General Criminal Law

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

 







RELEVANT ISSUES CONCERNING THE AMENDMENT TO THE OPERATIVE PROCEDURES OF FOREIGN EXCHANGE ADMINISTRATION IN OVERSEAS COMMODITY FUTURES HEDGING BUSINESS OF STATE-OWNED ENTERPRISES (FOR TRIAL IMPLEMENTATION)

State Administration of Foreign Exchange

Relevant Issues Concerning the Amendment to the Operative Procedures of Foreign Exchange Administration in Overseas Commodity Futures
Hedging Business of State-Owned Enterprises (For Trial Implementation)

Hui Fa [2005] No. 34

The branches and offices of the State Administration of Foreign Exchange of the People’s Republic of China (SAFE) in all provinces,
autonomous regions, municipalities directly under the Central Government, as well as the SAFE branches of municipalities of Shenzhen,
Dalian, Qingdao, Xiamen and Ningbo, as well as various head offices of designated foreign exchange banks with Chinese investment:

With a view to meeting the needs of the development of overseas commodity futures hedging business of state-owned enterprises, and
further regulating the administration of foreign exchange under commodity futures hedge, in according with pertinent provisions of
the Measures for the Administration of Overseas Futures Hedging Business of State-owned Enterprises (hereinafter referred to as the
Measures), relevant issues concerning the amendment to the Operative Procedures of Foreign Exchange Administration in Overseas Commodity
Futures Hedging Business of State-Owned Enterprises (For Trial Implementation) (hereinafter referred to as the Operative Procedures)
are hereby supplemented as follows:

1.

In Respect of the Confirmation of Risk Exposure and Its Administration

For an enterprise (hereinafter referred to as the enterprise) which has been granted a license of overseas commodity futures hedging
business as issued by the China Securities Regulatory Administration (hereinafter referred to as the CSRC) and has had its risk exposure
verified by the CSRC in the current year, it shall, if intending to apply for confirmation formality of risk exposure in the current
year, file an application to a local SAFE branch or office (hereinafter referred to as the local SAFE branch) for handling the formality
of risk exposure confirmation in the current year on presentation of the following materials:

(1)

a notice indicating the SAFE will verify risk exposure for an enterprise holding a license of overseas commodity futures hedging business
in the current year;

(2)

a written report showing the confirmation of the said enterprise for risk exposure in the current year, including the amount to be
applied for, development of import & export businesses under futures hedging business of the said enterprise, its preparation for
and present situation development of futures hedging business as well as the plan for the current year. Where it is not the first
time for the enterprise to file an application, utilization of risk exposure in the last year shall also be submitted; and

(3)

a bank statement of balance in the domestic special futures foreign exchange account by the end of last year or the end of preceding
month from the date of application.

The local SAFE branch shall report application materials to the SAFE within 7 working days from the receipt of all such materials
for the confirmation of the said enterprise’ risk exposure by the SAFE. The enterprise shall, within 1 month from receiving a confirmation
letter, apply to the local SAFE branch for dealing with the formalities of recordation and registration (modification) as well as
opening a foreign special futures account after being examined and approved.

Subject to the Measure, the aggregate of the enterprise’s deposits under futures and futures compensation amount as remitted accumulatively
in the current year, and the balance in its foreign futures special account by the end of last year shall not exceed the amount of
risk exposure confirmed in the current year. The enterprise shall present to the domestic opening bank a bank sheet of the balance
in its foreign special futures account by the end of last year, and such bank shall strictly control the amount of funds allowed
to be remitted by the said enterprise and handle well the registration of customs duty.

The enterprise may, within the scope of risk exposure confirmed by the SAFE, purchase foreign exchanges according to its demands as
the funds under overseas futures hedge.

2.

With Regard to the Administration of Domestic and Foreign Special Futures Accounts

In case the municipality where the enterprise is registered is different from that in which the local SAFE branch is located, a domestic
special futures account may be opened with a designated foreign exchange bank in a place where the said enterprises is registered
and the local SAFE branch in the same place shall also be responsible for the daily administration of foreign exchange. Except an
approval document of remitted initial deposit as set forth in Paragraph 2 of Article 4 hereof, an application for all other opinions
and official replies required to be made in written form shall, after initially examined by a SAFE central sub-branch in the place
where the enterprise is registered, be transmitted to a SAFE branch according to provisions.

