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MEASURES ON GOVERNING INSURANCE PROTECTION FUND

China Insurance Regulatory Commission

Decree of the China Insurance Regulatory Commission

No. 16

The Measures for the Administration of Insurance Protection Fund, which were deliberated and adopted at the chairmen’s executive meeting
of the China Insurance Regulatory Commission on December 29, 2004, are hereby promulgated and shall come into force as of January
1, 2005.

Chairman Wu Dingfu

December 30, 2004

Measures on Governing Insurance Protection Fund

Chapter I General Provisions

Article 1

With a view of regulating the payment, administration and use of insurance protection fund, guaranteeing the interests of policyholders,
effectively dissolving financial risks and maintaining the financial stabilization, the present Measures are formulated in accordance
with Article 97 and other provisions of the Insurance Law of the People’s Republic China (hereinafter referred to as the Insurance
Law).

Article 2

For the purpose of the present Measures, the “insurance companies” shall refer to the commercial insurance companies established upon
approval of the insurance regulatory institution and registered according to law, including Chinese-funded insurance companies, Chinese-foreign
joint venture insurance companies, solely foreign-funded insurance companies and branches of foreign insurance companies.

For the purpose of the present Measures, the “insurance protection fund” refers to the statutory fund paid by insurance companies
in accordance with the Insurance Law and to be paid for providing relief to the policyholders or companies with ceded policies according
to the principles of centralized management and planned use as a whole when an insurance company is revoked, goes bankruptcy or is
under any of circumstances as recognized by the China Insurance Regulatory Commission (hereinafter referred to as the CIRC) in accordance
with Article 20 of the present Measures.

For the purpose of the present Measures, the “policyholders” shall refer to the parties of insurance contracts who have the power
to claim for policy-related benefits when an insurance company is revoked or goes bankruptcy, including the applicants for insurance,
the insured or the beneficiaries.

For the purpose of the present Measures, the “company with ceded policies”shall refer to a life insurance company that accepts the
legally transferred life insurance contracts from an insurance company that is revoked or goes bankruptcy.

Article 3

The insurance protection fund shall be fallen into the protection fund of property insurance companies and the protection fund of
life insurance companies.

The protection fund of property insurance companies shall be formed by the payments from property insurance companies, comprehensive
reinsurance companies and property reinsurance companies.

The protection fund of life insurance companies shall be founded by the payments from life insurance companies, health insurance companies
and life reinsurance companies.

Article 4

The administration and use of the insurance protection fund shall adhere to the principles of openness, reasonableness and effectiveness.

Article 5

The insurance protection fund shall be subject to the CIRC’s centralized management and planned use as a whole.

Chapter II Payment

Article 6

In the case of insurance business under the scope of relief from the insurance protection fund, an insurance company shall pay the
insurance protection fund according to the following proportions:

(1)

1% of self-retaining premiums for the property insurance, accidental injury insurance and short-term health insurance;

(2)

0.15% of self-retaining premiums for long-term life insurance with a guaranteed interest rate and long-term health insurance;

(3)

0.05% of self-retaining premiums for long-term life insurance without a guaranteed interest rate; and

(4)

The payment proportion for other insurance business of insurance companies shall be separately prescribed by the CIRC.

Article 7

The CIRC shall open a special account for the insurance protection fund, which shall be assessed on the basis of different accounts
of insurance companies.

Article 8

An insurance company shall in time and sufficiently pay the insurance protection fund into the special account for the insurance protection
fund, however if the insurer is under any of the following circumstances, its payment of the insurance protection fund can be paused:

(1)

in case the insurance protection fund surplus of a property insurance company, comprehensive reinsurance company or property reinsurance
company amounts to 6% of its total assets; or

(2)

in case the insurance protection fund surplus of a life insurance company, health insurance company or life reinsurance company amounts
to 1% of its total assets.

Where the insurance protection fund surplus of an insurer reduces or its total assets increase and thus the proportion of the insurance
protection fund to the total assets cannot satisfy the requirements as provided for by the preceding Paragraph, its payment of the
insurance protection fund shall be automatically resumed.

The insurance protection fund surplus of an insurance company equals to the accumulatively paid insurance protection fund plus the
apportioned investment incomes minus the various expenses.

Article 9

In case an insurance company is revoked or declared bankrupt and its insurance protection fund surplus is not enough for the relief
that should be granted to policyholders or the company with ceded policies, the insufficient amount shall be the market share calculated
upon the self-retaining premiums of other companies in the previous year, minus the insurance protection fund surplus.

Article 10

The insurance protection fund paid by an insurer shall be calculated on a yearly basis and be prepaid on a quarterly basis.

The insurance protection fund shall be prepaid by an insurer within 15 working days after the following quarter, and shall settle
it within four months after the end of each year.

Article 11

The CIRC may adjust the payment proportion, the upper limit of scale and the payment methods of the insurance protection fund on the
basis of the actual situations of insurance industry development and the risk.

Chapter III Administration and Supervision

Article 12

The principles of safety, profitability and fluidity shall be adhered to in using the insurance protection fund, and the guarantee
of asset safety is the precondition of the maintenance and increment of asset values.

The use of insurance protection fund shall be confined to the bank deposits, dealings of government bonds and other forms as prescribed
by the CIRC for using the fund. No insurance protection fund may be used for the investments in equities, real estate or other industries.

The CIRC may authorize a professional investment management institution for the use of insurance protection fund.

Article 13

The insurance protection fund council shall undertake the responsibility for supervising the administration and use of insurance protection
fund.

Article 14

The insurance protection fund council consists of such institutions as the insurance companies, the Legislative Affairs Office of
the State Council, the Ministry of Finance, the People’s Bank of China and State Administration of Taxation.

The measures for the work of the insurance protection fund council shall be separately prescribed by the CIRC.

Article 15

The CIRC shall, within five months after the end of each fiscal year, complete the audited financial report about the insurance protection
fund, and make it public to the council, member entities and all insurance companies.

