Facebook
Home Extradition

Extradition

MEASURES FOR THE ADMINISTRATION ON THE LOANS AND GRANTS BY INTERNATIONAL FINANCIAL ORGANIZATIONS AND FOREIGN GOVERNMENTS

Measures for the Administration on the Loans and Grants by International Financial Organizations and Foreign Governments

Cai Zheng Bu Ling [2006] No. 38
July 3, 2006
Chapter I General Provisions

Article 1

With a view to further regulating and strengthening the administration on the loans and grants by international financial organizations
and foreign governments and effectively utilizing the funds, the present Measures are formulated under the relevant provisions of
the State Council.

Article 2

The administration on the loans and grants by international financial organizations and foreign governments shall be subject to the
present Measures.

Article 3

The Ministry of Finance shall be in charge of the administration on the loans and grants. It is the central administrative department
for foreign debts of the government.

Article 4

The utilization of the loans and grants shall be in line with the development strategies of the national economy and society, embody
the functions of public finance and promote the harmonious development of the economic society and urban and rural regions.

Article 5

The raising, utilization, repayment of the loans shall accord with the principle of unifying the liabilities, rights and interests,
achieve the sustainability and sound circulation of debts and can effectively prevent and eliminate the risks of debts.

Article 6

For the purpose of the present measures:

(1)

The term “loans” means the loans granted by international financial organizations and foreign governments.

(2)

The term “loans by international financial organizations” means the loans forming foreign debts of the government, which are uniformly
raised by the Ministry of Finance on behalf of the state, upon the approval of the State Council, from the World Bank, Asian Development
Bank, International Agriculture Development Fund, European Investment Bank and other international financial organizations, as well
as the joint financing employed together with the aforesaid loans.

(3)

The term “loans by foreign governments” means the loans forming foreign debts of the government, which are uniformly raised by the
Ministry of Finance on behalf of the state, upon approval of the State Council, from foreign governments and the Nordic Investment
Bank, as well as the joint financing employed together with the aforesaid loans.

(4)

The term “grants” means the international grants which are accepted by the Ministry of Finance on behalf of the state and upon the
approval of the State Council, which are not employed together with the loans.

Chapter II Administrative Institutions and the Functions Thereof

Article 7

The Ministry of Finance shall manage the loans and grants in a centralized manner, and shall fulfill the functions as follows:

(1)

determining the principle for the administration on the loans and grants and formulating basic rules and regulations thereon,

(2)

making plans on loaning together with the relevant departments of the State Council,

(3)

planning and carrying out the work related to the foreign loans and grants as a whole, and negotiating, talking and concluding legal
documents with international financial organizations and foreign governments,

(4)

being responsible for the on-lending, sub-granting, utilization, repayment, counting and monitoring of the loans and grants, and

(5)

providing policy guidance, coordination and supervision on the activities in respect of loans and grants.

Article 8

A local department of finance is the representative of the creditor’s rights and liabilities in respect of the loans of the government
at the same level and is the administrative institution for loans and grants, and shall be in charge of the administration on the
whole course of the loans and grants of its region.

Article 9

As regards a project directly on-lent or sub-granted by the Ministry of Finance to the relevant departments of the State Council,
the relevant departments of the State Council shall determine the central project executive institutions, which shall be in charge
of organizing the concrete execution of the project.

Article 10

As regards an association project across two or more provinces, autonomous regions and municipalities directly under the Central
Government, directly sub-lent or sub-granted by the Ministry of Finance to the local governments, if it is necessary for the relevant
departments of the State Council to organize or coordinate the work, the relevant departments of the State Council shall determine
a central project coordination institution, which shall be in charge of providing guidance, organizing and coordinating the work
in respect of the project.

Article 11

As regards a loan project which shall be repaid by a local government or a project under a grant accepted by a local government,
the local government shall determine a local project executive institution, which shall be in charge of organizing and executing
the project.

Article 12

The central project executive institution, central project coordination institution or local project executive institution shall
be subject to the guidance and supervision of the finance departments at the same level, and shall submit their plans on operating
fund disbursements to the finance departments at the same level for examination and approval or for archiving purpose.

Chapter III Loan Raising

Article 13

The raising of a loan includes the loan application, appraisal and evaluation, negotiating and talking with the foreign party, subscription
and entry into force of the legal documents on the loan, determination of on-lending relationship as well as clarification of repayment
liabilities.

Article 14

Where a region plans to use a loan by an international financial organization, the finance department of the province, autonomous
region, municipality directly under the Central Government, city specially designated on the state plan, or the Finance Bureau of
Xinjiang Production and Construction Corps (hereinafter referred to as the provincial finance department) shall, on behalf of the
government at the same level, file an application for the loan with the Ministry of Finance.

Where a relevant department of the State Council or any other institution plans to use a loan by an international financial organization,
it shall file an application for the loan with the Ministry of Finance. If the debts are repaid by the local government, a repayment
commitment letter issued by the provincial finance department shall be provided together with the application.

The application for a loan shall include the following main contents:

(1)

the purpose and necessity of the loan,

(2)

the main contents of the loan project,

(3)

the sources of the loan and the supporting funds, and

(4)

the arrangement on the on-lending and debt repayment.

Article 15

The Ministry of Finance shall examine the application for a loan, and shall determine whether or not to list this loan application
into the plan on loans by international financial organizations subject to the provisions in Articles 4 and 5 of the present Measures
the requirements of the loan providers.

Article 16

The provincial finance department shall organize appraisals on projects listed into the plan on loans by international financial
organizations and shall submit the appraisal opinions to the Ministry of Finance, which shall, in light of the appraisal opinions,
determine whether or not to arrange negotiations and talks with the foreign party. The matters to be appraised mainly include:

(1)

the debt burden and financial capacity of the provincial government,

(2)

the financial, economic and social benefits of the loan project,

(3)

the financial status of the project entity and the executing condition on the supporting funds, and

(4)

the on-lending arrangement, repayment liabilities and source of the repayment fund.

Article 17

The loan projects granted by foreign governments shall be classified into 3 categories as follows in light of the different repayment
liabilities:

(1)

projects with the provincial finance departments or the relevant departments of the State Council bearing the repayment liabilities
as the debtors,

(2)

projects with the project entities bearing the repayment liabilities as the debtors and the provincial finance departments or the
relevant departments of the State Council providing the repayment guarantees, and

(3)

projects with the project entities bearing the repayment liabilities as the debtors and the on-lending institutions as the final payers
of the foreign debts, under which the provincial finance departments or the relevant departments of the State Council shall not act
as the debtors or provide the repayment guarantees.

Article 18

The provincial finance departments shall organize an appraisal on the projects to use a loan granted by a foreign government. The
appraisal items shall be determined under Article 16 of the present Measures.

Article 19

Where a project to use a loan by a foreign government meets the relevant requirements upon appraisal, the provincial finance department
shall file an application with the Ministry of Finance, and shall submit the following materials:

(1)

the information on the debts to be paid by the relevant government of the debtor,

(2)

the application of the provincial finance department for using the loan by a foreign government. The loan application shall state
the brief introduction of the project, source of the loan for the project, amount of the loan, the debtor, sub-lending institution,
on-lending type, and source of the supporting fund, and

(3)

an evaluation report on the environmental impact and a feasibility research report on the project in English as required by the loan
provider.

Article 20

After the Ministry of Finance examines and confirms the application materials submitted by the provincial finance departments for
using a loan granted by a foreign government, it shall, in light of the development aid policies and the fund commitment of the loan
provider, propose the candidate projects to the foreign government in a centralized manner.

Article 21

As for a loan project by foreign governments, which is required to change the country of the loan or increase the amount of the loan,
the provincial finance department shall file a written application with the Ministry of Finance. The Ministry of Finance shall make
a decision after taking into consideration the requirements of the loan provider, the actual needs of the project and other information
as a whole.

Article 22

As to loan projects meeting the relevant requirements, the Ministry of Finance shall negotiate with the international financial organizations
or foreign governments, organize the conclusion of legal documents on loans and handle the relevant matters concerning the entry
into force of the these legal documents. And other departments shall offer assistance to the Ministry of Finance.

