Home Probate Page 2

Probate

CIRCULAR OF THE MINISTRY OF FINANCE ON RELEVANT ISSUES CONCERNING RESEARCH AND DEVELOPMENT FUND FOR HIGH TECHNOLOGY IN PACKAGING INDUSTRY

Circular of the Ministry of Finance on Relevant Issues concerning Research and Development Fund for High Technology in Packaging Industry

Cai Qi [2005] No.107

Relevant Enterprises directly under the Central Authorities, Departments (Bureaus) of Finance in all provinces, autonomous regions,
municipalities directly under the Central Government, and cities separately listed on the State plan:

In order to encourage the packaging industry to actively develop new products and adopt new technologies, and to promote the development
of China’s packaging industry, a research and development (R&D) fund for high technology in the packaging industry (hereinafter
referred to as “this fund”) will be allocated in the central financial budget to support the R&D of high products, the technological
innovation, the promotion of new technologies etc. in the packaging industry as of the year of 2005. And this Circular on relevant
issues is hereby given as follows.

1.

The Support Scope of this Fund

This fund shall mainly support such projects as are in line with the state’s macro economic polices, environmental protection and
recycling economy policies:

(1)

the research, manufacturing and industrialization projects of new-patterned packing products, materials and machines which has been
verified by relevant authorities as high level projects with international standards or being capable of filling China’s domestic
blank.

(2)

R&D projects of high technologies that are characterized by an integration of industries, academic institutions and research
institutes, new product research program at national level with verification by relevant authorities, design and development programs
of new materials and technologies and application programs of new technologies set up by government departments at or above the provincial
or municipal level;

(3)

projects on new-patterned packing materials that aim at guarantying safety and health of human beings;

(4)

projects on reduction of packing materials and energy-saving packing; projects on the dispose and utilization of packaging refuse;

(5)

projects on the research and establishment of packing regulations and technology standards and relevant testing methods; and

(6)

other projects of new technology in line with the state’s policies on packaging industry.

2.

Fund-supporting Modes and Uses

There shall mainly be two fund-supporting modes, namely aid for free and loan with subsidy interest. Generally, where the investment
of a R&D project is mainly based on self-financing, the mode of aid for free shall be adopted; where the investment of a R&D
project is mainly based on bank loans, the mode of loan with subsidy interest shall be adopted. Each project shall only be subject
to one mode, and no repeated application may be permitted.

The amount of an aid for free for each project shall be within RMB 5 million Yuan, and shall not exceed the amount of an enterprise’s
self-financing. The amount of a loan with subsidy interest shall be determined with reference to the loan amount of project and the
loan interest of the corresponding period that are promulgated by the People’s Bank of China, and the loan with subsidy interest
shall be paid to an enterprise after it pays the interest in advance; the time limit of the subsidy interest shall be no more than
2 years and the amount of subsidy interest shall be no more than RMB 5 million Yuan for each project.

This fund shall mainly be used to pay the relevant expenses that arise during the R&D of a project, including labor cost, expense
for key experiment equipments and software, expense for fuels and energy, lease charge, experiment expense, materials expense, expense
for entrusted development, and other expenses that are in line with the provisions of the current regime and relate to the R&D
of a project upon the approval of the Ministry of Finance.

3.

Fund declaration

(1)

An enterprise that applies for this fund shall meet all the qualification conditions as follows:

(a)

Being a domestic medium-sized or large-sized enterprise engaged in the manufacturing of packaging products, materials and machinery
that possesses an independent legal person post_title , and a normative corporate management structure;

(b)

Having a sound financial management system and timely reporting its financial information to the finance authorities at the corresponding
level; and

(c)

Having a good credit in accounting and tax-payment.

(2)

Aside from the aforesaid basic conditions, an applicant enterprise shall also meet one of the conditions as follows:

(a)

Having a technology center that has been certificated by authorities at a province level or above;

(b)

Having an R&D investment of the previous year that accounts for more than 3% in its proceeds of sale; or

(c)

Having an annual average R&D investment of more than RMB 5 million Yuan in the past 3 years.