Chapter IV Use

Article 16

In case an insurance company is revoked or declared bankrupt, and its liquidation properties are insufficient for paying the policy-related
benefits, the insurance protection fund shall offer relief to the policyholders of non-life insurance contracts in accordance with
the following principles:

(1)

Policyholders’ losses that are no more than 50,000 yuan will be fully covered by the insurance protection fund;

(2)

For individual policyholders, in the case of the losses in excess of 50,000 yuan, the insurance protection fund will cover 90 percent
of the extra part; for corporate policyholders, in the case of the losses in excess of 50,000 yuan, the insurance protection fund
will cover 80 percent of the extra part.

The policyholders’ losses as mentioned in the preceding Paragraph refer to the balance between the policyholders’ policy-related benefits
and the compensations recovered from the liquidation properties.

Article 17

In case a life insurance company is revoked or declared bankrupt, its life insurance contracts shall be transferred to another life
insurance company. If it cannot reach an assignment agreement with other life insurance company, the CIRC will designate a life insurance
company to take over the said life insurance contracts.

Article 18

In case the liquidation assets of an insurance company that is revoked or declared bankrupt are insufficient to reimburse the policy-related
benefits under life insurance contracts, the insurance protection fund shall offer relief to the companies with ceded policies in
accordance with the following principles:

(1)

For individual policyholders, relief from the policy-related benefits after the transfer shall not exceed 90 percent of policy-related
benefits prior to the transfer; and

(2)

For corporate policyholders, relief from the policy-related benefits after the transfer shall be no more than 80 percent of policy-related
benefits prior to the transfer.

A company with ceded policies shall evaluate policyholders’ policy-related benefits after the transfer in light of the standards as
prescribed in the preceding Paragraph, and hereby revise life insurance contracts with the policyholders.

Article 19

In case an insurance company is revoked or declared bankrupt, the policyholders shall sign agreements for transferring debts and credits
prior to the end of liquidation, the insurance protection fund shall offer relief to the policyholders and policyholders shall transfer
debts and credits of the insurance company to the insurance protection fund.

After the liquidation, if the compensations obtained by the insurance protection fund exceed the paid relief, the insurance protection
fund shall return the balance to policyholders.

Article 20

In the event of a significant crisis facing the insurance industry that may seriously endanger social public interests and financial
stabilization, the CIRC can draw on the insurance protection fund.

Article 21

The insurance protection fund will not cover losses from any of the following businesses of an insurance company:

(1)

insurance businesses that are directly undertaken overseas by an insurance company and inward transactions from abroad;

(2)

policy insurance businesses of an insurance company; and

(3)

any other insurance business as identified by the CIRC that is not under the scope of relief from the insurance protection fund.

Chapter V Legal Liabilities

Article 22

Any insurance company in violation of this Measures shall be ordered to correct and be imposed upon a fine of 50,000 yuan up to 300,000
yuan; in case the circumstances are serious, its scope of businesses may be restricted and it may be ordered to stop undertaking
new businesses or its business permit for insurance businesses shall be withdrawn.

The senior management personnel and persons directly responsible for the illegal acts shall be given warnings or ordered to be dismissed
or replaced and be imposed upon a fine of 20,000 yuan up to 100,000 yuan in light of the different circumstances.

Chapter VI Supplementary Articles

Article 23

The insurance companies shall, within three months as of the implementation day of this Measures, pay 50% of the submitted insurance
protection fund into a special account for the insurance protection fund as opened by the CIRC, and the remaining part shall be paid
off within one year as of the implementation day of this Measures.

Article 24

The power to interpret this Measures shall be vested in the CIRC.

Article 25

The present Measures shall be implemented as of January 1, 2005.



 
China Insurance Regulatory Commission
2004-12-30

 







PROVISIONS OF THE CUSTOMS OF THE PRC ON IMPLEMENTATION OF THE RULES OF ORIGIN OF GOODS UNDER THE SPECIAL PREFERENTIAL TARIFF TREATMENTS GIVEN BY THE PEOPLE’S REPUBLIC OF CHINA TO THE LEAST-DEVELOPED AFRICAN COUNTRIES






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

No. 123

The Provisions of the Customs of the People’s Republic of China on the Implementation of “the Rules of Origin of Goods under the Special
Preferential Tariff Treatments Given by the People’s Republic of China to the Least-developed African Countries” were deliberated
and adopted at the executive meeting of the General Administration of Customs on December 29, 2004. They are hereby promulgated and
shall be implemented as of January 1, 2005.
Director, Mu Xinsheng

December 30, 2004

Provisions of the Customs of the PRC on Implementation of “the Rules of Origin of Goods under the Special Preferential Tariff Treatments
Given by the People’s Republic of China to the Least-developed African Countries”

Article 1

The present Provisions are formulated in accordance with the Customs Law of the People’s Republic of China and the Rules of Origin
of Goods under the Special Preferential Tariff Treatments Given by the People’s Republic of China to the Least-developed African
Countries for the purposes of promoting the economic trade between China and the least-developed African countries (hereinafter referred
to as the “beneficiary countries”, see the name list in Annex 1) and correctly determining the origin of goods, which are exported
to China by the beneficiary countries under the special preferential tariffs treatment.

Article 2

The present Provisions shall apply to the goods, which are imported from the beneficiary countries under the item of enjoying special
preferential tariff treatments (for the list of those products, please refer to the Import and Export Tariff Regulations of the People’s
Republic of China), but the goods for processing trade shall be excluded.

Article 3

If the goods directly imported from a beneficiary country and included in the list of goods under special preferential tariff treatments,
their place of origin shall be determined according to the following principles:

(1)

As to the products entirely obtained from a beneficiary country, their place of origin shall be the country from which the goods are
obtained; and

(2)

As to the products incompletely obtained from a beneficiary country, their place of origin shall be the country where the final substantial
processing is completed.

