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REPLY OF CHINA INSURANCE REGULATORY COMMISSION ABOUT THE LEGAL STATUS OF INDIVIDUAL INSURANCE AGENTS

Reply of China Insurance Regulatory Commission about the Legal Status of Individual Insurance Agents

October 9, 2006

Insurance Regulatory Bureau of Guizhou Province:

We have received your Request for Instructions about the Legal Status of Individual Insurance Agents in Insurance Companies. Upon
deliberation, we hereby render a reply as follows:

1.

In accordance with Articles 125 and 128 of the Insurance Law of the People’s Republic of China (hereinafter referred to as the Insurance
Law), individual insurance agents are a kind of insurance agents. They have a principal-agent relationship with insurance companies.

2.

In specific cases, whether an operator of an insurance company is an individual insurance agent as well as whether the operator has
a principal-agent relationship with the insurance company shall be determined according to the legal nature of the specific agreement
concluded between them.

3.

In accordance with Article 136 of the Insurance Law, an insurance company shall be responsible for training and managing its individual
insurance agents so as to ensure the professional ethics and quality of its individual insurance agents.



 
China Insurance Regulatory Commission
2006-10-09

 







ANNOUNCEMENT NO. 78 2006 OF THE MINISTRY OF COMMERCE ON NON STATE-RUN TRADE PERMISSIBLE IMPORT AMOUNT, DISTRIBUTION BASIS AND APPLICATION PROCEDURE OF CRUDE OIL IN 2007

Announcement No. 78 2006 of the Ministry of Commerce on Non State-run Trade Permissible Import Amount, Distribution Basis and Application
Procedure of Crude Oil in 2007

No.78

In accordance with the Regulation of the People’s Republic of China on the Administration of the Import and Export of Goods and China’s
commitments on the entry into WTO, Non State-run Trade Permissible Import Amount, Distribution Basis and Application Procedure of
Crude Oil in 2007 is hereby announced.

Any qualified crude oil import unit may apply to the Administrative Organization of Key Industrial Products authorized by the Ministry
of Commerce, or to the Ministry of Commerce directly. The cognizance duration of the Ministry of Commerce is from October 10, 2006
to November 10, 2006.

Appendix: Non State-run Trade Permissible Import Amount, Distribution Basis and Application Procedure of Crude Oil in 2007

the Ministry of Commerce

October 10, 2006
Appendix:
Non State-run Trade Permissible Import Amount, Distribution Basis and Application Procedure of Crude Oil in 2007.

1.

The Non State-run Trade Permissible Import Amount

The non state-run trade permissible import amount of crude oil in 2007 is 16.68 million tons.

2.

The Distribution Basis

(1)

the previous import performance of the applicants,

(2)

whether or not the previous distributed amounts have been fully used,

(3)

the production capacity, operation scale, sales performance of the applicant,

(4)

the number of applicants,

(5)

the applications of new import operators, and

(6)

other factors which need to be taken into account.

3.

Conditions for the application of non state-run trade permissible import amount of crude oil

(1)

as regards an oil products enterprise meeting the following requirements:

(a)

it is established upon approval under law with a registered capital of no less than 50 million Yuan;

(b)

it has a crude oil import port with tonnages of no less than 50,000;

(c)

it has a crude oil tank with a volume of no less than 200,000 cubic meters;

(d)

it has a crude oil reserve the business volume of which is not less than 10% ;

(e)

it has no records of smuggling, violations of rules, tax evasion, evasion of foreign exchange and illegal arbitrage;

(f)

it has a good credit, A-level or above in credit rating, credit amount of the bank of no less than 20 million US dollars;

(g)

it has at least two professionals engaging in the international oil trade; and

(h)

other factors which need to be taken into account.

(2)

as regards a small-scale border trade enterprise meeting the following requirements:

(a)

it is established upon approval under law with the registered capital no than 50 million Yuan and engaging in oil products business;

(b)

it has a sound unloading capacity and transferring capacity;

(c)

it has business performances of crude oil import in the recent three years (2004-2006);

(d)

it has a crude oil reserve of no less than 10% of the business volume;

(e)

it has no records of smuggling, violations of rules, tax evasion, evasion of foreign exchange and illegal arbitrage;

(f)

it has a good credit, A-level or above in credit rating; and

(g)

other factors that need to be taken into account.

(3)

As regards a foreign-invested enterprise, it must be an independent legal entity with independent import performances.

4.

