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MINISTRY OF COMMERCE ANNOUNCEMENT NO.7, 2006 ON FINAL ARBITRATION ON BENZOFURANOL

Ministry of Commerce

Ministry of Commerce Announcement No.7, 2006 on Final Arbitration on Benzofuranol

[2006] No.7

On August 12, 2004, in accordance with Anti-dumping Regulations of People’ Republic of China, Ministry of Commerce issued an announcement
to start anti-dumping investigation on imported Benzofuranol originating from Japan, EU and the U.S. (hereinafter referred to as
“investigated product”).

Ministry of Commerce issued the preliminary determination on June 16, 2005, confirming that dumping of the investigated product had
taken place and it had caused material injury to China’ domestic industries, and there was a causal relationship between the dumping
and the injury.

As the final arbitration, Ministry of Commerce decided to impose anti-dumping duties on the investigated product. Customs Tariffs
Committee of the State Council will levy anti-dumping duties on the investigated product as of February 12, 2006.

The investigated product is listed under No. 29329910 in the Import and Export Tariffs of the People’ Republic of China.

The anti-dumping duty rates levied on the related companies are listed as follows:

Companies of U.S.:

1.

FMC: 44%

2.

All Others: 113.2%

Companies of Japan: 113.2%

Companies of EU: 113.2%

FMC of the U. S. and ￿￿￿ũҩ￿ʽ￿￿ has signed Prices Commitment Protocol with Ministry of Commerce of PRC (see Appendix 2 & 3),
which shall take effect with this Final Arbitration.

Importers shall, while importing Benzofuranol originating from Japan, EU and the U.S. as of February 12, 2006, pay relevant anti-dumping
duties to General Administration of Customs of PRC. Anti-dumping Duty= Customs Tax Payment Price * Anti-dumping Duty Rate.

The levy of anti-dumping duties on imported Benzofuranol originating from Japan, EU and the U.S. will last 5 years as from February
12, 2006.

The relevant interested parties could apply, in written forms, to the Ministry of Commerce for an interim review during the levy of
anti-dumping duties in accordance with Article 49 of Anti-dumping Regulations of People’ Republic of China.

The relevant interested parties, disagreed with the final arbitration or the levy of the anti-dumping duties, could apply for an administrative
reconsideration or lawsuit in accordance with Article 53 of Anti-dumping Regulations of People’ Republic of China.

Ministry of Commerce

February 12, 2006



 
Ministry of Commerce
2006-02-12

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 13 – CONTINGENCIES

The Ministry of Finance

Accounting Standards for Enterprises No. 13 – Contingencies

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 – Basic Standards for the purpose of regulating
the recognition and measurement of Contingencies, and the disclosure of relevant information.

Article 2

The term ” Contingencies” refers to the conditions that formed by past transactions or events, and the outcome of which will be confirmed
only by the occurrence or non-occurrence of future events.

Article 3

Other accounting standards shall apply to the Contingencies formed by events such as employee wages and salaries, construction contracts,
income taxes, business combination, leases, original insurance contracts, and re-insurance contracts.

Chapter II Recognition and Measurement

Article 4

The obligation pertinent to a Contingencies shall be recognized as an estimated debts when the following conditions are satisfied
simultaneously:

(1)

That obligation is a current obligation of the enterprise;

(2)

It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation; and

(3)

The amount of the obligation can be measured in a reliable way.

Article 5

The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance
of the current obligation.

If there is a sequent range for the necessary expenses and if all the outcomes within this range are equally likely to occur, the
best estimate shall be determined in accordance with the middle estimate within the range.

In other cases, the best estimate shall be conducted in accordance with the following situations, respectively:

(1)

If the Contingencies concern a single item, it shall be determined in the light of the most likely outcome.

(2)

If the Contingencies concern two or more items, the best estimate should be calculated and determined in accordance with all possible
outcomes and the relevant probabilities.

Article 6

To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of money, and
other factors pertinent to the Contingencies.

If the time value of money is of great significance, the best estimate shall be determined after discounting the relevant future outflow
of cash.

Article 7

When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated
by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement
will be obtained. The amount recognized for the reimbursement should not exceed the book value of the estimated debts.

Article 8

Where an executory contract turns to be a loss contract, the obligation generated from the loss contract which meets the provisions
of Article 4 of these Standards shall be recognized as an estimated debts.

The term “executory contract” refers to a contract, the contractual obligations of which fail to be performed by the relevant contracting
parties, or some of the equal obligations have been performed.

The term “loss contract” refers to a contract whose performance of the contractual obligations will inevitably incur costs in excess
of the expected economic benefits.

Article 9

The future operating losses of an enterprise shall not be recognized as estimated debts.

Article 10

If a restructuring obligations undertaken by an enterprise meets the provisions of Article 4 of these Standards, it shall be recognized
as an estimated debts. The simultaneous existence of the following situations indicates that the enterprise has undertaken the restructuring
obligation:

(1)

Having a detailed and formal restructuring plan, which consists of the businesses concerning restructuring, the main places, the number
of employees to be compensated and the nature of their posts, the expected expenditure for the recombination, the execution time
of the plan; and

(2)

The restructuring plan has been proclaimed to the general public.

The term “restructuring” refers to the act of implementing a plan made and controlled by an enterprise, which may substantially change
the organizational form, business scope or operating manner of the enterprise.

Article 11

The enterprise shall determine the amount of estimated debts in the light of the direct expenditure pertinent to the restructuring.

The direct expenditure exclude the expenses for the pre-post training of the employees who stay on to work, market promotion, new
systems, marketing network, etc.

Article 12

An enterprise shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence indicating
that the book value cannot really reflect the current best estimate, the enterprise shall adjust the book value in accordance with
the current best estimate.

Article 13

Any enterprise may not recognize any contingent debts or contingent asset.

The term “contingent debts ” refers to a potential obligation caused by past transactions or events and whose existence will be confirmed
only by the occurrence or non-occurrence of uncertain future events; or refers to a current obligation caused by a past transaction
or event but is not recognized because the performance of the obligation is not likely to incur an outflow of economic benefits from
the enterprise or because the amount of the obligation cannot be measured in a reliable way.

The term “contingent asset” refers to a potential asset caused by a past transaction or event and whose existence will be confirmed
only by the occurrence or non-occurrence of uncertain future events.

Chapter III Disclosure

Article 14

An enterprise shall, in its notes, disclose the information pertinent to the Contingencies as follows:

(1)

Estimated debts

(a)

The types and causes of the estimated debts, as well as an explanation for the uncertainty of the outflow of economic benefits;

(b)

The changes at the beginning and the end of the period, and the current changes in the estimated debts;

(c)

The amount of expected compensations pertinent to the estimated debts, and the amount of excepted compensation that has been recognized
in the current period.

