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MEASURES FOR THE ADMINISTRATION OF AUTOMATIC IMPORT LICENSE OF GOODS

the Ministry of Commerce, the General Administration of Customs

Order of the Ministry of Commerce and the General Administration of Customs

No. 26

The Measures for the Administration of Automatic Import License of Goods, which were adopted at the 17th executive meeting of the
Ministry of Commerce on December 9, 2004, are hereby promulgated and shall go into effect as of January 1, 2005.

the Minister of the Ministry of Commerce Bo Xilai

the Director of the General Administration of Customs Mu Xinsheng

December 10, 2004

Measures for the Administration of Automatic Import License of Goods

Article 1

With a view to effectively supervising the import of some goods and regulating the administration of automatic import license of goods,
the present Measures are formulated according to the relevant provisions of the Foreign Trade Law of the People’s Republic of China
and the Ordinance of the People’s Republic of China on the Administration of Import and Export of Goods.

Article 2

The present Measures shall apply to the import of goods as stipulated in the Catalogue of Goods Subject to the Automatic Import License
Administration into the territory of the People’s Republic of China by the foreign trade operators that undertake the import of goods
and other entities.

Article 3

The Ministry of Commerce of the People’s Republic of China (hereinafter referred to as the Ministry of Commerce) shall, on the basis
of the needs on supervising the import of goods, administer the automatic import license to the import of some goods and promulgate
the catalogue at least 21 days before the execution. The present Catalogue of Goods Subject to the Automatic Import License Administration
is attached behind (see Attachment I).

Article 4

The catalogue of goods subject to the automatic import license administration, including the names and customs commodity codes of
specific goods, shall be determined and adjusted by the Ministry of Commerce together with the General Administration of Customs
and other relevant departments. This catalogue shall be promulgated by the Ministry of Commerce in the form of public announcement.

Article 5

The administration on automatic import license and the issuance of Automatic Import Licenses shall be undertaken by the Quota License
Affairs Offices, the local special commissioner’s offices under the Ministry of Commerce, the competent departments of commerce (foreign
trade and economic cooperation) of all provinces, autonomous regions, municipalities directly under the Central Government and cities
specifically designated in the state plan as well as the departmental and local organs of the import and export of mechanical and
electrical products (hereinafter referred to as the license issuing organs) upon authorization by the Ministry of Commerce. The Name
List of Graded License Issuing Organs of Automatic Import Licenses is attached behind (see Attachment II).

Article 6

The Automatic Import Licenses (see Attachment III for the sample form) and the special seals for the automatic import licenses (see
Attachment IV for the sample seal) shall be uniformly supervised and issued to the license issuing organs by the Ministry of Commerce.
And every license issuing organ shall appoint a special person to keep the licenses and the seals and use them for special purposes.

Article 7

A consignee (including the importer and the import user) shall, when importing goods subject to the automatic import license administration,
submit an application for automatic import license to the local or corresponding license issuing organ and obtain an Automatic Import
License before it makes customs declaration.

A consignee, who applies for importing goods subject to the bid-invitation procurement, shall invite public bidding according to law.

The customs shall go through the inspection and release formalities upon the strength of Automatic Import Licenses affixed with the
special seals for automatic import licensing. The bank shall go through the formalities of selling and paying foreign exchanges
upon the strength of Automatic Import Licenses.

Article 8

When applying for an automatic import license, a consignee shall submit the following materials:

(1)

a qualification certificate for the consignee to engage in the import and export of goods, archival filing and registration documents
or the approval certificate in the case of a foreign-invested enterprise (the said certificates and documents shall be submitted
only by an applicant for its first application during a Gregorian calendar year);

(2)

an application form for the automatic import license (see Attachment V for the sample form);

(3)

a contract on the import of goods;

(4)

an (original) agreement on the import by an agency if the import is carried out by an agency;

(5)

materials proving that the uses of imported goods or the final users conform to the state provisions if there are special provisions
thereon;

(6)

materials as listed in the Catalogue to be submitted for various goods; and

(7)

other necessary materials to be submitted as prescribed by the Ministry of Commerce.

A consignee shall be responsible for the authenticity of the submitted materials and ensure that its relevant operations accord with
the state laws.

Article 9

The consignee may file an application for the Automatic Import License directly to the license issuing organ in written form or via
the internet.

In the case of an application in written form, the consignee can obtain an Application Form for Automatic Import License (it can be
photocopied) and other relevant materials from the license issuing organ or download them through related websites, faithfully fill
in and submit them to the license issuing organ by way of sending, posting or any other proper means and together with other materials
as provided for in this Measures.

In the case of an application via the internet, the consignee shall firstly apply to the license issuing organ for an electronic key
for identifying the enterprise identification. For the said application, the consignee shall log in a relevant website, enter into
a relevant application system and faithfully fill in an Application Form for Automatic Import License and other materials online
according to the requirements, and submit the relevant materials as provided for in this Measures to the license issuing organ.

Article 10

For any application for license with correct contents and a complete form, the license issuing organ shall, within 10 working days
after the receipt of such an application, issue an Automatic Import License.

Article 11

Any consignee, who conforms to the requirements in laws and regulations of the state on engaging in the import of goods subject to
the automatic import license, may apply for and acquire an Automatic Import License.

