MINISTRY OF COMMERCE ANNOUNCEMENT NO. 62, 2005 ON NON STATE-RUN TRADE PERMISSIBLE IMPORT AMOUNT, DISTRIBUTION GIST AND APPLICATION PROCEDURE OF CRUDE OIL AND PRODUCT OIL

Ministry of Commerce

Ministry of Commerce Announcement No. 62, 2005 on Non State-run Trade Permissible Import Amount, Distribution Gist and Application
Procedure of Crude Oil and Product Oil

[2005] No. 62

In accordance with Commodity Import and Export Administrative Enactment of PRC and relevant commitment of China’s entry into WTO,
Non State-run Trade Permissible Import Amount, Distribution Gist and Application Procedure of Crude Oil and Product Oil is now announced.

All the qualified crude oil and product oil import units could apply to Import Administrative Organization of Important Industrial
Products or Import Supervision Organization of Foreign-invested Enterprises authorized by Ministry of Commerce, or could apply to
Ministry of Commerce directly.

The cognizance duration of Ministry of Commerce is from October 1, 2005 to October 31, 2005

Appendix :

Non State-run Trade Permissible Import Amount, Distribution Gist and Application Procedure of Crude Oil

Non State-run Trade Permissible Import Amount, Distribution Gist and Application Procedure of Product Oil

Ministry of Commerce

September 16, 2005

Ministry of Commerce
2005-09-16

MEASURES FOR THE ADMINISTRATION ON THE QUALIFICATION CONFIRMATION OF BID INVITATION AGENCIES FOR PROJECTS INVESTED BY THE CENTRAL GOVERNMENT

the National Development and Reform Commission

Order of the National Development and Reform Commission

N0.36

With a view to strengthening the qualification confirmation of bid invitation agencies for projects invested by the central government,
and regulating the bid invitation agency activities of projects invested by the central government, the Measures for the Administration
on the Qualification Confirmation of Bid Invitation Agencies for Projects Invested by the Central Government, which were specially
formulated according to the Bidding Law of the People’s Republic of China, the Administrative License Law of the People’s Republic
of China, the Decision of the State Council on the Reform of Investment Systems and the Letter of Confirmation on Projects Subject
to Administrative Examination and Approval Preserved by the National Development and Reform Commission, are promulgated hereby and
shall go into effect as of November 1, 2005.

Director General of the National Development and Reform Commission: Ma Kai

September 19, 2005

Measures for the Administration on the Qualification Confirmation of Bid Invitation Agencies for Projects Invested by the Central
Government

Chapter I General Provisions

Article 1

With a view to improving the benefit of government investment, regulating the acts of bid invitation and bidding on government investment
projects, advancing the service quality of bid invitation agencies and preventing corruption from the sources, the present Measures
are formulated according to the Bidding Law of the People’s Republic of China, the Administrative License Law of the People’s Republic
of China, the Decision of the State Council on the Reform of Investment Systems, the Letter of Confirmation on Projects subject to
Administrative Examination and Approval Preserved by the National Development and Reform Commission and other relevant laws and regulations.

Article 2

All the bid invitation agencies undertaking the bid invitation agency business for projects invested by the central government within
the territory of the People’s Republic of China shall undergo qualification confirmation according to the present Measures.

Article 3

The projects invested by the central government as mentioned in the present Measures shall refer to the fixed assets investment projects
totally or partly using the investment capital (including treasury bonds) within the central budget, special construction funds,
foreign loan capital and other central finance investment capital.

In the case of any project invested by the central government that uses sovereignty external debt, if any international financial
institution or the government of any loan country has requirements for the bid invitation and procurement, the requirements shall
be followed.

Article 4

The bid invitation agency business as mentioned in the present Measures shall include the undertaking of bid invitation for project
owners, management entities of professional projects, entities compiling the government investment plans upon the entrustment of
tenderees, as well as the bid invitation agency business in such aspects as the survey, feasibility study, design, equipment, materials,
construction, supervision and insurance of projects invested by the central government.

Article 5

The National Development and Reform Commission is the administrative department responsible for the qualification confirmation of
bid invitation agencies for projects invested by the central government, and shall, according to the Bidding Law and the relevant
regulations, make confirmation and supervision of the qualifications of bid invitation agencies.

Article 6

The bid invitation agency, which has obtained the qualification for an international bidding institution of electromechanical products
as approved by the Ministry of Commerce, may undertake international bidding agency business on electromechanical products of projects
invested by the central government.

For any procurement agency that undertakes the bid invitation on goods and services subject to government procurement according to
the Government Procurement Law, the measures for its qualification confirmation and administration shall be formulated by the relevant
departments separately, and the present Measures shall not apply.

Chapter II Qualification Application

Article 7

The qualifications of bid invitation agencies for projects invested by the central government are classified into Grade A and Grade
B.

Bid invitation agencies with Grade A qualification may undertake the bid invitation agency business for all the projects invested
by the central government.

Bid invitation agencies with Grade B qualification may only undertake the bid invitation agency business of the project invested by
the central government, total investment of which is not more than RMB 200 million Yuan.

Article 8

An institution that applies for the qualification as a bid invitation agency for projects invested by the central government shall
meet the following conditions:

Being a social intermediary organization legally established and having the qualification of an independent enterprise legal person;

Having no administrative subordination or other interest relationship with any administrative department or other state organ;

Having fixed place of business, and facilities and business conditions as needed for carrying out bid invitation agency business for
projects invested by the central government;

Having sound organizations and internal management rules and regulations;

Having corresponding expertise for compiling bid invitation documents and organizing bid assessment;

Having set up the bid assessment expert database at a certain scale;

The institution has not been subject to the punishment of suspension of the qualification or above by the relevant administrative
departments during the latest three years for violation of the Bidding Law and other relevant administration provisions;

The person in charge of the agency has not been subject to criminal penalties for violation of the Bidding Law and the relevant administration
provisions during the latest three years; and

Other conditions as provided for by the National Development and Reform Commission.

Article 9

An institution that applies for Grade A qualification of a bid invitation agency shall, apart from satisfying the conditions as prescribed
in Article 8 of the present Measures, meet the following conditions:

The registered capital is not less than RMB 8 million Yuan;

The professional bid invitation personnel shall be not less than 50;

Of the bid invitation professionals, the professionals who hold the intermediate professional post_title or above shall be not less than
70%;

The number of experts in the bid assessment expert database shall be more than 800;

It has undertaken bid invitation agency business for more than five years; and

The number of bid invitation agency projects undertaken during the latest five years shall be more than 300, and the winning bid amount
shall be more than RMB 5 billion Yuan accumulatively (based on the bid winning notice, the same hereinafter).

Article 10

Any institution that applies for Grade B qualification of a bid invitation agency shall, apart from satisfying the conditions as prescribed
in Article 8 of the present Measures, meet the following conditions:

The registered capital shall be not less than RMB 3 million Yuan;

The professional bid invitation personnel shall be not less than 30;

Of the bid invitation practitioners, the professionals who hold the intermediate professional post_title or above shall be not less than
60%;

The number of experts in the bid assessment expert database shall be more than 500;

It has undertaken bid invitation agency business for more than three years; and

The number of bid invitation agency projects undertaken by it during the latest 3 years shall be more than 100, and the winning bid
amount shall be more than RMB 1.5 billion Yuan accumulatively

Article 11

The bid invitation agency, which has undertaken bid invitation agency business for less than 3 years but meets the conditions as prescribed
in Article 8 and items (1), (2), (3) and (4) of Article 10 , may apply for the preliminary qualification of a bid invitation agency
for projects invested by the central government. After having obtained the preliminary qualification, it may undertake the bid invitation
agency business of projects invested by the central government, the total investment of which is not more than RMB 100 million Yuan.

Article 12

The National Development and Reform Commission shall carry out the work of qualification confirmation of bid invitation agencies for
projects invested by the central government periodically. The notice and requirements for the acceptance of relevant qualifications
and the format text of the application materials shall be announced beforehand to ensure that the applicant have sufficient time
to prepare the application materials.

Article 13

An institution, which applies for the qualification as a bid invitation agency for projects invested by the central government, shall
submit the following materials as required:

The application letter for the qualification as a bid invitation agency for projects invested by the central government;

The photocopy of the duplicate of the business license of the enterprise legal person (affixed with the seal of confirmation of the
original registration organ);

The articles of association of the company;

The form of conditions on the establishment of enterprise organizations;

The basic information on the enterprise personnel;

The bid invitation performance;

The bid winning notice on the applied bid invitation performance;

The name list of the personnel in bid assessment expert database; and

DETAILED RULES FOR APPLYING AND DISTRIBUTING IMPORT TARIFF QUOTA OF SUGAR

Ministry of Commerce

Announcement of the Ministry of Commerceof the People’s Republic of China

[2005] No. 64

Detailed Rules for Applying and Distributing Import Tariff Quota of Sugar were drawn up in accordance with Temporary Measures on Management
of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry of Commerce and National Development and Reform Commission),
and are hereby published.

Ministry of Commerce

September 26, 2005

Detailed Rules for Applying and Distributing Import Tariff Quota of Sugar

According to Temporary Measures on Management of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry of Commerce
and National Development and Reform Commission), detailed rules of sugar tariff quota quantity, application requirements and allocation
principles in 2006 are hereby published as follows:

The quantity of tariff quota for import of sugar in 2006 is 1.945 million ton, and 70 percent is state run trade.

The basic requirements of the applicants for sugar import tariff quota: registered in industrial and commercial administrations before
October 1, 2005 and passed the latest annual examination made by industrial and commercial administrations in accordance with rules.
No activities breaking the rules in import of sugar in customs, foreign exchange, industry and commerce, taxation and quality examination.
No activities that violate Temporary Measures on Management of Import Tariff Quota of Agricultural Products.

On the basis of satisfying above requirements, quota applicants should also qualify one of following requirements:

(1)

State run trade enterprise;

(2)

Central enterprise that has state reserve function;

(3)

The enterprise that has real achievements of sugar import in 2005;

(4)

Sugar producing enterprises that process raw sugar more than 600 ton (including 600 ton) everyday, have registered funds of more than
10 million yuan (including 10 million yuan), and yearly sales volume is more than 200 million yuan (including 200 million yuan);

(5)

The enterprises that take sugar as raw materials and are engaged in processing trade.

