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THE RULES OF VERIFICATION OF BOND TRADING AND NEGOTIATION IN COUNTRYSIDE INTERBANK BOND MARKET

The People’s Bank of China

Announcement of the People’s Bank of China

NO.19

With a view to improving the administrative examination and approval efficiency, strengthening the market transparency, protecting
the lawful rights and interests of investors, and promote the normalized and healthy development of interbank bond market, the People’s
Bank of China formulates the Rules of Verification of Bond Trading and Negotiation in Countryside Inter-bank Bond Market; it is thereby
published.

The People’s Bank of China

December 7, 2004

The Rules of Verification of Bond Trading and Negotiation in Countryside Interbank Bond Market

Article 1

The Rules are formulated with a view to normalizing the verification of bond trading and negotiation in the interbank bond market,
and maintaining the lawful rights and interests of investors, in accordance with such laws, regulations and rules as the Law of the
People’s Republic of China on the People’s Bank of China, the Administrative License Law of the People’s Republic of China, the Measures
for the Implementation of the People’s Bank of China of Administrative License, and the Measures for the Administration of Bond Trading
in Countryside Inter-bank Bond Market.

Article 2

The bond in the Rules shall have the same meaning as the bond in the Measures for the Administration of Bond Trading in Countryside
Inter-bank Bond Market promulgated by the People’s Bank of China.

Article 3

A bond issuer (hereinafter referred to as the issuer) applying for trading and negotiation of the bond issued by it in the inter-bank
bond market (hereinafter referred to as the trading and negotiation ) shall report term by term to the People’s Bank of China for
verification.

The trading and negotiation of short-tem financing bond of securities companies shall be executed in accordance with the Measures
for Administration of Short-term Financing Bond of Security Companies (announcement of the People’s Bank of China, [2004] No. 12)

Article 4

An issuer applying for trading and negotiation of the bond issued by it shall satisfy the following conditions:

(1)

The bond has been issued legally;

(2)

The credit-debit relationship has been established and the registration thereof has been completed;

(3)

A relatively sound governance structure and system have been possessed and no material violation of laws, regulations and rules occurred
during the two years prior to the application.

(4)

The actual amount issued of the bond shall not be less than 500 Million RMB;

(5)

An individual investor shall not hold more than 30% of the amount issued of the bond; and

(6)

Other conditions provided for by the People’s Bank of China.

Article 5

An issuer applying for trading and negotiation of the bond issued by it shall submit following documents:

(1)

The application report for the trading and negotiation;

(2)

The documents of competent authorities for the approval of the issuance of the bond;

(3)

The Article of Association or issuing proclamation for the issuance of the bond;

(4)

The report of the information of the issuance of the bond;

(5)

The register of the holders ranking top 30 in the amount held (for the holders less than 30, the register of the actual holders);

(6)

The audited financial statements of the issuer of two years prior to application and the account of the material litigation the issuer
is involved in; and

(7)

Other materials to be submitted as required by the People’s Bank of China.

Article 6

Where the applying material is not complete or not in accordance with the form prescribed by law, the People’s Bank of China shall,
on spot or within five days, inform once the applicant the whole contents to be supplemented; where the applying material is complete
and in accordance with the prescribed form, or the issuer submit all supplementary applying material as required, the People’s Bank
of China shall accept the application. Where the People’s Bank of China decides to accept, it shall make written decision of approval
or rejection within 20 days from the acceptance date.

Article 7

The People’s Bank of China approves the application for trading and negotiation of bond, which does not indicate that it has made
any judgment on the invest value and risk of the bond in that term; the investor shall be keen on the basic status of the issuer
and the information disclosed, make independent investment judgment and bear the investment risk independently.

Article 8

The issuer shall, within 7 workdays from the receipt of the approval document, submit simultaneously the trading and negotiation proclamation
to the National Inter-bank Borrowing Center (hereinafter referred to as the inter-bank center) and the Central National Debts Registration
and Settlement Limited Company (hereinafter referred to as the central settlement company); the contents of the proclamation shall
include items 3 and 6 of Article 5 of this Rules, the credit rating report for the bond of that term and the account of the arrangement
of the tracing rating thereof, the information of the credit of the guarantor and the guarantee contract (if it is a guaranteed issuance).

Article 9

The central settlement company can, after it receives the approval document, instantly determine the basic elements of trading and
negotiation of the bond and inform the inter-bank center. The inter-bank center and the central settlement company shall, on the
second working day after they receive the trading and negotiation proclamation of the issuer, publicize the following information
to the market participants and handle the trading and negotiation of the bond on the third workday:

(1)

The document of the People’s Bank of China for the approval of the trading and negotiation of the bond;

(2)

The trading and negotiation proclamation of the bond;

(3)

The basic elements of trading and negotiation of the bond; and

(4)

Other information to be publicized as required by the People’s Bank of China.

Article 10

During the period of trading and negotiation of the bond, the issuer shall disclose information continually to the market participants
as provided for by the People’s Bank of China.

Article 11

The issuer, when submitting bond applying documents and disclosing information according to provisions, shall observe the following
basic requirements:

(1)

The applying documents for trading and negotiation of the bond and the documents disclosed to the market participants that are submitted
by the issuer according to provisions shall be real, precise and complete, and shall not include false record, misleading representation
or material omission;

(2)

The information disclosed by the issuer shall include the trading and negotiation proclamation, annual report, interim report and
the outcome of tracing credit rating of the bond;

(3)

The information disclosed by the issuer concerning such issues as financial accounting, law, asset evaluation shall be examined, validated
and given written opinion by such intermediate agencies as certificate public accountants, lawyer’s office and asset evaluation agency
that have relevant business qualification.

Article 12

During the trading and negotiation period of the bond, the issuer and relevant insider shall not disclose the contents before publicizing
the information as required to be disclosed by the issuer.

Article 13

During the trading and negotiation period of the bond, the issuer shall, with 4 months after the completion of every fiscal year (where
there are special circumstances, it can be prolonged after the approval of the People’s Bank of China), disclose the annual report
to the market participants.

Article 14

The issuer shall publicize, without delay, to the market participants and report to the People’s Bank of China the material events
occurred during the trading and negotiation period of the bond.

The material events referred to in this article include but are not limited to the following events:

(1)

The occurrence of heavy debts or breach of contract such as failure to pay due debts;

(2)

The occurrence of big loss or incurrence of big damnification;

(3)

The capital reduction,merger, division, dissolution, trusteeship, suspension of business and application for bankruptcy of the issuer;

(4)

The material litigation involving the issuer; or

(5)

The guarantor changes its legal entity, or great changes take place in the operation, finance of the guarantor (in cases of guaranteed
issuance).

Article 15

The issuer shall agree on the arrangements about the tracing rating with the credit rating agency, and publicize the tracing rating
report of previous year to market participants before July 31 every year during the bond trading negotiation period.

Article 16

The disclosure of the issuer’s information shall be carried out through the website of Chinamoney, Chinabond or the other news media
designated by the People’s Bank of China.

Article 17

The issuer shall publicize relevant matters concerning interests payment or redemption of the bond no later than the third workday
prior to the day of interests payment or expiration of the bond.

Article 18

During the bond trading negotiation period, the issuer shall not conduct bond trading by taking the bond issued by itself as object
asset, except in the redemption in advance by the issuer in accordance with relevant provisions or contracts.

Article 19

The trading and negotiation of the bond approved to trade and negotiate shall be terminated on the third workday prior to the expiration
date.

Article 20

The participating party to the inter-bank bond market that has one of the following circumstances shall be punished by the People’s
Bank of China in accordance with article 46 of the Law of the People’s Republic of China on the People’s Bank of China. In accordance
with the provisions of article 5 and 27 of the Administrative Punishments Law of the People’s Republic of China, the participating
party to the market that actively and in time correct the violation acts may be given a lighter or mitigated punishment, those that
do not result in harm or damage may be exempted from administrative punishment.

(1)

The issuer conducts bond trade by taking the bond issued by itself as the object asset without authorization or in a disguised form;
the issuer does not perform its information disclosure liability as provided for by the People’s Bank of China; or during the period
of trading and negotiation of the bond, the issuer or relevant insiders reveal the information as required to be disclosed; or any
act of the issuer violating other provisions of this Rules;

(2)

The participants to the inter-bank bond market trade without authorization the bond that is publicized legally but not approved to
trade and negotiate; or

(3)

The inter-bank center and central settlement company do not handle trading and negotiation of the bond in accordance with rules or
arrange for trading and negotiation of the bond without authorization; the inter-bank center and central settlement company violate
the rules of information disclosure;

Article 21

The verification on the trading and negotiation of central government bond, central bank bond or development financial bond of government
will not be conducted term by term; the issues of trading and negotiation are handled directly by the inter-bank center and central
settlement company in accordance with the time and procedure provided for by the People’s Bank of China. But the bond mentioned above
shall subject to the requirements of items 1, 2, and 4 of article 4 of the Rules.

The issuer of the development financial bond of government shall report the issuing information to the People’s Bank of China within
5 workdays after the completion of the registration of the claim and debt.

The issuer of central government bond and central bank bond is exempted from the information disclosure and credit rating liability,
and the issuer of the development financial bond of government is exempted from the credit rating liability.

Article 22

The power to interpret the present Rules shall be vested in the People’s Bank of China.

Article 23

The Rules shall enter into force as of December 15, 2004.



 
The People’s Bank of China
2004-12-07

 







CIRCULAR OF SAFE ON PRINTING AND DISTRIBUTING THE OPERATION DIRECTIONS (FOR TRIAL IMPLEMENTATION) OF THE INTERIM MEASURES FOR ADMINISTRATION OF SALES AND PAYMENTS OF EXCHANGE IN TRANSFERRING INDIVIDUAL PROPERTY ABROAD

The State Administration of Foreign Exchange

Circular of SAFE on Printing and Distributing the Operation Directions (for Trial Implementation) of the Interim Measures for Administration
of Sales and Payments of Exchange in Transferring Individual Property Abroad

Hui Fa [2004] No.118

December 9, 2004

The branches and foreign exchange offices of the State Administration of Foreign Exchange of all provinces, autonomous regions, and
municipalities directly under the Central Government, and the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

The Interim Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad (hereinafter
referred to as the Measures) has come into force as of the date of December 1, 2004. With a view to ensuring the implementation of
this policy, specifying relevant operation procedures, and making formalities convenient for applicants, in accordance with the relevant
provisions, the State Administration of Foreign Exchange formulates the Operation Directions (for Trial Implementation) of the Interim
Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad, please implement it
accordingly.