Article 23

The Ministry of Finance shall, in light of the type of the loan project by a foreign government, entrust or notify the on-lending
institution to evaluate the project and go through other relevant on-lending formalities in a timely manner.

Article 24

The on-lending institution of a loan by a foreign government shall, according to the relevant provisions, conclude legal documents
on the loan with the foreign financial institution and sign an on-lending agreement with the debtor so as to ensure the repayment
of the principal and payment of interests thereof to the foreign party and the payment in advance of the fund.

Chapter IV Utilization of Loans

Article 25

The utilization of a loan shall mainly include the purchase for the loan project, payment of the loan fund, technical aid, training
of personnel, monitoring and reporting on the execution progress of the project.

The project entity shall, pursuant to the laws and regulations of the state as well as the legal documents on the loan, organize the
execution of the loan project.

Article 26

As for a project under a loan by an international financial organization with the local government bearing the debts, the oversea
visit plan, purchase plan, selection of the purchasing agency and other matters related to this project shall not be carried out
after they have been examined and confirmed by the provincial finance department.

The oversea visit plans related to other projects under loan granted by international financial organizations shall be carried out
after the approval of the Ministry of Finance. The purchase plans and selections of the purchasing agencies shall be reported to
the Ministry of Finance for archiving purpose.

As for a project under a loan by a foreign government, which has been examined and confirmed by the Ministry of Finance, the provincial
finance department shall, pursuant to the relevant provisions of the Ministry of Finance, organize or guide and supervise the project
entity’s determination of a purchasing agency, and shall report the result to the Ministry of Finance for archiving purpose.

Article 27

The purchasing agency shall, in light of the entrustment agreement and the requirements of the loan provider, fulfill the procurement
work for the project under the loan of foreign government.

Article 28

The utilization of a loan fund shall be in line with the provisions in the legal documents on the loan. No entity or individual may
obtain any loan fund by making false report, obtaining it in the name of others or by other deceitful means. And no entity or individual
may detain, hold back or misappropriate any loan fund, or change the uses of any loan fund without permission.

Article 29

The provincial finance departments shall intensify the management and supervision on the projects under loans by international financial
institutions, focusing on the matters as follows:

(1)

organizing the formulation of regulations on the management of loan projects, guiding and supervising the fund, financial affairs
and debt management related to the loan projects,

(2)

supervising the actual payment and utilization of the loan funds and supporting funds, being responsible for the payment and the administration
of exclusive accounts of the loan funds according to the authorization of the Ministry of Finance, and being responsible for dividing
the debts arisen from loan funds, as well as the repayment of loans and payment of interests and fees,

(3)

guiding and supervising the purchase task of the loan projects jointly with other relevant departments, and

(4)

other matters related to the supervision and management over the execution of the projects.

Article 30

The local or central project entities shall, in light of the legal documents on the loan, submit to the Ministry of Finance and the
loan provider reports on the progress of the project, financial statements and audit reports via the provincial finance departments
or directly.

Article 31

The finance departments at all levels shall supervise and inspect the execution of the projects. In case any of them finds a problem,
it shall order the project entity to take effective measures to solve it and make corrections within a time limit.

Article 32

After the completion of a loan project, the project entity shall timely make accounts on the completion and evaluate and summarize
the execution of the project in all aspects, and shall, according to the relevant provisions, formulate and submit a project completion
report and go through the formalities for the transfer and register of the assets.

The finance departments at all levels shall guide and urge the project entity to well do the post-evaluation and summarization work
for the projects.

Article 33

After the completion of a loan project, the project entity shall make a future operation plan on the project in a timely manner,
and shall monitor the actual operation of the project.

Before a loan is paid off, the finance departments at all levels shall be responsible for the supervision and inspection over the
execution of the operation plan on the project, and shall timely inquire about and analyze the information on the benefits of the
project.

Article 34

During the execution of a loan project by an international financial organization, the project entity shall, in light of the financial
accounting system of the state and the administrative provisions on accounting of the loan projects, conduct separate financial management
and accounting calculation for the said project, and establish a sound internal financial accounting system.

Chapter V Repayment of Debts

Article 35

After the conclusion of the legal documents on a loan, the on-lending institution and the debtor shall, according to the relevant
provisions on the management of foreign debts, go through the foreign debt register formalities.

Article 36

The debtor shall strictly abide by the on-lending agreement, formulate a plan on the repayment of the maturity principal, interests,
commitment fees and other relevant fees, and shall guarantee the payment in full amount.

Article 37

The debtors of loan projects by international financial organizations shall, according to the relevant provisions of the Ministry
of Finance, undertake accounting calculation and statistical work on the loan debts, and shall timely prepare complete and accurate
reports on the credits and debts of this region or this entity and submit them to the superior competent institution as well as the
local government at the same level.

The on-lending institutions of loan projects by foreign governments shall, in light of the requirements of the Ministry of Finance
and the provincial finance department, provide the statistical information and materials related to the credits and debts in a timely
manner.

Article 38

The debtors shall, according to the relevant provisions of the Ministry of Finance, establish loan repayment reserves, which are
exclusively used for the payment in advance for the maturity loan debts owed to international financial organizations and foreign
governments.

The loan repayment reserve of the government at each level shall be established and administered by the respective finance department
at the same level.

Article 39

The finance department at each level shall establish statistical, monitoring and pre-warning systems for the foreign debts of the
government so as to prevent and avoid the risks of debts.

Article 40

The debtors may, on the basis of abiding by the prudent principle and establishing a sound internal control system, avoiding the
risks by utilizing the financial instruments according to the relevant laws and regulations.

To choose a transaction object, the debtors shall follow the competition principle, and shall avoid the losses of the principal in
the transaction. After the end of a transaction, it shall submit the relevant documents on the transaction to the Ministry of Finance
for archiving purpose.

Article 41

At the time of check and acceptance on the completion of a loan project, the relationship of property rights and the relationship
between the creditor and the debtor shall be made clear so as to prevent the loss of state-owned assets and dodge of debts.

Article 42

When a debtor changes its property rights by assets reorganization or enterprise restructuring or when it goes bankrupt, it shall
obtain the approval of the on-lending institution and the Ministry of Finance and the approval of the loan provider where necessary,
and shall conclude an agreement on the debt repayment arrangement so as to ensure the priority to repay the foreign debts of the
government.

Chapter VI Administration on the Grants

Article 43

The administration on the grants shall include the preliminary work of the grant projects, utilization of the funds, project completion
evaluation and summarization, asset management and etc.

Article 44

The preliminary work of a grant project shall include the preparation of a grant application, formulation of a project proposal,
negotiations and talks, conclusion of legal documents, determination of sub-granting relationship and etc.

The local finance department shall strengthen the coordination and management of the preliminary work related to the grants to this
region.

Article 45

The project entity to apply for a grant shall prepare a grant application and attach an abstract of the project.

The central project entity shall directly submit to the Ministry of Finance the application and the abstract of the project. The local
project entity shall submit to the Ministry of Finance the application and the abstract of the project via the provincial finance
department. The project abstract shall mainly contain the following contents:

(1)

the project background,

(2)

the aim of the project,

(3)

the contents of the project,

(4)

the budget of the project,

(5)

the sustainability and demonstration role of the project, and

(6)

the risks of the project.

Article 46

After the Ministry of Finance examines and approves the grant application and the abstract of the project, the central project entity
shall directly submit a project proposal to the Ministry of Finance, and the local project entity shall submit a project proposal
to the Ministry of Finance via the provincial finance department.

The project proposal shall mainly contain the following items:

(1)

the aim of the project,

(2)

the necessity and feasibility of the project,

(3)

the activities related to the project,

(4)

the project execution plan and arrangement,

(5)

the budget of the project,

(6)

the project quality and risk control,

(7)

the application and popularization of the achievements of the project, and

(8)

the monitoring and evaluation.

Article 47

The Ministry of Finance shall, in light of the project proposals examined and approved by it, be responsible for negotiating with
the international financial organizations or foreign governments, organizing the conclusion of legal documents on grants and handling
the matters related to their entry into force. Other departments shall assist the Ministry of Finance to well do the relevant work.

