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CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SUBMITTING THE STATEMENTS UNDER THE MEASURES FOR ADMINISTRATION OF THE REPORTS ON TRANSACTIONS OF LARGE-SUM AND DOUBTFUL FOREIGN EXCHANGE CAPITAL OF FINANCIAL INSTITUTIONS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Submitting the Statements Under the Measures for Administration of the
Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

HuiFa [2003] No. 42

March 18, 2003

The branches of the State Administration of Foreign Exchange (“SAFE”) and departments of foreign exchange in all provinces, autonomous
regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen,
and Ningbo of the SAFE, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the Construction
Bank of China, the Bank of Communications of China, the State Development Bank, the Import and Export Bank of China, the Agricultural
Development Bank of China, the CITIC Industrial Bank, the Everbright Bank of China, Hua Xia Bank, Guangdong Development Bank, Shenzhen
Development Bank, the Merchants Bank, the Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank:

With a view to ensuring the smooth implementation of Decree [2003] No. 3 of the People’s Bank of China, Measures for Administration
of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions (hereinafter referred
to as the Administration Measures), the SAFE has according to the Principles for Submission of the Statements under the Administration
Measures (see Attachment 1) formulated four Statements required to be filled in by financial institutions for performing anti-money-laundry
functions (see Attachment 2) and provided for the indicators for the Statements, the codes of the reporting and identification standards
and the transmission of electronic Statements (see Attachment 3 through 5). Here is to notify you of the relevant requirements:

I.

The financial institutions shall according to the provisions of the Administration Measures submit the transactions of large-sum and
doubtful foreign exchange capital by paper-based statements and electronic statements as of April 1.

II.

The SAFE shall according to the requirements of Attachment 1 through 4 to this Circular formulate the statements under the Administration
Measures into electronic template documents, and send them to its branches through the internal electronic information transmission
system. Upon receipt of the electronic template documents, the branches shall timely transfer this Circular (including its Attachment
) and the electronic template documents to Chinese and foreign-invested banks (including the head offices of Chinese-invested banks)
and urban commercial banks, urban credit cooperatives, rural credit cooperatives and rural commercial banks in their jurisdictions.

III.

The financial institutions shall in strict accordance with the provisions of the Administration Measures and this Circular fill in
the statements carefully, guarantee the quality of the data in the statements and timely and accurately submit the paper-based statements
and the electronic statements. In case of any business problems occurred in work, please do not hesitate to contact with the Administrative
and Examination Department of the SAFE; and in case of any technological problems, please do not hesitate to contact with the Information
Center of the SAFE. The contact telephones are:

Administrative and Examination Department Anti-Money-Laundry Control Office: Lu Zheng by 68402106

Information Center Network Engineering Office: Wei Kun by 68402022

Information Center Application Development Office: Zhu Yong by 68402026

Attachment:

1. Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and
Doubtful Foreign Exchange Capital of Financial Institutions

2. Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital
of Financial Institutions (omitted)

3. Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions.

4. Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

5. Descriptions on the transmission of electronic Statements

Attachment 1:Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and
Doubtful Foreign Exchange Capital of Financial Institutions

I.

Submitting subjects:

The financial institutions and its branches and sub-branches, and the branches of the State Administration of Foreign Exchange (“SAFE”)
in all provinces, autonomous regions, and municipalities directly under the Central Government and its sub-branches in prefectures,
cities and counties where there are top-level corporate financial institutions are the submitting subjects.

The first-level branches and sub-branches in the capital cities of the provinces, autonomous regions, and municipalities directly
under the Central Government set up by the financial institutions are the principal submitting institutions, and in case no first-level
branches and sub-branches are set up in the capital cities of the provinces, autonomous regions, and municipalities directly under
the Central Government by the financial institutions, the headquarters of the financial institutions shall designate the principal
submitting institution.

The top-level corporate financial institutions set up in the prefectures, cities and counties shall perform their reporting functions
and obligations to the local branches, which shall be summarized by local branches before consolidated reporting to the branches
of the provinces, autonomous regions, and municipalities directly under the Central Government

II.

Submission procedures and time schedule:

The Administration Measures has provided for the principles territorial jurisdiction and double-way submission.

The branches and sub-branches of the financial institutions shall summarize the transactions of the large-sum and doubtful foreign
exchange capitals of the last month within the first five working days of each month, which should be submitted to the principal
submitting institutions by levels, and to the local branches and sub-branches of the SAFE at the same time.

Each principal submitting institutions shall summarize the transactions of the large-sum and doubtful foreign exchange capitals of
the last month in each province, autonomous region and municipalities directly under the Central Government within the first fifteen
working days of each month, which should be submitted to the branch of the corresponding province, autonomous region and municipalities
directly under the Central Government, and to the headquarters of each corresponding financial institutions.

The headquarters of each financial institution shall within the first five working days of each month submit the transactions of the
large-sum and doubtful foreign exchange capital incurred to itself of the last month to the local branches or sub-branches and shall
summarize all the transactions of the large-sum and doubtful foreign exchange capitals incurred in its whole jurisdiction of the
last month before submitting to the SAFE within the first working 20 days of each month.

The financial institutions shall verify and analyze the transactions of the large-sum and doubtful foreign exchange capital and in
case of finding any suspected crimes, reports thereof should be made to the local public security organ within three days and to
the local branches or sub-branches of the SAFE.

The branches of the SAFE in the provinces, autonomous regions, and municipalities directly under the Central Government shall within
the first 20 days of each month submit the summaries of the transactions of the large-sum and doubtful foreign exchange capital reported
by the financial institutions to the SAFE; and any transactions of foreign exchange capital involved in suspected crimes should be
transferred to the local public securities and submitted to the SAFE at the same time.

III.

Means of submission:

In case of the acts relating to the transactions of the large-sum and doubtful foreign exchange capital provided for in Article 8
through 10 in the Administration Measures, the financial institutions shall fill in and submit Statement 1, Statement 2 and Statement
3 each month respectively in the forms of paper-based documents and electronic files.

In case of any suspected money laundry found in verifying the transactions of foreign exchange capital as provided for by Articles
12 through 3 in the Administration Measures, the financial institutions shall timely fill in and submit the paper-based Statement
4 together with the relevant Attachment attached. Attachment 3:Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

I.

“Summarizing and submitting unit”, “submitting unit” and “code of submitting unit”

“Summarizing and submitting unit” and “submitting unit” should be filled in with the full name (as per the specimen seal impression)
of the financial institutions and their branches and sub-branches undertaking the foreign exchange business (hereinafter referred
to as the financial institutions), and the summarizing and submitting units refer to the financial institutions that summarize the
data information of their branches and sub-branches and directly make reports to the SAFE. The code of the submitting unit shall
be filled in as per the identity code (12 digits) of the financial institutions in the submission of the international payments.
The financial institutions without identity codes shall submit the data to the superior branches for filling and submission. The
basic units of the financial institutions that summarize, fill in and submit the transactions of large-sum and doubtful foreign exchange
capital are the sub-branches in prefectures, cities and counties.

II.

Enterprise

Enterprises refer to enterprise and institutional units (including foreign-invested enterprises), state organs, social communities,
military units, and other domestic institutions in the territory of the PRC, foreign units assigned to China, as well as institutions
outside China with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the offshore accounts in the
territory of the PRC or with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the onshore accounts
in the territory of the PRC.

III.

Name of enterprise

To be filled in as per the full name registered by the enterprises with the administration of commerce and industry and other administrative
authorities in country where it is located, or as per the name indicated on the valid certificates that includes its accurate, complete
ad standard name or on the approval document and certification of the competent authorities. Institutions outside China shall fill
in the standard full name in Chinese and English at the same time in the format of “name in Chinese (and name in English)”.

IV.

Enterprise code

To be fill in as per the 9-digit organizational and institutional code (GB code) promulgated by the National Administrative Center
of Organizational and Institutional Codes of China State General Administration of Quality Supervision, Inspection and Quarantine
(AQSIQ), whereby the English letter should be in capital, and with the short line of “�” deleted, for instance, the original code
of “25186820�X” would be written as “25186820X”.

V.

Date of occurrence of transactions

In the format of “yyyy/mm/dd”, among which “yyyy’ refer to year, “mm” refers to month, and “dd” refers to day, and in case the month
or the day is less than two digits, 0 would be added before the actual number of the month or the day. For instance, January 1, 2003
would filled in as “2003/01/01”.

VI.

Code of reporting or identification standards

There are 60 items corresponding to the reporting standards of the transactions of the large-sum foreign exchange capital and the
reporting and identification standards of the transactions of the doubtful foreign exchange capital under the Administration Measures,
which are provided for fixed 4-digit codes accordingly (see Attachment 4), and the financial institutions shall fill in the fixed
codes according to the content of the actual transactions.

VII.

Code of transactions

To be filled in as per the transaction codes of the monitoring system of international payments statistics.

VIII.

Payments of capital

Incomes of foreign exchange capital would be filled in as “1”, and payment thereof should be filled in as “0”.

IX.

Bank account

The A/C number opened at banks by the enterprises according to law, including the number of offshore accounts.

X.

Transaction currencies and transaction volume

The transaction currencies should be filled in as the code of such currencies based on national standards (Abbreviation in English
as 3-digit capital letters) , and the transaction volume should be filled in the corresponding forms in the original currency and
conversion of USD. The conversion ratio shall adopt that of the month of filling and submission of the statement.

XI.

Transaction direction

Cross-border flow of the foreign exchange capital should be filled in with the national or regional code where the counterpart is
located (Abbreviation in English as 3-digit capital letters) based on national standards; and domestic transaction of capital requires
for filling in the code of the special economic zones, and the codes of special economic zones are as follows: general trade zone
(Z00), bonded zone (Z01), processing zone (Z020), and diamond exchanges (Z03).

XII.

Name and individual name

For residents, full name should be filled in as per the ID cards; and for non-residents, full name of the individual should be filled
in as per the passports.

XIII.

Nationality

According to the national standards, filled in with the national (regional) codes (Abbreviation in English as 3-digit capital letters).

XIV.

ID number

To be filled in with the ID card number of residents, number of the certificate of military officers, number of children on the household
register and the number of the passports of non-residents.

XV.

Number of bankcards or the number of saving account of foreign currency

When holding bank cards, to be filled in with the bank cards; when having the saving account of foreign currency, to be filled in
with the number of the saving account of foreign currency; when having both the bank cards, both numbers should be filled in with
the number of bank cards before and separated with “￿￿m the number of the saving accounts of foreign currency.

XVI.

Responsible person, undertakers and contact telephone

The responsible person should be filled in with the personnel in charge of the anti-money laundry department of the filling and submitting
units; the undertaker should be filled in with the person filling in and submitting the forms; and the contact telephone number refers
to that of the undertaker.

XVII.

Seal

For the “filling and submitting unit (seal)” in Statements 1 through 4, it refers to the seal of the anti-money laundry department
of the filling and submitting units). The “transferring unit (seal)” and the “receiving unit (seal)” in Statement 4 refer to the
seal of the anti-money laundry departments of the transferring unit and the receiving unit.