Attachment:The Operation Directions (for Trial Implementation) of the Interim Measures for the Administration of Sales and Payments
of Exchange in Transferring Individual Property Abroad htm/e03848.htmAttachment

￿￿

￿￿

Attachment:

The Operation Directions (for Trial Implementation) of the Interim Measures for the Administration of Sales and Payments of Exchange
in Transferring Individual Property Abroad

￿￿

 ￿￿￿￿1.Operation Procedures

￿￿￿￿(1) Procedures for the application of emigration transfer, inheritance transfer, and for the purchase of exchange and outward remittance
for the first time

￿￿￿￿(i) the applicant files an application

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿n>

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Amount applied beyond the equivalent

￿￿￿￿ (ii) Examination of local forex authorities—————————————————————–￿￿i) examination and approval of SAFE

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿  ￿￿; issuance of approval document to local forex authorities after approval  ￿￿t>

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿  ￿￿——————————————————————————————-￿￿n>

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿—————————————————————￿￿span>

(v) Issuance of the approval document for (the first time) purchase of exchange,remittance outward to the applicant

￿￿

(iv) Issuance of the approval reply letter to the applicant (reply lettermay not be issued in the case of approval to remit outward in one time )

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿n>

￿￿￿￿(vi) The applicant goes through the purchase of exchange and outward remittances formalities at the designated foreign exchange
bank on the basis of the approval document

￿￿￿￿(2) The operation procedures for second and afterwards exchange purchase and outward remittance of emigration transfer

￿￿￿￿(vii)the applicant files application

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿t>

￿￿￿￿(viii)examination and approval of local foreign exchange authorities

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿t>

￿￿￿￿(ix) Issues the exchange purchase, outward remittance approval document to the applicant

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿t>

￿￿￿￿(x)The applicant goes through the purchasing and remittance procedures in the designated foreign exchange bank on the basis of the approval
document of the foreign exchange authorities

￿￿￿￿2. The applicant qualification

￿￿￿￿(1) Definition (Article 2 of the Measures)
￿￿￿￿”Emigration transfer” refers to the activity of a natural person who emigrates abroad and has permanent residence thereof or who goes
to Hong Kong, Macau SAR and has permanent residence thereof or who goes to Taiwan region from the mainland and resides there realizes
the legal property owned by him within the territory before he (she) gets an emigration status and purchases exchange in designated
foreign exchange bank and remits outward the exchange.
￿￿￿￿”Inheritance transfer” refers to the activity of a foreign citizen or a permanent resident of Hong Kong, Macau SAR or Taiwan region
who realizes the property inherited within the territory, purchases exchange in designated foreign exchange bank and remits outward
the exchange.
￿￿￿￿(2) The qualification of the applicant for emigration transfer
￿￿￿￿i. A natural person emigrates from Chinese mainland to a foreign country and has permanent residence in the country of residence or
has the citizenship of the country of residence;
￿￿￿￿ii. A natural person goes to Hong Kong or Macau SAR from the mainland and has the permanent residence of the SAR;
￿￿￿￿iii. A natural person goes to and resides in Taiwan region from Chinese mainland.
￿￿￿￿(3) The qualification of applicant for inheritance transfer
￿￿￿￿i. Foreign citizen;
￿￿￿￿ii. Permanent resident of Hong Kong, Macau SAR;
￿￿￿￿iii. Resident in Taiwan region.
￿￿￿￿3. Identity documents of the applicant
￿￿￿￿(1) The identity documents of the applicant for emigration transfer (paragraph 4 of article 8 of the Measures)
￿￿￿￿
i. the applicant who is a Chinese citizen and has foreign permanent residence shall provide:
￿￿￿￿
(i) Valid passport of the People’s Republic of China or other valid identity certificate such as the Alien Certificate issued by the
country of residence;
￿￿￿￿(ii) The abroad residence certificate of the applicant issued (authenticated) by China’s embassy abroad;
￿￿￿￿(iii) The Chinese resident registration cancellation certificate issued by public security authorities.
￿￿￿￿ii. The applicant who has foreign citizenship shall provide:
￿￿￿￿(i) The ID card of the country of residence of the applicant or other valid identity certificate (for example, passport);
￿￿￿￿(ii) The abroad residence certificate of the applicant authenticated by China’s embassy abroad;
￿￿￿￿(iii) The Chinese resident registration cancellation certificate issued by public security authorities.
￿￿￿￿iii. The applicant who is the resident of Hong Kong, Macau SAR shall provide:
￿￿￿￿(i) (Permanent) resident ID Card of Hong Kong, Macau SAR or other valid identity certificate;
￿￿￿￿(ii) Home-visiting certificate or the passport of SAR;
￿￿￿￿(iii) The inland resident registration cancellation certificate issued by public security authorities.
￿￿￿￿iv. The applicant who is a resident in Taiwan region shall provide:
￿￿￿￿(i) The resident ID Card of Taiwan region or other valid identity certificate for residing in Taiwan;
￿￿￿￿(ii) The laissez-passer of mainland resident commuting from mainland to Taiwan or other entry-exit certificate;
￿￿￿￿(iii) The mainland resident registration cancellation certificate issued by pubic security authorities.
￿￿￿￿(2) The identity documents of the applicant for inheritance transfer (paragraph 3 of article 9 of the Measure)
￿￿￿￿
i. The applicant who is a foreign citizen shall provide:
￿￿￿￿(i) The foreign passport or other certificate document held by the applicant that can testify his nationality;
￿￿￿￿(ii) The resident ID card of the country of residence of the applicant or other valid identity certificate;
￿￿￿￿(iii) The residence certification of the applicant for that country authenticated by China’s embassy abroad;
￿￿￿￿ii. The applicant who is the resident of Hong Kong, Macau SAR shall provide:
￿￿￿￿(i) (Permanent) Residence Card of Hong Kong, Macau SAR or other valid identity certificate;
￿￿￿￿(ii) Home-visiting certificate or the passport of SAR;
￿￿￿￿iii. The applicant who is a resident in Taiwan region shall provide:
￿￿￿￿(i) The resident ID Card of Taiwan region or other valid identity certificate for residing in Taiwan;
￿￿￿￿(ii) The laissez-passer of mainland resident commuting from mainland to Taiwan or other entry-exit certificate;
￿￿￿￿4. Related applying material
￿￿￿￿(1) The applying material for emigration transfer (Article 8 of the Measure, operation procedure 1)
￿￿￿￿The applicant shall submit application material to the foreign exchange authorities subject to following format and contents:
￿￿￿￿i. Written application. Including: Basic information introduction of the applicant, the reason to the application for emigration transfer,
the property or income source and a detailed account of the realization, etc.;
￿￿￿￿ii. The Information Table of the Applicant for Emigration Property Transfer Abroad with the signature of the applicant (see attached
table1);
￿￿￿￿iii. The Application Table for Exchange Business in Transferring Abroad Individual Property with the signature of the applicant or
his agent (see attached table 2)
￿￿￿￿iv. The identity document of the applicant (to provide in accordance with Article 3 of this Directions)
￿￿￿￿v. The certificate of income source and other property rights certificates;
￿￿￿￿The certificate of income source and other property rights certificates referred to in this paragraph include:
￿￿￿￿(i) The income source certificate shall be provided with respect to the individual salary and rewards (including salary and stipend,
income from author’s remuneration, income from remuneration for personal service).
￿￿￿￿(ii) With respect to the business income (including income derived from production and business operation and income from contracted
or leased operation of enterprises and institutions by private owner, individual shareholder of enterprises, individual industrial
and commercial households), the declaration table, equity certificate or contracting, leasing contract or agreement and other material
attesting the income source such as financial statements of enterprises, the distribution decisions of the director board of enterprises
shall be provided.
￿￿￿￿(iii) With respect to capital income and the realization (including income derived from interest, dividend, bonus, property leasing,
property transfer and franchising), the deposit certificate, the record in opening stock or bond account and the transaction thereof,
the contract or agreement to property leasing, transfer, franchising, the property right certificate of house, the real estate sale
& purchase agreement or the dismantle and removal compensation agreement shall be provided.
￿￿￿￿(iv) With respect to contingent income (including legal income from welfare lottery, sport lottery, etc) and other property and income,
the proof of actual transaction record shall be provided.
￿￿￿￿vi. Relevant tax documents or tax payment receipts shall be submitted in accordance with relevant provisions of the State Administration
of Taxation.
￿￿￿￿vii. Agency authorization agreement and the identity documents of the agent shall be provided if the formalities are handled by authorized
agent.
￿￿￿￿The identity document of the agent referred to in this paragraph is the ID card or other valid identity document if the agent is a
resident within the territory; or if the agent is a foreign citizen or a Chinese citizen who resides abroad, the identity document
of the agent authenticated or issued by abroad Chinese embassy is required to be submitted.
￿￿￿￿The property rights document mentioned above such as the property right certificate of house, the real estate sale & purchase
agreement or the dismantle and removal compensation agreement, the contract or agreement to contract, lease property, property transfer
contract or agreement, franchising contract or agreement shall be notarized and the authorization agreement and the identity document
of the agent shall be notarized.
￿￿￿￿(2) The applying material for emigration transfer (Article 9 of the Measure, operation procedure 1)
￿￿￿￿i. Written application. Including: an introduction of the general information of the applicant, the relation between the applicant
and the predecessor, the reason to the application for inheritance transfer, the property source of the predecessor and a detailed
account of the realization, etc.;
￿￿￿￿ii. The Information Table of the Applicant for Emigration Property Transfer Abroad with the signature of the applicant (see attached
table1);
￿￿￿￿iii. The identity certificate of the applicant (to provide in accordance with Article 3 of this Directions);
￿￿￿￿iv. The document proving that the applicant inherits the property;
￿￿￿￿v. The proof document of the right of the inherited property;
￿￿￿￿The property right referred to in this paragraph means the primary status of the property inherited by the applicant; related proof
document of property rights include:
￿￿￿￿(i) With respect to real property (such as house), the post_title deed of house, the sale & purchase agreement for real estate or the
dismantle and removal compensation agreement etc. shall be provided;
￿￿￿￿(ii) With respect to chattel (such as vehicles), the ownership certificate such as vehicle registration shall be provided;
￿￿￿￿(iii) With regard to financial assets (savings, stocks and bonds etc.), savings proof, opening account and trading records of stocks
and bonds, and equity certificate etc. shall be provided;
￿￿￿￿(iv) With regard to other assets, proof of the property ownership by inheritance shall be provided.
￿￿￿￿vi. Relevant tax document or tax payment receipt shall be submitted in accordance with relevant provisions of the State Administration
of Taxation.
￿￿￿￿vii. Agency authorization agreement and the identity document of the agent shall be provided if the formalities are handled by authorized
agent.

