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MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS ANNOUNCEMENT ON PUBLICIZING FORBIDDEN COMMODITY CATALOGUE OF PROCESSING TRADE




Ministry of Commerce, General Administration of Customs

Ministry of Commerce and General Administration of Customs Announcement on Publicizing Forbidden Commodity Catalogue of Processing
Trade

[2005] No.26

In accordance with Foreign Trade Law of the PRC, Customs Law of the PRC and relevant requirement on national macro-control and industry
development policies, products like iron ore, pig iron, scrap steel, billet, steel ingot, rare-earth raw ore and rock phosphate in
powder are decided to be listed in Forbidden Commodity Catalogue of Processing Trade (see Appendix for details).

This announcement takes effect as of May 19, 2005. Processing trade operation of the above-mentioned products, which are examined
and approved by commercial departments and put on records by Customs, shall be conducted in line with current Processing Trade Policy
till July 31, 2005. Since August 1, 2005, imported materials and exported finished products shall be regulated as ordinary trade
cases, and Record Number on Import and Export Declaration Form shall not be filled in with Processing Trade Manual Number. For the
imported bonded materials with no cancellation after verification before August 1, 2005, Processing Trade Manual Number shall be
filled in Remark Form of Export Declaration Form. The duration of Processing Trade Manual with expiry date later than May 19, 2005
shall not be prolonged.

This Announcement also takes effect in bonded zones, export processing areas and other areas with special supervision of the Customs.

It is hereby notified.

Appendix: Forbidden Commodity Catalogue of Processing Trade

Ministry of Commerce of the People’s Republic of China

General Administration of Customs of the People’s Republic of China

April 29, 2005 htm/e04044.htmAppendix

￿￿

￿￿

Appendix:

Forbidden Commodity Catalogue of Processing Trade

￿￿




2601110000

Unsintered iron sand and its concentrate

2601120000

Sinter-roasting iron sand and its concentrate

2601200000

roasted pyrite

7201100000

non alloy pig iron, phosphorus content is no more than 0.5% ,calculated by weight

7201200000

non alloy pig iron, phosphorus content is no less than 0.5%, calculated by weight

7201500010

alloy pig iron

7201500090

spiegel

7204100000

casting pig waste crushed aggregates

7204210000

stainless steel waste crushed aggregates

7204290000

other alloy steels waste crushed aggregates

7204300000

tin-coated steel waste crushed aggregates

7204410000

wastes left by mechanism processing

7204490090

unpost_titled steel waste crushed aggregates

7204500000

crushed iron ingot for remelting

7205100000

pig iron, spiegel and steel particles

7205210000

alloyed steel powder

7205290000

pig iron, spiegel and other steel powder

7206100000

iron ingot and non-alloy steel ingot

7206900000

iron and non-alloy steel in other primary forms

7207110000

rectangle section billet with width 2 times thinner than thickness

7207120000

other rectangle section billet (exclude squres)

7207190000

semi-finished goods of iron and non-alloy steel, with carbon content is no more than 0.25% ,calculated by weight

7207200000

semi-finished goods of iron and non-alloy steel, with carbon content is no less than 0.25% ,calculated by weight

7218100000

stainless steel ingot and other stainless steel products in primary forms

 
General Office of the Ministry of Labor and Social Security
2005-07-04

 



DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON IMPROVING THE SYSTEM OF PEOPLE’S ASSESSORS

Decision of the Standing Committee of the National People’s Congress on Improving the System of People’s Assessors

(Adopted at the 11th Meeting of the Standing Committee of the Tenth National People’s Congress on August 28, 2004) 

The following Decision is made in order to improve the system of people’s assessors, ensure citizens to participate in judicial activities
according to law and promote judicial justice:  

Article 1 People’s assessors shall be appointed in accordance with this Decision, they shall participate in judicial activities of
the people’s courts according to law and enjoy equal rights with the judges, except that they cannot serve as presiding judges. 

Article 2 The trial of the following cases of first instance by the people’s courts shall be conducted by a collegial panel composed
of people’s assessors and judges, with the exception of the trial of cases to which the summary procedure is applicable and cases
otherwise provided for by law: 

(1) criminal, civil and administrative cases which have a relatively greater bearing on the society; and 

(2) cases where the defendants of criminal cases, the plaintiffs or defendants of civil cases, and the plaintiffs of administrative
cases apply for the conduct of the trial by a collegial panel with the participation of people’s assessors. 

Article 3 When a case is to be tried by a collegial panel composed of people’s assessors and judges, the number of people’s assessors
in the collegial panel shall be not less than one-third of the total number of the persons in the panel. 

Article 4 A citizen serving as a people’s assessor shall meet the following requirements: 

(1) supporting the Constitution of the People’s Republic of China; 

(2) having reached the age of 23 years old; 

(3) being of good conduct, and being impartial and upright; and 

(4) being in good health. 

A people’s assessor shall generally be a graduate from a university or college at least. 

Article 5 No one from the standing committee of a people’s congress, a people’s court, a people’s procuratorate, a public security
organ, a State security organ or a judicial administration organ and no practicing lawyer shall serve as a people’s assessor. 

Article 6 None of the following persons shall serve as a people’s assessor: 

(1) persons who have been subjected to criminal punishment for criminal offences; and 

(2) persons who have been discharged from public employment. 

Article 7 As to the number of people’s assessors, a basic people’s court shall, in light of the need for the trial of a case, advance
a request to the standing committee of the people’s congress at the same level for decision. 