XVIII.

Legal representative and address

The legal representative refers to the full name of the legal representative registered with the administrative department of commerce
and industry and the address refers to that registered with the administrative department of commerce and industry.

XIX.

Contact person and contact telephone.

For the “contact person” in Statement 4, the full name of the relevant persons of the unit involved in the suspected circumstance
or the full name of the individual involved in the suspected circumstances may be filled in, and for the contact telephone, the telephone
of that person or that individual shall be filled in.

XX.

Transferring person. Receiving person and contact telephone

For the transferring person, the full name of the person of the administrative department of foreign exchange or the financial institution
who transfers the relevant materials to the public security department shall be filled in, for the receiving person, the full name
of the person of the public security department who receives the relevant materials to the administrative department of foreign exchange
or the financial institution shall be filled in, and for the contact person, the telephone of that transferring person or receiving
person shall be filled in.

XXI.

Total

Each statement shall summarize the sums of the “codes of the reporting standard or the identifying standards” and at the same time,
the amount of the “transaction volume (conversion into USD)” shall be summarized.

XXII.

Remarks

Other circumstance to be supplemented and described.

Attachment 4:Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

Item 1 of Article 8 ￿￿0801￿￿, Item 2 of Article 8 (0802);

Item 1 of Article 9 ￿￿0901￿￿, Item 2 of Article 9 ￿￿0902￿￿;

Item 3 of Article 9 ￿￿0903￿￿, Item 4 of Article 9 ￿￿0904￿￿;

Item 5 of Article 9 ￿￿0905￿￿, Item 6 of Article 9 ￿￿0906￿￿;

Item 7 of Article 9 ￿￿0907￿￿, Item 8 of Article 9 ￿￿0908￿￿;

Item 9 of Article 9 ￿￿0909￿￿, Item 10 of Article 9 ￿￿0910￿￿;

Item 11 of Article 9 ￿￿0911￿￿, Item 1 of Article 10 ￿￿1001￿￿;

Item 2 of Article 10 ￿￿1002￿￿, Item 3 of Article 10 ￿￿1003￿￿;

Item 4 of Article 10 ￿￿1004￿￿, Item 5 of Article 10 ￿￿1005￿￿;

Item 6 of Article 10 ￿￿1006￿￿, Item 7 of Article 10 ￿￿1007￿￿;

Item 8 of Article 10 ￿￿1008￿￿, Item 9 of Article 10 ￿￿1009￿￿;

Item 10 of Article 10 ￿￿1010￿￿, Item 11 of Article 10 ￿￿1011￿￿;

Item 12 of Article 10 ￿￿1012￿￿, Item 13 of Article 10 ￿￿1013￿￿;

Item 14 of Article 10 ￿￿1014￿￿, Item 15 of Article 10 ￿￿1015￿￿;

Item 16 of Article 10 ￿￿1016￿￿, Item 17 of Article 10 ￿￿1017￿￿;

Item 18 of Article 10 ￿￿1018￿￿, Item 19 of Article 10 ￿￿1019￿￿;

Item 20 of Article 10 ￿￿1020￿￿, Item 21 of Article 10 ￿￿1021￿￿;

Item 2 of Article 12 ￿￿1202￿￿, Item 3 of Article 12 ￿￿1203￿￿;

Item 1 of Article 13 ￿￿1301￿￿, Item 2 of Article 13 ￿￿1302￿￿;

Item 3 of Article 13 ￿￿1303￿￿, Item 4 of Article 13 ￿￿1304￿￿;

Item 5 of Article 13 ￿￿1305￿￿, Item 6 of Article 13 ￿￿1306￿￿;

Item 7 of Article 13 ￿￿1307￿￿, Item 8 of Article 13 ￿￿1308￿￿;

Item 9 of Article 13 ￿￿1309￿￿, Item 10 of Article 13 ￿￿1310￿￿;

Item 11 of Article 13 ￿￿1311￿￿, Item 12 of Article 13 ￿￿1312￿￿;

Item 13 of Article 13 ￿￿1313￿￿, Item 14 of Article 13 ￿￿1314￿￿;

Item 15 of Article 13 ￿￿1315￿￿, Item 16 of Article 13 ￿￿1316￿￿;

Item 17 of Article 13 ￿￿1317￿￿, Item 18 of Article 13 ￿￿1318￿￿;

Item 19 of Article 13 ￿￿1319￿￿, Item 20 of Article 13 ￿￿1320￿￿;

Item 21 of Article 13 ￿￿1321￿￿, Item 22 of Article 13 ￿￿1322￿￿;

Item 23 of Article 13 ￿￿1323￿￿, Item 24 of Article 13 ￿￿1324￿￿.

Attachment 5:Descriptions on the Transmission of Electronic Statements

According to the requirements for submission of the electronic statements provided for by the Administration Measures, the submission
channels and file names and formats of the electronic statements have been standardized as follows:

I.

Channels of transmission

1.

From commercial banks to the SAFE

After the electronic statements of the branches and sub-branches of the commercial banks have been submitted to the principal submitting
institutions by level, the principal submitting institutions shall consolidate and submit then to the local branches of the SAFE,
and to the head offices of the corresponding commercial banks before the head offices of the commercial bank submit them to the SAFE.
The head offices of commercial banks located in Beijing Municipality shall submit the electronic statements to Beijing Foreign Exchange
Administrative Department of the SAFE, which shall then submit them to the SAFE; and the head offices of commercial bank that are
not located in Beijing Municipality shall submit the electronic statements to the local braches of the SAFE, and the relevant branches
shall then submit them to the SAFE.

It is suggested that the commercial banks adopt the TXPT V310 (Communication platform software version V310) for submitting the electronic
statements to the SAFE, and TXPT has designated the following configuration methods for this application:

The application type (apptype) of this application has been designated as “FQ10” , and the sub-application type (sub_apptype) has
been designated as “00”, and the mode for opening the files has adopted the binary system (1).

The commercial banks may copy a new file from the transmission configuration file of the monitoring system of the international payments
statistics, correspondingly adjust the application type and sub-application types of the new file and designate the “remote path”
as “/fxq/”, thus forming the transmission configuration file of this application, which may be adopted for transmitting the relevant
electronic statements.

The branches of the SAFE adopt the file server in the firewall DMZ zone for receiving the files, with the receiving directory designated
as /fxq, and the power limits of the directory is Sybase. Thus, the branches shall add the directory of the corresponding power limits
to the file serve and add a line (with the content of “FQ1000###Sybase”) in the file of “/txpt/config/svcfile.sys”. The business
personnel of the branches of the SAFE may by use of the TXPT receive the files transmitted to the file services by commercial bank
in the computer for further processing. The “application type”, “sub-application type” and mode for filing opening in the TXPT receiving
configuration of the PC should be adjusted the same way.

2.

From branches of the SAFE to the SAFE

The internal electronic information exchanges of the SAFE shall adopt the internal electronic information transmission system of the
SAFE. The SAFE has designated as special email at fxq@inspect.safe for receipt of the electronic statements of such applications,
to which the branches may send the electronic statements.

II.

File names and formats

The file name of the application electronic statements consists of 24 digits, among which digits 1 through 6 refer to local codes,
digits 7 through 10 refer to bank codes, digits 11 through refer to bank sequence, digits 13 through 18 refer to codes of date in
the form of “yy (year)mm(month)dd(day)”, digits 19 through 20 refer to bill codes, and digits 21 through 24 refer to the bill sequence.

The local codes of digits 1 through 6 and the bank code of digits 7 through 10 adopt the codes allocated in the monitoring system
of international payments statistics.

The corresponding relations of bill codes are as follows:

01� � monthly statements of the transactions of large-sum foreign exchange capital of enterprises;

02� � monthly statements of the transactions of large-sum foreign exchange capital of individual residents and non-residents;

03�� monthly statements of the transactions of doubtful foreign exchange capital; and

Other codes should be determined by the branches and sub-branches of the SAFE at their own discretion.



 
The State Administration of Foreign Exchange
2003-03-18

 







ANNOUNCEMENT OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE

The State Administration of Foreign Exchange

Announcement of the State Administration of Foreign Exchange

[2003] No.1

April 15, 2003

According to the Decisions of the State Council on Canceling the First Batch of Administration Examination and Approval Projects (GuoFa
[2002] No.24) and the Decisions of the State Council on Canceling the Second Batch of Administration Examination and Approval Projects
and Altering the Administrative Methods for Some Administration Examination and Approval Projects (GuoFa [2003] No.5), the State
Administration of Foreign Exchange has cancelled 26 items to be administratively approved. The relative issues after these items
are cancelled for administrative approvals are hereby announced as follows:

I.

The “examination and approval of opening, altering and canceling accounts for foreign exchange loans in China” is canceled

The administration on the specific domestic accounts for foreign exchange loans shall be in accordance with Article 4 of the Circular
of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic Foreign
Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002.

II.

The “examination and approval of opening, altering and canceling accounts for B-share guarantee funds (hereinafter referred to as
“B-share transaction settlement fund account”) that opened at foreign-invested banks in China by securities companies” is canceled

When securities companies open or alter B-share transaction settlement fund accounts, Article 3 of Circular of the State Administration
of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange
Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented.

III.

Four items including “examination and approval of the conditions of Chinese organizations for long-and-medium-term loans in China”,
“examination and approval of the financial conditions of Chinese organizations for financing and leasing in China”, “examination
and approval of the time selection and financing conditions for issuing debts abroad” and “examination and approval of the financial
conditions for project financing ” are canceled

If Chinese organizations (including designated banks of foreign exchange) borrow long-and-medium-term loans, issue long-and-medium-term
foreign currency bonds or perform financial leasing and financing, the provisions in Article 1 of the Circular of the State Administration
of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange
Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented.

IV.

The “examination and approval of large-amount financing for overseas branches of Sino-capital financial organizations” is canceled

When the overseas branches of Sino-capital financial organization in China raise large amount of funds, the provisions in Article
2 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative
Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State
Administration of Foreign Exchange on April 1, 2003 shall be implemented.

V.

The “audit of the foreign exchange risks in overseas investments by domestic organizations” is canceled

According to the provisions in Article 4 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy
and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects
(HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003, the overseas investment risks
of domestic organizations shall not be audited and approved by the administrations of foreign exchange, and the auditing procedures
on the fund resources of overseas investments will be further simplified. For specific procedures, refer to the Circular of the
State Administration of Foreign Exchange on Simplifying the Examination of Foreign Exchange Capital Source of Investment Abroad (HuiFa
[2003] No.43).

VI.

The “examination and approval of guarantee funds for transferring back the profits of overseas investments” is canceled

According to the provisions in the Circular of the State Administration of Foreign Exchange on Guarantee Funds for transferring back
the profits of overseas investments (HuiFa [2002] No.110) promulgated by the State Administration of Foreign Exchange on November
12, 2002, the State Administration of Foreign Exchange will not collect the guarantee funds for transferring back the profits of
overseas investments.