(2)

Contingent debts (excluding those contingent liabilities that caused little possibility of any outflow of economic benefits).

(a)

The types and causes of the contingent debts , consisting of the contingent debts arising from discounted commercial acceptance bills
of exchange, pending litigations, pending arbitrations, and guarantees provided for the debts of other enterprises;

(b)

An explanation for the uncertainty of the outflow of the economic benefits;

(c)

An estimate of the expected financial effect of the contingent debts and the possibility of any expenditure. If it is unable to make
an estimate, the reasons shall be explained.

(3)

In general, no enterprise may disclose the contingent assets. However, if a contingent asset will probably give rise to an inflow
of economic benefits to the enterprise, the enterprise shall disclose the cause, the expected financial effect, etc.

Article 15

In the case of a pending litigation or arbitration, if the disclosure of some or all information in accordance with the provisions
as prescribed in Article 14 of these Standards can be expected to produce great unfavorable impact upon the enterprise, the enterprise
shall not need to disclose the information, but shall disclose the nature of the pending litigation or arbitration as well as the
truth and reasons for the failure to disclose the information.



 
The Ministry of Finance
2006-02-15

 






NOTICE ON PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE INSPECTION OF EXPORTATION OF PRODUCTS OF FOREIGN-FUNDED ENTERPRISES OF THE PERMITTED CATEGORY WHOSE PRODUCTS ARE TO BE WHOLLY EXPORTED DIRECTLY

Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation

Notice on Printing and Distributing the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises
of the Permitted Category Whose Products Are to Be Wholly Exported Directly

Shang Zi Fa [2006] No.1

To the competent departments of commerce, the public finance offices or bureaus, and the administrations of state taxation of all
the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,
as well as Xinjiang Production and Construction Corp., Guangdong Branch of the General Administration of Customs, and all customs
offices directly under the General Administration of Customs, and the financial supervisor’s offices of the Ministry of Finance at
all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,

For the purpose of implementing the Notice on Adjusting Some Preferential Policies concerning Import Taxes (No.146 [2002] of the Ministry
of Finance), the Ministry of Commerce, Ministry of Finance, General Administration of Customs, and State Administration of Taxation
have jointly formulated the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted
Category Whose Products Are to Be Wholly Exported Directly, which are hereby printed and distributed to you, please implement them
accordingly. In case you have any question in the process of implementation, please timely contact the relevant departments.

Ministry of Commerce

Ministry of Finance

General Administration of Customs

State Administration of Taxation

March 1, 2006 Annex:Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted Category Whose Products
Are to Be Wholly Exported Directly

Article 1

For the purpose of regulating the business operation activities of “foreign-funded enterprises of the permitted category whose products
are to be wholly exported directly”, the present Measures are formulated in pursuant to the requirements of the Notice on Adjusting
Some Preferential Policies concerning Import Taxes (Cai Shui[2002] No.146) of the Ministry of Finance, the former State Development
and Planning Commission, the former State Economic and Trade Commission, the former Ministry of Foreign Trade and Economic Cooperation,
General Administration of Customs, and the State Administration of Taxation, in accordance with the relevant provisions of the relevant
foreign investment laws and regulations and customs supervisions laws and regulations.

Article 2

The present Measures shall be applicable to the “foreign-funded enterprises of the permitted category whose products are to be wholly
exported directly” (hereinafter referred to as the “enterprises whose products are to be wholly exported”), namely, the foreign-funded
enterprises which are approved by the competent department for ratification and determined as “enterprises whose products are to
be wholly exported”, and enjoy tax reduction and exemption policies for importing equipment therefrom.

The present Measures shall not be applicable to the “enterprises whose products are to be wholly exported” that were established before
October 1, 2002, enterprises with the business scope of their products falling within the fields of other encouragement categories,
or any other foreign-funded enterprises.

Article 3

The inspection on exportation of products as mentioned in the present Measures shall include checking and investigation. Checking
shall refer to the inspection conducted on the exportation of products of the “enterprises whose products are to be wholly exported”
that were established after October 1, 2002 by the competent departments of commerce of all the provinces, autonomous regions, municipalities
directly under the Central Government, cities under separate state planning, and Xinjiang Production and Construction Corp. (hereinafter
referred to as the competent provincial departments of commerce) jointly with the financial supervisors’ offices of the Ministry
of Finance at the local regions, local customs offices, and the departments of state taxation (hereinafter referred to as the relevant
departments). Investigation shall refer to the inspection conducted on the exportation of products of the “enterprises whose products
are to be wholly exported” that were established before October 1, 2002 by the competent provincial departments of commerce jointly
with the relevant departments.

Article 4

The Ministry of Commerce shall be responsible for the administration of the inspection of exportation of products of the “enterprises
whose products are to be wholly exported”, and shall guide the inspection work countrywide jointly with the Ministry of Finance,
General Administration of Customs, and State Administration of Taxation. The competent departments of commerce at the provincial
level shall be responsible for the inspection on the “enterprises whose products are to be wholly exported” within their jurisdictions
jointly with the relevant departments.

Article 5

The time limit for checking shall be five years of the Gregorian Calendar from the day when the “enterprises whose products are to
be wholly exported” commence production. If these enterprises commence production after September 1 of the current year, the time
limit for checking shall be calculated from January 1 of the next year.

Article 6

Any “enterprise whose products are to be wholly exported” under the checking on its exportation of products shall submit the report
on the production, exportation, or sale of its products in the previous year (hereinafter referred to as the “Report”) in duplicate
and the customs declaration documents of import/export concerning the export products to the competent department of commerce at
the provincial level where it is located before January 31 of each year.

The report submitted by any “enterprise whose products are to be wholly exported” shall be signed by the legal representative of the
enterprise and affixed with the seal of the enterprise, and the contents of the report shall include: the name of the enterprise,
time for establishment, time for putting into production, output of the previous year, exportation conditions, whether the products
are to be sold in domestic market, and the tax payment of the enterprise in the current year, etc,. (For the detail, see the annexed
form), and shall be attached with the financial statements of the enterprise.

Article 7

The competent department of commerce at the provincial level shall make examination on the report within 60 days from the date when
it received the report jointly with the relevant departments. If the exportation of products complies with the provisions of Article
11 of the present Measures, the competent department of commerce shall, together with the local financial supervisor’s office, customs
house and department of state taxation, indicate the words of “The exportation of products complies with the facts” in the Report
submitted by the “enterprise whose products are to be wholly exported”, and affix the common seal. The competent departments of commerce
at the provincial level shall, collect the information on the examined exportation of products of the “enterprises whose products
are to be wholly exported” within their jurisdictions and report it to the Ministry of Commerce before April 15 each year,.