Article 12

Whoever imports goods subject to the automatic import licensing in the following manners does not need to obtain an Automatic Import
License:

(1)

the import of goods under the processing trade for re-export (with the exception of the crude oil and finished oil);

(2)

the import of goods within the investment amount by a foreign-invested enterprise for the investment or for its self-use;

(3)

the import of sample goods for advertisement and products for experiment, with each batch being not more than 5,000 yuan;

(4)

the temporary import of goods under the customs supervision; and

(5)

other manners stipulated in any state law or regulation, for which the Automatic Import License is not required.

Article 13

The present Measures shall not apply to the goods subject to the automatic import license administration that enter such areas under
special customs supervision as the bonded zones or export processing zones of the People’s Republic of China, as well as the bonded
storehouses and bonded logistics centers. In the case of any import of goods subject to the automatic import license administration
from such areas under special customs supervision as the bonded zones and export processing zones, as well as the bonded storehouses
and bonded logistics centers, the Automatic Import Licenses shall still be obtained besides the circumstances as provided for in
Article 10 of the present Measures.

Article 14

Where the goods subject to the automatic import license administration are imported for processing trade, they shall be re-exported
according to the relevant provisions. If the said goods cannot be re-exported and are to be sold instead inside the country due to
special circumstances, it shall apply for an Automatic Import License according to the present examination and approval procedures
on processing trade for the domestic market. The detailed rules for applying for and obtaining licenses of all goods shall be found
in the Catalogue of Goods Subject to the Automatic Import License Administration.

Article 15

Where the State adopts temporary prohibitive measures on import or temporary restrictive measures on the quantity of import for those
goods subject to the automatic import license administration, the issuance of such automatic import licenses for those goods shall
be ceased as of the date when the temporary measures come into force.

Article 16

Where a consignee does not use the obtained Automatic Import License, it shall return it to the original license issuing organ within
the period of validity and give the reasons. The license issuing organ shall revoke the Automatic Import Licenses returned by the
consignee.

If an Automatic Import License has been lost, the consignee shall immediately report the loss in written form to the original license
issuing organ and the customs at the import port as indicated in the face of the automatic import license. The license issuing organ
shall re-issue an license after verifying that there is no bad consequence upon receipt of the report for loss.

Any Automatic Import License that fails to be obtained within one month after the issuing day may be withdrawn and removed by the
license issuing organ.

Article 17

The customs may inspect and release the bulk cargo with the amount of overload or short load being within 5 percent of the total amount
of goods without a license. For such four kinds of large bulk cargoes as the crude oil, processed oil, chemical fertilizers and steel
products, they may be inspected and released without a license if the amount of overload or short load is within 3 percent of the
total amount of goods.

Article 18

The Ministry of Commerce shall in general exercise administration of “one license for one batch” for goods under the Automatic Import
License and may carry out the administration of “one license not for one batch” for some goods.

The “one license for one batch” means that the same Automatic Import License shall not be used in accumulative customs declaration
in batches. The consignee may apply for obtaining several Automatic Import Licenses for items under the same contract of import.

The “one license not for one batch” means that the same Automatic Import License can be used in accumulative customs declaration by
different batches within the valid period, but not more than six times. And the customs shall keep the photocopy each time after
it indorses in the “endorsement column of customs inspection and release” of the original Automatic Import License, and preserve
the original for the last time.

For the large bulk cargo subject to the automatic import license administration and the “one license not for one batch” administration,
the customs shall deduct an amount within the quota of the automatic import license pursuant to the actually imported amount; for
the import of last batch, the overload shall be calculated according to the actual remaining amount of the said automatic import
license and within the permissible upper limit of overload.

Article 19

The availability of an Automatic Import License shall be within a Gregorian calendar year and the period of validity shall be six
months.

Article 20

Where an Automatic Import License needs to be extended concerning its valid period or to be modified, it shall be re-handled in the
original license issuing organ. The previous license shall be simultaneously cancelled and its license number shall be indicated
in the remarks column of the new license.

Where an Automatic Import License carrying out the “one license not for one batch” administration needs to be extended concerning
its valid period or to be modified, the new license shall be issued on the basis of the residual amount after the declared amount
of the previous license is deducted.

Article 21

Anyone, who illegally imports the goods subject to the automatic import license administration without obtaining an Automatic Import
License, shall be treated and published by the customs according to relevant provisions of laws or administrative regulations; if
a crime is constituted, he shall be subject to criminal liabilities.

Article 22

Anyone, who forges, alters, buys or sells the Automatic Import License or obtains the Automatic Import License by deception or other
unfair means, shall be published according to the relevant provisions of laws or administrative regulations; if a crime is constituted,
he shall be subject to criminal liabilities.

Article 23

The detailed rules for implementing the administration on issuing automatic import licenses shall be separately enacted by the Ministry
of Commerce according to the present Measures.

Article 24

The power to interpret the present Measures shall remain with the Ministry of Commerce and the General Administration of Customs.

Article 25

The present Measures shall go into effect e as of January 1, 2005. In case any previous provision on the administration is inconsistent
with the present Measures, the latter shall prevail.