Tariff quota applicants should provide following materials:

(1)

Application report on import tariff quota of agricultural products;

(2)

Application Form for import tariff quota of agricultural products;

(3)

Copy of business license (duplicate) of enterprise corporation that pass the latest annual examination made by industrial and commercial
administrations in accordance with rules;

(4)

The enterprise’s 2004 annual audit report provided by qualified accountant firm or copy of “Registration Form of Ordinary Taxpayer
for 2004 Added Value Tax” submitted when handling 2004 tax annual examination.

The applicants that have real achievements of import should provide only above materials stipulated in 1 to 3. The enterprises that
make the application for the first time should provide all materials above. If the enterprises that make the application for the
first time is established for production after 2004, they should provide reply documents (reply documents to project recommendations)
to feasibility report on construction project made by competent authorities and project completion acceptance report.

Basic principles of distributing sugar import tariff quota is based on real import achievements, production ability, sales volume
of last year and other related commercial standard.

(1)

If the quantity of import tariff quota for allocation can satisfy the total quantity of the qualified applicants, tariff quota will
be distributed according to the quantity the applicants applied for.

(2)

If the quantity of import tariff quota for allocation can not satisfy the total quantity of the qualified applicants, the applicants
who have real import achievements may have priority to obtain equal-proportional quota that take the real import achievements of
last year as the base. To the applicants who have no real import achievements, The quantity of import tariff quota will be distributed
among them according to proportion mainly on the basis of the processing ability and sales volume. If the application quantity is
lower than the quantity allocated according to the proportion, the quantity is distributed according to application quantity.

2006 import tariff quota of sugar may be applied for from October 15 to 30, 2005. The applicant should submit the application to the
organs authorized by Ministry of Commerce in industrial and commercial registration area. Quota applicants may obtain the Application
Form for Import Tariff Quota of Agricultural Products from the organs authorized by Ministry of Commerce or download (copy) it from
the network of Ministry of Commerce: https://www.mofcom.gov.cn. (See Appendix 1).

The organs authorized by Ministry of Commerce is responsible for accepting and handling the application of the enterprises registered
in this area and submit the application of the enterprises that satisfy above requirements to Ministry of Commerce before November
30 2005, and report to National Development and Reform Commission at the same time.

Ministry of Commerce distributes License for Import Tariff Quota of Agricultural Products to final consumers through authorized organs
before January 1, 2006.

Appendix :

(1)

Application Form for Import Tariff Quota of Agricultural Products

(2)

Tax Items and Rate Schedule of Sugar Import in 2006

Ministry of Commerce
2005-09-26

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON STRENGTHENING TAX REVENUE ADMINISTRATION IN COAL INDUSTRY

State Administration of Taxation

Notice of the State Administration of Taxation on Strengthening Tax Revenue Administration in Coal Industry

Guo Shui Fa [2005] No 153

To bureaus of state taxes and bureaus of local taxes of all provinces, autonomous regions, municipalities directly under the Central
Government, cities specifically designated in the state plan, and Yangzhou Taxation Training College:

Since last year, the State Administration of Taxation has discovered the pervasive nonstandard tax management and inefficient tax
revenue in coal industry by analyzing and studying special tax examination in the coal industry of some regions. In order to further
strengthen the governance of tax by law and ascertain the responsibility of tax revenue administration, the problems on strengthening
tax administration in coal industry is hereby given as follows:

To strengthen tax registration administration and solidify routine supervision. In accordance with the principle of common registration
and local administration, any unit or individual undertaking coal production or sale shall perform tax registration in the bureaus
of state taxes, bureau of local taxes (or both) hereof. For the unit or individual with complete procedure, tax registration shall
be handled. In case of the unit or individual with incomplete procedure yet having undertaken coal production, temporary tax registration
shall be handled. Tax authorities shall initiatively supervise and put in order the tax administration of coal enterprises and solidify
routine supervision upon branches of enterprises and small-sized coal enterprises.

Supervision upon the confirmation of common taxpayer shall be strengthened. Any one up to the standard of common taxpayer shall apply
for the confirmation of common VAT taxpayer and establish and perfect account book. Where those up to the standard of common taxpayer
fail to apply for confirmation procedure, the tax payable shall be accounted by VAT rate of sale amount in accordance with the provisions
of Article 33 in “Rules for the Implementation of the Interim Measures on Value-Added Tax of the People’s Republic China”, and neither
VAT output may be credit nor special invoice may be issued. Tax authorities shall analyze the performance of small- sized taxpayers
and make due publicity upon those enterprises in line with the prescribed conditions, conduct the examination and confirmation of
common taxpayer and subsequently equip them with tax control anti-falsification facilities.

To establish coordination mechanism so as to advance the share of information. All levels of tax authorities shall actively win the
support of local governments and establish coordination mechanism with such authorities as bureaus of state taxes, bureau of local
taxes, industry and commerce, safety production, price supervision by means of joint meeting and joint dispatch with related departments;
they shall acquire such information as handling of business license by industry and commerce authorities, safety manufacturing license
by safety production authorities, mining license by coal production and supervision authorities, resource depletion charges by coal
supervision authorities, and thereby examine and put in order tax registration of coal enterprises and establish the record of related
enterprises to avoid the negligence of tax collection and supervision.

To strictly implement tax administrator system and ascertain administrator’s responsibility. All levels of tax authorities shall strictly
implement “Tax Administrator System (For Trial Implementation)”(Guo Shui Fa[2005] No. 40), strengthen supervision and service hereon
and solidify the related routine inspection. The basic tax authorities shall gravely check the performance of coal industry in their
jurisdiction areas, tax administrators shall comprehend the characteristics of coal enterprises and the performance of their production,
sale, tax control facilities, issuing of invoice, as well as duly discover and correct the deeds of tax violation.

To strengthen taxpaying assessment and tax revenue supervision. “Taxpaying Assessment Measures (For Trial Implementation)” (Guo Shui
Fa [2005] No 43) shall be implemented to enhance the management upon coal industry especially small and medium-sized enterprises.
All regions shall undertake thorough investigation to find the inherent law of tax administration in coal industry and to subsequently
confirm the main and supplementary indicators, carve up various administration modes reasonably in accordance with the supervision
of tax-control facilities and such performances as production, sale and stockpile of enterprises and the fluctuation of coal price,
and to solidify the assessment upon the taxpayers through combination of human and machine. The assessment mode includes: electricity
cost mode, payroll cost mode, raw material mode, mineral resources mode, production-for-sale mode, import-for-sale mode. These modes
are applied to discover unusual circumstances for due correction in accordance with the comparison between such indicators as average
industrial current drain, payroll cost with the practical indicator of specific industry. In the process of taxpaying assessment,
various assessment modes may be employed simultaneously to promote the accuracy of taxpaying assessment, intensify routine management
and stop up loopholes.

(1)

Electric cost mode. The objective conditions of every coal mine determining the rough stability of its electricity consumption in
unit production is deemed an assessment criterion to calculate its yield capacity by means of electricity consumption in the process
of production, and thereby the coal sale amount and its tax payable.

The formula is

Product yield in the period of assessment=value of electricity consumption in the period of assessmentvalue of electricity consumption
of unit ton product

Product of sale in the period of assessment= product yield in the period of assessment+ product stockpile in the initial assessment
period- product stockpile in the final assessment period

Calculated sale income in the period of assessment=product sale in the period of assessmentunit price for product sale in the period
of assessment

The electricity consumption in the period of assessment shall deduct that part for water pumping and draught

(2)

Payroll cost mode. The coal enterprises mostly adopt fixed wage system for the managerial staffs, wage system based on beneficial
results for production personnel, with the wage obtained directly proportional to the yield of raw coal. The monthly paid wages in
the coal mine may be withdrawn from the wage roster of the enterprise or be acquainted from coal exploitation contract team. The
formula is

Raw coal yield in the month of assessment=monthly wages to be withdrawn for coal miners in the month of assessmentwage for coal
miner via unit ton coal

Raw coal sale in the month of assessment=raw coal yield in the month of assessment+ raw coal stockpile at the beginning of the assessment
month- raw coal stockpile at the end of the assessment month

Calculated raw coal income in the month of assessment=raw coal sale in the month of assessmentunit sale price in the month of assessment

Coal miner wage to be withdrawn for coal miners in the month of assessment= total amount of wage to be withdrawn in the month of assessment-
wage for the managerial personnel

(3)

Raw material cost mode. The number of pit timber invested in the process of raw coal production is directly proportional to that of
tunnel, which is directly proportional to raw coal yield. The formula is

Raw coal yield in the month of assessment= the number of pit timber consumption in the month of assessmentthe number of pit timber
for unit ton raw coal pit

Raw coal sale in the month of assessment=coal stockpile at the beginning of the month of assessment- coal stockpile at the end of
the month of assessment

Estimated income of raw coal sale in the monthof assessment= raw coal sale in the month of assessmentunit sale price in the
month of assessment

(4)

Mineral resource charges depletion mode. The mineral bureau has a technical survey plan for the amount of coal stockpile underground
and for the coal structure, and thereby survey the actual exploitation plan and tunneling mapping every month and measure it out,
and subsequently work out the yield and the sale amount of that enterprise by technical means and then the sale value by comparing
it with data of stockpile plan. The mineral bureau calculates the taxable mineral resource charges based on the sale amount, which
is so accurate technically that can be deemed as an important indicator for taxpaying. The formula is:

Calculated sale income of that period= mineral resource depletion charge of that periodmineral resource depletion charge ratio

Paid mineral resource depletion charge of that period=(yield of that month calculated by mineral department+ stockpile at the beginning
of that month- stockpile at the end of that month) verage sale price in that monthmineral resource depletion charges

(5)

Production-against-sale mode. This mode may be employed by any coal enterprise equipped with tax control facilities to calculate the
coal sale amount of that month provided that the calculated yield is settled. The formula is as follows:

Coal sale amount in the initial month=coal yield monitored by monitoring system of that month or calculated by some means- actual
coal slack yield of that month- weight of other non-coal sundries- stockpile at the end of that month

Coal sale amount of the next two months=yield monitored by monitoring system of that month or calculated by some means +reduced amount
of coal stockpile at the end of that month- actual coal slack yield of that month-weight of other non-coal sundries-increased coal
stockpile amount at the end of that month

Coal enterprises shall examine and calculate the yield, sale amount, stockpile amount and sale amount of coal and coal slack respectively.

Value-added tax shall be imposed upon the sold coal slack in accordance with the lawful tax rate or charge rate.