Article 4

The phrase “products entirely obtained from a beneficiary country” as mentioned in Item (1) of Article 3 of the present Provisions,
namely the entire obtainment criterion, refers to the following products:

(1)

The mineral products exploited or extracted from this country;

(2)

The plants or their products harvested or collected from this country;

(3)

The animals borne and raised in this country;

(4)

The products obtained from the animals of this country as mentioned in Item (3) of this Article;

(5)

The products obtained from hunting or fishing in this country;

(6)

The fish and other marine products obtained from the high seas by vessels registered in this country or hanging the flag of this country,

(7)

The products obtained from processing the articles as listed in Item (6) of this Article on the processing vessels registered in this
country or hanging the flag of this country;

(8)

The waste and old articles that are gathered in the course of consumption in this country and that can only be suited to recycling
of raw materials;

(9)

The waste and piecemeal materials that are generated in the course of production in this country and that can only be suited to recycling
of raw materials ; and

(10)

The products obtained from processing the articles as listed in Items (1) to (9) of this Article within this country.

Article 5

If any of the following types of processing or treatment is used for any of the following purposes, no matter it is completed independently
or together with the others, it shall be deemed as minor processing or treatment and shall not be taken into account in the determination
about whether the products are entirely obtained or not from a country:

(1)

The processing or treating conducted for preserving or transporting the goods;

(2)

The processing or treating conducted for facilitating the loading and unloading of the goods; or

(3)

The packing, exhibiting and other types of processing or treating conducted for selling the goods.

Article 6

The criterions on the determination of “substantial processing” as mentioned in Item (2) of Article 3 of the present Provisions
shall be the criterion of the change of tariff code or the criterion of ad valorem percentage.

(1)

The “criterion of the change of tariff code” refers to the change of the classification of the 4-digit tariff items in the Commodity
Names and Code Coordination System for the goods obtained from a beneficiary country after they are manufactured or processed with
the materials not originated in this country, and the aforesaid goods will not undergo any more production, processing or manufacturing
in any other country or region that will cause any change of the classification of the 4-digit tariff items, such goods shall be
deemed to have undergone substantial processing.

(2)

The criterion of ad valorem percentage refers to the total value of the materials, parts or products not originated in a beneficiary
country is less than 60% of the FOB price of the products manufactured or obtained by this beneficiary country, and the final production
procedure is completed within this beneficiary country, the aforesaid products shall be deemed to have undergone substantial processing.
The count formula shall be:

￿￿The Value of Materials Not Originated from a Beneficiary Country + The Value of Materials of Unidentified Origin

——————————————————————————————————————————————————￿￿100% lt 60%

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Price of FOB

(a)

The value of the materials not originated from a beneficiary country refers to the import CIF price.

(b)

The value of materials of unidentified origin refers to the price paid for the materials of unidentified origin in the manufacturing
or processing beneficiary country, which is determined at the earliest.

The above-mentioned criterion’s calculation of the ” ad valorem percentage” shall be comply with the universally acknowledged accounting
rules as well as the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.

Article 7

The simple dilution, mix, packing, bottling, drying, assembly, classification or decoration shall not be deemed as substantial processing.
If the purpose of enterprise production or pricing measures is for avoiding the present Provisions, it shall not be deemed as substantial
processing.

Article 8

In the determination of the origin of goods, one shall not take into account the origin of the energy, workshops, equipment, machines
and tools employed during the production course of goods, nor shall one take into account the origin of the materials that are employed
during the production course but do not constitute any component or constituent part of the goods.

Article 9

In the determination of origin of goods, the following items shall be neglected:

(1)

The packages, packing materials and containers that are declared and uniformly classified into the same category of the goods under
the Import and Export Tariff Regulation of the People’s Republic of China.

(2)

The accessories, spare parts, tools and introductory materials accompanying that are declared and uniformly classified into the same
category of the goods under the Import and Export Tariff Regulation of the People’s Republic of China.

Article 10

The goods under the special preferential tariff treatments shall be complied with the rules on direct transportation. The direct
transportation means that:

(1)

the goods are directly transported from a beneficiary country to a customs port of China;

(2)

the goods transit a third country (region) but

(a)

merely for the geographical reason or for the need of transportation;

(b)

don’t enter a third country (region) for trade or consumption;

(c)

except for loading, unloading and other necessary work to keep the goods in good condition, the goods haven’t undergone any other
type of processing in a third country (region);

(3)

As to the imports that are transported by transiting a third country (region), the following documents shall be offered to the customs
of the declaration place:

(a)

The joint transportation bills of lading issued by the export country;

(b)

The certificate of origin issued by the issuance institution of the export country;

(c)

The invoice of goods of the original producer; and

(d)

The certification documents meeting the 3 conditions as listed in Item (2) of this Article.

Article 11

When declaring the goods under special preferential tariff treatments, the importer shall submit the certificate of origin (see the
format in Annex 3) issued by the government institution designated by the export country (see Annex 2).

Article 12

A certificate of origin issued by an issuance institution of a beneficiary country shall be valid for a period of 180 days as of
the date of issuance. The certificate of origin shall be printed on A4 paper, the words on the face shall be in English. A certificate
of origin shall consist of 1 original and 3 duplicates and the following colors: the original color shall be apricot cream and the
duplicates color shall be light green.

Article 13

When goods are imported, the consignee of imports shall offer the original certificate of origin and the second duplicate to the
entry customs. The second duplicate shall be prepared for the verification where the Customs of the People’s Republic of China considers
necessary. The third duplicate shall be kept by the issuance institution of the export country. The fourth duplicate shall be kept
by the exporter.

Article 14

When the goods under the special preferential treatments are exported, the customs of the export country shall sign and affix its
seal on the certificate of origin after it ascertains that the documents conform to the goods. When declaring the import goods, the
consignee of import goods shall, on its own initiative, declare to the customs that the relevant goods are under the special preferential
tariff and shall submit the certificate of origin bearing the seal of the customs of the export country. The entry customs shall
permit the imports goods to enjoy the special preferential tariff upon strength of the valid certificate of origin.