Attachment I:

the Catalogue of Goods Subject to the Automatic Import License Administration (omitted)

(Attachments II, III, IV and V are omitted)



 
the Ministry of Commerce, the General Administration of Customs
2004-11-10

 






GENERAL OFFICE OF THE MINISTRY OF COMMERCE NOTICE ABOUT FURTHER CLARIFYING THE PROCEDURES FOR THE APPLICATION FOR, EXAMINATION AND APPROVAL OF FOREIGN-FUNDED COMMERCIAL ENTERPRISES

General Office of Ministry of Commerce

General Office of the Ministry of Commerce Notice about Further Clarifying the Procedures for the Application for, Examination and
Approval of Foreign-funded Commercial Enterprises

Shang Zi Zi [2004] No. 84

After the promulgation of the Measures for the Administration on Foreign Investments in Commercial Fields (hereinafter referred to
as the Measures), some local competent commercial departments inquired of this Ministry about how to make the relevant applications
for foreign-invested commercial enterprises in case that the foreign trade and economic cooperation commission (department or bureau)
of a province (autonomous region, municipality directly under the Central Government, or city specifically designated in the state
plan) fail to become combined with the economic and trade commission (commerce commission, commerce bureau or domestic trade office)
. In order to clarify the above-mentioned issues, we hereby make the following notice:

In light of the provisions of the Measures, the foreign trade and economic cooperation commission (department or bureau) of the province
(autonomous region, municipality directly under the Central Government, or city specifically designated in the state plan) shall
accept an application for the establishment subject to the examination and approval of the Ministry of Commerce (hereinafter referred
to as the MOFCOM), but it shall solicit the opinion of the economic and trade commission (commerce commission, commerce bureau or
domestic trade office) of the same level on the report of feasibility study. Upon the consent of the latter, it shall submit the
aforesaid application to the MOFCOM for examination and approval. The MOFCOM shall release an approval document about the report
of feasibility study and the establishment of enterprise as well as a foreign-invested enterprise approval certificate. With regard
to an application for launching branch stores in multi-provincial areas, the MOFCOM shall solicit the opinion of the foreign trade
and economic cooperation commission (department or bureau) where each branch store is located. The latter shall, upon the consent
of the economic and trade commission (commerce commission, commerce bureau or domestic trade office) of the same level, give a reply
within 1 month as of the receipt of the consultation letter of the MOFCOM.

In light of the Measures, the foreign trade and economic cooperation commission (department or bureau) of the province (autonomous
region, municipality directly under the Central Government, or city specifically designated in the state plan) shall accept an application
for the establishment of an enterprise subject to the examination and approval of the provincial commerce administrative department,
but it shall solicit the opinion of the economic and trade commission (commerce commission, commerce bureau or domestic trade office)
of the same level on the report of feasibility study. Upon the consent of the latter, it shall make examination and approval, and
release an approval document. After the approval document is signed by the economic and trade commission (commerce commission, commerce
bureau or domestic trade office) of the same level, the foreign trade and economic cooperation department (bureau) shall release
a foreign-funded enterprise approval certificate. With regard to an application for launching branch stores in multi-provincial areas,
the foreign trade and economic cooperation commission (department or bureau) where the enterprise is registered shall solicit the
opinion of the foreign trade and economic cooperation commission (department or bureau) where each branch store is located. The latter
shall, upon the consent of the economic and trade commission (commerce commission, commerce bureau or domestic trade office) of the
same level, give a reply within 1 month as of the receipt of the consultation letter. In case of any problem, please contact this
Ministry (Foreign Investment Department or Market Construction Department) immediately.

General Office of the Ministry of Commerce

November 12, 2004



 
General Office of Ministry of Commerce
2004-11-12

 






ANNOUNCEMENT OF MINISTRY OF COMMERCE ON PROMULGATION OF LISTS OF WASTE MATERIALS THAT CAN BE USED AS RAW MATERIAL UNDER THE IMPORT RESTRICTION (THE THIRD BATCH)






Ministry of Commerce

Announcement of Ministry of Commerce on Promulgation of Lists of Waste Materials that Can Be Used as Raw Material under the Import
Restriction (the third batch)

[2004] No.66

November 22, 2004

In accordance with the Laws of the People’s Republic of China on Prevention of Solid Waste Pollution and the Import and Export Administrative
Regulations of the People’s Republic of China, the Lists of Waste Materials that Can Be Used as Raw Material under the Import Restriction
(the third batch) is now announced as follows, which will take effect on January 1, 2005.

Appendix: Lists of Waste Materials that Can Be Used as Raw Material under the Import Restriction (the third batch) htm/e03761.htmNew Page 1

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Appendix:

Lists of Waste Materials that Can Be Used as Raw Material under the Import Restriction (the third batch)

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No.

Commodity Code

Name of Waste Materials Remark

1

8101,9700

waste bits of tungsten

2

8101,9700

waste bits of magnesium

3

8108,3000

waste bits of titanium

4

6310,1000,10

sorted macerated fabrics made of new or unused textile materials (including waste thread, line, rope, cable and related
products)

5

6310,9000,10

other macerated fabrics made of new or unused textile materials (including waste thread, line, rope, cable and related
products)



MEASURES FOR THE ADMINISTRATION OF DEVELOPMENT STRATEGIES AND PLANS OF CENTRAL ENTERPRISES (FOR TRIAL IMPLEMENTATION)

the State-owned Assets Supervision and Administration Commission of the State Council

Order of the State-owned Assets Supervision and Administration Commission of the State Council

No. 10

The Measures for the Administration of Development Strategies and Plans of Central Enterprises (for Trial Implementation), which were
deliberated and adopted at the 21st executive meeting of the State-owned Assets Supervision and Administration Commission of the
State Council, are hereby promulgated and shall go into effect as of January 1, 2005.

