|
Decree of the Ministry of Finance
No.41
Under the provisions of the Reply of the State Council concerning the General Rules on Enterprise Finance and Enterprise Accounting
Standards (Guo Han [1992] No.178), the Ministry of Finance amended the General Rules on Enterprise Finance (Dcree No.4 of the Ministry
of Finance). The amended General Rules on Enterprise Finance have been deliberated and adopted by the ministerial meeting. They are
hereby promulgated and shall enter into force as of January 1, 2007.
The Ministry of Finance
December 4, 2006
General Rules on Enterprise Finance
Chapter I General Provisions
Article 1
With a view to strengthening the financial management of enterprises, regulating the financial behaviors of the enterprises, protecting
the legitimate rights and interests of the enterprises and related parties and boosting the establishment of modern enterprise system,
the present General Rules are formulated under the provisions of the related laws and administrative regulations.
Article 2
Except for financial enterprises, the state-owned enterprises and state holding enterprises set up within the territory of the People’s
Republic of China under law shall be governed by the present General Rules.
Other enterprises shall implement the present General Rules by reference.
Article 3
The state-owned enterprises and state holding enterprises (hereinafter referred to as enterprises) shall determine their internal
financial management systems, set up and perfect their financial management systems and control their financial risks.
The financial management of an enterprise shall consist such financial behaviors as raising funds rationally, operating assets effectively,
controlling the cost, regulating the income distribution and reorganization and liquidation, and strengthening financial supervision
and financial information management in accordance with the formulated financial strategy.
Article 4
The Ministry of Finance shall be responsible for instituting the rules and regulations on enterprise finance.
The financial departments of all levels (hereinafter referred to as competent authorities of finance collectively) shall enhance guiding,
managing and supervising enterprise finance, their principle duties are as follows:
(1)
supervising the implementation of the rules and regulations concerning enterprise finance, directing the enterprises to set up and
perfect the internal financial systems in accordance with the financial relations;
(2)
instituting the financial policies that facilitate the reform and development of the enterprises, setting up and perfecting the financial
fund management systems that conduce to the development of the enterprises;
(3)
setting up and perfecting the enterprise auditing system of annual financial report so as to examine the quality of the annual financial
report;
(4)
assessing enterprise finance, monitoring the operation status of enterprise finance;
(5)
researching and drafting the systems on the distribution of state-owned capital gains and the operation budget of state-owned capital;
(6)
taking part in the examination and approval of the important reform and restructuring schemes of the enterprises invested by the people’s
governments or the related departments and organs of the same level; and
(7)
offering necessary assistance and services in accordance with the demands of enterprise financial management.
Article 5
Such enterprise investors as the people’s governments of all levels and their departments and organs, enterprise legal persons, other
organizations or individuals (hereinafter referred to as investors collectively), enterprise managers, factory managers, or other
leaders actually in charge of the operation and management of the enterprises (hereinafter referred to as operators collectively)
shall fulfill the duties of enterprise internal financial management under the laws, regulations, the present General Rules and enterprise
constitutions.
Article 6
An enterprise shall pay taxes under law. In case the financial treatment of the enterprise does not accord with any provision of
any law or administrative regulation on taxation, it shall be adjusted under law in paying taxes.
Article 7
With regard to an enterprise invested by the people’s government or any of its departments and organs, its financial relationship
shall be affiliated to the financial organ of the same level.
Chapter II Enterprise Financial Management System
Article 8
An enterprise shall perform such a financial management system as being clear in capital ownership, unambiguous in financial relationship
and complying with the requirements of corporate governance structure.
An enterprise shall set up effective management grades of internal financial. An enterprise group company may determine its internal
financial management system by itself.
Article 9
An enterprise shall set up a decision-making system of finance and clarify the decision-making rules, procedures, power limits and
liabilities and so on. In case any law or administrative regulation stipulates that certain financial items shall be determined after
being deliberated by the workers’ (or worker representatives’) congress or by soliciting the opinions of the workers and the related
organizations, such provisions shall prevail.
An enterprise shall set up a withdrawal system for financial decision-making. With respect to the financial decision-making items
under which the interests of any individual investor or operator run afoul of those of the enterprise, the related investor or operator
shall withdraw.
Article 10
An enterprise shall set up a financial risk control system, specify the management rights and liabilities of the operators, investors
and other related personnel, and control the financial risks according to the principles of equilibrating risks and proceeds and
separating the incompatible duties.
Article 11
An enterprise shall set up a budget management system of finance to implement all-around budgetary management on financial activities
such as fund-raising, assets operation, cost control, income distribution, reorganization and settlement and so on, by taking cash
flow as the core and according to the requirements of financial objectives such as maximizing the enterprise value.
Article 12
The financial management duties of an investor mainly involve:
(1)
examining and approving the internal financial management system, financial strategy, financial plan and financial budget of the enterprise;
(2)
determining material financial items such as fund-raising, investment, guarantee, donation, reorganization, remuneration for operators
and income distribution and so on;
(3)
determining the hiring or firing of intermediary organs such as accounting firms or property assessment institutions and so on;
(4)
supervising and assessing the financial affairs of the operators; and
(5)
dispatching or recommending chief financial officers to exclusively-funded or holding enterprises under the related provisions.
