE COMPANIES

e03032

Ministry of Commerce

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

No. 10

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, the Supplementary
Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies, which were adopted
at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented
as of January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, encouraging
service providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in foreign trade business, we have
hereby made the following special provisions on the Interim Measures for the Establishment of Sino-Foreign Joint Venture Foreign
Trade Companies (WaiJingMaoBu [2003] Order No. 1) in accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement
and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State Council:

I.

As of January 1st, 2004, service providers from Hong Kong and Macao shall be permitted to establish foreign trade companies within
the Mainland by means of joint venture, cooperative or solely funded enterprise.

II.

For the establishment of a foreign trade company, the average trade amount with the Mainland by a service provider from Hong Kong
or Macao during the three years prior to the application shall be no less than US$10 million. For the establishment of a foreign
trade company in the central and western regions of the Mainland, the average trade amount with the Mainland by a service provider
from Hong Kong or Macao during the three years prior to the application shall be no less than US$5 million.

III.

Where a service provider from Hong Kong or Macao files an application to establish a foreign trade company, the registered capital
of the foreign trade company shall be no less than RMB20 million Yuan; if the service provider establishes a foreign trade company
in the central and western regions, such registered capital shall be no less than RMB10 million Yuan.

IV.

With regard to other matters for service providers from Hong Kong and Macao to invest in the Mainland to establish foreign trade companies,
the Interim Measures on Establishing Sino-foreign Joint Venture Foreign Trade Companies shall still be applied.

V.

The service providers from Hong Kong and Macao mentioned in the present Supplementary Provisions shall respectively meet the requirements
in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement
on the definition of “service provider”, and in other relevant provisions, as well.

VI.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VII.

The present Supplementary Provisions shall be implemented as of January 1st, 2004.



 
Ministry of Commerce
2003-12-07

 






SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN-FUNDED INTERNATIONAL FREIGHT AGENCY ENTERPRISES

20051211

Ministry of Commerce

Order of the Ministry of Commerce of the People’s Republic of China

No. 12

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, the Supplementary
Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises, which were adopted
at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented
on January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises

With a view to promoting Hong Kong and Macao to establish closer economic and trade relationship with the Mainland, encouraging service
providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in international freight agency, we have
hereby made the following supplementary provisions on the Measures for the Administration of Foreign-Funded International Freight
Agency Enterprises (Order No. 36 [2002] of the Ministry of Foreign Trade and Economic Cooperation) pursuant to the Mainland and Hong
Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State
Council:

I.

Since January 1st, 2004, service providers from Hong Kong and Macao are permitted to establish international freight agency enterprises
within the Mainland by means of joint venture, cooperation or solely-funded enterprise.

II.

The minimum amount of the registered capital of a qualified service provider from Hong Kong or Macao that invests in the Mainland
to establish an international freight agency enterprise shall meet the following requirements:

(1)

Where he/it runs maritime international freight agency, the minimum amount of his/its registered capital shall be 5 million Yuan;

(2)

Where he/it runs aerial international freight agency, the minimum amount of his/its registered capital shall be 3 million Yuan;

(3)

Where he/it runs overland international freight agency or international express delivery, the minimum amount of his/its registered
capital shall be 2 million Yuan.

Where he/it runs two or more items of business in the preceding paragraph, the minimum amount of his/its registered capital shall
be the minimum amount of the higher/highest one.

An international freight agency enterprise shall, for each branch engaging in international freight agency that it intends to establish,
add 500,000 Yuan of registered capital.

III.

As for other matters for service providers from Hong Kong and Macao to apply in the Mainland for establishing international freight
agency enterprises, the Measures for the Administration of Foreign-Funded International Freight Agency Enterprises shall still be
followed.

IV.

The service providers from Hong Kong and Macao as mentioned in the present Supplementary Provisions shall separately meet the requirements
in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement
on the definition of service providers, and in other relevant provisions, as well.

V.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VI.

The present Supplementary Provisions shall be implemented on January 1st, 2004.



 
Ministry of Commerce
2003-12-07

 






MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

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Ministry of Culture, Ministry of Commerce

Order of Ministry of Culture, Ministry of Commerce of the People’s Republic of China

No. 28

Measures for Administration of Chinese-foreign Cooperative Audio-video Product Distribution Enterprises are hereby promulgated and
shall come into force as of January 1, 2004. Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises
promulgated on December 10, 2001 shall be repealed concurrently.

Sun JiaZheng, Minister of Ministry of Culture

Lu FuYuan, Minister of Ministry of Commerce

December 8th, 2003

Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises

Article 1

The present Measures are hereby formulated in accordance with the law of the People’s Republic of China on Chinese-foreign Cooperative
Enterprises, the Regulations on the Administration of Audio-video Products and other laws and regulations for the purpose of enlarging
foreign culture exchange and economic cooperation as well as strengthening the administration on Chinese-foreign Cooperative Audio-video
products distribution enterprises.

Article 2

The present Measures shall be applicable to the Chinese-foreign cooperative audio-video product distribution enterprises established
in the territory of china.

The term of Chinese-foreign cooperative audio-video product enterprise refers to, in light of the principles of equality and mutual
benefits, upon the approval of relevant departments of the Chinese government, foreign enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign cooperator) cooperatively established inside the territory of the People’s
Republic of China with Chinese enterprises and other economic organizations (hereinafter referred to as the Chinese cooperators)to
engage in the business of wholesale, retail and lease of the audio-video products.

The term “the audio-video products” refers to audio tapes, video tapes, gramophone records, laser audio discs, and laser video discs,
etc. on which contents are recorded.

Article 3

The Chinese-foreign cooperative audio-video product distribution enterprise must abide by the related laws and regulations, and disperse
thoughts, ethics, science and technology, cultural knowledge that are beneficial to the development of economy and the social progress.

Article 4

The legitimate business activities of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises and the legitimate
rights and interests of the cooperators shall be subject to the protection of Chinese law.