Article 8 A citizen who meets the requirements for a people’s assessor may be recommended to the basic people’s court by the unit
to which he belongs or by the grass-roots organization at the place where his permanent residence is registered, or the citizen himself
may make an application for the matter, and upon examination made by the basic people’s court together with the judicial administration
organ of the people’s government at the same level, the president of the basic people’s court shall put forth the name of the person
selected for people’s assessor to the standing committee of the people’s congress at the same level for appointment. 

Article 9 The term of office for people’s assessors shall be five years. 

Article 10 It is the right and obligation of people’s assessors to participate in judicial activities according to law. The participation
of the people’s assessors in judicial activities according to law shall be protected by law. 

People’s courts shall, in accordance with law, ensure that the people’s assessors participate in judicial activities. 

The units to which the people’s assessors belong or the grass-roots organizations at the place where their permanent residences are
registered shall ensure that the people’s assessors participate in judicial activities according to law. 

Article 11 When participating in the trial of cases as members of a collegial panel, people’s assessors shall independently exercise
their right to vote as the establishment of facts and the application of law. 

The principle of the minority being subordinate to the majority shall be practiced in the deliberation of cases by a collegial panel.
Where people’s assessors have differences of opinion with other component members of the collegial panel, such differences shall
be put down in writing; and if necessary, the people’s assessors may request the collegial panel to submit the case to the president
of the people’s court for decision as to whether to deliver the case to the judicial committee for discussion and decision. 

Article 12 Withdraw shall be made by a people’s assessor mutatis mutandis pursuant to the provisions of laws on the withdrawal of
judges. 

Article 13 When participating in judicial activities, people’s assessors shall abide by the provisions on the duties performed by
judges, keep judicial secrets, pay attention to judicial protocol and preserve judicial image. 

Article 14 Where, according to law, the trial of a case by a basic People’s court need to be conducted by a collegial panel with
the participation of people’s assessors, such people’s assessors shall be decided on by random selection from their name list. 

Where, according to law, the trial of a case by an intermediate people’s court or a higher people’s court need to be conducted by
a collegial panel with the participation of people’s assessors, such people’s assessors shall be decided on by random selection from
the name list of the people’s assessors of the basic people’s court in the city where the intermediate or higher People’s court is
located. 

Article 15 Basic People’s courts shall, together with the judicial administration organs of the people’s governments at the same
level, conduct training among the people’s assessors in order to enhance the qualification of the people’s assessors. 

Article 16 People’s assessors who have achieved significant successes or other outstanding deeds in their judicial work shall be
commended and rewarded. 

Article 17 Where a people’s assessor is in any one of the following circumstances, which is proved to be true through investigation
by the primary people’s court, to which he belongs, together with the judicial administration organ of the people’s government at
the same level, the president of the primary people’s court shall request the standing committee of the people’s congress at the
same level that the people’s assessor is dismissed from service: 

(1) he himself applies for resignation from the service; 

(2) he refuses to participate in judicial activities without justifiable reasons, thus adversely affecting the normal process of
the judicial work; 

(3) he is in one of the circumstances as specified in Articles 5 and 6 of this Decision; and 

(4) in violation of laws and regulations on judicial work, he resorts to malpractices for personal gains, thus leading to an erroneous
judgment or other serious consequences. 

If a people’s assessor commits the act as specified in Subparagraph (4) of the preceding paragraph, which constitutes a crime, he
shall be investigated for criminal responsibility according to law.  

Article 18 With respect to the expenses paid for their transportation and meals by people’s assessors in order to participate in
judicial activities, the people’s courts shall give subsidies. 

During the period when the people’s assessors who have work units participate in judicial activities, the units to which they belong
shall not withhold or withhold in disguised form, their wages, bonuses and other welfare benefits. 

During the period when the people’s assessors who do not have fixed incomes participate in judicial activities, the people’s courts
shall give them subsidies on the basis of the number of their actual working days and, mutatis mutmandis, in accordance with the
average monetary wage level of the local workers and staff members in the previous fiscal year. 

Article 19 The subsidies, which the people’s assessors are enpost_titled to for their participation in judicial activities, and the expenses,
which are entailed for implementation of the system of people’s assessors by the people’s courts and the judicial administration
organs, shall be incorporated into the operational expenditures of the people’s courts and the judicial administrative organs, and
the governments at the corresponding level shall guarantee such expenditures. 

Article 20 This Decision shall go into effect as of May 1, 2005.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.



RULES FOR INFORMATION DISCLOSURE OF ASSET-BACKED SECURITIES

the People’s Bank of China

Announcement of the People’s Bank of China

No. 14

For the purpose of regulating the information disclosure conduct of asset-backed securities, maintaining the lawful rights and interests
of investors, ensuring the smooth operation of pilot asset-backed securities, and promoting the smooth development of inter-bank
bond market, the People’s Bank of China has formulated the Rules for Information Disclosure of Asset-backed Securities, which are
hereby promulgated and shall come into force as of the date of promulgation.

People’s Bank of China

June 13, 2005

Rules for Information Disclosure of Asset-backed Securities

Article 1

The present Rules are formulated according to the Administrative Measures for the Credit Assets Securitization (Announcement No. 7
[2005] of the People’s Bank of China) and other relevant provisions for the purpose of regulating the information disclosure conduct
of asset-backed securities, maintaining the lawful rights and interests of investors, and promoting the development of the bond market.
.

Article 2

The information disclosure by an entrusted institution of asset-backed securities (hereinafter referred to as the entrusted institution)
shall be conducted through the China Money Network, China Bond Information Network and other ways as prescribed by the People’s Bank
of China.

Article 3

The entrusted institution shall ensure that the information disclosure is authentic, accurate and complete, and may not have any
false record, misleading statement or significant omission.

