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NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON FURTHER STRENGTHENING TAX IMPOSITION ADMINISTRATION OF CARGO TRANSPORTATION

The State Administration of Taxation

Notice of the State Administration of Taxation on further Strengthening Tax Imposition Administration of Cargo Transportation

Guo Shui Han [2006] No.102

January 25, 2006

To states tax bureaus, local tax bureaus of all provinces, autonomous region, municipalities directly under the central government,
cities specifically designated in the state plan:

Since the distribution of Notice of the State Administration of Taxation on further Strengthening Tax Imposition Administration of
Cargo Transportation ( Guo Shui Fa [2003] No.121) by the State Administration of Taxation in October 2003, all levels of states tax
bureaus and local tax bureaus have made certain achievement on strengthening tax imposition of cargo transportation through coordinated
efforts. However, judging by the situations reflected by the media and the investigation conducted by the State Administration of
Taxation, problems still exists in cargo transportation, such as loose invoice administration, inferior information acquisition,
unfulfilled auditing and examination, unsmooth operation of the joint examination. For the purpose of further strengthening tax
imposition taxation, the related issues is hereby notified as follows

I.

local tax authorities shall abide by the provisions of in Guo Shui Fa [2003] No.121 to undertake the confirmation of invoice issuing
taxpayer of cargo transportation. For those taxpayers ineligible for the confirmation hereof, local tax authorities shall not give
the confirmation hereof to them, for those having been given the conformation hereof, local tax authorities all revoke the qualification
hereof.

II.

local tax authorities shall conduct strict administration upon invoice administration of cargo transportation, establish and perfect
cargo invoice administrative measures of cargo transportation. As for the newly-established cargo transportation enterprises, local
tax authorities shall come to the place of business of taxpayers to conduct interview investigation, for those cargo transportation
units and individuals having failed to pay business tax, local authorities shall not offer them cargo transportation invoice to prevent
them from abusing transport invoice to attract tax from other regions.

III.

should the invoice issuing taxpayer in cargo transportation have been registered in a document demonstrating the abnormality hereof,
local tax authorities shall cease the sale of transportation tax hereto to prevent them from drawing and utilizing cargo transportation
invoice without declaration of taxpaying.

IV.

the tax declaration and examination shall be put into effect. All levels of local tax authorities, when accepting taxpaying declaration,
shall undertake auditing on the integrity of various taxpaying declaration documents and logic of basic data hereof. Local tax authorities
shall, when accepting business tax declaration from cargo transportation enterprises, identify the declared sum with the total sum
in the invoice list to ensure the declared list is the carrying trade- invoice -counterfoil one after taxpaying. Given problems emerge
in the declaration, local tax authorities shall cope with them promptly to improve sustained authenticity and accuracy hereof.

V.

local tax authorities shall utilize communication means to conduct regular contrast between the sum of business volume and income
of business income tax declared by the taxpayer to prevent from falsified declaration of income, tax evasion and etc.

VI.

the taxpaying assessment of cargo transportation shall be carried out actively. For the enterprises with abnormal utilization of cargo
transportation invoice and declaration, local tax authorities shall deal with them differentially: carry out arranged dialogue or
on-the-spot investigation. Should the tax-collecting is suspected of violation of law and needed to be placed on file, local tax
authorities shall transfer them to tax inspection department for investigation and prosecution.

VII.

all state tax bureaus and local tax bureaus shall, in accordance with the prescribed time limit, integrally collect invoice bills
of carrying trade. The provincial state tax bureaus and local tax bureaus shall submit the summarized invoice bill hereof to the
State Administration of Taxation.

VIII.

state tax bureaus and local tax bureaus shall intensify their coordination to convene regular joint meeting to inform the tax collection
and administration on cargo transportation. Data switching channels of carry trade shall be established to exchange the status quo
of the administered client and data of declared business tax. For those utilizing carrying trade to evade tax, state tax bureaus
and local tax bureaus shall undertake joint investigation to promote their cash-handling performance and the efficiency of tax examination.

IX.

state tax bureaus and local tax bureaus shall strictly abide by the requirements of the State Administration of Taxation to conduct
examination and auditing upon the abnormal invoice of carrying trade and exchange the information about their examination and auditing.
Should the state tax authorities, after their examination and auditing, deem that it is of necessity for the local tax authorities
in responsible to carry out further examination and auditing, state tax bureaus shall transfer it to local tax authorities for further
examination and auditing, subsequently the local tax bureaus from the invoice-drawing party shall feedback the result to state tax
bureaus.

X.

state tax bureaus and local tax bureaus shall bring the tax imposition administration of carrying trade under the preferred areas
of law enforcement and examination and investigate the responsibilities of related units and personnel having failed to abide by
the prescribed provisions to perform tax imposition, administration, examination and information transfer.



 
The State Administration of Taxation
2006-01-25

 






INTERIM ADMINISTRATIVE MEASURES FOR COMMERCIAL BANKS TO PROVIDE OVERSEAS FINANCING MANAGEMENT SERVICES

Circular of the People’s Bank of China, China Banking Regulatory Commission and the State Administration of Foreign Exchange on the
Promulgation of the Interim Administrative Measures for Commercial Banks to Provide Overseas Financing Management Services

Yin Fa [2006] No. 121

Shanghai Head Office of the People’s Bank of China, each branch and business management department of the People’s Bank of China and
its central sub-branch of all provincial (or autonomous regional) capital cities, each central sub-branch of Dalian, Qingdao, Ningbo,
Xiamen and Shenzhen, each banking regulatory bureau of all provinces, autonomous regions, municipalities directly under the Central
Government and cities specifically designated in the state plan, each branch and foreign exchange department of the State Administration
of Foreign Exchange of all provinces, autonomous regions and municipalities directly under the Central Government, each branch of
the State Administration of Foreign Exchange of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, each wholly state-owned commercial
bank and joint-stock commercial bank:

For the purpose of propelling the convertibility of Renminbi capital accounts in an orderly and controllable way, satisfying the reasonable
demands of domestic institutions and individuals for financing investment and asset management abroad, and promoting the balance
of international payments, the People’s Bank of China, China Banking Regulatory Commission and the State Administration of Foreign
Exchange have formulated the Interim Administrative Measures for Commercial Banks to Provide Overseas Financing Management Services,
which are hereby promulgated. Please abide hereby.

Each branch and business management department of the People’s Bank of China shall immediately, after receiving this Circular, transmit
it to the city commercial banks and foreign capital banks within their respective jurisdictions.

The People’s Bank of China

China Banking Regulatory Commission

The State Administration of Foreign Exchange

April 18, 2006

Interim Administrative Measures for Commercial Banks to Provide Overseas Financing Management Services
Chapter I General Provisions

Article 1

For the purpose of regulating commercial banks to provide overseas financing management services, these Measures are formulated in
accordance with the related laws and administrative regulations.

Article 2

The term “providing overseas financing management services” as mentioned in these Measures shall refer to the business activities
carried out in light of the related requirements of these Measures by commercial banks that are qualified for overseas financing
management services and are entrusted by domestic institutions and individual residents (except domestic non-residents, hereinafter
referred to as “investors”) to make stipulated financing product investments with the investors’ funds.

Article 3

China Banking Regulatory Commission (hereinafter referred to as “CBRC”) shall take charge of the admittance administration and business
administration of commercial banks to provide overseas financing management services.

Article 4

The State Administration of Foreign Exchange (hereinafter referred to as “SAFE”) shall take charge of the foreign exchange quota
administration on overseas financing management services of commercial banks.

Article 5

A commercial bank shall, when making overseas financing management investments for customers, follow the laws and regulations of
the state, the provisions of the state on foreign exchange administration and industry administration, as well as the laws and regulations
at the locality of the investments.