Whereas the CSFC has made adjustment to approaches for the administration of the enterprises’ selection of overseas brokering institutions,
the material for examining an enterprise to open a foreign special futures account with the approval from local SAFE branch shall
be adjusted as: a written notice of the CSRC on the recordation filed by an enterprise with the CSRC concerning the foreign futures
brokering company under the selection of such enterprise.

3.

Permission to Enterprises for Retaining the Petty Cash Funds in a Certain Sum

As required by the business, local SAFE branch may ratify petty cash funds in foreign exchange at a certain rate in domestic and foreign
special futures accounts and retain such petty cash funds in the domestic special account for circulation and use, among which the
petty cash funds retainable in an foreign account shall refer to the petty cash funds other than those which must be retained by
any enterprise with a license for holding a position according to the requirements of any futures brokering institution. The aggregate
of upper limits of petty cash funds in foreign exchange retainable in a foreign special account at the same point in time shall not
exceed more than 30% of the amount of risk exposure in foreign exchange of the current year. Such aggregate shall be earmarked for
specified purpose only and be forbidden from appropriation.

4.

With Respect to the Administration of Initial Deposit Remittance

Any enterprise, if required to remit overseas the initial deposit under commodity futures, may apply to the opening bank for completing
the formality of initial deposit remittance on presentation of documents issued by the local SAFE for approving an application letter,
written agreement of account opening which is signed by the said enterprise and a foreign futures brokering company (institution)
that is approved by the local SAFE branch to open foreign special accounts. The accumulative amount of initial deposits remitted
in one year shall not exceed 20% of the amount of risk exposure in foreign exchange of the same year. If a rate higher than 20% is
required under special circumstances, such circumstances shall be firstly examined by the local SAFE branch and then reported to
the SAFE for approval.

In case an enterprise open a domestic special futures account with a bank of a place where it is registered, the initial deposit shall
be approved and remitted by the SAFE central sub-branch in the same place subject to the provisions mentioned above.

An enterprise must, within 1 month after the remittance of initial deposit, feed back to the local SAFE branch the receipt certificate
(Any of its original, duplicate, fax and email is acceptable.) which is affixed by the official seal of a collection brokering company.

5.

In View of the Feedback of Information and Date Statistics Thereof

Any enterprise and bank shall, within the first 10 working days in a month, be obliged to respectively submit to the local SAFE branch
the Monthly Report of Stock of Overseas Futures Hedging Foreign Exchange Funds (See Schedule 1 For Enterprises Use) of the preceding
month as well as the cash position statement issued by a domestic futures brokering institution from the end of last statement, with
an official seal of the said enterprise thereof (bank statement of balance); Monthly Report of Flow of Overseas Futures Hedging Foreign
Exchange Funds (Schedule 2 For Banks Use).

Any enterprise and bank shall be ordered to make rectification within a time limit by the local SAFE branch if failing to feed back
the date and information set out in Item 4 and 5 during a period without any justifiable reason; Where still failing to make rectification,
such enterprise and bank shall be imposed a penalty ranging from RMB 10 to 30 thousand yuan by the local SAFE branch according to
the seriousness of respective circumstances.

Subject to Article 5 of the Operative Procedures, the local SAFE branch shall, within 20 working dates from the end of each season,
report a Quarterly Report of Overseas Futures Hedging Foreign Exchange Funds (Schedule 3) of the current season in the form of disk
and written text to the SAFE.

6.

This Circular shall become effective as of the date of promulgation. For any business prior to such date, pertinent formalities such
as the application for limit of petty cash funds in foreign exchange deposited in foreign special futures account, shall be made
up within 1 month from the date of such promulgation. In case of any conflict between other provisions and provisions hereof, the
latter shall prevail. Anything not covered herein shall be subject to the Operative Procedures and the Circular of the State Administration
of Foreign Exchange on Several Issues Concerning the Opening Domestic Accounts in Foreign Exchange under Operative Procedures of
Foreign Exchange Administration in Overseas Commodity Futures Hedging Business of State-Owned Enterprises (For Trial Implementation).
Special circumstances shall be submitted to the SAFE for examination level by level.