An investor shall fulfill the financial management duties through the shareholders’ meeting, board of directors or other internal
institutions, and may grant conferring part of financial management duties to the operators in manner of articles of association,
internal systems or contractual stipulations and so on.
Article 13
The financial management duties of an operator mainly involve:
(1)
studying out enterprise internal financial management rules, financial strategies, financial plans, preparing financial budgets;
(2)
organizing the implementation of such financial schemes as fund-raising, investment, guarantee, donation, reorganization and profit
distribution and so on, fulfilling the obligation of debt repayment of the enterprise faithfully;
(3)
carrying out the provisions of the state on employees’ remunerations and labor protection, paying social insurance premium and public
accumulation funds for housing construction and so on, under law, and safeguarding the workers’ legitimate rights and interests;
(4)
organizing financial forecasting and financial analysis, carrying out financial control;
(5)
preparing and providing enterprise financial report so as to reflect the financial information and the related situation faithfully
; and
(6)
coordinating with the related organs in carrying out such work as auditing, evaluation and financial supervision and so on.
Chapter III Fund Raising
Article 14
An enterprise may accept the capital contribution made by an investor in the form of monetary, real object, intangible assets, stock
equity, or specific creditor’s right and so on, among which, the specific creditor’s right means the convertible bonds issued by
the enterprise under law and the creditor’s rights that are converted into equity under the related provisions.
In case an enterprise accepts the capital contribution of an investor in the form of non-monetary assets, if there is any stipulation
on the form, procedure or price assessment of capital contribution in any law or administrative regulation, this stipulation shall
apply.
In case an enterprise accepts the capital contribution by an investor in the form of intangible assets such as trademark right, copyright,
patent right or other know-how, it shall comply with the related proportions as prescribed in any law or administrative regulation.
Article 15
In case an enterprise raises funds through absorbing direct investment or issuing shares, etc. under law, it shall draw out a fund-raising
scheme, decide the fund-raising scale, fulfill the internal decision-making procedure and necessary formalities of reporting for
examination and approval and control the cost of fund-raising.
An enterprise shall trust, under law, a legal capital verification institution to verify the raised capital and issue a report on
capital verification.
Article 16
An enterprise shall carry out the related capital management systems of the state and, within 30 days as of approval of industrial
and commercial registration, issue investment certificates to its investors in accordance with the capital verification report so
as to determine the lawful rights and interests of the investors.
With regard to the paid-in capital raised by the enterprise, during its persistent operation, the investors may transfer or reduce
the capital under the related laws, administrative regulations and articles of association of the enterprise, but may not withdraw
the capital contribution directly or in any disguised form.
Except it is otherwise prescribed in the Company Law of the People’s Republic of China or any other related law or administrative
regulation, no enterprise may repurchase the shares it has issued. An enterprise’s repurchase of the shares under law shall comply
with the related conditions and financial treatment measures and be determined by the investors.
Article 17
In case capital actually paid by the investors exceeds the registered capital (including stock premiums), an enterprise shall manage
the surplus as capital reserve.
After being deliberated and determined by the investors, the capital reserves may be converted into capital. In case it is provisioned
otherwise by the state, the related provisions shall apply.
Article 18
The surplus reserves that are withdrawn by an enterprise from its after-tax profits include legal and discretional accumulation funds,
and may be used to make up the losses of the enterprise or converted into increased capital. The part retained in the enterprise
out of the legal accumulation funds after converting into increased capital shall not be less than 25% of the registered capital
before the conversion.
Article 19
In case an enterprise enhances the paid-in capital or converts the reversed capital or surplus reserves into paid-in capital, the
investors shall go through the related financial items and industrial and commercial registration of alteration after fulfilling
the financial decision-making procedures.
Article 20
The various kinds of financial funds obtained by an enterprise shall be dealt with according to the different circumstances as follows:
(1)
where the fund is directly invested or injected by the state, the national capital or state-owned capital reserve shall be increased
under the related provisions of the state.
(2)
where the fund is an investment subsidy, the capital reserve or the paid-in capital shall be increased. If the state has provisioned
its ownership when appropriating the fund, the related provisions shall apply; otherwise, this fund shall be shared by all investors
commonly.
(3)
where the fund is a loan of discounted interest or a special subsidy, it shall be dealt with as an income of the enterprise.
(4)
where the fund is a reloan of the government or a refundable subsidy, it shall be dealt with as a liability of the enterprise.
(5)
where the fund is for making up loss, relieving loss or other purposes, it shall be dealt with as an income of the enterprise.
Article 21
In case an enterprise raises debt funds under law in forms of loans, issuing bonds or financial leases and so on, it shall define
the purpose of fund-raising, make necessary decisions on capital structure in accordance with the fund costs, debt risks and reasonable
fund demands and conclude a written contract.