Article 15

When having any doubt about the authenticity of the certificate of origin, the General Administration of Customs of the People’s
Republic of China or its authorized institution may, via the economic and commercial counselor’s office of the embassy or consulate
of China based in the corresponding beneficiary country, require the customs of the beneficiary country or the original issuance
institution of the certificate of origin to conduct verification, and to give it a reply within 90 days from the day when it receives
the verification request. If the customs of the beneficiary country or the original issuance institution of the certificate of origin
fails to offer a reply within 90 days, the goods shall not enjoy the special preferential tariff treatments. Where necessary, the
customs of China may assign some workers to conduct on-site inspection upon consent of the counterpart country.

During the period of waiting for the result of verification of the certificate of origin of the beneficiary country, the entry customs
may, at the request of the consignee of imports, release the goods after it charges a sum of security equivalent to the amount of
tariff calculated under the most favored nation tariff rate applicable to the goods, and it shall handle the import procedures in
accordance with the relevant provisions and complete the corresponding statistical work of the customs. After the customs of the
export country or the issuance institution of the certificate of origin completes the verification, the entry customs shall, in accordance
with the verification result, promptly handle the formalities for refunding the security or converting the security to the import
customs tariff, and make correct the relevant statistic data.

Article 16

Definitions of the following terms as mentioned in the present Provisions:

The “materials” shall include components, spare parts, constituent parts, semi-assembly and / or products that have actually constituted
part of another product or has been used in the production course of another product.

The “production” refers to the ways of obtaining products, including planting, exploiting, harvesting, raising, breeding, extracting,
collecting, gathering, capturing, fishing, entrapping, hunting, manufacturing, producing, processing or assembling of the products.

The “customs ports of China” refer to the ports within the area coverage to which the Customs Law of the People’s Republic of China
applies.

Article 17

Anyone who violates the present Provisions shall be punished according to the Customs Law of the People’s Republic of China, Regulation
on the Implementation of the Administrative Punishments of the Customs of People’s Republic of China and other relevant laws and
administrative regulations. If any crime is constituted, he shall be subject to the criminal liabilities according to law.

Article 18

The power to interpret the present Provisions shall remain with the General Administration of Customs of the People’s Republic of
China.

Article 19

The present Provisions shall be implemented as of January 1, 2005.

Annexes:

1. Name List of the African Beneficiary Countries

2. Institutions Issuing Certificates of Origin of the “Beneficiary Countries”

3. Format of Origin of Certificates (Omitted)

Annex 1.
Name List of the African Beneficiary Countries

The “beneficiary countries” refer to the African least-developed countries that have completed the procedures for exchanging the documents
on the special preferential tariff treatments with China, which include: Benin, Burundi, Cape Verde, Central African, Comoros, Democratic
Republic of Congo, Djibouti, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Mali, Mauritania, Mozambique,
Niger, Rwanda, Sierra Leone, Sudan, Tanzania, Togo, Uganda and Zambia.

Annex 2.
Institutions Issuing Certificates of Origin of the “Beneficiary Countries”




Annex 2

￿￿

Serial Number

Country

Issuance
Institution(s)

1

Benin

Pending

2

Burundi

Ministry of Commerce and Industry,
Ministry of Finance

3

Cape Verde

Customs

4

Central African

Ministry of Planning, Economy and
International Cooperation

5

Comoros

Pending

6

Democratic

Republic of Congo Pending

7

Djibouti

Deputy Director￿￿s Office of the
Indirect Taxation Bureau of the Ministry of Economy, Finance, Planning and
Privatization

8

Eritrea

Foreign Trade Department of the
Ministry of Trade and Industry

9

Ethiopia

Customs

10

Guinea

Ministry of Medium and Small
Enterprises, Center for Handling Export Procedures

11

Guinea-Bissau

Pending

12

Lesotho Lesotho

Revenue Authority

13

Liberia

Ministry of Commerce and Industry

14

Madagascar

Ministry of Industry and Trade

15

Mali

Pending

16

Mauritania

Pending

17

Mozambique

Customs

18

Niger

Chamber of Commerce

19

Rwanda Rwanda

Revenue Authority

20

Sierra Leone

National Revenue Authority
(including the customs subordinate to it), Chamber of Commerce

21

Sudan

Chamber of Commerce, Ministry of
Foreign Trade

22

Tanzania Tanzania

Revenue Authority (the customs
subordinate to it), Chamber of Commerce

23

Togo

Ministry of Industry, Commerce,
Transportation and Bonded Areas

24

Uganda

Trade Promotion Commission

25

Zambia Zambia

Revenue Authority (the customs
subordinate to it)




REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING THE EXPIRY DATE FOR SPECIAL POLICY TAX REFUND

the State Administration of Taxation

Reply of the State Administration of Taxation on the Issue concerning the Expiry Date for Special Policy Tax Refund

Guo Shui Han [2004] No. 1430

December 30, 2004

Shenzhen Municipal office of the State Administration of Taxation,

Your Request for Specifying the Expiry Date for Special Policy Tax Refund for the Year 2003 (No.182 [2004] of Shenzhen Municipal office
of the State Administration of Taxation) has been received. After deliberation, we hereby make the following reply concerning the
expiry date for tax refund on homemade equipments purchased by foreign-funded enterprises and water, electricity and gas consumed
by enterprises in the export processing zones:

I.

In accordance with the relevant provisions in the Supplementary Notice of the State Administration of Taxation on Doing well the Liquidation
Work for Tax Refund or Exemption on Export Goods for the Year 2003 (Letter No.132 [2004] of the State Administration of Taxation),
for homemade equipments purchased by foreign-funded enterprises and water, electricity and gas consumed by enterprises in the export
processing zones, all taxes refundable (exemptible) and taxes that are not yet refunded (exempted) of those value-added tax invoices
as issued prior to December 31, 2004 by the sellers shall be dealt with as accumulatively refundable (exemptible) taxes prior to
the end of 2003.