Article 5

Ministry of Culture and Ministry of Commerce, as well as their authorized competent departments of culture and commerce at the provincial
level shall be responsible for the examination and approval of and supervision over the Chinese-foreign cooperative audio-video product
distribution enterprises.

The responsible departments of culture and the responsible departments of commerce of the local people’s governments at the county
level or above shall, in accordance with separate functions and duties, be responsible for the everyday supervision and administration
for the Chinese-foreign cooperative audio-video product distribution enterprises within their own administrative regions.

Article 6

The establishment and development of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises shall follow the
development planning of the market of the audio-video market.

Article 7

The Chinese cooperator and foreign cooperator applying for establishing a Chinese-foreign cooperative audio-video product distribution
enterprises shall have the corresponding capacity for establishing the audio-video product distribution enterprises; and shall be
capable for bearing the civil responsibility independently and have no illegal records during the three consecutive years before
the application.

Article 8

The Chinese-foreign cooperative audio-video product distribution enterprises shall meet the following conditions:

(1)

Having independent status as a legal person;

(2)

Meeting the requirements of the state on the establishment of the audio-video product distribution enterprises;

(3)

Having funds adequate to its operation scale;

(4)

The equity owned by the Chinese cooperator is no less than 51 percent; and

(5)

The term of cooperation shall not exceed 15 years.

Article 9

Where Chinese-foreign cooperative audio-video product distribution enterprises apply for engaging in the chain operation of the audio-video
products or for operating the audio-video products by using the information in network, it shall go through the procedures for examination
and approval in accordance with the provisions of the state on the chain operation of the audio-video products and on operating the
audio-video products by using the information in network.

Article 10

Where a Chinese cooperator takes the stated owned assets as cooperated term, it shall get the approval of the superior state-owned
assets supervision and administration departments, in accordance with the related provisions of the evaluation and administration
for the stated-owned assets, and the evaluation institution specified by the state-owned assets supervision and administration departments
shall valuate for the stated-owned assets as the cooperated term. The valuation result shall be defined by the corresponding state-owned
assets supervision and administration departments in accordance with the provisions of the administration of state-owned assets.

Article 11

The establishment of the Chinese-foreign cooperative audio-video product distribution enterprises of audio-video products engaging
in the wholesale business of the audio-video products shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the province, autonomous regions and municipalities
directly under the Central Government where the distribution Chinese-foreign cooperative Audio-video Product Distribution Enterprises
of audio-video products to be established, and the mentioned above departments shall submit to Ministry of Commerce for making program,
examination and approval. Ministry of Culture shall make the decision of approval or not within 30 working days; the reason thereof
shall be stated in writing if the application is not approved.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by Ministry of Culture, apply
to the competent departments of commerce of the province, autonomous regions and municipalities directly under the Central Government
where the audio-video product distribution enterprises to be established is located for the establishment of such an enterprise.
The mentioned above departments shall submit to Ministry of Commerce for examination and approval after its check and approval. Ministry
of Commerce shall make a decision of approval or not within 30 working days. Upon the approval, an Approval Certificate for Enterprise
with Foreign Investment shall be issued to the applicant. If not, the reasons thereof shall be stated in writing.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprise with Foreign Investment
issued by the Ministry of Commerce, apply to the Ministry of Culture on behalf of the Chinese-foreign cooperative audio-video product
distribution enterprises to be established for the Operation Permit for Audio-video Products upon strength of the approval documents
on project initiation issued by the Ministry of Culture and the Approval Certificate for Enterprises with Foreign Investment issued
by the Ministry of Commerce.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by Ministry
of Culture, and upon strength of the Operation Permit for Audio-video Products and the Approval Certificate for Enterprise with Foreign
Investment, go through the registration procedures and obtain the Business License of an Enterprise Legal Person in compliance with
the provisions of the administration for industry and commerce.

Article 12

the Chinese cooperator shall submit the following documents to Ministry of Culture while proposing the application for project initiation:

(1)

The application for project initiation which shall specify the name, address, scope of business, the source of the invested funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals and feasibility study report programmed and admitted commonly by both/all cooperator;

(3)

The business license or certification of registration, certification of qualification by every cooperated cooperator and the valid
certification of the legal representatives;

(4)

The appraisal and confirming documents issued by the state-owned assets administration departments of the state-owned assets to be
invested by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation); and

(5)

Other documents as required by Ministry of Culture.

Article 13

the Chinese cooperator shall submit the following documents to Ministry of Commerce while proposing the application for establishing
the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment;

(2)

A project proposals or feasibility study report programmed and admitted commonly by every cooperated cooperator, and approved by Ministry
of Culture;

(3)

The approval documents for project initiation of the cooperation project issued by Ministry of Culture

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established
signed by the representatives authorized by both/all cooperators;

(5)

The confirming documents issued by the state-owned assets administration departments of the state-owned assets on appraising report
of the state-owned assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets
as a means of cooperation);

(6)

The cooperators￿￿ business license or certification of registration, credit certificates and the valid certificates of the legal representatives;

(7)

The notice of pre-approval for the name of the cooperative enterprise to be established;

(8)

The name list of the chairman, vice chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprises, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by Ministry of Commerce.

Article 14

In case of any major change of Chinese-foreign cooperative audio-video product distribution enterprises, such as change of the investors,
adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change of scope
of business, change of operational period, or change of establishment of the branches, the enterprise shall go through the procedures
for approval in accordance with Article 11 of the present Measures.

Other changes of the Chinese-foreign cooperative audio-video product distribution enterprises shall, in accordance with related provisions
of the foreign investment enterprises, be submitted to the Ministry of Commerce for approval or record. In the case of the change
of legal address, legal representative, the main responsible person and termination of the business activity due to expiry of operational
period, the Chinese-foreign cooperative audio-video product distribution enterprises shall also report to Ministry of Culture for
record within 30 days.