VII.

The “examination and approval of prepayment or incidental charges under boarder trades” is canceled

The prepayment or incidental charges under boarder trades shall be in accordance with the provisions in Article 1 of the Circular
of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval on the Foreign Exchange in Current
Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April 1, 2003.

VIII.

The “examination and approval of the current account foreign exchange brought or remitted into China by individuals, which one-time
payment of foreign currency or changing for Renminbi equivalent of no less than $50,000” is canceled

If individuals need to draw foreign currencies or change them for Renminbi, the provisions in Article 2 of the Circular of the State
Administration of Foreign Exchange on Canceling Administrative Examination and Approval on the Foreign Exchange in Current Accounts
(HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

IX.

The “examination and approval of foreign exchange used for tax-free commodities and selling the tax-free commodities bought by tax-free
stores in RMB due to damages or overstock” is canceled

If the headquarter of the stores selling tax-free commodities in foreign exchange, or sell the commodities in RMB due to damages or
overstock, which will be paid abroad, the provisions in Article 3 of the Circular of the State Administration of Foreign Exchange
on Canceling Administrative Examination and Approval on the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated
by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

X.

The “verification of foreign exchange payments for the equipments under foreign-invested projects and foreign-funded equipments and
articles” is canceled

According to the Circular of the State Administration of Foreign Exchange and the General Administration of Customs Concerning Sales/Purchases
of Foreign Exchange and Verification by Presenting Custom Declaration Certificates for Imported Goods (HuiFa [2003] No.15), the designated
banks of foreign exchange or administrations of foreign exchange shall verify the declarations of the import which goods were imported
after May 1, 2002 as the “trades that may sell/purchase foreign exchange”. After the authentications of the declarations are verified
and put records in the Import Declaration Networking Verification System or are disposed for closing the cases, the sales/purchases
of foreign exchange and the verification can be performed according to the Administrative Provisions on Settlement, Sale and Purchase
of Foreign Exchange, the Interim Measures of Supervising the Verifications on Import Payments in Foreign Exchange and other related
provisions.

XI.

Three items including “verification and filing of letters of credit of over 90 days under import items”, “verification and filing
of collections of over 90 days under import items” and “verification and filing of arrivals of over 90 days under import items (excluding
prepayment over proportion or over amount) are canceled

If importers settle the payments in foreign exchange in a mode of “letter of credit of over 90 days, collection of over 90 days and
arrival of over 90 days (excluding prepayment over proportion or over amount), it may directly go to the designated banks of foreign
exchange for payments in foreign exchange according to the Circular of Further Regulating the Administrative Policies on Import and
Export Verification (HuiFa [2002] No.65) promulgated by the State Administration of Foreign Exchange on July 10, 2002, and the designated
banks of foreign exchange shall perform verifications according to the administrative provisions on sales/purchases in foreign exchange.

XII.

The “verification of opening, using and altering of foreign exchange accounts by insurance companies” is canceled

The insurance companies with approval for trading foreign exchange may, according to the Circular of the State Administration of Foreign
Exchange and China Insurance Supervision and Administration Committee on Promulgation and Implementation of the Interim Provisions
on Administration on Foreign Exchange for Insurance Operations (HuiFa [2002] No.95) promulgated by the State Administration of Foreign
Exchange and China Insurance Supervision and Administration Committee, open foreign exchange accounts, and shall report it to the
local administrations of foreign exchange for record within 10 working days after opening such accounts.

XIII.

The “audit of the counterfoils of verification forms provided by the exporters within 60 days after custom declaration” is canceled

Exporters shall, according to the Circular of Pilots for Networking Verification System for Export Proceeds Using Electronic Law Execution
at Ports (HuiFa [2001] No.7) promulgated by the State Administration of Foreign Exchange and General Administration of Customs on
January 22, 2001, submit the verification forms used for custom declaration to the local administrations of foreign exchange via
the “China Port Electronic System for Export Proceeds in Foreign Exchange”.

XIV.

The “verification of re-remittance (to the original remitter by individuals residing in China) of foreign exchange deposits remitted
from abroad” is canceled

If individuals re-remit the foreign exchange deposits to the remitters who remit the foreign exchange to the individuals, provisions
in Article 4 of the Circular of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval
on the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented. And, the Official Reply Concerning Remittance Abroad of Foreign Exchange Deposits of Individuals residing
in China and Alteration of Account Names of Foreign Exchange Accounts (HuiFu [2000] No.291) shall be repealed at the same time.

XV.

The “verification of transfers of foreign exchange within China by insurance companies and their branches” is canceled

For the capital transactions between insurance companies and its branches and between their foreign exchange accounts within the same
insurance companies, according to the provisions in the Circular of the State Administration of Foreign Exchange and China Insurance
Supervision and Administration Committee on Promulgation and Implementation of the Interim Provisions on Administration on Foreign
Exchange for Insurance Operations (HuiFa [2002] No.95) promulgated by the State Administration of Foreign Exchange and China Insurance
Supervision and Administration Committee, such transfers may be made within the banks of deposits provided that such transfers shall
be in accordance with the payment/proceed scope of the accounts.

XVI.

The “verification on the debtors repaying domestic foreign exchange loans to local banks using their own foreign exchange” is canceled

If debtors repay domestic foreign exchange loans to local banks using their own foreign exchange, the provisions in Article 4 of
the Circular of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic
Foreign Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002 shall
be implemented.

XVII.

The “verification of capital settlements of enterprises with foreign investment” is canceled

The verifications on capital settlements of enterprises with foreign investment shall be in accordance with the Circular of Reforming
the Administrative Method of Capital Settlement under Foreign-Investment Items (HuiFa [2002] No.59) promulgated by the State Administration
of Foreign Exchange on June 17, 2002 and the Circular of the State Administration of Foreign Exchange on Improving the Administration
of Foreign Exchange in Foreign Direct Investments (HuiFa [2003] No.30).

XVIII.

The “registration and verification of the domestic debtors for foreign exchange loans” is canceled

The Sino-capital financial organizations shall, when granting foreign exchange loans within China, implement the provisions of the
Circular of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic
Foreign Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002.

XIX.

The “verification of annual audits on the foreign exchange proceeds/payments of ocean fishing operations of ocean fisheries” is canceled

According to the Circular of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval on
the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April
1, 2003, the following provisions in the Interim Provisions on the Foreign Exchange Proceeds/Payments of Ocean Fishing Operations
of Ocean Fisheries (HuiFa [2001] No. 49) promulgated by the State Administration of Foreign Exchange and the Ministry of Agriculture
shall be repealed, including: Article 16 – “The administration of foreign exchange shall implement a system of annual audits on
the foreign exchange proceeds/payments of ocean fishing operations of ocean fisheries; Article 17 – “All branches of the administrations
of foreign exchange shall report the annual audit results as well as the information on sales/purchases of all local ocean fisheries
to the State Administration of Foreign Exchange before May 30 each year and make copies for local fishery administrations”; Article
18 – “The State Administration of Foreign Exchange shall inform the Ministry of Agriculture of the national annual audit results
as well as the utilization of foreign exchange by the ocean fisheries after the annual audits, and the Ministry of Agriculture shall
publicize the annual audit results to all the ocean fishery enterprises to establish a inter-supervision and impeachment among the
enterprises”.

XX.

The “verification of the over costs paid in foreign exchange out from the accounts of travel agencies for entry tours ” is canceled

According to the Circular Concerning Further Regulating the Administrative Policy on the Foreign Exchange Accounts under Current Accounts
(HuiFa [2002] No. 87) promulgated by the State Administration of Foreign Exchange on September 9, 2002, the account of a travel agency
for entry tours and for abroad tours shall be merged into one current account foreign exchange account. The travel agency may expend
directly from the this current account foreign exchange account without need to apply to local administration of foreign exchange
for approval.

XXI.

The “verification and approval of the administration of foreign exchange on the purchase of foreign exchange and by domestic foreign
exchange debtor and repaying loans at other locations” is canceled

If the debtors repay foreign exchange loans within China, the provisions in Article 5 of the Circular of the State Administration
of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic Foreign Exchange Loans (HuiFa [2002]
No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002 shall be implemented.

The specific procedures for the corresponding items after they are canceled for verification and approval have been specified in the
laws and regulations promulgated by the State Administration of Foreign Exchange, which can be referred via the governmental website
of the State Administration of Foreign Exchange or from the Announcements of the State Administration of Foreign Exchange.



 
The State Administration of Foreign Exchange
2003-04-15

 







CIRCULAR ON ISSUES CONCERNING IMPORTATION OF ALUMINUM OXIDE BY ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular on Issues Concerning Importation of Aluminum Oxide by Enterprises with Foreign Investment

WaiMaiYiZiTongJinHan [2003] No.132

February 19, 2003

The commissions (departments, bureaus) of foreign economic and trade of provinces, autonomous regions, municipalities directly under
the Central Government and municipalities separately listed on the State plan, Guangdong Sub-administration of Customs, Tianjin and
Shanghai Office and the customs directly under the General Administration of Customs:

In order to further the undertaking of the administration of importation of aluminum oxide by enterprises with foreign investment,
simplify the examination and verification procedures and reduce the examination and review links, here is to authorize the administrative
departments of foreign investment of foreign economic and trade authorities at provincial level to examine and issue the license
of automatic importation of aluminum oxide to enterprises with foreign investment of other industries than aluminum industry, the
specific items are notified as follows:

I.

Principles of examination and approval.

(1)

The applying enterprises should have been approved by force of law, which should be in compliance with the requirements of the policies
for guidance of foreign-invested industries with annual inspection qualified.

(2)

The applying enterprises are on going concerns with normal production and operations, and the production and processing do not adopt
aluminum oxide as the principal raw materials (non-aluminum processing enterprise)with a single License of Automatic Importation
for importation of aluminum oxide not exceeding 1000 tons.

(3)

The applying enterprises import aluminum oxide only for use by themselves for processing and production of products, and the imported
aluminum oxide should not be processed by other enterprises with authorization or otherwise transferred.

II.

Materials to be submitted by the applying enterprises.

(1)

Application report of the enterprises.

(2)

Certificate for approval of enterprises with foreign investment (including records on qualified joint annual inspection).

(3)

Business licenses of enterprises with foreign investment.

(4)

Contract and Articles of associations of enterprises (Articles of association only for solely funded enterprises).

(5)

Report of asset appraisal.

(6)

Operational performance of enterprises, including the financial statements and audit report of the previous year, and the importation
performance of aluminum oxide (exclusive of the newly established enterprises).

(7)

Certification of the production capacity of enterprises (including annual usage, production schedule and requirements for the demands
of raw materials).

III.

Norms on issuance of licenses.

Each place shall handle with the formalities for automatic importation of aluminum oxide with non-aluminum enterprises with foreign
investment according to the relevant provisions of the Rules for the Implementation of the Licensing Administration of Automatic
Importation of Enterprises with Foreign Investment and the above-mentioned principles of examination and approval, and issue licenses
of automatic importation through the Network Management System for Importation and Exportation of Enterprises with Foreign Investment.
Each issuing departments shall examine and verify the applications of enterprises in strict accordance with the above-mentioned principles
and requirements so as to prevent the occurrence of sales and distribution directly upon importation.