Director of the State-owned Assets Supervision and Administration Commission, Li Rongrong

November 26, 2004

Measures for the Administration of Development Strategies and Plans of Central Enterprises (for Trial Implementation)

Article 1

In order to regulate the formulation and administration of development strategies and plans of central enterprises, improve the scientificity
and democracy of development strategies and plans of central enterprises and perform the contributor’s duties according to law, the
present Measures are formulated in accordance with such laws and regulations as the Company Law of the People’s Republic of China
and the Interim Regulations on the Supervision and Administration of State-Owned Assets of Enterprises.

Article 2

The central enterprises (hereinafter referred to as the enterprises) as referred to herein are enterprises for which the State-owned
Assets Supervision and Administration Commission (hereinafter referred to as the SASAC) performs the contributor’s duties.

Article 3

The development strategies and plans of the enterprises as referred to herein are the directional, holistic and overall orientation,
development goals and the corresponding plans for implementation during a given future period of time, which are made by the enterprises
for the purpose of long-term survival and development thereof pursuant to the national development programming and industrial policies
as well as on the basis of the analysis of the status quo and trends of exterior environment and interior conditions.

Article 4

The administration of development strategies and plans of the enterprises shall refer to the examination and approval of the formulation
procedure, and the contents and the supervision over the implementation of the development strategies and plans of the enterprises
by the SASAC in accordance with the law and with reference to the contributor’s duties.

Article 5

The SASAC shall adhere to the following principles for the administration of development strategies and plans of the enterprises:

(1)

to perform the contributor’s duties according to the law;

(2)

to respect the legal rights and interests of the enterprises;

(3)

to promote the strategic adjustment of the layout and structure of the state-owned economy, and instruct the enterprises to carry
out their structural adjustments;

(4)

to be objective, impartial, scientific and to plan as a whole; and

(5)

to enhance work efficiency, observe professional ethics, and strictly keep state secrets and business secrets.

Article 6

The enterprises shall determine the working organs responsible for the formulation of development strategies and plans, set up the
corresponding working systems and report to the SASAC for archival filing.

Article 7

An enterprise shall work out the development strategy and plan thereof in accordance with the prescriptions of the present Measures.
An enterprise may, if possible, establish a decision-making committee of development strategy and plan.

Article 8

The development strategy and plan of an enterprise shall include a medium-term development plan of three to five years and a long-term
goal of ten years. The priority of formulation shall be given to the 3-5 year development plan, which shall implement rolling adjustment
timely according to the changes and development of exterior environment and interior conditions of the enterprise.

Article 9

A development strategy and plan of an enterprise shall mainly contain the following:

(1)

the status quo and developmental environment, including the basic information, analysis of development environment and competitive
power of the enterprise;

(2)

development strategies and guiding ideology;

(3)

development goals;

(4)

the emphasis of development and adjustment and the 3-year plans for implementation;

(5)

safeguard measures for the implementation of the plan; and

(6)

any other contents required.

Article 10

When working out the development strategy and plan, an enterprise may refer to the General Outline for Formulation of the Development
Strategies and Plans of Central Enterprises as formulated by the SASAC and may make proper adjustments in the light of the actual
conditions but the items as brought forward thereby shall be included.

Article 11

An enterprise shall submit the draft of development strategy and plan within the time limit as specified by the SASAC. The contents
submitted shall include the draft text of development strategy and plan and an explanation of the formulation.

Article 12

The SASAC shall conduct the examination and approval on the drafts of development strategies and plan of the enterprise and offer
feedback on the examination and approval opinions to the enterprise within the time limit.

Article 13

The SASAC shall examine and approve the content of a development strategy and plan submitted by an enterprise mainly in the following
aspects:

(1)

whether or not it complies with the national development planning and industrial policies;

(2)

whether or not it complies with the strategic adjustment of the layout and structure of the state-owned economy;

(3)

whether or not it gives prominence to the main business or promotes the core competitive power of the enterprise; and

(4)

whether or not the principles of “giving priority to efficiency” and “sustainable development” have been adhered to.

Article 14

A solely state-owned enterprise or solely state-owned company shall revise the development strategy and plan according to the examination
and approval opinions of the SASAC.

Article 15

The stockholders’ representatives and directors as assigned by the SASAC in the state controlling and state holding enterprises shall
sufficiently state examination and approval opinions of the SASAC at the shareholders’ meetings or boards of directors of the enterprises.

Article 16

An enterprise shall submit a certified true text of the development strategy and plan to the SASAC for archival filing after making
revisions to the development strategy and plan in accordance with the internal decision-making process.

Article 17

While in the process of implementing the development strategy and plan, an enterprise shall work out an annual plan, make contrastive
evaluation between the implementation and the development targets and make adjustments timely.