(6)

Input-against- sale mode. Input acquired by a coal?Cinvolved enterprise with raw coal as raw materials for production in the process
of raw coal purchase shall be deemed as the criteria for assessing the production and sale amount of small-sized coal mines so as
to further verify the sale income of the enterprises hereof. It applies to the raw coal enterprise mainly engaged in local sale.
The formula is:

Raw coal sale amount in the month of assessment=ton shown in the invoice of raw coal purchase by the coal-involved enterprise+ coal
sale amount with the invoice issued by tax authorities+ raw coal purchase amount without invoice given by that enterprise

Calculated income in the month of assessment= sale amount of raw coal in the month of assessmentunit sale price

To standardize the administration of commissioned tax collection. Tax, where conditions permit in some regions, may be imposed upon
coal enterprises by means of commissioned tax collection. The entrust and the entrusted shall sign the agreement of commissioned
tax collection agreement to strengthen administration thereon, set strictly the scope of commission and the criteria of tax collection
to ensure the collection obligations withhold in time. The coordination between bureaus of state taxes and local ones shall be strengthened
so that the commissioned tax collection may be performed mutually provided that conditions permit. Corporate Income Tax and Individual
Income Tax shall not be collected by commission in principle, unless otherwise it is of great necessity, if so, means of refund and
collection shall be clarified.

To standardize and verify collection administration. Where the coal enterprise in line with the provisions in Article 35 of Tax Collection
Administration adopts the verification of collection administration, tax authorities may employ the modes and indicators listed herein
as well as other effective measures to ascertain verification hereof. The scope of verification shall be strictly controlled. Where
the coal enterprise employs fixed rate collection and fixed amount collection, the basic tax authorities and personnel in charge
shall enhance routine administration and supervision and adjusts the fixed amount or fixed rate in accordance with the alteration
of tax revenue and market quotation. For the newly established coal enterprise employing verification of collection administration,
the term for its initial fixed amount or fixed rate shall be one month. Verification or tax collection on audit of account will be
carried out on the basis of further collection upon its expiration.

To intensify tax revenue administration by fully employing tax control facilities. All level of authorities shall make full use of
technical means, in particular information one to extend tax control facilities and to intensify the amount measurement upon the
coal enterprises and supervision upon tax revenue. Real-time electronic monitoring system, where conditions permit, may be installed
in such sites as the coal exit, sale spot of bunker and conveyer belt in the mine etc., to scan the amount of production and sale
shown in electronic platform scale automatically into main monitor for automatic calculation so as to determine coal daily sale amount
and actualize yield monitoring, production-against- sale, sale-against- tax, tax revenue control.

To strengthen administration upon invoice. In order to supervise whether all the invoices for sale income of enterprise have been
issued, the following shall be fulfilled:

First, consumers are encouraged to report the deeds of failure to issue invoice; second, taxpaying assessment and daily examination
shall be carried out upon the enterprises with sharply decreasing invoice; third, for the taxpayers to purchase new invoice by presenting
the record of the used ones for examination, they shall fulfill it, compare the examined sum with that sale value declared in the
same month or verified sum with that in the special invoice of tax control for anti-falsification so as to investigate and punish
those that failed to declare it genuinely or to adjust the fixed tax amount.

State Administration of Taxation

September 26, 2005

State Administration of Taxation
2005-09-26

CIRCULAR OF THE MINISTRY OF COMMERCE ON PRINTING AND DISTRIBUTING THE DETAILED IMPLEMENTATION RULES FOR BID INVITATION FOR TEXTILE EXPORT QUOTA

Ministry of Commerce

Circular of the Ministry of Commerce on Printing and Distributing the Detailed Implementation Rules for Bid Invitation for Textile
Export Quota

Shang Mao Fa [2005] No.502

The commerce offices or bureaus, quota license administrations, electronic commerce centers, chambers of commerce for the import and
export of textiles, and associations of enterprises with foreign investment of all the provinces, autonomous regions, municipalities
directly under the Central Government, separate planning cities, and of Harbin, Changchun, Shenyang, Nanjing, Wuhan, Chengdu, Guangzhou
and Xi’an, and all the relevant enterprises under the Central Government:

For the purpose of improving the administration of the export of textiles, and upon the approval of the State Council, the Ministry
of Commerce will allocate the export quota of a part of textile in year 2006 through bid invitation. In order to satisfy the need
for the work of managing bid invitation, the Ministry of Commerce has formulated the Detailed Implementation Rules for Bid Invitation
for Textile Export Quota according to the Measures on Bid invitation for Export Commodities Quota (Order No.11 [2001] of the former
Ministry of Foreign Trade and Economic Cooperation), and the Detailed Implementation Rules are hereby printed and distributed to
you.

please implement it earnestly.

Ministry of Commerce

September 16, 2005 Annex:Detailed Rules For the Implementation of Bidding for Quantity of Export License of Textiles

Chapter I General Principles

Article 1

These Detailed Rules are worked out in accordance with Temporary Measures on Management of Textiles Export and Measures on Bidding
for Quota of Export Commodities.

Chapter II Management organs for bidding

Article 2

Bidding Committee for Quantity of Textiles Export License of Ministry of Commerce (hereinafter referred to as Bidding Committee)
has one director, one to two deputy directors and some members.

It is for competent minister of Ministry of Commerce to be the director. It is for the person in charge of Foreign Trade Department
of Ministry of Commerce to be the deputy director. Members are persons concerned of Foreign Trade Department, Department of Foreign
Investment Management, Department of Import & Export Mechanical and Electrical Products Import & Export and Department of Planning
and Finance of Ministry of Commerce.

Article 3

Bidding Committee does following duties:

Examine and approve bidding plan for quantity of export license of textiles (hereinafter referred to as export quantity), including:

(1)

Fix the category, quantity and time of bidding;

(2)

Draw up standard of qualifications for project bidding and verify the qualifications of the enterprises bidding for a project;

(3)

Set the proportion of the payment of the earnest money for winning a bid;

(4)

Other issues that need to be made clear in bidding plan.

All kinds of circulars, announcements and decisions in which bid is published;

Take care of bid opening and bid comparison; and approve bidding result;

Handle the record of the quantity and transferred quantity handed over by the enterprises reported by Bidding Office;

Examine earnest money for winning the tender, the collection of money for winning the tender and the use of export quantity;

Other issues that need to be decided by Bidding Committee.

Foreign Trade Department of Ministry of Commerce is responsible for daily work of Bidding Committee.

Article 4

Bidding Office is composed of one director, one deputy director and some members. The person who is in charge of China Chamber of
Commerce For Import & Export of Textile (CCCT) is the director. The deputy director and the members are representatives and related
professionals of CCCT, China Association of Foreign Invested Enterprises and cooperative departments of corresponding industries.

Bidding Office takes the rules of one person one vote and the minority should be subordinate to the majority.

Article 5

Bidding Office does following duties:

Make bidding plan. Bidding Office organizes the representatives of the industry to discuss the standard of qualifications for entering
a bid and other important issues in the plan, make preliminary plan by vote and then report it to Bidding Committee for approval;

Fix the name list of the enterprises that entering a bid according to the standard of bidding qualifications and report them to Bidding
Committee for approval;

All circulars, announcements and decisions about public bidding are reported to Bidding Committee together for approval;

Choose uniform pattern for all kinds of electronic certificates relating management of public bidding, including Payment Receipt for
Winning a Bid in Public Bidding for Quantity of Export License of Textiles, Certificate of Applying for Export License of Textiles
Under Public Bidding, Certificate of Transferring and Assigning Export Quantity of Textiles Under Public Bidding and etc., and responsible
for electronic transmission and verification of related certificates;

Verify the enterprises’ payment of earnest money or amount for winning a bid, and report to Bidding Committee;

Accept export quantity handed over by the enterprises, recall export quantity that could not be used, and report to Bidding Committee
for approval. Handle and approve the application of the enterprises for transferring export quantity, and report to Bidding Committee
for record;

Examine and supervise enterprises’ export quantity and the situation of use of License, follow and verify export of commodities for
public bidding and the changes of the market, and report to Bidding Committee quarterly;

Handle other issues relating with public bidding assigned by Bidding Committee.

CCCT is responsible for daily works of Bidding Office.

Chapter III Qualifications for entering a bid

Article 6

Qualifications for entering a bid

All the enterprises that have export qualifications in accordance with related national rules, registered in industrial and commercial
administrations and have export achievements in bidding categories within fixed period in global market may enter a bid.

The period and the standard of export amount stipulated in above paragraph are published by Bidding Committee in the announcement
of public bidding.

Article 7

Examination of the qualifications of entering a bid

Preliminary examination

Commercial Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities
specifically designated in the state plan, and Harbin, Changchun, Shenyang, Nanjing, Wuhan, Chengdu, Guangzhou and Xi’an (hereinafter
referred to as local commercial administrations) are responsible for preliminary examination of local enterprises’ qualifications
of entering a bid. Beijing Commercial Bureau is responsible for preliminary examination of bid entering qualifications of the enterprises
managed by Central Government in Beijing. Local competent commercial administrations are responsible for preliminary examination
of bid entering qualifications of Central Government-managed enterprises in the local areas.

All local competent commercial administrations should finish preliminary examination within 5 working days at the receipt of the application
and report the result of the examination to Bidding Office.

Reexamination

Bidding Office should make reexamination of bid entering enterprises within 5 working days and submit the result of the reexamination
and related materials to Bidding Committee for approval.

Article 8

The statistical data (Ten commodity codes are used in the calculation) of China General Administration of the Customs should be taken
as criterion for examining export achievements of bid entering enterprises.

Chapter IV Bid evaluation rules and procedures

Article 9

Bidding Office should submit the plan for public bidding to Bidding Committee for approval. After approval, Bidding Committee publishes
the announcement of public bidding in the appointed press medium.

Article 10

Price of bidding a project

Bid entering enterprises decided by themselves the price of bidding a project. In order to avoid unreasonable low price, Bidding Committee
may set and publish the lowest price of bid for a project in advance in light of concrete conditions. Both the bid sheets under the
lowest bid entering price and the high price bid sheets that the price goes against the level of normal price are deemed as rejected
bid,

Article 11

Quantity of bidding for a project

In order to avoid the quantity of bidding for a project is too concentrated or dispersed, Bidding Committee sets the lowest tender
quantity for different categories in light of concrete conditions, grade the quantity and set the superior limit of tender quantity
for the enterprises at all levels according to export amount of the enterprises bidding for a project.