In case the aluminum enterprises with foreign investment with the business scope approved covering ￿￿processing and production of
aluminum￿￿ apply for importing aluminum oxide as the principal production material or enterprises with foreign investment import
aluminum oxide with a single License of Automatic Importation for importation of aluminum oxide exceeding 1000 tons, the administrative
departments of foreign investment of foreign economic and trade authorities at provincial level shall upon initial review submit
the case to the Foreign Investment Department of the MOFTEC for handling with the formalities for examination and verification and
issuance of licenses.

IV.

In case enterprises with foreign investment import aluminum oxide to produce products for domestic sales, the Customs handle with
the Customs clearance formalities on the basis of the License of Automatic Importation signed and stamped by the MOFTEC or the local
issuing institutions of automatic importation licenses authorized by the MOFTEC.

V.

In case enterprises with foreign investment import aluminum oxide for processing trade, the formalities should still be handled with
in compliance with the Urgent Circular on Issues Concerning Strengthening the Examination and Approval Administration of Processing
Trade of Aluminum Oxide (WaiJingMaoMaoFa [2001] No.567).

This is hereby the notification.



 
The Ministry of Foreign Trade and Economic Cooperation
2003-02-19

 







SUPPLEMENTARY PROVISIONS TO THE IMPLEMENTATION MEASURES FOR SUSPENDING AND TERMINATING THE LISTING OF FAILING LISTED COMPANIES (REVISED)

The China Securities Regulatory Commission

Circular on Promulgating the Supplementary Provisions to the Implementation Measures for Suspending and Terminating the Listing of
Failing Listed Companies (Revised)

All listed companies:

On November 30, 2001, the CSRC promulgated the Implementation Measures for Suspending and Terminating the Listing of Failing Listed
Companies (Revised) (ZhengJianFa [2001] No.147), during the enforcement of which some problems occur to be solved. With a view to
protecting the rights and interests of the investors, the Supplementary Provisions to the Implementation Measures for Suspending
and Terminating the Listing of Failing Listed Companies (Revised) has been formulated by the CSRC for implementation as of the date
of promulgation.

China Securities Regulatory Commission

March 18, 2003

Supplementary Provisions to the Implementation Measures for Suspending and Terminating the Listing of Failing Listed Companies (Revised)

With a view to protecting the rights and interests of the investors, the Supplementary Provisions have been formulated on the relevant
problems occurred during the enforcement of the Implementation Measures for Suspending and Terminating the Listing of Failing Listed
Companies (Revised):

I.

In case of material accounting errors or false records in the financial and account reports when the company took initiatives to correct
or is ordered to make corrections for carrying out backward adjustment with the financial and accounting reports of the previous
years, thus leading to losses for consecutively for the latest two years with ongoing losses in the same year when the backward adjustment
is made, the Stock Exchange shall within ten working days upon the date when the company publishes the annual reports make decisions
on temporary suspension of the listing of its stocks.

II.

Upon making decisions on temporary suspension, resumption or termination of listing when the financial and accounting reports in the
underlying regular reports were issued by CPAs with audit reports containing unreserved opinions with interpretative descriptions,
reserved opinions, negative opinions or refusal of opinions (hereinafter referred to as “audit reports with non-standard unreserved
opinions”), the Stock Exchange may organize an expert committee for making independent professional judgment on the problems of material
accounting treatment that influences the profit truthfulness involved in the audit reports with non-standard unreserved opinions,
based on which the Stock Exchange may make corresponding decisions.

III.

For the companies that have witnessed consecutive losses for the latest two years or for the companies that have witnessed consecutive
losses for the latest two years upon backward adjustments made according to the stipulations of Article 1 of the Supplementary Provisions,
in case their annual financial and accounting reports keeps on indicating losses or profits but issued with audit reports with non-standard
unreserved opinions, the Board of directors of the company shall in reviewing the annual financial and accounting reports make resolutions
on the following items, which should be submitted for review by the recent General Shareholder Meeting:

(I)

In case of temporary suspension of listing of the stocks of the company, the company shall sign an agreement with a qualified securities
firm with a covenant that (including but not limited to) the company engages the securities firm as the recommender for resumption
of the listing of the stock in question; and in case of termination of listing of the stock, the securities firm will be authorized
to provide services for share transfer and to handle with registration for withdrawal of the shares from the market registration
and settlement system of the Stock Exchange, handle with reaffirmation of the shares and handle with share registration and settlement
of the share transfer system.

The qualified securities firms refer to those eligible for “handling with the services for share transfer” and “listing reccommender”
(hereinafter referred to as the “undertaking securities firms”).

(II)

In case of temporary suspension of listing of the stocks of the company, the company shall sign an agreement with China Securities
Registration and Settlement Co., Ltd. The agreement contains a covenant that (including but not limited to) in case of termination
of share listing, the company engages China Securities Registration and Settlement Co., Ltd as the custodian, registration and settlement
institution for all its shares.

(III)

In case of termination of listing of the stocks of the company, the company shall apply for entry of its shares into the agency share
transfer system for transfer, and the shareholder meeting authorizes the Board of directors to handle with the relevant matters relating
to termination of listing of the shares of the company and entry into the agency share transfer system for transfer.

IV.

After the shareholder meeting reviews and passes the proposals mentioned in Article 3 of the Supplementary Provisions, the board
of directors shall complete the signing of agreements with China Securities Registration and Settlement Co., Ltd. and the “undertaking
securities firms”, which should be published and reported to China National Association of Securities Dealers, the agency of the
CSRC where the company is registered and the Stock Exchange.

V.

In case of termination of the listing of the stocks of the company, the undertaking securities firm shall within five workings days
after the Stock Exchange makes decision on terminating the listing of the stocks of the company publish the Public Announcements
on Relevant Matters Relating to the Share Transfer on Agency on the newspapers, magazines and Internet sites designated by the CSRC
for announcement of the following content:

(I)

Handling with the termination of the listing of shares;

(II)

Time and means for handling with the formalities for share reaffirmation; and

(III)

Conditions and arrangements for agency of share transfer.

VI.

The undertaking securities firm shall within twenty working days upon the decisions of termination of the listing of the shares of
the company by the Stock Exchange complete the initial preparatory work for the registration of the withdrawal of the shares stopped
from listing, handling with the formalities for reaffirmation of the shares for the shareholders and open the account for transfer
of the shares of a non-listing company.

VII.

In case the Board of directors fails to perform its duties relating to resumption or termination of the listing of the shares of the
company to detrimental of the legitimate rights and interests of the shareholders, the shareholders may requires for the company
to perform the duties in question and prosecute for the relevant obligations.

In case the undertaking securities firms authorized by the company fails to perform the agreement reached to detrimental of the legitimate
rights and interests of the company or the shareholders, the company may requires for the undertaking securities firm to perform
the duties in question and prosecute for the relevant obligations according to law.

VIII.

In case the public listed company fails to disclose the annual reports or semi-annual reports within the statutory periods or make
corrections to the false financial and accounting reports within the statutory periods, the Stock Exchange shall made decisions on
temporary suspension, resumption or termination of the listing of the shares of the company according to the provisions of the relevant
laws, regulations and Rules for Listing of Stocks.

IX.

Upon decisions on temporary suspension or resumption of the listing of the stocks of the listed company according to law, the Stock
Exchange shall report to the CSRC; and upon decision on termination of the listing of the stocks, the Stock Exchange shall go through
filing with the CSCRC.

X.

The Supplementary Provisions shall enter into force as of the date of the promulgation.



 
The China Securities Regulatory Commission
2003-03-18

 







INTERIM MEASURES FOR THE IMPLEMENTATION MANAGEMENT OF STATE-INVESTED LAND DEVELOPMENT RECTIFICATION PROJECTS

The Ministry of State Land Resources

Notice of the Ministry of State Land Resources Concerning Printing and Issuing on Interim Measures for the Implementation Management
of State-Invested Land Development Rectification Projects

Guo Tu Zi Fa [2000] No. 122

The ministries of state land resources of every province, autonomous region and municipality directly under the Central Government
(the ministry of state land environment resources, bureau of state land resources and housing, bureau of housing and land resources,
bureau of state land resources and planning), bureau of state land resources of Xingjiang Production and Construction Group:

In order to safeguard the smooth implementation of the state-invested land development rectification projects and to complete fully
the tasks of project construction, Interim Measures for the Implementation Management of State-Invested Land Development Rectification
Projects studied and formulated by the ministry, are hereby printed and issued, please carry out according to the local actual situation
of each place.

The Ministry of State Land Resources

April 16, 2003

Interim Measures for the Implementation Management of State-Invested Land Development Rectification Projects

Chapter I General Provisions

Article 1

In order to safeguard the smooth implementation of the state-invested land development rectification projects and to complete fully
the tasks of project construction, the Measures are hereby formulated in accordance with the provisions of the relevant laws, regulations
and policies.

Article 2

The Measures are applicable to the state-invested land development rectification projects (hereinafter referred to as the “projects”),
including key projects, model projects and subsidy-based projects.

Article 3

The implementation management of projects sticks to the following fundamental principles:

(I)

Principles of consistence between tights, duties and obligations;

(II)

Principles of openness, justice and fairness;

(III)

Principles of simplified procedures and enhancement of efficiency.

Article 4

The Ministry of State Land Resources adopts uniform supervision and management of project implementation, and local competent administration
of state land resources above county level is in charge of the supervisions and management of the project implementation sources
in corresponding administrative divisions.

Article 5

The undertaking unit of the projects shall organize for project implementation, and adopt the responsibility of the legal person of
the project.

The management and technological personnel of the undertaking unit of the projects shall meet the demands for project implementation.

Article 6

The project implementation adopts the legal person system of the project, bidding system, engineering supervision system, contracting
system, and announcement system.

Chapter II Preparation for Implementation

Article 7

Upon assignment of the project planning and budgets by the Ministry of Finance and the Ministry of State Land Resources, the competent
administration of state land resources of county level shall submit petition to the local government for establishment of project
implementation leading groups in charge of coordinating and settlement of the relevant issues during project implementation.

The competent administration of state land resources of county level shall according to the relevant provisions verify the land categories,
areas, demarcation, ownership, and compensation schemes involved in the project, and ensure that the land categories and areas as
demarcation are clear and that the ownership is legitimate free of disputes over the adjustment schemes of the ownership and compensation
schemes, thus creating favorable conditions for the implementation.

Article 8

The undertaking unit of projects shall carry out full on-site management on the project implementation and do well in the following
preparatory works:

(I)

Organizing the advisory services of organizing bid invitation, and equipment and material purchase;

(II)

Organizing bid invitation and bidding for the projects, reaching the contracted engineering agreements and authorizing for engineering
supervision management;

(III)

Preparing the annual implementation programs of the projects, the construction schedule planning and funding planning;

(IV)

Organizing and preparing the designing diagrams for project implementation; and

(V)

Establishing the relevant systems on project schedule, quality and fund utilization management.

