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CIRCULAR ON RELEVANT ISSUES CONCERNING THE FURTHER IMPROVEMENT OF PROCEDURE FOR THE APPLICATION AND EXAMINATION OF RAISING SECURITIES INVESTMENT FUNDS

China Securities Regulatory Commission

Circular on Relevant Issues Concerning the Further Improvement of Procedure for the Application and Examination of Raising Securities
Investment Funds

Zheng Jian Ji Jin Zi [2005] No. 101

To various fund management companies and fund custodian banks

In order to further improve the procedure for the application and examination of raising securities investment funds (hereinafter
referred to as the “funds”) , improve the review efficiency and quality, promote the sound and standardized development of fund market,
and subject to the Securities Investment Fund Law, Measures for the Administration of Operation of Securities Investment Funds and
the Interim Measures for the Administration of Professional Consultative Committee (Zheng Jian Ji Jin Zi [2003] No.13) and the Provisions
of the China Securities Regulatory Commission on the Procedures for the Implementation of Administrative License (For Trial Implementation)
(hereinafter referred to as the Procedure Provisions), relevant issues concerning the further improvement of procedure for the application
and review of raising securities investment funds are hereby notified as follows:

1.

The China Securities Regulatory Commission (the CSRC) shall, after accepting the application for raising funds, decide on whether
to organize a fund expert review meeting to review the said application pursuant to the pertinent specific situations in connection
with the collection of funds.

For an application submitted to the review meeting attended by fund experts for the collection of funds, the reviewing experts shall
focus on the review of such aspects of funds as their investment management and risk control and independently give their own review
comments which shall be offered to the CSRC for reference.

2.

If a fund management company, which conducts standardized acts, has strong investment research capacities and wins good market evaluation,
shall not be required to submit its application for raising funds to the fund expert review meeting for review, except to the extent
of the following circumstances:

(1)

If the said company hasn’t been in operation for a full year from its establishment;

(2)

If the said company has greatly innovated the design for its fund products;

(3)

If the said design requires further improvement and reference to the review opinions given by the fund expert review meeting; and

(4)

any other circumstances as deemed necessary by the CSRC to be submitted to the fund expert review meeting for review based on the
principle of careful supervision.

3.

In case any greater innovation take place in the design of fund products, the CSRC shall give priority to arrangement of review conducted
by the fund expert review meeting and examination of application materials. If the innovation in fund products are significant, and
after the fund collection has been approved by the CSRC, other fund management companies shall, within a time limit stipulated by
the CSRC, be forbidden to reproduce or imitate such significant innovation.

4.

If an application for fund collection is found rough, ambiguous and incomplete respectively in connection with its design scheme,
operating thoughts for investment or risk control measures after examination, the fund management company filing such application
shall be ordered to make important amendments subject to the procedures laid down in Article 24 and 25 of the Procedure Provisions.
As to an application of the kind mentioned above, which has been submitted to the fund expert review meeting for review, a decision
shall also be made on whether or not such application shall be re-applied to the fund expert review meeting for review again based
on the specific situations after the said amendment.

5.

If there remains any issue in the application for fund collection which has been amended and submitted to the fund expert review meeting
for review, the CSRC shall not grant an approval to such application and adopt administrative supervision measures in compliance
with specific situations.

6.

Any lawyer or law firm producing legal opinions to the application for fund collection and offering legal services shall comply with
pertinent provisions, earnestly fulfill his or its responsibilities, check and verify pertinent materials and facts and ensure the
authenticity, accurateness and completeness of documents issued thereof.

7.

This Circular shall go into effect as of the date of promulgation.

China Securities Regulatory Commission

June 16, 2005



 
China Securities Regulatory Commission
2005-06-16

 






THE CIRCULAR OF THE MINISTRY OF COMMERCE AND THE MINISTRY OF PUBLIC SECURITY ON RELEVANT ISSUES CONCERNING THE IMPLEMENTATION OF THE MEASURES FOR ADMINISTRATION OF PAWN

The Ministry of Commerce, the Ministry of Public Security

The Circular of the Ministry of Commerce and the Ministry of Public Security on Relevant Issues concerning the Implementation of the
Measures for Administration of Pawn

With a view to better implementing the Measures for Administration of Pawn (Order [2005] No.8 of the Ministry of Finance and the Ministry
of Public Security, hereinafter referred to as the Measures) and further strengthening and improving the supervision and administration
of pawn industry, relevant issues concerning the implementation of the Measures are hereby notified as follows:

1.

to study hard and implement the Measures

The competent departments of commerce and public security authorities of all levels shall fully comprehend the importance of implementation
of the Measures in standardizing the pawn activities, strengthening the supervision and administration on pawn industry and promoting
its continuous health development, etc., and shall, based on the overall interest of assuring the economic development and maintaining
the social stability, hold precisely the position of pawn industry in the development of social economy; they shall build up the
concept of overall outlook, and increase the awareness of responsibility and the consciousness in implementing the Measures. The
competent departments of commerce and public security authorities of all levels shall reinforce the training of people in charge
of the supervision on local pawn industry, study hard the Measures, comprehend completely and accurately the basic contents and requirements
of all provisions, strengthen and improve continuously the supervision on pawn industry, report timely to the Ministry of Commerce
and the Ministry of Pubic Security of relevant information and problems in the process of implementing the Measures and attach importance
to the self-discipline effect of such intermediary organizations as pawn associations and increase the awareness of paw companies
to operate legally.

2.

to enhance cooperation and do a good job in the administration of pawn industry

The competent departments and public security authorities of all levels shall abide by the provisions of the Measures, attend to their
respective functions and take practical measures to do a good job in the administration of pawn industry. Firstly, the market admittance
shall be guarded in accordance with the laws and regulations such as the Administrative License Law and the Measures, etc. Local
competent departments of commerce shall carry out earnestly the preliminary examination of new pawn companies or branches; the public
security authority shall earnestly carry out the verification and issuance of the License for Special Industry. The examination and
approval shall be standardized in accordance with laws and regulations to insure an open, just and fair process of the examination
and approval and to eliminate blind examination and approval and the examination and approval that violates the laws and regulations.
Secondly, daily business supervision and public security administration shall be carried out earnestly. The competent departments
of commerce shall strictly abide by the Measures to standardize the business activities of pawn industry, establish and implement
the systems of periodic examination, aperiodic selective examination, trade statistics and report of material events carry out dynamic
supervision and whole process supervision. The acts violating provisions such as operating beyond the business scope and charging
interest and fees above the prescribed standard shall be investigated and dealt with timely. The public security authorities shall
carry out centralized administration of the public security administration on pawn industry. The security sectors of the public security
authorities shall be in charge of the daily public security administration. The public security authorities shall strengthen the
preventing measures in the security administration on pawn industry, and strictly require the pawn company that conducts the pledge
or pawn business of movable property or property rights to fill in as required by the Measures the Registration Table of Pawned Goods
(in the attachment) and to submit it to the public security authorities for future reference; periodic and aperiodic security examination
of pawn companies shall be carried out to prevent, find out and fight against, in accordance with laws, the violating acts or crimes
in the pawn industry to construct actively an integrative mechanism in prevention and control of security administration of pawn
industry and to maintain the security order of pawn industry in accordance with laws and regulations. Where the pawner pawns or redeems
a motor vehicle, the vehicle administrative department shall go through the pledge registration procedure of the motor vehicle such
as the drive stop or recover procedure, and take back or return the number plate and registration license. The vehicle transfer shall
be registered after dead pawn based on the transaction invoice. Thirdly, the administrative job shall be well done. On the one hand,
the service awareness shall be enhanced, and the procedure simplification and the changing procedure shall be done timely. On the
other hand, the administration on the outside transfer of stocks of the pawn company shall be strengthened to prevent the access
of ineligible companies or individuals to the pawn industry, especially to prevent the pawn company from taking the chance to raise
funds, attracting deposit in a disguised form or selling the business certificate at a profit.

The competent departments of commerce and public security authorities at all levels shall cooperate with each other to form a combined
force to increase the effect of supervision. One is to increase the awareness of coordination, publicize timely the information of
market access, daily business supervision, security administration, change and annual examination and do a good job in the link and
cooperation of related departments. Two is that the competent departments of commerce shall inform timely the security authorities
and handle the transfer procedure if clues of violation or crimes are found in the process of supervision and administration. Three
is to fight against the business acts that violate the laws and regulations and that the security authorities shall, in accordance
with laws and regulations, put on record and quickly deal with the case of interference with the performance of official duties,
especially the case of violent resistance against laws.