Article 15

The establishment of a Chinese-foreign cooperative audio-video product distribution enterprises that engages in the retail and leasing
business, shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the level of province where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located, and then the competent departments of culture shall make
the decision on whether to approve the project initiation within 30 working days; if the application is rejected, the reasons for
it shall be stated in writing.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by the competent departments
of culture at provincial level, apply to the competent departments of commerce at provincial level where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located for the establishment of such an enterprise, and then the
competent departments of commerce at provincial level shall, within 30 working days, make a decision on whether to approve or not;
the reason for it shall be stated in writing explanation if the application is rejected.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprises with Foreign Investment
issued by the competent departments of Commerce at the provincial level, apply to the competent department of culture at the provincial
level on behalf of the Chinese-foreign cooperative audio-video product distribution enterprise to be established for the Operation
Permit for Audio-video Products upon strength of the approval documents on project initiation issued by the competent department
of culture at the provincial level and the Approval Certificate for Enterprises with Foreign Investment issued by the competent department
of commerce at the provincial level.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by the
competent departments of culture at provincial level, and upon strength of the Operation Permit for Audio-video Products and the
Approval Certificate for Enterprises with Foreign Investment, go through the registration procedures and obtain the Business License
of an Enterprise Legal Person in compliance with the provisions on the industry and commerce administration,

Article 16

The Chinese cooperator shall submit the following documents to the competent departments of culture at the provincial level while
proposing the application for project initiation:

(1)

The application for project initiation, which shall specify the name, address, scope of business, the source of the investment funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals or feasibility study report worked out or recognized by both/all cooperators;

(3)

The business license or certificates of registration, credit certificates of every cooperator and the valid certificates of the legal
representatives;

(4)

The confirmation documents issued by the administrative departments of the state-owned assets on the appraising report of state-owned
assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation);
and

(5)

Other documents as required by the competent departments of culture at the provincial level.

Article 17

The Chinese cooperator shall submit the following documents to the competent departments of commerce at provincial level while proposing
the application for establishing the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment:

(2)

A project proposals and feasibility study report worked out and recognized by both/all cooperators, and approved by the competent
departments of commerce at the provincial level;

(3)

The approval documents on project initiation under cooperation issued by the competent departments of commerce at the provincial level;

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established,
which are executed by the representatives authorized by both/all cooperators.

(5)

The confirmation documents issued by the state-owned assets administration departments on the appraising report and the state-owned
assets to be used as a means of investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a
means of investment);

(6)

The business license or registration certificates, credit certificates of the cooperators and the valid certificates of the legal
representative;

(7)

The notice of pre-approval for the name of the cooperative enterprises to be established;

(8)

The name list of the chairmen, vice-chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprise, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by the competent departments of commerce at the level of province.

Article 18

In case of any major change in a Chinese-foreign cooperative audio-video product retail or leasing enterprises, including change of
any investor, adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change
of the business scope, change of the operational period or the establishment of the branches, the enterprise shall go through the
procedures for approval in accordance with article 15 of the Measures hereby.

In the case of other changes of the Chinese-foreign cooperative audio-video product distribution enterprises, the enterprise shall,
in accordance with related provisions of the enterprises with foreign investment, report to the competent departments of commerce
at the provincial level for approval or record.

In the case of the change of legal address, legal representative, the main responsible person and termination of the business activity
due to expiry of operational period, the Chinese-foreign cooperative audio-video product distribution enterprises shall report to
the competent departments of culture at the provincial level for putting on records within 30 days.

Article 19

The Chinese-foreign cooperative audio-video product distribution enterprises shall engage in the business activities of audio-video
products within the approved scope of business.

Article 20

No Chinese-foreign cooperative audio-video product distribution enterprises may operate any audio-video products, which contains any
contents prohibited by the state from being dispersed; or which is published by non audio-video publishing entities or reproduced
by non audio-video product reproducing entities; or which is imported without the approval of Ministry of Culture; or which infringes
on the copyright of others.

Article 21

No Chinese-foreign cooperative audio-video product distribution enterprises may engage in the business of importing the audio-video
products

Article 22

Whoever, without the approval of the Ministry of Culture and the Ministry of Commerce and without authorization, establishes Chinese-foreign
cooperative audio-video product distribution enterprises, or engages in the business of distributing audio-video products with foreign
investment without approval, shall be punished by related departments of the state according to law. And the relevant person liable
shall be prosecuted for liabilities.

Article 23

Where the investors of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan of China establish
the distribution Chinese-foreign cooperative audio-video product distribution enterprises of the audio-video products within other
provinces, autonomous regions and municipalities directly under the Central Government, it shall implement by reference to the present
measures hereby.

Article 24

The power to interpret the present measures remains with the Ministry of Commerce and Ministry of Culture.

Article 25

The present measures and the annexes shall be effective as of the date of January 1, 2004; The administrative measures of Chinese-foreign
cooperative audio-video product distribution enterprises promulgated on December 10, 2001 by Ministry of Culture and Ministry of
Foreign Trade and Economic Cooperation shall be repealed simultaneously.

Annex:

In order to promote closer economic and trade relations between Hong Kong, Macao and the mainland, and encourage the service providers
in Hong Kong and Macao to establish the audio-video product distribution enterprises in the mainland, in accordance with the arrange
on establishing closer economic and trade relations between Hong Kong and the mainland, as well as the arrange on establishing closer
economic and trade relations between Macao and the mainland upon the approval of the State Council, the following special provisions
shall be made hereby on the related issues that the service providers in Hong Kong and Macao to establish the audio-video product
distribution enterprises prescribed by measures for administration of distribution Chinese-foreign cooperative audio-video product
distribution enterprises.

1.

From the date of January 1, 2004, the providers with service in Hong Kong and Macao are permitted to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the form of equity joint ventures in the mainland.

2.

The providers with service in Hong Kong and Macao may possess the majority of the shareholders, but not more than 70 percent.

3.

The providers with service in Hong Kong and Macao may possess the proportion of rights and interests not more than 70 percent in the
contractual joint ventures.

4.