Schedules:

1)

Monthly Report of Stock of Overseas Futures Hedging Foreign Exchange Funds (For Enterprises Use)

2)

Monthly Report of Flow of Overseas Futures Hedging Foreign Exchange Funds (For Banks Use)

3)

Quarterly Report of Overseas Futures Hedging Foreign Exchange Funds (For SAFE branches and offices)

State Administration of Foreign Exchange

May 17, 2005

htm/e04095.htmSchedule 1

￿￿

Schedule 1:

Monthly Report of Stock of Overseas Futures Hedging Foreign Exchange Funds (For Enterprises Use)

(Date of Filling￿￿￿￿)

￿￿

￿￿￿￿(Official Seal)￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿ ￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Unit: Ten Thousand USD

Month

Balance of Risk Exposure

Limit of Petty Cash Funds Retainable in Domestic and Foreign Special Futures Accounts

Total Sum of Petty Cash Funds Having Been Retained in the Foreign Special Account by the End of Last Month

Balance in the Domestic Special Account by the End of Last Month

Total Sum of the Balance in the Foreign Special Account by the End of Last Month

Details of the Balance in the Foreign Special Account by the End of Last Month

1

2

3

4

5

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￿￿￿￿Responsible Person: ￿￿￿￿￿￿￿￿￿￿￿￿Contact Tel: ￿￿￿￿￿￿￿￿￿￿￿￿Handling Person: ￿￿￿￿￿￿￿￿￿￿￿￿Contact Tel:

￿￿￿￿Note: 

￿￿￿￿￿￿￿￿1. Details of the Balance in the Foreign Special Account by the End of Last Month: Any enterprise may, based on its own actual situations,
fill and report the information about the balance which is deposited in the account having been opened by a foreign futures brokering
company and has been approved by the SAFE branch.

￿￿￿￿￿￿￿￿2. Total Sum of the Balance in the Foreign Special Account by the End of Last Month= Item 1+Item2+Item3+Item4+Item5+Item￿￿￿￿. as Set
Forth in the Details of the Balance in the Foreign Special Account by the End of Last Month

 

Schedule 2:

Monthly Report of Flow of Overseas Futures Hedging Foreign Exchange Funds (For Banks Use)

 

￿￿￿￿Filling and Reporting Entity:￿￿(Official Seal)￿￿￿￿￿￿￿￿￿￿￿￿(Date of Filling:￿￿￿￿￿￿￿￿￿￿￿￿)￿￿￿￿￿￿￿￿￿￿￿￿Unit of Currency: Ten Thousand USD






Serial No.

Name of Enter- prise

Con- firmed Amount of Risk Expo-

sure in This Year

Balance of Risk Expo- sure by the End of

This Month

Domestic Account

Fund Flow

Balance in the Foreign Special Account by the End of Last Year

Re- marks

Ac- count No.

Balance by the End of Last Month

Amount Trans- ferred In for This Month

Amount of the Pur- chased Foreign Ex- change

Other Incomes of This Month

Expendi- tures of This Month

Amount of Settled Foreign Exchange

Balance by the End of This Month

Accumu- lative Expendi- tures of This Year

Bene- ficiary

Ac- count No.

Use

 

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SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE POLICY RELATING TO THE INDIVIDUAL INCOME TAXES ON DIVIDENDS AND BONUSES

Ministry of Finance, State Administration of Taxation

Supplementary Notice of the Ministry of Finance and the State Administration of Taxation on the Policy Relating to the Individual
Income Taxes on Dividends and Bonuses

Cai Shui [2005] No. 107

The departments (bureaus) of public finance, bureaus of state taxation and local taxation of all provinces, autonomous regions, municipalities
directly under the Central Government and the cities under separate state planning and the public finance bureau of the Xinjiang
Production and Construction Corps:

For the purpose of further regulating the taxation policies of dividends and bonuses, and reinforcing tax revenue collection and management,
the implementation requirement on the exemption or reduction policies of individual income taxes concerning dividends and bonuses
is hereby notified as follows:

1.

For any income from dividend and bonuses as actually allotted by a listed company after the day of document Cai Shui [2005] No. 102
is distributed (including the very day of distribution), the reduction policies of individual income taxes shall be implemented according
to the provisions of document Cai Shui [2005] No. 102.