(3)

An enterprise that applies for this fund shall submit its application in written form, and provide the documents as follows:

(a)

the ectype of the business license of the enterprise as a legal person as well as the articles of association thereof (duplicate);

(b)

A general presentation of its business performance, including its major products, manufacturing technologies, principal economic
indexes etc.;

(c)

the feasibility study report of the project;

(d)

the accounting statements and auditing report of last annual year audited by an accounting firm;

(e)

the environmental evaluation opinion issued by the environmental protection authority at a province level or above;

(f)

the source of funds needed in the R&D of the project and valid vouchers (the valid voucher(s) of the self-financed funds that
have been fulfilled or invested in the project, the project loan contract and the bank interest bill etc.) and

(g)

other documents required.

4.

Fund Examination and Allocation

Provincial finance authorities shall authorize the Packaging Technology Association at the corresponding level to conduct an examination
on qualifications and relevant documents of applicant enterprises within the territory of its own jurisdiction, and shall, before
August 31 of every year, submit to the Ministry of Finance the fund application reports and documents of the applied projects. And
the fund application report and documents of the applied project of an enterprise directly under the Central Authorities shall directly
be submitted to the Ministry of Finance.

The Ministry of Finance shall authorize China Packaging Federation to organize experts to conduct examinations on the application
reports and the documents about the facts of the applied project that are submitted by enterprises directly under the Central Authorities
and by the local authorities, and determine, upon the examination results, the supported projects, fund-supporting modes and amounts.
The funds for enterprises directly under the Central Authorities shall directly be allocated by the Ministry of Finance; and those
for enterprise under local authorities shall be allocated by the Ministry of Finance to the local finance authorities, who shall
then allocate them to enterprises concerned.

5.

Accounting process of this fund

Such part of an aid for free that an enterprise receives as assets shall be reckoned in reserve fund, and such part that does not
form assets shall be written off according to facts. The loan with subsidy interest that an enterprise receives shall be used to
net off financial charges.

6.

Fund Supervision and Inspection

Project-bearing units shall exercise a special-account management and reckoning on this fund, which shall bear no withholding, occupation
or misappropriation by any unit or individual in any excuse. The management and utilization of this fund shall be subject to the
supervisions and inspections by the Ministry of Finance and the local finance authorities, and may also be subject to the auditing
from the audit authorities or social audit institutions that are entrusted by the Ministry of Finance and the local finance authorities.
Any enterprise that is detected having obtained funds through fraudulence and falsification or having used funds not in accordance
with the prescribed means shall be deprived of the qualification to apply for funds and shall be severely punished in accordance
with the Regulations on Punishment and Disciplinary for Illegal Financial Activities.

Ministry of Finance

July 26, 2005



 
Ministry of Finance
2005-07-26

 







REGULATION ON PROHIBITION OF PYRAMID SELLING

the State Council

Order of the State Council of the People’s Republic of China

No. 444

The Regulation on Prohibition of Pyramid Selling,which was adopted at the 101st executive meeting of the State Council on August 10,2005,are
hereby promulgated and shall go into effect as of November 1,2005.

Premier of the State Council,Wen Jiabao

August 23,2005

Regulation on Prohibition of Pyramid Selling

Chapter I General Provisions

Article 1

With a view to preventing frauds,protecting the legitimate rights and interests of citizens,legal persons and other organizations,maintaining
the socialist market economic order and preserving social stability,this Regulation is formulated.

Article 2

The term”pyramid selling” as mentioned in this Regulation refers to such an act whereby an organizer or operator seeks for unlawful
interests,disturbs the economic order and affects the social stability by recruiting persons,calculating and paying remunerations
to recruiters on the basis of the number of persons a recruiter has directly or indirectly recruited or the sales performance,or
asking the recruiters to pay a certain fee for obtaining the qualification for participation.

Article 3

The local people’s government at or above the county level shall strengthen the leadership in investigating and handling the pyramid
selling,support and urge all relevant departments to perform their administrative and supervisory duties according to law.

The local people’s government at or above the county level shall,in light of actual needs,establish a coordinative mechanism for the
investigation and handling of pyramid selling,and timely coordinate and solve those significant problems occurred in the work relating
to the investigation and handling of pyramid selling.

Article 4

The department of industry and commerce administration and the public security organ shall,pursuant to this Regulation,investigate
and handle the pyramid selling within their respective duties.