Article 8

The “enterprises whose products are to be wholly exported” that were established after October 1, 2002 and have accepted and passed
the annual checking shall apply for going through the relevant formalities for tax refund according to the relevant provisions within
15 days from the date when they have received the Report on the Quantity of Products for Export/Sale, which is sealed with the common
seals of the competent provincial departments of commerce and the local customs offices, administrations of state taxation, and financial
supervisor’s offices.

Article 9

The specific date of starting and ending the investigation shall be:

1.

For the “enterprises whose products are to be wholly exported” which were established and commenced production before October 1, 2002
and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation shall start
from October 1, 2002 till five years after the enterprises commenced production. If the equipment imported has not been actually
put into production and use at the time when the enterprises commenced production, the time limit for investigation on such equipment
shall be the five years after the day when the equipment imported is actually put into production.

2.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 but had not commenced
production, and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation
shall be five years of the Gregorian Calendar from the day when the enterprises commenced production. If the enterprises commence
production after September 1 of the current year, the time limit for checking shall be calculated from January 1 of the next year.

3.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 and no longer import
equipment after October 1, 2002, the time limit for investigation shall start from October 1, 2002 till five years after the enterprises
commenced production..

Article 10

The competent departments of commerce and the relevant departments at the provincial level shall make selective investigation on the
exportation of products of the “enterprises whose products are to be wholly exported” that still need investigation before the end
of March of each year. The competent departments of commerce at the provincial level shall send notice to the “enterprises whose
products are to be wholly exported”, and the enterprises that have received the notice shall submit the Report on the Quantity of
Products for Export/Sale of the enterprises in the previous year to the competent departments of commerce at the provincial level
where the enterprises are located within 15 days after receiving the notice. The contents of the report submitted and the ways of
submission shall be consistent with those of the Report on the Quantity of Products for Export/Sale as prescribed in Article 6 of
the present Measures.

The competent departments of commerce at the provincial level shall report the summary of investigation information on the “enterprises
whose products are to be wholly exported” within their jurisdictions to the Ministry of Commerce, and inform the local customs offices
of the name list of the enterprises that have not passed the investigation before May 1 each year.

Article 11

The total volume of products exported directly by the “enterprises whose products are to be wholly exported” in the previous year
shall reach 100% of the product sales revenue of the enterprises in the previous year.

Article 12

The “enterprises whose products are to be wholly exported” shall ensure that the materials submitted to the competent departments
of commerce at the provincial level are authentic and correct.

Article 13

In case any “enterprise whose products are to be wholly exported” that has enjoyed the policies of import tax refund or tax exemption
has the act of selling its products in domestic market in the inspection period afterwards due to the change of management environment
or market, it shall take initiative to apply to the local customs office for making up the import duty that has been refunded or
exempted within one month, and its refundable import duty of the current year and the following year shall not be refunded any longer.
After these procedures are gone through, it may be reduced or exempted from administrative punishment for the act of selling its
products in domestic market.

In case any “enterprise whose products are to be wholly exported” that has act of selling its products in domestic market in the inspection
period fails to apply for making up the tax within the time limit, or purposely disguises the facts or falsely reports that the exportation
of the enterprise has reached the examination standard in the Report on the Quantity of Products for Export/Sale submitted to the
competent department of commerce at the provincial level and is discovered to fail to reach the examination standard afterwards,
its refundable import duty in the current year or the following year shall no longer be refunded, and it shall be mandated to pay
the import duty that has been refunded or exempted in the previous years. The relevant departments shall impose punishment on it
for the aforesaid acts. If the enterprises sell or transfer equipments that are under customs supervision without permission, the
customs shall give them punishment.

Article 14

The competent departments of commerce at all levels and the relevant departments shall be diligent in the work of supervision and
inspection on the exportation of products of the enterprises, and shall hold on to principles and handle the problems discovered
in the checking and investigation according to the law.

Article 15

The Ministry of Commerce shall complete the inspection report of the previous year on the exportation of products of the “enterprises
whose products are wholly exported” before the end of June each year jointly with the Ministry of Finance, General Administration
of Customs, and State Administration of Taxation, and report it to the State Council.

Article 16

The power to interpret the present Measures shall remain with the Ministry of Commerce jointly with the Ministry of Finance, General
Administration of Customs, and State Administration of Taxation. The present Measures shall be come into force as of the date of
promulgation.



 
Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation
2006-03-01

 






ANNOUNCEMENT NO.16, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS, PROMULGATING THE FOURTH BATCH OF CATALOGUE OF PROHIBITED EXPORTS






Announcement No.16, 2006 of Ministry of Commerce and General Administration of Customs, Promulgating the Fourth Batch of Catalogue
of Prohibited Exports

[2006] No. 16

In accordance with Foreign Trade Law of the People’s Republic of China and Administrative Regulations on Commodities Import and Export
of the People’s Republic of China, Catalogue of Prohibited Exports (the fourth batch) is now announced and will take effect as from
May 1, 2006.

Appendix: Catalogue of Prohibited Exports (the fourth batch)

the Ministry of Commerce

General Administration of Customs

Mar 13, 2006
Appendix:
Catalogue of Prohibited Exports (the fourth batch)




Serial number

￿￿

Serial
number

Commodity
code

Trade
name

Notes

1

250510000

Silica
sand and Quatrz sand

Commodities
under 2505 are generally called natural sand no matter they are colored up
or not, except metal sand

2

250590000

Other
trade names

 



LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL TO JAPAN SHENZHEN BRANCH OF MIZUHO INDUSTRY BANK, LTD. TO DEAL IN RMB BUSINESS FOR NON-FOREIGN-FUNDED ENTERPRISES

Letter of China Banking Regulatory Commission concerning the Approval to Japan Shenzhen Branch of Mizuho Industry Bank, Ltd. to Deal
in RMB Business for Non-foreign-funded Enterprises

Japan Mizuho Corporate Bank, Ltd.,

The letter which was signed by Hiroshi Saito, president of your bank, and was addressed to this Commission has been received.

The following reply are hereby given to you according to the Regulation of the People’s Republic of China on the Administration of
Foreign-funded Financial Institutions (Order No. 340 of the State Council, hereinafter referred to as the Regulation) and the Detailed
Rules for the Implementation of the Regulation of the People’s Republic of China on the Administration of Foreign-funded Financial
Institutions (Order No. 4, 2004 of China Banking Regulatory Commission, hereinafter referred to as the Detailed Rules):

Your Shenzhen Branch is approved to deal in RMB business for non-foreign-funded enterprises under the scope prescribed in Article
17 of the Regulation.

Your Bank is approved to make additional allocations of a sum of foreign exchange working capital in convertible currencies, equivalent
to 100 million Yuan to Shenzhen Branch. After increasing the capital, the working capital of this Branch comes up to 300 million
Yuan, of which the foreign exchange working capital in convertible currencies comes up to 200 million Yuan and the RMB working capital
comes up to 100 million Yuan.