3.

the specific issues concerning the implementation of the Measures

(1)

Issues on the preliminary examination of the applying materials of a new pawn company. Before the applying materials for establishing
of a pawn company or of a branch of an existing pawn company is submitted to the Ministry of Commerce, the local competent departments
of commerce shall transfer the applying materials concerning security administration to the security authority of the people’s government
at the same level which shall, within 5 workdays after the receipt of the materials transferred by the competent department of commerce,
form a preliminary examination and approval opinion and inform the competent department of commerce at the same level (the detail
operation procedure is determined by the competent departments of commerce and the public security department or bureaus of all provinces,
autonomous regions and the cities directly under central planning). The security sections of the public security department or bureaus
of all provinces, autonomous regions and the cities directly under central planning shall submit in written form the preliminary
examination opinion to the Security Administration Bureau of the Ministry of Public Security for archival purpose. When preliminarily
examining the applying materials, local competent departments of commerce and public security authorities shall, with respect to
the security protection measures, attach importance to the examination of the ichnography and the construction structure chart of
the business sites and storehouses, the distributing chart of the installation and setting of security prevention measures, related
written materials and the written promise made by the applicant.

(2)

Issues concerning the verification and issuance of the License for Special Industry. The verification and issuance of the License
for Special Industry of pawn industry is in the charge of the public security authorities of the municipalities that are divided
into districts; the verification and issuance of the License for Special Industry of pawn industry in autonomous regions shall be
in the charge of the public security authorities of the autonomous regions. The public security authority shall verify and issue
the License for Special Industry after the security prevention measures are installed and meet the requirements of checkup and acceptance.
Where the applicant does not handle the license for special industry within prescribed time with allowable reasons, the local public
security authority may make deferral thereof; with respect to deferral or delayed handling, the public security authority shall require
the applicant to give written explanations.

(3)

The scope of senior managers. The “other senior managers” as prescribed in paragraph 4 of article 16 of the Measures shall refer
to the directors, supervisors, managers, and the staff in charge of finance. Where a person is separated from the registered permanent
residence and resides more than 6 months in the temporary residence, the public security authorities in the temporary residing place
shall issue the non-crime record in the temporary residing period besides the attestation by the public security authorities in the
registered permanent residence.

(4)

The issues concerning the security standard to be met by existing pawn companies. The competent department of commerce and public
security authority shall require the pawn company whose existing security system has not been up to the standard to make reforms
in accordance with the provisions of the Measures before August 1, 2005 so as to establish and perfect relevant security systems.
Where the buildings, business facilities and security prevention facilities of the pawn company do not meet the requirements of article
10 of the Measures, they shall be disposed of to meet the requirements before April 1, 2006. The public security authority verifying
and issuing the License for Special Industry, together with the competent department of commerce, shall organize the pawn companies
within respective jurisdiction to carry out the examination and reform.

The information of implementation shall be reported timely to the Department of Market System Construction Department of the Ministry
of Commerce by the competent departments of all provinces, autonomous regions, cities directly under central government and Xinjiang
Production and Construction Corps; the public security departments, bureaus of all provinces, autonomous regions, cities directly
under central government and Xinjiang Production and Construction Corps shall make report thereof timely to the Security Administration
Bureau of the Ministry of Public Security.

The linkmen and telephones: Sunyong, Ligang of the Market Construction Department of the Ministry of Commerce, 010-85226396 or 5226395

The Security Administration Bureau of the Ministry of Public Security: Xuyong, 010-65203702

Attachment: the Registration Form for Pawned Goods(omitted)

The Ministry of Commerce

The Ministry of Public Security

May 17, 2005



 
The Ministry of Commerce, the Ministry of Public Security
2005-05-17

 






MEASURES ON ADMINISTRATION OF LISTED COMPANIES’ BUYING BACK THE SHARES HELD BY THE PUBLIC (FOR TRIAL IMPLEMENTATION)

The China Securities Regulatory Commission

Notice on the Release of the Measures on Administration of Listed Companies’ buying back the shares held by the public (for trial
implementation)

Zheng Jian Fa[2005] No. 51

Listed Companies:

To standardize listed companies’ acts of buying back shares that are held by the public, the China Securities Regulatory Commission
formulates the Measures on ministration of Listed Companies’ buying back the shares that are held by the public (for trial implementation)
in accordance with the Company Law, the Securities Law, the Provisional Regulations on the Administration of Share Issuance and Trading
and other relevant laws and administrative regulations. The China Securities Regulatory Commission hereby makes public these Measures
which shall come into force as of the date of promulgation.

The China Securities Regulatory Commission

June 16, 2005

Measures on Administration of Listed Companies’ Buying Back the Shares Held by the Public (for trial implementation)

Chapter 1 General Provisions

Article 1

These Measures are formulated in accordance with the Company Law, the Securities Law, the Provisional Regulations on the Administration
of Share Issuance and Trading and other relevant laws and administrative regulations to standardize listed companies’ acts of buying
back shares held by the public.

Article 2

Listed Company’s buying back shares held by the public as mentioned in these Measures refers to that a listed company purchases public
shares it issued (hereinafter referred to as shares) and deregisters those shares to reduce its registered capital.

Article 3

To buy back shares, a listed company shall submit relevant archive-filing materials to the China Securities Regulatory Commission
(hereinafter referred to as CSRC) in accordance with provisions in these Measures.

Article 4

A listed company’s buying back shares shall be in the interests of its sustainable development rather than detrimental to legitimate
rights and interests of its shareholders and creditors.

The directors, supervisors and senior officers of the listed company shall practice good faith and due diligence in the buying back
process.

Article 5

A listed company shall perform its obligation of disclosing information set forth in these Measures in buying back shares.

The listed company and its directors shall ensure the authenticity, accuracy and integrity of the information disclosed by them and
ensure that there is no falsified record, misleading representation and major omission in the information.

Article 6

A listed company shall hire independent financial advisors and law firms to issue professional opinions.

The aforesaid professional institutions shall practice good faith and due diligence to conduct dutiful investigation on matters related
to the buy-back, verify the archive-filing materials to be submitted and ensure the authenticity, accuracy an integrity of the documents
they issue.

Article 7

Anyone is prohibited from taking up insider transactions, manipulating prices in securities trading or practicing fraud in securities
trading by listed company’s buying back shares.

Article 8

A listed company shall meet the following conditions to buy back shares:

(1)

Its shares have been listed on market for 1 year;

(2)

It has not committed major illegal acts within the previous year;

(3)

It is capable to sustain its operation after the buy-back;

(4)

After the buy-back, its equity distribution shall principally meet conditions for listing; if it has planned to terminate the trading
of its shares on market through the buy-back, it shall comply with the relevant provisions and obtain the approval from the securities
exchange on which its shares are listed.

Article 9

A listed company may take one of the following forms to buy back shares

(1)

Centralized price competition presided over by securities exchange;

(2)

Offer;

(3)

Other means that CSRC allows to be adopted.

Article 10

Shares bought back by a listed company lose their rights since they have been put under its special account for buy-back; in calculating
the relevant indicators, the listed company shall deduct the amount of shares that it has bought back from the total equity.

Article 11

A listed company is not allowed to issue fresh shares during share buy-back process.

The listed company is not allowed to buy back shares by centralized price competition within the 5 working days prior to the release
of its annual report and mid-term/interim report or information having crucial impact on share prices.

Article 12

If the share buy-back of a listed company leads its shares held or controlled by any individual shareholder to exceed 30%, such shareholder
doesn’t have to perform the obligation of tender offer.

Chapter 3 Share Buy-back Procedures and Information Disclosure

Article 13

The board of directors of a listed company shall make public announcement of its resolution and prepared plan for share buy-back within
2 working days since it decides to buy back shares and makes public announcement of the notice on holding shareholder meeting.

The prepared plan for share buy-back shall include at least the following contents:

(1)

Purpose of share buy-back;

(2)

Means by which the shares are bought back;

(3)

Prices or price range of shares to be bought back and the pricing principle;

(4)

Kinds/Categories and amount/number of shares proposed to be bought back and the proportion they account for of the total equity;

(5)

The total amount of capital allocated to buy back shares and its sources;

(6)

Term valid for share buy-back;

(7)

Changes predicted of equity structure of the listed company after the buy-back;

(8)

Analysis by the management of the buy-back’s impact on the listed company’s operation, financial standing and future development.