In case an enterprise raises funds for a fixed asset investment project, it shall comply with the industrial policies of the state,
the provisions concerning industrial planning and proportion of self-owned capital and other stipulations.
When raising fund, an enterprise shall assess and use the fund under the related provisions, undertake the contract in good faith
and accept supervision under law.
Chapter IV Assets Operation
Article 22
An enterprise shall determine a reasonable assets structure and conduct a dynamic management on the assets structure according to
the principles of equilibrating risks and proceeds and the operational requirements.
Article 23
An enterprise shall set up an internal fund allocation control system, clarify the conditions, power limits and procedures of fund
allocation to raise, use and manage funds uniformly. When conducting the payment or allocation of funds, an enterprise shall, under
the stipulations of its internal financial management system, go through the related formalities upon the strength of the effective
contracts and legal vouchers.
With regard to overseas payment or allocation of funds, the related provisions of the state on foreign exchange control shall be applicable.
An enterprise group may adopt a concentrated and unified management on its internal funds, but shall comply with the related provisions
on financial management of the related laws and administrative regulations of the state, and may not injure the interests of its
member enterprises.
Article 24
An enterprise shall set up a financial examination system on contract and clarify the operational flow and power limits of examination
so as to carry out financial supervision.
An enterprise shall enhance the management of the receivables, evaluate the credit risks of the clients, track the clients’ performance
of contract, determine and perform the responsibility of receivables collection and cut down the loss from doubtful accounts.
Article 25
An enterprise shall set up and perfect the inventory management system, standardize the procedures of examination and approval and
execution of inventory purchase, and pay the price of goods under the contract and the internal examination system.
An enterprise may select suppliers or carry out bulk purchase in a tender offerings manner.
Article 26
An enterprise shall set up a system on the purchase and construction, use and treatment of fixed assets.
An enterprise, when selects and determines the method for the depreciation of fixed assets by itself, may consult an intermediary
organ or related experts, and the method shall be discussed and approved by the investors. The method for the depreciation of fixed
assets, in case it is selected and determined, may not be altered at discretion. Where it is really necessary to make change, the
reasons shall be stated and the decision on its change shall be deliberated and approved by the investors.
An enterprise shall, when purchases or constructs fixed assets or makes materially technical renovations, conduct a study of feasibility,
go through the financial decision-making procedures under the internal examination rules, and determine and implement the responsibilities
for decision-making and implementation.
After a project under construction is delivered for use, an enterprise shall perform the final accounts of the completed project within
one year.
Article 27
An enterprise shall, when making an overseas investment, conform to the provisions of the related laws, administrative regulations
and policies of the state, comply with the requirements of the development strategy of the enterprise, carry out a feasibility study,
perform the approval procedures under the internal examination and approval rules, and determine and implement the responsibilities
for decision-making and implementation.
As for an overseas investment, an enterprise shall conclude a contract thereon in written form so as to clarify the rights and interests
it may enjoy from this investment and to carry out financial supervision. The investment money as stipulated in the contract shall
be paid under the internal examination and approval rules of the enterprise.
When making an overseas investment, an enterprise shall acquire the approval of the investors and comply with the related provisions
of the state on the examination and approval of overseas investment projects and foreign exchange control.
Article 28
With regard to the intangible assets gained by an enterprise by means of self-creation, purchase or the investment acceptance and
so on, the ownership shall be defined under law and the related financial responsibilities for operation and management thereof shall
be determined and implemented.
In case any intangible asset is transferred, leased, pledged, authorized for operation or chained operation, or overseas investment
or in any other circumstance, the enterprise shall conclude a contract in written form to clarify the rights and obligations of both
parties and determine the trading price reasonably.
Article 29
When provides guarantee to the outsiders, an enterprise shall comply with the laws, administrative regulations and the related provisions,
take corresponding risk control measures according to the internal examination and approval rules and with a view to the solvency
capacity of the guaranteed entity, make registration for it in the accounting book for future reference and carry out follow-up supervision.
When makes a donation, an enterprise shall conform to the related laws, administrative regulations and provisions on financial affairs,
set down an executive plan, define the scope and conditions of the donation, determine and implement the responsibility for its implementation
and seriously perform the hand-over procedures for the donated assets.
Article 30
An enterprise shall, when undertaking such businesses as futures, options, securities and foreign exchange transactions or entrusting
any other institutions to be in charge of its financing, not impact the normal operation of its major business, and shall conclude
a contract in written form, set up a transaction reporting system, check the accounts regularly and control the risks.
Article 31
An enterprise shall, when undertaking any agency business, strictly perform the contract, set up separate accounts to manage the
agency and self-operated business, and may not misappropriate it’s the clients’ capital or deliver business risks to each other.
Article 32
An enterprise shall set up a reserve management system for asset loss or depreciation. The standards for preparing the asset loss
or depreciation reserve, once determined, may not be altered at discretion. When formulates the standards, the enterprise may consult
an intermediary organ or related experts.
With regard to the assets whose loss or depreciation reserve has been prepared, the enterprise shall determine and implement the responsibility
for supervision. In light of the assets that may be recovered, may be put into continuous use, or the actual loss thereof may not
be proved, they may not be written off.