After increasing capital and going through statutory formalities in accordance with the Regulation and the Detailed Rules, your Shenzhen
Branch may, under Article 35 of the Detailed Rules, deal in providing foreign exchange business services to various clients under
the following scope: providing RMB business services to foreign-funded enterprises, China-based foreign institutions, mainland-based
representative offices of the enterprises set up by people from Hong Kong, Macao and Taiwan, and to aliens, compatriots from Hong
Kong, Macao and Taiwan, and non-foreign-funded enterprises, pooling public deposits, granting short-term, medium-term and long-term
loans, transacting acceptance and discount of negotiable instruments, buying and selling government bonds and financial bonds, buying
and selling non-stock negotiable instruments denominated in a foreign currency, providing services on letter of credit and guaranties,
transacting domestic and overseas settlements, buying and selling foreign currencies, buying and selling foreign currencies for itself
or on a commissioned basis, converting foreign currencies, inter-bank funding, bank card business, safety-deposit box, providing
credit-standing investigation and consultation services, as well as other business activities upon the approval of China Banking
Regulatory Commission.

China Banking Regulatory Commission

March 20, 2006

 
China Banking Regulatory Commission
2006-03-20

 



CIRCULAR OF THE MINISTRY OF FINANCE AND STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING CONSUMPTION TAXES IN THE IMPORT LINK






Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and State Administration of Taxation on Relevant Issues concerning Consumption Taxes in the Import
Link

Cai Guan Shui [2006] No.22

The General Administration of Customs,

For the purpose of meeting the requirements for social and economic development and perfecting the consumption tax system, adjustments
are made to the tax items, tax rates and the relevant consumption tax policies upon the approval of the State Council. In light of
the Circular of Ministry of Finance and State Administration of Taxation on Adjusting and Perfecting Consumption Tax Policies (Cai
Shui [2006] No.33), a notice on relevant issues concerning the collection of consumption taxes in the import link is hereby circulated
as follows:

I.

Consumption taxes shall be collected on such new taxable items as golf balls and golf equipments, luxury watches, yachts, disposable
wooden chopsticks, solid wood flooring, naphtha, solvent oil, lubrication oil, fuel oil, aviation kerosene, and so on. Consumption
taxes on skin care and hair care products shall be canceled. And the consumption tax rates on cars, motorcars, automobile tyres and
white spirits shall be adjusted. The tax rates on naphtha, solvent oil, lubrication oil, and fuel oil shall be 30% of the amount
of consumption taxes payable at interim; consumption tax on aviation kerosene shall not be collected at interim; and consumption
tax on radial tyres shall be exempted.

II.

Up to14 categories of commodities are subject to import link consumption tax after the adjustment, and see the Attachment for the
specific tax items and tax rates.

III.

The relevant provisions of the Circular of the Ministry of Finance, the General Administration of Customs, and the State Administration
of Taxation on Printing and Distributing the Provisions on Issues of Tax Policy concerning Collection of Taxes on Imported Goods
by the Customs in the Import Link (Cai Guan Shui [2004] No.7) shall be observed when handling issues concerning the policy on the
import link consumption tax.

IV.

The present Notice shall come into force as of the day of April 1, 2006. In case that any former provision conflict with this Notice,
the present Notice shall prevail.

Attachment: Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxes

Ministry of Finance

State Administration of Taxation

March 30, 2006 Attachment:Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxeshtm/e04852.htmAttachment

￿￿

￿￿






 

Tariff Code

Names of Commodities

Tax Rates

Note

 

21069020

Compound alcoholic preparations used for the manufacture of beverages

5%

 

 

 

Beer made from malt, whose import duty-paid price is USD 370 per ton or more

250 Yuan per ton

1kg= 0.988 liters

 

22030000

Beers made from malt, whose import duty-paid value is less than USD 370 per ton

220 Yuan per ton

 

 

22041000

Grape Sparkling wine

10%

 

 

22042100

Small package wine made from fresh grapes

10%

 

 

22042900

Wine made from fresh grapes in other packages

10%

 

 

22043000

Other grape juices for brewing

10%

 

 

22051000

Small package vermouth and similar wines

10%

 

 

22059000

Vermouth in other packages and similar wines

10%

 

 

 

Yellow rice wine

240 Yuan per ton

1 kg = 0.962 liters

 

22060000

Other fermented beverages

10%

 

 

22071000

Undenatured ethyl alcohol of an alcoholic strength of 80% or more

5%

 

 

22072000

Ethyl alcohol and other spirits, denatured, of any strength

5%

 

 

22082000

Spirits made from distilling wines

20%+1yuan per kilogram

1 liter = 0.912 kg

 

22083000

Whisky

20% + 1 Yuan per kilogram

 

 

22084000

Rum and other spirits distilled from sugar canes

20% + 1 Yuan per kilogram

 

 

22085000

Gin

20% + 1 Yuan per kilogram

 

 

22086000

Vodka

20% + 1 Yuan per kilogram

 

 

22087000

Liqueurs and Cordials

20% + 1 Yuan per kilogram

 

 

22089010

Tequila

20% + 1 Yuan per kilogram

 

 

 

Undenatured ethyl alcohol of an alcoholic strength of less than 80%

5%

 

 

22089090

Liquor made from potatoes

20% + 1 Yuan per kilogram

 

 

 

Other liquors and alcoholic beverages

20% + 1 Yuan per kilogram

 

 

24021000

Cigars made from tobacco

40%

 

 

24022000

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being 50 Yuan
or more

45% + 150 Yuan per standard container

One standard carton of cigarettes = 200 cigarettes;

One standard container of cigarettes = 50,000 cigarettes

 

 

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being less than
50 Yuan

30%+150 Yuan per standard container

 

 

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being 50 Yuan or more

45% + 150 Yuan per standard container

 

24029000

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being less than 50 Yuan

30% + 150 Yuan per standard container

 

Cigar made from tobacco substitutes

40%

 

 

24031000

Tobacco for smoking

30%

 

 

24039100

￿￿Homogenized￿￿ or ￿￿reconstituted￿￿ tobacco

30%

 

ex

24039900

Manufactured tobacco and manufactured tobacco substitutes (excluding tobacco extracts and tobacco essences)

30%

 

 

27101110

Motor vehicle gasoline and aviation gasoline

0.2 Yuan per liter

1 kg = 1.388 liters

 

27101921

Light diesel oil

0.1 Yuan per liter

1 kg = 1.176 liters

 

27101911

Aviation kerosene

0.1 Yuan per liter, not collected for the time being

1kg =1.246 liters

 

27101120

Naphtha

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.385 liters

 