Article 14

Within 3 days prior to the shareholder meeting, the listed company shall make public the names of the top 10 holders of public shares(among
all the holders of public shares who have registered with the relevant institution on the trading day prior to the release of buy-back
resolution by the listed company or on the date of equity registration during shareholder meeting), amount/number of shares they
are holding and the proportion of their shares in total equity on the website of the securities exchange.

Article 15

The independent financial advisors shall carry out investigation with due diligence on affairs related to the share buy-back by a
listed company, issue report of independent financial advisor and release the report on CSRC designated journals 5 days prior to
the shareholder meeting.

The report of independent financial advisor shall include the following contents:

(1)

Whether the company’s buying back shares complies with provisions set forth in these Measures;

(2)

Explanation of necessity of buying back the shares based on factors such as purpose of share buy-back, performance of share price,
analysis of valuation of the listed company and etc.

(3)

Identification of feasibility of the buy-back solution by analyzing the impact of the share buy-back on the listed company’s daily
operation, its profiting capability and debt-servicing ability based on factors such as capital necessary for share buy-back, its
sources and etc.

(4)

Other items that shall be clarified.

Article 16

The shareholder meeting of the listed company shall vote on the following items one after another:

(1)

Means by which the shares are bought back;

(2)

Prices or price range of shares to be bought back and the pricing principle;

(3)

Kinds/Categories and amount/number of shares proposed to be bought back and the proportion they account for of the total equity;

(4)

The total amount of capital allocated to buy back shares and its sources;

(5)

Term valid for share buy-back;

(6)

Authorization to the board of directors to implement the buy-back solution;

(7)

Other relevant items.

When making decision of buying back shares on shareholder meeting, the listed company shall make clear in written on the resolution
that “this buy-back solution may be implemented after submitting the archive-filing materials to the CSRC and no objection to it
is raised by the CSRC”.

Article 17

The share buy-back resolution made on the shareholder meeting of the listed company needs over two-thirds of the voting rights held
by all shareholders attending this shareholder meeting to be passed.

Article 18

A listed company shall inform its creditors of its share buy-back resolution after making this decision.

Article 19

A listed company may submit the share buy-back materials to the CSRC and forward a copy of those materials to the representative office
of the CSRC in the place where the listed company is located after informing its creditors of its share buy-back resolution in accordance
with relevant laws.

Article 20

Share buy-back materials that the listed company shall submit for record shall include:

(1)

Application for buying back shares;

(2)

Resolution of the board of directors;

(3)

Resolution of the shareholder meeting;

(4)

Buy-back report of the listed company;

(5)

The report of independent financial advisor;

(6)

Legal advice;

(7)

The latest financial accounting statement(audited) of the listed company;

(8)

Self-review reports by directors, supervisors, senior officers and all intermediaries participating in this share buy-back concerning
their purchasing or selling shares of the listed company within the 6 months prior to the shareholder meeting’s decision to buy back
the shares.

(9)

Other documents required by CSRC.

Article 21

The buy-back report of a listed company shall include the following contents:

(1)

All items listed in the prepared plan on share buy-back in Article 13 of these Measures;

(2)

Explanation on whether the directors, supervisors, senior officers of the listed company have bought its shares within 6 months prior
to the public announcement of the buy-back resolution of the shareholder meeting or not and whether any of them has, individually
or in collaboration with others, carried out insider transactions or manipulated the market or not;

(3)

Conclusive advice issued by independent financial advisors on this share buy-back;

(4)

Conclusive advice issued by law firm on this share buy-back;

(5)

Other items that shall be clarified.

If it buys back shares by offer, the listed company shall also disclose the way and procedures by which the shareholders accept the
offer, the way and procedures by which the shareholders withdraw acceptance of offer in advance and post_titles and contacting information
of securities company that the shareholders entrust to handle acceptance in advance, withdrawal, clearing, registration on transfer
of ownership and other affairs of shares in question in buy-back by offer.

Article 22

The legal advice issued by law firm on a listed company’s share buy-back shall include the following contents:

(1)

Whether the listed company’s buying back shares meets conditions set forth in these Measures or not;

(2)

Whether the listed company has already followed the mandatory procedures in buying back shares; in the event that approvals of other
competent authorities are required, whether such approvals have already been obtained or not;

(3)

Whether the listed company has already performed its obligation of disclosing information set forth in these Measures in buying back
shares or not;

(4)

Whether the sources of the listed company’s capital for share buy-back is legal or in line with relevant regulations or not;

(5)

Other items that shall be clarified.

Article 23

If the CSRC raises no objection to its share buy-back archive-filing materials within 10 working days since it receives those materials,
a listed company may implement its buy-back solution.

If it buys back shares by centralized price competition, the listed company shall make public announcement of its buy-back report
within 5 working days since it receives the letter of acceptance from the CSRC; if it buys back shares by offer, the listed company
shall make public announcement within 2 working days since it receives the letter of acceptance from the CSRC and make public announcement
of its buy-back report before implementing its buy-back solution.

The listed company shall make public announcement of the legal advice together with its buy-back solution.

Article 24

Before implementing its buy-back solution, a listed company shall open special account with the securities registration and clearing
institution which is monitored by securities exchange; This account is to be used only for buying back its shares; the shares that
have already bought back shall be locked up and are prohibited from being sold.

Article 25

A listed company shall implement its buy-back solution within the valid term.

If the listed company has not implemented its buy-back solution until 3 months prior to the expiry of the valid term, the board of
directors shall make public in circular reasons for failure to implement the buy-back solution.

Article 26

When the valid term for buy-back solution expires or it has finished implementing the buy-back solution, the listed company shall
stop buying back shares, clear the special account and make public announcement within 2 working days of the report on changes of
shares. It shall also, in accordance with relevant laws, deregister the shares it just bought back and undergoes procedures of changes
in registration with the authorities for industry and commerce.

Chapter 4 Special Provisions on Share Buy-back by centralized price competition

Article 27

A listed company shall entrust securities company with professional qualifications to engage in securities brokering to handle the
affairs related to its share buy-back in accordance with relevant provisions set forth by securities exchange and securities registration
and clearing institution.

Article 28

In the process of share buy-back, the listed company shall, within the firs 3 trading days of each month, make public announcement
of the development of its share buy-back up to the previous month, including total number/amount of shares already bought back, the
top purchasing price and the lowest purchasing price, and the total amount of capital paid.

Article 29

Where the period of buy-back expires or the buy-back plan has been completed, the listed company shall, in the report of change of
shares, disclose the total number of buy-back shares, highest and lowest price for purchase and total of payment.

Chapter 5 Special Provisions on Share Buyback by Offer

Article 30

If a listed company buys back share by offer, the prices it offers shall be no less than the numerical average of the weighted daily
average price of such share during the 30 trading days prior to the release of buy-back report.

Article 31

If it buys back share by offer, a listed company shall deposit capital necessary for buy-back under the bank account designated by
securities registration and clearing institution when it releases the buy-back report.

The term for offer shall be no shorter than 30 days and no longer than 60 days.

Article 32

If a listed company buys back share by offer and when the number of shares shareholders have planned to accept in advance is much
more than that of shares that have been planned to be bought back, the listed company shall buy back, in the same proportion, the
shares that the shareholders have planned to accept in advance; where the number of shares shareholders have accepted in advance
is short of that of shares that have been planned to be bought back, the listed company shall buy back all the shares that the shareholders
have panned to accept in advance.

Article 33

If a listed company buys back shares listed in China but funded by foreign investors, such trading shall comply with provisions in
operation rules set forth by securities exchanges and securities registration and clearing institution.

Chapter 6 Regulatory Measures and Legal Liabilities

Article 34

If a listed company fails to submit relevant archive-filing materials to CSRC in violation of these Measures, the CSRC is enpost_titled
to order such company to suspend or terminate its buying back shares and punish it and its employees who are liable for such violation.

Article 35

If there is falsified record, misleading representation or major omission in information disclosed by a listed company concerning
its buying back shares, the CSRC orders it to set right and, in accordance with relevant laws, punishes this listed company and its
employees who are liable for such violation.

Article 36

If a listed company practices fraud, manipulates the market or takes up insider transaction through buying back shares, the CSRC punishes
them in accordance with relevant laws; if its acts have already constituted offenses, the listed company will be transferred to judicial
organs for investigation and punishment.