Article 18

The SASAC shall bring the targets and implementation of development strategies and plans of enterprises into the operation achievement
assessments that it shall carry out on the central enterprises principals.

Article 19

The present Measures shall go into effect as of January 1, 2005.

Attachment:Instructions of Formulation of the Measures for the Administration of Development Strategies and Plans of Central Enterprises (for
Trial Implementation)

The Measures for the Administration of Development Strategies and Plans of Central Enterprises (for Trial Implementation) (hereinafter
referred to as the Measures for the Administration of Planning) as formulated by this Commission have passed the examination and
are promulgated in accordance with the legislative procedure. The present Measures are formulated according to such laws and regulations
as the Company Law of the People’s Republic of China and the Interim Regulations on the Supervision and Administration of State-owned
Assets of Enterprises as well as in the light of the actual conditions of central enterprises.

I.

Formulation Background of the Measures for the Administration of Planning

(I)

The administration of development strategies and plans of the enterprises forms important part of supervision and administration of
the contributor.

Having a bearing upon the long-term development of the enterprise and the value maintenance and appreciation of state-owned assets,
the development strategy and plan of an enterprise belongs to a significant decision of the enterprise. As the contributor, the state-owned
assets supervisory and administrative organ shall perform contributor’s duties to the development strategies and plans of the contributed
enterprises, conduct supervision and administration and maintain the owner’s rights and interests, all these are the basic requirements
for ensuring the full performance of the contributor’s duties and the realization of the combination of managing assets, managing
persons and managing affairs, and the unification of the rights, duties and obligations.

(II)

The administration of development strategies and plans of the enterprises is an essential work.

The development strategy and plan is the overall designing of an enterprise to seek for the long-term survival and sustainable development
when it is confronted with a management environment with violent changes and serious challenges, is the concentrated embodiment of
development strategic ideology of the enterprise, and is the basis for the enterprise to work out various plans and for the SASAC
to conduct office-term assessments on the enterprise principals. To strengthen the administration of development strategy and plan
is a fundamental task both for the enterprise and for the SASAC to supervise and administrate enterprises. In order to enhance the
ability to handle affairs, reduce randomness and blindness in the work and avoid interference in the decision-making power of the
enterprise in operation and management, the essential work shall be strengthened for the administration of development strategy and
plan of the enterprises, the rules and regulations shall be established and improved and the standardized administration shall be
carried out.

(III)

The administration of development strategies and plans of the enterprises and the strategic adjustment of the layout and structure
of the state-owned economy shall be an organic whole.

The SASAC shall, according to the requirements of the strategic adjustment of the layout and structure of the state-owned economy,
study and put forward the direction, principles, emphasis and working thoughts of the strategic adjustment of the layout and structure
of central enterprises as the working guidelines for formulating the development strategies and plans of the enterprises. The enterprises
shall, according to the overall thoughts of the adjustment of the layout and structure of central enterprises and their own conditions,
put forward the development orientation and strategies of their own. These two shall be complementary to each other as an organic
whole.

(IV)

The implementation of the Measures for the Administration of Development Strategies and Plans of Central Enterprises shall be beneficial
to the strengthening of the enterprise’s status as a subject of market economy.

The SASAC shall carry out its administration on the significant investments of the enterprises, which is the important duty of the
contributor. Confronted with increasingly severe market competition, the enterprises shall intensify the strategic research and management
and correctly control its own developmental direction so as to seize opportunities, speed up the development and evade investment
risks at the same time. The SASAC shall carry out the supervision over and administration on the significant investments of the enterprises
mainly based on the development strategies and plans of enterprises, and all investments in main business, within the plan and in
line with the developmental direction of an enterprise shall be decided by the enterprise on its own initiative, and the SASAC shall
carry out the administration of archival filing. All investments in sideline businesses and outside the plan shall be strictly supervised
and administrated. It is beneficial to the strengthening of the enterprises’ status as subjects of market economy in order to create
a more relaxed environment for the enterprises.

(V)

Principles for formulation of the Measures

During the course of formulation of the Measures for the Administration of Planning, we mainly abided by the following principles:

1.

to respect the legitimate rights and interests of the enterprises and promote development of the enterprises; and

2.

to exercise administrative powers according to law and establish lawful and efficient administrative procedures.

(VI)

Process of formulation of the Measures for the Administration of Planning

The formulation of the Measures has undergone one year and five months. During the course of formulation, the working methods such
as the collective discussion and widely soliciting opinions were adopted. The text of the Measures has gone through big amendments
and improvements for more than ten times.

II.

Several Issues Specified by the Measures for the Administration of Planning

(I)

The enterprise is the subject to formulate and implement the development strategy and plan.

The Measures for the Administration of Planning have embodied that the enterprise shall be the subject to formulate and implement
the development strategy and plan. The enterprise shall be responsible for formulating and implementing the development strategy
and plan. The SASAC shall carry out examination and approval on the development strategy and plan, which mainly includes the examination
and approval of formulation procedures and contents and the supervision over the implementation of the development strategy and plan
of the enterprise.