27101120

Rubber solvent oil, paint solvent oil, and extractive solvent oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1 kg= 1.282 liters

 

27101991

Lubricant oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.126 liters

 

27101922

No.5-7 fuel oil

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

1kg = 1.015 liters

 

27101929

Other fuel oils (excluding wax oil)

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

Wax oil: the volume percentage of distillage being less than 20% under 350￿￿ and more than 80% under 550￿￿font>

ex

33021090

Mixtures of spices and other substances for drinks and food products of more than 0.5% of alcohol strength
by volume

5%

 

 

33030000

Perfumes &toilet waters

30%

 

 

33041000

Make-ups for lips

30%

 

 

33042000

Make-ups for eyes

30%

 

 

33043000

Make-ups for fingernail and toenail

30%

 

 

33049100

Sachet, whether or not compressed, for cosmetic/toilet use

30%

 

ex

33049900

Other beautification make-ups (excluding skin-care make-ups)

30%

 

 

36041000

Fireworks and fire crackers

15%

 

 

40111000

New pneumatic tires of rubber, of a kind used on motor cars, of radial ply construction

0

Radial tyres shall refer to the tyres whose tyre cords are arranged according to the direction of the radials in the
structure of the tyres, and have belted layers with the steel cord arranged adjacent to the circular that bind the
tyre body tightly

 

New pneumatic tires of rubber used on motor cars, or of non-radial-ply construction

3%

 

40112000

New pneumatic tyres of radial ply construction used on buses or lorries

0

 

New pneumatic tyres of non-radial-ply construction used on buses or lorries

3%

 

40114000

New pneumatic tires of rubber used on motorcycles

3%

 

40116100

Other new pneumatic tires of radial ply construction having a ￿￿herring-bone￿￿ or similar tread

0

NOTICE OF CHINA INSURANCE REGULATORY COMMISSION ON CLARIFYING THE COMPOSITION OF COMMISSIONS OF INSURANCE SALESMEN

Notice of China Insurance Regulatory Commission on Clarifying the Composition of Commissions of Insurance Salesmen

Bao Jian Fa [2006] No. 48

All insurance regulatory bureaus and insurance companies:

After the promulgation of the Provisions on the Administration of Insurance Salesmen, some insurance companies have required this
Commission to clarity the composition of insurance salesmen’s commissions. We hereby clarify it upon deliberation that the insurance
salesmen’s commissions shall be composed of business costs and labor remuneration.

It is hereby notified.

China Insurance Regulatory Commission

April 27, 2006

 
China Insurance Regulatory Commission
2006-04-27

 



MEASURES FOR THE ISSUANCE EXAMINATION COMMITTEE OF CHINA SECURITIES REGULATORY COMMISSION

Order of China Securities Regulatory Commission

No. 31

The Measures for the Issuance Examination Committee of China Securities Regulatory Commission, which were deliberated and adopted
at the 179th executive meeting of the chairmen of China Securities Regulatory Commission on May 8, 2006, are hereby promulgated and
shall come into force as of May 9, 2006.
Shang Fulin,Chairman of China Securities Regulatory Commission

May 9, 2006

Measures for the Issuance Examination Committee of China Securities Regulatory Commission
Chapter I General Provisions

Article 1

With a view to ensuring to follow out the principles of openness, fairness and impartiality in the stock issuance examination and
improving the quality and transparency of the stock issuance examination, the present measures are formulated according to the relevant
provisions of the Securities Law of the People’s Republic of China.

Article 2

The China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) establishes the Issuance Examination Committee
(hereinafter referred to as the “IEC”) which shall be subject to the present measures when examining the applications of the issuers
for stock issuance as well as the applications for the issuance of convertible company bonds and other securities as admissive by
the CSRC (hereinafter referred to as the applications for stock issuance).

Article 3

The IEC shall, according to the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China
and other laws and administrative regulations as well as the provisions of the CSRC, conduct examination on the application documents
of the issuers for stock issuance and the preliminary examination reports of the relevant functionary departments of the CSRC.

The IEC shall vote on the applications for stock issuance by balloting, and advance examination opinions.

The CSRC shall, in light of the statutory conditions and procedures, make decisions on approving or disapproving the applications
for stock issuance.

Article 4

The IEC shall fulfill its duties through the work meeting of the IEC (hereinafter referred to as the IEC meeting).

Article 5

The CSRC shall be responsible for the routine management of the affairs of IEC and the examination and supervision over the members
of the IEC.

Chapter II Composition of the IEC

Article 6

The IEC shall comprise the professionals of the CSRC and the relevant experts outside the CSRC, who shall be appointed by the CSRC.

The number of IEC members shall be 25, among whom some may be full-time staff members. Thereto, five IEC members shall be from the
CSRC and the other 20 shall come from outside the CSRC.

The IEC shall have 5 conveners.

Article 7

The tenure of an IEC member shall be one year. The IEC member may be reappointed upon the expiration of the term for lower than 3
terms.

Article 8

An IEC member shall meet the following qualifications:

(1)

Persisting in the principles, being impartial and clean, devoting to his duties and posts, and strictly complying with the laws,
administrative regulations and rules;

(2)

Knowing well the securities and accounting business as well as the relevant laws, administrative regulations and rules;

(3)

Being proficient in the special knowledge of his profession, and enjoying a higher reputation in his practicing field;

(4)

With no records of violation of any law or discipline; and

(5)

Other requirements as considered necessarily by the CSRC.

Article 9

Under any of the following circumstances, an IEC member shall be dismissed by the CSRC:

(1)

Violating any law, administrative regulation, rule or discipline related to the work of issuance examination;

(2)

Failing to be diligent and fulfill his duties according to relevant provisions of the CSRC;

(3)

Filing an application for resignation by himself;

(4)

Failing to attend the IEC meetings without reasons for twice or more; or

(5)

Other circumstances under which, after examination, the CSRC considered that he is unsuitable for assuming the post as an IEC member.

Whether an IEC member is dismissed or not shall be not restricted by the expiration of the tenure. And after an IEC member is dismissed,
the CSRC shall elect and appoint a new IEC member in time.

Chapter III Responsibilities of the IEC

Article 10

Responsibilities of the IEC are as follows:, according to the relevant laws, administrative regulations and the provisions of the
CSRC, examining whether the applications for stock issuance meet the relevant requirements or not,; examining the relevant materials
and position papers as issued by the recommendation institutions, accounting firms, law firms, assets valuation institutions and
other securities intermediary institutions as well as the relevant personnel thereof for the stock issuance; examining the preliminary
examination reports issued by the relevant functionary departments of the CSRC and putting forward the examination opinions on the
applications for stock issuance.

Article 11

The IEC member shall attend the IEC meeting in his own name, fulfill his duties according to laws, and issue examination opinions
and exercise his voting right independently.