Article 6

Where a commercial bank is entrusted by a domestic individual resident to provide overseas financing management services, it shall
follow the related provisions on the administration of commercial banks’ provision of personal financing management services; where
a commercial bank is entrusted by a domestic institution to provide overseas financing management services, it shall conduct it by
referring to the related requirements on building up internal control rules and risk management systems as well as other prudence
requirements pertaining to the administration of commercial banks’ provision of personal financing management services.

Article 7

A commercial bank shall, when providing overseas financing management services, take practical and effective measures to intensify
the management of related risks.

Chapter II Business Admittance Management

Article 8

A commercial bank shall, when intending to provide overseas financing management services, apply with CBRC for approval.

Article 9

A commercial bank providing overseas financing management services shall be a designated foreign exchange bank, and shall satisfy
the following requirements:

(1)

it has established and improved an effective market risk management system;

(2)

it has sound internal control rules;

(3)

it is of the ability for and experience in overseas investment management;

(4)

it has not been penalized by CBRC within one year before applying for the financing management service activities; and

(5)

other conditions on prudence as required by CBRC.

Article 10

A commercial bank shall, when applying with CBRC for the qualification for providing overseas financing management services, provide
the following materials (in triplicate):

(1)

an application letter;

(2)

the related internal control and risk management systems;

(3)

the draft of the custody agreement; and

(4)

other documents as required by CBRC.

Article 11

CBRC shall abide by the related procedures and provisions on administrative license when examining and approving commercial banks’
qualifications for overseas financing management services.

Article 12

Where a commercial bank sells personal financing management products within the territory of China after obtaining the qualification
for overseas financing management services, the activities shall be subject to the related provisions in the Interim Measures for
the Administration of Commercial Banks’ Personal Financing Management Services.

Where a commercial bank sells financing management products or provides comprehensive financing management services to domestic institutions
after obtaining the qualification for overseas financing management services, the admittance administration shall be subject to the
report system, while the matters concerning report procedures and requirements as well as management of related risks shall be handled
by referring to the related provisions on the administration of personal financing management services.

Chapter III Quotas of Foreign Exchanges Purchased for Investments and Conversion Administration

Article 13

Where a commercial bank is entrusted by an investor to provide overseas financing management services with foreign exchanges purchased
with Renminbi, it shall apply with SAFE for the quota of foreign exchanges purchased for overseas financing management services.

Where a commercial bank is entrusted by an investor to invest in overseas financing management with the investor’s own foreign exchanges,
the amount of funds under entrustment shall not be counted into the quota of foreign exchanges purchased for investments as approved
by SAFE.

Article 14

A commercial bank shall, when applying for the quota of foreign exchanges purchased for overseas financing management, provide the
following documents to SAFE:

(1)

the application letter (including but not limited to the basic information on the applicant, the requested quota of foreign exchanges
purchased for investments, the investment plan and etc.) ;

(2)

the approval document on the business qualification by CBRC;

(3)

the draft of the custody agreement;

(4)

the specimen of the agreement of entrustment (in standard form) to be concluded with the certain investor, which shall include the
rights and obligations of both parties, the assumption of proceeds and risks, and other related contents; and

(5)

other documents as required by SAFE.

SAFE shall make a reply on approval or disapproval, inform the applicant in writing and make a copy to CBRC within 20 working days
as of the receipt of the entire application documents.

Article 15

A commercial bank may, within the approved quota of purchased foreign exchanges, issue to investors the overseas financing management
products whose prices are marked in Renminbi, and shall uniformly go through the formalities for purchase of foreign exchanges for
raising Renminbi funds.

Article 16

A commercial bank shall pay the investment principals and proceeds to the investors after the overseas financing management funds
are remitted to China. Where the investor purchases foreign exchanges with Renminbi for investment, the commercial bank shall pay
in Renminbi to the investors after settlement of foreign exchanges; while if an investor makes investments with foreign exchanges,
the commercial bank shall transfer the foreign exchanges into the investor’s original account, or may, if the original account has
been closed up, transfer the foreign exchanges into the account appointed by the investor.

Article 17

The quota of net foreign exchanges purchased by a commercial bank for providing overseas financing management services shall not
exceed the quota of purchased foreign exchanges, which is approved by SAFE.

Article 18

A commercial bank shall take effective measures to offset and manage the foreign exchange rate risks of overseas financing management
services by making use of forward foreign exchange settlement and other businesses.

Chapter IV Administration on Inward and Outward Funds

Article 19

A commercial bank shall, when making overseas financing management investments, entrust another domestic commercial bank approved
by CBRC as qualified for custody business as the custodian to keep all the assets used for overseas investment.

Article 20

In addition to the duties as prescribed by CBRC, the custodian shall fulfill the following functions and duties:

(1)

opening the domestic custody account, the settlement account on use of overseas foreign exchange funds and the securities custody
account in light of the financing management plan on behalf of the commercial bank;

(2)

supervising the commercial bank’s investment operation, and timely reporting it to SAFE when finding any of the commercial bank’s
investment instructions violates any law or rule;

(3)

preserving the related information like the records on the remittance and conversion of the commercial bank’s funds, collection and
payment of foreign exchanges, flow of funds and etc., with the time of preservation to be not less than 15 years;

(4)

making statistical reports on balance of international payments in accordance with the provisions;

(5)

assisting SAFE in inspecting the use of the commercial bank’s funds abroad; and

(6)

other functions and duties as prescribed by SAFE in light of the principle of prudential supervision.

Article 21

A custodian shall submit the related reports according to the following requirements:

(1)

it shall, within 5 working days as of opening the domestic custody account, the settlement account on use of overseas foreign exchange
funds and the securities custody account on behalf of the commercial bank, report it to CBRC and SAFE;

(2)

it shall, within 5 working days as of the day when the commercial bank remits the principals or proceeds out or back, report the remittance
of funds to SAFE;

(3)

it shall, within 5 working days as of the end of each month, report the incomes and expenditures of the commercial bank’s domestic
custody account to SAFE;

(4)

it shall, within 1 month as of the end of each accounting year, submit to SAFE the commercial bank’s statement on using foreign exchange
funds abroad in the last year;

(5)

it shall timely report it to CBRC and SAFE when finding any of the commercial bank’s investment instructions violates any law or rule;
and

(6)

other for-report matters as prescribed by CBRC and SAFE.

Article 22

A commercial bank shall, after receiving SAFE’s approval document on the quota of purchased foreign exchanges, conclude a custody
agreement with the domestic custodian upon the strength of the approval document, and open a domestic custody account. The commercial
bank shall, within 5 working days as of opening the domestic custody account, submit the formal custody agreement to SAFE.

Article 23

The scope of incomes of a commercial bank’s domestic custody account shall be the foreign exchange funds transferred by the commercial
bank into the aforesaid account, the investment principals and proceeds remitted from abroad and other income as prescribed by SAFE.

The scope of expenditures of a commercial bank’s domestic custody account shall be the funds transferred into the settlement account
on use of overseas foreign exchange funds, the funds remitted back to the commercial bank, the currency conversion fees, the custody
fees, the asset management fees, various commissions and other expenditures as prescribed by SAFE.

Article 24

A domestic custodian shall, in light of the principle of prudence and according to the risk management requirements and commercial
practices, select an overseas financing institution as its overseas custody agent.

The domestic custodian shall open the settlement account on use of the commercial bank’s foreign exchange funds and the securities
custody account at the overseas custody agent, and use the aforesaid accounts for the funds settlement business and securities custody
business with overseas securities registration and settlement institutions.