The institution that initiate the asset-backed securities and the institution that accepts the entrust by the entrusted institution
to provide the services for securitization shall timely report the relevant information to the entrusted institution according
to agreement on the entrust contract and service contract, and ensure that the information provided is authentic, accurate and complete.

Article 4

The entrusted institution, the institution that provides the services for securitization, the National Inter-bank Funding Center (hereinafter
referred to as the Funding Center), the China Government Securities Depository Trust & Clearing Co., Ltd. (hereinafter referred to
as the CGSDTC) and any other insider may not divulge the information to be disclosed prior to the information disclosure.

Article 5

The entrusted institution shall disclose the instructions for the issuance, rating report, measures for collection and a name list
of the members of the selling group to the investors on the fifth working day prior to the issuance of asset-backed securities.

As to those that issue asset-backed securities by installments, the information disclosure of the first installment shall be conducted
according to the relevant prescriptions of Paragraph 1 of this Article; and from the second installment and onwards, the entrusted
institution shall only disclose the supplementary instructions for the issuance on the fifth working day prior to the issuance of
asset-backed securities of each installment.

Article 6

The entrusted institution shall explain the pay off sequence and investment risk in the instructions for asset-backed securities,
and give the investors the following points of attention at an eye-catching place: “The investors that purchase the asset-backed
securities shall cautiously read this document and the relevant information disclosure documents and shall carry out an independent
investment judgment. The examination and approval of the issuance of securities of this installment by the competent department does
not mean any appraisal is made on the investment value of securities of this installment or any judgment is made on the investment
risk of securities of this installment.”

Article 7

The entrusted institution shall announce the information about the issuance of asset-backed securities on the day or the next working
day when the issuance of asset-backed securities of each installment is completed.

Article 8

During the existing period of asset-backed securities, the entrusted institution shall announce a report of the entrusted institution
(the formulation requirements are attached at the end) three working days prior to the encashment date of the principal and interest
of asset-backed securities of each installment, which shall reflect the situation of the asset pool corresponding to the current
installment of asset-backed securities and the information on the encashment of the principal and interest corresponding to the asset-backed
securities of each class; the entrusted institution shall announce the report of` the entrusted institution of the previous year
as audited by registered accountants prior to April 30 each year.

Article 9

The entrusted institution shall make stipulations with the credit rating institution on the relevant arrangement of follow-up rating
of asset-backed securities, and shall disclose the follow-up rating report of the previous year to the investors prior to July 31
each year during the existing period of asset-backed securities.

Article 10

When a general assembly of asset-backed securities holders is to be held, the convener shall announce the time, place, forms of the
meeting, issues to be deliberated, discussing procedures, and the voting way of the general assembly of holders of asset-backed securities
at leas 30 days in advance, and disclose the resolution of the general assembly within ten days after the conclusion of the general
assembly.

Article 11

In case a temporary significant event occurs that may have a substantial effect on the investment value of asset-backed securities,
the entrusted institution shall submit the information disclosure materials to the Funding Center and the CGSDTC within three working
days upon occurrence of the said event, and report it to the People’s Bank of China.

The significant i event as mentioned in this Article include but not limited to:

(1)

Events that will affect the interests of investors have happened or are going to happen, for example, the entrusted institution cannot
pay the principal and interest of asset-backed securities on schedule;

(2)

Illegal, irregular or defaulting events that will affect the investment value of asset-backed securities have occurred to the entrusted
institution and the securitization service institution;

(3)

The subject of the third-party guarantor for the asset-backed securities is changed;

(4)

The credit rating of the asset-backed securities is changed;

(5)

Other events that need to be announced according to the trust contract;

(6)

Other events as prescribed by the supervision departments like the People’s Bank of China and the China Banking Regulatory Commission
that need to be announced; and

(7)

Other events as prescribed by laws and administrative regulations that need to be announced.

Article 12

The Funding Center and the CGSDTC shall announce the relevant documents not later than the next working day upon receipt of the information
disclosure documents.

Article 13

Except suitable for these Rules, the information disclosure of asset-backed securities shall also be suitable for the Measures
for Administration of Bond Trading in the National Inter-bank Bond Market (Order No. 2 [2000] of the People’s Bank of China), the
Measures for Administration of the Issuance of Financial Bonds in the National Inter-bank Bond Market (Order No.1 [2005] of the People’s
Bank of China) , the Rules for Examination and Approval of Bond Trading and Circulation in the National Inter-bank Bond Market (Announcement
No. 19 [2004] of the People’s Bank of China) and other relevant provisions.

Article 14

The power to interpret these Rules shall remain with the People’s Bank of China.

Article 15

These Rules shall come into force as of the date of promulgation.

Attachment:Requirements for the Formulation of Reports of the Entrusted Institution

I.

Name and address of the entrusted institution and securitization service institution.

II.

The information on the encashment of principal and interest of securities of each class, which includes the amount of principal at
the time of pooling the securities of each class, the amount of principal at the beginning and end of current installment, par interest
rate of securities, information on the payment of principal and interest of current installment, the information on the late payment
of interests of current installment, the information on the loss of the principal of current installment and the rating conditions,
etc..

III.

The explanations for the statistical characters of the asset pool of current installment, which include the balance of loans, amount
of loans, weighted average interest rate of loans and weighted averaged remaining period, etc..

IV.

The explanations for the separate listing of detailed items of the principal of the asset pool of current installment (including the
normal amount of returns of the principal, the amount of the principal settled in advance, the amount of the principal partly paid
in advance, the amount of the principal as disposed and reclaimed and the amount of the principal of repurchased loans) and the explanations
for the separate listing of detailed items of interests (including the taxes and expenses).