Article 37

If the professional institutions that issued opinions for listed companies in their buyback process fail to perform obligation of
due diligence and issue professional opinions containing falsified record, misleading representation or major omission, the CSRC
will take measures such as regulatory talk, issuing warning letter or ordering to set right against these professional institutions
concerned and their employees who have signed up the professional opinions; if the circumstances are grave, measures such as suspending
or revoking their professional qualification will be taken against these institutions and their employees.

Chapter 7 Supplementary Provisions

Article 38

These Measures shall be implemented as of the date of promulgation.



 
The China Securities Regulatory Commission
2005-06-16

 






THE CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON ENTERPRISE INCOME TAX CREDIT OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES PURCHASING DOMESTIC EQUIPMENT FOR INVESTMENT

The State Administration of Taxation

The Circular of the State Administration of Taxation on Enterprise Income Tax Credit of Enterprises with Foreign Investment and Foreign
Enterprises Purchasing Domestic Equipment for Investment

Guo Shui Han [2005] No. 488

The bureaus of national tax of all provinces, autonomous regions and municipalities directly under state planning, the bureaus of
local tax of Guangdong province, Hainan province and Shenzhen municipality:

Certain issues concerning the implementation of the Circular of the Ministry of Finance and the State Administration of Taxation on
Enterprise Income Tax Credit of Enterprises with Foreign Investment and Foreign Enterprise Purchasing Domestic Equipment for Investment
(Cai Shui Zi [2000] No.049) are now notified as follows:

1.

Issues concerning enterprise income tax credit of product line and integrated equipment

With respect to the product line or integrated equipment purchased by enterprises that is constituted by imported equipment, domestic
equipment and parts, accessories and supplementary material, the enterprise income tax credit shall only be meted out to the part
that is made in China and determined as an individual asset, at the time of purchase, to have satisfied the fixed asset standard.

2.

Issues on the enterprise income tax credit of the equipment sold after simply assembled by imported material

The enterprise income tax of the enterprise purchasing equipment that is simply assembled by imported parts and accessories shall
not be creditable or exempt.

3.

Issues on the enterprise income tax credit of the domestic equipment purchased in supplementary investment

As to the domestic equipment purchased by enterprise in supplementary investment project that satisfies related provisions, and is
calculated separately and enjoys the fixed-term preferential treatment of tax credit, it shall, in calculating the enterprise income
tax credit of domestic equipment purchased thereof, be consolidated with domestic equipment previously purchased in the investment
of the same term and the enterprise income tax thereof shall, unifiedly taking the enterprise as a unit, be deducted and exempted
from the newly added income tax of the enterprise of the year.

4.

Issues on deduction and exemption from the enterprise income tax of the domestic equipment investment of merged or divided enterprise

(1)

Where the enterprise is merged or divided, the investment amount of the enterprise’ domestic equipment that has not been creditable
before merger or division may continue the credit respectively by the enterprises after merger or division in the remaining years
of continued credit as prescribed in Article 3 of the document Cai Shui Zi [2000]049,

(2)

Where the enterprise purchases domestic equipment in the year of merger, its base number of the enterprise income tax of the previous
year shall be the sum of the enterprise income tax paid actually by each enterprise before merger. Where the domestic equipment is
purchased in the second year after merger, its base number of the enterprise income tax of the previous year shall be the sum of
enterprise income tax paid actually at the merger year by each enterprise before merger and the enterprise after merger.

(3)

Where the enterprise is divided, the investment amount that has not been creditable may continue the deduction or exemption respectively
by the enterprises after division subject to the amount as agreed in the division agreement. Where there is no agreed amount in the
division agreement, the investment credit amount that has not been creditable before division shall not be conducted by the enterprises
after division.

(4)

Where the enterprises after division purchase domestic equipment at the year, the base number of the enterprise income tax of the
enterprise in previous year shall be determined by the following formula:

The base number of the enterprise income tax of previous year= (the book asset gained by the enterprise in division/total assets of
the enterprise before division)* the actual paid income tax of the enterprise in previous year before division

Where the enterprises after division purchase domestic equipment in the second year after division, the base number of the enterprise
income tax of the enterprise in previous year shall be determined by the following formula:

The base number of the enterprise income tax of previous year= (the book asset gained by the enterprise in division/total assets of
the enterprise before division)* the actual paid income tax in the division year of the enterprise (before division) + the actual
paid income tax of the year of the enterprise after division.

The State Administration of Taxation

May 20, 2005



 
The State Administration of Taxation
2005-05-20

 






THE SUPPLEMENTARY CIRCULAR OF THE MINISTRY OF FINANCE AND THE MINISTRY OF COMMERCE ON THE SUPPORT OF THE PRIOR PERIOD EXPENSES OF OVERSEAS INVESTMENT IN RESOURCE AND FOREIGN ECONOMIC COOPERATION PROJECT IN 2004






The Ministry of Finance, the Ministry of Commerce

The Supplementary Circular of the Ministry of Finance and the Ministry of Commerce on the Support of the Prior Period Expenses of
Overseas Investment in Resource and Foreign Economic Cooperation Project in 2004

Cai Qi [2005] No. 85

June 17, 2005

The financial departments (bureaus) and competent departments of commerce of all provinces, autonomous regions, cities directly under
the central government and the cities specifically designated in the state plan, the Bureau of Finance and Bureau of Commerce of
Xinjiang Production and Construction Corps, and all Chinese economic and commercial institutions abroad and all enterprises under
the central authorities:

The Ministry of Finance and the Ministry of Commerce jointly promulgated the Circular of the Ministry of Finance and the Ministry
of Commerce on the Support of the Prior Period Expenses of Overseas Investment in Resource and Foreign Economic Cooperation Project
in 2004 (Cai Qi [2004] No.176, hereinafter referred to as the Circular) with a view to implementing the “going out” strategic spirit
of the Sixteenth National Congress of the CPC, encouraging and supporting the enterprise with comparative advantage to conduct overseas
investment in resource and to use overseas resources to develop foreign economic technologic cooperation, after deliberation, related
issues are supplemented as follows in accordance with the requirements of business:

I.

The foreign economic cooperation project concerning resource as referred to in Article 1 of the Circular means the foreign contract
projects conducted in overseas resource field, the foreign contract projects with the resource as means of payment or the foreign
contract projects purporting to obtain the resource exploiting, developing and use right.

II.

Paragraph 5 of article 4 of the Circular stipulates that “the registration of overseas enterprise or the concluding time of contract
shall be between January 1, 2004 and December 31, 2004”, and in considering the real circumstances and the continuity of business,
this paragraph is amended to be “the registration of overseas enterprise or the concluding time of contract shall be between January
1, 2003 and December 31, 2004”

III.

With respect to other projects concerning resource rather than the projects specially supported, the enterprise may submit application;
the Ministry of Finance and the Ministry of Commerce will conduct whole consideration of the support of special projects.

IV.

The submitting time of applying material is postponed for 15 days with a view to enhancing the application of enterprise and the dissemination
and preliminary examination by local authorities in charge. The enterprise shall prepare and submit materials in strict accordance
with the provisions of documents and the requirements in the attachment. The subordinated enterprises to the enterprises directly
under the central authority shall be examined and submitted in a unified way by the group.

V.

In order to decrease the workload in the application of the enterprise, the application request submitted jointly by all authorities
at provincial level shall be delivered to the Ministry of Finance (Department of Enterprise) and the Ministry of Commerce (Department
of Planning and Finance), one copy of the specific applying material may be submitted together with the application request to the
Ministry of Commerce (Department of Planning and Finance).

It is thereby notified.

The attachment:

1.

The project-compiling guide

2.

The account for application of enterprise

3.

The Opinion of Chinese Economic and Commercial Counselor’s Office in (location)

4.

Schedule of the fees in the preliminary stage of the overseas investment in resource and the foreign economic cooperation project

5.

The Summary of the preliminary examination of the fees at preliminary stage of the overseas investment of resource kind and the foreign
economic cooperation project

Attachment 1:The Project-Compiling Guide

I.

The enterprise shall, depending on projects, bind up all submitted materials to volumes in the way as the accounting books are bound
up;

II.

The material for each project shall include but not limited to the following material.

(1)

Cover, the contents of the cover include: the nature of the project (overseas investment or economic cooperation); the name of the
project (the location of the project, the name of the mine, and the name of the overseas enterprise [Chinese and English]); the name
of the project applying enterprise (with common seal).

