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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

 



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

 






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

1

 

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2

 

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3

 

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4

 

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5

 

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6

 

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7

 

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8

 

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9

 

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￿￿

10

 

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￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

11

 

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￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

12

 

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿

￿￿￿￿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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CIRCULAR OF MINISTRY OF COMMERCE, CHINA EXPORT& CREDIT INSURANCE CORPORATION CONCERNING UTILIZING EXPORT CREDIT INSURANCE TO SUPPORT THE DEVELOPMENT OF NAME BRAND EXPORT

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

 



LETTER OF REPLY OF THE GENERAL OFFICE OF THE STATE COUNCIL REGARDING THE ESTABLISHMENT OF NEW EXPORT PROCESSING ZONES INCLUDING SHANGHAI JIADING

General Office of the State Council

Letter of Reply of the General Office of the State Council regarding the Establishment of New Export Processing Zones including Shanghai
Jiading

Guo Ban Han [2005] No. 53

The General Administration of Custom,

Your “Proposal on the Establishment of New Export Processing Zones” [Shu Jia Fa [2005] No. 204] has been received and approved by
the State Council, and we hereby release our response as follows:

1.

The establishment of following new export processing zones has been approved: Shanghai Jiading export processing zone, Guangdong Nansha
export processing zone, Huizhou export processing zone, Yunnan Kunming export processing zone, Jiangshu Changzhou export processing
zone, Wuzhong export processing zone, Wujiang export processing zone, Yangzhou export processing zone, Changshu export processing
zone, Sichuan Mianyang export processing zone, Liaoning Shenyang (Zhangshi) export processing zone, Jiangxi Jiujiang export processing
zone, Hebei Langfang export processing zone, Hunan Chenzhou export processing zone, Zhejiang Cixi export processing zone, Fujian
Fuzhou export processing zone, Fuqing export processing zone and Quanzhou export processing zone.

2.

The construction of the above-listed export processing zones shall be carried out in strict compliance with stipulations in the “General
Office of the State Council Response regarding the Establishment of Pilot Export Processing Zones” (Guo Ban Han [2000] No. 37). Each
export processing zone shall plan and construct strictly within the four boundaries (see attachment) approved. You shall notify relevant
local people’s governments for earnest preparation work and join with relevant ministries for examination and acceptance after they
become eligible. In consideration of the fact that the provincial development zones in which the nine export processing zones of
Jiangshu Wuzhong, Wujiang, Yangzhou, Changshu, Jiangxi Jiujiang, Hebei Langfang, Hunan Chenzhou, Zhejiang Cixi and Fujian Quanzhou
are located have not passed the national elimination and rectification of development zones, you shall notify relevant local people’s
governments to submit their detailed construction plans for the joint examination and approval by the State Development and Reform
Commission and yourself before the commencement of construction, and after the completion of examination and acceptance of relevant
provincial development zones and with the confirmation of the location of export processing zones inside the provincial development
zones.

3.

You shall, together with other ministries, by drawing on past experiences, perfecting the entry and exit mechanism of export processing
zones and formulating detailed operative procedures, evaluate the developmental conditions of the established export processing zones,
and promote the healthy and orderly development of export processing zones. In the meantime, you shall study and take measures to
introduce into export processing zones the eligible new trade projects involving the processing of imported raw materials for the
concentrated regulatory administration on processing trade, preventing the construction of redundant projects and enhancing the quality
of work.

General office of the State Council

June 3, 2005

 
General Office of the State Council
2005-06-03

 



1234Page 3 of 4

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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