Other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign cooperative audio-video product
distribution enterprises in the mainland shall be governed by administrative measures of Chinese-foreign cooperative audio-video
product distribution enterprises. While other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the mainland shall be implemented by reference to administrative measures
of Chinese-foreign cooperative audio-video product distribution enterprises.

5.

The service providers in Hong Kong and Macao defined in the provisions shall comply with the requests of related provisions and the
definition specified by the arrange on establishing closer economic and trade relations between Hong Kong and the mainland, as well
as the arrange on establishing closer economic and trade relations between Macao and the mainland separately.

6.

The present provisions shall be interpreted by Ministry of Commerce and Ministry of Culture in accordance with respective functions.



 
Ministry of Culture, Ministry of Commerce
2003-12-08

 






MEASURES FOR THE ADMINISTRATION OF THE INVESTMENT AND SHAREHOLDING IN CHINESE-FUNDED FINANCIAL INSTITUTIONS BY OVERSEAS FINANCIAL INSTITUTIONS

China Banking Regulatory Commission

Order of the China Banking Regulatory Commission

No.6

The Measures for the Administration of the Investment and Shareholding in Chinese-funded Financial Institutions by Overseas Financial
Institutions have been approved by the State Council and are hereby issued.

Liu Mingkang, the Chairman of the China Banking Regulatory Commission

December 8, 2003

Measures for the Administration of the Investment and Shareholding in Chinese-funded Financial Institutions by Overseas Financial
Institutions

Article 1

The present Measures are formulated with a view of regulating the overseas financial institutions’ investment and shareholding in
Chinese-funded financial institutions, and optimizing the capital structure of Chinese-funded financial institutions.

Article 2

The present Measures shall be applicable to the overseas financial institutions investing and holding shares in Chinese-funded financial
institutions.

The term “overseas financial institutions” as used herein include international financial institutions and financial institutions
of overseas countries. The term “international financial institutions” refers to the World Bank and the affiliated agencies thereof,
other intergovernmental development financial institutions, and other international financial institutions recognized by the China
Bank Regulatory Commission (hereinafter referred to as CBRC); the term “financial institutions of overseas countries” refers to the
financial holding companies, commercial banks, securities companies, insurance companies, and funds that are registered in overseas
countries, and other overseas financial institutions recognized by CBRC.

The term “Chinese-funded financial institutions” as used herein refers to the Chinese-funded commercial banks, urban credit cooperatives,
rural credit cooperatives, trust and investment companies, enterprise group finance companies, and financial leasing companies that
are set up within China in the light with law, and other Chinese-funded financial institutions that are set up upon approval of CBRC.

The term “proportion of the investment or shareholding” as used herein refers to the share that the capital contributed or the shares
held account for in the paid-in total capital or total shares of the Chinese-funded financial institution.

Article 3

CBRC shall be responsible for supervising and administering the overseas financial institutions’ investment and shareholding in Chinese-funded
financial institutions in the light with law.

Article 4

A overseas financial institution shall obtain the approval of CBRC so as to make investment or hold shares in a Chinese-funded financial
institution.

Article 5

An overseas financial institution shall, when making investment or holding shares in a Chinese-funded financial institution, do so
on the basis of good credit and with the goal of medium-and long-term investment.

Article 6

An overseas financial institution shall, when making investment or holding shares in a Chinese-funded financial institution, make
the capital contribution in money.

Article 7

In order to invest or hold shares in Chinese-funded financial institutions, an overseas financial institution shall meet the conditions
as follows:

1)

In a general principle, for making investment or holding shares in a Chinese-funded commercial bank, the total assets of the overseas
financial institution at the end of the last year shall, as, be no less than 10 billion US dollars; for making investment or holding
shares in a Chinese-funded urban credit cooperative or rural credit cooperative, the total assets at the end of the last year shall
be no less than 1 billion US dollars; for making investment or holding shares in a Chinese-funded non-bank financial institution,
the total assets at the end of the last year shall be no less than 1 billion US dollars;

2)

The long-term credit rank given by an international ranking institution recognized by CBRC for that overseas financial institution
is good;

3)

The overseas financial institution has made profit for two consecutive fiscal years;

4)

If the overseas financial institution is a commercial bank, the capital adequacy rate shall be no less than 8%; if it is a non-bank
financial institution, the total amount of capital shall be no less than 10% of the total amount of the risk-weighted assets;

5)

The overseas financial institution has sound internal control system;

6)

The place of registration of the overseas financial institution has sound supervision and administration system;

7)

The home country (region) of the overseas financial institution has satisfactory economic status; and

8)

Other prudential conditions required by CBRC.

In the light with the risk status of the financial industry and the needs of regulation, CBRC may adjust the qualification requirements
for overseas financial institutions, which intend to make investment and hold shares in Chinese-funded financial institutions.

Article 8

The proportion of the investment or shareholding in a Chinese-funded financial institution by a single overseas financial institution
may be no more than 20%.

Article 9

If the total proportion of the investment or shareholding in a non-listed Chinese-funded financial institution by several overseas
financial institutions reaches or exceeds 25%, that non-listed financial institution shall be considered an overseas-funded financial
institution in the supervision and administration.

If the total proportion of the investment or shareholding in a listed Chinese-funded financial institution by several overseas financial
institutions reaches or exceeds 25%, that listed financial institution shall still be considered a Chinese-funded financial institution
in the supervision and administration.

Article 10

In the case that an overseas financial institution intends to make investment or hold shares in a Chinese-funded financial institution,
the Chinese-funded financial institution that absorbs the investment shall act as the applicant and submit the application to CBRC:

1)

In the case that a commercial bank solely funded by the state, or a joint stock commercial bank, or any other non-bank financial institution
directly under the control of CBRC absorbs the investment of an overseas financial institution, the applicant shall directly submit
the application to CBRC for approval;

2)

In the case that any Chinese-funded financial institution other than those provided for in Item 1) of this Article absorbs the investment
of an overseas financial institution, the applicant shall submit the application to the provincial agency of CBRC of the place where
it is located, and the agency shall submit the application to CBRC for approval after examination.