(II)

The principles that shall be abided by for the administration of development strategies and plans of the enterprises

In the administration of development strategies and plans of the enterprises, the following principles prescribed in the Measures
for the Administration of Planning shall be always abided by: First of all, the development strategies and plans formulated by the
enterprises shall conform with the national development planning and industrial policies, shall be of benefit to the strategic adjustment
of the layout and structure of the state-owned economy, and shall give prominence to the main business and sustainable development.
Through the examination and approval conducted on the development strategies and plans of the enterprises, the directions of adjustment
and goals of businesses to be integrated and optimized shall be specified as well as the main business of the enterprise, so that
the steady development of enterprises shall be promoted and the enterprises shall grow stronger and greater. Secondly, the SASAC
shall abide by the said principles when it examines and approves the development strategies and plans of the enterprises and carries
out the supervision over and administration on the implementation.

(III)

The Measures for the Administration of Planning have specified the working procedures for the SASAC in the administration of development
strategies and plans of the enterprises:

1.

An enterprise shall formulate the development strategy and plan of its own pursuant to the requirements and report the draft of development
strategy and plan to the SASAC;

2.

The SASAC shall examine and approve the development strategies and plans of the enterprises and offer feedback on the examination
and approval opinions to the enterprises;

3.

An enterprise shall submit the official text of development strategy and plan to the SASAC for archival filing after making revisions;
and

4.

An enterprise shall implement the development strategy and plan. The SASAC shall include the targets and implementation of the development
strategy and plan of the enterprises into the operation achievement assessments it shall conduct on the enterprise principals.

III.

Structure and Main Contents of the Measures for the Administration of Planning

(I)

The Measures include the purposes of the legislation, scope of application, specific prescriptions and the date of entry into force
pursuant to the requirements of legislation rules of the SASAC.

(II)

The Measures are not divided into chapters and sections in accordance with the prescriptions of the Regulations on the Procedures
for Formulation of Regulations. The structure of the text is arranged according to the framework of such six parts including general
provisions, institutional framework, formulation of development strategy and plan of the enterprise, examination and approval, implementation
and supplementary provisions. The contents mainly include:

1.

the legislative authority of the formulation and the scope of application of the Measures;

2.

the definitions of the development strategies and plans of the enterprises and of the administration of the development strategies
and plans of the enterprises;

3.

the principles that shall be adhered to and the contents that shall be complied with by the SASAC for the administration of planning;

4.

the obligations and duties that shall be performed by the enterprises, such as setting up working institutions and corresponding work
systems, etc.;

5.

the main contents that shall be contained in the development strategies and plans of the enterprises. The Measures prescribe the main
contents which shall be contained in the development strategies and plans of the enterprises under common circumstances, and to match
them, the General Outline for Formulation of the Development Strategies and Plans of Central Enterprises (which has been distributed
to the central enterprises at an earlier date) has been formulated; and

6.

the procedures for the administration of development strategies and plans of the enterprises, namely: submission, examination and
approval, the enterprise’s treatment of examination and approval opinions , archival filing (submission of certified true texts),
implementation and adjustment, etc..

IV.

Implementation of the Measures for the Administration of Planning

The present Measures shall go into effect as of January 1, 2005. The administration of development strategies and plans of the enterprises
regulated by them is exploratory, therefore the experiences shall be continuously summed up in the administration work ahead so as
to improve the present Measures gradually and make timely revisions on them according to the changes of circumstances.

 
the State-owned Assets Supervision and Administration Commission of the State Council
2004-11-26

 



DETAILED IMPLEMENTATION RULES FOR THE REGULATION ON THE ADMINISTRATION OF ADVERTISING

the State Administration for Industry and Commerce

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

No.18

The revised Detailed Implementing Rules for the Regulation on the Administration of Advertising, which were adopted at the executive
meeting of the State Administration for Industry and Commerce, are promulgated hereby and shall go into effect as of January 1, 2005.

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

November 30, 2004

Detailed Implementation Rules for the Regulation on the Administration of Advertising

Article 1

The present Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulation on the Administration
of Advertising (hereinafter referred to as the Regulation).

Article 2

The administrative scope as prescribed in Article 2 of the Regulation shall include:

(1)

advertisements that are published in newspapers, periodicals, books, directories, etc.;

(2)

advertisements that are broadcast on radio or television or shown in films, videos, slide shows, etc.;

(3)

advertisements made by way of road signs, neon lights, electronic display boards, show windows, lanterns, walls, etc. by using the
buildings or space of streets, public squares, airports, stations, wharves, etc.,;

(4)

advertisements that are displayed or posted inside or outside such places as theatres, stadiums, cultural centers, exhibition halls,
hotel, restaurants, pleasure grounds, marketplaces, etc.;

(5)

advertisements that are displayed, drawn or posted on automobiles, vessels, airplanes or other vehicles;

(6)

various types of advertising propaganda materials which are sent by mail;

(7)

advertising propaganda made by means of giving complimentary objects;

(8)

advertisements that are published, broadcasted, displayed or posted by other media or means .

Article 3

Any enterprise that applies for the approval to engage in advertising business, in addition to meeting such conditions as enterprise
registration etc., shall also meet the following conditions:

(1)

Having established an institution responsible for the market survey and having the relevant specialized personnel thereof;

(2)

Having managerial personnel who have good knowledge of advertising administrative legislation and the personnel who are able to undertake
the design, production and editing of advertisements;

(3)

Having full-time accounting personnel;

(4)

Having the ability to deal in the advertisements of foreign businessmen when applying to contract on or to act as an agent in operating
the advertisement of foreign businessmen.