V.

The information on the advanced payment, delay, default, treatment, treatment and reclaiming as well as losses of the asset pool.

VI.

The explanations for the internal and external credit rating as raised.

VII.

The information on the credit assets of the asset pool that is subject to the legal procedure, and the progress of legal procedure.

VIII.

The information on the total amount of investment incomes or losses from the approved investment according to the entrust contract.

IX.

Any other explanations.



 
the People’s Bank of China
2005-06-13

 






PROVISIONS FOR THE ADMINISTRATION OF FORWARD TRANSACTIONS OF BONDS IN THE NATIONAL INTER-BANK BOND MARKET

the People’s Bank of China

Announcement of the People’s Bank of China

No. 9

With a view to promoting the development of bond market in China, regulating the forward transactions of bonds, preventing market
risks and protecting the legitimate rights and interests of the market participants, the Provisions for the Administration of Forward
Transactions of Bonds in the National Inter-bank Bond Market, which has been formulated by the People’s Bank of China, are promulgated
here.

The People’s Bank of China

May 11, 2005

Provisions for the Administration of Forward Transactions of Bonds in the National Inter-bank Bond Market

Article 1

With a view to regulating the forward transactions of bonds, protecting the legitimate rights and interests of the market participants
and promoting the development of bond market, the People’s Bank of China has formulated the present Provisions according to the Law
of the People’s Republic of China on the People’s Bank of China and other relevant laws and administrative regulations.

Article 2

The “forward transaction of bonds” as mentioned in the present Provisions refers to the act that both parties of a transaction agree,
on a certain day in the future, to buy and sell the subject matter bonds at the promised price and amount by them.

Article 3

The subject matter bonds for forward transactions shall be the central government bonds, central bank bonds, financial bonds and other
types of bonds issued upon the approval of the People’s Bank of China, which have been traded as existing bonds in the National Inter-bank
Bond Market.

Article 4

The forward transactions shall follow the principles of openness, impartiality and fairness.

Article 5

The market participants of forward transactions shall be institution investors in the National Inter-bank Bond Market.

Article 6

When undertaking forward transactions, a market participant shall establish a sound internal management system and a risk prevention
mechanism, and shall take effective measures to monitor and control the risks of forward transactions.

The market participant shall, before carrying out the business of forward transactions, submit its internal management measures for
forward transactions to the relevant supervisory department, and simultaneously send a copy separately to the National Inter-bank
Funding Center (hereinafter referred to as the NIFC) and the China Government Securities Depository Trust & Clearing Co. Ltd. (hereinafter
referred to as the CGSDTC Co. Ltd).

Article 7

When undertaking forward transactions, the market participants shall enter into primary agreements on the forward transactions.

Article 8

The market participants shall undertake forward transactions through the transaction system of the NIFC, and shall conclude a written
contract on every transaction. Such a written contract shall be the certificate of transaction generated by the transaction system
of NIFC. Both parties to a transaction may conclude a supplementary contract, when they believe it necessary.

The primary forward transaction agreement, the certificate of transaction generated by the transaction system of NIFC and the supplementary
contract shall constitute a complete forward transaction contract.

Article 9

The lawfully concluded forward transaction contract shall have legal binding force on both parties to the transaction. Neither of
the parties may change or cancel the contract.

Article 10

Both parties to a forward transaction may, through negotiation on the basis of their respective credit standing, establish a mechanism
to ensure the implementation of the contract.

Article 11

The time limit for the forward transaction from the trade day to the settlement day (including the trade day, excluding the settlement
day) shall be determined by both parties of the transaction, which shall not exceed 365 days.

Article 12

The forward transactions shall be carried out at a clean price and settled at a full price.

Article 13

Both parties to a forward transaction shall, on the trading day or its next working day, send the settlement instructions and supporting
instructions to the CGSDTC Co. Ltd

Article 14

When a forward transaction is mature, the settlement of fund and bonds shall be made actually.

Article 15

The total balance of the selling and purchase of a single bond during a forward transaction by any market participant (a single fund,
if a fund management company uses the property under the fund to conduct forward transactions) shall not exceed 20 % of the circulating
amount of the bond, and the total balance of sale in a forward transaction shall not exceed 200 % of the total balance of its own
available bonds.

Article 16

The total balance of purchase of a single bond in a forward transaction by a market participant shall not exceed 100 % of the net
value of its assets under the fund. The total balance of the net purchase of a branch within China of a foreign-funded financial
institution in the forward transactions shall not exceed 100% of its RMB operating funds. And the total balance of the net purchase
of any other institution in forward transactions shall not exceed 100% of its actually contributed capital or net assets.

Article 17

No market participant may manipulate the prices of forward transactions of subject matter bonds by any means, or manipulate the prices
of the existing bonds of subject matter bonds through forward transactions.

Article 18

The NIFC and the CGSDTC Co. Ltd shall, in light of the requirements and authorization of the People’s Bank of China, timely uncover
the relevant information on forward transactions and settlement to the market, and may not disclose any non-public information or
mislead the market participants.

Article 19

The NIFC shall be responsible for the routine supervision and control on forward transactions. The CGSDTC Co. Ltd shall be responsible
for the routine supervision and control on settlement of forward transactions. If the NIFC or the CGSDTC Co. Ltd finds out any abnormal
transaction or settlement, it shall initiate the corresponding emergency mechanism and report the relevant information to the People’s
Bank of China.

Article 20

In accordance with the present Provisions, the NIFC shall formulate forward transaction rules, and the CGSDTC Co. Ltd shall formulate
settlement rules.