Documentation submission and application procedure

The applicants shall submit application documentations in line with the requirements prescribed in Article 3 (the applicants need
not to ask the local customs to issue records of no smuggling and violations of rules, upon which the General Administration of Customs
will carry out unified verification after negotiation with the Ministry of Commerce at the appointed time), and the documentations
shall be transferred to the Ministry of Commerce through the Import Administrative Organization of Key Industrial Products authorized
by Ministry of Commerce in the city or province where the applicants are located. The enterprises directly under the Central Government
may submit the documentations directly to the Ministry of Commerce.



 
Ministry of Commerce
2006-10-10

 







INTERIM MEASURES FOR THE CHECK AND RATIFICATION OF EXPORT ENTERPRISES OF EPHEDRINE CHEMICALS LIABLE TO PRODUCING NARCOTIC DRUGS

Decree of the Ministry of Commerce, Ministry of Public Security, General Administration of Customs and the State Food and Drug Administration

No.9

The Interim Measures for the Check and Ratification of Export Enterprises of Ephedrine Chemicals Liable to Producing Narcotic Drugs
have been deliberated and adopted at the 5th ministerial meeting of the Ministry of Commerce on May 17, 2006. They are hereby promulgated
upon approval of the Ministry of Public Security, General Administration of Customs and the State Food and Drug Administration, and
shall come into force 30 days as of the promulgation date.
Bo Xilai, Minister of Commerce

Zhou Yongkang, Minister of Public Security

Mou Xinsheng, Director of the General Administration of Customs

Shao Mingli, Director General of the State Food and Drug Administration

October 10, 2006

Interim Measures for the Check and Ratification of Export Enterprises of Ephedrine Chemicals Liable to Producing Narcotic Drugs

Article 1

With a view to strengthening the export administration over ephedrine chemicals liable to producing narcotic drugs, regulating the
export business order of these chemicals and preventing them from flowing into illegal channels, the present Measures are constituted
under the Regulations on the Administration of Chemicals Liable to Producing Narcotic Drugs.

Article 2

The term “ephedrine chemicals liable to producing narcotic drugs” as mentioned in the present Measures means the ephedrine materials
and the saline chemicals (including pharmaceutical products and single preparations) listed at the attached list of the Regulation
on the Administration of Chemicals Liable to Producing Narcotic Drugs, such as ephedrine, pseudo ephedrine, mesoephedrine, phenylpropanolamine,
methylephedrine, ephedrine extractum, and ephedrine extractum powder.

Article 3

The ephedrine chemicals liable to producing narcotic drugs may be exported by the enterprises that have been checked and ratified
by the Ministry of Commerce together with the State Food and Drug Administration under present Measures.

The list of export enterprises of ephedrine chemicals liable to producing narcotic drugs shall be checked and ratified once every
two years, and shall be promulgated by the Ministry of Commerce in the form of public announcement.

Article 4

The Ministry of Commerce shall take charge of the administration on the check and ratification of export enterprises of ephedrine
chemicals liable to producing narcotic drugs of the whole nation. The competent departments for commerce of all provinces, autonomous
regions, municipalities directly under the Central Government and cities under separate state planning (hereinafter referred to as
provincial competent departments for commerce) shall take charge of the administration and other related work of the check and ratification
of export enterprises of ephedrine chemicals liable to producing narcotic drugs of their respective regions upon the entrustment
of the Ministry of Commerce.

Article 5

The customs declaration of the export of ephedrine chemicals liable to producing narcotic drugs shall be limited at the ports of
Beijing, Tianjin, Shanghai and Shenzhen, and the actual departure shall also be limited at the same port. The other customs shall
reject the export declaration business of these products.

Article 6

To apply for the check and ratification qualification of export enterprise of ephedrine chemicals liable to producing narcotic drugs,
an enterprise shall meet the following conditions:

(1)

having gone through the registration formalities for a foreign trade operator, or it is a foreign-funded enterprise established upon
the approval under law;

(2)

having no record of criminal penalty or administrative penalty by the related departments because of illegal operation within the
last three years;

(3)

having established and improved the special administration mechanism on the export of ephedrine chemicals liable to producing narcotic
drugs, and having special management personnel;

(4)

the legal representative and the management personnel shall have related knowledge and management experience on chemicals liable to
producing narcotic drugs; and

(5)

having relatively fixed channels for raw materials supply.

Article 7

The Ministry of Commerce shall produce a notice on qualification check and ratification three months before the expiration of the
time limit of the check and ratification. And the enterprises shall submit the documentary evidences as prescribed in Article 6
to the provincial competent departments for commerce within the time limit as stipulated in the notice.