Article 12

The IEC member may, through the relevant functionary departments of the CSRC, consult the relevant documents in relation to the issuers,
which are necessary for fulfilling his duties.

Article 13

The IEC member shall abide by the following provisions:

(1)

Attending the IEC meetings as required, and keeping diligent and fulfilling his duties in the examination work;

(2)

Keeping the secrets of the state and the business secrets of the issuers;

(3)

Being prohibited from disclosing any content discussed in the IEC meetings, the voting condition and any other relevant information;

(4)

Being prohibited from taking advantage of the status as an IEC member or the non-public information he has accessed to when performing
his duties to seek interests for himself or any other people directly or indirectly;

(5)

Being prohibited from having any interest with any applicant, from directly or indirectly accepting any gift such as money, goods
or any other benefits offered by the issuer or any other related entity or individual, from holding stocks whose issuance applications
are subject to his examination, and from privately contacting any of the issuers or other related entities or individuals;

(6)

Being prohibited from colluding with any other IEC member to cast votes or inducing any other IEC member to cast votes; or

(7)

Other relevant provisions of the CSRC.

Article 14

The IEC member is in duty bound to report to the CSRC any issuer or any other related entity or individual that imposes influence
on him by illicit means.

Article 15

Under any of the following circumstances when examining the application documents for stock issuance, the IEC member shall offer
to withdraw in time:

(1)

The IEC member or any of his relatives is the director (including the independent director, the same hereinafter), supervisor, manager
or any other senior management member of the issuer or the recommendation institution;

(2)

The IEC member, any of his relatives or the entity where he works holds the shares of the issuer, which may influence his fair fulfillment
of the duties;

(3)

The IEC member or the entity where he works has provided services such as recommendation, underwriting, auditing, evaluation, legal
services, consultation and etc to the issuer, during the past two years, which may hamper his fair fulfillment of his duties;

(4)

The company in which the IEC member or any of his relatives is a director, supervisor, manager, or other senior management member
has any trade competition with the issuer or the recommendation institution, which may affect his fair fulfillment of the duties
after verification;

(5)

Before convening an IEC meeting, the IEC member has met with the issuer being examined for this time or any other related entity
or individual, which may affect his fair fulfillment of the duties; and

(6)

Other circumstances as determined by the CSRC, which may lead to conflicts of interests, or as regarded by the IEC member that may
affect his fair fulfillment of the duties.

The “relatives” as mentioned in the preceding paragraph refer to the spouse, parents, sons or daughters, brothers or sisters of the
IEC member, the parents of his spouse, spouses of his sons or daughters, and the spouses of his brothers or sisters.

Article 16

Where an issuer and other related entities or individuals think that any IEC member has any conflict of interests or potential conflict
of interests with them, which may affect the fair fulfillment of the duties of the IEC member, they may file a written application
with the CSRC for demanding the withdrawal of the relevant IEC member and give relevant explanations, when they submit the application
documents on stock issuance to the IEC for examination.

The CSRC shall, in light of the written application filed by the issuer and other related entities or individuals, decide whether
the relevant IEC member shall withdraw.

Article 17

After an IEC member accepts an appointment, he shall promise to observe the relevant provisions and disciplinary requirements of
the CSRC on IEC members, fulfill his duties earnestly, and be subject to the examination and supervision of the CSRC.

Chapter IV IEC Meetings

Section 1 General Prescriptions

Article 18

The IEC shall conduct examination through convening IEC meetings.

Article 19

The way of open ballots shall be adopted for voting at the IEC meetings. And the votes shall include the consentient votes and negative
votes. No IEC member may waive his voting right. And the IEC members shall explain their reasons on the votes at the time of voting.

Article 20

An IEC member shall, according to the laws, administrative regulations and the provisions of the CSRC and based upon his own professional
knowledge, conduct independent, objective and fair examinations on the applications for stock issuance.

An IEC member shall, in a prudent and responsible manner, roundly examine the application documents of the issuers for stock issuance
and the preliminary examination reports issued by the relevant functionary departments of the CSRC, and shall fill in the working
paper with his personal examination opinions:

(1)

Where an IEC member has any objection to any issue that calls for the attention of IEC members in the preliminary examination report
or the examination opinions, he shall bring forward well-grounded and clear examination opinions on the relevant contents in the
working paper;

(2)

Where an IEC member thinks that the issuer has other problems than those that call for attention in the preliminary examination report,
he shall bring forward well-grounded and clear examination opinions in the working paper; and

(3)

Where an IEC member thinks that an issuer has any serious problem to be investigated and verified, which may affect his impartial
judgment, he shall bring forward well-grounded and clear examination opinions in the working paper.

An IEC member shall deliver his own examination opinions at the IEC meeting on the basis of his own working paper. Meanwhile, he shall
improve his own examination opinions according to the discussion of the meeting, and record them down in the working paper.

The IEC meeting shall, after sufficient discussion, form the examination opinion of the meeting on the application of the issuer for
stock issuance, and vote on whether or not the application of the issuer for stock issuance meets the relevant requirements.

Article 21

The convener of the IEC meeting shall, according to the relevant provisions of the CSRC, be responsible for convening the IEC meetings,
organize the IEC members to deliver their opinions or make discussions, summarize the examination opinion of the IEC, and organize
the voting and other relevant matters concerned.

After the IEC meeting is over, the IEC members attending the meeting shall sign their names for confirmation on the documents of the
meeting, including the records of the meeting, the examination opinions, the voting results and etc., and submit the working paper
at the same time.

Article 22

Before the formation of the examination opinion on the application of the issuer for stock issuance, the IEC meeting may invite the
representatives of the issuer and the recommendation representatives to the meeting to answer the inquiries of the IEC members.

Article 23

The IEC meeting shall only conduct one examination on the application of an issuer for stock issuance.

In case there is obvious disagreement between the examination opinion of the IEC meeting and the voting result, or the voting result
of the IEC meeting is apparently unjust, the CSRC may make investigation into it, and make a decision on whether or not to approve
it.

Article 24

The relevant functionary departments of the CSRC shall be responsible for organizing the IEC meeting, serving relevant examination
documents, recording down the discussions of the IEC meeting, drafting the summary of the IEC meeting, keeping the archives and other
concrete work.

Article 25

The IEC meeting may, in pursuance of the requirements of the examination work, invite other professional experts other than the IEC
members to attend the meeting and provide special consultation opinions. These experts outside the IEC have no voting rights.

Article 26

The IEC shall convene the plenary session at least once a year to summarize the examination work.

Section 2 Common Procedures

Article 27

The examinations of the IEC meeting on applications of the issuers for the public stock issuance and the applications for other securities
issuance as approved by the CSRC such as convertible company bonds shall be subject to the provisions of this section.