Article 48

The Ministry of Finance may directly or entrust another institution to sign the on-lending agreement or execution agreement with
the domestic grantee so as to regulate the rights and obligations of both parties, and may, according to the relevant provisions
of the Ministry of Finance, charge a paid use fee at the rate of 1 % of the total amount of the grant.

The paid use fees of grants in joint financing used in combination with loans shall be charged according to the provisions of the
preceding paragraph.

Article 49

The utilization of a grant fund shall be in line with the legal documents on the grant. No entity or individual may obtain any grant
fund by making false report, in the name of others or by other deceitful means. No entity or individual may detain, hold back or
impropriate any grant fund or change the uses of any grant fund without permission.

Article 50

The grant project entity shall establish a sound internal financial accounting supervision system, and shall conduct separate financial
management and accounting calculation on the project in light of the provisions of the Ministry of Finance on financial and accounting
management of grant projects, prepare a project execution plan in light of the requirements of the legal documents on the grant,
organize the execution of the project, make final accounts upon the completion of a project, make and submit the project completion
report and submit a project execution report and an audit report to the Ministry of Finance and the grant provider.

Article 51

Before the completion of a grant project, the Ministry of Finance shall, according to the relevant provisions of the State and the
requirements of the legal documents on grants, make clear the ownership and the way of disposal of the assets formed by the grant.

If the assets formed by a grant are state-owned, the relevant entities shall prevent the loss of state-owned assets according to Article
41 of the present Measures and other relevant provisions of the State.

Chapter VII Legal Liabilities

Article 52

Where a project entity violates Article 31 of the present Measures by failing to solve or rectify the problems it finds during the
process of supervision and inspection, the finance department may take measures such as suspending the payment of the loan fund,
demanding refund of the amount already paid and suspending the examination and approval of the overseas visit plan.

Article 53

Where a project entity violates Article 34 or Article 50 of the present Measures, the finance department may order it to make corrections
within a time limit, and may punish it according to the laws and regulations of the state on accounting management.

Article 54

Where a debtor violates Article 36 of the present Measures by failing to repay the due principal, interests, commitment fees and
other relevant fees, the Ministry of Finance may take measures as follows:

(1)

charging the fund occupation fee or penalty for breach of contract,

(2)

suspending the preparation work for any new loan project,

(3)

suspending the examination, approval and execution of any oversea visit plan,

(4)

suspending the payment of the fund of a loan project,

(5)

accelerating the repayment of the undue debts of the loan project, and

(6)

taking back the loan fund by deducting the budget or by other means.

Article 55

Where any entity or individual obtains any loan fund by making false report, in the name of others or by other deceitful means, or
utilizes any loan fund in violation of the relevant provisions such as detaining, holding back and impropriating any loan fund, or
obtains any illegal benefits from the loans undertaken or guaranteed by the government, it (he) shall be punished according to the
Regulations on Penalties and Sanctions against Illegal Fiscal Acts (Order No. 427 of the State Council) and other relevant laws and
regulations.

Article 56

Where any entity or individual violates Article 49 of the present Measures, the Ministry of Finance shall order it (him) to make
corrections within a time limit. If the circumstance is serious, it (he) shall be given warnings, and the Ministry of Finance may
take measures such as suspending the payment of the grant fund and suspending the examination and approval of any oversea visit plan.

Article 57

Where any of the functionaries of a finance department or project competent institution embezzles any money, accepts any bribe, abuses
his power, neglects his duties or seeks any private benefits during the course of the administration on any loan or grant or during
the course of the utilization and repayment of any loan or grant fund, he shall be imposed upon an administrative punishment.

Chapter VIII Supplementary Provisions

Article 58

Where the relevant departments of the State Council, the enterprise group under separate planning and central management enterprises
under separate planning plan to use the loan or grant projects by foreign governments, it shall be subject to the present Measures.

Article 59

The on-lending institutions may formulate detailed implementation measures according to the present Measures.

Article 60

The present Measures shall come into force as of September 1, 2006.



 
Ministry of Finance
2006-07-03

 






CIRCULAR OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING REGULATING THE ADMINISTRATION ON PREMIUM RATES IN THE INSURANCE CLAUSES OF COMMERCIAL MOTOR VEHICLES

Circular of China Insurance Regulatory Commission concerning Regulating the Administration on Premium Rates in the Insurance Clauses
of Commercial Motor Vehicles

Bao Jian Fa [2006] No. 75
July 4, 2006

Each property insurance company, each insurance regulatory body and China Insurance Association,

The Regulation on Compulsory Traffic Accident Liability Insurance for Motor Vehicles (hereinafter referred to as compulsory traffic
insurance) implemented as of July 1, 2006 is conducive to promoting a faithful and sound business operation of the property insurance
sector, is conducive to promoting a healthy development of the insurance industry and is conducive to promoting the social harmony
and stability. Each insurance company shall grasp this good chance, actively promote product innovation and unremittingly improve
the product system so as to ensure a smooth transition between the commercial motor vehicle insurance and the compulsory traffic
insurance as well as a sustainable, quick and sound development of the property insurance sector. We hereby give the notice about
related matters as follows:

1.

An insurance company shall develop the commercial motor vehicle insurance products on the compulsory traffic insurance in time. The
principles of compensation for commercial motor vehicle insurance shall abide by the related provisions of the Law of the People￿￿s
Republic of China on Road Traffic Safety. Particularly, an insurance company shall develop products of the third party liability
insurance for commercial motor vehicles beyond the maximum amounts of compensation in sub-items under the compulsory traffic insurance,
whose structure of premium rates shall be basically consistent with the compulsory traffic insurance and in which the specific vehicle
types can be further sub-divided.

2.

China Insurance Association may develop the basic premium rates in insurance clauses for the sector of commercial motor vehicle insurance
(hereinafter referred to as the premium rate of the Association). An insurance company may, in accordance with the real situation,
choose the present premium rate of the Association in force or develop new ones by itself. If the premium rate of the Association
is selected, any alteration may not be made thereon and any random portfolio may not be made among different sets of premium rates
of the Association, but supplementary motor vehicle insurance products can be developed in light of the premium rates of the Association.

3.

If an insurance company or China Insurance Association makes an application for any premium rate for the insurance clause of commercial
motor vehicles, it shall satisfy the requirements of the laws and regulations as well as industrial norms. The application materials
shall be complete and accurate. Such items as data basis, actuarial method and proceeding shall be indicated in the actuarial report
so as to ensure that the premium rates are both scientific and reasonable. The setting of processing fees and any other surcharge
rates shall be reasonable and proper, and the specific standards shall be clearly indicated. The rating standards for the processing
fees may differ according to product categories and sales channels. The processing fee rate per policy for a same product category
or sales channel may not go beyond the standards described in the actuarial report.

4.

The interval period for an insurance company or China Insurance Association to make an application for adjusting the clause premium
rates shall be at least 6 months. Particularly, to adjust the premium rate of the Association, an application shall be filed by China
Insurance Association with China Insurance Regulatory Commission. An insurance company may, upon approval of China Insurance Regulatory
Commission, choose the premium rate at its own will. If an insurance company needs to continue the premium rate of the Association
before adjustment, a new application shall be filed with China Insurance Regulatory Commission as a self-developed product.

5.

Each branch and sub-branch of an insurance company shall implement the premium rates of insurance clauses of commercial motor vehicles
as approved by China Insurance Regulatory Commission and may not change it unlawfully. Since July 1st, 2006, the insurance regulatory
bodies may not accept the application of any branch or sub-branch of an insurance company for adjusting the premium rate of motor
vehicles.

6.

When issuing and distributing any insurance policy, the insurance company shall provide the related insurance clauses to the insurance
purchaser. Since October 1, 2006, where an insurance company provides any insurance clause to any insurance purchaser, the related
clause serial number as approved by China Insurance Regulatory Commission shall be indicated after the clause name.

7.

Since July 1, 2006, an insurance company shall use the new commercial motor vehicle insurance products which are related to the compulsory
traffic insurance as approved by China Insurance Regulatory Commission. It shall cease the sale of the original motor vehicle insurance
products.

8.

The present Circular shall enter into force as of the distribution date. Any matter that has not been indicated herein shall be implemented
in accordance with the Measures concerning the Administration of Insurance Clauses and Premium Rates of Property Insurance Companies
and the related provisions.