Article 9

Upon completion of the preparation for the project implementation, the undertaking unit of projects shall summarize the circumstances
relating to the project implementation and put forth the application report on start of the projects, upon review and ratification
of which by the competent administration of state land resources of county level where the project is located the project implementation
may start.

Article 10

The undertaking unit of projects shall publish project announcements for supervisions y the mass and the society.

The contents of the project announcement shall include: project name, construction site, overall construction scale, newly increased
tillage areas, total investment of the project, construction term, land ownership, the undertaking unit of the projects, the implementation
unit of the projects, the supervisory unit of the projects, and the designing unit of the projects, etc.

Article 11

In case of any discrepancy from the relevant unit and individual over the project implementation, the undertaking unit of projects
shall be responsible for the solutions thereof; and incase of failure to solve the discrepancy, petitions should be submitted for
solution by the project implementation leading group. In case of any material issues, the competent administration of state land
resources of county level shall report to the superior competent administration of state land resources for investigation and solution.

Chapter III Engineering Implementation

Article 12

Upon start of the engineering, the undertaking unit of projects shall set up the on-site office meeting system during the project
implementation, where the implementation unit, the engineering supervisory unit, and the designing unit may be convened for coordination
and solution of the problems in implementation progress, project quality, fund utilization, and the execution of the project planning
and designing during the project implementation.

Article 13

The implementation unit of projects shall carry out the construction according to the standards of project planning and designing,
implementation designing and implementation technologies, and be responsible for the returns and repairing in case of quality issues
or unqualified construction projects upon examination of project completion. The implementation unit of projects shall establish
the quality responsibility system, and identify the managers of the engineering projects, the persons in charge of technological
issues and implementation management. In case of any errors in the planning design and the implementation designs during the implementation,
the implementation unit of projects shall timely put forth opinions and suggestions.

Article 14

The engineering supervisory unit of the projects shall carry out the supervisions with responsibilities borne in terms of engineering
quality on behalf of the undertaking unit of projects in compliance with laws, regulations and the relevant technological standards,
planning and designing and the relevant contracts. The engineering supervisory unit of the projects shall assign the supervisors
of eligible conditions to the construction site, who shall then according to the requirements of the engineering supervision standards
carry out supervision on the construction engineering of the projects, control the investment, term and quality of the project construction.

Upon completion of single unit of projects, the engineering supervisory unit of the projects shall sign opinions attached. Without
the opinions on qualification signed by the engineering supervisory unit of the projects, the undertaking unit of projects shall
not appropriate the engineering fund, and thus the implementation unit of projects may not proceed to the following process.

Article 15

The designing unit of projects provides consultation and instructions on the relevant planning and designing during the project implementation;
and in case of alteration of the planning and designing, modifications should be made as per the requirements.

Article 16

During the implementation, various units shall strictly execute the project planning, the expenditure budget and planned designing.
In case of alteration of the planned designing required, the following provisions should be followed:

(I)

If the adjustment does not involve the location of the project construction, overall construction scale, newly added tillage areas,
or budget of project expenditures, the undertaking unit of projects may make investigate and settle it at its own discretion;

(II)

If the adjustment involves the location of the project construction, overall construction scale, newly added tillage areas, or budget
of project expenditures, the undertaking unit of projects shall report to the original approval authority for ratification.

Article 17

In case of adjustment of the ownership of land due to the alteration of planning and designing, the original ownership adjustment
schemes should be supplemented and explained, which shall then be reported for determination by the local competent administration
of state land resources of county level.

Chapter IV Preparation for Acceptance Examination upon Project Completion

Article 18

Upon completion of the tasks of the project construction, the undertaking unit of projects shall do well in self-examination on the
project construction according to the provisions of the contract.

The following conditions shall be available for self-examination of the project construction:

(I)

The implementation unit of projects has submitted the delivery report, completion drawing of project and warranty letter of the project;

(II)

The engineering supervisory unit of the projects has submitted the supervision report;

(III)

Complete technological archives and implementation management materials.

Article 19

The undertaking unit of projects shall within a month after self-examination of the project submit the application report to the local
competent administration of state land resources of county level for self-examination of the project completion, arrange the relevant
materials and make preparations for the acceptance examination upon completion of the project.

The acceptance examination upon completion of the project shall be executed in compliance with the relevant provisions of the Interim
Measures for Acceptance Examination upon the Completion of the State-invested Land Development Rectification Projects (GuiTuZiFa
[2003] No.21).

Article 20

The undertaking unit of projects shall according to the relevant provisions timely collect and arrange the relevant documents, materials
and graphics during the project implementation, set up and perfect the project archives, and timely submit the project archives to
the local competent administration of state land resources of county level for filing after the acceptance examination upon completion
of the project.

Chapter V Supervisions and Inspection

Article 21

Various levels of the competent administration of state land resources shall set up the supervisions and inspection system with the
project progress, engineering quality, capital utilization, and construction of honest government, thus, investigating and solving
material issues during project implementation.

Article 22

Various levels of the competent administration of state land resources shall according to the relevant laws and regulations correct
the misbehaviors during the project implementation and investigation on the responsible persons in breach of law and disciplines.
Those involved in serious circumstances that constitute a crime shall be transferred for prosecution of criminal responsibilities
by the judicial organs according to the relevant laws.

Article 23

Any unit and individual is enpost_titled to make reports, petitions or claims on the quality incidents and quality defects of the construction
engineering of the projects.

Chapter VI Supplementary Provisions

Article 24

The implementation management of the land development rectification projects invested by local government shall be executed by reference
with these Measures.

Article 25

The funding management for project implementation shall be executed in compliance with the relevant provisions of The Interim Measures
for Funding Management of Land Development Rectification Projects (GuoTuZiFa [2000] No. 282).

Article 26

The Measures shall come into force as of the date of promulgation.



 
The Ministry of State Land Resources
2003-04-16

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING DISTRIBUTING THE RULES FOR THE IMPLEMENTATION OF MEASURES FOR STATISTIC DECLARATION OF INTERNATIONAL BALANCE OF PAYMENTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange Concerning Distributing the Rules for the Implementation of Measures for
Statistic Declaration of International Balance of Payments

HuiFa [2003] No.21

February 21, 2003

Branches and foreign exchange administration departments under the State Administration of Foreign Exchange in provinces, autonomous
regions and municipalities directly under the Central Government, and branch administrations of Shenzhen, Dalian, Qingdao, Xiamen,
Ningbo; and Chinese-capital designated banks of foreign exchange:

In order to adapt to the changes of the system of statistic declaration of international balance of payments (IBOP), the State Administration
of Foreign Exchange revised the Rules for the Implementation of Measures for Statistic Declaration of International Balance of Payments,
which has been discussed at the meeting of the State Administration of Foreign Exchange and are hereby transmitted to you. The branch
administrations of foreign exchange shall distribute the Rules to the foreign-funded banks within their jurisdictions and relative
Chinese-capital designated banks of foreign exchange shall transmit the Rules to their branches for implementation. Attachment:Rules for the Implementation Measures for Statistic Declaration of Balance of International Payments

Article 1

These Rules are formulated according to the Measures for Statistic Declaration of IBOP.

Article 2

The State Administration of Foreign Exchange and its branches (hereinafter referred to as AFE) is the administrative authority responsible
for IBOP. Any bargainer shall declare its foreign trades and corresponding IBOP in any payment way including electronic payment in
local and foreign currency and cash according to relative provisions.

Article 3

Chinese residents who receive money from abroad through domestic financial institutions shall make statistic declaration of IBOP according
to relative operating procedures. The paying bank shall transmit the information on statistic declaration of IBOP through computer
system to AFE according to the provisions.

If a Chinese resident fails to make a declaration of IBOP according to the operating procedures within the declaring period, the money
received from abroad within such period stipulated by AFE may be paid by the paying bank only after the statistic declaration of
IBOP has been completed.

For non-Chinese residents who receive money from abroad through domestic financial institutions, such domestic financial institutions
shall make statistic declaration of IBOP according to the operating procedures and transmit the information on statistic declaration
of IBOP through computer systems to AFE.

Article 4

Chinese residents who pay money to abroad through domestic financial institutions shall make statistic declaration of IBOP according
to relative operating procedures. The paying bank may make the payments only after receiving the declarations and shall transmit
the information on the statistic declaration of IBOP through computer systems to AFE according to the provisions.

For non-Chinese residents who pay money to abroad through domestic financial institutions, the domestic financial institutions shall
make statistic declaration of IBOP according to the operating procedures and transmit the information on such declaration through
computer systems to AFE.

Article 5

For payees who receives money from abroad and payers who send money to abroad through domestic post institutions, the post institutions
shall be responsible for the statistic declaration of IBOP.

Article 6

China domestic currency exchange institutions that are engaged in exchanges from RMB into foreign or currency and vise versa shall
fill in the agiotage statistic declaration forms and declare these agiotage transacted to AFE according to relative provisions.

Article 7

Enterprises with Foreign investment in China and enterprises with direct investment abroad shall fill in the statistic declaration
forms of direct investment, and directly declare AFEs with the information on owner’s equity, credit/debt status and allocation of
dividends and interests.

Relative administrations shall provide the AFE with the foreign-related information concerning assets transfer, acquisition, merger,
reconstruction and disposition.

Article 8

The foreign-related securities investment shall be declared in term of the following provisions:

(1)

For the foreign-related securities transactions through China domestic securities exchanges, the domestic securities registration
institutions or securities exchanges shall fill in the statistic declaration forms of securities investments, and declare to AFE
these transactions and relative information concerning incomes/expenditure and allocations of dividends and interests.

(2)

For the securities transactions not through domestic securities exchanges (including securities business on own accounts and through
agents), the domestic securities dealers or domestic investors shall fill in the statistic declaration forms of securities investments,
and declare to AFE these transactions and relative information concerning incomes/expenditures and allocations of dividends and interests.

(3)

Chinese domestic institutions that have issued securities within China shall fill in the statistic declaration forms of securities
investments, and declare to AFE with these transactions and relative information concerning incomes/expense and allocations of dividends
and interests.

Article 9

Foreign-related futures and options shall be declared in the light of the following provisions:

(1)

For the foreign-related futures and options transacted through domestic future/option exchanges (exchange centers), such exchanges
(exchange centers) shall fill in the statistic declaration forms of securities investments, and declare to AFE these transactions
and relative information concerning incomes/expenditures.

(2)

For foreign-related futures and options transacted not through domestic future/option exchanges (exchange centers), the domestic securities
dealers or domestic investors shall fill in declaration forms of future/option transactions and report to AFE these transactions
and relative information concerning incomes/expenditures.

Article 10

Domestic financial institutions within China shall fill in the declaration forms of balance sheets and profit/loss statements of their
own assets abroad, and directly declare to AFE the information of balance and profit/loss of these assets.