MEASURES FOR THE ADMINISTRATION OF LICENSES FOR THE EXPORT OF GOODS






the Ministry of Commerce

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

No.28

The Measures for the Administration of Licenses for the Export of Goods, which were adopted at the 17th executive meeting of the Ministry
of Commerce on December 9th, 2004, are hereby promulgated and shall go into effect as of January 1st, 2005.

Minister Bo Xilai

December 10, 2004

Measures for the Administration of Licenses for the Export of Goods

Chapter I General Provisions

Article 1

With a view to reasonably allocating the resources, regulating the order of export business, constructing a fair and transparent trade
environment, performing international conventions and treaties promised by our country, and maintaining the economic interests of
the state and the national security, the present Measures are formulated according to the Foreign Trade Law of the People’s Republic
of China and the Regulation of the People’s Republic of China on Administration of the Import and Export of Goods.

Article 2

The state shall adopts a uniform system of licenses for the export of goods. The state shall adopts the export license administration
to the export goods under restriction.

Article 3

The Ministry of Commerce shall be the department of centralized administration of export licenses of the whole country, and shall
be responsible for formulating the rules and regulations on the administration of export licenses, supervising and inspecting the
implementation of the measures for the administration of export licenses and punishing the rule-breaking acts.

The Ministry of Commerce shall, together with the General Administration of the Customs, formulate, regulate, and promulgate the annual
Catalogue for Goods Subject to the Administration of Export Licenses. The Ministry of Commerce shall be responsible for formulating,
regulating and promulgating the annual Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses.

The Catalogue for Goods Subject to the Administration of Export Licenses and the Catalogue for Graded License Issuance of Goods Subject
to the Administration of Export Licenses shall be promulgated by the Ministry of Commerce in the form of public notice.

Article 4

The Ministry of Commerce shall authorize the Quota License Affaires Bureau (hereinafter referred to as the License Bureau) to be in
uniform charge and guide the work for the issuance of export licenses by the license-issuing agencies of the whole country. The License
Bureau shall be responsible to the Ministry of Commerce.

Article 5

The License Bureau, the special commissioner’s offices of the Ministry of Commerce in all localities (hereafter referred to as the
local special commissioner’s offices) and the commerce offices or bureaus and the commissions, offices or bureaus of foreign trade
and economic cooperation of all the provinces, autonomous regions, municipalities directly under the Central Government, cities directly
under state planning and other provincial capital cities authorized by the Ministry of Commerce shall be the export license issuing
agencies, and shall, under the uniform administration of the Licenses Bureau, be responsible for the work of issuance of licenses
within their respective authorized purview.

Article 6

The export licenses as referred to in the present Measures shall include export quota licenses and export licenses. For all the goods
subject to the administration of export quota licenses and export licenses, a foreign trade operator (hereinafter referred to as
an operator) shall apply for the export license to the designated license-issuing agency before export in light of provisions. The
customs house shall accept the declaration and release the goods on the basis of the export license.

Article 7

No export license may be sold, transferred, altered, forged or changed.

Chapter II Application Documents To Be Submitted for Export Licenses

Article 8

When applying for an export license, the operator shall carefully fill in one application form (the original) for the export license
according to the facts, and stamp on it with his seal. If the application is filed online, he shall carefully fill in the online
electronic application form according to the facts and send it to the corresponding license-issuing agency.

Article 9

When applying for an export license, the operator shall submit the relevant export quota of goods or other relevant approval documents
to the license-issuing agency.

Article 10

When applying for an export license, the operator shall submit to the license-issuing agency the Form for Archival Filing and Registration
of a Foreign Trade Operator annexed with the special seal for archival filing and registration of the foreign trade operator or the
Qualification Certificate of the Import and Export Enterprises of the People’s Republic of China or the approval certificate for
foreign-funded enterprises (the photocopy).

Chapter III Basis for Issuance of Export Licenses

Article 11

Every license-issuing agency shall issue export licenses pursuant to the following provisions on the basis of the scope in the Catalogue
for Goods Subject to the Administration of Export Licenses and the Catalogue for Graded License Issuance of Goods Subject to the
Administration of Export Licenses as formulated by the Ministry of Commerce:

1.

For the export goods subject to the quota license administration, the export license shall be issued on the strength of the documents
on quotas distributed by the Ministry of Commerce or the commerce offices (or bureaus), commissions (offices or bureaus) of foreign
trade and economic cooperation of all the provinces, autonomous regions, municipalities directly under the Central Government, cities
directly under state planning and other provincial capital cities authorized by the Ministry of Commerce (hereinafter referred to
as the local competent departments of commerce) and the export contract of the operator (a photocopy of the original);

2.

For the export goods applying quota bidding, the export license shall be issued on the strength of the name list of the bid-winning
operators and the quantity of bid-winning promulgated by the Ministry of Commerce, the Certificate for the Application of an Export
License of Goods Applying Quota Bidding or the Certificate for the Transfer and Acceptance of Commodities Applying Quota Bidding,
and the export contracts (a photocopy of the original) of the bid-winning operators.

3.

For the export of chemicals liable to produce drugs, the export license shall be issued on the strength of the Reply of the Ministry
of Commerce on the Export of Chemicals Liable To Produce Drugs and the export contracts (a photocopy of the original) of the export
operators.

4.

For the export of computers, the export license shall be issued on the strength of the Examination Form of Export Computer Technologies
approved by the Ministry of Commerce and the export contracts (a photocopy of the original) of the export operators.

5.

For the export of chemicals under supervision and control, the export license shall be issued on the strength of the approval documents
of the Office of State Leading Group for Performance of the Convention on Prohibition of Chemical Weapons and the export contracts
(a photocopy of the original) of the export operators.

6.

For the export of ozonosphere-consuming materials, the export license shall be issued on the strength of the approval documents distributed
by the Office of Import and Export Administration of Ozonosphere-consuming Materials of the state and the export contracts (a photocopy
of the original) of the operators. And

7.

For other export goods subject to the export license administration, the export license shall be issued on the strength of the approval
documents of the Ministry of Commerce and the export contracts (a photocopy of the original) of the operators.

Article 12

For goods under processing trade that are subject to export license administration, the license-issuing agency shall issue the export
license pursuant to the Catalogue for Goods Subject to the Administration of Export Licenses and the Catalogue for Graded License
Issuance of Goods Subject to the Administration of Export Licenses formulated by the Ministry of Commerce and on the strength of
the Approval Certificate for Processing Trades issued by the department for examination and approval of processing trades authorized
by the Ministry of Commerce and the approval documents for export (Goods subject to the administration of export quotas without using
the quantity of quotas shall be based on the approval documents of the Ministry of Commerce) as prescribed in Article 11 of the
present Measures, the customs declarations of import on processing trades and the export contracts (a photocopy of the original)
of operators.

For the export of chemicals under supervision and control, chemicals liable to produce drugs, ozonosphere-consuming materials and
other goods subject to the administration of international conventions in the form of processing trade, the export license shall
be issued in pursuance of Article 11 of the present Measures.

Article 13

When exporting self-produced goods subject to export license administration (including goods produced with imported materials and
exported again), the foreign-funded enterprise shall be treated according to the following provisions:

1.

For the export by a foreign-funded enterprise that has been approved, the license-issuing agency shall issue the export license on
the strength of the quantity of export quotas for foreign-funded enterprises granted by the Ministry of Commerce. If the goods are
subject to export quota bidding, the relevant approval documents as prescribed in Article 11 shall also be attached.

2.

For a foreign-funded enterprise that has been approved before the adjustment of the Catalogue for Goods Subject to the Administration
of Export Licenses, if its export products become new goods subject to export license administration due to the adjustment, the Ministry
of Commerce may check and ratify the export quotas for the foreign-funded enterprise on the strength of the approved business scope
and export scale of production. And the license-issuing agency shall issue the export license on the strength of the quantity of
export quotas of foreign-funded enterprises distributed by the Ministry of Commerce; and

3.

Where any investment project of a foreign-funded enterprise involves the export of goods subject to export license administration,
the examination and approval may be made according to the procedures for examination and approval only after having been approved
by the Ministry of Commerce in the phase of project initiation. For the projects failed to obtain the aforesaid approval, the Ministry
of Commerce shall not grant export quotas, and the license-issuing agency shall not issue the export license.

Article 14

Where any solely -owned enterprise, joint venture enterprise or contractual joint venture enterprise of China established overseas
or in Hong Kong and Macao needs the supply of domestic goods subject to export license administration, the license-issuing agency
shall issue the export license in pursuance of Article 11 of the present Measures on the strength of the approval documents of the
Ministry of Commerce and the approval certificate for overseas enterprises of the Ministry of Commerce or the approval certificate
for processing and assembling enterprises with overseas materials of the Ministry of Commerce.

Article 15

Where any enterprise, which has the qualification to manage the foreign economic and technological cooperation upon the approval of
the Ministry of Commerce, for the purpose of performing such project contracts as overseas contract engineering, labor service cooperation,
design and consultation, and etc., exports equipments (including a whole set of equipments), materials, construction appliances and
life materials for self-use of its personnel, which are part of the goods subject to the export license administration, the export
license shall be issued in according to Article 11 of the present Measures.

Article 16

For goods subject to export license administration for self-use and needed to be transported out of China in the export of complete
sets of equipments, the export license shall be issued according to Article 11 of the present Measures.

Article 17

For goods subject to export license administration for repayment of foreign loans or trade compensation, the license-issuing agency
shall issue the export license according to the Catalogue for Goods Subject to the Administration of Export Licenses and the Catalogue
for Graded License Issuance of Goods Subject to the Administration of Export Licenses on the strength of the export quotas granted
by the Ministry of Commerce for repayment of foreign loans or that of the trade compensation. Where any juridical person, other organization
or individual, which fails to go through procedures for archival filing and registration, undertakes the business of repayment of
foreign loans or trade compensation, he shall do the export business by entrusting an operator as an agent who shall apply for the
export license.

Article 18

When applying for export licenses, the operator shall declare faithfully in light of the present Measures, and may not falsify, or
cheat to obtain the export license by means of false contract or fake documents.