 
China Insurance Regulatory Commission
2006-07-04

 






CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE CONCERNING DOING WELL THE REFORM OF NON-TRADABLE SHARES OF FOREIGN-FUNDED LISTED COMPANIES

Circular of the General Office of the Ministry of Commerce concerning Doing Well the Reform of Non-tradable Shares of Foreign-funded
Listed Companies

Shang Ban Zi Han [2006] No. 63

The competent departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in
the state plan, and Xinjiang Production and Construction Corporations:

In order to do well the reform of non-tradable shares of foreign-funded listed companies, the Ministry of Commerce and the Securities
Regulatory Commission jointly issued the Circular of the Ministry of Commerce and the Securities Regulatory Commission concerning
Foreign Investment Administration relevant to the Reform of Non-tradable Shares of Listed Companies(Shang Zi Fa [2005] No.565)(hereinafter
referred to as the Circular) on October 26, 2005, which clearly prescribed such issues as the procedures and transaction time limit
of non-tradable shares for A-share listed companies(hereinafter referred to as foreign-funded listed companies) holding the warrant
of foreign investment.

In order to actively coordinate with the relevant departments to do well relevant works of foreign investment concerning the reform
of non-tradable shares and to press foreign-funded investment companies to accelerate the reform of non-tradable shares, the competent
departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in the state plan,
and Xinjiang Production and Construction Corporations are required to show great concerns to the progress made in the reform of non-tradable
shares of foreign-funded listed companies and to transfer the application documents to the Ministry of Commerce within two days after
the program concerning the reform of non-tradable shares carried out by foreign-funded listed companies has been voted and approved
by the relevant conference of board of directors

The Circular is hereby given.

The General Office of the Ministry of Commerce

July 4, 2006



 
General Office of the Ministry of Commerce
2006-07-04

 






DECISION OF THE STATE COUNCIL ON AMENDING THE PROMULGATION

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

No. 470

The Decision of the State Council on Revising the Regulations for the Supervision and Administration over Cotton Quality is hereby
promulgated, and shall enter into force as of the date of promulgation.
Wen Jiabao, Premier of the State Council

July 4, 2006

Decision of the State Council on Amending the promulgation

The State Council has decided to revise the promulgation as follows:

1.

Paragraph 1 of Article 3 shall be revised toas: ” When a cotton business operator intends to engage in cotton processing business,
it shall obtain its qualification certification according to the relevant provisions of the state. ”

2.

Article 24 shall be amended as: ” Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article
7 of the present Regulations by failing to meet the national standards or technical norms to exclude foreign fibers and other noxious
substances before determining the category, grade and quantity of the purchased cotton, or by failing to conduct technical treatment
on the purchased cotton which goes beyond the national moisture standard, or by failing to classify and grade the purchased cotton
for placement, it shall be ordered by the cotton quality supervision institution to make corrections, and imposed upon a fine up
to RMB 30,000 Yuan. ”

This Decision shall enter into force as of promulgation.

The Regulations for the Supervision and Administration over Cotton Quality shall be revised accordingly pursuant to this Decision,
and shall be promulgated again.



 
The State Council
2006-07-04

 






MEASURES FOR THE EXAMINATION AND APPROVAL OF THE MEMBERSHIP OF THE GOVERNMENT BOND UNDERWRITING SYNDICATES

Order of the Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission

No. 39

The Measures for the Examination and Approval of the Membership of the Government Bond Underwriting Syndicate, which have been deliberated
and adopted by the Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission, are hereby promulgated
and shall come into force as of the date of promulgation.
Minister of Finance Jin Renqing

Governor of the People’s Bank of China Zhou Xiaochuan

Chairman of China Securities Regulatory Commission Shang Fulin

July 4, 2006

Measures for the Examination and Approval of the Membership of the Government Bond Underwriting Syndicates
Chapter I General Provisions

Article 1

In order to regulate the examination and approval of the membership of the government bond underwriting syndicates, safeguard the
legitimate rights and interests of the applicants and the members of the government bond underwriting syndicates and promote the
smooth issuance of government bonds as well as the stable development of the market, these Measures are formulated subject to relevant
provisions of the State Council.

Article 2

The present Measures apply to the examination and approval of the membership of the government bond underwriting syndicates.

Article 3

Government bond hereof referred to in the present Measures is the certificate bond, book-entry government bond and other government
bonds issued by the Ministry of Finance on behalf of the Central Government within the territory of China.

Article 4

Members of government bond underwriting syndicates hereof referred to in the present Measures are the commercial banks, securities
companies, insurance companies, trust investment companies and other financial institutions within the territory of China, which
comply with the particular qualifications and engage in government bond underwriting business upon approval.

Article 5

The government bond syndicates may include certificate bond underwriting syndicate, book-entry government bond underwriting syndicate
and other government bond underwriting syndicate, which are established in light of the species of the government bonds.

The members of the book-entry government bond underwriting syndicate may be divided into Class A members and Class B members.

Article 6

Commercial banks or other deposit financial institutions within the territory of China, and the China Postal Savings and Remittance
Bureau may apply for membership of a certificate bond underwriting syndicate.

Commercial banks or other deposit financial institutions within the territory of China, and securities companies, insurance companies,
trust investment companies or other non-depositing financial institutions may apply for membership of a book-entry government bond
underwriting syndicate.

Article 7

The examination and approval of the membership of the book-entry government bond underwriting syndicate shall be implemented by the
Ministry of Finance and jointly with the People’s Bank of China and China Securities Regulatory Commission (hereinafter referred
to as the CSRC), and shall solicit opinions from China Banking Regulatory Commission (hereinafter referred to as the CBRC) and China
Insurance Regulatory Commission (hereinafter referred to as the CIRC).

The examination and approval of the membership of the certificate bond underwriting syndicate shall be implemented by the Ministry
of Finance and jointly with the People’s Bank of China and shall solicit opinions from the CBRC.

Article 8

To establish a government bond underwriting syndicate shall abide by the principle of openness, fairness and impartiality, and select
the superior and eliminate the inferior on the basis of overall stability of the members. The number of members of the certificate
bond underwriting syndicate shall not be more than 40 in principle; the book-entry government bond underwriting syndicate 60, of
which the number of Class A members shall not be more than 20.

Article 9

The validity period of membership of a government bond underwriting syndicate shall be three years. After the expiration, the membership
shall be subject to a new examination and approval in accordance with the present Measures.

Chapter II Qualification Conditions

Article 10

An applicant shall meet the basic conditions as follows:

(1)

being a legal established financial institution within the territory of China;

(2)

engaging in business subject to relevant laws, having no record of serious violation in its business activities within the three recent
years and having a sound credit standing;

(3)

having sound and stable financial status; its capital adequacy ratio, solvency or net capital status and other indicators reaching
the surveillant standards; and having a fairly strong risk control capacity;

(4)

having a department which is exclusively in charge of the government bond businesses and having a sound control system for government
bond investment and risk;

(5)

its information management system has reached a fairly high level; and

(6)

being able to and being voluntary to perform all the obligations as described in Chapter VI of the present Measures.

Article 11

Where an applicant applies for the membership of the certificate bond underwriting syndicate, it shall observe the requirements as
follows:

(1)

It is in compliance with the requirements as described in Article 10 of the present Measures;

(2)

It is a deposit financial institution with not less than RMB 300 million of registered capital or with a total asset of RMB ten billion
or more; and

(3)

It has 40 or more business branches.

Article 12

Where an applicant applies for the membership of Class B of the book-entry bond underwriting syndicate, it shall meet the requirements
as follows:

(1)

It is in compliance with the requirements as provided in Article 10 of the present Measures; and

(2)

It is a deposit financial institution with registered capital no less than RMB 300 million or with total asset of RMB 10 billion or
more, or a non-deposit financial institution with registered capital of RMB 800 million.

Article 13

Where an applicant applies for the membership of Class A of the book-entry bond underwriting syndicate, it shall not only comply
with the requirements as described in Article 12 of the present Measures, but also rank among the top 25 in the comprehensive evaluation
of the book-entry bond business of the last year.