Article 11

The Chinese non-financial institutions that opened overseas bank accounts shall fill in the declaration forms of incomes and expenditures
of overseas bank accounts, and declare to AFE the balances and changes of the overseas bank accounts, and provide to AFE relative
bank statements.

Article 12

The staff engaged in the statistic declaration of IBOP shall be trained for statistic declaration of IBOP and shall reach relative
levels.

Article 13

Branch administrations of foreign exchange shall transmit the information on statistic declaration of IBOP to the AFE at higher level
through computer system in the light of relative requirements.

Article 14

Any financial institution dealing with foreign exchange that fails to declare IBOP shall be imposed a warning according to provisions
of the Article 25 in Punishment Measures for Financial Illegal Activities and a fine of no less than 50,000 and no more than 300,000;
and the senior manager, the leading members who are directly in charge and other persons who are directly responsible for the offence
shall be imposed with disciplinary punishment of demerit record even expulsion; in case of serious offence, the senior manager who
is directly in charge of the financial institution shall be imposed with disciplinary punishment of dismissal even expulsion.

Article 15

For other acts in violation of the Measures of Statistic Declaration of International Balance of Payments, AFE shall impose them with
respective or contemporary warning and fine according to actual circumstances.

(1)

Failing to declare or failing to perform the responsibility of conveying the information;

(2)

Causing missing of declaration information on IBOP;

(3)

Misdeclaring, giving false information or disguising IBOP transactions;

(4)

Frustrating, impeding or destroying the examination or auditing by AFE on declaration information on IBOP.

The sum of penalties in above Paragraphs 1, 2 and 3 in this Article shall be within a range of 1%-5% for a single IBOP, but shall
be no more than RMB 30,000. The penalty in above Paragraph 4 in this Article shall be decided by AFE according to the seriousness
of the violation, but shall be no more than RMB 30, 000.

Article 16

AFEs shall investigate, examine and audit the statistic declaration acts for IBOP according to the Procedures of Punishments of the
State Administration of Foreign Exchange during Auditing the Statistic Declarations of IBOP, and relative institutions and their
staffs shall provide convenience for such investigation, examination and audit.

Article 17

For any violation of confidential regulations or leaking out the specific statistic declaration information on IBOP by the AFE, relative
institutions and staff may request the local AFE or upper level for disposing the offenders.

Article 18

The State Administration of Foreign Exchange is responsible for the interpretation for these Rules.

Article 19

These Rules shall enter into force as of March 1, 2003. The Rules of Implementation of Measures for Statistic Declaration of International
Balance of Payments promulgated by the State Administration of Foreign Exchange on November 23, 2003 shall be nullified simultaneously.



 
The State Administration of Foreign Exchange
2003-02-21

 







MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING SUPERVISION AND ADMINISTRATION ON PROCESSING TRADE ENTERPRISES THROUGH COMPUTER INTERCONNECTION

The General Administration of Customs

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

No.100

Adopted at the official meeting of the General Administration of Customs on September 26, 2001, Measures of Customs of the People’s
Republic of China Concerning Supervision and Administration on Processing Trade Enterprises through Computer Interconnection is now
promulgated and effective as of the date of April 1, 2003.

Director of the Administration Mou Xinsheng

March 19, 2003

Measures of the Customs of the People’s Republic of China Concerning Supervision and Administration on Processing Trade Enterprises
through Computer Interconnection

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Customs Law of the People’s Republic of China and other laws and administrative
regulations, for the purpose of regulating Customs’ administration on processing trades and implementing relevant provisions of the
Circular of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on Some Issues Concerning
Supporting the Development of High-and-New Technology Industries.

Article 2

The Customs’ supervision and administration on processing trade enterprises through computer interconnection refers to a method adopted
by Customs to supervise and administrate the bonded goods, by means of collecting financial logistics, production and operation data
necessary for supervision and administration with the help of computer networks connecting the processing trade enterprises which
whole processes are managed by computers with the computer management system of the Customs. The Customs shall verify the data of
production and logistics of the processing trades through computer network and perform on-site checks on the bonded goods according
to circumstances. The processing trades shall go through relevant formalities, such as records, alteration, verification and product
import/export with the Customs through the computer networks.

Article 3

A processing trade enterprise that is supervised and administrated through the computer networks (hereinafter referred to as a networked
enterprise) shall be exempted from the system of machine account on bank guarantee funds.

Article 4

The networked enterprise shall provide the Customs faithfully with the data of enterprise record, import, inventory, export, single
loss and finance which are requested for Customs Supervision.

Article 5

The Customs shall, according to the requests from the enterprise, keep the business secrets confidential.

Article 6

The enterprise applying for networking supervision and administration shall:

(1)

be a manufacturing enterprise that is export-oriented, with independent legal entity qualification within the jurisdiction of Chinese
Customs, qualified for processing and a manufacturing and registered with the Customs;

(2)

operate lawfully and creditably, with normative internal management and computer management throughout the whole process of purchasing,
manufacturing, inventorying and marketing, etc.;

(3)

is able to provide actual, accurate, complete and verifiable data according to the requirement of the supervision and administration
of the Customs;

(4)

enjoys Class A administration by the Customs; and

(5)

possesses efficient assets or capital as an overall guaranty for its financial responsibilities supposed for networking supervision
and administration.

Article 7

The an enterprise meeting with above conditions shall, prior to performing networking administration, apply to the competent Customs
office directly under the General Administration of Customs and the competent department of the Ministry of Foreign Trade and Economic
Cooperation, for performing networking supervision and administration and for the mode of approval. When the application is approved,
a Warranty for Liabilities of Networking Supervision and Administration shall be entered between the competent Customs office directly
under the General Administration of Customs and the enterprise, which shall be reported to the General Administration of Customs
for approval.

Chapter II Administration via Electronic Account Book

Article 8

The Customs shall, on the basis of the business scope approved by relevant competent department of the government, annual capacity
and other conditions of the processing trade, establish an electronic account book as a substitute for Registration Handbook for
processing trades and implement electronic account book administration to the networked enterprise.

Article 9

According to practical requirement of manufacturing, a networked enterprise may apply to the Customs for going through the formalities
for filing for the imported materials/parts, exported finish-products and loss of finished products.

Article 10

When alternation to the content of the electronic account book is necessary, a networked enterprise shall go through corresponding
formalities of examination and approval as well as alternation according to relevant provisions.

Chapter III Administration on Import and Export

Article 11

A networked enterprise shall be verified on its authentication and shall go through formalities of clearance and reporting for verification
for import and export through computer network.

Article 12

The imported materials and exported finish-products of a networked enterprise shall be within the scope verified for electronic account
book when going through formalities of clearance.

The Customs shall accept the declaration of a networked enterprise based on the electronic ledger, electronic authentication card
and other relevant documents.

Article 13

For a case of applying to the customs for the products at other locations, the competent customs shall transmit relevant data in electronic
account book to the Customs at the port.

Article 14

Any transfer of deep-processing transaction carried forward between networked enterprises or between a networked enterprise and a
non-networked enterprise, the networked enterprise shall, by presenting authentication card, electronic account book or Registration
Handbook, go through carry-forward formalities and customs entry according to relevant provisions.

Chapter IV Audit and Verification

Article 15

A networked enterprise shall report for verification periodically and implement a system of stage-by-stage verification by Customs.

Article 16

A networked enterprise shall report for verification in accordance with the time period and the requirement regulated by the Customs.

Article 17

The customs shall verify the data reported by the networked enterprise and may call and read relevant management data, account books
and other materials about a enterprise, go to the enterprise to have a on-site investigation, and even carry out external auditing
according to the needs of supervision and administration.

Article 18

A networked enterprise shall be pursuant to the relevant provisions in force it needs to sell its products to domestic market due
to some reasons.

The commence date of collecting the interests of stayed tax shall be calculated on the basis of defined verification cycle.

Article 19

When going through formalities of verification, the customs will compare the remaining materials recorded in the electronic account
book with the actual stocks of a networked enterprise. The deficiency/excess of the materials shall be disposed in accordance with
relevant provisions after verification.

Article 20

The Customs shall make a confirmation on the result of the verification and feedback the verification conclusion to networked enterprise.

Chapter V Legal Liability

Article 21

The competent Customs shall, according to the situation, levy on a networked enterprise a guarantee fund equivalent to one half of
the tax on bonded materials/parts of approved production turnover or request for a letter of guarantee issued by a bank, if the networked
enterprise:

(1)

has been degraded to Class B or Class C administration;

(2)

has failed to pass annual inspection;

(3)

is under investigation, suspected of being involved in smuggling;

(4)

has failed to deliver actual, accurate and complete data to the competent Customs in accordance with the provisions; or

(5)

has committed other activities, interfering the Customs to supervise and administration effectively.

Article 22

The Customs has the right to cancel the electronic account of a networked enterprise if this enterprise:

(1)

has been revoked the operation qualification by competent department of the government;

(2)

has stopped engaging in the processing trades; or

(3)

has been degraded to Class D administration.

Article 23

The Customs may suspend or cancel the applicable convenient clearance procedures for a networked enterprise that has committed any
of the activities prescribed in Article 21 and 22 in these Measures. The suspension and cancellation of the applicable convenient
clearance procedures shall be in accordance with the provisions of the Provisions of Examination and Approval on Convenient Clearance
Procedures Applicable to Large-sized Enterprises of High and New Technology (Decree No. 86 of the General Administration of Customs).

Article 24

An enterprise that has committed smuggling and violation of laws shall be disposed by the Customs according to the provisions of the
Customs Law of the People’s Republic of China and Rules for the Implementation of Administrative Penalty of the Customs Law of the
People’s Republic of China.

Chapter VI Supplementary Provisions

Article 25

The General Administration of Customs is responsible for the interpretation of these Measures.

Article 26

These Measures shall enter into force as of April 1, 2003.



 
The General Administration of Customs
2003-03-19

 







MEASURES FOR THE IMPLEMENTATION OF MADRID INTERNATIONAL REGISTRATION OF TRADEMARKS

The State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce of the People’s Republic of China

No. 7

Measures for the Implementation of Madrid International Registration of Trademarks deliberated and adopted by the bureau service conference
of the State Administration for Industry and Commerce of the People’s Republic of China, are hereby promulgated and shall be come
into force as of the day of June 1, 2003.

Director of the State Administration for Industry and Commerce, Wang Zhongfu

April 17, 2003

Measures for the Implementation of Madrid International Registration of Trademarks

Article 1

The Measures are formulated in accordance with Article 12 of the Regulation for the Implementation of the Trademark Law of the People’s
Republic of China (hereinafter referred to as the Regulation).

International registration of trademarks prescribed in Article 12 of the Regulation shall mean the international registration of
trademarks made in accordance with the Madrid Agreement Concerning the International Registration of Trademarks (hereinafter referred
to as the Madrid Agreement), the Protocol Relating to the Madrid Agreement Concerning International Registration of Trademarks (hereinafter
referred to as the Madrid Protocol) or the Common Regulations on Implementing the Madrid Agreement Concerning the International Registration
of Trademarks and the Protocol Relating to that Agreement (hereinafter referred to as the Common Regulations).