Article 11

A Chinese-funded financial institution shall submit the following documents when submitting the application to CBRC for absorbing
overseas investment:

1)

Application form of the Chinese-funded financial institution for absorbing overseas investment;

2)

Resolution of the shareholders’ meeting or the board of directors of the Chinese-funded financial institution on agreement with the
absorption of investment or the document of approval of the competent authority at the higher level;

3)

Resolution of the shareholders’ meeting or the board of directors of the overseas financial institution on agreement with investing
and holding shares in the Chinese-funded financial institution;

4)

Agreement of intent signed by the two parties;

5)

Annual reports, or audited balance sheets, statements of profits, and other financial statements of the overseas financial institution
for the last three years;

6)

Information about the source of fund and the business operations of the overseas financial institution, etc.; and

7)

Other relevant documents required by CBRC.

In the case that the investor is an overseas financial institution, the Chinese-funded financial institution shall also submit the
ranking reports of that overseas financial institution for the last two years made by an international ranking institution recognized
by CBRC, and the documents of approval of the financial authority of the place of registration of that overseas financial institution.

Article 12

CBRC shall, within 3 months from receiving the complete set of application documents, make the decision on whether or not to grant
the approval; and if it decides not to grant the approval, it shall notify the applicant in writing and explain the reasons.

Article 13

An overseas financial institution shall, within 60 workdays from receiving the decision of approval of CBRC, transfer the capital
in full amount to the account of the Chinese-funded financial institution, and the amount of the capital shall be validated by an
accounting firm recognized by CBRC.

Article 14

In the case that a Chinese-funded financial institution makes any alteration of its registered capital or shareholding structure as
a result of the investment or shareholding by any overseas financial institution, it shall carry out alteration formalities in accordance
with the relevant provisions.

Article 15

In the case that a Chinese-funded financial institution, in violation hereof, changes the shareholders or adjusts the shareholding
structure without permission, CBRC shall punish it in the light with the relevant provisions.

Article 16

In the case that an overseas financial institution that has already invested or held shares in a Chinese-funded financial institution
increases its proportion of shareholding, the relevant provisions hereof shall be applicable.

Article 17

The present Measures shall be applicable to the investment and shareholding in Chinese-funded financial institutions by financial
institutions from Hong Kong, Macao and Taiwan area; and if the State Council has otherwise provisions, such provisions shall be applicable.

Article 18

The present Measures shall not apply to the purchase of negotiable shares of listed Chinese-funded financial institutions by qualified
overseas institutional investors.

Article 19

Investment and shareholding in automobile financial companies shall be administrated by the relevant provisions of the Measures for
the Administration of Automobile Financial Companies.

Article 20

The authorization to interpret the present Measures shall remain with CBRC.

Article 21

The present Measures shall go into effect on December 31, 2003. In the case that any relevant documents issued prior to the implementation
hereof conflict with the present Measures, the latter shall prevail.



 
China Banking Regulatory Commission
2003-12-08

 






NOTICE OF THE MINISTRY OF CIVIL AFFAIRS ON THE ISSUES CONCERNING THE REGISTRATION OF SINO-FOREIGN COOPERATIVE EDUCATIONAL INSTITUTIONS

Ministry of Civil Affairs

Notice of the Ministry of Civil Affairs on the Issues concerning the Registration of Sino-foreign Cooperative Educational Institutions

Ministry of Civil Affairs

December 12, 2003

The departments (bureaus) of civil affairs of all provinces, autonomous regions and municipalities directly under the jurisdiction
of the Central Government, the bureaus of civil affairs of the cities directly under state planning and the Bureau of Civil Affairs
of Xinjiang Production and Construction Corps:

The Regulations of the People’s Republic of China on Chinese-foreign Cooperative Education promulgated by the State Council (hereinafter
referred to as the Regulations) have come into force on September 1 of this year. In order to regulate the administration on the
registration of Sino-foreign cooperative educational institutions, we inform you of the relevant issues as follows:

I.

The Sino-foreign cooperative educational institutions that apply for being registered as private non-enterprise entities may, after
obtaining the licenses of Sino-foreign cooperative education, be registered as private non-enterprise entities in the light with
Article 20 of the Regulations and Article 12 of the Interim Regulations on the Administration of Registration of Private Non-enterprise
Entities.

II.

The application for being registered as a private non-enterprise entity submitted by a Sino-foreign cooperative institution shall
be handled by the department of civil affairs of the same level as the administrative department of education of the government and
the administrative department of labor of the government that have issued the license of Sino-foreign cooperative education. If the
license of Sino-foreign cooperative education is issued by the people’s government of a province, autonomous region or municipality
directly under the jurisdiction of the Central Government upon examination and approval, the application shall be handled by the
department of civil affairs of the people’s government of the province, autonomous region and municipality directly under the jurisdiction
of the Central Government.

III.

In the case that a Sino-foreign cooperative institution applies for being registered as a private non-enterprise entity, the fund,
the practicality, the intellectual property and other properties shall be regarded as non-state-owned assets. The share of non-state-owned
capital and assets in the registered capital contributions shall not be less than two thirds of the total capital and assets.

IV.

A Sino-foreign cooperative education institution that applies for being registered as a private enterprise entity shall use the Private
Non-enterprise Entity (juridical person) Registration Certificate. According to the Regulations, the Private Non-enterprise Entity
(Partnership) Registration Certificate may be used for establishing Sino-foreign cooperative institutions without juridical person
qualification.

V.

In the case that any educational institutions in Hong Kong Special Administrative Region, Macao Special Administrative Region and
Taiwan cooperate with the educational institutions in the Mainland of China, the provisions mentioned above shall be referred to.

In view of the strict policy and difficulties of Sino-foreign cooperative education, the administration shall be strengthened practically
in handling the applications for being registered as private non-enterprise entities filed by Sino-foreign cooperative educational
institutions. Any new circumstance and problems occurring at the work shall be reported to the department of the administration of
non-governmental organizations of the Ministry of Civil Affairs so as to be solved in time.