Chapter III Application, Examination and Approval

Article 14

The Ministry of Finance shall, jointly with the People’s Bank of China and CSRC, take charge of the examination and approval of the
membership of government bond underwriting syndicates. The closing date of the submission of applications for the membership of government
bond underwriting syndicates and other relevant information shall be publicized in advance in order to ensure sufficient time for
the applicants to prepare the application materials.

An applicant shall bring forward an application before the closing date and shall submit the application materials as follows:

(1)

An application form;

(2)

A brief introduction about this institution;

(3)

Copies for the legal person business license and the financial business permit;

(4)

A copy of the audit report on the final accounting of revenue and expenditure of the last year; and

(5)

Information about underwriting and transaction of the government bond in the last 2 years.

Where an applicant applies for the membership of the certificate bond underwriting syndicate, it shall respectively submit the application
materials to the Ministry of Finance and the People’s Bank of China. Where an applicant applies for the membership of the book-entry
bond underwriting syndicate, an applicant shall submit the application materials to the Ministry of Finance.

Article 15

The Ministry of Finance shall examine the application materials for the membership of book-entry underwriting syndicate, and shall,
jointly with the People’s Bank of China, examine the applications materials for the membership of certificate bond underwriting syndicate.
It shall respectively dispose the application materials pursuant to different conditions as follows:

(1)

When the application materials are incomplete or its format are not in consistent with the statutory form, the applicant shall be
notified, on the spot or within five days, of the contents to be supplemented and corrected once and for all. If it fails to do so,
it shall be deemed that the application have been accepted on the day when the application materials is received; or

(2)

When the application materials are complete and its format are in consistent with the statutory form, or if the applicant has submitted
all supplemental and correction application materials as required, the application for examination and approval shall be accepted.

Where the Ministry of Finance accepts or rejects an application for the examination and approval of the membership of a government
bond underwriting syndicate, it shall issue a certificate in written form with the special seal and an indication of the date.

Article 16

The Ministry of Finance shall solicit opinions from the CBRC and the CIRC in terms of the important business activities, financial
risk status, performances in the financial market, and whether or not there is any record of severe violation in the business activities
in recent three years.

Article 17

The Ministry of Finance shall convene meetings on the examination and approval of the membership of the certificate bond underwriting
syndicate, and perform the examination on the application materials of the applicants jointly with the People’s Bank of China.

The Ministry of Finance shall convene meetings on the examination and approval of the membership of the book-entry bond underwriting
syndicate, and perform the examination on the application materials of the applicants jointly with the People’s Bank of China and
CSRC.

Article 18

The Ministry of Finance shall, jointly with the People’s Bank of China and CSRC, select the superior of the members of the government
bond underwriting syndicates on the basis of the actually paid-up capital, asset scale, business performances, inter-industry ranking
and comprehensive ranking of government bond businesses and other relevant circumstances.

Article 19

The applicant shall be notified of the right to request for a hearing before the decision on the examination and approval of membership
of a government bond underwriting syndicate has been made by the Ministry of Finance, the People’s Bank of China and CSRC.

The hearing shall be implemented subject to the Measures for the Implementation of Hearing of Administrative Licensing by Finance
Organs (Order No. 21 of the Ministry of Finance).

Article 20

The Ministry of Finance shall, jointly with the People’ Bank of China, make a decision in written form on approval or disapproval
of the membership of the certificate bond underwriting syndicate within 45 days after the closing date for the acceptance of application
materials, or jointly with the People’s Bank of China and CSRC, make a decision in written form on approval or disapproval of the
membership of the book-entry bond underwriting syndicate.

A decision on approval of the membership of a government bond underwriting syndicate shall be promulgated to the general public after
it has been made.

If a decision on disapproval of the membership a government bond underwriting syndicate has been worked out, an explanation shall
be made and the applicant shall be notified of the right to administrative reconsideration or administrative lawsuit.

Article 21

A qualification certificate shall be issued to all the members of the certificate bond underwriting syndicate by the Ministry of
Finance and the People’s Bank of China. A qualification certificate shall be issued to all the members of the book-entry underwriting
syndicate by the Ministry of Finance, People’s Bank of China and CSRC.

Article 22

An applicant that refuses to accept the decision on rejection of its application or the decision on disapproval of the membership
of the government bond underwriting syndicate may apply for an administrative reconsideration or bring an administrative litigation
in the people’ court.

Chapter IV Withdrawal and Addition

Article 23

A member of a government bond underwriting syndicate may apply for withdrawal.

Article 24

The Ministry of Finance shall, jointly with the People’s Bank of China and/ or CSRC, work out a decision on approval or disapproval
of the applicant’s withdrawal from the government bond underwriting syndicate within 30 days after the receipt of an application
for withdrawal, and promulgate it to the general public.

The withdrawal applicant as a member of government bond underwriting syndicate shall continue its obligations and enjoy the corresponding
rights before obtaining an approval.

Article 25

If any member of a government bond underwriting syndicate commits any of the following acts, it shall withdraw from the government
bond underwriting syndicate in light of the primary agreement on the underwriting of government bonds:

(1)

A member of a government bond underwriting syndicate commits any severe violation of law, or it can not sustain the performance of
the obligations of a member of the government bond underwriting syndicate due to its bad financial status;

(2)

A member of the certificate bond underwriting syndicate fails to perform the prescribed obligation of underwriting the minimum or
higher proportion of government bonds, or it commits such acts as being reluctant to sell, selling by exceeding the plan, entrusting
any other institution to sell, or failing to actively promote and publicize the sale of the government bonds; or

(3)

If any member of the book-entry government bond underwriting syndicate fails to bid for or underwrite the government bonds at the
minimum or higher proportion as prescribed in the primary agreement on the underwriting of government bonds for 4 times in accumulation,
or makes any seriously inappropriate bid, or dominates the secondary market, etc.

Article 26

If any member withdraws from a government bond underwriting syndicate, the primary agreement on the underwriting of government bonds
shall be terminated by the Ministry of Finance.

Where any institution withdraws from a government bond underwriting syndicate, it shall return its qualification certificate.

Where any institution withdraws from a government bond underwriting syndicate, it shall not apply for participating in a government
bond underwriting syndicate within 2 years as of the withdrawal.

Article 27

When the number of members of a government bond underwriting syndicate is no more than that as prescribed in Article 8 of the present
Measures, the Ministry of Finance may, jointly with the People’s Bank of China and CSRC, make a decision on adding the members of
the government bond underwriting syndicate as required in the issuance of government bonds, and shall promulgate the said decision
to the general public timely.

Article 28

The application, examination and approval of the membership of the government bond underwriting syndicate shall be implemented as
prescribed in Chapter III of the present Measures when adding a member of a government bond underwriting syndicate.

Chapter V Rights of Members of Government Bond Underwriting Syndicates

Article 29

A member of a government bond underwriting syndicate shall have the basic rights as follows:

(1)

Negotiating with the Ministry of Finance on the terms and contents of the primary agreement on the underwriting of government bonds;

(2)

Bringing forward suggestions and advice on the issuance form and management measures for the government bonds;

(3)

Participating in the issuance of government bonds, and directly underwriting government bonds from the Ministry of Finance;

(4)

Obtaining commissions from the government bonds subject to the document on the issuance government bonds;

(5)

Obtaining timely the information on the issuance of government bonds by the prescribed channels;

(6)

Participating in the pilot innovation of government bonds; and

(7)

Taking the priority to participate in the inspection and training of government bond business.

Article 30

A member of the certificate bond underwriting syndicate shall have the rights as follows:

(1)

The rights as specified in Article 29 of the present Measures;

(2)

Participating in the meeting on the analysis of financing of certificate government bonds;

(3)

Taking the priority to obtain the membership of the book-entry bond underwriting syndicate.

Article 31

A Class B member of the book-entry bond underwriting syndicate shall have the rights as follows:

(1)

The rights as prescribed in Article 29 of the present Measures; and

(2)

Participating in the process of issuance and competitive pricing of the book-entry bonds.