Article 33
An enterprise shall, as for the asset losses it has suffered, verify the losses timely, investigate and clarify the responsibility,
recover the losses and handle them according to the prescribed procedures.
The asset losses checked in the reorganization of the enterprise shall, upon approval, be offset with the undistributed profits, surplus
reserve, capital reserve and paid-in capital in turn.
Article 34
An enterprise shall, when sells, pledges, replaces, discards or disposes its assets in any other way, comply with the related provisions
of the state and carry out in light of the power limits and procedures as prescribed in the internal financial management rules of
the enterprise. Where the disposal of its major fixed assets refers to the adjustment of enterprise business or assets restructuring,
it shall be carried out according to the scheme for business adjustment or assets restructuring as discussed and approved by the
investors.
Article 35
In case an enterprise conducts any affiliated transaction, such transaction shall be priced and settled as a transaction between
independent enterprises under the related provisions of the state. No investor or operator may take advantage of the affiliated transaction
to transfer the economic interests of the enterprise illegally or to manipulate the profits of the affiliated enterprise.
Chapter V Cost Control
Article 36
An enterprise shall set up a cost control system, enhance the restriction of cost budget, advance the measures for quality cost control,
and carry out cost quota management, popular management and the control over the whole process.
Article 37
An enterprise shall carry out centralized, level-by-level management of the expenditure, and budget control therefore, and shall
set up the scope, standards for necessary fees and expenses and the examination system for the reimbursement of such expenditure.
Article 38
The expenses that are necessary for the technological research and development and the projects of transforming scientific and technological
achievements of an enterprise may be raised by means of setting up a research and development reserve, and for witch the related
asset costs or the current period charges shall be listed in accordance with the facts.
An enterprise group meeting the conditions provisioned by the state may make centralized utilization of the research and development
expenses to develop the leading products and core technologies of the enterprise independently.
Article 39
As for the expenses that are necessary for an enterprise to carry out safe and clean production, pollution treatment, prevention
and control of geologic hazard, ecology recovery, or environmental protection and so on, they shall be listed into the related asset
costs or current period charges according to the related standards of the state.
Article 40
In case an enterprise has incurred such expenses as sales discounts, allowances and the payment for necessary commissions, brokerages,
handling charges, service charges, deductions, profit refunds, slotting allowances, business rewards and so on, it shall conclude
a related contract and perform the formalities of internal examination and approval.
With regard to the commissions, insurance premiums or freight charges collected or paid by an enterprise for carrying out import-export
business, they shall be dealt with according to the price terms provisioned in the contract.
In case an enterprise pays any money to an individual or a non-business entity, it shall perform the formalities of payment and internal
examination and approval strictly.
Article 41
An enterprise may carry out different compensation measures for the operators and core technical personnel from those for the other
employees under the related laws, regulations and provisions of the state, and if it is an enterprise invested by the people’s government
of the same level or its any departments or organs, the compensation measures shall be reported to the competent authority of finance
for record.
Article 42
An enterprise shall pay remunerations to its employees under the labor contract and the related provisions of the state and pay group
personal accident insurance premiums for the employees undertaking high-risks, for which the necessary expenses shall be directly
listed and paid as cost (expense).
An operator may prepare money of a certain amount out of its wages plan so as to reward the employees that have made significant contribution
in technological research and development, reducing energy consumption, treating the three wastes which means waste gas, waste water
and industrial residues, improving safe production and developing market and so on.
Article 43
An enterprise shall pay basic medical, basic pension, unemployment, working injury and other social insurance premiums for its employees,
for which the necessary expenses shall be listed and paid as cost (expense) directly.
With respect to an enterprise that has already undertaken the basic medical insurance or/and pension insurance, if it has continuous
capacity to earn profits and pay, it may set up supplemental medical or/and pension insurance for its employees, for which the necessary
expenses may be withdrawn from the cost (expense) at the proportion provisioned by the provincial people’s government or above. The
exceeding part shall be assumed by the employees themselves.
Article 44
Such financial affairs of an enterprise as the payment of public accumulation fund for housing and the monetized distribution of
residential houses to employees shall be carried out under the related provisions of the state.
The expense for staff training shall be withdrawn at the proportion provisioned by the state, and shall be specially used for the
follow-up vocational education and training of employees.
Labor union expenses shall be withdrawn at the proportion as provisioned by the state and appropriated to the labor union.
Article 45
An enterprise shall pay administrative undertaking charges, governmental funds and the expenses for using or occupying state-owned
resources under law.
The enterprises are enpost_titled to refuse to pay all kinds of apportions, charges and fund-raisings without legal basis or beyond the
scope and standards provisioned by any law or regulation.
Article 46
An enterprise may not bare the following expenses that belong to individual payment:
(1)
expenses on entertainment, body-building, tourism, serving, shopping or donating and so on;
(2)
expenses on purchasing commercial insurances, securities, stock equities or collections and so on;
(3)
expenses on the penalty or compensation and so on caused by individual act;
(4)
expenses on purchasing residential house or paying realty management fees and so on; and
(5)
other expenses that shall be assumed by an individual.