 
Ministry of Civil Affairs
2003-12-12

 






REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CUSTOMS PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

e03194

State Council

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

No. 395

The Regulation of the People’s Republic of China on the Customs Protection of Intellectual Property Rights, which was adopted at the
30th executive meeting of the State Council on November 26th, 2003, is hereby promulgated, and shall be implemented on March 1st,
2004.

Wen Jiabao,Premier of the State Council

December 2nd, 2003

Regulation of the People’s Republic of China on the Customs Protection of Intellectual Property Rights

Chapter I General Provisions

Article 1

The present Regulation is formulated in accordance with the Customs Law of the People’s Republic of China in order to carry out the
customs protection of intellectual property rights, to promote economic and trade contacts as well as scientific, technological and
cultural contacts with foreign countries, and to maintain public benefits.

Article 2

Customs protection of intellectual property rights mentioned in the present Regulation refers to the protection practiced by the customs
of the rights to exclusive use of trademarks, copyrights and copyright-related rights, patent rights (hereinafter uniformly referred
to as intellectual property rights), which are related to imported and exported goods and protected by the laws and administrative
regulations of the People’s Republic of China.

Article 3

The State prohibits the import and export of goods infringing intellectual property rights.

The customs shall, according to relevant laws and the present Regulation, practice protection of intellectual property rights, and
execute the relevant powers provided for in the Customs Law of the People’s Republic of China.

Article 4

Where an intellectual property rights holder requests the customs to practice protection of his intellectual property rights, he shall
file an application to the customs for taking protective measures.

Article 5

A consignee of imported goods or his agent, or a consigner of exported goods or his agent shall, according to the provisions of the
State, truthfully declare to the customs the status of his intellectual property rights in relation to the imported or exported goods,
and shall submit relevant certification documents.

Article 6

When practicing protection of intellectual property rights, the customs shall keep the commercial secrets of the relevant parties.

Chapter II Archival Filing of Intellectual Property Rights

Article 7

An intellectual property rights holder may, in pursuance of the present Regulation, file an application to the Customs General Administration
for archival filing of his intellectual property rights; when applying for archival filing, he shall submit an application letter,
which shall cover the following contents:

(1)

The intellectual property rights holder’s name, and his place of registration or his nationality, etc.;

(2)

The name and contents of as well as the relevant information on the intellectual property;

(3)

The status of permission to exercise the intellectual property;

(4)

The name and place of origin of the goods for which the intellectual property rights holder lawfully exercises the intellectual property,
the customs of entry or exit, the importer and exporter, the main features and the price, etc. of such goods;

(5)

The manufacturer, importer and exporter of the goods which are known to have infringed the intellectual property, the customs of entry
or exit, the importer and exporter, the main features and the price, etc. of such goods.

The intellectual property rights holder shall attach certification documents, if any, contained in the contents of the application
letter in the preceding paragraph.

Article 8

The Customs General Administration shall, within 30 working days as of day it receives all the application documents, make a decision
on whether or not to permit the archival filing, and notify the applicant in writing; if it does not permit the archival filing,
it shall explain the reason thereof.

In the case of any of the following circumstances, the Customs General Administration shall not permit the archival filing:

(1)

The application documents are incomplete or null and void;

(2)

The applicant is not the intellectual property rights holder;

(3)

The intellectual property is no longer protected by laws or administrative regulations.

Article 9

Where the customs finds that an intellectual property rights holder who applies for archival filing for his intellectual property
rights does not truthfully provide the relevant information or documents, the Customs General Administration may cancel the archival
filing therof.

Article 10

The archival filing of customs protection of an intellectual property right shall become valid as of the day when the Customs General
Administration permits the archival filing, with 10 years of validity period .

Where an intellectual property right is valid, the right holder may, within 6 months prior to the expiry of the validity period for
the archival filing of customs protection of the intellectual property rights, apply to the Customs General Administration for renewal
of the archival filing. The validity period for the renewed archival filing of each time shall be 10 years.

Where an intellectual property right holder does not apply for renewal at the expiry of the validity period for archival filing of
the customs protection of the intellectual property rights, or the intellectual property right is no longer protected by laws or
administrative regulations, the aforesaid archival filing shall be invalidated immediately.

Article 11

Where an archived intellectual property is changed in any way, the intellectual property rights holder shall, within 30 working days
as of such change, modify or nullify the archival filing in the Customs General Administration.

Chapter III Application for and Handling of Detainment of Suspected Infringing Goods

Article 12

Where an intellectual property right holder finds that any suspected infringing goods are about to be imported or exported, he may
submit an application to the customs at place of entry or exit for detainment of such goods.

Article 13

Where an intellectual property right holder requests the customs to detain any suspected infringing goods, he shall submit an application
letter and relevant certification documents, and provide evidence sufficient to prove the obvious existence of the infringement facts
as well.

An application letter shall cover the following main contents:

(1)

The intellectual property rights holder’s name, and his place of registration or his nationality, etc.;

(2)

The intellectual property’s name, contents, and relevant information;

(3)

The names of both the consignee and the consigner of the suspected infringing goods;

(4)

The name and specifications, etc. of the suspected infringing goods; and

(5)

The possible port and time of entry or exit of the suspected infringing goods, and the means of transportation thereof, and so on.

Where the suspected infringing goods are suspected to infringe an archived intellectual property right, the application letter shall
also include the customs archival filing number.

Article 14

Where an intellectual property right holder requests the customs to detain any suspected infringing goods, he shall provide the customs
with a guaranty of no less than the equivalent value of the goods, which shall be used to indemnify the losses caused to the consignee
or consigner because of inappropriate application, and to pay the warehousing, custody and disposal fees, etc. after the goods are
detained by the customs; in case the intellectual property rights holder directly pays warehousing or custody fees to the warehouseman,
such fees shall be deducted from the guaranty. The detailed measures shall be formulated by the Customs General Administration.