Article 5

When investigating and handling the pyramid selling,the department of industry and commerce administration and the public security
organ shall,adhere to the principle of combining education with punishment,and shall instruct citizens,legal persons or other organizations
to voluntarily abide by the law.

Article 6

All entities and individuals are enpost_titled to report any pyramid selling to the department of industry and commerce administration
or the public security organ,which shall,after receiving such a report,promptly carry out investigation and verification,handle it
in accordance with the law and keep secret for the informer. Where the report is found to be true upon investigation,the informer
shall be rewarded pursuant to the relevant state provisions.

Chapter II Types of Pyramid Selling and the Investigation and Handling Authority

Article 7

The following acts belong to the pyramid selling:

(1)

An organizer or operator seeks for unlawful interests by recruiting persons to participate in pyramid selling,asking the recruiters
to persuade others to participate in pyramid selling,calculating and paying remunerations (including material awards and other economic
interests,the same below) to the recruiters on the basis of the number of persons a recruiter has directly or indirectly recruited
in a rotating way;

(2)

An organizer or operator seeks for unlawful interests by recruiting persons to participate in pyramid selling and asking the recruiters
to pay fees explicitly or in any disguised form like purchasing commodities for obtaining the qualification for participating in
pyramid selling or recruiting others to participate in pyramid selling; and

(3)

An organizer or operator seeks for unlawful interests by recruiting persons to participate in pyramid selling,asking the recruiters
to persuade others to participate in pyramid selling so as to form a multi-level relationship,and calculating and paying the remuneration
to an upper-level promoter on the basis of the sales performance of the promoters below.

Article 8

The department of industry and commerce administration shall,under this Regulation,be responsible for investigating and handling the
pyramid selling as prescribed in Article 7 of this Regulation.

Article 9

The release of pyramid selling information as set out in Article 7 of this Regulation via the internet or any other public media
shall be investigated and handled by the department of industry and commerce administration jointly with the telecommunication department
in accordance with this Regulation.

Article 10

Where any organizer or operator deceives others into leaving their homes for unlawful gathering and restricts their liberties in the
name of introducing jobs or engaging in business operations in pyramid selling,the public security organ shall make investigations
and handle it in conjunction with the department of industry and commerce administration.

Article 11

The administrative departments or entities of commerce,education,civil affairs,public finance,labor security,telecommunication and
taxation shall,in pursuance of their respective duties and the relevant laws and administrative regulations,cooperate with the department
of industry and commerce administration and the public security organ in investigating and handling the pyramid selling cases.

Article 12

Such grassroots organizations as the rural villagers’ committee or the urban residents’ committee shall cooperate with the relevant
administrative department in investigating and handling pyramid selling cases under the guidance of the local people’s government.

Article 13

The department of industry and commerce administration shall investigate and handle any pyramid selling,and shall,if it may constitute
a crime,transfer it to the public security organ for placing the case on file for investigation. The public security organ shall
place the case on file for investigation and shall,if the pyramid selling does not constitute a crime upon investigation,transfer
it to the department of industry and commerce administration for investigation and handling.

Chapter III Measures and Procedures of Investigation and Handling

Article 14

The department of industry and commerce administration at or above the county level may,when investigating and handling the suspected
pyramid selling,take the following measures:

(1)

Ordering the violator to cease pertinent activities;

(2)

Making investigations against the organizer,operator or individual suspected of being involved in pyramid selling and making inquiries;

(3)

Carrying out on-the-spot inspections by entering into the business,training gathering places suspected of being involved in pyramid
selling;

(4)

Consulting,copying,sealing up or seizing the relevant contracts,bills,account books or other materials suspected of being involved
in pyramid selling;

(5)

Sealing up or seizing the products (commodities),tools,equipment,raw materials and properties that are suspected of being involved
in pyramid selling;

(6)

sealing up business places suspected of being involved in pyramid selling;

(7)

Consulting accounts,accounting vouchers,account books and statements of account regarding the deposits of the organizer or operator
suspected of being involved in pyramid selling; and

(8)

Applying to the judicial organ for freezing the unlawful funds if there is evidence showing that they are to be transferred or concealed.