If an applicant enterprise is a foreign-funded enterprise, it shall also submit the certificate of approval of foreign-funded enterprise
(photocopy) attached with the mark of passing the joint annual inspection, joint operation contract, report of assets examination
and business license (photocopy).

The provincial competent department for commerce shall, within 20 days as of the receipt of the related prescribed materials submitted
by the enterprise, complete the primary examination, where the applicant enterprise is determined as qualified in the primary examination.
And the department shall submit the opinions of primary examination and the related materials to the Ministry of Commerce for check
and ratification.

The Ministry of Commerce shall, within 20 days as of the receipt of the opinions of primary examination and the related materials,
in collaboration with the State Food and Drug Administration and the related experts, undertake comprehensive appraisal in light
of the basic conditions of enterprises, domestic and overseas drug prohibition situation, market status and the foreign trade order,
and may conduct first-hand investigation and check and ratify the export enterprises and publish the list thereof.

Article 8

An enterprise, which has obtained the qualification of an export enterprise of ephedrine chemicals liable to producing narcotic drugs
upon check and ratification (hereinafter referred to as ratified enterprise), shall apply for the export license of ephedrine chemicals
liable to producing narcotic drugs under the Regulation on the Administration of Chemicals Liable to Producing Narcotic Drugs and
the Regulation on the Administration of the Export and Import of Chemicals Liable to Producing Narcotic Drugs.

Article 9

The manufacture enterprises among the ratified enterprises may only export the self-produced ephedrine chemicals liable to producing
narcotic drugs; the circulating enterprises among the ratified enterprises may only purchase ephedrine chemicals liable to producing
narcotic drugs of the enterprises that have the permit to manufacture and manage ephedrine chemicals liable to producing narcotic
drugs to export.

Article 10

Ratified enterprises must establish special machine accounts for the export of ephedrine chemicals liable to producing narcotic drugs
to make detailed record of related export business activities, and keep the related records for two years for future reference.

Article 11

Ratified enterprises shall report the export situation of ephedrine chemicals liable to producing narcotic drugs of the previous
year to the provincial competent departments of commerce, public security departments and the food and drug supervision departments
prior to March 31 each year.

Article 12

Ratified enterprises shall be subject to the supervision and management of the competent departments of commerce and the food and
drug supervision departments.

Article 13

For the purpose of protecting ephedra herbal resources and the natural environment, the state shall prohibit the export of natural
ephedra herbal.

Article 14

In case an enterprise obtains the qualification of ratified enterprise by deceiving or other illegitimate means, the Ministry of
Commerce shall cancel its qualification of ratified enterprise under law, and may give a warning or impose a fine not more than 30,000
Yuan; the enterprise violating laws may not apply for the qualification of ratified enterprise again within three years thereafter.

Article 15

In case an enterprise violates Article 9 to Article 12 of the present Measures, the Ministry of Commerce shall order it to make
corrections within a certain time limit, and may give it a warning or impose a fine not more than 30,000 Yuan; if the enterprise
fails to do so within the time limit, the Ministry of Commerce may cancel its qualification of ratified enterprise.

Article 16

In case an enterprise exports chemicals liable to producing narcotic drugs by violating the Regulation on the Administration of Chemicals
Liable to Producing Narcotic Drugs, the Regulation on the Administration of the Export and Import of Chemicals Liable to Producing
Narcotic Drugs and the present Measures, it shall be handled under the related provisions of the Regulation on the Administration
of Chemicals Liable to Producing Narcotic Drugs and the Regulation on the Administration of the Export and Import of Chemicals Liable
to Producing Narcotic Drugs; the Ministry of Commerce may cancel its qualification of ratified enterprise according to the seriousness
of the circumstance.

Article 17

The original ratified export enterprises of ephedrine chemicals liable to producing narcotic drugs shall, within 60 days as of the
promulgation of the present Measures, apply for the ratification of qualification under the present Measures. In case an enterprise
fails to go through the related formalities within the prescribed time limit, its qualification ratified previously shall be cancelled.

Article 18

The present Measures shall come into force 30 days as of the promulgation date. The Circular on the Related Issues concerning the
Intensifying of the Administration on the Export of Ephedrine Products (Wai Jing Mao Guan Fa [1998] No. 573) shall be repealed concurrently.