Article 25

A domestic custodian and its overseas custody agent must separately set custody accounts for different commercial banks.

Chapter V Information Disclosure and the Supervision and Management Thereon

Article 26

A commercial bank shall, when intending to buy overseas financing products, accord with the related risk management provisions of
CBRC.

CBRC shall, under the related laws and regulations, supervise and manage the risks in commercial banks’ overseas financing management
services.

Article 27

A commercial bank providing overseas financing management services shall, when selling its products, notify the investors in details
and in an all-round way of the investment plan, product features and related risks, so that the investors may make their choices
independently.

Article 28

A commercial bank providing overseas financing management services shall, at regular intervals, disclose the information on investment
conditions, investment behaviors and risk conditions and etc. to investors.

Article 29

A commercial bank providing overseas financing management services shall, in accordance with the provisions, fulfill the obligations
of making statistical reports on settlement and sale of foreign exchanges.

Article 30

SAFE may, when required by the balance of payments, adjust the quotas of commercial banks that provide overseas financing management
services for purchasing foreign exchanges for investment.

Article 31

CBRC and SAFE may require a commercial bank, a domestic custodian or an overseas custody agent to provide related information on
the commercial bank’s overseas investment activities, and may, when necessary, make on-the-spot inspections on the commercial bank
in light of their supervisory duties.

Article 32

Where a commercial bank falls under any of the following circumstances, it shall, within 5 working days after the circumstance occurs,
report it to CBRC and SAFE for archiving:

(1)

the custodian or the custody agent is changed;

(2)

the registered capital or the structure of shareholders of the company is changed greatly;

(3)

it is involved in any lawsuit or is severely penalized; or

(4)

other circumstances as prescribed by CBRC and SAFE.

Article 33

Where a commercial bank’s domestic custodian is under any of the following circumstances, it shall, within 5 working days after the
circumstance occurs, report it to SAFE:

(1)

its registered capital or stock right structure is changed greatly;

(2)

it is involved in any major lawsuit or is severely penalized; or

(3)

other matters as prescribed by SAFE.

Article 34

Where a commercial bank or its domestic custodian violates these Measures, it shall be imposed upon administrative penalties by SAFE.
If the circumstance is serious, CBRC and SAFE shall have the power to demand the commercial bank to change the domestic custodian,
or to revoke the commercial bank’s quota of foreign exchanges purchased for overseas financing management services. In case the overseas
custody agent refuses to provide related information, CBRC and SAFE shall have the power to demand to change the overseas custody
agent.

Chapter VI Supplementary Provisions

Article 35

Where a commercial bank invests in the financing products in Hong Kong Special Administrative Region or Macao Special Administrative
Region, it shall take the related clauses in these Measures as reference.

Article 36

The power to interpret these Measures shall remain with the People’s Bank of China and CBRC.

Article 37

These Measures shall enter into force as of the date of promulgation.



 
the People’s Bank of China, China Banking Regulatory Commission, the State Administration of Foreign Exchange
2006-04-18

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 28 – CHANGES OF ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND ERROR CORRECTION

Ministry of Finance

Accounting Standards for Enterprises No. 28 – Changes of Accounting Policies and Accounting Estimates and Error Correction

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basis Standards for the purpose of regulating
the application of enterprise accounting policies, the changes of accounting policies and accounting estimates, the recognition and
measurement of the error correction. in the prior periods, as well as the disclosure of relevant information. .

Article 2

The effects on income tax by the changes of accounting policies and the error correction in the prior periods shall be governed by
the Accounting Standards for Enterprises No. 18 – Income Tax.

Chapter II Accounting Policies

Article 3

With regard to identical or similar transactions or events, an enterprise shall adopt the same accounting policies, unless it is otherwise
prescribed by other accounting standards.

The term “accounting policies” refers to the specific principles, basis and accounting treatment methods adopted by an enterprise
for accounting recognition, measurement and reporting.

Article 4

The accounting policies adopted by an enterprise shall be consistent for each accounting period and the prior and subsequent accounting
periods, and shall not be changed randomly. However, if one of the following conditions is satisfied, accounting policy may be changed:

(1)

The requirement by any law, administrative regulation, or national uniform accounting system changes; or

(2)

More reliable and more relevant accounting information shall be provided through changing the accounting policy. .

Article 5

The following items shall not belong to the changes of accounting policies:

(1)

A new accounting policy is adopted for transactions or events occurred in the current period which are different essentially from
those occurred in the prior periods; and

(2)

A new accounting policy is adopted for transactions or events which occur for the first time or are unimportant.

Article 6

Where an enterprise changes an accounting policy according to the requirement of any law, administrative regulation or the national
uniform accounting system, it shall implement it pursuant to the relevant accounting provisions of the state.

If a change in accounting policy can provide more reliable and more relevant accounting information, the retrospective adjustment
method shall be adopted for handling. The amount of cumulative effect by the change in accounting policy shall be adjusted and presented
as the retained earnings at the beginning of the earliest prior period, and the beginning balance of other relevant items as well
as to other comparative data disclosed in the prior period presented shall be adjusted along with, unless the cumulative effect of
a change in accounting policy is not feasible essentially.

The retrospective adjustment method refers to a method whereby, for a change in accounting policy in respect of particular transactions
or events, the changed accounting policy is adopted as if it had been in use from the day when such transactions or events first
occurred, and the relevant items in the financial statements are adjusted accordingly.

The cumulative effect of a change in accounting policy refers to the difference between the adjusted beginning balance of retained
gain of the earliest prior period presented if the adjusted accounting policy had been applied retrospectively for all prior periods
and the present amount of the retained earnings.

Article 7

If it is impracticable to determine the effect of a change in accounting policy for the prior period presented, the new accounting
policy shall be applied from the beginning of the earliest period for which retrospective application is practicable.

If, at the beginning of the current period, it is impracticable to determine the cumulative effect of the change in accounting policy
for all prior periods, the prospective application method shall be adopted.

The term “prospective application method” refers to a method whereby for a change in accounting policy, the new accounting policy
is applied to the transactions or events occurring on the date of change and in subsequent periods; or refers to a method whereby,
for a change in accounting estimate, the effects of the change of the accounting estimate are recognized during the current period
of the change of accounting estimate and in future periods.

Chapter III Changes in Accounting Estimates

Article 8

An enterprise may need to revise its accounting estimates due to a change in the basis for estimates, or due to the obtainment of
new information, accumulation of more experiences as well as the subsequent development and changes. The basis for the changes in
accounting estimates shall be genuine and reliable.

A change in accounting estimate refers to an adjustment to the book value of an asset or liability or to the amount of expense of
an asset during a certain period, resulting from the changes in the current situation of the asset or liability and the expected
economic benefits and obligations.

Article 9

The prospective application method shall be adopted by an enterprise for treating the changes in accounting estimates.

If a change in accounting estimate affects only the current period of the change, the effect of the change shall be recognized in
the period of the change. If any change in an accounting estimate affects both the period of the current change and future periods,
the effects of the change shall be recognized in the period of the change and in future periods.

Article 10

Where it is difficult for an enterprise to determine a change as one in accounting policy or as one in an accounting estimate, it
shall treat it as a change in an accounting estimate.

Chapter IV Corrections of Prior Period Errors

Article 11

Prior period errors refer to the failure to use or misuse of the following two kinds of information and result in the omissions from
or mis-presentation in financial statements for the prior periods :

(1)

The reliable information that was available and could reasonably be expected to be obtained and taken into account when preparing
the financial statements for the prior periods;

(2)

The reliable information that was available when the financial reports of prior periods are authorized for issue;

Generally prior period errors include calculation mistakes, mistakes in applying accounting policies, oversights or misinterpretations
of facts, consequences of fraud, inventory overage, fixed asset overage, etc.

