Ministry of Commerce, the General Administration of Customs￿￿the State Environmental Protection Administration

Announcement No.105, 2005 of the Ministry of Commerce, the General Administration of Customs￿￿the State Environmental Protection Administration
of the People’s Republic of China, Releasing the Catalogue Prohibited for Processing Trade

[2005] No. 105

In accordance with demands of developing national economy as well as requirements on macro-control, a part of commodities are listed
in Catalogue Prohibited for Processing Trade (please refer to appendix Catalogue 1 for details) based on related laws, rules and
regulations on processing trade administration. This regulation will take effects as from Jan 1, 2006. Processing trade businesses
that have been approved by administrative commercial departments and registered at Customs are allowed being finished during effective
period in accordance with the current regulations, however, no prolonging will be permitted for re-export that cannot be finished,
which will be treated in line with domestic trade of processing trade.

In accordance with Announcement No.55, 2004 of Ministry of Commerce, General Administration of Customs and State Environmental Protection
Administration, Announcement No.26, 2005 of Ministry of Commerce and General Administration of Customs, executive status of Announcement
No.50, 2005 of Ministry of Commerce and General Administration of Customs, and adjustment of tax item codes of 2006, parts of content
of the above 3 announcements are revised and adjusted (please refer to appendix Catalogue 2 for details). This regulation takes effect
as form release of this announcement.

This announcement also applies to special supervising districts of Customs such as export processing zone and bonded areas.

Announcement No.55, 2004 of Ministry of Commerce, General Administration of Customs and State Environmental Protection Administration,
Announcement No.26, 2005 of Ministry of Commerce and General Administration of Customs, and Catalogue Prohibited for Processing Trade
of Announcement No.50, 2005 of Ministry of Commerce and General Administration of Customs are terminated at the same time.

Appendix: Commodity List of Catalogue Prohibited for Processing Trade (omitted)

Ministry of Commerce

General Administration of Customs

State Environmental Protection Administration

Dec 11, 2005