II.

The tax authorities shall, in accordance with relevant provisions, handle the tax refund of the year 2003 on homemade equipments purchased
by foreign-funded enterprises and water, electricity and gas in export processing zones as declared by export enterprises prior to
March 31, 2004.

III.

In case an export enterprise fails to declare the tax refund of the year 2003 on homemade equipments purchased by foreign-funded enterprises
and water, electricity and gas consumed by enterprises in export processing zones prior to March 31, 2004, the tax authorities shall
not handle tax refund declaration formalities in accordance with relevant provisions in the Notice of the State Administration of
Taxation on Doing well the Liquidation Work for Tax Refund or Exemption on Export Goods for the Year 2003 (Letter No. 1303 [2003]
of the State Administration of Taxation).

 
the State Administration of Taxation
2004-12-30

 




LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ENVIRONMENTAL POLLUTION BY SOLID WASTES

Standing Committee of the National People’s Congress of the People’s Republic of China

Order of the President of the People’s Republic of China

No. 31

The Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes was amended and
adopted at the 13th session of the Standing Committee of the Tenth National People’s Congress of the People’s Republic of China on
December 29, 2004, and the amended Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution
by Solid Wastes is hereby promulgated and shall come into force as of April 1, 2005.

President of the People’s Republic of China: Hu Jintao

December 29, 2004

Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of preventing and controlling environmental pollution by solid wastes, safeguarding human health,
maintaining the ecological safety and promoting the sustainable development of economy and society.

Article 2

This Law shall be applicable to the prevention and control of environmental pollution by solid wastes within the territory of the
People’s Republic of China.

This Law shall not be applicable to the prevention and control of marine environmental pollution by solid wastes or of environmental
pollution by radioactive solid wastes.

Article 3

The State shall, in preventing and controlling environmental pollution by solid wastes, implement the principles of reducing the discharge
amount and harmfulness of solid wastes, fully and rationally utilizing solid wastes and making them through non-hazard treatment
so as to promote cleaner production and the development of recycling economy.

The State shall adopt economic and technical policies and measures in favor of the comprehensive use of solid wastes, and carry out
the fully recovery and rationally utilize to the solid wastes.

The State shall encourage and support to adopt the beneficial measures in favor of the environmental protection by centralized treatment
of solid wastes and promote the industrial development of prevention and control of environmental pollution by solid wastes.

Article 4

The people’s governments at or above the county level shall incorporate the prevention and control of environmental pollution by solid
wastes into national economy and the social development plan and adopt economic and technical policies and measures to facilitate
the prevention and control of environmental pollution by solid wastes.

When relevant departments of the State Council, the people’s governments at or above the county level and the relevant departments
thereof formulate plans regarding urban-rural construction, land use, regional development and industrial development, they shall
plan as a whole to take such factors into account to reduce the discharge amount and harmfulness of solid wastes and to promote
comprehensive use and non-harm treatment of solid wastes.

Article 5

For the prevention and control of environmental pollution by solid wastes, the State implements the principle that any entity or individual
causing the pollution shall be responsible for it in accordance with law.

The manufacturers, sellers, importers and users shall be responsible for the pollution prevention and control to solid wastes produced
by them .

Article 6

The State shall encourage and support scientific research on prevention and control of environmental pollution by solid wastes, technological
development and the promotion of advanced prevention and control technologies as well as dissemination of scientific knowledge in
the field of prevention and control of environmental pollution by solid wastes.

The people’s governments at all levels shall strength the publicity and education on the prevention and control of environmental pollution
by solid wastes and advocate favorable production methods and living styles in favor of the environmental protection.

Article 7

The State shall encourage the entities and individuals to purchase and use reproduced products and reusable products.

Article 8

The people’s governments at all levels shall give awards to the entities and individuals that have achieved outstanding successes
in the prevention and control of environmental pollution by solid wastes and in relevant activities of comprehensive use.

Article 9

All entities and individuals shall have the obligation to protect the environment and shall have the right to report or file charges
against those entities or individuals that cause environmental pollution by solid wastes.

Article 10

The administrative competent department of environmental protection of the State Council shall conduct unified supervision and management
of the prevention and control of environmental pollution by solid wastes throughout the country. The relevant departments of the
State Council shall be responsible for supervising and managing the prevention and control of environmental pollution by solid wastes
within their respective functions.

The administrative competent departments of environmental protection of the local people’s governments at or above the county level
shall conduct unified supervision and management to the prevention and control work on environmental pollution by solid wastes
within their own administrative areas. The relevant departments of local people’s governments at or above the county level shall
be responsible for supervision and management of the prevention and control of environmental pollution by solid wastes within their
respective functions.

The administrative competent department of construction of the State Council and the administrative competent departments of environmental
sanitation of the local people’s governments at or above the county level shall be responsible for supervising and administering
the cleaning, collection, storage, transportation and disposal of living wastes.

Chapter II Supervision and Administration of the Prevention and Control of Environmental Pollution by Solid Wastes

Article 11

The administrative competent department of environmental protection of the State Council shall, pursuant to state environmental quality
standards and state economic and technical conditions, formulate state technical standards on the prevention and control of environmental
pollution by solid wastes in collaboration with the relevant administrative competent departments of the State Council.

Article 12

The administrative competent department of environmental protection of the State Council shall establish a system for monitoring environmental
pollution by solid wastes, formulate unified monitoring standards and, in conjunction with relevant departments, set up a monitoring
network.

The administrative competent departments of environmental protection of people’s government in large and medium-sized cities shall
regularly issue the types, discharging amount, disposal conditions and other information regarding the solid wastes.

Article 13

The construction of projects which discharge solid wastes and the construction of projects for storage, use and treatment of solid
wastes shall be carried out the appraisal regarding their effects on environment according to law and in compliance with the relevant
state regulations concerning the management of environmental protection in respect of construction projects.