Article 12

An enterprise shall adopt the retrospective restatement method to correct any important errors of prior period, however, unless it
is impractical to recognize the amount of cumulative effects of the prior period error.

The term “retrospective restatement method” refers to a method whereby, when a prior period error is discovered, the relevant items
of the financial statements are corrected as if the prior period error had never occurred.

Article 13

If it is impracticable to recognize the effect of a prior period error, the enterprise may begin to adjust the beginning balance of
the retained earnings of the earliest prior period for which the retrospective restatement is practical, and in the meanwhile, adjust
the beginning balances of other relevant items in the financial statements, or may adopt the prospective application method.

Article 14

An enterprise shall, in the financial statements of the current period where it discovers any important prior period error, adjust
the comparative data of the prior period.

Chapter V Disclosure

Article 15

An enterprise shall, in its notes, disclose the following information related to the changes in accounting polices:

(1)

The character, contents and reasons for the changes of accounting policies;

(2)

The names of the affected items and the adjusted amounts in the financial statements for the current period and all the prior periods
presented; and

(3)

If it is unable to make retrospective adjustments, it shall state the facts, reasons, date of beginning of the application of the
new accounting policies as well as the information about the concrete application thereof.

Article 16

An enterprise shall, in its notes, disclose the following information related to the changes in accounting estimates:

(1)

The contents of and reasons for the changes in accounting estimates;

(2)

The effects amount in the current period and future periods by changes in accounting estimates; and

(3)

If it is unable to recognize the effect amount of a change in the accounting estimate, it shall disclose the facts and reasons.

Article 17

An enterprise shall, in its notes, disclose the following information related to the corrections in prior period errors:

(1)

The nature of the prior period errors;

(2)

The names of the affected items and the corrected amounts in the financial statements for all prior periods presented.

(3)

If it is unable to make a retrospective restatement, it shall state the facts, reasons, time point of beginning the correction of
the prior period error, as well as the information about the concrete correction.

Article 18

In the financial statements of subsequent periods, it is not required to repeatedly disclose any information about the changes of
accounting policies and corrections of prior period errors which have been disclosed in the notes of prior periods.



 
Ministry of Finance
2006-02-15

 






MEASURES FOR THE ANNUAL INSPECTION OF ENTERPRISES

State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce

No. 23

The Measures for the Annual Inspection of Enterprises, which were amended at the executive meeting of the State Administration for
Industry and Commerce of the People’s Republic of China, are hereby promulgated and shall enter into effect as of the day of March
1, 2006.

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

February 24, 2006

Measures for the Annual Inspection of Enterprises

Article 1

In order to strengthen the supervision and administration of enterprises and maintain the order of market economy, these Measures
are formulated in accordance with the Regulation on the Company Registration Administration, the Regulation on the Registration Administration
of Enterprise Legal Persons, and the Regulation on the Registration Administration of Partnership Enterprises.

Article 2

These Measures apply to the limited companies, joint-stock limited companies, non-corporate enterprise legal persons, partnership
enterprises, sole proprietorship enterprises and their branches, the enterprises from foreign countries (regions) that engage in
business operations in China as well as other business operational entities (hereinafter referred to as the enterprises) that have
obtained business licenses.

Article 3

The annual inspection of enterprises (hereinafter referred to as the annual inspection) refers to a supervision and management system
whereby the enterprise registration organs carry out regular inspections according to law on the relevant conditions of enterprise
registration depending on the annual inspection documents submitted by the enterprises once a year.

Article 4

An enterprise shall hand in the annual inspection documents to the enterprise registration organ from March 1 to June 30 every year.
In the case of any justifiable reason, an enterprise may hand in an application for postponing the participation in annual inspection
to the enterprise registration organ before June 30, and 30 days may be postponed upon approval of the enterprise registration organ.
An enterprise shall be responsible for the authenticity of the annual inspection documents it hands in.

An enterprise registered in the current year shall be subject to the annual inspection as of the next year.

Article 5

The enterprise registration organs at all levels shall take charge of the annual inspection of the enterprises registered thereby.

An enterprise registration organ at a higher level may entrust the enterprise registration organ at a lower level for the annual inspection
of the enterprises registered thereby.

An enterprise registration organ may entrust the administrative offices for industry and commerce at the locality of enterprises registered
thereby for the annual inspection of these enterprises.

Article 6

The procedures for annual inspection shall be as follows:

(1)

An enterprise hands in its documents for annual inspection;

(2)

The enterprise registration organ accepts and examines the annual inspection documents;

(3)

The enterprise pays the fee for annual inspection; and

(4)

The enterprise registration organ affixes a seal of annual inspection on the duplicate of the business license of the enterprise and
gives back the duplicate of the business license to the enterprise.

Article 7

An enterprise shall hand in the documents for the declaration for annual inspection as follows:

(1)

An annual inspection report;

(2)

The certification of the representative or the entrusted agent designated by the enterprise;

(3)

The duplicate of the business license;

(4)

The photocopies of the relevant licensing certificates or approval documents with the seal of the enterprise if there is any business
item pertinent to pre-registration administrative license in the business scope of the enterprise; and

(5)

Other documents are required to hand in prescribed by the State Administration for Industry and Commerce.

An enterprise legal person shall hand in its annual balance sheets and profit and loss statements, and a company or foreign- funded
enterprise shall hand in the audit report issued by an accountant firm.

If an enterprise has any non-legal-person branch, it shall also hand in a photocopy of the duplicate of the branch’s business license.

An enterprise under liquidation shall only hand in the documents mentioned in Paragraph 1.

Article 8

Besides the documents submitted by a non-legal-person branch of an enterprise, the enterprises from foreign countries (regions) that
engage in business operations in China and other business operational entities mentioned in Paragraph 1 of Article 7 of these Measures,
a non-legal-person branch of an enterprise shall also need to hand in the photocopy of the duplicate of the business license of its
parent enterprise that has passed the annual inspection in the previous year, and other business operational entities shall also
need to hand in a photocopy of the qualification certification of its parent institution.

Article 9

A annual inspection report shall include the contents as follows:

(1)

The conditions on the registered items;

(2)

The conditions on the items that are kept on records;

(3)

The conditions on foreign investments;

(4)

The conditions on the establishment and cancellation of branches; and

(5)

The conditions on business operations.

The annual inspection report handed in by a non-legal-person branch of an enterprise, an enterprise from a foreign country (region)
that engages in the business operations in China or other business operational entities shall only include the contents mentioned
in Item (1) of the preceding Paragraph.

Article 10

Where an enterprise hands in comprehensive documents for annual inspection with intact contents, the enterprise registration organ
shall accept them and issue a notice on acceptance, except it affixes a seal of passing the annual inspection on the spot in accordance
with Article 12 of these Measures.

Where the submitted annual inspection documents are not comprehensive or the contents are not intact, the enterprise registration
organ shall not accept them and shall issue a notice on refusal of acceptance that indicates the reasons for the refusal of acceptance.

Article 11

An enterprise registration organ shall, within 5 workdays as of the acceptance of the annual inspection documents, accomplish the
written examination of the contents of the registered items and the recorded items concerned in the annual inspection documents handed
in by an enterprise, unless it shall need to verify the essential contents of the annual inspection documents.

Where the essential contents of the annual inspection documents need to be verified, the enterprise registration organ shall send
two or more functionaries for the verification.