In case the department of industry and commerce administration adopts any of the measures as prescribed in the preceding paragraph,it
shall report it,in speech or writing,to the principal leader of the department of industry and commerce administration at or above
the county level for approval. Where it is necessary to adopt any of the measures as prescribed in the preceding paragraph under
emergency conditions,the department of industry and commerce administration shall report it promptly and make up the relevant formalities
afterwards. In particular,the implementation of seal-up or seizure or any measure as prescribed in Item (7) or (8) shall be subject
to obtaining a written approval of the principal leader of the department of industry and commerce administration at or above the
county level in advance.

Article 15

When the department of industry and commerce administration investigates and handles any suspected pyramid selling,there shall not
be less than 2 law enforcers.

Any law enforcer that has a direct interest with the party involved shall withdraw.

Article 16

When investigating and handling a suspected pyramid selling,the law enforcer of the department of industry and commerce administration
shall produce his identity documents to the parties involved or the relevant persons.

Article 17

When the department of industry and commerce administration seals up or seizes properties and materials,it shall deliver to the parties
involved on the spot a written decision on the seal-up or seizure and a list of properties and materials to be sealed up or seized.

Where it is in an inconvenient area or the investigation and handling of the case will be affected if the seal-up or seizure is not
timely carried out,the seal-up or seizure may be carried out in advance and the decision on seal-up or seizure shall be made up within
24 hours and be delivered to the parties involved.

Article 18

The period for the department of industry and commerce administration to carry out the seal-up or seizure may not be more than 30
days as is a general rule; if the case is complicated,it may be extended for another 15 days upon the approval of the principal leader
of the department of industry and commerce administration at or above the county level.

The department of industry and commerce administration shall properly keep properties that are sealed up or seized,and may not use
or destroy them. It shall be liable for any loss incurred unless the loss is caused by force majeure.

Article 19

When the department of industry and commerce administration carries out a seal-up or seizure,it shall ascertain the facts in a timely
manner,and make a handling decision during the period of seal-up or seizure.

Where the pyramid selling case is verified upon investigation,the illegal properties that are sealed up or seized shall be confiscated
in accordance with the law. Where,upon investigation and verification,there is no pyramid selling activity or the seal-up or seizure
is no longer required,the seal-up shall be canceled and the seized properties shall be promptly returned in a prompt manner upon
the handling decision.

If the department of industry and commerce administration fails to make a handling decision within the prescribed time limit,the properties
sealed up shall be regarded as having been unsealed and the seized properties shall be returned. If the department of industry and
commerce administration refuses to return them,the party involved may file an administrative litigation in the people’s court.

Article 20

If the department of industry and commerce administration or any of its functionaries violates this Regulation by using or destroying
any of the properties sealed up or seized and causes economic losses to the parties involved,it/he shall assume the responsibility
for compensation .

Article 21

When the department of industry and commerce administration investigates and handles a suspected pyramid selling case,the party involved
has the right to make statements and defend himself.

Article 22

When the department of industry and commerce administration investigates and handles a suspected pyramid selling case,it shall make
records on the spot.

The records made on the spot and the list of properties and materials sealed up or seized shall be signed or stamped by the parties
involved,witnesses and law enforcers. In case the party involved is absent or the party involved or the witness refuses to sign or
seal,the enforcers shall indicate it down in the on-the-spot records.

Article 23

As for the verified pyramid selling case,the department of industry and commerce administration and the public security organ may
promulgate a warning or a notice to remind the general public.

The release of a warning or notice to the general public shall be subject to the approval of the principal leader of the department
of industry and commerce administration or the principal leader of the public security organ at or above the county level.

Chapter IV Legal Liabilities

Article 24

Where an individual commits any act as prescribed in Article 7 of this Regulation and organizes and contrives pyramid selling,the
department of industry and commerce administration shall confiscate his illegal properties and gains and impose upon him a fine of
500,000 yuan up to 2 million yuan,and if a crime is constituted,he shall be investigated for criminal liabilities according to law.

Where an individual commits any act as prescribed in Article 7 of this Regulation and introduces,induces or coerces any other person
to participate in pyramid selling,the department of industry and commerce administration shall order him to cease the illegal act,confiscate
his unlawful properties and gains and impose upon him a fine of 100,000 Yuan up to 500,000 Yuan; and if a crime is constituted,he
shall be investigated for criminal liabilities according to law.