Article 14

The necessary supporting facilities for the prevention and control of environmental pollution by solid wastes as specified in the
appraisal document on the environmental effect of the construction project shall be designed, built and put into operation simultaneously
with the main part of the project. The construction project may be put into production or use, only after the facilities for the
prevention and control of environmental pollution by solid wastes are qualified upon examination to meet the standards by the administrative
competent department of environmental protection that has originally examined and approved the appraisal document on the environmental
effects . The facilities for the prevention and control of environmental pollution by solid wastes shall be checked and accepted
at the same time with the main part of the project is checked and accepted.

Article 15

The administrative competent department of environmental protection of the people’s government at or above the county level and other
supervisory and administrative departments for the prevention and control of environmental pollution by solid wastes shall, in accordance
with their respective functions, have the right to conduct on-site inspection of the entities related to the prevention and control
of environmental pollution by solid wastes within their jurisdictions. The entities under inspection shall faithfully report the
situation and provide necessary materials. The inspection organ shall keep confidential the know-how and business secrets of the
entities that is inspected.

When conducting on-site inspections, the inspection organ may adopt such measures as monitoring on the spot, collecting samples and
consulting or printing materials relating to the prevention and control of environmental pollution by solid wastes. The inspector
shall show their certificate when they conduct the on-site inspections.

Chapter III Prevention and Control of Environmental Pollution by Solid Wastes

Section I General Provisions

Article 16

Entities and individuals that discharge solid wastes shall adopt measures to prevent or reduce the environmental pollution by solid
wastes.

Article 17

Entities and individuals that collect, store, transport, utilize or dispose of solid wastes shall take measures to prevent the scattering,
run-off and leakage of solid wastes, as well as other measures against environmental pollution. Entities and individuals shall not
pour out, pile up, discard and perfuse over ground the solid waste without permission.

No entity or individual may dump solid wastes into or pile them up at rivers, lakes, ditches, reservoirs, bottomlands, banks or slopes
under the highest waterline or other places where the waste isn’t allowed to be dumped or piled up according to laws and regulations.

Article 18

Any entity shall abide by state rules about the cleaner production for designing and manufacturing products and packages. The administrative
competent department of standardization of the State Council shall, pursuant to state economic and technical conditions, prevention
and control situation of environmental pollution by solid wastes and technical requirements of products, formulate relevant standards
to prevent environmental pollution by over-package.

The enterprises producing, selling or importing products and packages that have been listed in the catalogue subject to mandatory
recycling shall reclaim the said products and packages according to state provisions.

Article 19

The State encourages scientific research and production institutions to do research on and manufacture plastic-sheet covering and
packages of commodities that are easy to be recycled and used, easy to be treated, or easy to be degraded in the environment.

Entities and individuals that use agricultural films shall take measures like the recycling for utilization so as to prevent or reduce
the environmental pollution by agricultural films.

Article 20

The engagement in the scale breeding of livestock and birds shall, according to relevant rules of the State, collect, store, utilize
and dispose dung of livestock and birds produced in the breeding so as to prevent environmental pollution.

No straw or stalk may be burnt in the open air of population-centralized districts, surroundings of airports, neighboring districts
of main communication arteries and districts as prescribed by the local people’s governments.

Article 21

Management and maintenance of facilities, equipments and places for collecting, storing, transporting and treating solid wastes shall
be strengthened so as to ensure their normal operation and function.

Article 22

No installation or site for centralized storage and treatment of industrial solid wastes or landfill of consumer wastes may be built
in the nature reserves, scenic resorts, conservation areas of drinking water and basic farmlands and other areas requiring special
protection that are prescribed by the State Council, relevant competent departments of the State Council and the provinces, autonomous
regions and municipalities directly under the Central Government.

Article 23

To transport any solid waste out of the administrative region of a province, autonomous region or municipality directly under the
Central Government for storage or treatment, one shall apply to the administrative competent department of environmental protection
of the people’s government of the province, autonomous region or municipality directly under the Central Government where the solid
waste is to be moved out for approval, which shall grant its approval after consulting with and obtaining permission from the administrative
competent department of environmental protection of the province, autonomous region or municipality directly under the Central Government
where the solid waste is to be accepted. No transfer may be carried out without approval.

Article 24

It is forbidden to dump, pile up or treat any solid waste from abroad within the territory of China.

Article 25

The State forbids the import of solid wastes that cannot be used as raw material and those that can’t be utilized through non-harm
treatment, and restricts the import of the solid wastes that can be used as raw materials and implements the classification management
of automatic licensing import thereto.

The administrative competent department of environmental protection of the State Council shall, in conjunction with the competent
department of foreign trade and the economic comprehensive macro-control department of the State Council, the General Administration
of Customs and the department of quality supervision, inspection and quarantine of the State Council, formulate, adjust and publish
solid waste catalogues of import-forbidden, import-restricted and automatic licensing import.

The import of solid wastes as listed in the catalogue of import-forbidden shall be forbidden. The import of solid wastes as listed
in the catalogue of import-restricted shall be examined and approved by the administrative competent department of environmental
protection of the State Council in collaboration with the competent department of foreign trade of the State Council. For any import
of solid wastes as listed in the catalog of automatic licensing import, formalities on the automatic licensing import shall be gone
through according to law.

The imported solid wastes shall comply with state environmental protection standards and be inspected to be qualified by the quality
supervision, inspection and quarantine department.

The specific measures for the administration of the import of solid wastes shall be formulated by the administrative competent department
of environmental protection of the State Council in collaboration with the competent department of foreign trade of the State Council,
the economic comprehensive macro-control department of the State Council, the General Administration of Customs and the quality supervision,
inspection and quarantine department of the State Council.

Article 26

Any importer that holds objections to the incorporation of his imported wastes into the administrative scope of solid wastes by the
customs may file an administrative reconsideration according to law or lodge an administrative suit to a people’s court.