(2)

The list of the materials of the project submitted.

(3)

The application report of the project. The application shall include: the basic information of the enterprise; the basic investment
of the project (or contractual amount), the total prior period expenses and the amount applied for support, etc.

(4)

An account for the application of the project (see attachment 2).

(5)

The business license of the project applying enterprise.

(6)

The approval certificate of related authority for overseas investment project or for project contract and relevant certificate for
passing annual examination.

(7)

The business license registered in the country where the project is located (Chinese and English).

(8)

The account material of the economic and commerce counselor’s office of China in the country where the project is located.

(9)

The approval certificate of foreign exchange administrative authority for foreign exchange verification and fund remittance.

(10)

The record table of the overseas mine resource development project.

(11)

The audited report of the applying enterprise of 2003 and 2004.

(12)

The project feasibility study report (Chinese).

(13)

The investment (economic cooperation project) contract (only provide the Chinese and English version of the relevant part concerning
the prior period expenses).

(14)

The schedule of the prior period expenses (see attachment 4).

(15)

The prior period expenses proof of the project, including, payment voucher, accounting voucher, fees payment contract, the payment
voucher with a single fee exceeding 100,000RMB shall add common seal on the copies thereof.

III.

The materials submitted by the provincial authorities (including the enterprise under central authority, the same below) shall include
the following contents:

(1)

The application report of preliminary fees jointly submitted to the Ministry of Finance and the Ministry of Commerce.

(2)

The Summary of the prior period expenses of the overseas investment in resource and the foreign economic cooperation project (see
attachment 5)

(3)

The materials of the project applying enterprise that has been bound up to volumes.

htm/e04110.htmAttachment 2

￿￿

Attachment 2:

The Account for the Application of Enterprise

 

Name of the applying enterprise

￿￿

 

 

Name of the legal representative

￿￿

the registration place of enterprise

Province city

Address

￿￿

Post code

￿￿

The applicant declares earnestly that:

1. This time the applicant applies for the support of the prior period expenses of     project,
all materials    pages submitted;

2. The applicant has been legally registered and has independent legal person status and operated legally;

3. All documents, bills and vouchers and materials submitted by the applicant are accurate, real, complete and valid;

4. All duplicate materials and copies are verified and in complete consistent to the reserved and original;

5. The applicant undertakes to accept necessary check and examination by relevant authorities for the examination
of this application.

The legal representative of the applying enterprise or the authorizer: (signature)

Seal of the applying enterprise:

Date:  mm-dd-yy

Bank account No.

￿￿

Bank account No.

￿￿

Name of deposit bank

￿￿

Address of deposit bank

￿￿

Linkman 

￿￿

Telephone

￿￿

E-mail

￿￿

Mobile phone

￿￿

Fax

￿￿

￿￿

￿￿

￿￿￿￿Note: 1. The signature column of legal representative or the authorizer of the applying enterprise shall be singed by hand, name
stamp is invalid;

￿￿￿￿2. Where singed by the authorizer, the original copy of power of attorney signed by the legal representative and sealed with the
common seal of the company shall be submitted;

￿￿￿￿3. The information of the bank account shall be the account of the company and for prior period fund. Please fill in it correctly.

￿￿

Attachment 3:

The Opinion of Chinese Economic and Commercial Counselor’s Office in (location)

 




 Name of project

￿￿

City where the project situates

￿￿

The sum of the investment (contract)

 
Ministry of Finance, The State Administration of Taxation
2005-05-26

 



CIRCULAR ON MANAGEMENT ISSUES CONCERNING EXEMPTION OF BUSINESS TAX FROM INCOMES OF FOREIGN ENTERPRISES AND INDIVIDUALS FROM TRANSFER OF TECHNOLOGIES INTO CHINA AFTER CANCELLATION OF TAX ADMINISTRATIVE EXAMINATION

the State Administration of Taxation

Circular on Management Issues concerning Exemption of Business Tax from Incomes of Foreign Enterprises and Individuals from Transfer
of Technologies into China after Cancellation of Tax Administrative Examination

Guo Shui Han [2005] No. 652

The local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities
under separate state planning:

As to the follow-up management issues concerning the exemption of business tax from the incomes of foreign enterprises and individuals
from the transfer of technologies into China after the cancellation of tax administrative examination and approval, the unapproved
items occurred prior to the implementation of the present Notice shall still be subject to the previous provisions, according to
Article 18 of the Notice of the State Administration of Taxation on the Follow-up Management Issues after Cancellation and Delegation
of Some Taxation Administrative Examination and Approval Items Relating to Foreign-funded Enterprises, Foreign Enterprises and Foreign
Individuals (No. 80 [2004] of the State Administration of Taxation) (hereinafter referred to as the Notice). For the purpose of facilitating
all places to implement the aforesaid provision, you are hereby notified of the following supplementary provisions:

The unapproved items occurred prior to the implementation of the present Notice shall, no matter when the contract is concluded and
whether the fee for technology transfer is paid to the foreign counterpart or not, be subject to Article 12 of the present Notice,
and the examination and approval formalities shall be exempted. If the business tax has been paid, the taxpayer may, upon the strength
of the technology transfer approval document approved by the administrative department of the state as well as the technology transfer
contract, go to a taxation organ responsible for the taxes collection to go through the tax offset or tax refund formalities, according
to Item (b) of Paragraph 3 of Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Tax
Issues Related to the Implementation of the Decision of the CPC Central Committee and State Council on Strengthening Technical Innovation,
Development of High-tech and Realization of Its Industrialization (No. 273 of the Ministry of Finance).

The above-mentioned unapproved items refer to the tax deduction or exemption applications that have been accepted by a tax organ but
for which the examination and approval formalities have been gone through completely, as well as the technology transfer contracts
for which the technology transfer fees have actually been paid to the foreign counterparts before July 1, 2004.

The State Administration of Taxation

June 23, 2005

 
the State Administration of Taxation
2005-06-23

 



ARCHIVAL-FILING MATERIALS FOR PROJECT APPLICATION OF MEASURES FOR THE IMPLEMENTATION OF THE ADMINISTRATION OF AUTOMOBILE BRAND SALES

Issued by the General Office of the Ministry of Commerce (MOFCOM)

Circular of General Office of the Ministry of Commerce on Printing and Distributing Archival-filing Materials for Project Application
of Measures for the Implementation of the Administration of Automobile Brand Sales

No.28 [2005] of the Ministry of Commerce

The competent departments of commerce of all provinces, autonomous regions, municipalities directly under the Central Government,
cities specifically designated in the state plan and Xinjiang Production and Construction Corps:

With a view of ensuring the smooth implementation of Measures for the Implementation of the Administration of Automobile Brand Sales
(hereinafter referred to as the Measures) and further clarifying relevant requirements of archival-filing materials for project application,
in accordance with the relevant provisions of the Measures, we have formulated Archival-filing Materials for Project Application
of Measures for the Implementation of the Administration of Automobile Brand Sales, which is hereby printed and distributed to you
and shall be implemented accordingly. Relevant work relating to the establishment of automobile general distributor and brand distributors
with foreign investment shall be in the charge of the Department of Foreign Investment Administration; relevant work relating to
archival-filing of automobile general distributor and brand distributors shall be in the charge of the Department of Market System
Development.

Contact person of the Department of Foreign Investment Administration: Xing Yunfeng

Telephone: 65197393

Fax: 65197322

Contact person of the Department of Market System Development: Cai Yong, Chen Yuehong

Telephone: 85226393 85226390

Fax: 65129571

General Office of the Ministry of Commerce of the People’s Republic of China

May 30th, 2005

Archival-filing Materials for Project Application of Measures for the Implementation of the Administration of Automobile Brand Sales

I.

Materials that shall be submitted in the event of establishment (including merging and altering business scope) of automobile general
distributor with foreign investment

1.

Submission letter of enterprise group specifically designated in the state plan/provincial commerce competent department where the
enterprise to be established is located.

2.

Application signed by all investors for enterprise establishment, mainly including:

(1)

General situation of the project: enterprise name; place of registration and address of branches; total investment, registered capital;
basic information about all investors, their financial contribution proportions and modes; business scope, size and term.

(2)

Construction and supporting content: primary facilities; origins of the commodities, purchase and delivery mode; plan of environmental
protection and fire control.