Article 15

Where an intellectual property right holder who files an application for detainment of any suspected infringing goods conforms to
Article 13 of the present Regulation, and has provided a guaranty as prescribed in Article 14 of the present Regulation, the customs
shall detain the suspected infringing goods, notify the intellectual property rights holder in writing, and serve the customs detainment
list to the consignee or consigner.

Where an intellectual property right holder who files an application for detainment of any suspected infringing goods does not conform
to Article 13 of the present Regulation, or fails to provide a guaranty as prescribed in Article 14 of the present Regulation,
the customs shall reject the application, and notify the intellectual property rights holder in writing.

Article 16

Where the customs finds that any imported or exported goods are suspected to have infringed an archived intellectual property, it
shall immediately notify the intellectual property rights holder in writing. In case the intellectual property rights holder submits
an application according to Article 13 of the present Regulation and provides a guaranty according to Article 14 of the present
Regulation within 3 working days as of service of the notice, the customs shall detain the suspected infringing goods, notify the
intellectual property rights holder in writing, and serve the customs detainment list to the consignee or consigner. In case the
intellectual property rights holder fails to file the application or provide the guaranty within the time limit, the customs shall
not detain the goods.

Article 17

Upon consent of the customs, an intellectual property right holder and the consignee or consigner may view relevant goods.

Article 18

Where a consignee or consigner considers that his goods do not infringe the intellectual property rights of the right holder, he shall
submit to the customs a written statement attached with relevant evidence.

Article 19

Where a consignee or consigner who is suspected to infringe patented goods regards that his imported or exported goods do not infringe
the patent right, he may, after providing the customs with a guaranty bond of equivalent value to that of the goods, request the
customs to release his goods. If the intellectual property rights holder fails to lodge a lawsuit to the people’s court within a
reasonable time, the customs shall refund the guaranty bond.

Article 20

Where, after the customs has found that any imported or exported goods are suspected to have infringed an archived intellectual property,
and has notified the intellectual property rights holder, while the intellectual property rights holder requests the customs to detain
the suspected infringing goods, the customs shall investigate into and ascertain within 30 working days as of the detainment whether
the detained suspected infringing goods have infringed the intellectual property; if the aforesaid goods are unable to be ascertained,
the customs shall immediately notify the intellectual property rights holder in writing.

Article 21

Where the customs investigates into the detained suspected infringing goods, and requests the competent administration of intellectual
property rights to provide assistance, the relevant competent administration of intellectual property rights shall provide assistance.

Where, when handling an infringement case of imported or exported goods, the competent administration of intellectual property rights
requests the customs to provide assistance, the customs shall provide assistance.

Article 22

When the customs is investigating into the detained suspected infringing goods and other relevant details, the intellectual property
rights holder, and the consignee or consigner shall provide cooperation.

Article 23

An intellectual property right holder may, after submitting an application to the customs for taking protection measures, file an
application according to the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China
or the Patent Law of the People’s Republic of China to the people’s court before lodging a lawsuit for taking the measure of ordering
to stop the infringing acts or taking property preservation with regard to the detained suspected infringing goods.

The customs shall provide assistance if receiving relevant notice of the people’s court on assisting in ordering to stop the infringing
acts or in taking property preservation.

Article 24

In the case of any of the following circumstances, the customs shall release the detained suspected infringing goods:

(1)

The customs detains the suspected infringing goods according to Article 15 of the present Regulation, but does not receive the notice
of the people’s court on assisting execution within 20 working days as of the detainment;

(2)

The customs detains the suspected infringing goods according to Article 16 of the present Regulation, but does not receive the notice
of the people’s court on assisting execution within 50 working days as of the detainment, and the detained suspected infringing goods
cannot be ascertained upon investigation to have infringed any intellectual property rights;

(3)

The consignee or consigner of the goods which are suspected to have infringed a patent right, after providing the customs with a guaranty
bond of equivalent value to that of the goods, requests the customs to release the goods;

(4)

The customs considers that the consignee or consigner has sufficient evidence to prove that the goods have not infringed the intellectual
property rights of the right holder.

Article 25

Where the customs detains any suspected infringing goods according to the present Regulation, the intellectual property rights holder
shall pay relevant warehousing, custody and disposal fees, etc. In case the intellectual property rights holder has not paid the
relevant fees, the customs may deduct them from the guaranty bond provided to customs, or requests the guarantor to perform the relevant
guaranty responsibilities.

Where the suspected infringing goods are regarded to have infringed an intellectual property, the intellectual property rights holder
may calculate the relevant warehousing, custody and disposal fees, etc. that he has paid into the reasonable expenditures for stopping
the infringing acts.

Article 26

Where the customs finds any suspected criminal case when carrying out the protection of intellectual property rights, it shall transfer
the case in accordance with the law to the public security organ for handling.

Chapter IV Legal Liabilities

Article 27

Where any detained suspected infringing goods are ascertained to have infringed an intellectual property rights after the investigation
of the customs, they shall be confiscated by the customs.

The customs shall, after confiscating the goods infringing an intellectual property rights, inform the intellectual property rights
holder in writing of the relevant information on the aforesaid goods.

Where the confiscated goods infringing an intellectual property are used for the commonweal undertaking, the customs shall deliver
them to the relevant commonweal institutions for the purposes of commonweal undertaking; if the intellectual property rights holder
has the intent of purchase, the customs may transfer the goods to the intellectual property rights holder non-gratuitously. In case
the confiscated goods infringing an intellectual property right are unable to be used for the commonweal undertaking and the intellectual
property rights holder has no intent of purchase, the customs may lawfully auction them after the infringement features have been
eliminated; and in case the infringement features are unable to be eliminated, the customs shall destroy such goods.

Article 28

Where an individual brings or mails articles of entry or exit by exceeding the quantity for self-use or the reasonable quantity, and
infringes an intellectual property rights prescribed in Article 2 of the present Regulation, the customs shall confiscate such articles.