Article 21

All branches of the People’s Bank of China shall reinforce its communication with the NIFC or the CGSDTC Co. Ltd, and shall conduct
routine supervision and inspection over the forward transactions of the market participants within their respective jurisdiction.

Article 22

When conducting forward transactions, the market participants shall, besides the present Provisions, abide by other relevant provisions
on the National Inter-bank Bond Market.

Article 23

Where a contract on a forward transaction is breached, and there is any dispute over the fact of breach of contract or over the liabilities
for the breach of contract, both parties to the transaction may, through negotiation, apply for arbitration or file a lawsuit with
the people’s court. And they shall send the final result to the NIFC or the CGSDTC Co. Ltd no later than 12 o’clock of the working
day next to the day when they receive the final result of arbitration and lawsuit. The NIFC or the CGSDTC Co. Ltd shall announce
the final result on the same day of its reception.

Article 24

If a market participant or the NIFC or the CGSDTC Co. Ltd violates any of the present Provisions, it shall be punished by the People’s
Bank of China according to Article 46 of the Law of the People’s Republic of China on the People’s Bank of China.

Article 25

The People’s Bank of China may, pursuant to the development of forward transactions, make timely revision to Articles 11, 14, 15 and
16 of the present Provisions.

Article 26

The power to interpret the present Provisions shall remain with the People’s Bank of China.

Article 27

The present Provisions shall come into force as of June 15, 2005.



 
the People’s Bank of China
2005-05-11

 






THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION NOTICE ON THE POLICIES RELATING TO THE INDIVIDUAL INCOME TAX ON DIVIDENDS AND BONUSES

Ministry of Finance, State Administration of Taxation

The Ministry of Finance and the State Administration of Taxation Notice on the Policies Relating to the Individual Income Tax on Dividends
and Bonuses

Cai Shui [2005] No. 102

The public finance departments (bureaus), the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions,
municipalities directly under the Central Government and cities specifically designated in the state plan, and the Public Finance
Bureau of Xinjiang Production and Construction Corps:

With a view of promoting the development of the capital market, upon the approval of the State Council, the notice on the policy relating
to the individual income taxes on dividends and bonuses is given as follows:

I.

The individual income taxes on the incomes of individual investors from the dividends and bonuses of listed companies shall be levied
in accordance with the current tax laws after temporarily deducting 50% of individual taxable incomes.

II.

The aforesaid provision shall be implemented as of the date of release of this notice.

Ministry of Finance

State Administration of Taxation

June 13, 2005



 
Ministry of Finance, State Administration of Taxation
2005-06-13

 






THE STATE ADMINISTRATION OF TAXATION CIRCULAR ON THE COMING INTO EFFECT AND IMPLEMENTATION OF THE AGREEMENT ON AVOIDING DOUBLE TAXATION BETWEEN THE CHINESE AND THE SRI LANKAN GOVERNMENTS

State Administration of Taxation

The State Administration of Taxation Circular on the Coming into Effect and Implementation of the Agreement on Avoiding Double Taxation
between the Chinese and the Sri Lankan Governments

Guo Shui Fa [2005] No. 78

All the bureaus of State taxation and local taxation in all provinces, autonomous regions, municipalities directly under the Central
Government, and cities specifically designated in the state plan, Yang Zhou Taxation Institute, and all departments under the SAT:

Chinese government and the government of the Democratic Socialist Republic of Sri Lanka signed the agreement on avoiding double taxation
and preventing tax evasion on incomes in Beijing on August 11, 2003. The agreement has been confirmed by both governments by exchanged
notes on April 22, 2005 and March 24, 2005, and has now completed the necessary legal procedures for coming into force. In accordance
with the stipulations of Article 28 of the agreement, the agreement will come into force on May 22, 2005, and will be implemented
on January 1, 2006. The State Administration of Taxation has distributed the agreement text as “Letter No. 950 [2003] of the State
Administration of Taxation” on August 14, 2003. The agreement shall be implemented accordingly.

The State Administration of Taxation

May 11, 2005



 
State Administration of Taxation
2005-05-11

 






PROVISIONS FOR THE ADMINISTRATION ON THE EMPLOYMENT OF TAIWAN, HONG KONG AND MACAO RESIDENTS IN THE MAINLAND

Order of the Ministry of Labor and Social Security of People’s Republic of China

No.26

The Provisions for the Administration on the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland, which has been adopted
at the tenth executive meeting of the Ministry of Labor and Social Security on June 2, 2005, are hereby promulgated and shall go
into effect as of October 1, 2005.
Zheng Silin, the Minister of Ministry of Labor and Social Security

June 14, 2005

Provisions for the Administration on the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland

Article 1

With a view to maintaining the lawful rights and interests related to the employment of Chinese citizens resided in Taiwan, Hong
Kong and Macao in the Mainland (hereinafter referred to as the persons from Taiwan, Hong Kong and Macao) and strengthening the administration
on the employment of the persons from Taiwan, Hong Kong and Macao by the employing entities in the Mainland, the present Provisions
are formulated according to the Labor Law of the People’s Republic of China and other relevant laws and administrative regulations.

Article 2

The present Provisions shall be applicable to the persons from Taiwan, Hong Kong and Macao and working in the Mainland, and the enterprises,
public institutions, individual industrial and commercial households and other legally registered organizations in the Mainland (hereinafter
referred to as the employing entities) that hire persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan,
Hong Kong and Macao.

If there are other state provisions for the administration on the employment of experts from the regions of Taiwan, Hong Kong and
Macao, such provisions shall prevail.