Article 12

Where the annual inspection documents accord with the provisions upon examination, the enterprise registration organ shall affix a
seal of passing the annual inspection on the duplicate of the business license and return the duplicate to the enterprise; otherwise,
the enterprise registration organ shall order the enterprise to make corrections within the time limit, and after the annual inspection
documents are found to accord with the provisions, the enterprise registration organ shall affix a seal of passing the annual inspection
on the duplicate of the business license and return the duplicate to the enterprise. Where the enterprise shall implement the alteration
registration in accordance with law and the items involved in the business license thus shall be altered, the enterprise registration
organ shall affix a seal of passing the annual inspection on the duplicate of the new business license after the alteration registration.

Article 13

An enterprise registration organ shall mainly examine such contents in the annual inspection documents handed in by a company as follows:

(1)

Whether the company has used its name in accordance with the provisions, or whether the company has gone through the formalities of
alteration registration in accordance with the provisions for renaming;

(2)

Whether the company has gone through the formalities of alteration registration in accordance with the provisions for changing its
domicile;

(3)

Whether the company has gone through the formalities of alteration registration in accordance with the provisions for changing its
legal person;

(4)

Whether the company makes a false report on its registered capital, whether its shareholders or promoters have made their contributions
in accordance with the provisions or have withdrawn their capital contributions;

(5)

Whether the relevant licensing certificates or approval documents have been cancelled, revoked or have expired if there is any business
item subject to pre-registration administrative license within the business scope of the company, and whether the business operations
of the company are within the scope of its registered business operations;

(6)

Whether the company has gone through the formalities of alteration registration in accordance with the provisions for the equity transfer
of its shareholders or promoters;

(7)

Whether the business term of the company has come to the due date;

(8)

Whether the company has gone through the formalities for archival filing in accordance with the provisions for the modification of
its articles of association or alteration of its directors, supervisors or managers;

(9)

Whether the company has gone through the formalities for archival filing in accordance with the provisions for the establishment of
a branch, whether any of its branches has been cancelled or been ordered to be closed or its business license has been revoked;

(10)

Whether the liquidation group has gone through the formalities for archival filing in accordance with the provisions after the company
has come into the procedures of liquidation; and

(11)

Whether one natural person has invested to set up two or more one-person limited companies.

Article 14

An enterprise registration organ shall mainly examine such contents in the annual inspection documents handed in by a non-corporate
enterprise legal person as follows:

(1)

Whether the enterprise has used its name in accordance with the provisions, or whether the enterprise has gone through the formalities
of alteration registration in accordance with the provisions for it’s renaming;

(2)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
its domicile or business place;

(3)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
its legal person;

(4)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
its economic nature;

(5)

Whether the relevant licensing certificates or approval documents have been cancelled, revoked or expired if there is any business
item subject to pre-registration administrative license in the business scope of the enterprise, and whether the business operations
of the enterprise are within the scope of its registered business operations;

(6)

Whether have the act of withdrawn or transferred the registered capital;

(7)

Whether the business term of the enterprise has come to the due date;

(8)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for the setting
up or cancellation of any branch;

(9)

Whether the enterprise has gone through the formalities for archival filing in accordance with the provisions for changing its department
in-charge; and

(10)

Whether the enterprise has modified its articles of association.

Article 15

An enterprise registration organ shall mainly examine such contents in the annual inspection documents handed in by a partnership
enterprise as follows:

(1)

Whether the enterprise has used its name in accordance with the provisions, or whether the enterprise has gone through the formalities
of alteration registration in accordance with the provisions for renaming;

(2)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
its business place;

(3)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
the partner in charge of partnership affairs;

(4)

Whether the relevant licensing certificates or approval documents have been cancelled, revoked or have expired if there is any business
item subject to pre-registration administrative license within the business scope of the enterprise, and whether the business operations
of the enterprise are within the scope of its registered business operations;

(5)

Whether the business operational mode of the enterprise is within the scope of its registered business operational modes;

(6)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
the name or domicile of any of its partners;

(7)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
the amount or mode of contribution of any of its partners; and

(8)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for the setting
up or cancellation of any of its branches.

Article 16

An enterprise registration organ shall mainly examine such contents in the annual inspection documents handed in by a sole-investor
enterprise as follows:

(1)

Whether the enterprise has used its name in accordance with the provisions, or whether the company has gone through the formalities
of alteration registration in accordance with the provisions for renaming;

(2)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
its domicile;

(3)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
the name or domicile of its contributor;

(4)

Whether the relevant licensing certificates or approval documents have been cancelled, revoked or expired if there is any business
item subject to pre-registration administrative license within the business scope of the enterprise, and whether the business operations
of the enterprise are within the scope of its registered business operations;

(5)

Whether the business operational mode of the enterprise is within the scope of the registered business operational modes; and

(6)

Whether the enterprise has gone through the formalities of alteration registration in accordance with the provisions for changing
the amount or mode of contributions of the contributor.

Article 17

An enterprise registration organ shall mainly examine such contents in the annual inspection documents handed in by a non-legal-person
branch of an enterprise, an enterprise from a foreign country (region) that engaged in business operations in China or any other
business operational entity as follows:

(1)

Whether the relevant enterprise has used its name in accordance with the provisions, or whether it has gone through the formalities
of alteration registration in accordance with the provisions for renaming;

(2)

Whether the relevant enterprise has gone through the formalities of alteration registration in accordance with the provisions for
changing its business (operation) place;

(3)

Whether the relevant enterprise has gone through the formalities of alteration registration in accordance with the provisions for
changing its person-in-charge;

(4)

Whether the relevant licensing certificates or approval documents have been cancelled, revoked or expired if there is any business
item subject to pre-registration administrative license within its business scope, and whether its business operations are within
the scope of its registered business operations; and

(5)

Whether any other business entity has gone through the formalities of alteration registration in accordance with the provisions for
changing its parent institution.

Article 18

An enterprise registration organ or administrative office for industry and commerce that is authorized to implement the annual inspection
shall report the annual inspection circumstance to the authorizing enterprise registration organ before July 31.

An enterprise registration organ shall, before July 31, report the annual inspection circumstance to the administrative office for
industry and commerce at the locality of enterprises, and the administrative office for industry and commerce shall bring the annual
inspection information into the economic registration information of the enterprises.

Article 19

If an enterprise fails to accept the annual inspection in accordance with the provisions, the enterprise registration organ shall
order it to accept the annual inspection within the time limit. If it is a company, it shall be imposed a fine from RMB 10, 000 Yuan
to RMB100, 000 Yuan. If it is a subsidiary, a non-corporate enterprise legal person or any of its branches or an enterprise from
a foreign country (region) that engages in business operations in China or any other business operational entity, it shall be imposed
a fine less than RMB 30,000 Yuan. And if it is a partnership enterprise, a sole-investor enterprise or any of its branches, it shall
be imposed a fine less than RMB 3,000 Yuan.

If an enterprise still fails to accept the annual inspection within the time limit after being ordered to do so, the enterprise registration
organ shall announce it. If it still fails to accept the annual inspection within 60 days as of announcement, its business license
shall be revoked in accordance with law.

Article 20

If an enterprise keeps from actual situation or resorts to deceits in the annual inspection, the enterprise registration organ shall
order it to make corrections within the time limit. If it is a company, it shall be imposed a fine from RMB10, 000 Yuan to RMB 50,000
Yuan. Where the circumstance is serious, its business license shall be revoked. If it is a subsidiary, a non-corporate enterprise
legal person or any of its branches or an enterprise from a foreign country (region) that engages in business operations in China
or any other business entity, it shall be imposed a fine less than RMB 30,000 Yuan. If it is a partnership enterprise, a sole-investor
enterprise or any of its branches, it shall be imposed a fine less than RMB 3,000 Yuan.