 
The Ministry of Commerce, Ministry of Public Security, General Administration of Customs, the State Food and Drug Administration
2006-10-10

 







NOTIFICATION NO. 69 2006 OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION, THE MINISTRY OF COMMERCE AND THE MINISTRY OF FINANCE

Notification No. 69 2006 of the National Development and Reform Commission, the Ministry of Commerce and the Ministry of Finance

No. 69 [2006]

With a view to stabilizing market, ensuring supply, the National Development and Reform Commission, the Ministry of Commerce and the
Ministry of Finance have decided to put on the market part of the national reserve of sugar. Matters concerned are notified as follows:

1.

As regards the quantity, type and time. The quantity of putting on is 80 000 tons, the type is raw sugar, and the time to put the
national reserve of sugar on the market is October 13.

2.

As regards the floor price of competitive bidding. The floor price of competitive bidding for the national reserve of sugar is 3400
Yuan per ton (ex-warehouse)

3.

As regards the manner for putting on .Competitive Bidding shall be publicly conducted by electronic network system of China Merchandise
Reserve Management Center. The unit of the competitive bidding object is 5000 tons.

Other specific matters concerning the competitive bidding shall be separately notified hereafter by the Ministry of Commerce.

The National Development and Reform Commission

The Ministry of Commerce

The Ministry of Finance

October 10 ,2006



 
The National Development and Reform Commission, the Ministry of Commerce, the Ministry of Finance
2006-10-10

 







ANNOUNCEMENT NO.83, 2006 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.83, 2006 of the Ministry of Commerce of the People’s Republic of China

[2006] No.83

According to the requirement of the Announcement 69, 2006 of National Development and Reform Commission, Ministry of Commerce and
Ministry of Finance, part of national reserved sugar will be launched by means of Competitive Bidding. The details are now notified
as follows:

1.

The Organization and Management of Competitive Bidding

(1)

Ministry of Commerce shall be in charge of the management of Competitive Bidding

(2)

China Merchandise Reserve Management Center shall be in charge of the specific implementation of Competitive Bidding.

(3)

Competitive Bidding shall be publicly conducted by electronic network system of China Merchandise Reserve Management Center

2.

Amount, Time and Location of Competitive Bidding

(1)

Total amount is 80,000 tons. Competitive Bidding shall be conducted at the time from 9am-17pm on October 13, 2006.

The specific situations shall be notified later.

(2)

Location: Sugar Exchange of China Merchandise Reserve Management Center, Beijing

3.

Bottom price of Competitive Bidding

Bottom Price is 3400 yuan per ton.

4.

Processing Requirements:

All the raw sugar in the competitive bidding shall be processed into national-standard product sugar before November 15, 2006.

5.

Exchange Mode of Competitive Bidding

(1)

The exchange shall be conducted in accordance with exchange regulations for Competitive Bidding of National Reserve of Sugar. Each
share of Competitive Bidding of raw sugar is 5000 tones. If the overplus in stock is less than 10,000 tons, it shall be considered
as one share.

(2)

Member of the Competitive Bidding shall have the identity confirmed. Members shall sign up before 12: 00 October 12, 2006 so as to
participate in the Competitive Bidding.

For more related information, please check www.scyxs.mofcom.gov.cn.

Ministry of Commerce

October 11, 2006



 
The Ministry of Commerce
2006-10-11

 







ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS

Announcement of the General Administration of Customs

[2006] No. 56

Approved by the State Council, the Free Trade Agreement between the Government of the People’s Republic of China and the Government
of the Republic of Chile ( hereinafter referred to as the Agreement) shall officially take effect on October 1, 2006, and the relevant
matters are hereby announced as follows:

1.

As from October 1, 2006, the import goods originating in Chile under 7391 tax items (see the appendix) shall implement the conventional
tariff as listed in the appendix.

2.

With regard to the goods that have been shipped after August 1, 2006, but are still on the way or are temporarily stored in the warehouses
under the supervision of Chinese customs or bonded areas, in accordance with the agreement reached by the two governments of China
and Chile, the customs may calculate and levy tariffs on the mentioned import goods in the light of the agreed rates upon the strength
of the certificate of origin supplemented by the visa agency of Chile within 4 months as from October 1, 2006 as submitted by the
import trader.

3.

As from October 1, 2006, when an import trader declares the goods originating in Chile and enjoying the conventional tariff, it shall
fill in the declaration of import goods in accordance with the provisions in the No. 69 Announcement of the General Administration
of Customs in 2005).