The lowest tender quantity, the standard in grades and superior limit stipulated in above paragraph are published in bidding announcement,

Bid sheets that the quantity is lower than the lowest bidding quantity or higher than superior bidding limit are deemed as rejected
bid.

Article 12

Style of bidding for a project

The enterprises must bidding for a project within fixed time by electronic bid sheets. Electronic tender sheets are taken as criterion
for tender closing, tender opening and tender evaluation. All enterprises can only bid for a project once within the fixed closing
date. The enterprises must receive feedback information of bid sheets arrival sent by China International Electronic Business Center
through computer after the enterprises send electronic bid sheets. Bidding for a project is not finished until the bid sheets are
confirmed arrival safely. If the enterprises can not send their electronic bid sheets within fixed time, they are deemed as giving
up the qualification of bid for a project.

Article 13

Chairman of Bidding Committee is in charge of bid evaluation and confirms qualified bid sheets in accordance with Article 10 , 11
and 12 of these rules.

Article 14

Electronic bid sheets are deemed as rejected tender in case of one of following cases:

The bid sheets that an enterprise applies for rejected bid sheets to Bidding Committee before the stipulated time of opening a bid;

The bid sheets sent after fixed bid closing limit;

The bid sheets that an enterprise sends more than two copies (including two) in the fixed time, no matter the content is the same
or not;

Other bid sheets that should be deemed as rejected bid sheets in accordance with these rules.

Article 15

Affirmation of the enterprises winning a bid

Tender price of all qualified enterprises is listed from high to low. Tender quantities of the enterprises bidding for a project are
added up sequentially. When the added tender quantity is equal to total quantity of bid invitation, the enterprise that its quantity
is listed into added total tender quantity (Total quantity of bid invitation) is the enterprise winning the bid.

If the sum of tender quantity of the enterprises whose price is the lowest tender price exceeds surplus export quantity, all the enterprises
that give this price win the tender except for those whose tender quantity is lower than the lowest tender quantity.

Article 16

Affirmation of tender price and tender quantity

The tender price of the enterprise winning the bid is their price to bid for a project. Tender quantity of the enterprise winning
the bid is their tender quantity. If the sum of tender quantity of the enterprise giving the lowest price exceeds surplus export
quantity, the enterprise in the level of this price allocates surplus export quantity according to the proportion of its tender quantity.
If the enterprise’s tender quantity is lower than the lowest tender quantity, it should be dealt with as it doesn’t win the bid.

Article 17

Bidding Committee publishes preliminary result of winning the bid in the day of tender open by electronic ways. If the enterprises
bidding for a project have any questions, they may submit them to Bidding Office within 2 working days as of the date of preliminary
publishing the result of bid winning. Bidding Office should submit preliminary result of bid winning to Bidding Committee for approval
within 3 working days as of the publishing date.

Article 18

Bidding Committee should inform Bidding Office to publish the name list of the enterprises winning the bid within 2 working days after
approval of the result of bid winning.

Article 19

Bidding Office should send formal bid winning result to the enterprises winning the bid in time through electronic tender system in
accordance with the circular of Bidding Committee.

Chapter V Payment for winning a bid

Article 20

The enterprises winning a bid should pay bid winning pond and bid winning money. It can’t be paid by other enterprises:

The enterprises winning a bid should remit bid winning bond to assigned bank account by cheque, draft, remittance and other forms
within fixed period (The date of money arriving the account is taken as criterion), and send Payment Evidence of Bid Winning Amount
of Bidding for Quantity of Export License of Textiles. No matter the export quantity of winning a bid is used up or not, bid winning
bond will not be returned.

Bid winning bond of ten percent of the enterprises that winning a bid at highest price in every lot every category is 100 per cent
of bid winning amount. The proportion of bid winning bond of other enterprises is 30 per cent. The enterprises winning a bid must
pay all bid winning bond for bid winning export quantity of all categories in the same bid inviting lot once. The enterprises of
winning a bid are not allowed to give up export quantity of some categories of winning a bid, and only pay bid winning bond of export
quantity of surplus part of bid winning categories.

The enterprises pay corresponding amount of balance of bid winning bond to appointed bank account according to the quantity of obtaining
the license, and send Payment Evidence of Bid Winning Amount of Export License Quantity of Textiles by electronic ways.

Article 21

At the receipt of bid winning amount paid by the enterprises, Bidding Office sends Certificate of Applying for Export License of Textiles
by electronic ways.

Article 22

Bidding Office should report the payment collection to Bidding Committee within 5 working days after the closing date of collecting
bid winning bond.

Chapter VI Handing over, transferring, assigning and recalling of export quantity

Article 23

The enterprises may hand over or transfer bid winning export quantity in this annual year according to the principle of volunteer
through Bidding Office.

Article 24

The date that enterprises hand over export quantity to Bidding Office should not be later than July 31 of the export quantity in the
same annual year. The export quantity handed over is not listed in wasted quantity.

To the export quantity handed over by the enterprises that Bidding Office receives before July 31, the export quantity that corresponding
bid winning amount has been paid may be returned, but bid winning bond should not be returned.

Article 25

Bid winning enterprises may transfer export quantity after paying corresponding amount of bid winning for the export quantity they
plan to transfer to appointed bank account. They may also transfer it after paying bid winning bond. Surplus amount of bid winning
is paid by assigned enterprise when they use export quantity.

Article 26

The enterprises transferring or accepting export quantity must submit the applications that both sides agree to transfer and accepting
export quantity to Bidding Office in the form of electronic ways for approval. The assigned enterprises must register in industrial
and commercial administrations and have qualifications of export business.

Article 27

New adjustment mechanism for export quantity is established in the light of needs in accordance with the measures approved by Ministry
of Commerce.

Article 28

Bidding Office should report the export quantity handed over by the enterprises to Bidding Committee within 3 working days at the
receipt of the export quantity and finfish the approval of the application for transferring and accepting export quantity according
to rules within 3 working days at the receipt of the applications, and report the Certificate of Transferring and Accepting Export
Quantity of Textiles in Bid Invitation of electronic edition to Bidding Committee regularly for record. And at the same time inform
China International Electronic Business Center.

Article 29

Bidding Office should cut the export quantity handed over or transferred by the enterprises from the quantity that the enterprises
handing over export quantity or transfer export quantity of winning a bid, send Certificate of Applying for Export License of Textiles
in Bid Invitation in electronic form to assigned enterprises at the same time when they send Certificate of Transferring and Accepting
Export Quantity of Textiles, and inform related license issuing organs separately in electronic form.

Article 30

Bid winning enterprises must pay 100 per cent of bid winning money to the bank account appointed by Bidding Committee before October
31 of export quantity in this annual year. To the export quantity that 100% bid winning amount has not been paid, Bidding Committee
will deem that it can not be used and recall it and does not return bid winning bond that has already been paid, and also recall
20 per cent of export quantity as wasted export quantity of the enterprise in this category the same year.

Article 31

To export quantity recalled, handed over and other surplus export quantity, Bidding Committee may make bid invitation again or deal
with in other forms approved by Ministry of Commerce according to the quantity.

Chapter VII Export License

Article 32

Name list of the enterprises winning a project in bidding of export quantity and the quantity won by the enterprises are approved
by Ministry of Commerce and distributed to all related license issuing organs and local competent commercial administrations.

Article 33

Export license of tender commodities may be issued not only in accordance with the regulations of export license management but also
in accordance with Certificate of Transferring and Accepting Export Quantity of Textiles or Certificate of Applying for Export License
of Textiles Under Tendering distributed by Bidding Office in electronic form.

Chapter VIII Punishment Principles

Article 34

Punishment should be given in accordance with Measures on Quota Tender of Export Commodities and Measures for Implementation of Administrative
Punishment of Ministry of Commerce in case of following activities during public bidding in accordance with Measures on Bidding for
Quota of Export Commodities and Measures for Implementation of Administrative Punishment of Ministry of Commerce. The serious cases
should be transferred to judicial departments for investigating and affixing criminal responsibilities.

Any cheating activities of violating these rules;

The activities of disturbing public bidding by acting in collusion to tender, false declaration of tender qualifications and other
means;

The activities that one wins a project but doesn’t pay tender bond in accordance with regulations;

Other activities that disrupt public bidding intentionally.

Article 35

Export quantity should be deemed as wasted export quantity if the enterprises do not hand over, transfer the quantity in accordance
with rules and do not obtain export license before the closing date of period of validity, or though obtain export license, do not
use the same export quantity in the license.

The enterprises whose wasted rate of tender export quantity is less than 5 per cent is exempted from punishment. If the enterprises
whose waste rate of tender export quantity less or equal to 5 per cent is less than 30 percent, their tender qualifications in next
year should be cancelled. If the enterprises whose waste rate of tender export quantity is more than 30 per cent, their tender qualification
for the same category of commodities in the next two years is cancelled.

The account formula of wasted rate for export quantity of winning a bid is as follows:

Waste rate of export quantity of winning a project = (The quantity that 100 percent amount of winning a project has been paid, but
the quantity has not been used + wasted rate of 20 per cent of recalled quantity of winning a bid) / (Tender winning quantity – transferred
quantity + assigned quantity – quantity handed over)

Chapter IV Supplementary Articles

Article 36

Bidding Committee open special account in the appointed bank for collecting tender bond and tender amount. CCCT is trusted to handle
concrete affairs. Bank of deposit and account information are published in the announcement for bidding by Bidding Committee.

Article 37

The announcement, circular and etc. of bidding for export quantity of textiles are published in International Business Daily and China
International Electronic Business Net by Bidding Committee.

Article 38

Any units, organizations or individuals can not publish regulations, announcements or circulars relating to bidding for export quantity
of textiles without the approval of Ministry of Commerce or Bidding Committee.

Article 39

The interpretation of these rules is vested in Ministry of Commerce.

Ministry of Commerce
2005-09-16

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON EXEMPTING RETURNABLE LIFE INSURANCES WITH OVER ONE-YEAR MATURITY SOLD BY INSURANCE COMPANIES FROM BUSINESS TAX

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Exempting Returnable Life Insurances with Over One-year
Maturity Sold by Insurance Companies from Business Tax

Cai Shui [2005] No.145

To finance departments (bureaus) and bureaus of local taxation of various provinces, autonomous regions, municipalities directly under
the Central Government and cities specifically designated in the state plan, as well as the finance bureau of the Xinjiang Production
and Construction Crops:

In accordance with pertinent provisions of the Circular of the Ministry of Finance and the State Administration of Taxation on Exempting
Several Items from Business Tax (Cai Shui Zi [94] No.002 ) and the Circular of the Ministry of Finance and State Administration of
Taxation on Issues Concerning the Exemption of Life Insurance from Business Tax (Cai Shui Zi [2001] No.118), upon deliberation, it’s
hereby decided that premium incomes gained from insurance products, which are sold by related insurance companies and satisfy tax
exemption requirements, shall be exempted from business tax. Please refer to the following appendix for the list of specific tax-free
insurance products.