Article 21

Where an enterprise registration organ finds, in the course of annual inspection, that an enterprise commits any act in violation
of the provisions on enterprise registration administration, it may, except to order the enterprise to make corrections give punishment
on the enterprise in accordance with the provisions on enterprise registration administration.

Article 22

Where an enterprise registration organ or any of its functionaries refuses to implement the annual inspection for an enterprise which
accords with the provisions or implements the annual inspection for an enterprise which fails to accord with the provisions, or arbitrarily
charges fees by taking advantage of annual inspection, charges fees by making use of annual inspection, deducts other fees, asks
for or accepts property or money of others or seeks for other interests, the principal and other persons who are directly responsible
shall be subject to the corresponding liabilities n accordance with the laws and disciplines.

Article 23

The formats of the reports on annual inspection and the styles of the seals for annual inspection shall be uniformly regulated by
the State Administration for Industry and Commerce.

Article 24

These Measures shall be implemented as of March 1, 2006. The Measures for the Annual Inspection of Enterprises, which was promulgated
on December 13, 1996(Order of the State Administration for Industry and Commerce, No.61) and was amended on December 3, 1998 (Order
of the State Administration for Industry and Commerce, No.86), shall be abolished simultaneously.



 
State Administration for Industry and Commerce
2006-02-24

 






MEASURES FOR THE LICENSING FOR PRODUCTION AND OPERATION OF NON-PHARMACEUTICAL PRECURSOR CHEMICALS

the State Administration of Work Safety

Order of the State Administration of Work Safety of the People’s Republic of China

No. 5

The Measures for the Licensing for Production and Operation of Non-pharmaceutical Precursor Chemicals, which were deliberated and
adopted at the director general’s executive meeting of the State Administration of Work Safety on March 21, 2006, are hereby promulgated,
and shall come into force as of April 15, 2006.

Director General Li Yizhong

April 5, 2006

Measures for the Licensing for Production and Operation of Non-pharmaceutical Precursor Chemicals

Chapter I General Provisions

Article 1

For the purpose of strengthening the administration on non-pharmaceutical precursor chemicals, regulating the production and operation
of non-pharmaceutical precursor chemicals, preventing non-pharmaceutical precursor chemicals from being used to manufacture drugs
and maintaining economic and social order, the present Measures are formulated in accordance with the Regulation on the Administration
of Precursor Chemicals (hereinafter referred to as the Regulation) as well as other relevant laws and administrative regulations.

Article 2

The term “non-pharmaceutical precursor chemicals” as mentioned in the present Measures shall refer to the non-pharmaceutical major
materials and chemical auxiliary substances which are prescribed in the Attached Table of the Regulation and may be used to produce
drugs.

As for the classes and varieties of non-pharmaceutical precursor chemicals, please see the Attached Table of the present Measures,
the Catalogue of Classes and Varieties of Non-pharmaceutical Precursor Chemicals.

When the adjustment to the Attached Table of the Regulation, the Catalogue of Classes and Varieties of Precursor Chemicals or to the
Catalogue of Hazardous Chemicals involves the Attached Table of the present Measures, the Catalogue of Classes and Varieties of Non-pharmaceutical
Precursor Chemicals shall be adjusted accordingly and promulgated.

Article 3

The state adopts a license system for the production and operation of non-pharmaceutical precursor chemicals. The production and operation
of non-pharmaceutical precursor chemicals of Class I shall be subject to the license-based administration, while the production and
operation of precursor chemicals of Class II and Class III shall be subject to the archival certificate-based administration.

The administrative departments of work safety of the people’s government of all provinces, autonomous regions, or municipalities directly
under the Central Government shall take charge of the examination and approval of the production and operation of non-pharmaceutical
precursor chemicals of Class I within their respective jurisdictions and the issuance of the licenses thereof.

The administrative departments of work safety of the people’s government in cities divided into districts shall take charge of the
issuance of archival certificates for production and operation of non-pharmaceutical precursor chemicals of Class II or for production
of non-pharmaceutical precursor chemicals of Class III within their respective jurisdictions.

The administrative departments of work safety of the people’s government at the county level shall take charge of the issuance of
archival certificates for operation of non-pharmaceutical precursor chemicals of Class III within their respective jurisdictions.

Article 4

The State Administration of Work Safety shall supervise and guide the licensing for production and operation of non-pharmaceutical
precursor chemicals all over the country and the archival filing administration thereof.

The administrative departments of work safety of the people’s government at the county level or above shall take charge of implementing
the supervision and administration of the system of licensing for production and operation of non-pharmaceutical precursor chemicals
within their respective jurisdictions.

Chapter II Licensing for Production and Operation

Article 5

Whoever intends to produce or operate a non-pharmaceutical precursor chemical of Class I shall not engage in the production or business
activities until having obtained the license for production or operation of the non-pharmaceutical precursor chemicals.

Article 6

Whoever intends to produce or operate a non-pharmaceutical precursor chemical of Class I shall meet the conditions as prescribed in
Article 7 and Article 9 of the Regulation.

Article 7

Where a producer applies for a license for the production of a non-pharmaceutical precursor chemical, it shall submit the following
documents and materials to the administrative department of work safety of the local people’s government at the provincial level,
and shall be responsible for the authenticity thereof:

(1)

A letter of application for the license for production of the non-pharmaceutical precursor chemical (in duplicates);

(2)

Introduction materials of the production equipment, warehousing facilities and pollutant treatment facilities;

(3)

Precursor chemical management rules and plan on responding to environmental emergencies;

(4)

Work safety management rules;

(5)

Materials proving that its legal representative or principal person-in-charge, as well as its technicians and managers have corresponding
knowledge on work safety;

(6)

Materials proving that its legal representative or principal person-in-charge, as well as its technicians and managers have corresponding
knowledge on precursor chemicals and have no records on drug-involved crimes;

(7)

A counterpart of its industrial and commercial business license (photocopy); and

(8)

Directions of the product package and the directions to use chemicals.

Where a producer belongs to hazardous chemical-producing entities, it shall, in addition, submit its work safety license of hazardous
chemical production enterprise, and the hazardous chemical registration certificate (photocopies), without having to submit the documents
and materials as required by Items (4), (5) and (7) of the present article.

Article 8

When applying for a license for operation of a non-pharmaceutical precursor chemical, a business entity shall submit the following
documents and materials to the administrative department of work safety of the local people’s government at the provincial level,
and shall be responsible for the authenticity thereof:

(1)

A letter of application for the license for operation of the non-pharmaceutical precursor chemical (in duplicates);

(2)

Introduction materials of the production site and the warehousing facilities;

(3)

Precursor chemical management rules and the sales network documents containing the contents such as sales institutions, sales agencies
and users, etc.;

(4)

Materials proving that its legal representative or principal person-in-charge and its sales staff and managers have corresponding
knowledge on precursor chemicals and have no records on drug-involved crimes;

(5)

A counterpart of its industrial and commercial business license (the photocopy); and

(6)

Directions of the product package and the directions to use chemicals.

Where a producer belongs to hazardous chemical-producing enterprises, it shall, in addition, submit its license for operation of hazardous
chemicals (photocopy), without having to submit the documents and materials as required by Item (5) of the present article.

Article 9

The administrative departments of work safety of the people’s governments of all provinces, autonomous regions, or municipalities
directly under the Central Government shall handle the letters of application as well as the documents and materials submitted by
applicants respectively according to the following:

(1)

Where the issues in the application do not fall within its purview, it shall immediately issue a written document on refusing to accept
the application;

(2)

Where the application materials contain any error that may be corrected on the spot, it shall permit or require the applicant to correct
the aforesaid error on the spot;

(3)

Where the application materials are incomplete or fail to meet the requirements, it shall inform the applicant in written form once
for all of the contents to be supplemented either on the spot or within 5 working days. And it shall be deemed to have accepted the
application as of receipt of the application materials, if it fails to inform the applicant within the time limit; or

(4)

Where the application materials are complete, meet the requirements or are supplemented and corrected completely as required, it shall
be deemed to have accepted the application as of receipt of the application materials or as of full supplement and correction of
the materials.