Chapter IV Issuance of Export Licenses

Article 19

Every license-issuing agency shall issue the export licenses for the relevant export goods strictly according to the requirements
in the annual Catalogue for Goods Subject to the Administration of Export Licenses and the Catalogue for Graded License Issuance
of Goods Subject to the Administration of Export Licenses within 3 workdays as of the date of receiving the application coincident
with the requirements. And no licenses may be issued in violation of the provisions. When exporting goods in the Catalogue for Goods
Subject to the Administration of Export Licenses, the operator shall apply for an export license to the license-issuing agency as
designated by the Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses.

Article 20

The License Bureau, all local special commissioner’s offices and local license-issuing agencies shall issue export licenses strictly
according to the Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses as promulgated by
the Ministry of Commerce. If online application for export licenses is carried out, the certificate issuance shall be made in light
of the relevant procedures and provisions.

1.

The scope of licenses to be issued by the License Bureau:

(1)

according to the Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses as prescribed by
the Ministry of Commerce, the export licenses within the scope of authorization of the Catalogue for Graded License Issuance of Goods
Subject to the Administration of Export Licenses; and

(2)

the export licenses of enterprises under the Central Government in Beijing.

2.

The scope of licenses to be issued by each local special commissioner’s office:

(1)

according to the Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses as prescribed by
the Ministry of Commerce, the export licenses to the operators within the contact area, the enterprises under the Central Government
within the contact area, and the subsidiary companies of the enterprises under the Central Government in Beijing whose quotas are
controlled by the local regions ;

(2)

according to the Catalogue for Graded License Issuance of Goods Subject to the Administration of Export Licenses as prescribed by
the Ministry of Commerce, the export licenses for quota bidding goods of any operator within the contact area; and

(3)

the export licenses for other goods as prescribed by the Ministry of Commerce.

3.

The scope of licenses to be issued by each local license-issuing agency:

(1)

the export licenses to local operators according to the Catalogue for Graded License Issuance of Goods Subject to the Administration
of Export Licenses as prescribed by the Ministry of Commerce; and

(2)

the export licenses for other goods as prescribed by the Ministry of Commerce.

4.

Goods whose licenses are issued by the designated license-issuing agencies:

For all the goods whose licenses are issued by the license-issuing agencies as designated by the Catalogue for Graded License Issuance
of Goods Subject to the Administration of Export Licenses, all operators shall apply export licenses to the designated license-issuing
agency without exceptions.

Article 21

No license-issuing agency may issue any export license without quota, or exceeding quota, or exceeding the authority or the scope
of license issuance. No staff member of any license-issuing agency may neglect his duty, seek private gains or misuse his authority
during the performance of his duty, and may not seek for the property of other people by taking advantage of the convenience of his
post or take the property of other people illegally for seeking interests for others.

Article 22

The administration of export licenses shall adopt the system of “one license for one customs house”, “one batch, one license” and
“non-one batch, one license”. The “one license for one customs house” shall mean that one export license may only be declared at
one customs house; and the “one batch, one license” shall mean that one export license may be used for customs declaration for once
within the period of validity.

Under the following circumstances, the system of “non-one batch, one license” shall be implemented, and the “non-one batch, one license”
shall be indicated in the remark column when issuing the export license:

1.

goods under export license administration of foreign-funded enterprises;

2.

goods under export license administration in compensation trade; and

3.

other goods under export license administration that adopts the system of “non-one batch, one license” as prescribed by the Catalogue
for Goods Subject to the Administration of Export Licenses.

The “non-one batch, one license” shall mean that one export license may be used for customs declaration for many times within the
period of validity but for twelve times at most. And the customs shall indicate in the column of “endorsement of customs examination
and release” the times for export of the goods batch by batch.

Chapter V Handling of Exceptions

Article 23

The overloaded goods shall be large goods in bulk. The amount of overload shall be handled according to the international trade convention,
that is, the amount of overload of large goods in bulk exported after customs declaration shall not exceed 5% of the amount of export
as listed in the export license. In the case of large goods in bulk which do not adopt the system of “one batch, one license”, the
amount shall be deducted after checking according to the actual export amount when each batch of the goods is exported, and the amount
of overload shall be calculated on the basis of the actual surplus export amount of the license and within 5% of the prescribed upper
limit of the overload when the final batch of goods is exported.

The license-issuing agency shall issue the license for export of goods of this kind strictly according to the amount of export quota
and the amount checked by the approval documents, verify and deduct the amount of quota according to the actual amount of the licenses
issued, and shall not issue licenses on the basis of the amount of export quota or the amount checked by the approval documents plus
the amount of overload allowed by international trade convention.

Article 24

Export licenses shall be exempted for goods subject to export license administration for projects of foreign economic aid. The relevant
provisions on the certificate for examination and release shall be formulated and promulgated by the Ministry of Commerce, the General
Administration of Customs and the State General Administration for Quality Inspection, Supervision and Quarantine.

Article 25

Provisions on exhibition articles, exhibition articles for sale and small articles for sale that are taken abroad (or out of the territory)
to take part in or for holding exhibitions are as follows:

1.

The export licenses shall be exempted for not-for-sale exhibition articles under export license administration, which are taken abroad
(or out of the territory) to take part in or for holding exhibitions. And the customs shall supervise, examine and release these
articles after examination on the basis of the approval documents for the exhibitions by the department of examination and approval
and the customs declaration on export goods. The entities participating in the exhibition shall, within 6 months after the end of
the exhibition, carry back exactly the amount of the not-for-sale exhibition articles for cancellation by the customs after verification.
Under special circumstances, the period may be postponed upon the approval of the customs.

2.

Where the exhibition articles for sale and the small articles for sale that are taken abroad (or out of the territory) for taking
part in or holding exhibitions are subject to the export license administration, the entities taking part in the exhibitions shall
apply to the license-issuing agencies as prescribed in the Graded License Issuance Catalogue for the export licenses without taking
the export quotas on the strength of the approval documents by the department for examination and approval of foreign economic and
trade exhibitions and the exhibition participation certificates by exhibition-holding institutions of foreign economic and trade
exhibitions. And

3.

For the chemicals under supervision and control, chemicals liable to produce drugs, ozonosphere-consuming materials and other goods
governed by international conventions, the export licenses shall be handled as normal export, and the provisions of items (1) and
(2) of this Article shall not be applied.

Article 26

Provisions on the samples of export goods and on samples of goods under export license administration that need to be provided for
cultural exchange and technology exchange are as follows:

1.

For the samples of goods or samples for experiment use, which are subject to the export license administration and shipped abroad
(out of the territory) by an operator, if the value of each batch of goods are RMB 30,000 Yuan or less, the export license shall
be exempted, and the customs shall check and release the goods on the strength of the customs declaration of the export samples filled
in by the operator; if the value exceeds RMB 30,000 Yuan, the goods shall be regarded as being exported normally, and the operator
may apply for an export license as required. The words “samples of goods” shall be indicated in the remark column of the export license.
And

2.

For the chemicals under supervision and control, chemicals liable to produce drugs, ozonosphere-consuming materials and other goods
governed by international conventions, the export licenses shall be transacted as normal export, and the provisions of item (1) of
this Article shall not be applied.

Article 27

If the donations provided by the Chinese government to foreign countries in light of the agreement or temporary decision between the
two governments, or the materials presented by the Chinese government or organization to the government or organization of the other
country based on the friendship, are subject to the export license administration, the export license shall be issued on the strength
of the relevant agreements or decisions without taking export quotas.

For other donations subject to export license administration, the export license shall be issued according to Article 11 of the present
Measures.

Chapter VI The Periods of Validity of Export Licenses

Article 28

The period of validity of export quota shall be before December 31 of the current year (including December 31), unless it is otherwise
specified. The operator shall apply for an export license to the license-issuing agency within the period of validity of the quota.

Article 29

Every license-issuing agency may issue export licenses of the next year in light of the export quotas granted by the Ministry of Commerce
or every local competent department of commerce from December 16 of the current year.

Article 30

The period of validity of an export license shall not exceed 6 months. If it is necessary to use an export license crossing years,
the deadline for the period of validity of the export license shall not exceed the end of February of the next year.

Where any goods under quota license administration is exported in the form of processing trade, the period of validity of the export
license shall be determined pursuant to the time limit for the export as checked and ratified by the Approval Certificate for the
Business of Processing Trade, but shall not exceed the end of February of the next year. If the time limit for export checked and
ratified pursuant to the Approval Certificate for the Business of Processing Trade exceeds the end of February of the next year,
the operator shall apply for extension to the original license-issuing agency before the end of February. The license-issuing agency
shall take back the original certificate and write off it in the license-issuing system, reissue the export license within the time
limit for export as determined pursuant to the Approval Certificate for the Business of Processing Trade after deducting the amount
that has been used, and indicate in the remark column the extension for use and the number of the original certificate.

The Ministry of Commerce may adjust the period of validity and the application time of export licenses of certain goods according
to the specific circumstances.

The export license shall be used within the period of validity; and if it exceeds the time limit, it shall be invalidated automatically,
and the customs shall not release the goods.

Article 31

In case an export license fails to be used within the period of validity due to some reasons, the operator shall apply for extension
to the original license-issuing agency within the period of validity of the export license. The license-issuing agency shall take
back the original license, write it off in the license-issuing computer management system, reissue an export license and indicate
in the remark column the extension for use and the number of the original license.

In case an export license is not fully used within the period of validity due to some reasons, the operator shall apply for extension
for the unused part to the original license-issuing agency within the period of validity of the export license. The license-issuing
agency shall take back the original license and cancel it after verification in the license-issuing system, then reissue an export
license after deducting the amount that has been used, and indicate in the remark column the extension for use and the number of
the original license.

Where an extension for any export license is handled by using the export quota of the current year, the extension period shall not
exceed the end of February of the next year of the period of validity of the export quota of the current year. If the period of validity
has been the end of February of the next year of the period of validity of the export quotas of the current year, the extension shall
not be permitted.

In case an application for extension fails to be filed within the period of validity of an export license, the export license shall
be invalidated automatically after expiration of the time limit. The license-issuing agency shall not go through the formalities
for extension of the license any longer. And the amount of goods under the export license shall be regarded as being automatically
given up by the quota holder.

Article 32

After an export license is issued, no entity or individual may alter the contents on the face of the license without approval. Where
it is necessity to alter the contents on the face of the license, the operator shall return the export license to the original license-issuing
agency within the period of validity of the export license, and reapply for an export license.