Article 29

Where, after accepting an application for archival filing of intellectual property protection or for taking measures of protecting
an intellectual property, the customs fails to find the infringing goods, or fails to in time take protection measures or takes poor
protection measures because of the fact that the intellectual property rights holder fails to provide exact information, the intellectual
property rights holder shall undertake the liabilities by itself.

Where, after the intellectual property rights holder requests the customs to detain the suspected infringing goods, the customs is
unable to ascertain that the detained suspected infringing goods have infringed the intellectual property rights of the right holder,
or the people’s court rules that the said goods have not infringed the intellectual property rights of the right holder, the right
holder shall undertake the indemnity liabilities in accordance with the law.

Article 30

Where, when importing or exporting any goods infringing an intellectual property rights, a crime is constituted, the offenders shall
be subject to criminal liabilities in accordance with the law.

Article 31

Where any customs functionary neglects his duties, abuses his powers or practices frauds for personal gains when carrying out protection
of intellectual property rights, and a crime is constituted, he shall be subject to criminal liabilities in accordance with the law;
if no crime is constituted, he shall be imposed upon administrative sanctions in accordance with the law.

Chapter V Supplementary Provisions

Article 32

Where an intellectual property rights holder has his intellectual property rights archived in the Customs General Administration,
he shall pay the archival filing fee according to the relevant provisions of the State.

Article 33

The present Regulation shall be implemented on March 1st, 2004. The Regulation of the People’s Republic of China on Customs Protection
of Intellectual Property Rights promulgated by the State Council on July 5th, 1995 shall be abolished simultaneously.



 
State Council
2003-12-02

 






SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE TAX REFUND RATE FOR EXPORTED GOODS

Ministry of Finance, State Administration of Taxation

Supplementary Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported
Goods

Caishui [2003] No. 238

December 2, 2003

The departments (bureaus) of finance and the bureaus of State taxes of all provinces, autonomous regions, municipalities directly
under the Central Government, and cities directly under State planning, the Bureau of Finance of Xinjiang Production and Construction
Army Corps:

The “Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported Goods”
(Caishui [2003] No. 222) has prescribed the tax refund rates applicable to exported goods since January 1, 2004. Our supplementary
notice concerning other relevant policies on tax refund for export is hereby giver as follows:

I.

Where the goods are exported by small-scale taxpayers on their own or by means of authorization, it shall continue to implement the
tax exemption policies, and their tax amount on purchase items shall neither be deducted nor be refunded. If taxes are permitted
to be refunded to export enterprises for their export of goods purchased from small-scale taxpayers, it shall apply a tax refund
rate of 5% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to be 5%; and it shall
apply to a tax refund rate of 6% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to
be higher than 5%.

II.

Where products are exported within the “Catalogue on Export of Hi-tech Products” (2003 Edition), it shall uniformly comply with the
tax refund rate prescribed in Document Caishui [2003] No. 222.

III.

Computer software in export (Customs Export Code: 9803) shall be exempted from taxes, and their tax amount on purchase items shall
neither be deducted nor be refunded.

IV.

For the Chinese domestically produced articles and domestic labor services purchased by foreign embassies (consulates) to China and
their diplomats, the domestically produced equipment purchased by foreign-funded enterprises and qualified for tax-refund conditions,
as well as the mechanical and electronic products for which the domestic enterprise won the bid and for which international bid invitation
was held by using loans of foreign governments and international financial organizations prescribed in Article 9 of the “Notice
of the State Administration of Taxation on Some Issues Concerning Tax Refund for Export” (GuoshuiFa [2000] No. 165), as well as the
ocean engineering structures sold by the production enterprises prescribed in the “Notice of the Ministry of Finance and the State
Administrative Institution of Taxation on Applying VAT Refund to Ocean Engineering Structures” (Caishui [2003] No. 46) to domestic
maritime petroleum and natural gas exploitation enterprises, taxes shall still be refunded, deducted or exempted according to the
original policies.

The domestically produced equipment purchased by foreign-funded enterprises, with the taxes on which permitted to be refunded, covers
a scope of domestically produced equipment purchased within China, which conforms to the investment projects in the catalogue of
encouraged foreign investment industries in the “Catalogue for the Guidance of Foreign Investment Industries”, that is, Order No.
21 jointly promulgated by the former State Planning Commission, the former State Economic and Trade Commission and the former Ministry
of Foreign Trade and Economic Cooperation.

The tax refund rate that is applicable to the “exemption or deduction” policies for the steel “specially used for processing export”
sold by the named steel enterprises prescribed in the “Notice of the State Administration of Taxation, the State Economic and Trade
Commission, the Ministry of Finance, the General Administration of Customs, and the State Administration of Foreign Exchange on Printing
and Distributing the Detailed Rules for the Implementation of the Measures for Promoting Steel Production in Place of Steel Import”
(GuoshuiFa [1999] No. 68) to processing trade enterprises shall be notified separately.

V.

The domestically sold or purchased goods other than those prescribed in Article 4 of the present Notice shall be deemed as the goods
whose taxes are permitted to be refunded or exempted upon export. The “exemption, deduction or refund” of taxes shall be handled
or the amount of “exempted or deducted” taxes shall be computed uniformly according to the tax refund rate prescribed in Document
CaishuiFa [2003] No. 222. For such goods, the “tax amount not permitted to be exempted or deducted” shall be calculated and be converted
into the costs.

The tax amount not permitted to be exempted or deducted = the sales amount named on common invoices￿￿tax levying rate of the sold
goods ￿￿ tax refund rate of the sold goods)

VI.

The present Notice shall enter into force as of January 1, 2004. The export date indicated by the customs on the “Customs Declaration
List for Exported Goods (the sheet of tax refund for export)” shall be deemed as the time criterion for Articles 1 through 3 of the
present Notice; while the time of issuance by the seller of common invoices shall be deemed as the time criterion for Articles 4
and 5.



 
Ministry of Finance, State Administration of Taxation
2003-12-02

 






CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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