Those listed companies, which meet the aforesaid provisions and have paid individual income taxes in light of the full amount of dividends
and bonuses, may refund the excessive taxes as collected to individual investors according to the tax-reduction policies as prescribed
by document Cai Shui [2005] No. 102; where the tax amount has been turned in to the state treasury, it shall be refunded according
to the prescribed procedure by the taxation and public finance departments and shall be returned to individual investors by withholding
enterprises.

2.

For the incomes from dividend and bonuses of securities investment funds by allocation of a listed company, the taxable income shall
be calculated at a reduced rate of 50% when the withholding agent withholds the individual income taxes according to the provisions
of document Cai Shui [2005] No. 102.

3.

The term “listed companies” as mentioned in document Cai Shui [2005] No. 102 refers to the listed companies that are listed for the
transaction on the Shanghai Stock Exchange or Shenzhen Stock Exchange

Please implement it accordingly.

Ministry of Finance

State Administration of Taxation

June 24, 2005

 
Ministry of Finance, State Administration of Taxation
2005-06-24

 




NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON DOING A GOOD JOB IN EVALUATING THE INCOME TAX PAYMENT OF FOREIGN-FUNDED ENTERPRISES AND FOREIGN ENTERPRISES






Notice of the State Administration of Taxation on Doing a Good Job in Evaluating the Income Tax Payment of Foreign-funded Enterprises
and Foreign Enterprises

Guo Shui Han [2005] No. 449

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

Recently, the State Administration of Taxation has distributed the Measures for the Administration of Tax Payment Evaluation (for
Trial Implementation) (Guo Shui Fa [2005] No. 43, hereinafter referred to as the Measures for the Evaluation of Tax Payment), which
has uniformly regulated the means and measures for the evaluation of the payment of various taxes. In particular, it has clarified
the analysis indexes and the instructions thereof for the evaluation of the income tax of foreign-funded enterprises and foreign
enterprises (hereinafter referred to as the foreign￿Crelated enterprises). In order to effectively do a good job in the evaluation
of the income tax payment of foreign-related enterprises, we hereby notify the relevant issues as follows:

I.

Basic Requirements

Since 1998, in order to strengthen the administration of the income tax of foreign-related enterprises, the tax authorities at all
levels have successively carried out comparatively standardized measures concerning the settlement and payment, examination and evaluation
of taxes and tax audit on foreign-related enterprises and have, at the same time, tried out the measures of joint tax audit on those
foreign-related enterprises with trans-regional business operations. The practice of all these years has proved that the aforesaid
measures are effective means to strengthen the administration of tax sources. With the incessant elevation of the computerized administration
of tax collection, it is necessary to form a working system with the information pool, orderly operation and mutual promotion for
the administration of the income tax of foreign-related enterprises so as to form a resultant force of administration by means of
integrating administrative resources and further enhance the work efficiency. Therefore, all regions shall regard the popularization
of the evaluation of tax payment as an opportunity, organically blend the aforesaid measures for administration so as to make good
use of their respective advantages and avoid any conflict with each other or any overlapping work in the evaluation of tax payment.

1.

Including the examination and evaluation of taxes into the standardized evaluation of tax payment. The Measures for the Evaluation
of Tax Payment are a more standardized work procedure and a more scientific analysis index system designed on the basis ofsummarizing
the examination and evaluation of the taxes of foreign-relatedenterprises that are pointed to those weak links arising in the administrationof
tax sources in recent years and which also set a higher requirement for an in-depth analysis on the declared materials. Therefore,
the evaluation of tax payment is also an extension of the examination and evaluation of taxes and all regions shall include the examination
and evaluation of taxes into the evaluation of tax payment.

2.

Combining the settlement and payment of the income tax of foreign-related enterprises with some of the links in the evaluation of
tax payment. The settlement and payment of the income tax of foreign-related enterprises shall not only include filling in an annual
declaration form and paying its taxes in a timely manner by the enterprise, but also include carrying out a general examination on
the enterprise￿￿s annual declaration forms and other relevant materials and handling the refund of overpaid annual income taxes and
repayment of any deficiency by the tax authority. Therefore, the same requirements shall be applicable to the general examination
and the preliminary evaluation of tax payment and desk analysis in the work of settlement and payment, so that they shall be carried
out in a combined manner.

3.