Appendix: List of Insurance Products Exempted from Business Tax

Ministry of Finance

State Administration of Taxation

September 27, 2005 Appendix:List of Insurance Products Exempted from Business Tax

I. Heng An Standard Life Insurance

Heng An Standard Shengmingzhiguang Term Dread Disease Insurance (A)

Heng An Standard Shengmingzhiguang Term Dread Disease Insurance (B)

Heng An Standard Shengmingzhiguang Long-Term Dread Disease Insurance

Heng An Standard Lingchuangweilai Aggregate Participating Insurance (A)

Heng An Standard Lingchuangweilai Aggregate Participating Insurance (B)

Heng An Standard Accelerated Dread Disease Benefits Rider (B)

Heng An Standard Term Life Insurance Rider

Heng An Standard Group Term Life Insurance

Heng An Standard Group Dread Disease Insurance

II. Sun Life Everbright Life Insurance Co., Ltd.

Sun Life Everbright Liannianxi Annuities Insurance

III. China Continent Property & Casualty Insurance Company Ltd.

Continent Ankang Women’s Group Disease Insurance

Continent Group Dread Disease Insurance

Yongkang Dread Disease Rider

Continent Newborns’ DownSyndrome Medical Insurance

IV. Taikang Life Insurance Co., Ltd.

Taikang Yishengzunchong Term Life Insurance

Taikang Yishengzunchong Endowment Insurance

Taikang Yishengzunchong Dread Disease Rider

Taikang Women’s Reproductive Health Rider

Taikang Anxiangrensheng Dread Disease Rider

Taikang Anxiangwannian Annuities Insurance (Participating)

Taikang Anxinlicai Endowment Insurance

Taikang Medical Rider for Hospitalization Due to Illness

V. AIA Shanghai Branch

AIA Endowment 18-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 19-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 20-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 21-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 22-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 23-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 24-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 25-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 30-Year-Old Waiver of Premium Term Life Rider

10.

AIA Jubaopen Endowment Insurance

VI. AIA Jiangmen Branch

AIA Zhizunbao Children’s Waiver of Basic Premium Term Life Rider

AIA Endowment 18-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 19-Year-Old Waiver of Premium Term Life Rider

. AIA Endowment 20-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 21-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 22-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 23-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 24-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 25-Year-Old Waiver of Premium Term Life Rider

10.

AIA Endowment 30-Year-Old Waiver of Premium Term Life Rider

11.

AIA Jubaopen Endowment Insurance (Participating)

12.

AIA Kangjianwuyou Dread Disease Insurance

13.

AIA Kangjianwuyou Dread Disease Rider

14.

AIA Kangfuyisheng Dread Disease Insurance Rider

VII. AIA Beijing Branch

AIA Jucaibao Endowment Insurance (Participating)

AIA Jindun A Endowment Insurance

AIA Jindun B Endowment Insurance

VIII. AIA Shenzhen Branch

AIA Jubaopen Endowment Insurance (Participating)

AIA Endowment 18-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 19-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 20-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 21-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 22-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 23-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 24-Year-Old Waiver of Premium Term Life Rider

AIA Endowment 25-Year-Old Waiver of Premium Term Life Rider

10.

Endowment 30 Year-Old Waiver of Premium Term Life Rider

11.

AIA Kangjianwuyou Dread Disease Insurance

12.

AIA Kangjianwuyou Dread Disease Rider

13.

AIA Kangfuyisheng Dread Disease Rider

14.

AIA Jucaibao Endowment Insurance (Participating)

15.

AIA Jindun A Endowment Insurance

16.

AIA Jindun B Endowment Insurance

IX. AIA Guangzhou Branch

AIA Jiahui *Term Life Rider (*: five-year term, ten-year term, fifteen-year term, twenty-year term, twenty-five-year term, fifty-five
years old, sixty years old)

AIA Yucaibao Endowment Insurance (Participating)

AIA Yucaibao Waiver of Premium Term Life Insurance

AIA Hushenfu Term Life Insurance

AIA Kangfuyisheng Dread Disease Rider

AIA Kangjianwuyou Dread Disease Rider

AIA Kangjianwuyou Dread Disease Insurance

AIA Hushenfu Dread Disease Rider

AIA Jucaibao Endowment Insurance (Participating)

10.

AIA Jindun A Endowment Insurance

11.

AIA Jindun B Endowment Insurance

X. AIA Suzhou Branch

AIA Shouhushen Endowment Insurance

AIA Jinyang Annuities Insurance

AIA Jiahui *Term Life Rider (five-year term, ten-year term, fifteen-year term, twenty-year term, twenty-five-year term, fifty-five
years old, sixty years old)

AIA Yong’an Waiver of Premium Term Life Rider

AIA Ruyibao 5-Year Term Endowment Insurance

AIA Pay Life Endowment Special

AIA Jin’an Annuities Insurance

AIA Jinxiang Annuities Insurance

AIA Niannianhong *Endowment Insurance (Participating) (*: fifteen-year term, twenty-year term, twenty-five-year term, fifty years
old, fifty-five years old, sixty years old, sixty-five years old, eighty years old)

10.

AIA Children’s Dread Disease Rider

11.

AIA Cancer Prevention Health Insurance

12.

AIA Women’s Reproductive Health Rider

13.

AIA Kangfuyisheng Dread Disease Rider

XI. Chinalife Insurance Company Ltd.

Chinalife Hongyu Endowment Insurance (Participating)

Chinalife Hongbao Endowment Insurance (Participating)

Chinalife Antai Group Term Life Insurance

Chinalife Public Security Police’s Group Term Life Insurance

Chinalife Xiangbanyongyuan Endowment Annuities Insurance (Participating)

Chinalife Yongtai Group Annuities Insurance (Participating) (2003 Edition)

Chinalife Kangyu Dread Disease Insurance

XII. ING Capital Life Insurance Co., Ltd.

ING Capital Kangjian Dread Disease Pension Plan

ING Capital Xiangrui Annuities Insurance

ING Capital Jinli Endowment Insurance (Participating)

ING Capital Xiangtai Annuities Insurance

ING Capital Huanleniannian Endowment Insurance (Participating)

ING Capital Jixiangruyi Increasing Whole Life Insurance (Participating)

ING Capital Cuicanrensheng Annuities Insurance (Participating)

XIII. Generali China Life Insurance Co. Ltd

Generali Comprehensive Hospital Benefits Group Medical Insurance

Generali Sunshine Group Annuities Insurance (Participating)

Generali Medicare Plus Group Medical Insurance (A)

Generali Outpatients’ Group Medical Rider

Generali Dread Disease Benefits Group Disease Rider (A)

Generali Dread Disease Benefits Group Disease Rider (B)

Generali Dread Disease Benefits Group Disease Rider (C)

Generali Group Term Life Insurance

Generali Group Term Life Insurance Rider

10.

Generali Yikangxing Endowment Insurance

11.

Generali Kanglexing Whole Life Insurance

12.

Generali Kanglexing Dread Disease Rider

Ministry of Finance, State Administration of Taxation
2005-09-27

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE RELEVANT ISSUES CONCERNING FURTHER SIMPLIFYING THE FORMALITIES FOR FOREIGN EXCHANGE PAYMENT AND VERIFICATION IN IMPORT TRADE

the State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on the Relevant Issues concerning Further Simplifying the Formalities for Foreign
Exchange Payment and Verification in Import Trade

Hui Fa [2005] No. 67

September 15, 2005

The branches and foreign exchange departments of the State Administration of Foreign Exchange of all provinces, autonomous regions
and municipalities directly under the Central Government, and the municipal branches of the State Administration of Foreign Exchange
in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo and all the designated Chinese-funded foreign exchange banks:

For the purpose of further improving the foreign exchange administration of current accounts and promoting the facilitation of trade,
the State Administration of Foreign Exchange (hereinafter referred to as the SAFE) has made the decision to simplify the formalities
for foreign exchange payment and verification in import trade. The Notice on the relevant issues is hereby promulgated as follows:

Simplifying the vouchers on verification of foreign exchange payment in import trade

The provision that a letter of guarantee for the advanced payment shall be offered when an enterprise pays foreign exchange for importing
the goods subject to advanced payment, shall be abolished, and an enterprise shall, upon the strength of the verification form of
foreign exchange payment in import trade, the import contract, nominal invoices as well as other concerned documents, go through
the formalities for foreign exchange payment at the designated foreign exchange bank (hereinafter referred to as the bank).

The provision that the vouchers on the verification of foreign exchange payment in import trade include the import license, automatic
import registration certificate and the import bill of lading under the payment upon delivery, shall be abolished, and an enterprise
needs not to offer any of the aforesaid documents when going through the formalities for foreign exchange payment at the bank.

II.

Simplifying the administration on the List of Import Entities Making External Payment of Foreign Exchange (hereinafter referred to
as the List)

When applying for entering into the List, the enterprise, which has opened a current foreign exchange account as examined and approved
by the branch or sub-branch of the SAFE (hereinafter referred to as the foreign exchange bureau), needs not to provide the form of
archival filing and registration of import and export rights, the industrial and commercial business license and the certificate
of code of the technical supervision bureau, etc. any more, and may directly apply for entering into the List upon the strength of
the third copy of the Document on Approval of Foreign Exchange Business under Current Accounts for the enterprise to keep and an
application form for the registration in the List of import entities.

The provision that an enterprise whose industrial and commercial business license is only valid for less than one year may not make
registration for entering into the List shall be abolished.

The provision that an enterprise which has not operated import business for two consecutive years shall be deleted from the List”
shall be abolished.

III.