Where an individual commits any act as prescribed in Article 7 of this Regulation and participates in pyramid selling,the department
of industry and commerce administration shall order him to cease the illegal act and impose upon him a fine of less than 2,000 Yuan.

Article 25

When the department of industry and commerce administration imposes punishments under Article 24 of this Regulation,it can order
the violator to suspend operations for rectification or revoke its/his business license in accordance with the relevant laws and
administrative regulations.

Article 26

Where an entity or individual provides such conditions as business or training places,goods,custodian or storage service and so on,for
pyramid selling as prescribed in Article 7 of this Regulation,the department of industry and commerce administration shall order
it/him to cease the unlawful act,confiscate its/his unlawful gains and impose upon it/him a fine of 50,000 Yuan up to 500,000 Yuan.

Where an entity or individual provides internet information services for pyramid selling as prescribed in Article 7 of this Regulation,the
department of industry and commerce administration shall order it/him to cease the illegal act and inform the relevant department
to mete out punishments according to the Measures for the Administration of Internet Information Services.

Article 27

Where a party involved illegally puts to use,replaces,transfers or destroys the properties sealed up or seized,the department of industry
and commerce administration shall order him to cease the illegal act and impose upon him a fine of 5% to 20% of the value of the
properties used,replaced,transferred or destroyed. If he refuses to make corrections,a fine of one to three times the value of the
properties used,replaced,transferred or destroyed shall be imposed.

Article 28

Where anyone commits any act as prescribed in Article 10 of this Regulation and refuses or impedes the enforcers of the department
of industry and commerce administration to make investigations and handle the case and thus violates the regulations on public security
administration,the public security organ shall impose punishments on him in pursuance of the laws and administrative regulations
on public security administration; if a crime is constituted,he shall be investigated for criminal liabilities according to law.

Article 29

Where the department of industry and commerce administration,the public security organ and their functionaries abuse their power,neglect
their duties or practice favoritism and fail to investigate or handle pyramid selling cases according to the duties and procedures
as prescribed in this Regulation,or fail to investigate or handle the pyramid selling found,or support,harbor or connive any pyramid
selling,and a crime is thus constituted,the person-in-charge and other persons directly responsible shall be investigated for criminal
liabilities according to law; if no crime is constituted,the person-in-charge and other persons directly responsible shall be subject
to administrative sanctions.

Chapter V Supplementary Provisions

Article 30

This Regulation shall go into effect as of November 1,2005.



 
the State Council
2005-08-23

 







CIRCULAR CONCERNING THE MEASURES TO CONTROL THE EXPORT OF PRODUCTS OF HIGH ENERGY CONSUMPTION, HIGH POLLUTION AND RESOURCE

National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, Ministry of Land and Resources, General Administration
of Customs, State Administration of Taxation, State Environmental Protection Administration

Circular concerning the Measures to Control the Export of Products of High Energy Consumption, High Pollution and Resource

Fa Gai Jing Mao [2005] No. 1482

Departments of finance, departments of land and resources (departments of land and resources, bureaus of land and resources, land,
resources & housing administrative bureaus, real estate land and resources administration bureaus, programming &land and resources
bureaus), the Guangdong Sub-Administration of the Customs General Administration, Tianjin and Shanghai Special Commissioner’s of
Tianjin and Shanghai Office in all provinces, autonomous regions, municipalities directly under the central government, cities specifically
designated in the state plan, development and reform commission of Xinjiang Production and Construction Corps and the customs directly
under the General Administration of Customs, state tax bureaus and environmental protection bureaus (departments):

In light of the spirit of plenary meeting of the State Council, the central government has since May of this year taken measures to
control the export of part of the precuts of high energy consumption, high pollution and resources. In order to do it well, the matter
of concern is hereby given as follows:

1.