(3)

Professional automobile sale capacity analysis: marketing survey, sales plan, sales promotion by advertising; network construction
and guide thereof; production service, technical training and consultancy; material content, institutional framework, personnel arrangement
and structure of parts supply and logistic management.

Therein, the layout, size and schedule shall be specified for network construction.

3.

Letter of Authorization of Automobile General Distributor issued by the automobile production enterprise (please refer to appendix
1 for the sample, the same below). Therein, where the automobile production enterprise is an overseas enterprise, the enterprise
registration certificate (photocopy) and legal representative certificate (photocopy) shall be provided.

4.

Contract, articles of association and its appendixes of the enterprise to be established (foreign-invested enterprise shall submit
articles of association only).

5.

Credit letter of banks, registration certificate (photocopy) and legal representative certificate (photocopy), and where the foreign
investor is individual, identification certification shall be provided.

The audit reports of the last year of all the investors that are audited by accounting firms.

6.

Evaluation report of the state-owned assets that the Chinese investors propose to invest in Chinese-foreign equity joint venture and
Chinese-foreign contractual joint venture in commercial fields.

7.

Member list of board of directors of the foreign-invested commercial enterprise to be established and letters of accreditation by
directors of all investors.

8.

Notice issued by the administrative department for industry and commerce on advance approval of enterprise name.

II.

Materials that shall be submitted in the event of establishment (including merging and altering business scope) of automobile brand
distributors with foreign investment

1.

Submission letter of enterprise group specifically designated in the state plan/provincial commerce competent department where the
enterprise to be established is located.

2.

Application signed by all investors for enterprise establishment, mainly including:

(1)

General situation of the project: enterprise name; place of registration and addresses of branches; total investment, registered capital;
basic information about all investors, their financial contribution proportions and modes; business scope, size and term.

(2)

Construction and supporting content: numbers of branches (stores included) to be established, business place; the store newly established
shall provide the opinion that conforms to urban development plan and is issued by local competent department of commerce; primary
facilities; origins of commodities, purchase and delivery mode; plan of environmental protection and fire control.

(3)

Analysis of automobile business scope and size that corresponds to the field, facilities and professional technicians.

3.

Letter of Authorization of Automobile Brand Distributor (please refer to appendix 2 for the sample, the same below) issued by the
automobile supplier (automobile production enterprise or automobile general distributor, the same below). Therein, in the event of
operation of import automobile, Letter of Authorization of Automobile Brand Distributor that is issued by automobile general distributor
within the territory of China shall be provided.

4.

Contract, articles of association and its appendixes of the enterprise to be established (foreign-invested enterprise shall submit
articles of association only).

5.

Credit letter of banks, registration certificate (photocopy) and legal representative certificate (photocopy) of all investors, and
in case that the foreign investor is individual, identification certification shall be provided.The audit reports of the last year
of all the investors that are audited by accounting firms.

6.

Evaluation report of the state-owned assets that the Chinese investors propose to invest in Chinese-foreign equity joint venture and
Chinese-foreign contractual joint venture in commercial fields.

7.

Member list of board of directors of the foreign-invested commercial enterprise to be established and letters of accreditation by
directors of all investors.

8.

Notice issued by the administrative department for industry and commerce on advance approval of enterprise name.

9.

House rent agreement (photocopy) and/or usufruct certificate documentation (photocopy) of land that the proposed store uses, with
the exception of store whose business place is less than 3,000 sq.m..

III.

Materials that an automobile supplier and a brand distributor shall put on file

1.

Archival-filing materials that an automobile supplier authorizes the automobile general distributor and brand distributors to use
and sell (in accordance with Article 35 of the Measures): Automobile Supplier Authorization Information Archival-filing and Registration
Sheet (see appendix 3).

2.

Before October 1, 2005, archival-filing materials that automobile sales enterprise are determined as automobile general distributor
or brand distributors by automobile supplier prior to April 1, 2005 (in accordance with Article 36 of the Measures):

(1)

Enterprise business license (photocopy, the same below).

(2)

Sedan cars business approval documentation issued by state relevant departments (photocopy).

(3)

Letter of Authorization of Automobile General Distributor and Letters ofAuthorization Automobile Brand Distributors issued by automobile
supplier.

(4)

Sheet for Archival-filing and Registration of Automobile General Distributor Information (see appendix 4, the same below) and Sheet
for Archival-filing and Registration of Automobile Brand Distributor Information (see appendix 5, the same below).

3.

Archival-filing materials of automobile general distributor and brand distributors newly established (including merging and altering
business scope)(in accordance with Article 34 of the Measures):

(1)

Enterprise business license.

(2)

Sheet for Archival-filing and Registration of Automobile General Distributor Information and Sheet for Archival-filing and Registration
of Automobile Brand Distributor Information.



 
Issued by the General Office of the Ministry of Commerce (MOFCOM)
2005-05-30

 






INTERIM MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF BONDED LOGISTICS CENTERS (TYPE A)

General Administration of Customs

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

No. 129

The Interim Measures of the Customs of the People’s Republic of China for the Administration of Bonded Logistics Centers (Type A),
which were deliberated and adopted at the executive meeting of the General Administration of Customs on June 6, 2005, are hereby
promulgated and shall come into force as of July 1, 2005.

Director General Mou Xinsheng

June 23, 2005

Interim Measures of the Customs of the People’s Republic of China for the Administration of Bonded Logistics Centers (Type A)

Chapter I General Provisions

Article 1

For the purpose of adapting to the development of modern international logistics and regulating the administration of bonded logistics
centers (type A), the import and export of goods and business operations of those bonded warehousing logistics enterprises by the
customs, the present Measures are formulated according to the Customs Law of the People’s Republic of China and the relevant laws
and administrative regulations of the state.

Article 2

The term “bonded logistics centers (type A) (hereinafter referred to as logistics centers) ” as mentioned in the present Measures
refers to the customs supervision places as approved by the General Administration of Customs, which are operated by legal person
enterprises within the territory of China to exclusively undertake business operations of bonded warehousing logistics.

Article 3

The logistics centers shall, be classified into public logistics centers and self-use logistics centers on the basis of their service
ranges.

The term “public logistics centers” refers to the customs supervision places that are operated by the legal person enterprise within
the territory of China, which exclusively undertake the business operation of warehousing logistics and provide a comprehensive service
of bonded warehousing logistics services to the society.

The term “self-use logistics centers” refers to the customs supervision places that are operated by the legal person enterprises that
only provide bonded warehousing logistics services to themselves or internal group members thereof.

Article 4

Goods that fall in the following categories may be stored into logistics centers upon approval of the customs:

(1)

Domestic export goods;

(2)

Transit goods and international transfer goods;

(3)

Goods as temporarily stored by foreign enterprises;

(4)

Export and import goods for processing trade;

(5)

Materials supplied for international shipping and aircrafts and parts and components for maintenance of international ships and aircrafts;

(6)

Imported consignments of parts and components for maintenance of foreign products;

(7)

Ordinary trade goods that have not gone through customs clearance; or

(8)

Any other goods as approved by the customs that haven’t gone through the customs clearance.

An enterprise that operates logistics center shall carry out its business operation of bonded warehousing logistics according to the
range of goods for storage and catalogues of commodities as approved by the customs.

Chapter II Establishment of Logistics Centers

Article 5

The logistics centers shall be established in those places with large international logistic demand and convenient communications
where the customs supervision is convenient to be carried out.

Article 6

An enterprise that operates a logistics center shall satisfy the following qualifications:

(1)

It has been registered by the administrative department of industry and commerce and has the status of a legal person;

(2)

Its registered capital shall be not less than RMB 30 million yuan;

(3)

It has the ability to pay taxes to the customs and to handle any other legal liabilities;

(4)

It has a business place for goods storage and has the right of land use of the business place. Where the entity leases any land or
place from any other person for business operation, the leasing term shall be not less than 3 years;

(5)

Where an entity engages in any storage of commodities subject to special licensing, it shall hold the prescribed special license;

(6)

Where an entity operates a self-use logistics center, the annual import and export amount (including the deep processing carry-over)
in eastern regions shall not be less than US $0.2 billion and that in the mid-western regions shall not be less than US $50 million;
and

(7)

It shall have a management system that meets the requirements of the customs supervision and an accounting system that pursuant to
the provisions of the Accounting Law.