Chapter VI Income Distribution
Article 47
All the incomes gained by any investor, operator or any other employee of an enterprise from the performance of duties of the enterprise
or from conducting business in the name of the enterprise, including sales income and the sales discounts, allowances, commissions,
brokerages, handling charges, service charges, deductions, profit refunds, slotting allowances and business rewards and so on that
are given by the other party, shall be remained by the enterprise.
An enterprise shall set up a management system for selling price, define the pricing of its products and services and clarify the
power limits, procedures and methods for adjusting selling prices, take corresponding price strategies to prevent selling risks under
the prospective earning, capital turnover, market competition, restrictions from laws and norms and other requirements and so on.
Article 48
An enterprise shall sell its equity investment according to the stipulated procedures and methods. The bottom price for the sale
of equity investment shall be decided by referring to assets assessment results, and the purchase price shall be collected under
the contract. In performing the delivery, the part of the equity investment whose payment has not been obtained yet shall be settled
under the contract and the effective guarantee of the assignee shall be gained.
The income gained by a listed company from the deduction of state-owned shares it holds shall be dealt with under the provisions of
the State Council.
Article 49
The annual operating losses that an enterprise suffered shall be fetched up under the provisions of the laws on taxation. In case
the pretax profit gained within the prescribed number of years is insufficient to fetch up the loss, such losses shall be fetched
up with the after-tax profit gained in the following years or with the surplus reserves after being discussed by the investors.
Article 50
Except that it is otherwise stipulated by any laws or administrative regulations, the annual net profit of an enterprise shall be
distributed in the following descending order:
(1)
to fetch up the losses of the previous year;
(2)
to withdraw 10% of the legal accumulation fund, and it is allowed to stop withdrawing the legal accumulation fund if its progressive
total reaches 50% of the registered capital;
(3)
to withdraw discretional accumulation fund, and the proportion shall be decided by the investors; and
(4)
to distribute profits to the investor. The profits not distributed in the previous year shall be merged into those of this year and
be distributed to the investors after sufficiently considering the cash flow status. An enterprise invested by the people’s government
or any of its departments or organs shall hand over the payable state-owned profits to the treasury.
A state-owned enterprise may withdraw the discretional and legal accumulation funds in combination. The shares repurchased by a joint
stock limited company under law and have not yet to be transferred or cancelled may not be used for profit distribution. In case
the equity incentive toward the operators and other employees is to be implemented by me
|
Order of the Ministry of Commerce
No.24
We hereby promulgate the Measures for the Administration of the Crude Oil Market, which were adopted upon the consensus of the leaders
of the Ministry of Commerce on December 4, 2006which shall enter into force as of January 1, 2007.
Minister of the Minister of Commerce Bo Xilai
December 4, 2006
Measures for the Administration of the Crude Oil Market
Chapter I General Provisions
Article 1
In order to enhance the administration of the crude oil market, regulate the business operation of crude oil, maintain the order
of the crude oil market and safeguard the legitimate rights and interests of the crude oil enterprises and consumers, we hereby formulate
the present Measures under the Decision of the State Council concerning Establishing Administrative License for the Administrative
Examination and Approval Items that Really Need to Be Preserved (Order No.412 of the State Council) and the related laws and administrative
regulations.
Article 2
Those engaging in the crude oil business activities within the territory of the People’s Republic of China shall comply with the
related laws and regulations and the present Measures.
The term “crude oil enterprises” as mentioned in the present Measures refers to the enterprises that engage in the crude oil distribution
or storage.
Article 3
The state applies a licensing system to the crude oil business activities.
The Ministry of Commerce shall take responsibility to draft the laws and regulations for the administration of the crude oil market,
draw up ministerial regulations and organize the implementation thereof, and supervise and administer the nationwide crude oil market
subject to law. The administrative departments of commerce of the people’s governments at each level shall take responsibility to
organize and coordinate the supervision and administration of the crude oil business activities within their respective jurisdictions.
Article 4
The term “crude oil” as mentioned in the present Measures refers to the crude oil exploited and produced at the territory of the
People’s Republic of China or the sea areas under the jurisdiction of the People’s Republic of China and the imported crude oil.
Chapter II Application for Crude Oil Business License and Its Acceptance
Article 5
For the purpose of applying for the qualification for engaging in the distribution or storage of crude oil, an enterprise shall submit
an application to the administrative department of commerce of the provincial people’s government of the place where it is located,
which shall examine and report the preliminary examination opinions along with the application materials to the Ministry of Commerce,
which shall decide whether to grant a license of crude oil distributing or storing or not.
Article 6
For the purpose of applying for the qualification to distribute crude oil, an enterprise shall satisfy the conditions as follows:
(1)
the applicant shall be a Chinese legal person with a registered capital of at least 100 million Yuan;
(2)
it shall have secular and steady channels to provide crude oil;
(a)
it is a crude oil exploitation enterprise that has obtained a Petroleum Mining License upon the approval of the State Council and
has actual output, or;
(b)
it is an import enterprise that has obtained the qualification to import crude oil and its annual import volume is at least 500,000
tons, or;
(c)
it is an enterprise that has signed, with either of the enterprises as stipulated above in a and b, an crude oil supply agreement
for one year or more that matches its business scale.