Article 33

In case an export license that has been received is lost, the operator shall report it in written form to the customs house at the
export port as indicated on the face of the license and the relevant license-issuing agencies at once, and publish an “Announcement
of Loss ” in national economic newspapers and periodicals. The license-issuing agency may, after verifying that the license really
has not passed through the customs, write off the license on the strength of the Announcement of Loss and issue a new license.

Article 34

If such entities as the customs, industry and commerce, public security, disciplinary inspection or the court need to make inquiry
about or investigation into any export license to any license-issuing agency, it shall show the relevant certificate according to
law, and then may the license-issuing agency accept the inquiry or investigation.

Article 35

Where the license-issuing agency is adjusted for any goods subject to the administration of export license administration, the original
license-issuing agency shall not reissue the export license for the goods as of the date of adjustment, and shall report the application
conditions of the operator before the adjustment to the license-issuing agency. The license applied for and received by the operator
before the adjustment shall be effective continuously within the period of validity. If the license is not used or not fully used
within the period of validity, the operator shall go through the formalities for extension to the adjusted license-issuing agency
as required.

Chapter VII Inspection and Punishment

Article 36

The Ministry of Commerce shall authorize the License Bureau to make regular inspections on each license-issuing agency. The inspection
shall involve the implementation of the present Measures by the license-issuing agency, and shall focus on whether there are issues
on issuing license by exceeding quotas, without quotas or exceeding the authority or grades in violation of regulations and other
issues in violation of the present Measures. The method of combining regular or irregular self-inspection of each license-issuing
agency with the spot check of the License Bureau shall be applied as the ways of inspection.

The License Bureau shall report the inspection conditions to the Ministry of Commerce.

Article 37

Every license-issuing agency shall transmit in time the data on license issuing pursuant to the provisions of the Ministry of Commerce
on online checking of licenses to ensure that the operators may successfully declare and ensure the checking of the customs. It shall
carefully check up the checked data fed back by the customs, and inspect in time the conditions for use of the licenses and find
out the current problems. The License Bureau shall report th

MEASURES FOR THE ADMINISTRATION OF LICENSES FOR THE IMPORT OF GOODS

e03408,e00924,e03780e012872004121020050101the Ministry of CommerceOrder of the Ministry of Commerce of the People’s Republic of ChinaNo.27The Measures for the Administration of Licenses for the Import of Goods, which were adopted at the 17th executive meeting of the Ministry
of Commerce on December 9th, 2004, are hereby promulgated and shall go into effect as of January 1st, 2005.
Minister of the Ministry of Commerce Bo XilaiDecember 10, 2004epdf/e03862.pdfA5,P2goods, licenses for the import, catalogue for goods, catalogue for graded license issuance, quota license, application documents,
basis for issuance of license, sign and issue, period of validity
e03862Measures for the Administration of Licenses for the Import of GoodsChapter I General ProvisionsArticle 1 With a view to regulating the administration on the import licenses, maintaining the order of import of goods and promoting the healthy
development of foreign trade, the present Measures are formulated in accordance with the provisions of the Foreign Trade Law of the
People’s Republic of China and the Ordinance of the People’s Republic of China on the Administration of Import and Export of Goods.
Article 2 The State shall implement the uniform system of licenses for the import of goods. And for goods under import restriction, the State
shall apply the import license administration
Article 3 The Ministry of Commerce shall be the department of centralized administration of import licenses of the whole country, and shall
be responsible for formulating the rules and regulations on the administration of import licenses, supervising and inspecting the
enforcement of the measures for the administration of import licenses and punishing the rule-breaking acts.The Ministry of Commerce shall, together with the General Administration of the Customs, formulate, regulate and promulgate the annual
Catalogue for Goods Subject to the Administration of Import Licenses. The Ministry of Commerce shall be responsible for formulating,
regulating and promulgating the annual Catalogue for Graded License Issuance of Goods Subject to the Administration of Import Licenses.The Catalogue for Goods Subject to the Administration of Import Licenses and the Catalogue for Graded License Issuance of Goods Subject
to the Administration of Import Licenses shall be promulgated by the Ministry of Commerce in the form of public notice.
Article 4 The Ministry of Commerce shall authorize the Quota License Affaires Bureau (hereinafter referred to as the License Bureau) to be in
uniform charge and guide the work for the issuance of import licenses by the license-issuing agencies of the whole country. The License
Bureau shall be responsible to the Ministry of Commerce.
Article 5 The License Bureau, the special commissioner’s offices of the Ministry of Commerce in all localities (hereafter referred to as the
local special commissioner’s offices) and the commerce offices or bureaus and the commissions, offices or bureaus of foreign trade
and economic cooperation of all the provinces, autonomous regions, municipalities directly under the Central Government, cities directly
under state planning and other provincial capital cities authorized by the Ministry of Commerce (hereafter referred to as the local
license issuing agencies) shall be the import license issuing agencies, which shall, under the uniform administration of the License
Bureau, be responsible for the work of issuance of licenses within their respective authorized purview.
Article 6 The import license shall be a legal warrant on basis of which the state administers the import of goods. A foreign trade operator
(hereinafter referred to as the operator) shall apply for the import license as required to the designated license-issuing agency
for those goods subject to the administration of import license before the import, unless it is otherwise specified by the State.
And the customs shall accept the application and release the goods on the basis of the import license.
Article 7 The import license shall apply to the import of goods within the Catalogue for Goods Subject to the Administration of Import Licenses.Article 8 No import licenses may be sold, transferred, altered, forged or changed.Chapter II Application Documents To Be Submitted for Import LicensesArticle 9 The operator shall carefully fill in the application form for import license according to the facts when applying for an import license,
and stamp on it with his seal.
Article 10 The operator shall submit the documents of approval for import and the relevant documents as prescribed in the “Basis for Issuance
of Import Licenses” of Chapter III of the present Measures to the license issuing agency in the light of the conditions of import
of goods.
Article 11 The operator shall submit the qualified Enterprise Juridical Person Registration Business License after annual examination, and the
Form for Archival Filing and Registration of Foreign Trade Operators with the special seal for archival filing and registration of
the foreign trade operator, or the qualification certificate of import and export enterprises. If the operator is a foreign-funded
enterprise, it shall also submit the certificate of approval for a foreign-funded enterprise. If the goods to be imported fall within
the scope of state-owned trade or there are other requirements of qualification administration on them by the State, the relevant
documents of the Ministry of Commerce or of the relevant departments shall also be offered.
Chapter III Basis for Issuance of Import LicensesArticle 12 Every license-issuing agency shall issue import licenses in accordance with the following provisions and on the basis of the scope
as prescribed in the Catalogue for Goods Subject to the Administration of Import Licenses and the Catalogue for Graded License Issuance
of Goods Subject to the Administration of Import Licenses as formulated by the Ministry of Commerce:
1.For the chemical products under supervision and control, the license-issuing agency shall issue the import license on the strength
of the Ratification Form for the Import of Chemicals under Supervision and Control as approved by the Office of the State Leading
Group for Performance of the Convention on Chemical Weapons and the import contract (a photocopy of the original).
2.For the chemicals liable to producing narcotic drugs, the license-issuing agency shall issue the import license on the strength of
the Reply on Import of Chemicals Liable to Producing Narcotic Drugs of the Ministry of Commerce;
3.For the ozonosphere-consuming materials, the license-issuing agency shall issue the import license on the strength of the Form for
Examination and Approval of the Import of Ozonosphere-Consuming Materials under Control as approved by the State Office of the Administration
of Import and Export of Ozonosphere-Consuming Materials. And
4.For other commodities whose import is restricted according to the provisions of any law or any administrative regulation, the license-issuing
agency shall issue the import license in light of the licensing documents issued by the competent department of commerce of the State
Council or by the competent department of commerce of the State Council together with other relevant departments.
Article 13 For the import of chemicals under supervision and control, chemicals liable to producing narcotic drugs and ozonosphere-consuming
materialsin processing trade, which are subject to the administration of import licenses, the license-issuing agency shall cope with
it respectively according to the provisions of paragraph 1, paragraph 2, and paragraph 3 of Article 12 .
Article 14 If a foreign-funded enterprise imports chemicals under supervision and control, chemicals liable to producing narcotic drugs and ozonosphere-consuming
materials subject to the administration of import licenses, the license-issuing agency shall cope with it respectively according
to the provisions of paragraph 1, paragraph 2, and paragraph 3 of Article 12 .
Article 15 When applying for an import license, the operator shall make application according to the facts pursuant to the present Measures,
and may not make falsification or cheat to receive the import license by means of fake documents or fake contract.
Chapter IV Issuance of Import LicensesArticle 16 The license-issuing agency shall issue the import licenses for the relevant commodities strictly in accordance with the annual Catalogue
for Goods Subject to the Administration of Import Licenses and the Catalogue for Graded License Issuance of Goods Subject to the
Administration of Import Licenses as promulgated by the Ministry of Commerce. When importing commodities in the Catalogue for Goods
Subject to the Administration of Import Licenses, the operator shall apply for an import license to the license-issuing agency as
designated in the Catalogue for Graded License Issuance of Goods Subject to the Administration of Import Licenses.
Article 17 Every license-issuing agency shall issue import licenses in light of the basis for license issuance of Chapter III of the present
Measures, and may not issue any import license by exceeding his authority or exceeding the scope of license issuance.
Article 18 The administration on import license shall apply the administration of “one license for one customs house”. Generally, an import license
shall apply “one batch, one license”. Where “non-one batch, one license” is to be applied, the words “non-one batch, one license”
shall be printed in the remark column of the import license.The “one license for one customs house” shall mean that one import license may only be declared at one customs house; the “one batch,
one license” shall mean that one import license may be used in customs declaration only once within the period of validity; the “non-one
batch, one license” shall mean that one import license may be used for many times in customs declaration within the period of validity
but not more than 12 times at most, and the customs shall endorse in the “endorsement column of customs examination and release”
on the back of the license to verify and reduce the import quantities batch by batch.For the import of large amount of goods in bulk subject to license administration, the amount of overload shall be dealt with in pursuance
of the international trade convention, that is, the amount of overloaded large amount of goods in bulk declared to the customs for
import shall not exceed 5% of the amount of import as listed in the import license. Those large amount of goods in bulk not subject
to the system of “one batch, one license” shall be verified and deducted in light of the actual import amount after verifying while
importing every batch of the goods. When the last batch of goods are imported, their overloaded amount shall be calculated based
on the actual remaining amount of the license and within 5% above the upper limit of the overload.When issuing the licenses for the import of goods of this kind, the license-issuing agency shall issue the license strictly according
to the amount of import quota and the amount as checked by the approval documents, verify and deduct the amount of quota in pursuance
of the actual issuance amount in the license, and shall not issue the license pursuant to the amount of import quota or the amount
checked by the approval documents plus the overloaded amount as permitted by the international trade convention.
Article 19 If an application meets the requirements, the license-issuing agency shall issue the import license within 3 workdays as of the date
of receiving the application. Under special circumstances, it shall not exceed ten workdays at most.
Chapter V The Periods of Validity of Import LicensesArticle 20 The period of validity of an import license shall be one year.1.The import license shall be issued within the period of validity as prescribed by the approval documents of the administrative department
of import.
2.The import license shall be effective at the current year. Where it is necessary to be used in the crossing years, the period of validity
shall not at most exceed March 31st of the next year; and
3.The import license shall be used within the period of validity. Where the time limit of validity expires, it will be invalid automatically,
and the customs shall not release the goods.
Article 21 Where an import license fails to be used within the period of validity due to some reasons, the operator shall apply for extension
to the original license-issuing agency within the period of validity. The license-issuing agency shall take back the original license,
and reissue an import license after writing off the original license in the computer management system of the import and export licenses,
and indicate in the remark column the extended use and the number of the original license.Where an import license fails to be fully used within the period of validity due to some reasons, the operator shall apply for extension
of the part unused to the original license-issuing agency within the period of validity. The license-issuing agency shall take back
the original license, cancel the quantity that has been used after verification of the original license in the license issuance system,
and then reissue an import license and indicate in the remark column the extended use and the number of the original license.An import license may only be extended for once, and the period of extension shall not exceed three months at most.Where an application for extension fails to be filed within the period of validity of an import license, the import license shall
be invalidated automatically, and the license-issuing agency shall not accept the application for extension of the license. The import
license shall be regarded as being given up automatically by the holder.
Article 22 Once an import license is issued, no one may alter its contents in the surface of the license without permission. Where it is necessary
to alter it, the operator shall file an application for alteration within the period of validity of the license, and return the license
to the original license-issuing agency that shall then change and reissue the license.If the alteration of a license involves the operator, tax number, amount, sum of money, price, original place for production, import
usage, sources of foreign exchange, ways of trade, declaration port of the import commodity and etc., and the original approval organ
has corresponding restrictions, the operator shall provide the approval documents for alteration by the original approval organ.
Article 23 In case an import license received is lost, the operator shall report the loss in written form to the customs house at the place of
the import port as indicated in the surface of the license and the relevant license-issuing agency, announce cancellation of the
license, and shall report the case to the public security organ in time. The license-issuing agency may revoke the original import
license and issue a new license after receiving the report of such loss from the operator and verifying that the license has really
been not used for passing through the customs.
Article 24 Where such entities as the customs, industry and commerce, public security, disciplinary inspection and the court need to inquire
or investigate about any import license to any license-issuing agency, it shall show the relevant certificates according to law,
and the license-issuing agency shall accept the inquiry.
Article 25 Where the license-issuing agency is adjusted for any commodity subject to the administration of import licenses, the former license-issuing
agency shall not reissue the import license for this commodity as of the date of such adjustment, and shall report the conditions
of application of the operator before adjustment to the license-issuing agency. The license applied for and received by the operator
before the adjustment shall be effective continuously within the period of validity. If the import license is not used or not fully
used within the period of validity, the operator shall go through formalities for extension at the license-issuing agency after adjustment.
Chapter VI Inspection and PunishmentArticle 26 The Ministry of Commerce shall authorize the License Bureau to make regular inspections on every license-issuing agency. The inspection
shall include the conditions of the implementation of the present Measures by the license-issuing agency, and shall focus on whether
there are such acts in violation of regulations as issuing license by exceeding his authority or grades or without approval documents
for certificate issuance. The method combining regular or irregular self-inspection of each license-issuing agency with the spot
check of the License Bureau shall be applied as the ways of inspection. The License Bureau shall report the inspection conditions
to the Ministry of Commerce.
Article 27 Every license-issuing agency shall transmit the data on license issuance in time pursuant to the provisions of the Ministry of Commerce
on online checking of licenses, so as to ensure that the operator may apply to the customs successfully and ensure the checking of
the customs. It shall carefully check up the checked data fed back by the customs, and inspect the conditions for the use of the
license and find out the current problems. The License Bureau shall report regularly the checked data checked and fed back by the
customs to the Ministry of Commerce.
Article 28 The import license, which is issued by exceeding the authority or grades or without effective approval documents, shall be invalid.
If any license-issuing agency violates the provisions, the Ministry of Commerce shall give it warnings, suspend or cancel its authority
to issue licenses in light of the circumstances.
Article 29 Where anyone has received an import license by fraud or other improper means in violation of the present Measures, the import license
shall be taken over according to law. And the Ministry of Commerce shall not accept the application of the violator for import licenses
within three years, or prohibit the violator from undertaking the relevant business activities of import of goods within the period
of one to three years.
Article 30 Where anyone forges, alters or purchases any import license, he shall be subject to criminal liabilities in accordance with the provisions
of the Criminal Law on the crime of illegal management or the crime of forging, altering or purchasing the documents, certificates
and seals of the state organ. If the circumstance is not serious enough to be subject to criminal punishment, a punishment shall
be given according to the relevant provisions of the Customs Law. And the Ministry of Commerce may prohibit the violator from undertaking
the relevant business activities of import of goods within the time limit of one to three years.
Article 31 The Ministry of Commerce shall take over or revoke the import licenses involved in Articles 28, 29 and 30 once it confirms the fact
after investigation. For issues concerning the aforesaid licenses, which are discovered by the customs during the process of actual
supervision or case handling, the license-issuing agency shall give clear reply and positive cooperation.
Article 32 Where any staff member of a license-issuing agency has any act in violation of regulations, which does not constitute a crime, he
shall be transferred from his post and be subject to administrative punishment respectively according to the circumstances. If a
crime is constituted, he shall be transferred to the department of justice and subject to criminal liabilities.
Chapter VII Supplementary ProvisionsArticle 33 Where there are otherwise provisions in laws and administrative regulations on the administration of import goods in bonded warehouses,
bonded zones and export processing zones, those provisions shall prevail.
Article 34 The power to interpret the present Measures shall remain with the Ministry of Commerce.Article 35 The present Measures shall go into effect as of January 1st, 2005. The Measures for the Administration of Licenses for the Import
of Goods (Order No.22 [2001] of the Ministry of Foreign Trade and Economic Cooperation) as printed and distributed by the former
Ministry of Foreign Trade and Economic Cooperation shall be abolished simultaneously.

