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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

 







PROVISIONS FOR IDENTIFICATION AND PROTECTION OF WELL-KNOWN TRADEMARKS

The State Administration for Industry and Commerce

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

No.5

The Provisions for Identification and Protection of Well-Known Trademarks, adopted at executive meeting of the State Administration
for Industry and Commerce, is hereby promulgated, and shall enter into force as of June 1, 2003.

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

April 17, 2003

Provisions for Identification and Protection of Well-known Trademarks

Article 1

The present Provisions are formulated in accordance with the Trademark Law of the People’s Republic of China (hereinafter referred
to as the Trademark Law) and the Rules on Implementing the Trademark Law of the People’s Republic of China (hereinafter referred
to as the Implementing Rules).

Article 2

The “well-known trademark” herein refers to a trademark widely known by the relevant public and highly reputable in China.

The “relevant public” includes the consumers related to certain kind of commodities or services indicated by a trademark, manufacturers
of the said commodities or other operators who provide relevant services, and the sellers and other people involved in the market.

Article 3

The following materials may be used as the certification materials of a well-known trademark:

1.

relevant materials that can evidence the extent that the relevant public know the trademark;

2.

relevant materials that can evidence the lasting time of the trademark, including the materials involving the history and scope of
the use and registration of the trademark;

3.

relevant materials that can evidence the lasting time, extent and geographic scope of any publicity work, including ways of adverting
and promotion, geographic scope, type of publicity media and the quantity of the launched advertisements;

4.

Relevant materials that can indicate that this trademark has been protected as a famous one, including the pertinent materials that
the trademark has been protected as a well-known trademark in China, or in other country or region;

5.

Other evidential materials that can indicate the trademark is famous, including the materials regarding the recent 3 years of output,
sales volume, profit payments and tax turnover and sales territory of the principal commodities using this trademark.

Article 4

Where a trademark, which has been given preliminary examination and approval and publicly announced, is thought to be in violation
of Article 13 of the Trademark Law, the party involved may raise an objection to the trademark office in accordance with the relevant
provisions of the Trademark Law and the Implementing Rules and shall submit relevant materials that can prove the trademark as famous.

Where a registered trademark is thought to be in violation of Article 13 , the party involved may file an application to the Trademark
Review and Adjudication Board, pleading it to make a ruling to revoke the registered trademark, and shall submit relevant materials
that can prove the trademark as famous.

Article 5

In the management of trademarks, where a trademark used by others is thought to be in violation of Article 13 and it is requested
to protect this famous trademark, the party involved may file an written application to the administrative department at the city
(prefecture, region) level of the place where case has occurred, pleading it to ban such use, and shall submit relevant materials
that can prove the trademark as famous. At the same time, it shall report to the administrative department at the provincial level
where it is located.

Article 6

Having received an application for the protection of a famous trademark in the administration of marks, the administrative department
for industry and commerce shall examine whether the case falls within the following circumstances as provided in Article 13 of the
Trademark Law:

1.

Where a well-known trademark that hasn’t been registered in China is used on identical or similar commodities of others without permission,
and it is likely to cause confusion;

2.

Where an trademark identical or similar to a well-known trademark that has been registered in China is used on the different or dissimilar
commodities without permission, and it is likely to mislead the public and to cause damages to the interests of the registrant of
the well-know trademark.

In any of the above-mentioned circumstances, the administrative department at the city (prefecture, region) level shall submit the
complete set of materials of this case to the administrative department of this province (autonomous region, municipality directly
under the Central Government) within 15 days as of the acceptance of the application, and shall issue a case acceptance notice to
the parties involved. Within 15 days as of the acceptance of the application, the administrative department of this province (autonomous
region, municipality directly under the Central Government) shall submit the complete set of materials of this case to the trademark
office.

A case not falling within the above-mentioned circumstances shall be timely resolved in accordance with the Trademark Law and the
Implementing Rules.

Article 7

The administrative department of the province (autonomous region, municipality directly under the Central Government) shall examine
the materials involving well-known trademark protection submitted by the administrative departments at the city (prefecture, region)
level within its jurisdiction.