Article 32

A Class A member of the book-entry bond underwriting syndicate shall have the following rights:

(1)

The rights as specified in Article 31 of the present Measures;

(2)

Participating in the quarterly meeting on the analysis of financing of the book-entry government bonds; and

(3)

Underwriting additional government bonds within the range as described for the amount of the successful bid for the government bonds
of the current period of this institution.

Chapter VI Obligations for Members of Government Bond Underwriting Syndicates

Article 33

A member of a government bond underwriting syndicate shall perform the basic obligations as follows:

(1)

Participating in the activities of issuance of government bonds continuously, and making payments in full amount to the Ministry of
Finance for the issuance of government bonds timely.

(2)

Publicizing and distributing the government bonds properly and safeguarding the credit standing of government bonds;

(3)

Submitting the information on the issuance and sale of government bonds periodically;

(4)

Paying attention in the work of redemption of government bonds in order to ensure that the investors can receive the repayments for
the principal of the government bonds, and the interests thereof in a timely manner; and

(5)

Observing the laws, regulations of the state as well as the industrial self-discipline norms, accepting the surveillance and inspection
by the government bond supervisory departments, and submitting the information on the severe violation committed by this institution
or the bad financial status of this institution timely.

Article 34

A member of the certificate bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as specified in Article 33 of the present Measures;

(2)

The certificate bonds of each period shall be underwritten at the minimum or higher proportion as prescribed by the Ministry of Finance
and the People’s Bank of China. The specific underwriting proportions for different institutions shall be studied and determined
by the Ministry of Finance and the People’s Bank of China subject to the voluntary applications of the members of certificate bond
underwriting syndicate, the type of the institution, the balance and increase of savings deposits, and the number of business organs
of the institutions as well. Once the minimum underwriting rate is decided, it will be remained for 3 years in principle. It may
be adjusted upon approval of the Ministry of Finance and the People’s Bank of China upon special circumstances;

(3)

Performing the promotion and propaganda for the issuance of government bonds, publicizing the address and contact telephone number
of the organs for the sale of government bonds, setting up obvious marks for the sale of government bonds, preparing publicity materials
and equip on-spot consultants in the sale organs;

(4)

Establishing a credit trust system controlled uniformly by legal person and a uniform network for the sale of government bonds, realizing
that the government bonds may be bought and accepted in this institution and in any of its branches and that the sale amounts are
adjusted automatically; and

(5)

Establishing inner rewards and punishment system for the sale of government bonds.

Article 35

A class B member of the book-entry bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as described in Article 33 of the present Measures;

(2)

Opening a communication line which is exclusively linked to the book-entry bond bid system;

(3)

Participating in the bids of book-entry bonds continuously, making rational bids within the a reasonable price band and maintaining
the regular order of issuance of government bonds;

(4)

Any bid for the government bonds shall not be made between members of a government bond underwriting syndicate. Credits of self-operating
government bonds shall be registered in the self-operating account. Credits of self-operating government bonds on a commissioned
basis shall be registered in the client account.

(5)

Participating in the bid and underwriting of government bonds of each period within the range as described in the primary agreement
on the underwriting of government bonds; and

(6)

Participating in the government bond transactions actively and safeguarding the regular order of the government bond market.

Article 36

A Class A member of a book-entry government bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as specified in Article 35 of the present Measures; and

(2)

Submitting reports on the analysis of operation of government bond market quarterly, and bringing forward suggestions on the improvement
of issuance of government bonds and the development of government bond market.

Chapter VII Surveillance, Inspection and Punishment

Article 37

The Ministry of Finance shall, jointly with the People’s Bank of China and the CSRC, take charge of the supervision and inspection
on the applications for the membership of government bond underwriting syndicates, and other relevant activities regarding the government
bond business carried out by members of government bond underwriting syndicates.

Article 38

If any applicant applies for the membership of government bond underwriting syndicate by concealing the relevant information or by
submitting false materials, its membership of government bond underwriting syndicate shall be rejected or disapproved by the Ministry
of Finance, the People’s Bank of China and the CSRC, and a warning will be delivered.

Article 39

If any member of a government bond underwriting syndicate obtains the membership of a government bond underwriting syndicate by means
of cheating, bribery or any other illegal means, its membership shall be revoked by the Ministry of Finance, the People’s Bank of
China and the CSRC, and an administrative sanction shall be delivered subject to relevant laws.

Article 40

When any member of the government bond underwriting syndicate fails to perform the obligations as described in the present Measures
and the circumstances are not serious, it shall be ordered by the Ministry of Finance, the People’s Bank of China and the CSRC to
make a correction within a time limit.

Article 41

If a member of a government bond underwriting syndicate commits any of the circumstances referred to in Article 25 of the present
Measures, the Ministry of Finance shall, jointly with the People’s Bank of China and/or CSRC, inform it to withdraw from the government
bond underwriting syndicate in accordance with the stipulations in the primary agreement on the underwriting of government bonds.

Chapter VIII Supplementary Provisions

Article 42

The National Council for Social Security Fund and China Postal Savings and Remittance Bureau may apply for being special members
of the book-entry bond underwriting syndicate, while such members are not allowed to engage in distributing government bonds.

Article 43

When the Ministry of Finance on behalf of the Central Government issues other government bonds that are mainly geared to individuals
in underwriting form, the measures for the examination and approval of members of the government bond underwriting syndicate shall
be dealt with reference to the procedures in the present Measures for the examination and approval of members of the certificate
bond underwriting syndicate.

Article 44

The present Measures shall enter into force as of the date of promulgation. The Measures for the Administration of the People’s Republic
of China for the Primary Self-operating Underwriters of Government Bonds (Cai Guo Zhai Zi [1993] No. 100) and the Measures for the
Implementation for the Examination and Confirmation of the Qualifications for the Primary Self-operating Underwriters of Government
Bonds (Cai Guo Zhai Zi [1993] No. 100) promulgated by the Ministry of Finance, People’s Bank of China and the CSRC on December 31,
1993 shall be annulled as of the same date.



 
The Ministry of Finance￿￿People’s Bank of China￿￿China Securities Regulatory Commission
2006-07-04

 






REGULATIONS FOR THE SUPERVISION AND ADMINISTRATION OVER COTTON QUALITY

Regulations for the Supervision and Administration over Cotton Quality

July 4, 2006

(Promulgated by Order No. 314 of the State Council of the People’s Republic of China on August 3, 2001, and amended in light of the
Decision of the State Council on Amending the Regulations on the Supervision and Administration over Cotton Quality promulgated on
July 4, 2006)

Chapter I General Provisions

Article 1

With a view to strengthening the supervision and administration over cotton quality, maintaining the order of cotton market, and
protecting the lawful rights and interests of each party to cotton trading, the present Regulations are formulated.

Article 2

When cotton business operators (including cotton purchasers, processors, sellers and storage undertakers, the same hereafter) engage
in cotton business activities, the undertaking of supervision and administration over cotton quality by cotton quality supervision
institutions shall accord with the present Regulations.

Article 3

When a cotton business operator intends to engage in cotton processing business, it shall obtain its qualification certification
according to the relevant provisions of the state.

The cotton business operator shall establish an internal cotton quality management rules and improve them, strictly carry out position-based
quality norms, quality responsibilities and corresponding assessment measures.

Article 4

The competent department of quality supervision, inspection and quarantine of the State Council shall be responsible for the national
cotton quality supervision work, and its subordinate China Fiber Inspection Institute shall take charge of organizing and implementing
such work.

The quality supervision department of the people’s government of a province, autonomous region, or municipality directly under the
Central Government shall be responsible for the cotton quality supervision work within its own jurisdiction. At a place where a professional
fiber inspection institution is set up, the professional fiber inspection institution shall undertake supervision over cotton quality
within its jurisdictional division; at a place where no professional fiber inspection institution is set up, the quality supervision
department shall undertake supervision over cotton quality within its jurisdictional division (when a professional fiber inspection
institution and a local quality supervision department are coordinately used, they shall be uniformly referred to as cotton quality
supervision institutions).

Article 5

The local people’s governments at each level and the functionaries thereof may not enshield or connive the illegal acts related to
cotton quality within their respective regions, or obstruct or interfere with the cotton quality supervision institution’s lawful
investigation and shall punish the violations of the present Regulations in cotton purchase, processing, sale or storage undertaking.