(3)
it shall have secular and steady and legal channels to distribute crude oil;
(4)
it shall have a crude oil depot whose capacity shall not be smaller than 200,000 steres and whose construction shall comply with the
local municipal planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc shall have checked and accepted the depot.
Article 7
An enterprise that applies for the qualification to store crude oil shall satisfy the conditions as follows:
(1)
the applicant shall be a Chinese legal person with a registered capital of at least 50 million Yuan;
(2)
it shall have a crude oil depot whose capacity shall not be smaller than 500,000 steres and whose construction shall comply with the
local municipal planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc shall have checked and accepted the depot ;
(3)
it shall be equipped such facilities to unload crude oil as conduit pipes, railway special lines or ports for transporting crude oil
on water and its capacity shall be larger than 50,000 tons.
Article 8
In order to establish a foreign-funded crude oil enterprise, the present Measures, the related state policies and the provisions
of the laws and regulations concerning foreign investment shall be complied with.
Article 9
An enterprise that applies for the qualification of distributing crude oil shall submit the documents as follows:
(1)
an application;
(2)
legal instruments and the related materials concerning its secular and steady crude oil supply;
(3)
legal instruments and the related materials concerning its secular, steady and legal channels for crude oil distribution;
(4)
the property right certificate of its crude oil depot and the supporting facilities; the approval certificates and acceptance documents
concerning the depot and other facilities released by the departments responsible for state land and resources, planning and construction,
safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection, etc;
(5)
Business License for Enterprise Legal Person or Circular for Advance Approval of Enterprise Name as released by the department of
industry and commerce;
(6)
Hazardous Chemical Business License as released by the department of safety supervision;
(7)
Approval Certificate of Foreign-funded Enterprise of the People’s Republic of China as for a foreign-funded enterprise;
(8)
Other documents required by the examination and verification organs.
Article 10
An enterprise that applies for the qualification of storing crude oil shall submit the documents as follows:
(1)
application document;
(2)
the property right certificate of its crude oil depot and the supporting facilities; the approval certificates and acceptance documents
concerning the depot and other facilities as released by the departments responsible for state land and resources, planning and construction,
safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection, etc;
(3)
certificates the property rights certificates of such facilities to unload crude oil as conduit pipes, railway special lines or ports
for transporting crude oil on water and its capacity shall be larger than 50,000 tons
(4)
Business License for Enterprise Legal Person or Circular for Advance Approval of Enterprise Name as released by the department of
industry and commerce;
(5)
Hazardous Chemical Business License released by the department of safety supervision;
(6)
Approval Certificate of Foreign-funded Enterprise of the People’s Republic of China as for a foreign-funded enterprise;
(7)
Other documents required by the organs of examination and verification.
Article 11
The conditions, procedures, time limit, list of the materials to be submitted, and model of application letter for applying for license
of crude oil distributing or storing at its work place shall be publicized by the administrative department of commerce at or above
the provincial level.
Article 12
In case an administrative department of commerce of the provincial people’s government that accepts an application considers that
the application materials are not accomplish or fail to be in line with the related provisions, it shall notify the applicant, once
and for all, of all the content that needs to be supplemented or corrected within five (5) workdays since receiving the application.
When the time limit expires and if it fails to notify the applicant, the application shall be deemed as having been accepted since
the date when the application materials are received.
Article 13
If the application materials are complete and comply with the stipulated form, or if the applicant has supplemented or corrected
all the application materials as required, the administrative department of commerce of the provincial people’s government shall
accept the application.
In case an administrative department of commerce of the provincial people’s government accepts an application, a written certificate
bearing the special seal of this administrative organ and an indication of the date shall be produced by it. In case it rejects an
application, it shall produce a written certificate, which bears the special seal of this administrative organ, explains the reasons
for the rejection and indicates the date, and shall also inform the applicant of the right to apply for administrative reconsideration
or to file an administrative lawsuit.
Chapter III Procedures and Time Limit of Crude Oil Distribution or Storage Licensing Examination
Article 14
Within twenty (20) workdays since receiving an application for distributing or storing crude oil submitted by an applicant, an administrative
department of commerce of the provincial people’s government shall finish the examination and report the preliminary examination
opinion and application materials to the Ministry of Commerce.
Article 15
The Ministry of Commerce shall, within twenty (20) workdays since receiving the application materials of the crude oil enterprise
reported by the administrative department of commerce of the provincial people’s government, finish the examination and verification.
In case the application meets the conditions prescribed in Article 6 of the present Measures, it shall grant a license for the distribution
of crude oil and release a Certificate of Approval for the Distribution of Crude Oil; in case the application meets the conditions
prescribed in Article 7 of the present Measures, it shall grant a license for the storage of crude oil and release a Certificate
of Approval for the Storage of Crude Oil. In case the application fails to meet the related conditions, it shall inform the applicant
in written form of the decision of disapproval, the reasons and the right to apply for administrative reconsideration or to file
an administrative lawsuit.