Article 7

An enterprise that operates a logistics center shall satisfy the following qualifications when applying for the establishment of a
logistics center:

(1)

It meets the requirements of supervision, planning and construction of logistics centers by the customs;

(2)

The warehousing area of a public logistics center (including a yard) shall be not less than 20,000 square meters when it is located
in the eastern regions and shall be not less than 5, 000 square meters when it is located in the mid-western regions;

(3)

The warehousing area of a self-use logistics center shall be not less than 4,000 square meters when it is located in the eastern regions
and shall be not less than 2, 000 square meters when it is located in the mid-western regions;

(4)

It shall establish a computerized management system that meets the requirements of the customs supervision, provide terminal equipments
for the query of data by the customs, and get connected to the customs through the platform of “electronic port” in light of the
certification means and data standards as prescribed by the customs in order to realize the data exchange and information pooling
between the customs and such departments as state taxation and foreign exchange on an uniform platform;

(5)

It shall establish such supervision and office facilities as safety segregation facilities, video supervision and control system that
comply with the requirements of the customs supervision; and

(6)

It shall observe such laws, administrative regulations, rules and relevant provisions of the state in as land administration, planning,
fire control, security, quality inspection and environmental protection.

Article 8

An enterprise that applies for the establishment of any logistics center shall file a written application to the customs directly
affiliated to General Administration of Customs and submit the following materials that are affixed with the enterprise’s seal:

(1)

Application Form (See Attachment 1 for the format);

(2)

Opinion of the people’s government at the municipal (districted municipality) level (enclosed with the feasibility report)

(3)

A photocopy of the enterprise’s constitution;

(4)

A photocopy of the business license of the enterprise as a legal person;

(5)

A photocopy of the identity certification of the legal representative thereof;

(6)

A photocopy of the taxation registration certificate;

(7)

A photocopy of the certification of its opening bank;

(8)

Such credit certification documents as the capital verification report as provided by an accounting firm;

(9)

Documents on the internal management system of a logistics center;

(10)

The certification document verifying its location selection complies with the overall planning of land use and its geographic location
map and plane planning chart; and

(11)

A photocopy of the registration certificate of declaration operation by a declaration entity.

Article 9

An application for the establishment of a logistics center shall be filed to and accepted by the customs directly affiliated to General
Administration of Customs and shall be reported to the General Administration of Customs for examination and approval.

Article 10

An enterprise shall apply to the customs directly affiliated to General Administration of Customs for inspection and acceptance within
1 year as of the approval as granted by the General Administration of Customs for its establishment of a logistics center. The customs
directly affiliated to General Administration of Customs shall carry out the examination and inspection according to the provisions
of the present Measures in collaboration with such departments as taxation and foreign exchange at the provincial level.

Where a logistics center is accepted as eligible upon inspection, the General Administration of Customs shall verify it and issue
the Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection (See Attachment 2 for the format) and the Registration
Certificate of Bonded Logistics Centers (Type A) (See Attachment 3 for the format) to the enterprise and issue a signboard of bonded
logistics center (type A) (See Attachment 4 for the sample) as well.

Only after it passes the inspection and acceptance shall a logistics center carry out its business operation.

Article 11

Where an enterprise that has been granted the approval for the establishment of a logistics center fails to apply for the inspection
and acceptance in timely due to any justifiable reason, the term for inspection and acceptance may be extended upon the approval
of the customs directly affiliated to General Administration of Customs. However, the extension shall be not more than 6 months.
In case of any special situation requiring a second extension, it shall be reported to the General Administration of Customs for
approval.

Where an enterprise that has been granted the approval for the establishment of a logistics center fails to apply for the inspection
and acceptance within the time limit for no justifiable reason or fails to pass the inspection and acceptance, it shall be deemed
as withdrawing its application for establishment of a logistics center.

Chapter III Operation and Management of Logistics Centers

Article 12

A logistics center shall not be subleased or lent to any other entity for operation, neither shall any sub-warehouse center be set
up.

Article 13

An enterprise that operates a logistics center may carry out the following operations:

(1)

Bonded warehousing of import or export goods and any other goods that haven’t gone through the customs clearance;

(2)

Provision of circulating simple processing and value-adding service for stored goods;

(3)

Global purchase and international allocation and distribution;

(4)

Transit trades and international transfer business; and

(5)

Any other international logistic business operation as approved by the customs.

Article 14

An enterprise that operates a logistics center may not carry out any of the following business operations in its logistics center:

(1)

Commercial retail;

(2)

Production, processing and manufacture;

(3)

Maintenance, renovation and dismantlement;

(4)

Storage of any goods as prohibited by the state from being imported and exported or any other goods as restricted by the state from
being imported and exported that may harm public security, public sanitation or health, public morality or order;

(5)

Any other goods that shall not enjoy any bonded policy as expressively prescribed by laws and administrative regulations; or

(6)

Any other business operation that is irrelevant to logistics centers.

Article 15

The person responsible for and the personnel of a logistics center shall be familiar with the relevant laws and administrative regulations
of the customs and shall abide by the provisions on the customs supervision.

Chapter IV Customs Supervision of Logistics Centers

Article 16

The customs shall carry out a dynamic supervision and control of the goods, articles and transportation vehicles into or out of a
logistics center by such means as networking supervision, video supervision and control, on-spot verification, etc..

Article 17

The customs shall carry out a network of supervision on logistics centers through computers. A logistics center shall establish a
computerized management system that meets the requirements of the customs and get connected to the customs, form complete and authentic
electronic data for the import, export, transfer and storage of goods for the purpose of ensuring that the customs may conduct such
supervisory work as the inquiry, statistics, collection, exchange and verification of the data of relevant business operations.

Article 18

The administrative customs shall carry out a distance supervision of logistics centers through the video supervision system.

Article 19

The valid term of the Registration Certificate of Bonded Logistics Centers (Type A) is 2 years.

An enterprise that operates a logistics center shall go to the customs directly affiliated to General Administration of Customs to
go through the formalities of applying for the postponement of examination 30 days before the expiration of each valid term of the
Registration Certificate of Bonded Logistics Centers (Type A).

Where an enterprise that operates a logistics center applies for the postponement of examination, it shall submit the following documents
that are affixed with the seal of the enterprise.

(1)

A photocopy of the balance sheet and income statement of the current year, which have been audited by an accounting firm;

(2)

The original of the Declaration Registration Certificate;

(3)

A photocopy of the business license that has been pasted with the mark of passing the annual inspection of the current year by the
administrative department of industry and commerce and a photocopy of the business license of the enterprise as a legal person;

(4)

The report on the business operation of import and export by the enterprise; and

(5)

Any other materials as required by the customs.

An extension of 2 years may be granted to an enterprise that passes the examination.

Article 20

Where a logistics center needs to alter such matters as name, address, warehousing area of its operator, the relevant enterprise shall
file an application to the customs directly affiliated to General Administration of Customs and it shall be reported to the General
Administration of Customs for examination and approval. Any other matter regarding alteration shall be reported to the customs directly
affiliated to General Administration of Customs for archival filing.

Article 21

Where an enterprise that operates a logistics center fails to carry out its business operation for consecutive 6 months without any
justifiable reason, it shall be deemed that the said enterprise has revoked its application for the establishment of a logistics
center. The customs directly affiliated to General Administration of Customs shall report it to the General Administration of Customs
for dealing with the formalities for deregistration and withdraw the Acceptance Certificate of Bonded Logistics Centers (Type A)
upon Inspection and Registration Certificate of Bonded Logistics Centers (Type A).

Where an enterprise that operates a logistics center terminates its business operation due to any reason, the logistics center shall
file a written application and go through the formalities for writing-off and return the Acceptance Certificate of Bonded Logistics
Centers (Type A) upon Inspection and Registration Certificate of Bonded Logistics Centers (Type A) upon the examination and approval
of the General Administration of Customs.

Article 22

The storage term for the bonded goods in the logistic center shall be 1 year. In case of justifiable reasons, an extension may be
granted and the extension shall not exceed 1 year except special circumstances.

Chapter V Customs Supervision of Goods into or out of Logistics Centers

Section I Goods as Transported between Logistics Centers and Borders Beyond

Article 23

Any goods that is transported between a logistics center and border beyond shall be subject to the relevant formalities at the customs
in charge of the logistics center. Where a logistics center and a port are not subject to the administration of the same customs,
the relevant formalities shall be handled in the port customs upon the approval of the administrative customs.