Appendix: Form of Rates for Tariff Items under the Free Trade Agreement between the Government of the People’s Republic of China and
the Government of the Republic of Chile (Omitted)

The General Administration of Customs

September 29, 2006



 
The General Administration of Customs
2006-09-29

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING FURTHER IMPROVING THE ADMINISTRATION OF FOREIGN EXCHANGE COLLECTION AND SETTLEMENT IN TRADE

Circular of the State Administration of Foreign Exchange concerning Further Improving the Administration of Foreign Exchange Collection
and Settlement in Trade

Hui Fa [2006] No. 49
September 29, 2006

The local bureaus and foreign exchange management departments of the State Administration of Foreign Exchange in all provinces, autonomous
regions, and municipalities directly under the Central Government, the Local Bureaus of the State Administration of Foreign Exchange
in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all designated foreign exchange banks:

For the purpose of further improving the administration on foreign exchange collection and settlement in commodity trade (hereinafter
referred to as trade), facilitating normal capital use of the enterprises and boosting the validity of the administration of the
genuineness of foreign exchange in trade and maintaining the international payment balance, the relevant issues are hereby announced
as follows:

1.

The local bureaus and foreign exchange management departments of the State Administration of Foreign Exchange (hereinafter referred
to as the Foreign Exchange Bureau) shall perform a classified administration of foreign exchange in trade to the foreign exchange
collection entities.

2.

All foreign exchange administrations shall carry out an examination on the foreign exchange collection entities. In case of any of
the following circumstances that occurs to any entity foreign exchange collection, it shall be incorporate into the list of enterprises
under focused supervision:

(1)

Any foreign exchange collected under the trade item within one year has a balance of 10 percent or above as contrasted with the total
receivable foreign exchange under the trade item for the current period;

(2)

Any entity was punished by the foreign exchange administration due to its violation of the provisions on the administration of foreign
exchange within one year; or

(3)

Any entity shall be incorporated into the list of enterprises under focused supervision by the foreign exchange administration according
to the credit records and term for business initiation thereof.

3.

With respect to any foreign exchange collection entity that has any special demand in terms of production, operation and capital settlement
concerning the export of vessels and large complete set of equipments, and any foreign exchange collection entity that has a balance
of less than US$ 0.5 million of equivalent value between the foreign exchange collected under its trade item within one year and
the receivable foreign exchange under the trade item for the current period, the Foreign Exchange Bureau may properly release the
requirements as prescribed in Subparagraph (1), Article 2 herein upon examination and approval.

4.

Canceling the administration method of collecting and settling the foreign exchange under the trade item through the settlement account
of foreign exchange or payment of foreign exchange. With regard to any foreign exchange collection entity that is not listed as an
enterprise under focused supervision, the collection and settlement of foreign exchange thereof may directly be handled in accordance
with the relevant provisions. With respect to any foreign exchange collection entity listed as an enterprise under focused supervision,
the settlement of foreign exchange for all its incomes under the current item shall be handled upon strict examination and approval
in accordance with the provisions of this Circular.

5.

Where any foreign exchange collection entity listed as an enterprise under focused supervision goes through the direct settlement
for the foreign exchange under the current item or the settlement for the foreign exchange upon being entered into the current item,
it shall provide an explanation in written form relating to the nature of foreign exchange settlement to the designated foreign exchange
bank (hereinafter referred to as the bank) and go through the relevant formalities in accordance with the provisions as follows:

(1)

With respect to any foreign exchange income as generated from transit trade where the payment is made before collection, it shall
go through the foreign exchange settlement upon the original of the verification and write-off form of import in trade (the page
to be kept by enterprise)as affixed with the bank seal as well as the transit trade contract;

With respect to any foreign exchange income as generated from transit trade where the collection is made before payment, it may not
perform the foreign exchange settlement before the external payment in the transit trade is concluded. After the external payment
is concluded, the settlement for the remnant amount of foreign exchange shall be handled upon the corresponding original of the verification
and write-off form of import in trade (the page to be kept by enterprise)as affixed with the bank seal and the transit trade contract.

(2)

With respect to any other sum under the trade item (including the goods price subject to advance collection in export), the foreign
exchange settlement shall be handled upon the original of the declaration form of exported goods corresponding to the collection
of foreign exchange and with an indicated serial number of the verification and write-off form of foreign exchange collection in
export, as well as the export contract.