 
the Ministry of Commerce
2004-12-10

 




THE CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON INCREASING THE EXPORT TAX REFUND RATE OF A PART OF INFORMATION TECHNOLOGY (IT) PRODUCTS






The Ministry of Finance, the State Administration of Taxation

The Circular of the Ministry of Finance and the State Administration of Taxation on Increasing the Export Tax Refund Rate of a Part
of Information Technology (IT) Products

Cai Shui [2004] No. 200

December 10, 2004

Departments (Bureaus) of Finance, National Tax Bureaus of all provinces, autonomous regions, and municipalities directly under the
Central Government, and cities directly under state planning, and Offices of Financial Supervision Commissioners of the Ministry
of Finance in all provinces, autonomous regions, and municipalities directly under the Central Government, and cities directly under
state planning, and the Bureau of Finance of the Xinjiang Production and Construction Corp:

The export tax refund rates of a part of information technology (IT) products shall be increased to 17% after the approval of the
State Council. Now the relevant issues hereby are notified as follows:

1.

The IT products whose export tax refund rate increased from the current 13% to 17% include integrated circuits, separate parts (components),
mobile communication base stations, Ethernet switches, routers, handset (vehicular) radio telephones, other automatic micro digital
data processors, system-form microcomputers, LCD monitors, CRT displays, hard disk drivers, automatic digital data processors without
names listed, other storage parts, numerical control lathes (see the attachment for specific products ).

2.

This Circular shall be enforced as of the date of November 1, 2004. (the specific implementation time shall be subject to the export
date noted by the Customs in the “Declaration Form for Export Goods(export tax refund list)”.

It is thereby notified.

htm/e04100.htmAttachment

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Attachment:

The Catalogue of the Increased Export Tax Refund Rates of a Part of IT Products

￿￿

Name of Commodities

HS

Export Tax Refund Rate

Integrated circuits

85421000￿￿85422111￿￿85422119￿￿85422121￿￿85422129￿￿85422191￿￿85422199￿￿85422900￿￿85426000￿￿85427010￿￿85427090￿￿85429000

17%

Separate parts (components)

85411000￿￿85412100￿￿85412900￿￿85413000￿￿85414000￿￿85415000￿￿85416000￿￿85419000

Mobile commutation equipments and terminators

85252092[mobile communication base stations]

85175032[Ethernet switches]

84718020[routers]

85252022[handset (vehicular) radio telephones]

Computers and external equipments

84714140[other automatic micro digital data processors]

84714940[system-form microcomputers]

84716011[LCD monitors]

84716012[CRT displays]

84717010[hard disk drivers]

84714190[automatic digital data processors without names listed]

84717090[other storage parts]

Numerical control lathes

84612010￿￿84612020￿￿84613000￿￿84614010￿￿84614090￿￿84615000￿￿84619011￿￿84619019￿￿84619090




MINISTRY OF COMMERCE ANNOUNCEMENT

Ministry of Commerce

Ministry of Commerce Announcement

No. 93 [2004]

In accordance with the Qualifications of Tungsten, Stibium and Silver State Trading Export Enterprises as well as Qualifications of
Supplying Enterprises of Tungsten and Stibium Export (Ministry of Commerce Announcement No. 80), Lists of Tungsten, Stibium and Silver
State Trading Export Enterprises and Lists of Supplying Enterprises of Tungsten and Stibium Export in 2005 are now announced.

Ministry of Commerce

Dec 15, 2004 Appendix:

1.

List of Tungsten State Trading Export Enterprises in 2005(omitted)

2.

List of Stibium State Trading Export Enterprises in 2005(omitted)

3.

List of Silver State Trading Export Enterprises in 2005(omitted)

4.

List of Supplying Enterprises of Tungsten Export in 2005(omitted)

5.