Article 6

Any entity or individual shall have the right to impeach any illegal act concerning cotton quality.

Chapter II Obligations Concerning Cotton Quality

Article 7

Cotton business operators shall, when intending to purchase cotton, establish and perfect the quality inspection and acceptance rules
for the purchase of cotton, and shall have the physical standards for cotton grades and the indispensable equipment and instruments
for cotton quality inspection.

Cotton business operators shall, when purchasing cotton, determine the category, grade and quantity of the cotton purchased in light
of the national standards and technical norms after excluding the foreign fibers and other noxious materials; if the purchased cotton
goes beyond the national moisture standard, it shall be subject to technical treatment such as airing in the sun or drying with machine
and etc., so as to guarantee the cotton quality.

Cotton business operators shall place purchased cotton by category or by grade.

Article 8

Cotton business operators shall, when processing cotton, satisfy the following requirements:

(1)

It shall, in light of national standards, select and exclude the foreign fibers and other noxious substances in the cotton for processing;

(2)

It shall, in light of national standards, grade and process cotton, pack the processed cotton and attach marks compatible to the cotton
quality;

(3)

It shall, in light of national standards, pack the processed cotton and place it in batches.

Cotton business operators may not process cotton by using leather rollers, cotton ginning machine, packaging machine or other cotton
processing equipment, which are prohibited by the state through public proclamation.

Article 9

Cotton business operators shall, when selling cotton, satisfy the following requirements:

(1)

Each batch of cotton shall be attached with a quality voucher;

(2)

The cotton packages or marks shall meet national standards;

(3)

The category, grade and weight of the cotton shall be consistent with the quality voucher or mark; and

(4)

The cotton having passed the notarization inspection shall be attached with an accredited inspection certificate, or shall, if it
is state-reserved cotton, be affixed with an accredited inspection mark.

Article 10

Cotton business operators shall, when undertaking storage of state-reserved cotton, establish and perfect quality inspection and
acceptance rules on the entry of cotton into or exit from warehouse, and guarantee that the category, grade and quantity of the state-reserved
cotton entering into or exiting from the warehouse are consistent with the accredited inspection certificate and the accredited inspection
mark.

Cotton business operators shall, when undertaking storage of state-reserved cotton, maintain and repair the undertaking facilities
according to the relevant provisions of the state, so that the quality of the state-reserved cotton can be guaranteed to exempt from
any quality variance caused by human elements.

Cotton business operators may not put any cotton without passing accredited quality inspection into the warehouse as state-reserved
cotton or take it out of the warehouse as state-reserved cotton.

Government authorities or the functionaries thereof may not compel any cotton business operator to put any cotton without passing
accredited quality inspection into the warehouse as state-reserved cotton or take it out of the warehouse as state-reserved cotton.

Article 11

Cotton business operators may not, when purchasing, processing, selling or undertaking storage of cotton, forge, alter or pretend
to use any cotton quality voucher or mark, or any accredited inspection certificate or accredited inspection mark.

Article 12

Cotton business operators shall be strictly prohibited from, during their business activities such as purchase, processing, sale
or storage undertaking of cotton, adulterating any cotton, substituting any qualified cotton with inferior one or using any fake
cotton as genuine one.

Chapter III Cotton Quality Supervision

Article 13

The state shall adopt the accredited cotton quality inspection system.

The term “accredited cotton quality inspection” as mentioned in the preceding paragraph shall refer to the activities through which
a professional fiber inspection institution inspects the quality and quantity of cotton in light of national standards and technical
norms, and issues an accredited inspection certificate.

Article 14

Cotton business operators that sell cotton to cotton consuming enterprises may, before either party to the transaction makes cotton
transaction settlement, entrust a professional fiber inspection institution to make an accredited inspection of the cotton in bargain.
After the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which may be used as the basis of the cotton quality or quantity.

Article 15

The entry of state-reserved cotton into or the exit thereof from the warehouse shall be subject to accredited cotton quality inspection;
upon the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which shall be used as the basis for the state treasury to pay the expenses needed in storing the state-reserved cotton.

The state-reserved cotton having passed the accredited inspection shall be affixed by the professional fiber inspection institution
with an accredited inspection mark that is unanimously prescribed by the China Fiber Inspection Institute.

Article 16

The professional fiber inspection institution shall, when undertaking an accredited cotton quality inspection, implement the national
standards as well as its inspection methods, technical norms and time requirements, so as to guarantee the inspection to be objective,
impartial and timely. The accredited cotton quality inspection certificate issued by the professional fiber inspection institution
shall reflect the quality and quantity of the cotton truthfully and objectively.

The content of the accredited cotton quality inspection certificate shall contain the product name, the (entrusting) entity under
inspection, the batch number, the number of packages, the inspection basis, the inspection result, the inspecting entity, the inspectors
and etc.

The format of the accredited cotton quality inspection certificate shall be prescribed by the department for quality supervision,
inspection and quarantine of the State Council.

Article 17

The professional fiber inspection institution may not charge any fee when making an accredited cotton quality inspection, and the
expenses needed in the inspection shall be listed as expenditures in accordance with the related provisions of the state.

Article 18

The department for quality supervision, inspection and quarantine of the State Council shall, throughout China, arrange for the sample
supervisory inspection on the cotton having passed accredited cotton quality inspection, and the quality supervision department of
the people’s government of a province, autonomous region, or municipality directly under the Central Government shall arrange for
the sample supervisory inspection on the cotton having passed accredited cotton quality inspection within its respective jurisdiction.

The content of a sample supervisory inspection shall be: whether the accredited cotton quality inspection certificate and the accredited
inspection mark are consistent with the physical product or not; and whether the accredited cotton quality inspection made by the
professional fiber inspection institution is objective, impartial and timely or not.

The samples needed in a sample supervisory inspection shall be drawn from the reserved samples have passing the accredited inspection
at random, and an inspection conclusion shall be made within 10 days as of the day when the sample is drawn.

Article 19

The cotton quality supervision institution may, with regard to the cotton beyond the accredited cotton quality inspection, undertake
supervisory inspection of cotton purchase, processing, sale or storage undertaking on the spot.

The content of a supervisory inspection shall be: whether the quality, quantity and package of the cotton meet the national standards
or not; and whether the mark and quality voucher of the cotton accord with the physical product or not.

Article 20

The cotton quality supervision institution may, during the process of cotton quality supervisory inspection, exercise the following
powers, when investigating an act suspected to violate the present Regulations on the basis of the evidence or tip-off on any suspected
illegal act:

(1)

making an on-site inspection on the place where any business activity suspected to violate the present Regulations is conducted;

(2)

investigating the related persons of the cotton business entity to obtain information about the business activity suspected to violate
the present Regulations;

(3)

consulting and photocopying the contracts, documents, account books and other materials on the cotton business operation; and

(4)

sealing up or distraining the suspected adulterated cotton, inferior cotton used to substitute qualified one, fake cotton used as
genuine one, or any other cotton with serious quality problems, and the equipment and instruments specially used to produce the aforesaid
cotton.

Article 21

When required by a supervisory inspection, the cotton quality supervision institution may inspect the cotton quality. The samples
needed in the inspection shall be randomly drawn from the purchased, processed, for-sale or reserved cotton in light of the related
national standards. And an inspection conclusion shall be made within 3 days as of the drawing of sample for inspection.

No fee may be charged for the inspection in accordance with the preceding paragraph, and the necessary inspection expenses shall be
listed as expenditures in accordance with the related provisions of the state.

Article 22

Where a cotton business operator or a cotton consuming enterprise has any objection to the result of an accredited cotton quality
inspection or a cotton quality supervisory inspection made according to the present Regulations, it may, within 5 days as of receipt
of the inspection result, apply to the cotton quality supervision institution of the province, autonomous region, or municipality
directly under the Central Government or China Fiber Inspection Institute for re-inspection, which shall, within 7 days as of receiving
the application, make a re-inspection conclusion and notify the applicant. If the cotton business operator or the cotton consuming
enterprise still has any objection to the re-inspection conclusion, it may bring a lawsuit to the people’s court under law.