Article 3

The “person from Taiwan, Hong Kong and Macao and working in the Mainland” as mentioned in the present Provisions refers to:

(1)

the persons that have established labor relationship with the employing entities;

(2)

the persons from Hong Kong and Macao that engage in self-employed business in the Mainland; and

(3)

the persons who have established the labor relationship with foreign or Taiwan, Hong Kong and Macao employing entities and assigned
by them to work in a same employing entity in the Mainland accumulatively for more than three months within one year (from January
1 to December 31 of the Gregorian calendar year).

Article 4

The employment of the persons from Taiwan, Hong Kong and Macao in the Mainland shall be subject to the employment permit system.
Where an employing entity plans to hire the persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan,
Hong Kong and Macao, it shall apply for the Employment Permits for them (hereinafter referred to as the employment permits); persons
from Taiwan, Hong Kong or Macao, who engage in the individual industrial and commercial households in the Mainland, shall apply for
employment permits by themselves. Upon authorization and with employment permits, the employment of the persons from Taiwan, Hong
Kong and Macao in the Mainland is protected by law.

The archival filing system shall be adopted when an employing entity hires the persons from Taiwan, Hong Kong and Macao or accepts
the assigned persons from Taiwan, Hong Kong and Macao.

The Ministry of Labor and Social Security shall print the Employment Permits uniformly.

Article 5

When hiring persons from Taiwan, Hong Kong and Macao or accepting the assigned persons from Taiwan, Hong Kong and Macao, the employing
entity shall observe the state laws and regulations.

Article 6

Where an employing entity plans to hire persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan, Hong
Kong and Macao, the said persons shall meet the following conditions:

(1)

being aged 18 up to 60 (the age of an investor that directly participates in the business operation or a technical person badly needed
in the Mainland may be over 60);

(2)

being in good health;

(3)

having effective travel permits (including the valid certificates for Taiwan, Hong Kong and Macao residents to come and go to the
Mainland as issued by the competent organs in the Mainland);

(4)

having corresponding qualification certificates as prescribed by the State in the case of that the engagement in professional (technical)
occupations is prescribed by the State; and

(5)

meeting other qualifications as prescribed by laws and regulations.

Article 7

When applying for employment permits for the employment of the persons from Taiwan, Hong Kong and Macao in the Mainland, an employing
entity shall submit the Application Form for the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland and the following
effective documents to the local administrative department of labor and social security at the prefecture (municipal) level:

(1)

the business license or the registration certificate of the employing entity;

(2)

the effective travel permits of the persons to be hired or the assigned persons to be accepted;

(3)

the health certificates of the persons to be hired or the assigned persons to be accepted;

(4)

the letters of intent for employment or employment certificates;

(5)

the corresponding professional qualification certificates if the persons to be hired will engage in the professional (technical)
occupations as prescribed by the State; and

(6)

other documents as prescribed by laws and regulations.

Article 8

The administrative departments of labor and social security shall make a decision on the approval of employment within ten working
days as of the receipt of the Application Form for the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland and the
relevant documents as submitted by an employing entity; and if the conditions as prescribed by Article 6 of the present Provisions
are met, the administrative departments shall approve the employment and issue an employment permits; if the conditions as prescribed
by Article 6 of the present Provisions are not met, the administrative departments shall disapprove the employment and notice the
employing entity of the disapproval in written form and explain the reasons.

Article 9

The employing entity shall, upon the strength of employment permits, go through the formalities for registration and archival filing
for the employment of persons from Taiwan, Hong Kong and Macao at the administrative department of labor and social security that
has issued the said permits.

Article 10

Where a person from Hong Kong or Macao engages in the individual industrial and commercial household in the Mainland, he shall, upon
the strength of household business license, his health certificate and effective travel permit, apply with the local administrative
department of labor and social security at the prefecture (municipal) level for an employment permit. The administrative department
of labor and social security shall handle it within five working days upon the receipt of the documents as submitted by the person
from Hong Kong or Macao.

Article 11

The employing entity shall sign labor contracts with persons from Taiwan, Hong Kong or Macao as hired thereby, and pay the social
insurance premiums in light of the Interim Provisions on the Collection and Payment of Social Insurance Premiums.

Article 12

When an employing entity terminates or dissolves the labor contracts with persons from Taiwan, Hong Kong or Macao, or when the employment
terms of persons from Taiwan, Hong Kong or Macao expire, the employing entity shall write off the employment permit at the organ
that originally issued the permit within ten working days upon the termination or dissolution of the labor contracts or upon the
expiration of the employment terms of the persons from Taiwan, Hong Kong or Macao.

When persons from Hong Kong or Macao engaging in the individual industrial and commercial household in the Mainland suspend or cease
his business, they shall write off the employment permits at the organs that have originally issued the permits within 30 working
days upon the suspension or ceasing.

Article 13

In case any employment permit is lost or destroyed, the employing entity shall apply to the administrative department of labor and
social security that has issued the said permit for re-issuing a new employment permit for the person from Taiwan, Hong Kong or Macao.

Article 14

The employing entity for which a person from Taiwan, Hong Kong or Macao works shall be identical with that indicated in the employment
permit. Where the employing entity is altered, the altered employing entity shall apply to the local administrative department of
labor and social security at the prefecture (municipal) level for another employment permits for the persons from Taiwan, Hong Kong
or Macao.

Article 15

If a labor dispute between an employing entity and a person from Taiwan, Hong Kong or Macao hired by it occurs, it shall be settled
according to the relevant state provisions on the settlement of labor disputes.