Canceling the record-keeping management of foreign exchange payments in import trade for the cases under which the business entity
declared for imported goods is inconsistent with the entity that pays foreign exchange, and simplifying the formalities for foreign
exchange payment and verification in import trade

Canceling the archiving administration of foreign exchange payments in import trade for the cases under which the business entity
declared for imported goods is inconsistent with the entity that pays foreign exchange

The entity declared for imported goods may, via the function of online delivery of documents of the China E-port Outward Remittance
System of Foreign Exchange, submit the original e-accounts of the customs declaration forms for imported goods to the paying bank;
or an enterprise that needs to pay foreign exchange may, upon the strength of the verification form of foreign exchange payments
in import trade, the customs declaration form for imported goods, import contract, commercial invoices as well as the agency agreement,
directly go to the bank to handle the procedures for paying foreign exchange with the China E-port Enterprise IC Card of the business
entity declared for imported goods. The bank shall examine the authenticity of the relevant certificates, check and write off and
settle the original e-accounts of customs declaration form for imported goods.

Where an enterprise handles the verification operations upon the strength of the customs declaration form for imported goods in which
the business entity declared for imported goods is inconsistent with the entity that pays foreign exchange, it needs not to provide
to the foreign exchange bureau the import license, automatic import registration certificate, tax-free certificate or other approval
document.

When handling the formalities for verification and cancellation, the foreign exchange bureau shall check the verification form of
foreign exchange payment in import trade, import contract, record-keeping form of foreign exchange payment in import trade (if record-keeping
is required), the customs declaration form for imported goods as well as the agency agreement, and check and write off and settle
the original e-accounts of the customs declaration form for imported goods by using Super-financial IC Cards..

IV.

Relaxing the record-keeping management of foreign exchange payments in import trade for the payment in other places

The provision that no certificate may be issued and no foreign exchange may be paid if an enterprise making payment in other places
has no branch, no loan for projects or no current foreign exchange account at the place where the foreign exchange is paid, shall
be abolished.

When handling the issuance of certificates or paying foreign exchange in other places, an enterprise shall, upon the strength of the
letter of record-keeping application , the import contract, the agency agreement (it shall be offered in the case of agency by mandate)
affixed with its seal, as well as the relevant documents as prescribed by the SAFE under different settlement methods, go through
the formalities for archival filing of foreign exchange payment in import trade as the payment in other places at the foreign exchange
bureau at the place where the enterprise has made registration. The bank at the place where the enterprise pays foreign exchange
shall, upon the strength of the registration form of foreign exchange payment in import trade, the verification form of foreign exchange
payment in import trade as well as the documents as proscribed by the provisions on the administration of selling and payment of
foreign exchange, conduct the business of foreign exchange payment in other places. In the case of foreign exchange payment subject
to the payment upon delivery, it is necessary for the bank to check the authenticity of the customs declaration form for imported
goods via the China E-Port Outward Remittance System of Foreign Exchange, and to check and write off and settle the original e-accounts
of the customs declaration form for imported goods.

As to the registration form of foreign exchange payment in import trade that is issued by the local foreign exchange bureau at the
locality of an enterprise that make the payment in other places, the procedures for authenticity verification by calls and confirmation
by affixing the seal of the foreign exchange bureau at the place where the enterprise pay foreign exchange shall be cancelled, and
the enterprise may directly handle the procedures for certificate issuance or foreign exchange payment at the bank where the foreign
exchange is paid.

The provisions in Articles 1, 3 and 4 of this Notice shall not be applicable to those enterprises that are not listed into the List
or into the Name list of Import Entities Subject to the Authenticity Examination and Approval of the SAFE.

VI.

This Notice shall not apply to those special economic areas such as bonded zones. As for the enterprises within enclosed customs supervision
zones such as bonded zones which have obtained the rights to conduct foreign trade, they shall be governed by this Notice when going
through the formalities for verification of foreign exchange payment in import trade.

VII.

This Notice shall come into force as of October 1, 2005. And in the case of any conflict between the previous provisions and this
Notice, the latter shall prevail.

Upon receipt of this Notice, every branch shall promptly transmit it to the sub-branches and foreign-funded banks under their respective
jurisdiction, and every designated Chinese-funded foreign exchange bank shall promptly transmit this Notice to its branches and sub-branches.
Any question encountered during the implementation of this Notice shall be promptly fed back to the Current Account Administrative
Department of the SAFE.

the State Administration of Foreign Exchange
2005-09-15

GUIDING OPINIONS OF THE MINISTRY OF COMMERCE ON PROMOTING THE REFORM AND DEVELOPMENT OF SMALL AND MEDIUM CIRCULATION ENTERPRISES

Ministry of Commerce

Guiding Opinions of the Ministry of Commerce on Promoting the Reform and Development of Small and Medium Circulation Enterprises

September 26, 2005

In order to implement the spirits of the Several Opinions of the State Council on Promoting the Development of Circulation Industry
(Guo Fa [2005] No.19) and the Several Opinions of the State Council on Encouraging, Supporting and Guiding the Development of the
Individual, Private and Non-Public Enterprises (Guo Fa [2005] No.3), provide guidance to small and medium circulation enterprises
(including small and medium enterprises engaged in the retail and wholesale of commodities, foreign trade, catering business, accommodation
industry and other service industries offered to citizens), quicken the pace of reform and development, and promote the sound development
of these small and medium circulation enterprises, several Opinions are hereby presented as follows:

Guiding Ideology and Development Objective

As leading players of the circulation Industry, small and medium circulation enterprises are account for approximately 99% of all
the circulation enterprises throughout the country, obtain a sales volume accounting for more than 90% of the total volume of retail
sales of social consumables and provide a wealth of employment opportunities. In recent years since the pace of adjustment in the
distribution of the state-owned economy has been quickened, small and medium circulation enterprises are playing increasingly important
roles in boosting the steady increase in national economy, attract investment from the private sector, make life easier for the people,
lighten unemployment pressure, promote the flourishing of market and maintain social stability. However, small and medium circulation
enterprises, which are short of necessary policy supports and guidance, have their sound development restrained by many difficulties
and problems encountered by such enterprises on their road to development for long.

Guiding ideology: “we shall take the important thought of Three Represents as guide to action, fully implement the spirits of the
Sixteenth National Congress of CPC, the Third Plenary Session of the Sixteenth Central Committee of the CPC and the national work
conference on circulation held by the State Council, establish scientific development views, give full scope to the important role
of small and medium circulation enterprises in creating more jobs, solving issues concerning agriculture, countryside and farmers,
promote the sustained and coordinated development of national economy, propel the reform of small and medium circulation enterprises,
push ahead the application of information technology and modern marketing techniques by these enterprises, vigorously develop modern
circulation modes, keep improving managerial and administrative expertise as well as the level of modernization, give more supports,
take effective measures to solve major problems restraining the development of small and medium circulation enterprises, better the
operating environment, and advance the sound development of small and medium circulation enterprises.”

Development Objectives: By the year 2010, medium circulation enterprises shall have established the modern enterprise system basically,
while small circulation enterprises shall have perfected their operation and management system, further standardized their business
activities, notably raised their managerial and administrative expertise, markedly increased their abilities to resist risks, and
significantly improved circulation infrastructure and application of modern information technology. By the year 2010, small and medium
circulation enterprises shall have further increased in numbers, proceeded to have an average annual growth rate of sales revenue
reaching 9% which is a little bit more than that of the national economy, fostered a batch of famous brands of small and medium enterprises,
regulated the business activates according to pertinent industry standards, further enhanced the capabilities of creating jobs for
people and risen to the top among various industries in terms of total newly-added employment.

II.

We shall deepen the reform in order to increase the vitality of small and medium circulation enterprises

Competent commercial departments at various levels shall combine with particular situations in the local areas, deepen the reform
of state-owned small and medium circulation enterprises, further increase the vitality of these enterprises, press ahead with the
reform of ownership structure of enterprises, establish a modern system of ownership with clearly-defined property rights, specified
rights and responsibilities, strict protection and smooth circulation, provide guidance to enterprises in reforming their property
rights system and operational mechanism by means of conglomeration, acquisition, merger, lease, contract operation and sales, quicken
the restructuring of state-owned small and medium circulation enterprises, vigorously promote the reform of the joint stock system
among medium circulation enterprises, encourage and support the participation of non-public capital into the reform of state-owned
small and medium circulation enterprises, such as the private capital and foreign investment, so as to diversify the capital subjects,
develop with great efforts the mixed ownership with the state-owned capital, collective capital and non-public capital.

We shall facilitate medium circulation enterprises to deepen the reform of their enterprises’ systems, prefect their corporate governance,
transform the management mechanism, improve enterprise operations and systems concerning personnel and income distribution and mobilize
the initiative of enterprises’ employees in accordance with requirements of the modern enterprise system, provide guidance to small
and medium circulation enterprises in focusing on basic management, further strengthen the business management, legally establish
internal control systems of enterprises related to the administration of management of commodities, financial management, contract
management, human resource management and safety management, as well as perfect the enterprise internal control codes and standards.

We shall encourage dominating enterprises to merge with, restructure and administer under the custody the difficulty-ridden ones,
declare bankruptcy of the insolvent enterprises with losses for long time and little hope of recovery, reinforce the guidance and
regulation in the reform of small and medium circulation enterprises, standardize the operation during the restructuring of enterprises,
prevent the loss of state assets, prevent the evasion and suspension of debts owned to banks, balance the reform, development and
stability in a correct way, maintain legitimate rights and interests of workers and staff, as well as maintain the social stability.

Competent commercial departments at all localities shall actively coordinate pertinent local departments for support small and medium
circulation enterprises to promulgate tax and financial support policies related to pioneering work encouragement and supports given
to small and medium circulation enterprises for business innovation, technical innovation and market exploration, reduce costs for
the restructuring and reform of small and medium circulation enterprises, encourage the financing by means of income from operation
of state-owned enterprises’ assets, liquidity of commercial land, reduction of state-owned capital in circulation enterprises, transfer
and financial allocation, in places where conditions permit, set up special funds for the reform of state-owned small and medium
circulation enterprises which shall be used to pay the restructuring fee which is payable by and fails to be paid by restructured
enterprises lacking strength to do so, and to pay the social insurance and economic compensation, the payment of which the cash after
liquidity of assets of enterprises in bankruptcy is not sufficient to cover, actively coordinate with the local department for real
estate administration for its support, solve problems on the ownership of commercial real estate which has been used for long by
state-owned small and medium circulation enterprises, and earnestly implement the preferential policies of the State concerning the
reemployment of laid-off workers by enterprises and concerning the establishment of small and medium enterprises by laid-off workers
from state-owned enterprises.

III.