Article 10

The administrative departments of work safety of the people’s governments of all provinces, autonomous regions, or municipalities
directly under the Central Government shall examine the accepted application materials, and may make on-site checks when necessary.

Article 11

As of the date of acceptance, the administrative departments of work safety of the people’s governments of all provinces, autonomous
regions, or municipalities directly under the Central Government shall make a decision on issuing or refusing to issue the license
within 60 working days in case of an application for the license for production of a non-pharmaceutical precursor chemical, or within
30 working days in case of an application for the license for operation of such a chemical.

Where an issuance is granted, it shall deliver the license to the applicant or notify the applicant to fetch the license within 10
working days as of making the decision; where an issuance is not granted, it shall notify the applicant in written form and explain
the reasons thereof within 10 working days.

Article 12

The valid term of a license for production or operation of a non-pharmaceutical precursor chemical shall be 3 years. Where the producer
or operator needs to continue producing or operating a non-pharmaceutical precursor chemical of Class I after the expiry of the valid
term of the license, it shall file an application for replacement of the license to the original administrative department that has
issued its license, and submit the corresponding materials within 3 months prior to the expiry of the valid term of the license,
and obtain a new license after examination to be qualified.

Article 13

Where a producer or operator of a non-pharmaceutical precursor chemical of Class I is under any of the following circumstances within
the valid term of its license for production or operation of the non-pharmaceutical precursor chemical, it shall apply for modification
of its license to the original administrative department that has issued its license:

(1)

Its legal representative or principal person-in-charge is changed;

(2)

Its name is changed;

(3)

The main flow of the licensed varieties is changed; or

(4)

Any variety needs to be added or the quantity needs to be increased.

As for the modification under Item (1) or (3) of the present article, the application shall be filed within 20 working days as of
the time of alteration; while for the modification under Item (2) of the present article, the application shall be filed after the
industrial and commercial business license is modified.

The producer or operator concerned shall provide the relevant materials which proves that the modified legal representative or principal
person-in-charge meets the requirements in Item (5) or (6) of Article 7 or Item (4) of Article 8 of the present Measures to apply
for the modification under Item (1) of the present article. The producer or operator concerned shall provide a counterpart of the
modified industrial and commercial business license (photocopy) to apply for the modification under Item (2) of the present article.
The producer or operator concerned shall separately provide the statement on the change of the main flow or the relevant information
required by Item (3) of Article 8 to apply for the modification under Item (3) of the present article. The producer or operator
concerned shall provide the relevant information required by Items (2), (3) and (8) of Article 7 or Items (2), (3) and (6) of Article
8 of the present Measures to apply for the modification under Item (4) of the present article.

Article 14

With respect to an accepted application for modification under Item (1), (2) or (3) of Article 13 of the present Measures, the administrative
department for the issuance of licenses may go through the procedures for modification of the license for production or operation
of the non-pharmaceutical precursor chemical concerned after checking the documents and materials submitted by the applicant.

With respect to an accepted application for modification under Item (4) of Article 13 of the present Measures, the administrative
department for issuance of licenses shall go through the procedures for modification of the license for production or operation of
the non-pharmaceutical precursor chemical in accordance with Article 10 and Article 11 of the present Measures.

Article 15

Where any of the original technicians, sales staff or managers of the producer or operator of a non-pharmaceutical precursor chemical
is changed, the newly appointed person shall have corresponding knowledge on work safety and precursor chemicals.

Article 16

Where the producer or operator of a non-pharmaceutical precursor chemical of Class I no longer produces or operates the non-pharmaceutical
precursor chemical, it shall go through the procedures for nullification of the license within 3 months after stopping the production
or operation.

Chapter III Archival Filing of Production and Operation

Article 17

Whoever produces or operates a non-pharmaceutical precursor chemical of Class II or Class III shall go through the archival filing
of production or operation of the non-pharmaceutical precursor chemical.

Article 18

Whoever produces a non-pharmaceutical precursor chemical of Class II or Class III shall report the varieties under production, the
quantity and etc. to the administrative department of work safety of the local people’s government at the districted city level for
archival filing within 30 working days as of the day of production.

Whoever operates a non-pharmaceutical precursor chemical of Class II shall report the varieties under operation, the quantity, the
main flow and etc. to the administrative department of work safety of the local people’s government at the districted city level
for archival filing within 30 working days as of starting operation.

Whoever operates a non-pharmaceutical precursor chemical of Class III shall report the varieties under operation, the quantity, the
main flow and etc. to the administrative department of work safety of the local people’s government at the county level for archival
filing within 30 working days as of starting operation.

Article 19

The producer of a non-pharmaceutical precursor chemical of Class II or Class III shall submit the following materials for archival
filing:

(1)

A letter of application for archival filing of the varieties, quantity, sales volume and etc. of the non-pharmaceutical precursor
chemical;

(2)

Precursor chemical management rules;

(3)

Directions of the product package and the directions to use chemicals; and

(4)

A counterpart of its industrial and commercial business license (photocopy).

Where a producer belongs to hazardous chemical-producing enterprises, it shall, in addition, submit its work safety license of hazardous
chemical production enterprise and its hazardous chemical registration certificate (photocopies), without having to submit the documents
and materials required by Item (4) of the present article.

Article 20

The operator of a non-pharmaceutical precursor chemical of Class II or Class III shall submit the following materials for archival
filing:

(1)

A letter of application for archival filing of the varieties for sale, sales volume, main flow and etc. of the non-pharmaceutical
precursor chemical;

(2)

Precursor chemical management rules;

(3)

Directions of the product package and the directions to use chemicals; and

(4)

A counterpart of its industrial and commercial business license (photocopy).

Where a producer belongs to hazardous chemical-producing enterprises, it shall, in addition, submit its license for operation of hazardous
chemicals, without having to submit the documents and materials required by Item (4) of the present article.

Article 21

The competent department for archival filing of production and operation of a non-pharmaceutical precursor chemical of Class II or
Class III shall issue the archival certificate on the same day of the receipt of the materials as prescribed in Article 19 or Article
20 of the present Measures for archival filing.

Article 22

The valid term of a certificate on archival filing of production and operation of a non-pharmaceutical precursor chemical of Class
II or Class III shall be three years. Where the producer or operator needs to continue the production or operation after the expiry
of the valid term, it shall go through the archival filing procedures once again within 3 months prior to the expiry of the valid
term of the archival certificate.

Article 23

Where the legal representative or principal person-in-charge, the name or the address of the producer or operator of a non-pharmaceutical
precursor chemical of Class II or Class III is changed, the producer or operator shall go through the archival filing procedures
once again within 30 working days as of modification of the industrial and commercial business license; while where any archived
variety for production or operation is added or the main flow is changed, the producer or operator shall go through the archival
filing procedures once again within 30 working days as of such change or addition.

Article 24

Where the producer or operator of a non-pharmaceutical precursor chemical of Class II or Class III no longer produces or operates
the non-pharmaceutical precursor chemical, it shall go through the procedures for nullification of the archival filing within 3 months
as of terminating the production or operation.

Chapter IV Supervision and Administration

Article 25

The administrative departments of work safety of the people’s government at the county level or above shall strengthen the supervision
and inspection over the production and operation of non-pharmaceutical precursor chemicals.