Upon the strength of the Certificate of Approval for the Distribution of Crude Oil or the Certificate of Approval for the Storage
of Crude Oil as issued by the Ministry of Commerce An enterprise shall implement the registration procedures at the administrative
organ for industry and commerce and the tax organ.
Article 16
In case a crude oil enterprise newly builds, rebuilds or expands the storage facilities, it shall report to the Ministry of Commerce
for record after implementing the acceptance procedures at the departments responsible for state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc.
Article 17
In case the establishment of a foreign-funded enterprise or changing its business scope, or the M&A of domestic enterprise by
a foreign businessman engages in any crude oil business, it is necessary to send an application to the administrative department
of commerce of the provincial people’s government, which shall accomplish the examination within one month since the date of receiving
a complete set of application materials, and shall report the preliminary examination opinion and the application materials to the
Ministry of Commerce, which shall make a decision concerning whether to approve it or not within three months since the date of receiving
all the application documents.
Chapter IV Issuance and Change of the Approval Certificate for the Distribution or Storage of Crude Oil
Article 18
The Approval Certificate for the Distribution of Crude Oil and the Approval Certificate for the Storage of Crude Oil shall be uniformly
printed and released by the Ministry of Commerce.
Article 19
In case a crude oil enterprise intends to amend any item of the Approval Certificate for the Distribution of Crude Oil or the Certificate
of Approval for the Storage of Crude Oil, it shall send an application to the administrative department of commerce of the provincial
people’s government, which shall implement a preliminary examination and report the preliminary examination opinions and the application
materials to the Ministry of Commerce.
In case it meets the conditions to continue engaging in the crude oil business, the Ministry of Commerce shall released a new Approval
Certificate for the Distribution of Crude Oil or Certificate of Approval for the Storage of Crude Oil.
Article 20
In case a crude oil enterprise intends to change any item of the Approval Certificate for the Distribution of Crude Oil or the Approval
Certificate for the Storage of Crude Oil, it shall hand in the documents as follows:
(1)
as regards the change of enterprise name, the Circular for Advance Approval of Enterprise Name produced by the administrative department
for industry and commerce;
(2)
as regards the change of legal representative, employment certificate and identity certificate of the new legal representative;
(3)
as regards the change of business place that does not relate to the move of the warehousing and transportation facilities, certificate
concerning legal right of using the business place;
(4)
as regards the change of investment subject of the business entity, the original business entity shall implement the related procedures
for deregistering its business qualification, while the new business entity shall apply for the related qualification over again.
Chapter V Supervision and Administration
Article 21
The administrative departments of commerce of the people’s governments of each level shall enhance their supervision and inspection
of the crude oil market within their respective jurisdictions and investigate and punish the disobediences committed by crude oil
enterprises.
Article 22
The administrative departments of commerce of the provincial people’s governments shall, subject to the present Measures, organize
the inspection concerning the enterprises qualified to engage in the crude oil business every year and report the inspection results
to the Ministry of Commerce.
In case a crude oil enterprise that is found unqualified in the annual inspection, the Ministry of Commerce shall order it to rectify
within a certain time limit; in case it is still unqualified after the rectification, its qualification for engaging in crude oil
business shall be revoked.
Article 23
The major content of the annual inspection concerning an enterprise that distributes crude oil is as follows:
(1)
the crude oil operation of the enterprise in the previous year;
(2)
the conclusion and conduction of crude oil supply and distribution agreements;
(3)
whether the crude oil enterprise and its supporting facilities comply with the present Measures and the related technical specifications
and requirements;
(4)
the status quo of the enterprise concerning fire-fighting, security and environmental protection, etc.
Article 24
The major content of the annual inspection concerning an enterprise that stores crude oil is as follows:
(1)
the storage of crude oil of the enterprise in the previous year;
(2)
whether the crude oil storage enterprise and its supporting facilities comply with the present Measures and the related technical
specifications and requirements;
(3)
the status quo of the enterprise regarding fire-fighting, security and environmental protection, etc.
Article 25
A crude oil enterprise that is to suspend or stop its business shall implement the suspension or cancellation procedures with the
Ministry of Commerce. In case an enterprise that fails to implement the suspension or cancellation procedures without reason for
18 month or more, the Ministry of Commerce shall revoke its crude oil business license, cancel the Certificate of Approval for the
Distribution of Crude Oil or the Certificate of Approval for the Storage of Crude Oil and notify the related departments.
Article 26
The administrative departments of commerce of each level shall supervise and manage the crude oil business license and crude oil
market without collecting any fee.
Article 27
The Ministry of Commerce shall publicize the list of enterprises that have obtained a crude oil business license and the information
concerning the change or cancellation of any enterprise.