Taking the foreign-related tax audit as an important means of the evaluation of tax payment. The Audit Procedures for Foreign-related
Tax (hereinafter referred to as the Audit Procedures) has embodied the modern auditing techniques and scientific working procedures
and is a forceful means to carry out the daily inspections and provide high-quality services to the foreign-related enterprises for
the tax authorities, so that all regions may continue to bring the function of foreign-related tax audit into play and do a good
job in promoting the Audit Procedures. In order to enhance the capability of the qualitative and quantitative judgment on the authenticity
and accuracy of the tax declaration, the modern auditing techniques shall be applied to the link of desk analysis and the link of
on-site investigation and verification as well so as to organically combine the evaluation of tax payment and foreign-related tax
audit in the evaluation of the income tax of foreign-concerned enterprises,.

4.

The tax authority at a higher level may be responsible for the evaluation of the income tax of large-scale foreign-related enterprises.
As the organizational structure and business operations of large-scale foreign-related enterprises, especially those that have trans-regional
operations, are comparatively complicated, more standardized technical means shall be adopted in the implementation of the evaluation
of tax payment and the coordination of the tax authority at a higher level is needed for. According to the requirements as prescribed
in Article 3 of the Measures for the Evaluation of Tax Payment by all regions, for the purpose of evaluating the tax payment of
those large-scale foreign-related enterprises, if the desk analysis and on-site investigation and verification are needed, the administrative
department of international (foreign-related) taxation of the tax authority at a higher level in all regions shall take charge of
the organization and implementation based on the preliminary evaluation by the tax authority at the grass-root level.

II.

Concrete Work

As the administration of the income tax of foreign-related enterprises has a strong policy meaning, covers many aspects and boasts
a comparatively large number of work links, for which an annual settlement and payment shall be carried out and the daily examination
shall be conducted according to the Audit Procedures, we should, on the basis of an organic combination of the aforesaid work, do
a good job in the relevant links in the work of the evaluation of tax payment.

1.

The preliminary evaluation of tax payment. The preliminary evaluation shall refer to the procedure to carry out a general examination
on the accuracy of the declaring materials concerning the settlement and payment of the income tax of foreign-related enterprises.
In this phase, we should put emphasis on collecting and sorting out the declared information of taxpayers in all aspects on the basis
of ensuring the accuracy of the logical relationship within the declaration forms, and provide the source materials for forming the
basic data. All regions shall, before the end of May, carry out a preliminary appraisal and verification on the declared materials
of those foreign-related enterprises that have participated in the settlement and payment and shall put emphasis on the examination
in the following aspects:

(1)

Whether or not all items of declared materials are complete and ready; whether or not the declared data is in conformity with that
of tax payment.

(2)

Whether or not the main form of those declare forms of tax payment, the items in the annex form and the numbers as filled therein
are complete; whether or not the applicable tax items, rates and the calculation of numbers in all items are accurate; whether or
not the logical relationship between the main form and the annex form and between numbers and items is correct.

(3)

Whether or not the affiliated materials of tax declaration, namely, the formalities for declaration and approval, are authentic, accurate
and legal; and

(4)

Whether or not the difference between the number of tax declaration and that of accounting statements and the reason thereof, and
the adjustment of incomes, expenses, profits and other relevant items are in conformity with the provisions of laws and regulations
on tax collection.

2.

The desk analysis of the evaluation of tax payment. The desk analysis shall refer to the procedure to carry out an examination on
the reasonableness of declared materials concerning settlement and payment by using the evaluation and analysis index for the income
tax of foreign-related enterprises and the instructions thereof. In this phase, an evaluation of the current tax payment as declared
by the taxpayer shall be carried out to the tax-related information in the daily administration and, where any questionable point
is founded, an on-site investigation and verification shall be initiated, which may be carried out in the process of settlement and
payment or after the settlement and payment is concluded. The specific requirements are as follows:

(1)

The main objects of examination. We should conduct examination focused on the following enterprises. large-scale foreign-related enterprises,
profit-losing enterprises, enterprises of tax exemption, enterprises of tax reduction, zero-declaration enterprises, the enterprises
with comparatively low tax rate,the enterprises with trans-regional operations, the enterprises with comparatively low profitable
rate and the enterprises with associated transactions.

(2)

Measures for examination. We should make full use of the general analysis indexes and the analysis indexes and the instructions thereof
concerning the income tax of foreign-related enterprises in the Measures for the Evaluation of Tax Payment and at the same time,
we may use the measures for analytic review in the Audit Procedures to make an analysis on relevant indexes on the tendency and rates
as well as a comparison, find out those fields where any problem may exist, and provide clues for negotiation and on-site investigation
and verification and initiating an on-site investigation and verification.