Section II Prevention and Control of Environmental Pollution by Industrial Solid Wastes

Article 27

The administrative competent department of environmental protection of the State Council shall, jointly with the economic comprehensive
macro-control department of the State Council and other relevant departments, define boundaries of the pollution by industrial solid
wastes to the environmental, work out technical policies regarding the prevention and control thereof, and organize and promote
advanced production techniques and equipments for the prevention and control of environmental pollution by industrial solid wastes.

Article 28

The economic comprehensive macro-control department of the State Council shall, jointly with other relevant departments of the State
Council, organize the research, development and promotion of the production techniques and equipments that will reduce the discharge
amount and harmfulness of industrial solid wastes, and promulgate the list of backward production techniques and equipments that
cause severe environmental pollution by industrial solid wastes and thus should be eliminated within the time limit.

Producers, sellers, importers or users shall stop producing, selling, importing or using those equipments as included in the list
stipulated in the preceding paragraph within the time limit which are specified by the economic comprehensive macro-control department
of the State Council together with other relevant departments of the State Council. The users of such production techniques shall
stop using such techniques as included in the list stipulated in the preceding paragraph within the time limit as specified by the
economic comprehensive macro-control department of the State Council jointly with other relevant departments of the State Council.

Eliminated equipments included in the catalogue of equipments to be eliminated within a time limit shall not be transferred to any
other for use.

Article 29

The relevant departments of the people’s governments at or above the county level shall formulate a work plan for the prevention and
control of environmental pollution by industrial solid wastes, popularize the advanced production techniques and equipments which
can reduce the discharge amount and harmfulness of industrial solid wastes and promote the work on prevention and control of environmental
pollution by industrial solid wastes.

Article 30

Entities discharging industrial solid wastes shall establish and improve the responsibility system for the prevention and control
of environmental pollution and adopt measures for the prevention and control of environmental pollution by industrial solid wastes.

Article 31

Enterprises and public institutions shall rationally select and utilize the raw materials, energies and other resources, and adopt
advanced production techniques and equipments, so as to reduce the discharge amount and depress the harmfulness of industrial solid
wastes.

Article 32

The State institutes a system of declaration and registration for industrial solid wastes.

The entities discharging industrial solid wastes shall, in accordance with the regulations enacted by the administrative competent
department of environmental protection of the State Council, provide information about the categories, discharging amount, flow direction,
storage, treatment and other materials concerning industrial solid wastes to the administrative competent department of environmental
protection of the local people’s government at or above the county level where such entities are located.

Any significant modification of the declaration matters as prescribed in the preceding paragraph shall be declared in a timely manner.

Article 33

Enterprises and public institutions shall make use of industrial solid wastes produced thereby pursuant to economic and technical
conditions; for those industrial solid wastes that will not or can’t be utilized temporarily, enterprises and public institutions
shall, in accordance with the regulations of the administrative competent department of environmental protection of the State Council,
build facilities and sites for their safe and classified storage or carry out the non-harm treatment for them.

The construction of facilities and sites for storing and treating industrial solid wastes shall comply with state standards on environmental
protection.

Article 34

It is forbidden to close down, leave idle or dismantle, without approval, facilities or places for the prevention and control of environmental
pollution by industrial solid wastes. Where it is necessary to do so, prior verification and approval shall be obtained from the
administrative competent department of environmental protection of the local people’s government at or above the county level, and
measures shall be taken to prevent environmental pollution.

Article 35

Where it is necessary for the entities discharging industrial solid wastes to be terminated, measures for preventing and controlling
pollution shall be taken in advance to the facilities and sites for storing and treating industrial solid wastes, and the untreated
industrial solid wastes shall be disposed properly to prevent environmental pollution.

If an entity discharging industrial solid wastes has been altered, the altered entity shall, pursuant to state provisions about the
environmental protection, carry out the safety treatment or take measures for untreated industrial solid wastes and the storage and
treatment facilities and sites thereof so as to ensure the safe function of such facilities and sites. Where the parties concerned
have, prior to the alteration, otherwise stipulated the assumption of responsibilities for preventing and controlling pollution by
industrial solid wastes and the facilities and sites for storage and treatment, such stipulations shall prevail. However, the responsibilities
of the parties concerned to prevent and control pollution shall not be exempted.

The expenses, incurred from the safety treatment of untreated industrial solid wastes and the storage and treatment facilities and
sites of the entities that have been terminated prior to the implementation of the present Law, shall be borne by the relevant people’s
governments, however if the land use right of the said entity has been transferred according to law, the transferee thereof shall
undertake the expenses for the treatment. Where the parties concerned have other stipulations, such stipulations shall prevail. However,
the responsibilities of the parties concerned to prevent and control pollution shall not be exempted.

Article 36

A mining enterprise shall adopt scientific mining methods and techniques for mineral separation so as to reduce the production and
storage of gangues, waste rocks, mullocks and other mining solid wastes.

After the facilities for storing gangues, waste rocks, mullocks and other mining solid wastes aren’t used any more, a mining enterprise
shall, according to state provisions on environmental protection, close the fields to prevent environmental pollution and ecological
destroy.

Article 37

When dismantling, utilizing or disposing abandoned electronic appliances and motor vehicles and vessels, measures shall be taken to
prevent environmental pollution according to relevant laws and regulations.

Section III Prevention and Control of Environmental Pollution by living Wastes

Article 38

The people’s governments at or above the county level shall plan, as a whole, to build facilities for collecting, transporting and
treating urban-rural living wastes, improve the ratio of utilization and non-harm treatment of living wastes, promote industrial
development of collecting and treating living wastes, and progressively establish and perfect social service system for preventing
and controlling environmental pollution by living wastes.

Article 39

The administrative competent departments of environmental protection of the people’s governments at or above the county level shall
organize to clear, collect, transport and treat urban living wastes and may, by the way of bidding, choose qualified entities to
engage in the clearing, collection, transport and treatment of urban living wastes.