Article 28

The relevant functionary departments of the CSRC shall, 5 days before the IEC meeting is convened, serve the notice of the meeting,
the application documents for stock issuance and the preliminary examination report of the relevant functional departments of the
CSRC to the IEC members attending the meeting, and publicize on the website of the CSRC the name list of the issuers being examined
by the IEC, the time for the meeting, the commitment letter of the issuers as well as the name list of the IEC members attending
the meeting.

Article 29

The number of IEC members attending each IEC meeting shall be 7. If the consentient votes achieve 5, it may be deemed as a pass,
while if the consentient votes are less than 5, it will be deemed as a failure.

Article 30

Where any of the IEC members finds that there are still serious problems needed to be investigated and verified, which may affect
the impartial judgment, they may propose to suspend the voting in written form before the IEC meeting is held.

The IEC meeting shall first vote on whether or not to suspend the application for stock issuance. If there are 5 consentient votes,
the application for suspending the aforesaid stock issuance may be voted; otherwise, the IEC meeting shall examine the application
for the aforesaid stock issuance in accordance with the normal procedures.

When the application for issuance being suspended is submitted to the IEC meeting for examination once again, it shall be subject
to the examination of the original IEC in principle.

The IEC meeting can suspend the voting for the application of an issuer for stock issuance for only once.

Article 31

After the IEC meeting votes for the application of an issuer for stock issuance, the CSRC shall publicize the voting result on its
website.

The relevant functionary departments of the CSRC shall make written feedbacks to the recommenders as employed by the issuer the voting
result and the examination opinion as brought forward by the IEC meeting on the application of the issuer for stock issuance.

Article 32

Where an issuer has any major event inconsistent with the reported application documents for stock issuance after it passes the voting
of the IEC meeting on the application of the issuer for stock issuance and before the approval of the CSRC is obtained, the relevant
functionary departments of the CSRC may propose the IEC to convene an after-the-meeting IEC meeting to examine the application documents
of the issuer for stock issuance once again. The IEC members attending the after-the-meeting IEC meeting are not restricted by whether
or not they have conducted examination on the application of the issuer for stock issuance.

Section 3 Special Procedures

Article 33

The examinations of the IEC on the applications of listed companies for non-public stock issuance and the applications for other
non-public securities issuance as prescribed by the CSRC shall be subject to the provisions in this section.

Article 34

The relevant functionary departments of the CSRC shall, before an IEC meeting is convened, serve a notice of the meeting, the application
documents for stock issuance and the preliminary examination report of the relevant functionary departments of the CSRC to the IEC
members attending the meeting.

Article 35

The number of IEC members attending in each IEC meeting shall be 5. If the consentient votes achieve 3, it may be deemed as a pass,
while if the consentient votes are less than 3, it will be deemed as a failure.

Article 36

The IEC members shall not propose to suspend the voting on the applications of the listed companies for non-public stock issuance
or the applications for other non-public securities issuance as prescribed by the CSRC.

Article 37

The CSRC shall not publicize the name list of the issuers being examined at the IEC meeting, the time for the meeting, the commitment
letter of the issuers the name list of the IEC members attending the meeting or the voting result.

Chapter V Supervision over the Examination Work of the IEC

Article 38

The CSRC shall adopt an accountability system on the IEC. In case there is any obvious disagreement between the examination opinion
of the IEC meeting and the voting result, the CSRC may require all the IEC members attending the meeting to make explanations respectively.

Article 39

In case any IEC member commits any act violating the provisions of Article 13 of the present measures, or any other act in violation
of the working disciplines of the IEC such as failing to withdraw from attending the IEC meeting where he ought to do so and etc.,
the CSRC shall, in light of the severity of the circumstances, make conversation and reminding, criticize, dismiss or impose other
punishment on the member.

Article 40

The CSRC shall establish a reporting and supervising mechanism for the acts of the IEC members in violation of any law or discipline.

Where there is any clew or tip-off on an IEC member’s violation of any law or discipline, the CSRC shall make investigation into it,
and on the basis of the investigation conclusion, make conversation and reminding, criticize, dismiss or impose other punishments
on the member; in case the member is suspected of any crime, he shall be transferred to the department of justice for punishments.

Article 41

The CSRC may publicize its criticism on the IEC member through the news media.

Article 42

Where, before an IEC meeting is convened, there are evidences showing that the issuers or other relevant entities or individuals
have influenced directly or indirectly the judgment of the IEC members on the application of the issuer for stock issuance by illicit
means or disturbed the examination of the IEC members in any other form, the CSRC may suspend the examination of the IEC meeting
on the relevant issuers.

Where, after the application of an issuer for stock issuance is passed by the IEC meeting, there are evidences showing that the issuer
or other relevant entities or individuals have influenced directly or indirectly the judgment of the members of the IEC on the application
of the issuer for stock issuance by illicit means, or disturbed the examination of the IEC in any other form, the CSRC may suspend
the approval; in case the circumstances are serious, the CSRC shall not approve it.

Article 43

The recommendation institution of an issuer has the duty to urge the issuer to observe the relevant provisions of the present measures.
If the recommendation institution suborns, assists or participates in disturbing the work of the IEC, the CSRC shall not accept the
recommendation of the recommendation institution within 3 months in accordance with the relevant provisions.

Chapter VI Supplementary Provisions

Article 44

The present measures shall be implemented as of May 9, 2005. The Interim Measures for the Issuance Examination Committee of China
Securities Regulatory Commission (Order No. 16 of the CSRC) shall be abolished simultaneously.

 
China Securities Regulatory Commission
2006-05-09

 



NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING TAX REFUND FOR THE EXPORT OF GOLD-CONTAINED PRODUCTS

Notice of the State Administration of Taxation on the relevant issues concerning Tax Refund for the Export of Gold-Contained Products

Guo Shui Han [2006] No. 481

The state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under
separate state planning:

After the distribution of the Supplementary Notice of the State Administration of Taxation on the relevant issues concerning Implementing
the Tax Exemption Policies for the Export of Gold-Contained Products (No. 10 [2006] of the State Administration of Taxation), some
regions reflect that some export products with the customs commodity code 3824909090 do not contain any gold or platinum gold and
request continuative implementation of the tax refunding (exemption) policies for the export of these products. Upon investigation,
we hereby notice of the relevant issues as follows:

I.

As for the export of the following goods fallen under the customs commodity code 3824909090, the tax refunding (exemption) policies
for export shall be continuously executed..

colored particles, diatomite, mixed refrigerant, octadecenoic acid, o/p toluene sulphonic acid, UV powder, ichthammol, sucrose fatty
acid ester, shoe curing agent, non-hexavalent chromium acid involucra passivation solution, C18-16 mellow wine, azeotrope, coating
powder, aluminum polychlorid, synthetic hectorite layer clay, lufennoron cream, vegetal polysaccharides, and chemical anchoring bolt.