For a case falling within the circumstance as listed in the first paragraph of Article 6 of the present Provisions, the materials
of the case submitted by the administrative department for industry and commerce at the city (prefecture, region) level shall be
submitted to the trademark office within 15 days as of the acceptance of these materials.

For a case not falling within the circumstance as listed in the first paragraph of Article 6 of the present Provisions, the relevant
materials shall be returned to the original acceptance organ, and the case shall be timely resolved in accordance with the Trademark
Law and the Implementing Rules.

Article 8

The trademark office shall make a decision about the relevant materials of a case, shall inform the administrative department of the
province (autonomous region, municipality directly under the Central Government) where this case occurred of the decision, and send
a copy of the decision to the administrative department of the province (autonomous region, municipality directly under the Central
Government) where the involving parties are located.

Except for the materials for proving the trademark famous, the trademark office shall return the other materials to the administrative
department of the province (autonomous region, municipality directly under the Central Government) where the case occurred.

Article 9

For a trademark that has not been identified as famous, the applicant shall not file another application for the same trademark on
the basis of the same facts and reasons within one year as of the decision is made.

Article 10

When determining whether a trademark is famous or not, the trademark office and the Trademark Review and Adjudication Board shall
take account of all the factors listed by Article 14 of the Trademark Law, but it shall not set a precondition – to require the
trademark to satisfy all the factors – for the trademark

Article 11

When protecting a well-known trademark, the trademark office, Trademark Review and Adjudication Board and local administrative department
of industry and commerce shall take the distinction and level of fame of the trademark into consideration.

Article 12

Where an applicant requests to protect its trademark in accordance with Article 13 of the Trademark law, it may offer records that
this trademark has ever been protected as a famous one by the administrative organ of our country.

If the protection scope of the case upon acceptance is almost the same as that of the case in which the trademark has already been
protected as a famous trademark, and both parties to the case raise no objection to the point that the trademark is famous, or the
opposing party raise an objection, but fails it to offer evidential materials to prove that this trademark is not famous, the administrative
department of industry and commerce that accepts this case shall make a ruling on or solve the case on the basis of the conclusion
of the protected records.

If the protection scope of the case upon acceptance differs from that of the case in which the trademark has already been protected
as a famous trademark, the opposing party raises an objection to the point that the trademark is famous and offers evidential materials
to prove that this trademark is not famous, therefore the materials related to the famous trademark shall be re-examined and identified
by the trademark office and the Trademark Review and Adjudication Board.

Article 13

If a party concerned holds that its famous trademark which has been registered as an enterprise name by others may cheat or mislead
the public, it may apply to the administrative organ of enterprise name registration for canceling the registration of this enterprise
name. The administrative organ of enterprise name registration shall deal with such a case in accordance with the Administrative
Provisions of Enterprise Name Registration.

Article 14

The administrative departments of industry and commerce of all levels shall strengthen the protection of famous trademarks, and shall
transfer the suspected cases of crimes of counterfeit trademark to the relevant departments in time.

Article 15

The administrative department of industry and commerce of the province (autonomous region, municipality directly under the Central
Government) where the organ which made the decision is located shall send a copy of the decision made to protect the famous trademark.

Article 16

The administrative departments of industry and commerce of all levels shall establish relevant supervision system, create relevant
supervision and control measures, and strengthen the supervision and inspection of the whole process of the identification of a famous
trademark.

If the pertinent functionaries engaged in the identification of famous trademarks neglect their duties, abuse their powers, seek private
interests, seek improper profits, violate the law in the identification of famous trademarks, they shall be given an administrative
punishment in accordance with the law; and those who constitute crimes shall be subject to the criminal responsibilities in accordance
with the law.

Article 17

The Provisions shall enter into force as of June 1, 2003. At the same time, the Interim Provisions for Identification and Protection
of Well-known Trademarks promulgated by the State Administration for Industry and Commerce on August 14, 1996 shall be concurrently
repealed.



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

 







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...