Article 4

Broadcasting stations, TV stations, newspaper or periodical offices, public institutions, and other institutions as prescribed by
laws and administrative regulations shall meet the following conditions in their registration of permit for advertising operations:

(1)

Having the media or means to directly publish advertisements;

(2)

Having established a special organization for advertising operations;

(3)

Having the equipment and place for advertising operations;

(4)

Having specialized advertising personnel and censors familiar with the advertising laws and regulations.

Article 5

In case a Sino-foreign equity joint venture, a Sino-foreign cooperative enterprise or a foreign-funded enterprise applies for engaging
in advertising business, it shall be handled in accordance with the Provisions on the Administration of Foreign-funded Advertising
Enterprises and with reference to the Regulation, these Detailed Implementing Rules and other relevant provisions.

Article 6

In case an individual industrial and commercial household applies for engaging in advertising business, in addition to meeting the
conditions as prescribed in the Provisional Regulations on the Administration of Individual Industrial and Commercial Household Operations
in Towns and Villages, the individual shall have advertising professional skills and good knowledge of the advertising laws and regulations.

Article 7

In accordance with Article 6 of the Regulation, the advertising operator registration procedure shall be handled as follows:

(1)

An enterprise to engage in advertising business shall apply to the administration for industry and commerce with jurisdiction for
enterprise registration and shall be issued a business license.

(2)

Broadcasting stations, TV stations, newspaper or periodical offices, public institutions and other institutions as prescribed by laws
and administrative regulations, when applying for concurrently engaging in advertising business and being subject to registration
of permits for advertising operations, shall apply to the administration for industry and commerce of the province, autonomous region,
municipality directly under the Central Government and city under separate State planning or the authorized administrative body at
or above the county-level and shall be issued an Advertising Operation Permit.

(3)

An individual industrial and commercial household who engages in advertising operations shall apply to its local administration for
industry and commerce and shall be issued a business license after being registered with the local administration for industry and
commerce in accordance with the law.

Article 8

Any advertiser, who applies for cigarette advertising by means of such media as broadcasting, television, newspaper and periodical,
shall be subject to the approval of the administration for industry and commerce of his province, autonomous region, municipality
directly under the Central Government or the authorized municipal administrative body under provincial jurisdiction.

Article 9

In accordance with Article 7 of the Regulation, any client who applies for publishing an advertisement shall present the corresponding
certificates as follows:

(1)

An enterprise or an individual industrial and commercial household shall present its business license for inspection.

(2)

An administrative organ, social group or public institution shall present the certificate of its respective entity.

(3)

An individual shall present a certificate issued by its local township government, subdistrict office or the entity where he works.

(4)

A resident representative office of a foreign enterprise shall present for inspection its Registration Permit of Resident Representative
Office of Foreign Enterprise in China.

Article 10

In accordance with the provisions of item (1) of Article 11 of the Regulation, whoever applies for publishing an advertisement of
commodities shall present for inspection a quality certificate certifying that the commodity is up to State standards, ministerial
standards (specialized standards) or enterprise standards.

Article 11

In accordance with item (7) of Article 11 of the Regulation, relevant certificates shall be represented where anyone applies for
publishing any advertisements of the following types:

(1)

Whoever advertises on the publication of a newspaper or periodical shall present for inspection the registration certificate approved
by the press and publication organ of his province, autonomous region or municipality directly under the Central Government.

(2)

Whoever advertises on the publication of a book shall present a certificate of approval for the establishment of the publishing house
issued by the press and publication organs.

(3)

Whoever advertises by means of any of the various types of artistic and cultural performances shall present certification documents
in accordance with relevant provisions.

Article 12

In accordance with item (8) of Article 11 of the Regulation, relevant certificates shall be presented where anyone applies for carrying
and broadcasting advertisements of the following content:

(1)

Whoever advertises any of the various commodity fairs, order-placing meetings, trade fairs, etc., shall present a certificate of approval
issued by the competent authority of the sponsor.

(2)

Whoever advertises by means of notices or announcements concerning individual persons shall present a certificate issued by the institution
that he works for, township people’s government or subdistrict office.

Article 13

In case an advertiser applies for the publishing, broadcasting, displaying or posting of an advertisement, it shall present the original
copies of certificates as required or effective photocopies thereof.

Article 14

Agency fee for undertaking advertising work shall be 15% of the advertising expense.

Article 15

In case a domestic enterprise publish advertisements abroad, or if a foreign enterprise (organization) or a person of foreign nationality
undertakes and publish advertisements within the Chinese territory, it shall entrust an enterprise as an advertising agent who is
registered in China and authorized to provide advertising services. The violator shall be imposed on a fine of no more than three
times the illegal earnings but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000 Yuan if no illegal gains
were generated.

Article 16

In accordance with Article 12 of the Regulation, when acting as an agent for or as the issuer of an advertisement, the agent or issuer
shall be responsible for censoring the content of the advertisement and examining relevant certificates and shall be enpost_titled to
require the advertiser to provide any other necessary certificates and documents. An advertising agent or issuer shall not be permitted
to act as an agent of or issue an advertisement if the certificate is found to be illegal or incomplete or if the content of the
advertisement is found to be false.