Article 40

Urban living wastes shall be placed at designated sites according to provisions as prescribed by the competent administrative departments
of environmental and sanitation, and shall not be dumped, cast or piled up at discretion.

Article 41

The clearing, collection, transportation and treatment of urban consumer wastes shall be conducted according to state provisions about
the environmental protection and environmental sanitation to prevent environmental protection.

Article 42

Urban living wastes shall be timely cleared and transported, progressively be collected and transported by different types, and be
reasonably utilized and be effected with non-harm treatment.

Article 43

Urban people’s governments shall, in a planned way, improve the composition of fuel, and develop coal gas, natural gas, liquefied
gas and other clean energy sources for use in urban areas.

Relevant departments of an urban people’s government shall arrange for the supply of clean vegetables to cities and towns so as to
reduce urban living wastes.

Relevant departments of an urban people’s government shall make an overall plan, rationally arrange for collecting and purchasing
networks, so as to promote the recycling of living wastes.

Article 44

The construction of facilities and sites for disposing living wastes shall comply with the standards on environmental protection and
environmental sanitation as prescribed by the administrative competent department of environmental protection of the State Council
and the administrative department of construction of the State Council.

It is forbidden to close down, leave idle or dismantle facilities and sites for disposing consumer wastes without approval. If it
is really necessary to close, leave idle or dismantle such facilities and sites, it shall be subject to the verification and approval
of the administrative competent department of environmental and sanitation and the administrative competent department of environmental
protection of the local people’s government at or above the county level, and measures shall be taken to prevent environmental pollution.

Article 45

The recycled substances from the living wastes shall be utilized pursuant to the uses and standards as set by the State, and shall
not be used to produce products that may do harm to human health.

Article 46

Entities undertaking constructions shall promptly clear and transport the solid wastes produced in the course of construction, and
utilize or dispose them pursuant to the provisions of the administrative competent departments of environmental and sanitation.

Article 47

An entity engaged in public transportation shall, pursuant to state regulations, clear up and collect the living wastes produced
in the course of transportation.

Article 48

Entities engaged in the development of new urban areas, the reconstruction of old areas and construction of residential quarters,
and operational and management entities located at airports, docks, stations, parks, stores and other public facilities and sites
shall build supporting equipments for collecting living wastes according to state regulations on environmental sanitation.

Article 49

The specific measures for the prevention and control of rural living wastes shall be prescribed by local regulations.

Chapter IV Special Provisions on the Prevention and Control of Environmental Pollution by Hazardous Wastes

Article 50

The provisions of this Chapter shall be applicable to the prevention and control of environmental pollution by hazardous wastes. Where
it is not covered by this Chapter, other relevant provisions of this Law shall be applicable.

Article 51

The administrative competent department of environmental protection of the State Council shall, jointly with other relevant departments
of the State Council, formulate a national catalog of hazardous wastes, lay down unified criteria and methods for identifying hazardous
wastes and recognizing symbol.

Article 52

A recognizing symbol of hazardous wastes shall be put on the containers and packages of hazardous wastes as well as on the facilities
and sites for collection, storage, transportation and treatment of hazardous wastes.

Article 53

An entity discharging hazardous wastes shall, pursuant to state provisions, work out a plan for managing hazardous wastes, and declare
the types, production quantity, flow direction, storage, treatment and other relevant materials to the administrative competent departments
of environmental protection of the local people’s governments at or above the county level.

The plan for managing hazardous wastes as mentioned in the preceding paragraph shall contain measures for reducing the discharge amount
and harmfulness of hazardous wastes and measures for storing, utilizing and treating hazardous wastes. The said plan shall report
to the local administrative competent department of environmental protection of the local people’s government at or above the county
level for archival filing where the entity is located.

Any significant modification of declaration matters as prescribed by this Article or the plan for managing hazardous wastes shall
be declared in a timely manner.

Article 54

The administrative competent department of environmental protection of the State Council shall, jointly with the economic comprehensive
macro-control department of the State Council, formulate the plan for constructing facilities and sites for centralized treatment
of hazardous wastes, which shall be implemented after being reported to the State Council for approval.

The people’s governments at or above the county level shall organize to build facilities and sites for centralized treatment of hazardous
wastes on the strength of the plans thereon.

Article 55

An entity that discharges hazardous wastes shall dispose hazardous wastes according to relevant provisions of the State, and shall
not dump or pile up them without approval; those that don’t treat hazardous wastes shall be ordered to correct within the time limit
by the e administrative competent departments of environmental protection of the people’s governments at or above the county level;
if an entity fails to treat within the time limit or in accordance with relevant provisions of the State, another entity shall be
commissioned to carry out the treatment by the administrative competent departments of environmental protection of the people’s governments
at or above the county level, and the expenses incurred therefrom shall be undertaken by the entity that discharges hazardous wastes.

Article 56

Where the treatment of hazardous wastes by the way of landfill doesn’t comply with the provisions as set by the administrative competent
department of environmental protection of the State Council, it shall pay discharging fees for hazardous wastes. The specific measures
for levying discharging fees of hazardous wastes shall be formulated by the State Council.

The discharging fees for hazardous wastes shall be used for the prevention and control of environmental pollution and shall not be
appropriated.

Article 57

Entities engaged in the collection, storage and treatment of hazardous wastes shall apply to the administrative competent department
of environmental protection of the people’s government at or above the county level for business licenses. Entities engaged in businesses
of utilizing hazardous wastes shall apply to the administrative competent department of environmental protection of the State Council
or the administrative competent department of environmental protection of the people’s government of a province, autonomous region
and municipality directly under the Central Government for business licenses. Specific measures for the administration thereof shall
be prescribed by the State Council.

It is forbidden to collect, store, utilize or treat hazardous wastes without a business license or against the provisions of the business
license.

It is forbidden to supply hazardous wastes to or

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...