List of Supplying Enterprises of Stibium Export in 2005(omitted)

 
Ministry of Commerce
2004-12-15

 




THE ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE OFFICIAL START OF THE CARGO MANIFEST FOR ENTRY-EXIT BY LAND OF INLAND CUSTOMS AND HONG KONG CUSTOMS

The General Administration of Customs

The Announcement of the General Administration of Customs on the Official Start of the Cargo Manifest for Entry-exit by Land of Inland
Customs and Hong Kong Customs

[2004] No. 42

December 15, 2004

In accordance with the No. 23 Announcement 2004 of the General Administration of Customs, the Cargo Manifest for Entry-exit by Land
of Inland Customs and Hong Kong Customs has been tried out uniformly in inland and Hong Kong SAR since January 1, 2004. The tryout
of the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs has a positive impact on improving the economic
development of the two sides, facilitating the economic and trade communication between them and enhancing the legal enforcement
assistant between the customs of both sides, from which an excellent result has been achieved. After one year’s tryout and transition,
the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs is now been amended and perfected based on the
advice solicited from the transportation industry and on-spot customs; related issues are hereby proclaimed as follows:

1.

As of January 1, 2005, the declaration of the land cargo vehicles between the two sides starts to use the amended Cargo Manifest
for Entry-exit by Land of Inland Customs and Hong Kong Customs. (See attachment 1)

2.

As of January 1, 2005, the declaration of empty land cargo vehicles between the two sides starts to use the Cargo Manifest for Entry-exit
by Land of Inland Customs and Hong Kong Customs special for empty vehicles and in one pattern, two sheets. (See attachment 2)

3.

In starting to use the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs, the declaration information
such as the number of Vehicle License Plates, chassis, container of the transportation vehicle may be obtained; the tractor, trailer
and container are exempted from bound transportation.

4.

In considering that some transportation enterprises still remain some pieces of Cargo Manifest for Entry-exit by Land of Inland Customs
and Hong Kong Customs of trial version in 2004, it is decided that the use of the Cargo Manifest for Entry-exit by Land of Inland
Customs and Hong Kong Customs of trial version in 2004 extends to March 31, 2005 in order to avoid economic loss of these enterprises;
at the expiration of this time, the use thereof is prohibited.

5.

As of January 1, 2005, for the cargo vehicles commuting between inland and Hong Kong (including empty vehicles), the declaration
using the Cargo Manifest for Entry of the Customs of PRC and the Cargo Manifest for Exit of the Customs of PRC for declaration shall
be stopped.

Attachment:

1.

Sample of the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs

2.

Sample of the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs special for empty vehicles (omitted)

3.

The standard and instruction in filling the Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs

htm/e03802.htmAttachment 1

￿￿

￿￿

Attachment 1:

 Cargo Manifest for Entry-exit by Land of Inland Customs and Hong Kong Customs

￿￿

Inland Cargo manifest No.:￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿

5 0 0 0 1 5 8 3 2 0 0 3 6  

Hong Kong Cargo Manifest No.:                                      

￿￿￿￿Vehicle License Plate No.: (Inland Vehicle License Plate No.:                                 
Hong Kong Vehicle License Plate No.:                                 
)

￿￿￿_￿Entry/exit* date:                                 
Cargo Loading Place:                                 
Cargo unload place:                                 
This copy manifest has                                   
pages

Item

Name & specification  of cargo

Mark & No.

Package & quantity

Weight/net weight*(kilogram)

Price(currency)

Name & Address of exporter or freight forwarder (Seal)

Name & Address of consignee

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total quan

PREVENTION AND TREATMENT OF INFECTIOUS DISEASES LAW

Law of the People’s Republic of China on Prevention and Treatment of Infectious Diseases










Law of the People’s Republic of China on Prevention and Treatment of
Infectious Diseases

INTERIM MEASURES FOR THE CONTROL OF PRODUCT OIL MARKET

the Ministry of Commerce

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

No. 23

Adopted at the 14th Executive Meeting of the Ministry of Commerce on November 15, 2004, the Interim Measures for the Control of Processed
Oil Market are hereby promulgated and shall go into effect as of January 1, 2005.

Minister of Commerce Bo Xilai

December 2, 2004

Interim Measures for the Control of Product Oil Market

Chapter I General Provisions

Article 1

With a view to strengthening the supervision and control of the processed oil market, standardizing the processed oil business activities
and maintaining the order of the processed oil market, these Measures are formulated in accordance with the Decision of the State
Council on Applying Administrative Licensing to Matters that Need to Remain Subject to Administrative Examination and Approval (No.
412 of the State Council) and other relevant laws and regulations.

Article 2

The enterprises engaging in the wholesale, storage and retail of processed oil within the territory of the People’s Republic of China
must observe these Measures and other relevant laws and regulations.

Article 3

The Ministry of Commerce shall be in charge of the supervision and control of the processed oil market throughout the country pursuant
to law.

The competent administrative departments of commerce of the governments of all provinces, autonomous regions and municipalities directly
under the Central Government and all cities under separate State planning (hereinafter referred to as the competent administrative
department of commerce of the people’s government at the provincial level) shall be in charge of formulating the development planning
for filling stations and storage sector, and of organizing and coordinating the supervision and administration of processed oil business
activities in their respective administrative regions.

Article 4

Product oil as mentioned in the present Measures means gasoline, kerosene and diesel oil.

Chapter II Applications for Processed Oil Business Licenses and Acceptance of Applications

Article 5

An enterprise that wishes to engage in the wholesale of processed oil shall submit an application to the competent administrative
department of commerce of the people’s government at the provincial level at the enterprise’s locality. The latter shall, after making
examination, submit the application documents and its preliminary comments thereon to the Ministry of Commerce. The Ministry of Commerce
shall make a decision about whether or not to grant a business license for the wholesale of product.

Article 6

An enterprise that wishes to engage in the storage or retail of processed oil shall submit an application to the competent administrative
department of commerce of the people’s government at the city (city divided into districts, the same below) level at the enterprise’s
locality. The latter shall, after making examinations, submit the application documents and its preliminary comments thereon to the
administrative department of commerce of the people’s government at the provincial level. The competent administrative department
of commerce of the people’s government at the provincial level shall make a decision about whether or not to grant a business license
for the storage or retail of processed oil.

Article 7

An enterprise applying for a business license for the wholesale of processed oil must fulfill the following requirements:

(1)

having a stable supply of processed oil;

(2)

having a wholly-owned or controlling-share-held processed oil depot with a capacity of not less than 4,000 cubic meters, the construction
of which must be in conformity to the Code for Design of Oil Depots (GBJ74-84);

(3)

having pipelines for unloading processed oil, a special railroad line or a port for transporting processed oil and other necessary
facilities;

(4)

its oil depot and other facilities conforming to the relevant provisions of the state concerning safety in production and environmental
protection;

(5)

having specialized technical personnel with the knowledge of inspection, metrology, storage and fire safety of processed oil;

(6)

meeting the requirements of the development plan for processed oil wholesale networks; and

(7)

having sound management systems.

Article 8

An enterprise applying for a business license for the storage of processed oil must fulfill the following requirements:

(1)

its oil storage facilities conforming to the planning for the layout of tank farm;

(2)

having an oil depot with a capacity of not less than 4,000 cubic meters, the construction of which must be in conformity to the Code
for Design of Oil Depots (GBJ74-84);

(3)

having pipelines for unloading processed oil, a special railroad line or a port for transporting processed oil and other necessary
facilities;

(4)

the design and construction of its oil depots conforming to the relevant provisions concerning safety in production and environmental
protection;

(5)

having specialized technical personnel with knowledge of inspection, metrology, storage and fire safety of processed oil; and

(6)

having sound management systems.

Article 9

An enterprise applying for a business license for the retail of processed oil must meet the following requirements:

(1)

having a stable supply of processed oil and having reached an oil supply agreement with the enterprises with a business license for
the wholesale of processed oil;

(2)

complying with the development plan for local the filling station industry;

(3)

the design and construction of its filling stations conforming to the relevant national standards;

(4)

the construction of its filling stations conforming to the relevant provisions of the state concerning agrarian administration, fire
safety and environmental protection;

(5)

having specialized technical personnel with knowledge of inspection, metrology, storage and fire safety of processed oil; and

(6)

its aquatic filling stations (vessels) used in the supply of processed oil for vessels conforming to the relevant provisions concerning
ports, water transportation safety and prevention and control of water pollution, in addition to the above-mentioned provisions.

As for the filling outlets for the needs of rural areas and limited to the sale of diesel oil, the competent administrative departments
of commerce of the people’s governments at the provincial level shall, in the light of the local conditions, formulate their respective
provisions and administrative measures.

Article 10

Each competent administrative department of commerce shall, in its working place, make public the requirements, procedures, time limit,
documents to be submitted and a model application form for the application for processed oil business license.

Article 11

If the competent administrative department of commerce receiving the application holds that the application documents are incomplete
or they are not in conformity to the requirements, it shall, immediately or within five working days after receiving the application,
notify the applicant of the documents to be added or corrections to be made. In case no such notification has been made within the
prescribe time limit, the application shall be treated as accepted as of the receipt of the application documents.

Article 12

If the applicant has submitted complete and proper application documents or has added the application documents or made corrections
as required, the competent administrative department of commerce shall accept an application for processed oil business license.

The competent administrative department of commerce shall issue a dated certificate with the special stamp of the department affixed
thereon, to certify its acceptance of the application for a processed oil business license.

In the case of refusal to accept an application for a processed oil business license, the competent administrative department of commerce
shall issue a dated certificate with the special stamp of the department affixed thereon, explaining the reasons for the refusal
and notifying the applicant of his right to apply for an administrative reconsideration or take an administrative action.

Article 13

The competent administrative department of commerce accepting an application shall examine the submitted application documents and
put forward comments thereon and, in the case of the application subject to the examination of an competent administrative department
of commerce at a higher level, submit the application documents and its preliminary comments thereon to the competent administrative
department of commerce at a higher level.

Chapter III Procedures and Time Limits for the Examination of Applications for Processed Oil Business Licenses

Article 14

The competent administrative department of commerce of the people’s government at the provincial level shall, after receiving an application
for a license for the wholesale of processed oil, appoint at least two persons to complete the examination within 20 working days
and to submit the application documents and its preliminary comments thereon to the Ministry of Commerce.

The Ministry of Commerce shall, within 20 working days, complete the examination from receipt of the materials submitted by the competent
administrative department of commerce of the people’s government at the provincial level. An applicant fulfilling the requirements
as provided for in Article 7 hereof shall be given a license for the wholesale of processed oil and a Certificate of Approval for
the Wholesale of Processed Oil. An applicant failing to fulfill the relevant requirements shall be given a written notice of the
decision of disapproval with reasons stated.