Article 16

In case an employing entity fails to apply for employment permits or go through the formalities for archival filing when hiring any
person from Taiwan, Hong Kong or Macao or accepting any assigned person from Taiwan, Hong Kong or Macao, it shall be charged to make
corrections by the administrative department of labor and social security, and a fine of 1000 Yuan may be imposed upon it.

Article 17

In case an employing entity fails to write off the employment permit when terminating or dissolving a labor contract with any person
from Taiwan, Hong Kong or Macao or when the employment term of any person from Taiwan, Hong Kong or Macao expires, it shall be charged
to make corrections by the administrative department of labor and social security, and a fine of 1000 Yuan may be imposed upon it.

Article 18

In case an employing entity forges, alters, fraudulently uses or transfers the employment permits, it shall be charged to make corrections
by the administrative department of labor and social security, and be fined 1000 Yuan upon it. And the said employing entity may
not hire any person from Taiwan, Hong Kong or Macao within one year.

Article 19

The present Provisions shall go into effect as of October 1, 2005. The Provisions on the Administration of the Employment of Taiwan,
Hong Kong and Macao Residents in the Mainland as promulgated by the former Ministry of Labor on February 21, 1994 shall be abolished
simultaneously.



 
Ministry of Labor and Social Security
2005-06-14

 






CIRCULAR OF MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ABOLISHING TAXATION POLICIES RELATING TO STEELS PROCESSED AND EXPORTED FOR SPECIAL PURPOSE

Ministry of Finance, The State Administration of Taxation

Circular of Ministry of Finance and the State Administration of Taxation on Abolishing Taxation Policies relating to Steels Processed
and Exported for Special Purpose

Cai Shui [2005] No.105

To department (bureaus) of finance in all the provinces, autonomous regions, municipalities directly under the Central Government
and cities specifically designated in the state plan, State Administration of Taxation, financial bureau of Xinjiang Production and
Construction Corporations,

Upon the approval of the State Council, the existing taxation policies related to steels processed and exported for special purpose
shall be abolished, the related matters are hereby notified as follows:

I.

The documents listed below shall be abolished from the date of July 1, 2005,

1.

Circular on Tax-refund on Domestic Steel Sold in Tax-reserving Zones Replacing Imported Steel for Listed Enterprises (Cai Shui Zi
[1998] No.53);

2.

Complementary Circular on Modifying the Steel Producing Substitution Measures of Ministry of Finance, The state Economy and Trade
Commission, The State Administration of Taxation and The General Administration of Customs(Cai Shui Zi [1999] No.34);

3.

Circular on the Steel Producing Substitution Measures of The state Economy and Trade Commission, Ministry of Finance, The State Administration
of Taxation and The General Administration of Customs(MFOTEC Trade[1999] No.144);

4.

Circular on Distributing ‘The Detailed Implementing Rules on Modifying the Steel Producing Substitution Measures’ of The State Administration
of Taxation, The state Economy and Trade Commission, Ministry of Finance, The General Administration of Customs and State Administration
of Foreign Exchange (Guo Shui Fa [1999] No.68);

5.

Circular on Issues Relating to Adjusting the Steel Producing Substitution Measures of The state Economy and Trade Commission, Ministry
of Finance, The State Administration of Taxation and The General Administration of Customs(MFOTEC Trade[2002] No.381);

6.

Circular on Tax-refund on Steels Processed and Exported for Special Purpose for Listed Enterprises of Ministry of Finance and The
State Administration of Taxation (Cai Shui [2004] No.15);

7.

Circular on Issues Relating to Ensuring the List of Tax-refund on Steels Processed and Exported for Special Purpose Enterprises of
Ministry of Finance and Ministry of Business(Cai Shui [2004] No.102).

II.

Value-added tax shall be levied and invoice on value-added tax shall be issued on domestic steel sold by listed enterprises to the
processing and exporting enterprises producing exporting products for special purpose in accordance with law, and no offset shall
be available from the date on.

III.

The known plan for the duty exemption on processing and exporting steels for special purpose in 2005 shall be reissued after being
adjusted by The State Administration of Taxation. The steels processed and exported for special purpose listed in the adjusted plan
shall be sold within the date of June 30, 2005, and the supervision rules on steel producing substitution shall be issued before
the date of June 30, 2005 by The Ministry of Supervision.

IV.

The offset taxation shall be collected and late fee shall be captured in accordance from the listed enterprises by local Taxation
Offices should these enterprises, after the sale and the issuing of the invoice of the steels processed and exported for special
purpose under the supervision rules on steel producing substitution, have not received the ensuring purchasing list on steel producing
substitution from local Taxation Offices 3 months after having all the offset procedures finished.

V.

As for the steels processed and exported for special purpose duty-freely sold to processing enterprises by listed enterprises ahead
of June 30, 2005, local Taxation Offices shall continue their work on the administration of tax on the use of duty-free steels processed
and exported for special purpose in accordance with laws such as the Circular on Distributing ‘the Detailed Implementing Rules on
Modifying the Steel Producing Substitution Measures’ of The State Administration of Taxation, The state Economy and Trade Commission,
Ministry of Finance, The General Administration of Customs and State Administration of Foreign Exchange (Guo Shui Fa [1999] No.68).

This circular is specifically issued.