Article 24

Where any goods is transported between a logistics center and border beyond, no administration of import or export quota or licensing
shall be applied except for those goods that are subject to the passive export quota control or any international treaty as attended
and concluded by the People’s Republic of China or unless it’s otherwise prescribed clearly by the state,.

Article 25

Where any goods is transported from a border beyond into a logistics center, the tariff and import link taxes levied by the customs
on behalf of other authorities thereof shall be handled according to the following provisions:

(1)

Those goods as listed in Article 4 of the present Measures shall be given the bonded treatment;

(2)

Where an enterprise that operates a logistics center imports office appliance, transportation tools and life consumption articles,
etc. for self-use, or machines, loading or unloading equipment, management equipment, etc. that are required by comprehensive logistics
services, the relevant formalities shall be gone through in accordance with relevant provisions on and taxation policies of import
and export goods.

Section II Goods as Transported between Logistics Centers and Domestic Places

Article 26

Where any goods in a logistics center is collected across customs areas, the formalities thereof may be handled at the customs in
charge of the logistics center or the relevant formalities may be handled according to other provisions of the customs.

Article 27

An enterprise may transport in or out goods batch by batch and make the monthly declaration collectively according to the provisions
of the customs upon the approval of the administrative customs. However, the collective declaration shall not be handled across the
year.

Article 28

Any transportation of goods from a logistics center into domestic places shall be deemed as an import and the formalities for import
declaration shall be gone through in accordance with the actual trading forms and the actual situations; where the goods is subject
to licensing administration, the relevant enterprise shall provide effective license certificates to the customs; where any import
or export goods is subject to collective declaration, the tariff rate and foreign exchange rate as applied on the day when the customs
accepts the declaration of each import or export of goods shall be applied.

Article 29

Any transportation of goods from domestic places into a logistics center shall be deemed as an export and the formalities for export
declaration shall be handled. Where the export tariff is required, it shall be paid according to the relevant provisions; as for
the goods that is subject to the licensing administration, the effective license certificates of export shall be provided to the
customs.

For the goods transported from a domestic place into a logistics center that was imported earlier, the domestic consignor shall go
through the formalities for declaration at the customs and the goods shall be subject to the inspection and release of the administrative
customs. The tariff collected and import link taxes levied by the customs on behalf of other authorities shall not be refunded.

The formalities shall be gone through according to the following provisions unless it is otherwise governed by laws and administrative
regulations:

(1)

The customs shall sign and issue the certification of the declaration form of export goods for the handling of export refund under
any of the following circumstance:

1.

The goods as transported from a domestic place into a logistics center has gone through the formalities for declaration;

2.

For any export goods in transit, the customs at the consignment place has received the return receipt of transit verifying that the
transit goods has entered the logistics center from the customs in charge of the logistics center; or

3.

Domestic machines, loading or unloading equipment, management equipment, inspection and testing equipment, etc. that are transported
from a foreign country into the logistics center for the self-use of the enterprise.

(2)

The customs shall not sign and issue the certification of the declaration form of export goods for the handling of export refund under
any of the following circumstances:

1.

Articles for daily use and transportation vehicles that are transported from a domestic place into the logistics center for the self-use
of the enterprise that operates the logistics center;

2.

Machines, loading or unloading equipment, management equipment, inspection and testing equipment, etc. that are transported from a
domestic place into a logistics center for the self-use of the enterprise that operates the logistics center; or

3.

The transportation of goods between bonded logistics centers and between bonded logistics center and such special customs supervision
areas or customs supervisory bonded places as export processing areas, bonded logistics parks or areas, logistics centers (type B),
and export supervisory warehouses where the policy of tax refund in the warehousing link of domestic goods is applied.

Article 30

The enterprises shall go through the formalities for export refunds according to the measures for the administration of tax collection
by the State Administration of Taxation and shall go through the formalities for the receipt and payment of foreign exchange according
to the relevant measures for the administration of foreign exchange by the State Administration of Foreign Exchange.

Article 31

For goods falls in the following categories, the tariff and import link taxes as levied by the customs on behalf of other authorities
as an agent may be exempted in the transportation into the territory of China by way of entering a logistics center:

(1)

Parts and components that are used for free maintenance of relevant foreign products within the guaranteed period and that are in
conformity with the relevant provisions on non-compensated goods;

(2)

Materials as used for international shipping and aircraft; or

(3)

Any other tax-free goods as prescribed by the state.

Article 32

The transportation of goods between bonded logistics centers and such special customs supervision areas or customs supervisory bonded
places as bonded areas, export processing areas, bonded logistics parks or areas, logistics centers (type A or B), bonded warehouses
and export supervisory warehouses shall be governed by relevant provisions.

Chapter VI Legal Liabilities

Article 33

Where any damage or destruction is done to the bonded warehousing goods in the storage period, the enterprise that operates a logistics
center shall pay the taxes of those goods damaged or destroyed to the customs according to law and shall bear relevant legal liabilities
except the case of force majeure.

Article 34

As for any violation of the present Measures, the customs shall make punishments according to the Customs Law of the People’s Republic
of China and the Regulation on the Implementation of Administrative Sanctions of the Customs of the People’s Republic of China. Where
a crime is constituted, the violators shall be subject to criminal liabilities according to law.

Chapter VII Supplementary Provisions

Article 35

Definitions of terms in the present Measures:

The term “circulating simple processing and value-adding services” refers to the general term of such simple supplementary operations
as grading and classification, dismantling and selecting, separate packing, measuring, combination package, fixing films, adding
shipping marks, mark labeling, changing package and assembling.

The term “international transfer goods” refers to the goods that are consigned from abroad, reloaded onto transportation vehicles
sailing on international navigation lines in a transfer port and continuously transported to the designated port of a third country
or district thereafter.

Article 36

The power of interpreting the present Measures shall remain with the General Administration of Customs.

Article 37

The present Measures shall come into force as of July 1, 2005.

Attachment:

1.

Application Form for Bonded Logistics Centers (Type A)(Omitted)

2.

Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection (Omitted)

3.

Registration Certificate of Bonded Logistics Centers (Type A)(Omitted)

4.

Signboard of Bonded Logistics Centers (Type A)(Omitted)



 
General Administration of Customs
2005-06-23

 






CIRCULAR ON FURTHER ADJUSTING EXPORT TARIFFS ON TEXTILES AS FROM JUNE 1, 2005

The News Office of the Ministry of Finance

Circular on Further Adjusting Export Tariffs on Textiles as from June 1, 2005

The News Office of the Ministry of Finance

May 30, 2005

Customs Tariff Commission of the State Council decides to adjust export tariff of textiles as of June 1, 2005. Details are now announced
as follows:

1.

Export tariffs are exempted for 78 categories among 148 textile categories that have had export tariffs imposed as from January 1,
2005. Export tariffs of products that were arranged to be increased or decreases as of June 1, 2005 shall also be exempted.

2.

Export tariff of Flax Single Yarn (under Tariff No. 53061000) is exempted.

With the above-mentioned adjustment and export tariffs of two textile categories (under Tariff No. 61179000, 62179000) that were exempted
as of May 20, 2005, there total 81 textile categories that shall be exempted from export tariff imposition as from June 1, 2005.
Details are listed in the Appendix.

htm/e04056.htmAppendix

￿￿

￿￿

Appendix:

Product List with Export Tariff Exemption as of June 1,2005

￿￿

Serial Number

Tariff No.

Trade Name

1

53061000

Flax Single yarn

2

61031900

knitted or woven male western-style suits of other textile materials

3

61032200

cotton knitted or woven male casual suits

4

61032300

synthetic fibre knitted or woven male casual suits

5

61032900

knitted or woven male casual suit of other textile materials

6

61034200

cotton knitted or woven male trousers, overalls etc.

7

61034300

 synthetic fibre knitted or woven male trousers

8

61034900

knitted or woven male trousers of other textile materials

9

61041200

 cotton knitted or woven female western-style suits

10

61041900

 knitted or woven female western-style suits of other textile materials,

11

61042200

 cotton knitted or woven female casual suits

12

61042300

synthetic fibre knitted or woven female casual suits

13

61042900

knitted or woven female casual suits of other textile materials

14

61046200

cotton knitted or woven female trousers, overalls, etc

15

61046300

 synthetic fibre knitted or woven female trousers

16

61046900

knitted or woven female trousers of other textile materials

17

61051000

cotton knitted or woven male shirts

18

61052000

chemical fibre knitted or woven male shirts

19

61059000

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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