Article 2

The Measures shall apply to the applications for international registration of trademarks with China as the country of origin, applications
designating China for territorial extension, and other related applications.

The overseas registration of trademarks not through the Madrid system shall not fall within the governing scope of the Measures. The
applicant may entrust a trademark agency organization, or a foreign representative or law firm, or its branch company abroad to make
the registration.

Article 3

Whoever applies for international registration of a trademark with China as the country of origin shall have a genuine and effective
industrial and commercial business place in China, or have its domicile in China, or have the nationality of China.

Article 4

For an applicant with the qualifications prescribed in Article 3 of the present measures for international registration of trademarks,
if his/its trademark has been registered in the Trademark Bureau of the administrative department for industry and commerce under
the State Council (hereinafter referred to as the Trademark Bureau), he/it may apply for international registration of the trademark
in accordance with the Madrid Agreement.

For an applicant with the qualifications prescribed in Article 3 of the present measures for international registration of trademarks,
if his/her trademark has been registered in the Trademark Bureau, or an application for registration of the trademark has been filed
to the Trademark Bureau, he/it may apply for international registration of the trademark in accordance with the Madrid Protocol.

Article 5

Whoever applies for the international registration of a trademark shall handle the application through the Trademark Bureau.

The applicant or the trademark agency organization which he/it entrusts may either directly submit an application to the Trademark
Bureau, or post the application to the Trademark Bureau.

Article 6

Whoever applies for the later-stage designation, waiver, cancellation, etc. concerning the international registration of marks related
to the Madrid Agreement shall handle the said matters through the Trademark Bureau. Whoever applies for the transfer, abridgement,
modification of the registrant’s name or address, modification of the agent’s name or address, renewal, etc. concerning the international
registration of marks related to the Madrid Agreement may handle the said matters either through the Trademark Bureau, or directly
in the International Bureau of the World Intellectual Property Organization (hereinafter referred to as the International Bureau).

Whoever applies for the later-stage designation, transfer, abridgement, waiver, cancellation, modification of the agent’s name or
address, modification of the agent’s name or address, renewal, etc. concerning the international registration of marks related to
the Madrid Protocol may handle the said matters either through the Trademark Bureau, or directly in the International Bureau.

The applicant or the trademark agency organization entrusted may, when filing an application through the Trademark Bureau, either
directly submit or post the application to the Trademark Bureau.

The applicant or the trademark agency organization entrusted may, when filing an application directly to the International Bureau,
either submit or post the application to the International Bureau.

Article 7

Whoever applies for international registration of a trademark or handles other related matters through the Trademark Bureau may fill
in the involved forms either in the English or French style provided by the International Bureau, or in the Chinese style made by
the Trademark Bureau, provided that it shall pay the translation fee to the Trademark Bureau.

Whoever applies for international registration of a trademark or handles other related matters shall in addition to paying the fees
prescribed in the Common Regulations pay the service fee to the Trademark Bureau.

Article 8

Where the applicant for international registration of a trademark is a natural person, he shall clearly write down his Chinese name.
Where the applicant is a legal person or other organization, it shall clearly write down its full name in Chinese.

Where a natural person, legal person or other organization has a corresponding translated name in a foreign language, he/it may indicate
the translated name in the foreign language. Where there is no such a translated name in the foreign language, he/it shall indicate
the corresponding Chinese phonetic alphabet.

Article 9

The applicant shall indicate his/its detailed address (including the communication address and the zip code), telephone number, fax
number, etc. in the application for international registration of a trademark.

Article 10

One application for international registration of a trademark may either designate one class of commodities or services, or designate
two or more classes of commodities or services.

Article 11

An applicant shall, when applying for international registration of a trademark, submit the following annexes:

(1)

1 photocopy of domestic trademark registration certificate, or 1 photocopy of the notification on acceptance of the application for
registration of trademark that is issued by the Trademark Bureau;

(2)

1 proof on the right of priority if claimed;

(3)

1 proof on the applicant’s qualifications, such as a photocopy of the business license, a photocopy of the residence proof, or a photocopy
of the identity certificate, etc.;

(4)

1 power of attorney if the application is in the form of an entrusted agency;

(5)

2 patterns of the trademark, the size of which shall be no more than 80mm*80mm, and no less than 20mm*20mm.

Article 12

The date when the Trademark Bureau receives the application for international registration of a trademark shall be the application
date.

Where the application for international registration of the trademark is not filled in as prescribed, the Trademark Bureau shall return
the application, and the application date shall not be reserved.

Where the particulars of the application are basically complete but still need to be supplemented, the Trademark Bureau shall notify
the applicant or his agent to supplement them within 15 days as of the receipt of the notice. The date when the Trademark Bureau
serves the supplementary notice to the party concerned by post shall be the post stamp date of receipt by the party concerned of
the said notice. If the post stamp date is not clear or there is no post stamp, or the application is not returned by the post office,
it shall be deemed as having been served to the party concerned 15 days after the notice is sent out. If the said particulars are
not supplemented, the application shall be deemed as having been waived, and the Trademark Bureau shall notify the applicant in writing.

With respect to an application for international registration of a trademark or other application filed through the Trademark Bureau,
the applicant shall pay the relevant fees to the Trademark Bureau if so required by the provisions within 15 days as of the receipt
of the Trademark Bureau’s notice on payment of such fees. The date when the Trademark Bureau serves the notice on payment of fees
to the party concerned by post shall be the post stamp date of receipt by the party concerned of the said notice. If the post stamp
date is not clear or there is no post stamp, or the application is not returned by the post office, it shall be deemed as having
been served to the party concerned 15 days after the notice on payment of fees is sent out. If the fees remain unpaid after the expiry
of the time limit, the application shall be deemed as having been waived, and the Trademark Bureau shall notify the applicant in
writing.

Article 13

Where the Trademark Bureau notifies the International Bureau to reject according to the power an application designating China for
territorial extension, it does no longer have to confirm the rejection with the International Bureau.

Article 14

Within 3 months as of the first day of the next month after the World Intellectual Property Organization’s “Gazette of International
Trademarks” is published; anyone may propose dissents to the Trademark Bureau regarding the application designating China for territorial
extension, which is published on the Gazette.

One dissent application may involve one class of commodities or services, or involve two or more classes of commodities or services.

Where the dissenter withdraws his application for dissent, the Trademark Bureau shall terminate the dissent procedure, and notify
the party concerned in writing.

Article 15

The applicant for territorial extension of a collective trademark or certification trademark designating China shall, within 3 months
as of the date when the trademark is registered in the international registration book of the International Bureau of the World Intellectual
Property Organization, submit through a trademark agency organization the proof of subject qualification, the administrative rules
on the use of trademarks and other documents of proof to the Trademark Bureau in accordance with the relevant provisions.

Where the applicant fails to submit the proof of subject qualification, the administrative rules on the use of trademarks and other
documents of proof within the above said 3 months, the Trademark Bureau shall reject the application for territorial extension of
the collective trademark or certification trademark.

Article 16

Where a transferor fails to apply for transferring his/its trademark in all classes in accordance with the law, the Trademark Bureau
shall notify the registrant for international trademark to make a correction within 30 days as of the receipt of the notice; if the
transferor fails to make the correction before the expiry of the time limit, the Trademark Bureau shall make a decision that the
transfer is invalid in China, and shall declare that to the International Bureau. If the party concerned refuses to accept the Trademark
Bureau’s declaration, he/it may, within 30 days as of the receipt of the Trademark Bureau’s declaration, bring a lawsuit to the people’s
court. If the party concerned fails to bring a lawsuit before the expiry of the time limit, the Trademark Bureau’s decision shall
become effective. The effective date shall be the date when the Trademark Bureau makes the decision.

Where the abridgement of contents does not conform to the requirements of China on classification of commodities and services, the
Trademark Bureau shall make a decision that the abridgement is ineffective in China, and shall declare that to the International
Bureau. If the party concerned refuses to accept the Trademark Bureau’s declaration, he/it may, within 30 days as of the receipt
of the Trademark Bureau’s declaration, bring a lawsuit to the people’s court. If the party concerned fails to bring a lawsuit before
the expiry of the time limit, the Trademark Bureau’s decision shall become effective. The effective date shall be the date when the
Trademark Bureau makes the decision.

Article 17

Whoever intends to permit others to use his/its internationally registered trademark inside the territory of China shall grant the
permission in accordance with the Trademark Law and the Regulation.

Article 18

Where an applicant for territorial extension designating China replaces the registration of trademarks in China by the international
registration of trademarks, the international registration shall not impact the already obtained right to registration of trademarks
in China.

Whoever demands to replace the registration in a prior country by the international registration in the trademark registration book
of the Trademark Bureau shall handle the replacement through a trademark agency organization, and shall pay fees as prescribed.

Article 19

Where an internationally registered trademark that has been protected in China is under any of the circumstances prescribed in Article
41 of the Trademark Law, the trademark owner or interested person or other person may, in light of different situations, apply to
the Trademark Review and Adjudication Board for ruling the dispute or ruling to revoke the trademark which has been protected in
China. The application for ruling shall be filed after the expiry of the time limit for rejection of the trademark in China.

Article 20

Whoever designates China to protect international registration of trademarks may, as of the date when the time limit for rejection
of his/its trademark has expired, entrust a trademark agency organization to apply to the Trademark Bureau for issuing the certificate
proving that his/its trademark has been protected in China.

Article 21

The Measures shall enter into force as of June 1, 2003. The Measures for the Implementation of Madrid International Registration of
Trademarks promulgated by the State Administration for Industry and Commerce on May 24, 1996 shall be repealed simultaneously.



 
The State Administration for Industry and Commerce
2003-04-17

 







CIRCULAR ON THE RELEVANT WORK OF ANNUAL JOINT EXAMINATION OF ENTERPRISES WITH FOREIGN INVESTMENT OF 2003

The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance, the General
Customs Administration, the State Administration of Taxation, the State Administration for Industry and Commerce, the State Administration
of Foreign Exchange

Circular on the Relevant Work of Annual Joint Examination of Enterprises with Foreign Investment of 2003

WaiJinMaoZiFa [2002] No.591

February 24, 2003

The commissions (departments, bureaus) of foreign trade and economic cooperation, economic and trade commissions (economic commissions),
departments (bureaus) of finance, state tax bureaus, local tax bureaus, administrations for industry and commerce, administrations
of foreign exchange of provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan, Guangdong Sub-administration of Customs and the customs directly under the General Administration of Customs:

Through the efforts of recent years, the annual joint examination of enterprises with foreign investment has played an important role
in improving the soft environment for investment, alleviating the enterprises’ burden and strengthening the communication and coordination
between the government departments. For successful progress of the annual joint examination of enterprises with foreign investment
of the whole country in 2003, and to keep on implementing the spirits of the Circular on the Implementation Scheme on Annual Joint
Examination of Enterprises with Foreign Investment (WaiJinMaoZiFa [1998] No.938, hereinafter referred to as the Circular), the relevant
issues are hereby notified as follows:

I.