(3)

With respect to such affiliated expenses in trade as commissions (agency fees) and freight/insurance costs, the relevant settlement
for foreign exchange shall be handled upon the relevant contract (agreement) and invoices. Any settlement for foreign exchange income
that is not generated from trade under any item shall be handled upon the relevant contract (agreement) and relevant invoices.

After handled the formalities for foreign exchange settlement for an enterprise under focused supervision, the bank shall specify
the relevant amount and date of foreign exchange settlement on the relevant original of instruments as provided by the said enterprise
and reserve the original of explanation in written form as well as the original or photocopy of relevant instruments in accordance
with the relevant provisions.

6.

As for any foreign exchange collection entity that has been listed into the enterprises under focused supervision, if it fails to
provide the materials as described in Article 5 to prove the nature of foreign exchange collection, no formality for foreign exchange
settlement may be handled by the bank without the approval of the foreign exchange administration.

7.

Where any group company performs the collection and payment as well as administration of foreign exchange capital under the current
item in concentrated manner upon the approval of the foreign exchange administration, if a member company thereof has been listed
as an enterprise under focused supervision, it may not participate in the collection and payment as well as administration of foreign
exchange capital under the current item of the group company in concentrated manner. If there is any violation of the relevant provisions,
the qualification of the group company for collection and payment as well as administration of foreign exchange capital in concentrated
manner shall be revoked.

8.

Where any foreign exchange has been collected from trade into account or anyone applies for the refunding of settled foreign exchange
for any reason, the foreign exchange administration shall implement strict verification as required by the relevant provisions of
the Detailed Rules for Implementing the Measures for the Administration of Verification and Write-off of Foreign Exchange Collected
in Export (Hui Fa [2003] No. 107, hereinafter referred to as the “Detailed Rules”). With respect to any overseas foreign exchange
capital that is remitted into the territory of China by mistake and has not yet been written off, the relevant foreign exchange collection
entity shall provide the statements in written form as produced by the bank in order to specify the payment time of foreign exchange,
the serial number of declared international payment as well as whether the collected foreign exchange has been settled in addition
to the materials as prescribed in Paragraph 4, Article 66 of the Detailed Rules.

9.

The foreign exchange administration shall carry out an examination on the listed enterprises under focused supervision annually, and
report the result to the State Administration of Foreign Exchange for filing with copies dispatched to other foreign exchange bureaus.
All foreign exchange administrations shall provide to the banks within its jurisdiction the list of enterprises under focused supervision
as forwarded by its jurisdiction region or any other region by way of written documents or electronic name list and shall inform
the relevant foreign exchange collection entities of the information concerning the determination of the list of enterprises under
focused supervision.

10.

The bank shall be in strict accordance with this Circular and other relevant provisions regarding foreign exchange, strengthen the
verification on the genuineness of foreign exchange capital inflow in trade. Where any bank is in violation of the provisions of
this Circular by handling the formalities for any foreign exchange settlement, it shall be punished in accordance with the provisions
of Article 42 of the Regulation of the People’s Republic of China on Foreign Exchange Administration. Where any bank or foreign
exchange collection entity is in violation of this Circular or any other provision, it shall be punished in accordance with the Regulation
of the People’s Republic of China on Foreign Exchange Administration and other provisions on foreign exchange administration.

11.

All foreign exchange administrations shall strengthen the surveillance on the bank and the enterprises under focused supervision and
attach more attention to the analysis, verification and elimination of any abnormal circumstance. In case of any violation of the
provisions on foreign exchange administration, it shall be timely forwarded to the examination department of foreign exchange for
investigation and punishment.

12.

This Circular may not be applicable to the enterprises in the bonded areas, bonded harbors, export processing areas, bonded logistic
parks and bonded logistic centers.

13.

This Circular shall come into force as of November 1, 2006. Any capital that has been entered into the account for foreign exchange
settlement prior to the implementation of this Circular shall be forwarded into the account of foreign exchange under the current
item. Where there is any previous provision that fails to comply with this Circular, this Circular shall prevail.

All local bureaus of the State Administration of Foreign Exchange shall transmitted it to the central sub-branches, sub-branches,
foreign-funded banks, local commercial banks and relevant entities within their jurisdictions as of the receipt of this Circular.
All Chinese-funded designated foreign exchange banks shall transmitted it to the local bureaus and sub-branches within their jurisdictions
as soon as possible as of the receipt of this Circular. In case of any problem arising in the process of implementation, please promptly
feed it back to the Administrative Department of Current Item of the State Administration of Foreign Exchange.



 
State Administration of Foreign Exchange
2006-09-29

 







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...