Article 23

Other fiber inspection institutions recognized by the department for quality supervision, inspection and quarantine of the State
Council may be entrusted to conduct cotton quality inspection. The specific measures shall be formulated by the department for quality
supervision, inspection and quarantine of the State Council in conjunction with other related departments of the State Council.

Chapter IV Penalty Provisions

Article 24

Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article 7 of the present Regulations by failing
to meet the national standards or technical norms to exclude foreign fibers and other noxious substances before determining the category,
grade and quantity of the purchased cotton, or by failing to conduct technical treatment on the purchased cotton which goes beyond
the national moisture standard, or by failing to classify and grade the purchased cotton for placement, it shall be ordered by the
cotton quality supervision institution to make corrections, and imposed upon a fine up to RMB 30,000 Yuan.

Article 25

Where a cotton business operator, when processing cotton, violates Paragraph 1 of Article 8 of the present Regulations by failing
to meet the national standards to select and exclude foreign fibers and other noxious substances, or by failing to meet the national
standards to process the cotton by grade, to pack and mark the cotton, or by failing to meet the national standards to place the
cotton by batches, it shall be ordered by the cotton quality supervision institution to make corrections, and may, in light of the
severity of the circumstance, be imposed upon a fine of RMB100,000 Yuan. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Where a cotton business operator, when processing cotton, violates Paragraph 2 of Article 8 of the present Regulations by using any
cotton processing equipment of express prohibition of the state, the aforesaid prohibited cotton processing equipment shall be confiscated
by the cotton quality supervision institution and be destroyed under supervision thereof, and the operator shall be imposed upon
a fine twice up to ten times of the actual value of the illegal equipment. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Article 26

Where a cotton business operator, when selling cotton, violates Article 9 of the present Regulations due to the fact that the for-sale
cotton has no quality voucher or no package or mark meeting the national standards, the quality voucher or the mark does not accord
with the physical product, the cotton having passed the accredited inspection has no accredited inspection certificate or the state-reserved
cotton is not affixed with an accredited inspection mark, it shall be ordered by the cotton quality supervision institution to make
corrections, and may, in light of the severity of the circumstance, be imposed upon a fine up to RMB 100,000 Yuan.

Article 27

Where a cotton business operator, when undertaking the storage of state-reserved cotton, violates Paragraph 1, 2 or 3 of Article
10 of the present Regulations by failing to establish quality inspection and acceptance rules for entry of cotton into or exit thereof
from the warehouse, or due to the fact that its physical state-reserved cotton entering into or exiting from the warehouse is inconsistent
with the accredited inspection certificate or mark, or that it fails to comply with the provisions of the state to maintain or repair
the storage undertaking facilities and thus results in variance of the quality of the state-reserved cotton, or that it uses any
cotton having not passed the accredited inspection as state-reserved cotton for entry into or exit from the warehouse, it shall be
ordered by the cotton quality supervision institution to make corrections, and may be imposed upon a fine up to RMB 100,000 Yuan;
if any heavy loss is caused, the person-in-charge and other persons directly liable shall be demoted or be given a severer disciplinary
sanction; if any crime is constituted, he shall undertake criminal liabilities under law.

Article 28

Where a cotton business operator conceals, transfers or damages any article sealed up or sequestered by the cotton quality supervision
institution, it shall be fined by the cotton quality supervision institution twice up to five times of the value of the concealed,
transferred or damaged cotton; if any crime is constituted, he shall be subject to criminal liabilities under law.

Article 29

Where a cotton business operator violates Article 11 of the present Regulations by forging, altering or imitating any cotton quality
voucher or mark, any accredited inspection certificate or any accredited inspection mark, it shall be fined by the cotton quality
supervision institution at the amount of RMB 50,000 Yuan up to RMB 100,000 Yuan. If the circumstances are serious, the case shall
be transferred to the administrative department for industry and commerce for revocation of its business license; if any crime is
constituted, he shall be subject to criminal liabilities under law.

Article 30

Where a cotton business operator, when undertaking cotton business activities, violates Article 12 of the present Regulations by
adulterating cotton, substituting any qualified cotton with inferior one or using any fake cotton as genuine one, if any crime is
constituted, he shall be subject to criminal liabilities under law; if no crime is constituted, the adulterated cotton, the inferior
cotton used to substitute the qualified one, or the fake cotton used as genuine one and the illegal proceeds shall be confiscated
by the cotton quality supervision institution, a fine twice up to five times of the value of the illegal cotton shall be imposed
upon, and the case shall be transferred to the administrative department for industry and commerce for revocation of the business
license under law.

Article 31

Where a professional fiber inspection institution violates Article 16 of the present Regulation by refusing to execute the national
standards or its inspection methods, technical norms or time requirements, or by issuing an untrue accredited cotton quality inspection
certificate, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State
Council or the local quality supervision administrative department to make corrections; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post under law.

Article 32

Where a professional fiber inspection institution violates Article 17 of the present Regulations by charging any fee for accredited
inspection, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State Council
or the local quality supervision administrative department to refund the charged fee; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of heavy demerit record or demotion under law.

Article 33

In case a professional fiber inspection institution practices fraud by way of fabricating or issuing an accredited inspection certificate
or by affixing any accredited inspection mark before making an accredited inspection, its responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post by the administrative
department of quality supervision, inspection and quarantine of the State Council or the local quality supervision administrative
department under law. If any crime is constituted, he shall be subject to criminal liabilities under law.

Article 34

Where a governmental office or any of its functionaries violates Paragraph 4 of Article 10 of the present Regulations by compelling
any cotton business operator to put any cotton having failed the accredited quality inspection into or take it out of the warehouse
as state-reserved cotton, the responsible person-in-charge and other persons directly liable shall be imposed upon the administrative
sanction of demotion or removal from post under law.

Article 35

Where a governmental office or any of its functionaries covers up or connives any local illegal act related to cotton quality, or
obstructs or interferes with any cotton quality supervision institution from investigating under law the acts in violation of the
present Regulations, it/he shall be imposed upon the administrative sanction of demotion or removal from post under law. If any crime
is constituted, it/he shall be subject to criminal liabilities under law.

Article 36

The value of cotton as prescribed in Article 28 and Article 30 of the present Regulations shall be computed at the listed price
of the illegally purchased, processed or sold cotton or on the basis of the settlement note; if there is no such listed price or
settlement note, the value shall be computed at the market price of the cotton of the same category.

Article 37

As to the administrative penalty of fine given according to the present Regulations, the decision on the fine shall be separated
from the collection thereof according to the related laws and administrative regulations, and the collected fines shall be fully
turned in to the state treasury.

Chapter V Supplementary Provisions

Article 38

The supervision and administration on the qualities of wool, fine hair, cocoon silk and hemp fibers shall be conducted by referring
to the present Regulations.

Article 39

The present Regulations shall enter into effect as of the date of the promulgation thereof.



 
The State Council
2006-07-04

 






ANNOUNCEMENT NO.38, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE NATIONAL DEVELOPMENT AND REFORM COMMISSION, THE MINISTRY OF FINANCE, THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA (ON PUTTING OFF THE IMPLEMENTATION OF THE DEFINITION STANDARD FOR IMPORT PRICE PERCENTAGE CONCERNING FEATURES OF WHOLE VEHICLES AND DISTINGUISHING STANDARD FOR CATEGORY A AND B KEY PARTS CONCERNING FEATURES OF VEHICLE SYSTEM)

Announcement No.38, 2006 of the General Administration of Customs, the National Development and Reform Commission, the Ministry of
Finance, the Ministry of Commerce of the People’s Republic of China (on Putting off the Implementation of the Definition Standard
for Import Price Percentage concerning Features of Whole Vehicles and Distinguishing Standard for Category A and B Key Parts concerning
Features of Vehicle System)

No.38 [2006]

Administrative Measures on Import of Vehicle Parts with Features of Whole Vehicles publicized the definition standard of imported
vehicle parts with features of whole vehicles and those of vehicle system.

The definition standard for import price percentage concerning features of whole vehicles and distinguishing standard for Category
A and B key parts concerning features of vehicle system, which shall be put into effect as from July 1, 2006, are postponed to July
1, 2008.

General Administration of Customs

July 5, 2006



 
General Administration of Customs
2006-07-05

 






CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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