The period from March 1 through May 31, 2003 is the work time of the annual joint examination of enterprises with foreign investment.
The localities shall organize the annual joint examination of enterprises with foreign investment strictly in accordance with the
requirements of the Circular, and the departments shall actively participate in the examination.

II.

The localities shall enhance the publicity of annual joint examination of enterprises with foreign investment, and strive to have
more enterprises participate in the examination. For those failing to declare for annual examination, failing to make faithful reports
in the annual examination or committing law-breaking or rule-breaking acts in production or business operations, the departments
of annual joint examination shall dealt with the punish the offenders pursuant to the laws and regulations.

III.

The localities shall promptly correct the acts not in line with the guidance of the Circular, prohibit those participating the examination
in other’s name, strengthen the direction for basic-level annual joint examination, inspect the progress of the examination work
and the implementation of the Circular, get to know and coordinate the settlement of the problems arising in the examination in a
timely manner, and guarantee the successful progress of the annual joint examination of their respective localities.

IV.

The departments of annual joint examination shall strengthen the communication and coordination between themselves. The departments
shall take the examination as an opportunity to change their administration methods, and shall stress the role of integrated coordination
and administration between the departments. The departments shall strengthen the coordination of the annual joint examination under
the leadership of the people’s governments at corresponding levels. The localities with necessary conditions shall have the departments
carry out the annual joint examination together, and the local finance shall give support. The departments shall exchange opinions
through joint work and conference, earnestly carry out the provisions of the Circular and improve the level of annual joint examination.

V.

The localities shall strengthen the administration of intermediary agencies, regulate the acts of the intermediary agencies e.g. accounting
firms etc, formulate specific regulations on the services that need to be provided by intermediary agencies, and impose heavier punishment
on those intermediary agencies with rule-breaking operations. The problems of accounting firms and other intermediary agencies found
out during the annual examination shall be passed on to the departments in charge in a timely manner.

The ￿￿Form of Foreign Exchange Payment￿￿ in the Circular on Adjustment of the ￿￿Form of Foreign Exchange Content￿￿ in the Annual Examination
of Foreign Exchange of Enterprises with Foreign Investment (HuiFa [2002] No.124) jointly distributed by the State Administration
of Foreign Exchange and the Ministry of Finance shall still be filled in by registered public accountants.

VI.

The relevant departments of annual joint examination shall cooperate closely, sort out, nullify and revoke the enterprises that have
no capital, site and structure. The number of the enterprises that have been deprived of the approval certificate in the current
year and the accumulative number of such enterprises shall be counted, and the information about sorting out, nullification and revocation
shall be indicated in the summary of the annual joint examination.

VII.

According to the Circular, the departments of annual joint examination may not add new charges, except that the administrations for
industry and commerce may take the charges according to the original standards. The departments shall firmly sort out and stop those
that, in violation of the provisions, take charges from enterprises or do so in disguised forms by the chance of annual joint examination,
or conduct annual examinations over enterprises with foreign investment without approval of the State Council, thus increasing the
enterprises’ burden by taking arbitrary charges or imposing random examinations.

VIII.

In order to improve the efficiency of annual joint examination and alleviate the enterprises’ burden, pilot projects of on-line annual
joint examination of enterprises with foreign investment will be carried out in Anhui, Beijing, Shanghai and Shenzhen etc, and will
be spread to other regions of China with the necessary conditions.

IX.

The departments shall strengthen the training of the functionaries of annual joint examination, enhance their sense of service and
operation quality, to provide open, transparent and normative services to the enterprises. And annual joint examination consultation
and complaint agencies shall be set up to accept the inquiries and complaints filed by enterprises with foreign investment.

X.

In order to guarantee the quality of the data gathered through the annual joint examination, the data of the localities shall go through
the preliminary joint review on a regional basis before being submitted, and the departments in charge of foreign trade and economic
cooperation of the localities shall make good preparations for the joint review.

XI.

The localities shall strengthen the statistics and analysis of the annual examination data, use the information and materials obtained
through the examination to analyze in depth the production and business operations and the general problems of enterprises with foreign
investment, and to carry out wide-range survey, study and communication.

This is hereby the notification.



 
The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance,
the General Customs Administration, the State Administration of Taxation, the State Administration for Industry and Commerce, the
State Administration of Foreign Exchange
2003-02-24

 







INTERIM MEASURES FOR ADMINISTRATION OF ASSOCIATIONS OF ENTERPRISES FUNDED BY TAIWAN COMPATRIOTS

Taiwan Affairs Office of the State Council, The Ministry of Civil Affairs

Notice of Taiwan Affairs Office of the State Council and the Ministry of Civil Affairs Concerning Printing and Issuing Interim Measures
for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Taiwan affairs office and the ministry of civil affairs of every province, autonomous region and municipality directly under the Central
Government, Taiwan affairs office and the ministry of civil affairs of every city specifically designated in the state plan:

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots are hereby printing and issuing, please
carry out.

Taiwan Affairs Office of the State Council

The Ministry of Civil Affairs

March 20,2003

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Article 1

These measures are formulated for the purpose of guaranteeing the legal rights and interests of the Associations of Enterprises Funded
by Taiwan Compatriots (hereinafter referred as to AETCs), accelerating economic communications and cooperation between the Mainland
and Taiwan and normalizing the administration, according to the Law of the People’s Republic of China on Protection of the Investments
of Taiwan Compatriots as well as the Administrative Regulations of Associations Registration.

Article 2

AETCs refer to the associations legally established voluntarily which principal members are the enterprises funded by Taiwan compatriots
(hereinafter referred as to ETC) and registered in the Mainland China.

Article 3

AETCs shall abide by the State’s constitutions, laws and regulations and shall not endanger reunification of the country, security
of the State and solidarity of the nations, and shall not impair the State’s interests, public interests or citizen legal rights
and interests.

Article 4

The State protects the legal rights and interests of AETCs and their members as well as legal activities according to their corporate
charters.

Article 5

AETCs take a purpose of serving their members and accelerating the communications and cooperation between the Mainland and Taiwan.
Their key operations include:

(1)

Developing association and communication activities;

(2)

Providing the members with consulting services on State’ laws and regulations and economic information;

(3)

Communicating between the members and local governments and relevant administrative organs, reporting opinions, suggestions and demands
on production and operation from the members, and maintaining the legal rights and interests of the members.

(4)

Accelerating the economic communications and cooperation between the local economies and Taiwan Region.

(5)

Hosting social and commonweal activities;

(6)

Helping the members to solve the problems met in the work and life.

Article 6

The Taiwan Affairs Office of the State Council and relevant Taiwan affairs offices of local peoples’ governments are the supervising
organs for the operations of AETCs. The relevant Taiwan affairs offices of local peoples’ governments and civil affairs administrations
are responsible for directing the operations of AETCs and administrating their registration affairs.

Article 7

The members of AETCs are divided into entity ones (as the principal body) and individual ones.

An entity member is an ETC joining the AETC in the name of its business name, which is registered locally.

An individual member is a Taiwan compatriot joining the local AETC in the name of himself, which business is registered locally, as
well as a person who provides services to the AETC in a proper name.

Article 8

The following requirements shall be met with for establishing an AETC:

(1)

In a region where there mass ETCs;

(2)

Over 50 founder members including no less than 30 entity members;

(3)

A fixed operation site;

(4)

Full-time staff suitable for developing operation activities;

(5)

Legal fund sources.

(6)

Other requirements stipulated in the laws, regulations, and rules.

Article 9

Any establishment of an AETC shall be examined and approved by the competent administration registered according to relative regulations
and reported to and recorded by the Taiwan Affairs Office of the State Council.

Article 10

Local Taiwan affairs offices shall fulfill their responsibilities as competent administrations and provide services and assistances
to AETCs.

(1)

Directing the activities performed by AETCs’ according to laws;

(2)

Assisting AETCs in communicating with local governments and relevant administrations;

(3)

Assisting AETCs in organizing activities related to major economic exchanging and major conferences.

(4)

Assisting AETCs in organizing trainings on laws and economic operations;

(5)

Providing assistance to the commonweal activities hosted by AETCs;

(6)

Providing assistance in solving problems met by AETCs in their operations and difficulties met by their members in their production
and life; and

(7)

Providing other necessary assistances.

Article 11

The chairman of an AETC shall be assumed by a Taiwan businessman. Any chairman and vice-chairman shall meet with following requirements:

(1)

Abiding by the principle of one China, upholding the reunification of the country, and actively and willingly striving for accelerating
the economic communications and cooperation;

(2)

A Taiwan businessman with competitive capability in economy and his business shall have a certain large scale.

(3)

A Taiwan businessman with good personal quality, who enjoys a prestige among local Taiwan businessmen.

(4)

Enthusiastic about the work of the association, with strong working capability.

(5)

Good in health, capable of routine job.

(6)

Not a legal representative of any other association; and

(7)

With full capacity for civil conduct.

Article 12

In order for AETC to communicate with the administration of government easily and provide better services for the members, the responsible
person of the Taiwan affairs office of the local people’s government may accept the invitation from the AETC to hold a proper post
in the AETC. The person to be engaged for a post in the AETC shall be selected according to the procedures of the constitutions of
the AETC and shall not take any pay from the AETC?￿￿>

Article 13

The employment of common staff by an AETC shall be accordance with relevant regulations of the State.

Article 14

For receptions of visits of key visiting groups or persons from Taiwan, the AETC shall report to the local competent administration
beforehand for record.

Major activities to be hosted by an AETC including establishment, expiration of office terms and celebration shall be reported to
the competent administration for approval.

Any Tran regional activities to be hosted by an AETC shall be reported to the competent administration for reporting to its upper
level administration for approval.

Article 15

No AETC shall join a foreign chamber of commerce or an overseas association.

An AETC shall operate according to its constitution independently without any subjection relationship with any other organization,
and shall not accept any consign from any other organization or individual to pursue any activity incompliant with its constitution.

Article 16

Any receipt of member fees, donations or financial assistances shall be accordance with the tenet and business scope specified in
its constitution. The receipt and use of such member fees, donations or financial assistances shall be reported to the competent
administration and registration administration authority and shall be publicized in a proper way.

Article 17

The competent administration and registration administration authority shall grant commends to the AETCs with excellent performances
during their legal operations.

Article 18

For an AETC established prior to the enforcement of these Measures, any incompliance with these Measure shall be corrected within
six months since the enforcement of these Measures according to relative regulations in these Measures.

Article 19

Any circumstance that have not mentioned in these Measures shall be dealt with according to the Administrative Regulations of Associations
Registration as well as relevant regulations of the State.

Article 20

The Taiwan Affairs Office of the State Council is responsible for the interpretation of these Measures.

Article 21

These Measures shall enter into force as of April 20, 2003.



 
Taiwan Affairs Office of the State Council, The Ministry of Civil Affairs
2003-03-20

 







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...