(3)

The on-site investigation and verification for the evaluation of tax payment. The on-site investigation and verification shall refer
to the procedure to carry out an on-site examination on the authenticity of the materials as declared by a taxpayer in terms of those
questionable points as found in the phase of desk analysis. The on-site investigation and verification shall be conducted after the
work of settlement and payment is concluded. The relevant techniques and requirements regarding on-site auditing in the Audit Procedures
shall be applied to those foreign-concerned enterprises that have a comparatively mature financial and accounting system and a comparatively
large operating scale so as to enhance the technical content in the investigation and verification. At the same time, with regard
to the evaluation of the tax payment for those foreign-related enterprises that adopt an across-region operational mode and pay their
income taxes on a consolidated base, if an on-site investigation and verification is needed, it shall be conducted according to the
requirements of the Interim Measures for Joint Tax Audit on Foreign-related Enterprises as distributed by the State Administration
of Taxation.

(4)

The transfer of cases concerning the evaluation of tax payment. For any irregularity acts concerning tax collection or tax evasion
that shall be transferred to the tax investigation department and the administrative department of international taxation according
to the requirement of Measures on Evaluation of Tax Collection, all regions shall do a good job in transferring the working manuscript
of the evaluation of tax payment, data and materials. The State Administration of Taxation shall formulate concrete work procedures
for transferring cases based on the summarized experiences from different regions,. Where any doubtful point concerning tax evasion
of enterprise has been found before the on-site investigation and verification of the evaluation of tax payment, the administrative
department of international taxation at any level may carry out the anti-tax-evasion investigation in the phase of the investigation
and verification of the evaluation of tax payment.

III.

Measures for Guaranty

The evaluation of tax payment is an important measure to strengthen the administration of tax sources, lower taxation risks and optimize
the services of tax payment. All regions shall regard the evaluation of tax payment as an important means to strengthen the administration
of the income tax of foreign-related enterprises and effectively enhance the quality of work.

1.

Strengthening the leadership and clarifying functions and duties. According to the provisions of the Measures for the Administration
of the Evaluation of Tax Payment, the administrative departments of international (foreign-related) taxation of the tax authorities
at all levels shall be responsible for the supervision and control on the industry tax of the income tax of foreign-related enterprises,
for the establishment of index system for the evaluation of tax payment, for the calculation of early warning value of index, and
for the formulation of the specific evaluation measures, and shall provide the basis and guidance for the implementation of the evaluation
of tax payment of the tax authorities at the grass-root level. Therefore, the tax authorities at all levels shall strengthen their
leadership over the evaluation of the income tax payment of foreign-funded enterprises and the administrative departments of international
(foreign-related) taxation at all levels shall take effective measures to perform the aforesaid duties.

2.

Actively piloting and improving the indexes. The analysis indexes and how to use them in evaluating the income tax payment of foreign-related
enterprises as affiliated to the Measures for the Administration of the Evaluation of Tax Payment is abstracted on the basis of summarizing
the experiences of some provinces and municipalities. As there exist differences in the aspect of registered capital, operating scale,
industrial features and financial management, etc. whether they are scientific and reasonable or not shall be testified by more practice.
Therefore, all regions shall, on the basis of making full use of the present indexes system, pay more attention to collecting and
reporting the problems as found in the practical operations to the State Administration of Taxation timely so as to provide a decision-making
basis for establishing and improving a more scientific and reasonable indexes system. The State Administration of Taxation shall,
on the basis of summarizing the experiences of all regions, formulate specific measures for the evaluation of the income tax payment
of foreign-related enterprises.

3.

Intensifying examination and enhancing performance. Before the end of each year, all regions shall make a written summary on the evaluation
of the income tax payment of foreign-related enterprises (including the general situation, existing problems and the opinions and
suggestions for resolution), fill the Statistic Form for the Evaluation of the Income Tax Payment of Foreign-related Enterprises
(See attachment) and report it to the State Administration of Taxation (department of international taxation). The State Administration
of Taxation shall make assessment on the work of all regions and circulate it. At the same time, all regions shall establish a working
system for level-by-level assessment and regard the evaluation of tax payment as a main content of the annual work assessment.