II.

The present Notice shall come into force as of May 1, 2005.

The State Administration of Taxation

May 23, 2006



 
State Administration of Taxation
2006-05-23

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA, MINISTRY OF FINANCE, CHINA BANKING REGULATORY COMMISSION, CHINA SECURITIES REGULATORY COMMISSION ON PROMULGATING THE SUPPLEMENTARY CIRCULAR ON THE ACQUISITION OF PERSONAL CREDITS

Circular of the People’s Bank of China, Ministry of Finance, China Banking Regulatory Commission, China Securities Regulatory Commission
on Promulgating the Supplementary Circular on the Acquisition of Personal Credits

Yin Fa [2006] No. 189

The people’s governments of each province, autonomous region, municipality directly under the Central Government, and city specifically
designated in the state plan, Shanghai Headquarters, all branches and business departments of the People’s Bank of China, central
sub-branches of the People’s Bank of China in provincial capital cities, central sub-branches of the People’s Bank of China in Dalian,
Qingdao, Ningbo, Xianmen and Shenzhen, the fiscal departments (bureaus) of each province, autonomous region, municipality directly
under the Central Government and city specifically designated in the state plan, the banking regulatory bureaus of each province,
autonomous region, municipality directly under the Central Government, and city specifically designated in the state plan, the securities
regulatory bureaus of each province, autonomous region, municipality directly under the Central Government, and city specifically
designated in the state plan,

On January 27, 2006, the People’s Bank of China, Ministry of Finance, China Banking Regulatory Commission, China Securities Regulatory
Commission printed and distributed the Supplementary Circular on Acquisition of Personal Credits (hereinafter referred to as the
Supplementary Circular ). You’re hereby informed of the following matters with regards to the release of the Supplementary Circular:

1.

The Supplementary Circular shall be declassified as of the date of promulgation. The contents released shall be based on the Annex
of this Circular. The local people’s governments at all levels and all related departments shall rigorously carry out the national
uniform policies in accordance with the Supplementary Circular.

2.

The publicity of the Supplementary Circular shall be subject to the principle that “it shall be posted in the institution which is
guilty of wrongdoing” and that “no putting on the Internet or on any newspaper”. Under the direction concerning the real conditions
of the local people’s governments and regulatory departments, it shall be put up in the business spots of the financial institution
by the liquidation group (trust group or work team) of the financial institution to be settled.

3.

The local people’s governments at all levels and all related departments shall perform well in the propaganda and interpretation of
the Supplementary Circular, make the detailed and planned working scheme and strive to maintain the financial stability and social
stability. All identification and confirmation groups shall carefully implement their functions, strictly control the quality, and
fulfill the related tasks.

Appendix: Supplementary Circular on the Acquisition of Personal Credits

The People’s Bank of China

The Ministry of Finance of the People’s Republic of China

The China Banking Regulatory Commission

The China Securities Regulatory Commission

June 2, 2006
Appendix:
Supplementary Circular on the Acquisition of Personal Credits

You’re hereby informed of the related issues referring to the acquisition of personal credits to the financial institutions under
disposal during the period from September 30, 2004 to January 31, 2006 (including January 31, 2006, below the same):

The personal credits newly occurred after September 30, 2004 shall on the basis of the policies on the acquisition of personal credits
which are depicted in the Advice on the Purchase of Personal Credits and the Settlement Funds of Clients’ Securities (hereinafter
referred to as the Purchase Advice) and the Measures for the Implementation of the Purchase of the Personal Credits and the Settlement
Funds of Clients’ Securities (hereinafter referred to as the Implementation Measures), be gradually reinforced and treated in view
of different conditions.

1.

Principle of Acquisition

(1)

The determination of personal credits, the standards on the calculation of credits, the raising and repayment of acquisition funds,
as well as the policies on the acquisition of personal savings deposits and the principal and interests of the settlement Funds of
clients’ securities shall be conducted in accordance with the Purchase Advice and the implementation Measures.

(2)

The legal contracts, which were concluded before or on September 30, 2004 and were updated after September 30, 2004 owing to their
expiration (in which the creditors were not changed and the original contract amounts were not exceeded, the same below) and which
were examined and verified by the regulatory department, shall be still subject to the standards which is presented in the Purchase
Advice and the Implementation Measures. As regards any contract updated without being examined or verified by the regulatory department,
it shall be subject to the standards for the acquisition of personal credits as decided in this Circular.

(3)

Where any new fund was transfused into the credit when an aforesaid original credit contract was updated, the new fund shall be subject
to the standards for the acquisition of personal credits as decided in this Circular.

(4)

The new personal credit concluded during the period from September 30, 2004 (excluding September 30, 2004, the same below) to January
31, 2006 shall be subject to the standards for the acquisition of personal credits as determined in this Circular.

2.

Acquisition Standards

The acquisition of the personal credits which took place during the period from September 30, 2004 to January 31, 2006 and which fell
in the range of acquisition shall accord with the following standards:

(1)

Where the accumulative amount of credits of a same person (an individual with the same identity card number) is 100, 000 Yuan or less,
the aforesaid credits shall be totally purchased;

(2)

Where the accumulative amount of credits of a same person is over 100, 000 Yuan (excluding 100, 000 Yuan) but less than 200, 000 Yuan,
90 % of the aforesaid credits shall be purchased;

(3)

Where the accumulative amount of credits of a same person is over 200, 000 Yuan (excluding 200, 000 Yuan) but less than 500, 000 Yuan,
80 % of the aforesaid credits shall be purchased;

(4)

Where the accumulative amount of credits of a same person is over 500, 000 Yuan (excluding 500, 000 Yuan) but less than 1, 000, 000
Yuan, 70 % of the aforesaid credits shall be purchased;

(5)

Where the accumulative amount of credits of a same person is over 1, 000, 000 Yuan (excluding 1, 000, 000 Yuan) but less than 2, 000,
000 Yuan, 60 % of the aforesaid credits shall be purchased;

(6)

Where the accumulative amount of credits of a same person is over 2, 000, 000 Yuan (excluding 2, 000, 000 Yuan) but less than 3, 000,
000 Yuan, 50 % of the aforesaid credits shall be purchased; and

(7)

Where the accumulative amount of credits of a same person is over 3, 000, 000 Yuan (excluding 3, 000, 000 Yuan), the aforesaid credits
shall not be purchased.

3.

Where any personal credit which took place after September 30, 2004 is in violation of the related provisions, the related department
shall hold the related persons responsible, and shall timely convey them to the judicial department if they are involved in any crime.

4.

For any matter not included in this Circular, it shall be subject to the Purchase Advice, Implementation Measures and other provisions.



 

2006-06-02

 






1...111213...25Page 12 of 25

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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