The administrative departments of work safety of a people’s government at the county level or above may check the scene, consult and
photocopy the relevant materials, record the relevant information, detain the relevant evidential materials and illegal articles
when supervising or inspecting the activities of producing or operating non-pharmaceutical precursor chemicals; and they may temporarily
seal up the relevant sites when necessary.

The entities or individuals under inspection shall truthfully provide the relevant information and articles, and shall not refuse
to provide or conceal them.

Article 26

A producer or operator shall report the information such as the varieties, quantity, main flow and etc. of the non-pharmaceutical
precursor chemical it produced or operated the last year to the administrative department of work safety that has granted the license
or handled the archival filing by March 31 of each year.

The administrative departments of work safety shall report the gathered information on the non-pharmaceutical precursor chemicals
produced and operated last year within their respective jurisdictions to the administrative departments of work safety at the higher
level within 10 working days as of receipt of a report.

Article 27

The administrative departments of work safety at each level shall set up archives on license and archival filing of non-pharmaceutical
precursor chemicals, and shall strengthen information management.

Article 28

An administrative department of work safety shall timely report the information on the licensing for production and operation of non-pharmaceutical
precursor chemicals as well as on the revocation of licenses and etc. to the public security organ or administrative department for
industry and commerce at the same level, and report the relevant information on issuance of licenses and archival certificates to
the administrative department of commerce.

Chapter V Penalty Provisions

Article 29

In case of any of the following acts, the administrative departments of work safety of the people’s government at the county level
or above may stop accepting the producer’s or operator’s application for licensing for production or operation of or for archival
filing of its non-pharmaceutical precursor chemical for 3 years as of the time when the department prescribed in Article 38 of the
Regulation makes the administrative penalty decision:

(1)

Unlawfully producing or operating non-pharmaceutical precursor chemicals without being licensed or archived;

(2)

Forging application materials to obtain the license for production or operation of or the certificate for archival filing of a non-pharmaceutical
precursor chemical by fraud;

(3)

Using others’ license for production or operation of or certificate for archival filing of a non-pharmaceutical precursor chemical;
or

(4)

Using a forged, altered or invalidated license for production or operation of or certificate for archival filing of a non-pharmaceutical
precursor chemical.

Article 30

In case of any of the following acts, the administrative departments of work safety of the people’s government at the county level
or above shall make a warning to the producer or operator, order it to make corrections within a time limit, and impose on it/him
a fine of 10,000 Yuan up to 50,000 Yuan; and the non-pharmaceutical precursor chemical which is produced or operated in violation
of provisions may be confiscated. Where the producer or operator fails to make corrections within the time limit, it shall be ordered
to stop production or operation within a time limit for rectification. Where it remains to be unqualified after the rectification
within the time limit, its corresponding license shall be revoked:

(1)

The producer or operator of a precursor chemical fails to accord with the provisions to establish precursor chemical management rules
or safety management rules;

(2)

It lends the license or archival certificate to others for use;

(3)

It produces or operates a non-pharmaceutical precursor chemical that exceeds the licensed varieties and quantity;

(4)

The directions of the package of the precursor chemicals and the directions to use such chemicals fail to meet the requirements as
prescribed in the Regulation; or

(5)

The producer or operator of a non-pharmaceutical precursor chemical fails to truthfully or timely report the information on annual
production or operation, etc. to the administrative department of work safety.

Article 31

Where an entity or individual who produces or operates a non-pharmaceutical precursor chemical refuses to accept the supervision and
inspection by the administrative departments of work safety, the administrative departments of work safety of the people’s government
at the county level or above shall order it to make corrections, and make a warning to the directly responsible person-in-charge
and other persons directly liable. Where the case is serious, the entity shall be imposed upon a fine of 10,000 Yuan up to 50,000
Yuan, while the directly responsible person-in-charge and the persons directly liable shall be imposed upon a fine of 1,000 Yuan
up to 5,000 Yuan.

Article 32

Where any of the working staff of an administrative department of work safety abuses his powers, neglects his duties, practices favoritism
for himself or his relatives or divulges an enterprise’s commercial secret during the administrative work, he shall be imposed upon
administrative sanctions according to law; where any crime is constituted, he shall be subject to criminal liabilities according
to law.

Chapter VI Supplementary Provisions

Article 33

The licenses for production or operation of non-pharmaceutical precursor chemicals and the certificates for archival filing thereof
shall be produced under the supervision of the State Administration of Work Safety.

The pattern and format of the annual report on non-pharmaceutical precursor chemicals and that of the letter of application for licensing,
archival filing or modification shall be prescribed by the State Administration of Work Safety.

Article 34

The present Measures shall come into force as of April 15, 2006. Attached Table:Catalogue of Classes and Varieties of Non-pharmaceutical Precursor Chemicals

Class I

1.

1-Phenyl-2-Propanone

2.

3, 4-Methylenedioxyphenyl-2-Propanone

3.

Piperonal

4.

Safrole

5.

Sassafras oil

6.

Isosafrole

7.

N-acetylanthranilic acid

8.

Anthranilic acid

Class II

1.

Penylacetic acid

2.

Acetic anhydride￿￿> 3.

Trichloromethane￿￿> 4.

Aether￿￿> 5.

Piperidine￿￿>

Class III

1.

Toluene￿￿> 2.

Acetone￿￿> 3.

Methyl ethyl ketone￿￿> 4.

Potassium permanganate￿￿> 5.

Sulfuric acid

6.

Hydrochloric acid￿￿>Notes:

1.

The salts that might contain the substances of Class I and Class II shall also be under control.

2.

The varieties marked with ‘￿￿are hazardous chemicals.



 
the State Administration of Work Safety
2006-04-05

 






OFFICIAL REPLY OF MINISTRY OF COMMERCE ON RELATED ISSUES OF TRANSACTING CONFIRMATION LETTER OF EXEMPTION OF FOREIGN-FUNDED ENTERPRISES OF ENCOURAGED CATEGORIES

Ministry of Commerce

Official Reply of Ministry of Commerce on Related Issues of Transacting Confirmation Letter of Exemption of Foreign-funded Enterprises
of Encouraged Categories

Ministry of Commerce

April 6, 2006

Departments of commercial administration of all provinces, autonomous regions, municipalities, separately listed cities in plan and
Xinjiang Production and Construction Corps:

1.

Since no adjustment has been made to regulations of “confirmation letter” and “import certification” and the formality procedures,
all departments should continue to implement the current regulations strictly.

2.

In accordance with above formality procedures and specific operating measures, functions, authorities and related requirements of
commercial departments of transacting “confirmation letter” and “import certification” remain unchanged. Please all commercial departments
continue to well accomplish tasks strictly in line with related regulations.

3.

All departments of commercial administration should strictly follow related regulations, go thorough formalities of exemption for
imported facilities of qualified foreign-funded enterprises and enhance overseas cooperation, reporting situations of transaction
to Ministry of Commerce for registration timely.

Ministry of Commerce will strengthen supervision and instruction on formalities of “confirmation letter” and “import certification”
below limitation, those unregistered or falling short of related regulations will be corrected or canceled. For cases of gross violation,
Ministry of Commerce will suspend releasing qualification of “confirmation letter” and “import certification”, and inform related
customs of suspending formalities of export exemption together with General Administration of Customs.

If encountering any problem, please report to Ministry of Commerce (Department of Foreign Investment Administration).

Ministry of Commerce

Apr 6, 2006



 
Ministry of Commerce
2006-04-06

 






STEVEDORING LEVY (COLLECTION) AMENDMENT REGULATIONS 2007 (NO. 1) (SLI NO 16 OF 2007) – REG 2

Commencement

These Regulations commence on the day after they are registered.

12Page 2 of 2

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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