Attachment: Statistic Form for the Evaluation of the Income Tax Payment of Foreign-related Enterprises

State Administration of Taxation

May 17, 2005




Attachment

￿￿

￿￿

Attachment:

Statistic
Form for the Evaluation of the Income Tax Payment of Foreign-related Enterprises

￿￿

￿￿￿￿Name
of the declaration entity:                                     

Year:                           

   Unit: 10,000 yuan

Item

Number
of Enterprises

Adjustment
of the Taxable Income

Adjustment
of the Taxable Income

Actual
Amount as Turned into the State Treasury

 Adjustment
of Increase

Adjustment
of Decrease

Net
Increase
￿￿(Decrease)

Adjustment
of Increase

Adjustment
of Decrease

Net
Increase
￿￿(Decrease)

Tax
Amount

Late
Fee

Total

Number
of Settlement and Payment

 

 

Evaluation
of Tax Payment

Preliminary
Evaluation

 

 

 

 

 

 

 

 

 

 

Desk
Analysis

 

 

 

 

 

 

 

 

 

 

On-site
Investigation and Verification

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

Transfer

Transfer
to the Department of Tax Investigation

 

 

Transfer
to the Department of Anti-tax evasion

 

 

Total
of Transfer

 

Ministry of Commerce, China Export& Credit Insurance Corporation

Circular of Ministry of Commerce, China Export& Credit Insurance Corporation concerning Utilizing Export Credit Insurance to Support
the Development of Name Brand Export

Shang Mao Fa [2005] No. 332

In order to implement the spirit of the Central Committee of the People’s Republic of China and the State Council on accelerating
the cultivation of world famous name brand, implement the Directive Opinions on Supporting the Development of Name Brand Export (Shang
Mao Fa [2005] No. 124) issued by eight ministries including the Ministry of Commerce, accelerate the cultivation of autonomous name
brand cultivation, transform the increase mode of foreign trade, realize the sustainable development of foreign trade, the Ministry
of Commerce and China Export& Credit Insurance Corporation hereby notify the matters concerned utilizing foreign credit insurance
to support the development of name brand export as follows:

1.

The authorities in charge of commerce of all regions and the all the business offices of China Export& Credit Insurance Corporation
(hereinafter referred to as “Sinosure”) shall communicate with each other in time, understand the demand of the enterprises and study
the detailed measures concerning utilizing export credit insurance to support the development of name brand export.

2.

The authorities in charge of commerce of all regions shall coordinate with the local business offices of Sinosure to publicize the
functions of export credit insurance policy, encourage the enterprises listed in “name brand export under the preferred cultivation
and development” (hereinafter referred to as “name brand export enterprise”) to utilize export credit to develop international market
and internationalized operation.

3.

The business offices of Sinosure shall formulate special service plan for the name brand export enterprises within its jurisdiction,
giving specific support and reporting the relevant circumstances to the local authorities in charge of commerce.

4.

Where the name brand export enterprise is covered in export credit insurance, Sinosure shall, in accordance with the service life
hereof, render hereto the qualification of “preferred client” or “key client” enjoying the relevant supporting policy.

5.

Sinosure shall, by such new products as overseas investment insurance, overseas labor service insurance, provide preferential service
to name brand export enterprises for their establishment of research and development center, production base and marketing network

6.

Sinosure shall provide name brand export enterprises with such value-added services as national risk report, industrial analysis report
and risk management recommendation, appropriately provide more free or preferential credit information report, give priority to the
arrangement of “Sinosure Online” business operation and service system.

7.

Sinosure shall actively development new products, exploring new modes to provide insurance credit support in such linkages as production
originality and research& development, name brand marketing and extension, patent acquisition and protection.

8.

Such means as “special issues shall be solved specially in time” shall be taken to meet the individuation demand of the name brand
export enterprises.

All the units are required to comply with the spirit of the Circular in the process of their implementation. Once problems occur,
they shall inform the Ministry of Commerce (Department of Foreign Trade) and China Export& Credit Insurance Corporation (Department
of Business Development)

The Circular is hereby given.

Ministry of Commerce

China Export& Credit Insurance Corporation

June 24, 2005

 
Ministry of Commerce, China Export& Credit Insurance Corporation
2005-06-24

 




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...