We shall vigorously develop the modern circulation modes, and enhance the level of modernization of small and medium circulation enterprises

We shall actively press ahead with the development of organizational forms and service methods such as the chain operation, franchise
operation, logistics distribution, agency system, multimode transport and e-commerce. Small and medium circulation enterprises may
focus on the development of franchise chain and voluntary chains among small and medium enterprises according to own characters,
as well as further enhance the level of organization of small and medium enterprises. Small and medium circulation enterprises shall
be encouraged to reform the traditional circulation industry modality by means of modern circulation modes, develop the consortium
purchasing, strive to improve the service quality and increase profits from economies of scale.

We shall drive small and medium circulation enterprises to implement brand strategies, vigorously develop characteristic, specialized
and branded operations, foster a batch of famous brands, carry forward and develop China’s time-honored brands with great efforts;
shall offer guidance to the said enterprises to carry out disturbed operation and change the status of old and identical business
modes, lack of service brand and inferior methods of competition focusing on “price war”; shall actively promote cooperation, franchise
operation, voluntary chains and other methods to set up a number of small and medium circulation enterprises with famous service
brands and advantages of subjects of diversified investment, with support from competitive enterprises.

Competent commercial departments in all localities shall actively coordinate with pertinent local departments, earnestly implement
various support policies laid down in the Circular of the General Office of the State Council on Transmitting Several Opinions of
the Reform Office of the State Council and the State Economic and Trade Commission Concerning the Promotion of Development of Chain
Operation (Guo Ban Fa [2002] No.49), simplify administrative procedures for examination and approval, exercise a unified tax collection
and reduce duplicate inspection so as to provide small and medium circulation enterprises with a good external environment for their
development.

We shall provide guidance to small and medium enterprises in applying information technology, which is suited to their own development
level and actual needs, with a view to conducting e-commerce pilot for these enterprises in areas where conditions permit.

IV.

We shall support the establishment small and medium circulation enterprises and relax restrictions on market access

We shall adhere to develop big circulation companies and large circulation groups simultaneously, encourage the establishment of small
and medium circulation enterprises, actively create new jobs, give more supports to these enterprises in terms of the market access,
the designated operation of franchised commodities and services as well as land use, make special provisions of State laws and regulations
as well as preferential policies granted to foreign-funded enterprises and big enterprises in various places available to small and
medium circulation enterprises, simplify procedures of examination and approval for the establishment of the said enterprises from
the standpoints of encouraging establishment and making the registration easier, and never specify pre-examination and approval unless
particularly stipulated by laws, administrative rules and regulations.

We shall create an external environment for fair competition, earnestly clear up administrative rules and regulations as well as policies
which are not conducive to the development of small and medium circulation enterprises, study and formulate policies and measures
which are both commensurate with rules of WTO and favorable to the development of the said enterprises, further rectify and regulate
the market order, seriously investigate undue conducts of competition, adhere to cancel the regional protectionism, create a market
environment favorable for the fair competition between small and medium circulation enterprises and large enterprises, effectively
alleviate burdens of small and medium circulation enterprises, supervise and inspect charges collectable which have been canceled
and insist on making investigation and giving punishments if more burdens are cast on small and medium circulation enterprises by
means of various pretexts and in disguised forms.

We shall support to carry out the integration of domestic and foreign trade, accelerate the integration between domestic and foreign
export-oriented enterprises, end the operation and management system concerning barriers between domestic and foreign trade for bulk
commodities, encourage small and medium circulation enterprises to carry out their import & export business and domestic operations
based on actual conditions of enterprises, promote the cooperation between domestic and overseas export-oriented enterprises as well
as their entrance into strategic and cooperative partnership, give an impetus to these enterprises to well display their respective
advantages and explore domestic and foreign markets together, offer financial support to small and medium enterprises meeting requirements
set forth in the Measures for Administration of the Funds for Small and Medium Sized Enterprises to Explore the International Market
(For Trial Implementation) and the Detailed Rules for the Implementation of the Measures for Administration of the Funds for Small
and Medium Sized Enterprises to Explore the International Market, boost small and medium circulation enterprises to attract advanced
experiences from foreign country and technologies for operation and management, encourage small and medium circulation enterprises
where conditions permit to implement strategies of “going global”, particularly to joint hands with dominating industrial enterprises
in opening up international market and to actively expand import and export trade and external service, and give the same treatments
to small and medium circulation enterprises as those to other enterprises in terms of external investment, import and export credit,
export credit insurance and other matters.

We shall perfect the financing system of small and medium circulation enterprises and effectively solve difficulties in financing
problem

We shall actively strive for special funds set up by pertinent local departments for the development of small and medium enterprises,
give support to the development of these enterprises, encourage the establishment of funds used for the said development in areas
where conditions permit, or set aside part of funds which is used for the development of the said enterprises and under the unified
support of the government to give special assistance in the establishment of these enterprises, the expansion of operation and service
scales, the training for personnel, the credit guaranty as well as the construction of service system. Competent commercial departments
in all localities shall actively coordinate with any and all commercial banks, propel these banks to give more credit aid to small
and medium circulation enterprises in accordance with the spirits of the Guiding Opinions of the People’s Bank of China on Further
Strengthening the Credit Aid Given to Well-Performing and Trustworthy Small and Medium Enterprises with Marketable Products (Yin
Fa [2002] No.224), improve financial service offered to these enterprises, increase the line of credit and develop new credit service
items; shall encourage various credit guaranty agencies to actively carry out guaranty services oriented to small and medium circulation
enterprises; shall formulate corresponding policies, encourage and guide funds provided by all quarters of the society into the transformation
and development of small and medium circulation enterprises.

We shall broaden financing channels, support small and medium circulation enterprises meeting certain requirements to raise funds
by means of listing, re-arrangement of assets, equity swap and other means, encourage the equity participation of listed companies
and foreign businessmen, integrate small and medium circulation enterprises, guide, propel and regulate these enterprises to carry
out reorganization and transformation with foreign investment which is obtained by the means of equity or contractual joint venture
or transfer of property right. Small and medium circulation enterprises may apply for issuing enterprise bonds according to pertinent
State provisions.

VI.

We shall practically incorporate the development of small and medium circulation enterprises into the plan for the development of
local economy, and give active support to supply of land and power

Competent commercial departments in all localities shall make a rational layout for big, medium and small commodity network by combining
the urban development, urban renewal and the development of newly-built residential areas, promote the well-balanced growth between
large stores and small and medium shops, make rational arrangement for the land use of small and medium circulation enterprises,
provide these enterprises with living and development space. Competent commercial departments shall coordinate with urban planning
department, give support to small and medium circulation enterprises meeting requirements of the overall urban planning in utilizing
the land, from which industrial enterprises of large medium-sized municipalities, which produce a lot of pollution to urban districts,
cover wide area and is not adapted to the functional orientation of such municipalities, in accordance with such planning, and shall
gradually remedy irrationalities that the price for electricity consumed by circulation enterprises are much higher than that of
industrial enterprises.

We shall give more support to small and medium circulation enterprises located in central, western and northeastern parts of China.
Local competent commercial departments in western and northeastern China shall actively strive for and well implement various policies
concerning the development of the western region of China and the promotion of old industrial bases northwest of China, including
policies related to financial affairs, taxation and land use, encourage and attract domestic investors of all kinds jointly with
foreign businessmen to invest in small and medium circulation enterprises in central, western and northeastern parts of China.

We shall quicken the pace of development of small and medium circulation enterprises located in rural areas, actively encourage the
establishment of small and medium circulation enterprises serving farmers, rural areas and agriculture, pay attention to meet the
local needs, develop small and medium circulation enterprises with advantages by taking such measures as are suitable to local conditions,
absorb surplus rural labors with great efforts into the circulation industry, encourage dominating circulation enterprises to transform
existing rural circulation network, focus on the improvement of conditions for local circulation and service, enhance the level of
rural commodity circulation, and encourage small and medium circulation enterprises to grow into leading enterprises conducting integrated
operations of “trade, industry and agriculture, as well as production, supply and marketing”, and to participate in the circulation
of agricultural products.

VII.

We shall actively support small and medium circulation enterprises to carry out innovation in science and technology and technical
transformation

We shall actively advocate the application of modern management techniques of science and technology nature, raise capabilities of
small and medium circulation enterprises of applying modern scientific and technological achievements, support these enterprises
to transform technologies, change their images, play an active part in adopting modern means including the computer management, promote
the use of point sales system (POS) in the operations of retail enterprises and their stores, gradually establish and improve the
Management Information System (MIS), energetically create conditions and enhance the information level of small and medium circulation
enterprises.

We shall earnestly implement pertinent State policies on supporting the technical transformation of enterprises, incorporate technical
transformation items meeting requirements of State industrial policies into national debt items and give subsidies to these technical
transformation items. Competent commercial departments in all localities shall push for more support from relevant local departments
to small and medium circulation enterprises, formulate policies in a certain number to support the investment in technical innovation
and equipment purchase, as well as effectively support innovation in science and technology pursuant to related support policies.

We shall fully introduce financial and banking instruments to support circulation enterprises to adjust their structures, give key
support to the promotion and application of modern circulation modes. Local people’s governments at various levels shall, by granting
fiscal subsidies and approving land use, encourage the development of enterprises engaged in chain operation, particularly, support
enterprises to set up marketing network in the urban communities and rural areas; shall guide enterprises in redoubling their efforts
towards the transformation of traditional operation modes by means of information technology, in applying modern management technology,
promoting efficiency in management and reducing costs; shall encourage various circulation enterprises to develop their e-commerce.

VIII.

We shall establish and improve service system of small and medium circulation enterprises, provide human resources development and
offer information service

We shall encourage the establishment of public information service platforms oriented to a large number of small and medium circulation
enterprises in areas where conditions permit, so as to provide these enterprises with information services related to policies, technologies,
market and human resources.

We shall reinforce the training offered to human resources, integrate social resources, innovate training methods, form a training
mechanism of government leadership, social support as well as power of an enterprise in management, engage in the training offered
to small and medium circulation enterprises in terms of investment consulting and vocational skills, actively explore construction
of vocational education system in the field of circulation Industry, quicken the pace of training various talents required by these
enterprises, strengthen the career training, improve professional ethics of the employed, increase their awareness of credit standing,
competition and service, as well as enhance their professional competence.