An advertising operator shall establish a system of keeping records for and reexamining the advertising businesses undertaken and
service filing for advertisements. An advertising service file shall be kept for no less than one year.

Article 17

Where an advertiser violates the provisions of Article 3 or item (5) of Article 8 of the Regulation by using an advertisement to
mislead or cheat users or consumers, the advertiser shall be ordered to publish a corrected advertisement within a corresponding
area. In light of the seriousness of the case in question, a notice of criticism may be circulated and the advertiser may be imposed
a fine of no more than three times the illegal gains but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000
Yuan if there are no illegal gains and shall be liable to pay compensation if the advertiser have caused any damage to users or consumers.

Where an advertising operator assists a advertiser to practice fraud, in light of the seriousness of the case in question, a notice
of criticism may be circulated, the illegal gains, if any, may be confiscated and the advertising operator may be imposed on a fine
of no more than three times the illegal earnings but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000 Yuan
if there is no illegal gains. When the case is serious, the advertising operator may be ordered to suspend business operations for
rectification and its business license or Advertising Operation Permit may be revoked. Joint and several liabilities shall be borne
by the operator if damage results to users or consumers.

The costs of issuing an amended advertisement shall be borne jointly by the advertiser and the advertising operator.

Article 18

Where the provisions of Article 4 or item (6) of Article 8 of the Regulation are violated, a notice of criticism may be circulated,
the illegal gains, if any, may be confiscated, and a fine of no more than 5, 000 Yuan may be imposed on the violator or an order
may be given to suspend business operations for rectification in light of the seriousness of the case in question.

Article 19

Where an advertising operator violates the provisions of Article 6 of the Regulation by engaging in advertising business without
a necessary license, it shall be punished in accordance with the relevant provisions of the Measures for Investigating into, Punishing
and Banning Permitless Business Operations. Where an advertising operator violates the provisions by exceeding its approved business
scope, it shall be punished according to relevant provisions of the laws and regulations on the administration of enterprise registration.

Article 20

Where an advertiser violates the provisions of Article 7 of the Regulation, in light of the seriousness of the case in question,
a notice of criticism may be circulated and a fine of no more than 5,000 Yuan may be imposed.

Article 21

Where any provision of items (1), (2), (3) or (4) of Article 8 of the Regulation is violated, a notice of criticism shall be circulated
regarding the advertising operator involved, the illegal gains, if any, shall be confiscated and a fine of no more than 10,000 Yuan
shall be imposed on. As for the advertiser involved, a notice of criticism may be circulated and a fine of no more than 10,000 Yuan
may be imposed, in light of the seriousness of the case in question.

Article 22

Where a news organization violates the provisions of Article 9 of the Regulations a notice of criticism may be circulated, the illegal
gains, if any, may be confiscated and a fine of no more than 10,000 Yuan may be imposed in light of the seriousness of the case in
question.

Article 23

Where an advertising operator violates the provisions of Article 10 of the Regulation, a notice of criticism may be circulated, the
illegal gains, if any, may be confiscated and a fine of no more than 10,000 Yuan may be imposed, in light of the seriousness of the
case in question.

Article 24

Where an advertiser violates the provisions of Article 11 of the Regulation by forging, altering, fraudulently using or illegally
copying an advertising certificate, a notice of criticism shall be circulated and a fine of no more than 5,000 Yuan shall be imposed
on the advertiser.

Any advertising operator who violates the provisions of items (3) of Article 11 of the Regulation shall be fined up to 1,000 Yuan.

Where an advertising operator provides an advertiser with illegal or false certificates, a notice of criticism shall be circulated,
a fine of no more than 5, 000 Yuan shall be imposed and the operator shall bear joint and several liabilities.

Article 25

Where an advertising operator violates the provisions of Article 12 of the Regulation, a notice of criticism may be circulated, the
illegal gains, if any, may be confiscated and a fine of no more than 3,000 Yuan may be imposed, in light of the seriousness of the
case in question. In the event of incurrence of a fraudulent advertisement, the operator shall be responsible for issuing an amended
advertisement. Whoever brings damage or losses to users or consumers shall bear joint and several liabilities.

Article 26

If anyone violates the provisions of Article 13 of the Regulation by illegally displaying or posting advertisements, the illegal
gains, if any, shall be confiscated, a fine of no more than 5,000 Yuan shall be imposed and a time limit shall be specified for the
dismantling and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within
the specified time limit, the dismantling and removal of the advertisement shall be enforced coercively, and the costs incurred thereby
shall be borne by the party who displayed or posted the advertisement.

Article 27

Where the provisions of Articles 14 or 15 of the Regulation are violated, a notice of criticism may be circulated, an order may be
issued to rectify the situation within a specified time limit, the illegal gains, if any, may be confiscated and a fine of no more
than 5,000 Yuan may be imposed, in light of the seriousness of the case in question.

Article 28

The present Detailed Implementing Rules shall go into effect as of January 1, 2005



 
the State Administration for Industry and Commerce
2004-11-30

 






CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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