Article 28
The Approval Certificate for the Distribution of Crude Oil or the Approval Certificate for the Storage of Crude Oil must not be forged,
changed, traded, leased, lent or transferred in any other form. Any changed or cancelled Approval Certificate for the Distribution
of Crude Oil or Certificate of Approval for the Storage of Crude Oil shall be submitted to the Ministry of Commerce, any other entity
or individual must not remain it privately.
Article 29
A crude oil enterprise shall operate subject to law, any of the following acts is forbidden:
(1)
doing business without a certificate or license or with a certificate and license which are not coincident with each other or beyond
its authorized business scope;
(2)
mixing impurities or imitations, passing a fake product off as a genuine one or passing a defective product off as a high-quality
one;
(3)
distributing or storing the crude oil obtained through illegal channels;
(4)
distributing crude oil to the refining enterprises or distributing enterprises that have not been approved by the state or supplying
them with storage service ;
(5)
driving up oil prices or dumping oil at low prices by infringing the laws and regulations concerning price;
(6)
other business activities as forbidden by any law or regulation of the state.
Article 30
In case it is under any of the following circumstances, the Ministry of Commerce shall revoke the crude oil business license:
(1)
granting any license to an applicant that is unqualified or fails to satisfy the statutory requirements;
(2)
granting any license by exceeding the legal authority;
(3)
granting any license by infringing the statutory procedure;
(4)
a crude oil distributing enterprise failing to meet the conditions stipulated in Article 6 of the present Measures any more;
(5)
a crude oil storing enterprise failing to meet the conditions stipulated in Article 7 of the present Measures any more;
(6)
failing to take part in or pass the annual inspection;
(7)
the licensee having obtained the business license by such illegal ways as fraud or bribery;
(8)
hiding the related information, supplying false materials or refusing to supply the real materials that reflect its business activities;
(9)
other circumstances under which the administrative license shall be revoked under law.
Chapter VI Legal Liabilities
Article 31
In case any administrative department of commerce or any of its staff commits any of the following acts by infringing the present
Measures, the administrative department or supervisory department at a higher level shall order it/him to correct; as for serious
situation, the person in charge who is held directly responsible and other personnel directly responsible shall be given an administrative
punishment:
(1)
failing to accept an application that satisfies the statutory requirements;
(2)
failing to explain to an applicant the reasons of refusing to accept its application or to grant a license;
(3)
granting a license to an applicant not satisfying the statutory requirements or by exceeding the legal authority;
(4)
refusing to make an approval decision or failing to make, without justifiable reasons, such a decision within the statutory time limit
for an applicant satisfying the statutory requirements; and
(5)
failing to perform or effectively perform its supervision duty, which has resulted in serious consequences.
Article 32
In case any administrative department of commerce unlawfully charges fees in the process of granting crude oil business license,
it shall be ordered to refund the fees illegally charged and impose administrative punishment on the personnel in charge and the
personnel held directly responsible by the administrative department or supervisory department at a higher level.
Article 33
Where any crude oil enterprise commits any of the following acts, if there are specific provisions in any law or regulation, they
shall be followed; where there is no provision in the laws and regulations, the Ministry of Commerce shall give it an admonition
under law subject to the specific situation, order it to correct within a certain time limit, and impose a fine of at most three
times the illegal gains or 30,000 Yuan:
(1)
changing, reselling, leasing, lending or illegally transferring its certificate of approval for crude oil business in any other form;
(2)
newly building, rebuilding or expanding any crude oil depot without authorization by infringing the conditions and procedure stipulated
in the present Measures;
(3)
selling crude oil by mixing impurities or imitations, using a fake product as a genuine one, using a defective product as high-quality
one or passing an inferior product off as a standard one;
(4)
distributing or storing the crude oil obtained through illegal channels;
(5)
distributing crude oil to the refining enterprises or distributing enterprises that have not been approved by the state or supplying
them with storage service
(6)
distributing crude oil in violation of the laws and regulations concerning price of the state;
(7)
other illegal acts as stipulated in any law or regulation.
Article 34
In case any of the following acts are committed by an enterprise applying for the qualification of engaging in the crude oil business,
the Ministry of Commerce shall make a decision of rejecting its application or not granting a license and shall give it an admonition;
and the applicant may not apply for a crude oil business license again within one year.
(1)
hiding the real situation;
(2)
supplying any false materials;
(3)
infringing the related policies and application procedure, and the situation is serious.
Chapter VII Supplementary Provisions
Article 35
The foreign contractors that engage in Chinese-foreign cooperative exploitation of continental or offshore petroleum resources within
the territory of the People’s Republic of China shall comply with the related provisions in the Regulations of the People’s Republic
of China concerning Sino-foreign Cooperation in the Continental Petroleum Resources Exploitation and the Regulations of the People’s
Republic of China concerning the Offshore Petroleum Resources Exploitation in Cooperation with Foreign Enterprises.
Before the present Measures are released, the crude oil producing enterprises that have already been approved subject to law and conform
to the state policies shall apply for and obtain a Certificate of Approval for Crude Oil Business under the present Measures.
Article 36
The Ministry of Commerce is the authoritative interpreter of the present Measures.
Article 37
The present Measures shall enter into force as of January 1, 2007.
|
|