Ministry of Finance

The State Administration of Taxation

June 15, 2005



 
Ministry of Finance, The State Administration of Taxation
2005-06-15

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE CHINA BANKING REGULATORY COMMISSION ON REGULATING THE WORK OF ASSET APPRAISAL IN THE NON-PERFORMING ASSETS DISPOSAL IN ASSET MANAGEMENT COMPANIES

the Ministry of Finance, the China Banking Regulatory Commission

Circular of the Ministry of Finance and the China Banking Regulatory Commission on Regulating the work of Asset Appraisal in the Non-performing
Assets Disposal in Asset Management Companies

Cai Qi [2005] No. 89

Jun. 15,2005

The departments (bureaus) of finance, the banking regulatory offices of all provinces, autonomous regions and municipalities directly
under the Central Government, all financial asset management companies:

With a view to regulating the acts of the asset management companies, asset appraisal institutions and certified asset appraisers
in the non-performing assets disposal, further clarifying the functions and roles of the asset management companies, asset appraisal
institutions and certified appraisers, and promoting the orderly disposal of non-performing assets, you are hereby notified of the
relevant issues of asset appraisal in the non-performing assets disposal:

I.

The Requirements for Asset Management Companies in Non-performing Assets Disposal

An asset management company shall, in the non-performing assets disposal, strengthen the institutional improvement and internal control,
intensify the management of the asset appraisal and the utilization of the appraisal reports in the non-performing assets disposal,
and give full play to the positive roles of the appraisal institutions in the non-performing assets disposal.

1.

The asset management company shall regard the non-performing assets disposal as an important link, and shall, in light of the concrete
circumstances of various non-performing assets, entrust an asset appraisal institution to assess the to-be-disposed non-performing
assets in strict accordance with the relevant laws and regulations. It shall strictly comply with the appraisal-prior-to-disposal
procedure, shall not operate conversely;

2.

The asset management company shall further improve the system for selecting and hiring the best asset appraisal institution. It shall,
in strict compliance with the industrial qualifications, choose an asset appraisal institution with an asset appraisal qualification
certificate to conduct an appraisal in the non-performing assets disposal. It shall introduce the competition mechanism into the
course of selecting and hiring an asset appraisal institution, shall give priority to the asset appraisal institutions with good
reputation, qualification and professional ethics and shall not merely consider the lowest appraisal fee as the unique basis for
selecting the asset appraisal institution;

3.

The asset management company shall maintain the independence of the appraisal institution, shall actively help it to complete the
appraisal, shall not interfere with its normal practice, nor insinuates it and the certified asset appraisers to issue any untrue
or false appraisal report;

4.

The asset management company shall use the conclusion of value appraisal or value analysis issued by the appraisal institution reasonably
and properly. It shall not use it maliciously.

II.

The Requirements for Appraisal Institutions and Certified Asset Appraisers in the Non-performing Assets Disposal

During the course of disposing non-performing assets, the asset appraisal institution and certified appraisers shall practice in strict
accordance with the law, shall ensure the independence, objectivity and impartiality of their practices in pursuance of the relevant
appraisal standards and norms, and shall safeguard the public interests, as well as the legitimate rights and interests of all parties
concerned to the asset appraisal.

1.

The asset appraisal institutions and certified asset appraisers shall practice in strict accordance with the relevant laws, regulations
and asset appraisal rules, scrupulously abide by the professional ethics and shall be diligent and dutiful. They shall follow the
necessary asset appraisal procedures in strict compliance with the relevant provisions. Their appraisal measures, appraisal reports
and value analysis reports shall conform to the relevant laws, regulations and asset appraisal rules. They shall not cancel any necessary
asset appraisal procedure, nor cater for any improper request of the entrusting party or interested parties, nor issue any untrue
or false appraisal report;

2.

During the course of appraising non-performing assets, the asset appraisal institutions and certified asset appraisers shall strictly
abide by the Guiding Opinions on the Financial Appraisal of Non-performing Assets (Zhong Ping Xie[2005] No. 37) issued by the China
Appraisal Society, and shall regulate the acts of appraising non-performing assets;

3.

An appraisal institution shall choose and assign competent professional certified asset appraisers to perform the businesses of appraising
non-performing assets, intensify the quality control of performing, strictly implement its internal level-by-level verification procedures,
implement the verification responsibility, ensure the quality of appraisal of non-performing assets and protect the legitimate rights
and interests of the parties to the asset appraisal.

III.

The Requirements for the Supervision over Appraisal Businesses of the Non-Performing Asset

The Ministry of Finance and China Appraisal Society shall strengthen the supervision over asset appraisal businesses in the non-performing
assets disposal. The public finance departments and industrial associations of all provinces, autonomous regions and municipalities
directly under the Central Government shall further intensify the supervision over asset appraisal businesses in the non-performing
assets disposal, strengthen the quality inspection over the asset appraisals in the non-performing assets disposal, promote the quality
of asset appraisal practices in non-performing assets disposal and offer better asset appraisal services in non-performing assets
disposal.

Where an asset appraisal institution and its certified asset appraisers issue any untrue or false report by colluding with the entrusting
party or the relevant interested party, once found, the appraisal qualification certificate of the asset appraisal institution shall
be revoked by the financial department and the certificates of the certified asset appraisers shall be revoked by the China Appraisal
Society.

The China Banking Regulatory Commission shall, in pursuance of the law, strengthen the supervision over the appraisal entrustment
in the non-performing assets disposal by the asset management companies and over the utilization of the asset appraisals so as to
give full play to the positive roles of asset appraisal in the non-performing assets disposal.

An asset management company shall strictly abide by the relevant provisions on the non-performing assets disposal and shall do well
the work of non-performing assets disposal. Where anyone insinuates or colludes with the appraisal institution and certified asset
appraisers to issue untrue or false appraisal report or uses any appraisal report maliciously, if it is found, the liabilities of
the relevant institution and person liable shall be investigated for.



 
the Ministry of Finance, the China Banking Regulatory Commission
2005-06-15

 






1234Page 1 of 4

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

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