We shall actively bring forces of industry associations into play, boost the development of intermediary organs, such as industry
associations of small and medium enterprises, give play to the role of these organs in serving enterprises, self-regulating industries
and reinforcing the communication between enterprises and the government, encourage various intermediary organs in the society to
strengthen their sense of service, provide small and medium enterprises with services related to the guidance and assistance in starting
their own businesses, to business diagnosis, marketing, investment and financing, loan guarantee, transaction of property rights,
technical support, personnel training, external cooperation, exhibitions and trade fairs and legal consulting.

IX.

We shall reinforce organization and leadership, and do solid work well

Competent commercial departments in all localities shall further change their mind, seek unity of thinking, fully recognize the great
significance of accelerating the development of small and medium circulation enterprises in the new stage under new circumstances
and a new system, really give an important priority to the promotion of development of the said enterprises, learn and use for reference
the experiences drawn from the development of small and medium enterprises with much support given and respects shown by governments
of developed countries, deal well with the support, guidance and service towards these enterprises, try to create a good environment
for them, carry out further research, exploration on and establish a statistical system regarding small and medium circulation enterprises.

We shall change functions, regard the support to the development of small and medium circulation enterprises as functions of competent
commercial departments, and focus on such support, fortify the sense in serving small and medium circulation enterprises, study specific
measures to solve difficulties and problems encountered by these enterprises on their way to development, reinforce media and publicity
work, fully utilize the news media to create a sound environment of public opinions for the development of such enterprises.

Competent commercial departments at various levels shall, under the leadership of and with support from local committees of CPC and
people’s governments, strengthen the communication and coordination among the development and reform commissions, financial sectors,
banking sectors, taxation authorities and administrations for Industry and commerce, play an active part in striving for understandings
and supports from all quarters of the society, present, in conjunction with pertinent departments, working plans and application
programs for the local implementation of the Law of the People’s Republic of China on the Promotion of Small and Medium-sized Enterprises
and these Opinions, enact and enforce specific policies and measures for driving the development of small and medium circulation
enterprises, clarify the focus of work, take such measures as are suitable to local conditions, truly deal well with coordination,
guidance and service work.

Ministry of Commerce
2005-09-26

DETAILED RULES FOR IMPLEMENTING THE MANAGEMENT OF IMPORT TARIFF QUOTA OF WOOL AND WOOLEN SLIVER

Ministry of Commerce

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

No. 65

Detailed Rules for Implementing the management of Import Tariff Quota of Wool and Woolen Sliver were drawn up in accordance with Temporary
Measures on Management of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry of Commerce and National Development
and Reform Commission), and are hereby published.

Ministry of Commerce

September 26, 2005

Detailed Rules for Implementing the management of Import Tariff Quota of Wool and Woolen Sliver

Article 1

These detailed rules are drawn up for the purposes of implementing the management of import tariff quota of wool and woolen sliver
in accordance with Temporary Measures on Management of Import Tariff Quota of Agricultural Products (Decree No. 4 2003 of Ministry
of Commerce and National Development and Reform Commission ).

Article 2

The quantity of import tariff quota of wool in 2006 is 287 thousand Ton, and woolen sliver is 80 thousand Ton.

Article 3

All wool and woolen sliver imported by trade are brought into management of import tariff quota of wool and woolen sliver.

Article 4

In 2006, import tariff quota is distributed in the form of “First come, first obtain”. The applicants apply for import tariff quota
of wool and woolen sliver by import contract of wool and woolen sliver or Approval Certificate of Processing Trade Business and related
materials. Ministry of Commerce issues Certificate of Import Tariff Quota of Agricultural Products to the qualified applicants according
to the principle of “First come, first obtain” through authorized organs. The application is not accepted when the distributed accumulative
total quantity comes to the quantity of tariff quota of wool and woolen in 2006.

Article 5

Application requirements

The enterprises that have registered in industrial and commercial administrations before January 1, 2006 and passed the annual examination
made by industrial and commercial administrations in accordance with rules;

No activities breaking the rules in import of wool and woolen sliver in customs, industry and commerce, taxation, quality examination
and foreign exchange;

No activities that violate Temporary Measures on Management of Import Tariff Quota of Agricultural Products and Detailed Rules for
Implementing the Management of Import Tariff Quota of Wool and Woolen Sliver in 2005 published by Ministry of Commerce and National
Development and Reform Commission.

Article 6

Quota applicants submit their applications to the organs authorized by Ministry of Commerce in the area the enterprises are located
by import contract of wool and woolen sliver (Processing trade enterprises should also provide Approval Certificate of Processing
Trade Business. The applicants should fill in Application Form for Import Tariff Quota of Wool and Woolen Sliver (see Appendix 1)
and provide above materials.

Article 7

Quota applicants may obtain the Application Form for Import Tariff Quota of Wool and Woolen Sliver from the organs authorized by Ministry
of Commerce or download (copy) it from the network of Ministry of Commerce: https://www.mofcom.gov.cn.

Article 8

Quota applicants may apply for tariff quota more times in Gregorian calendar year, but must abide by:

The accumulative total quantity of import tariff quota applied before September 30, 2006 by the applicants who had real import achievements
in 2005 (except for processing trade, the same below) does not exceed actual import quantity in 2005(according to the accumulative
quantity in License for Import Tariff Quota of Agricultural Products received by original license issuing organ and signed by the
customs. 300 ton may be applied for if the actual import quantity in 2005 is less than 300 ton.

The accumulative quantity applied before September 30,2006 by the applicants who had no real import achievements in 2005 does not
exceed 300 ton.

Article 9

If the final consumers that obtained quota finish the import quantity stipulated in Article 8 (It is calculated according to the
accumulative quantity in License for Import Tariff Quota of Agricultural Products received by original license issuing organs and
signed by the customs) after September 30, they may apply for import quota continuously.

Article 10

The organs authorized by Ministry of Commerce should apply for the quota through computer internet system of Ministry of Commerce
after verification and confirming that the applications meet with the requirements of Article 5 , 8 and 9, and fax the verified and
signed enterprises’ application form to Ministry of Commerce. The subsequence shown in management network terminal of Ministry of
Commerce is taken as the criterion.

Article 11

Ministry of Commerce informs the authorized organs the approval result within 5 working days at the receipt of the application through
inter-net and the faxed paper.

Article 12

The organs authorized by Ministry of Commerce issue License for Import Tariff Quota of Agricultural Products to final consumers according
to the quantity approved by Ministry of Commerce at the receipt of approval notice.

Article 13

License for Import Tariff Quota of Agricultural Products is valid within 6 months as of the issuing day, but the period of validity
must not exceed December 31, 2006. The period of validity of License for Import Tariff Quota of Agricultural Products must not exceed
the closing date of reselling export completed products in Approval Certificate of Processing Trade Business.

Article 14

If the products that are shipped from starting port before December 31, 2006 and arrive in the next year, the final consumers should
apply for extension to original license issuing organs before December 31. The extension must not exceed the end of February, 2007.
To the processing trade, if the import has not been finished or has not been wholly finished before December 31, the License for
Import Tariff Quota of Agricultural Products for next year may be obtained for the part that has not been imported by original tariff
quota license, but the newly obtained quota license must not exceed the closing date of reselling export completed products in the
original Approval Certificate of Processing Trade Business.

Article 15

If there is any change or extension in processing trade business, a new License for Import Tariff Quota of Agricultural Products should
be obtained in original license issuing organs by Changing Certificate of Approval Certificate of Processing Trade Business and License
for Import Tariff Quota of Agricultural Products. The period of validity must not exceed the changed or extended deadline in Changing
Certificate of Approval Certificate of Procession Trade Business.

Article 16

If final consumers do not use tariff quota within the period of validity of quota license, the original quota license should be returned
to original license issuing organs. Ministry of Commerce should recall the quota listed in the license and bring it into tariff quota
allowance of wool and woolen sliver.

Article 17

Whoever obtains License for Import Tariff Quota of Agricultural Products by cheating with forged contract or materials will be punished
in accordance with the provisions of Temporary Measures on Management of Import Tariff Quota of Agricultural Products.

Article 18

Final consumers should send the first receipt (the document used by the consignees to go through the customs) of License for Import
Tariff Quota of Agricultural Products signed by the customs to original license issuing organs within 20 working days after going
through custom formalities.

Article 19

The interpretation of these detailed rules is vested in Ministry of Commerce.

Appendix :

(1)

Application Form for Import Tariff Quota of Wool and Woolen Sliver

(2)

Tax Items and Rate Schedule of Import of Wool and Woolen Sliver in 2006

Ministry of Commerce
2005-09-26

12Page 2 of 2

Expungements

DECISION OF SAIC ON ADJUSTING RELEVANT CLAUSES IN REGULATIONS ON SUPERVISION OF ADVERTISEMENTS ACCORDING TO NEWLY AMENDED DETAILED RULES...

MEASURES FOR THE ADMINISTRATION OF QUALITY TESTING OF CONSTRUCTION PROJECTS

MINISTRY OF COMMERCE ANNOUNCEMENT NO. 62, 2005 ON NON STATE-RUN TRADE PERMISSIBLE IMPORT AMOUNT, DISTRIBUTION GIST AND APPLICATION PROCEDURE OF CRUDE OIL AND PRODUCT OIL

MEASURES FOR THE ADMINISTRATION ON THE QUALIFICATION CONFIRMATION OF BID INVITATION AGENCIES FOR PROJECTS INVESTED BY THE CENTRAL GOVERNMENT

DETAILED RULES FOR APPLYING AND DISTRIBUTING IMPORT TARIFF QUOTA OF SUGAR

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON STRENGTHENING TAX REVENUE ADMINISTRATION IN COAL INDUSTRY

CIRCULAR OF THE MINISTRY OF COMMERCE ON PRINTING AND DISTRIBUTING THE DETAILED IMPLEMENTATION RULES FOR BID INVITATION FOR TEXTILE EXPORT QUOTA

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON EXEMPTING RETURNABLE LIFE INSURANCES WITH OVER ONE-YEAR MATURITY SOLD BY INSURANCE COMPANIES FROM BUSINESS TAX

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE RELEVANT ISSUES CONCERNING FURTHER SIMPLIFYING THE FORMALITIES FOR FOREIGN EXCHANGE PAYMENT AND VERIFICATION IN IMPORT TRADE

GUIDING OPINIONS OF THE MINISTRY OF COMMERCE ON PROMOTING THE REFORM AND DEVELOPMENT OF SMALL AND MEDIUM CIRCULATION ENTERPRISES

DETAILED RULES FOR IMPLEMENTING THE MANAGEMENT OF IMPORT TARIFF QUOTA OF WOOL AND WOOLEN SLIVER

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