Article 15

After receipt of an application for a license for the storage of processed oil, the competent administrative department of commerce
of the people’s government at the city level shall appoint at least two persons to complete the examination within 20 working days
and shall submit the application documents and its preliminary comments thereon to the competent administrative department of commerce
of the people’s government at the provincial level.

The competent administrative department of commerce of the people’s government at the provincial level shall, within 20 working days,
complete the examination after receiving the materials submitted by the competent administrative department of commerce of the people’s
government at the city level. An applicant fulfilling the requirements as provided for in Article 8 hereof shall be given a license
for the storage of processed oil and a Certificate of Approval for the Storage of Processed Oil; an applicant failing to fulfill
the relevant requirements shall be given a written notice of the decision of disapproval with reasons therefor. If no decision can
be made within 20 working days, the time limit may be extended for another 10 days with the approval of the person in charge of the
department, and the applicant shall be notified of the reasons for such extension.

Article 16

After receiving an application for a license for the retail of processed oil, the competent administrative department of commerce
of the people’s government at the city level shall appoint at least two persons to complete the examination within 20 working days
and shall submit the application documents and its preliminary comments thereon to the competent administrative department of commerce
of the people’s government at the provincial level.

The competent administrative department of commerce of the people’s government at the provincial level shall, within 20 working days,
complete the examination after receiving the materials submitted by the administrative department of commerce of the people’s government
at the city level. An applicant fulfilling the requirements as provided for in Article 9 hereof shall be given a license for the
retail of processed oil and a Certificate of Approval for the Retail of Processed Oil; an applicant failing to fulfill the relevant
requirements shall be given a written notice of the decision of disapproval with reasons therefor. If no decision can be made within
20 working days, the time limit may be extended for another 10 days with the approval of the person in charge of the department,
and the applicant shall be notified of the reasons for such extension.

Article 17

If the competent administrative department of commerce considers it necessary to hold a hearing on any application for a processed
oil business license, it shall make a public announcement and hold such a hearing.

Article 18

An enterprise engaging in processed oil business that wishes to establish a branch shall go through the application formalities for
such establishment in accordance with the present Measures.

An enterprise engaging in processed oil business that is to suspend or terminate its business shall go through the formalities of
suspension or cancellation with the department issuing the license.

Chapter IV Issue of and Changes in Certificates of Approval for Processed Oil Business

Article 19

The certificates of approval for processed oil business shall be uniformly made and printed by the Ministry of Commerce. The Certificates
of Approval for the Wholesale of Processed Oil shall be issued by the Ministry of Commerce; the Certificates of Approval for the
Storage of Processed Oil and the Certificates of Approval for the Retail of Processed Oil shall be issued by the competent administrative
departments of commerce of the people’s governments at the provincial level.

Article 20

Where an enterprise engaging in the wholesale of processed oil wishes to change any particular of its Certificate of Approval for
the Wholesale of Processed Oil, upon the strength of the enterprise’s presenting of the relevant certifying documents and the original
certificate of approval, an application shall be submitted to the Ministry of Commerce through the competent administrative department
of commerce of the people’s government at the provincial level . In the case of change of the corporate name, a certificate issued
by the competent administrative department for industry and commerce certifying such change shall be submitted; in the case of change
of the legal representative of the corporation, the corresponding certificates shall be submitted. Those still qualified for the
wholesale of processed oil shall have a new Certificate of Approval for the Wholesale of Processed Oil issued by the Ministry of
Commerce.

Article 21

Where an enterprise engaging in the storage or retail of processed oil wishes to change any particular concerned, an application,
together with the relevant certifying documents on the change, shall be submitted to the competent administrative department of commerce
of the people’s government at the provincial level. In the case of change of the corporate name, a certificate certifying such change
issued by the administrative department for industry and commerce shall be submitted; in the case of change of the legal representative
of the corporation, the corresponding certificates shall be submitted. The competent administrative department of commerce of the
people’s government at the provincial level shall conduct examination and issue a new Certificate of Approval for the Storage of
Processed Oil to the enterprise that is still qualified for the storage of processed oil, or a new Certificate of Approval for the
Retail of Processed Oil to the enterprise that is still qualified for the retail of processed oil.

Article 22

The changes in the Certificate of Approval for the Wholesale of Processed Oil, the Certificate of Approval for the Storage of Processed
Oil or the Certificate of Approval for the Retail of Processed Oil of an enterprise due to the change of the competent authority
of the enterprise shall apply other provisions that shall be separately formulated.

Chapter V Supervision and Control

Article 23

The administrative departments of commerce at a higher level shall conduct supervision and inspection on the administration by the
administrative departments of commerce at a lower level on the processed oil market control and promptly correct irregular acts in
the work of processed oil market control.

Article 24

The administrative departments of commerce of the people’s governments at various levels shall intensify the supervision and control
on the local processed oil market and investigate into and deal with the irregular acts of enterprises engaging in processed oil
business.

Article 25

No fees shall be charged for the administrative licensing for processed oil business or follow-up supervision and control by the competent
administrative departments of commerce. The competent administrative departments of commerce shall apply to the local financial administration
for funds required for processed oil market control.

Article 26

The Ministry of Commerce and the administrative departments of commerce of the people’s governments at the provincial level shall
publish the names of enterprises that have obtained a processed oil business license and of enterprises engaging in processed oil
business that have had any change or been cancelled.

Article 27

No one may forge, sell or purchase, let, lend or otherwise transfer any certificate of approval for processed oil business.

Article 28

The processed oil for specific use by special users shall be used in accordance with the provisions of the state concerning the use
level, use purpose and the extent of supply and may not be sold to others by such special users.

Article 29

The enterprises engaging in processed oil business shall do business lawfully and may not commit any of the following acts:

(1)

doing business without certificate or license or with certificate and license not consistent with each other or beyond its authorized
scope of business;

(2)

failure of any filling station to use oiling machines or other measuring instruments or to use tax-control devices as required;

(3)

using any oiling machine that is not tested or exceeds the term of validity of test and that does not meet the requirements for explosion
prevention, or modifying any oiling machine without authorization or skimping oil by other means;

(4)

mixing with impurities or imitations, passing a fake product off as a genuine one or passing a shoddy product off as high-quality
one;

(5)

selling the processed oil whose use has been expressly prohibited by the state or whose quality is inferior;

(6)

dealing in processed oil that is smuggled or illegally refined;

(7)

driving up oil prices or dumping oil in violation of the processed oil price policy of the state; and

(8)

other activities prohibited by laws or regulations of the state.

Article 30

Each enterprise engaging in the retail of processed oil shall purchase processed oil from enterprises that is qualified for the wholesale
of processed oil.

No enterprise engaging in the retail of processed oil may sell processed oil on a commission basis for any entity unqualified for
the wholesale of processed oil.

No enterprise engaging in the wholesale of processed oil may sell processed oil to any enterprise unqualified for doing processed
oil business.

When storing processed oil for other entities, an enterprise engaging in the storage of processed oil must verify the legality of
the source of the processed oil.

Article 31

The competent administrative department of commerce that made a decision to give a processed oil business license or the competent
administrative department of commerce at a higher level may, at the request of the interested parties or by virtue of its authority,
annul the said decision, if

(1)

the decision was made by a functionary of the administrative organ by abusing his authority or neglecting his duty when the applicant
did not fulfill the statutory requirements;

(2)

the decision was made beyond the authority;

(3)

the decision was made when the applicant was not qualified or did not fulfill the statutory requirements; or

(4)

it involves any other circumstances in which a decision on administrative licensing may be annulled according to law.

Chapter VI Legal Responsibility

Article 32

Any competent administrative department of commerce or any of its functionary who commits any of the following acts in violation of
these Measures shall be ordered by the competent administrative department at a higher level to make corrections, with the directly
responsible person in charge and other directly responsible personnel being given an administrative sanction when the case is of
gross violation:

(1)

failing to accept an application that meets the statutory requirements;

(2)

failing to give an applicant the reasons for refusing to accept its application or to grant license;

(3)

granting a license to an applicant not meeting the statutory requirements or beyond its authority;

(4)

refusing to make an approval decision or failing, without reasonable ground, to make such a decision within the prescribed time limit
for an applicant meeting the statutory requirements; and

(5)

failing to perform or effectively perform its supervisory duty, which causes serious consequences.

Article 33

Any competent administrative department of commerce that charges fees without authorization during its administrative licensing for
processed oil business shall be ordered by the competent administrative department at a higher level to refund the fees illegally
charged, with the directly responsible personnel being given an administrative sanction.

Article 34

Any enterprise engaging in processed oil business that commits any of the following acts shall be given an administrative penalty
by the competent administrative department of commerce. When the circumstances are serious, its certificate of approval for processed
oil business shall be revoked:

(1)

altering, selling, letting, lending or otherwise illegally transferring its certificate of approval for processed oil business;

(2)

any special user of processed oil selling specific oil without permission;

(3)

building any filling station or oil depot without observing the requirements or procedures provided for herein;

(4)

selling processed oil by mixing with impurities or imitations, passing a fake product off as a genuine one, passing a shoddy product
off as high-quality one or passing an inferior product off as a standard one, or that expressly prohibited by the state.

(5)

selling smuggled processed oil;

(6)

any enterprise engaging in the wholesale of processed oil selling processed oil to any enterprise without a processed oil business
license;

(7)

any enterprise engaging in the retail of processed oil purchasing processed oil from any enterprise without a license for the wholesale
of processed oil;

(8)

obtaining a business license by means of fraud or bribery or other improper means;

(9)

doing business beyond its authorized scope of business;

(10)

concealing the relevant facts from, or providing false information or refusing to provide real information about its business activities
to, the supervision and inspection authorities; and

(11)

other illegal acts as provided for by laws, regulations or rules.

Article 35

If any applicant conceals the relevant facts or provides false information, the competent administrative department of commerce shall
make a decision of refusal to accept its application or grant a license, and give a warning to the applicant.

Article 36

Any citizen, corporation or other organization that engages in processed oil business without being licensed by the administrative
department of commerce shall be prohibited and given an administrative penalty by the local competent administrative department of
commerce in conjunction with other relevant departments.

Chapter VII Supplementary Provisions

Article 37

The power to interpret these Measures shall be vested in the Ministry of Commerce.

Article 38

These Measures shall go into effect as of January 1, 2005.

 
the Ministry of Commerce
2004-12-02

 




CONSTITUTION ACT, 1982 – page 22

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