The necessity to control the export of products of high energy consumption, high pollution and resources

In recent year, the excessive investment in such industries as steel, cement, electrolytic aluminum, coke, aimless extension of the
yield, the surge of export of high-energy-consumption, high-pollution and resources products such as billet, steel ingot, electrolytic
aluminum, ferroalloy, part of the non-ferrous metal intensified the relations between domestic energy, raw material, transportation
and exerted more pressure on resources and environment. In 2004, the export of billet, steel, unforged and unrolled aluminum, ferroalloy
and coke registered 6.058 million ton, 14.23 million ton, 1.68 million ton, and 15.01 million ton, an increase of 312.1%, 104%, 34.8%,
20.5% and 2% respectively on year-on-year basis; that in the first half of this year increased by 262.4%, 154.1%,21.9%, 17% and 16.2%
respectively. In addition, such non-ferrous metals as zinc, tin, antimony and such high-energy-consumption, high-pollution and resources
products as phosphorus yellow and calcium carbide boasted a surge of export.

The massive export of high-energy-consumption, high-pollution and resources products intensified the conflict between coal, electricity
and oil and exerted greater pressure upon the environment. In 2004, the production of unforged and unrolled aluminum, billet, steel,
ferroalloy and phosphorus yellow for export consumed 49 billion kw, accounting for 82% of the electricity shortage, and even more
without the consideration of whole process of transport and electricity consumption. The high-energy-consumption products are largely
at the cost of serious environmental pollution, such as waste air and water released in the process of coke production, fluoride
set off in electrolytic aluminum and industrial dust in ferroalloy. Some electrolytic aluminum and billet enterprises were located
in the hinterland so that the exported material from the southeast regions had to be transported to the middle and the western region
and the finished products had to be transported to the southeast offshore area for export, which exerted greater pressure upon transport.
The massive export of high-energy-consumption, high-pollution and resources products overloaded upon the exterior conditions as energy,
resources, environment, and transport, and had side effect upon the sound and steady operation of our national economy. To control
of the export of high-energy-consumption, high-pollution and resources products was utterly necessary for the implementation of scientific
development outlook, reduction of environmental pollution, freeing the economic development from resource limit and alleviating the
tense relations among coal, electricity and oil.

2.

Measures to control the export of high-energy-consumption, high-pollution and resources products

Since this year, the relevant authorities with the approval of the State Council took a series of measures to set a limit of the export
of high-energy-consumption, high-pollution and resources products.

(1)

Axing the total export volume. The export quotas of coal was reduced from 0.1 billion tons in 2003 to 80 million tons in 2005, that
of raw oil from 5 million tons in 2003 to 1 million ton in 2005, and that of coal from 14.72 million in 2004 to 14 million in 2005.

(2)

Abolishing or reducing tax refund of part of the products. On January 1, 2005, the tax refund of such high-energy consumption products
as electrolytic aluminum, ferroalloy, phosphorus yellow, calcium carbide was abolished, in April, that of the primary products of
steel was annulled and the tax refund of steel was reduced from 13% to 11%, On May 1, that of rare earth metal, rare earth oxide,
rare earth salt, silicon metal, molybdenum ore and concentrate, light and dead burnt magnesite, fluorite, talcum, silicon carbide
and part of the processed timber was abolished; that of coal, zinc, tungsten, tin, antimony and their finished products reduced to
8%. On August 1, the tax refund of electrolytic manganese was abolished.

(3)

Levying export tariff. From January 1 of this year, export tariff was imposed on carbamide and tax of unforged and unrolled aluminum
was 5%. From June 1, the provisional duty rate for exported phosphorus was raised from 10% to 20 %, that of ferrosilicon from 0%
to 5%.

(4)

Stopping processing trade. The central governmental listed successively such products as coal, coke, phosphorous yellow, steel into
the forbidden category of processing trade, on August 22, alumina, ferroalloy mine was planned to be listed in and new processing
trade contract was scheduled to be stopped.

3.

Doing well the implementation of the supporting measures concerning alumina and ferroalloy mine processing trade.

In recent years the investment in electrolyte and ferroalloy industry surged, so does its yield. Stopping the alumina processing trade
was conducive to the reduction of import of alumina and export of electrolyte aluminum, decline of the price of alumina in international
market, recovery of alumina in international market and recovery of its price in the domestic market, as well as the creation of
a fairly competitive market, which was generally beneficial for the electrolyte and ferroalloy market. However, considering that
the supply of electrolyte and ferroalloy exceeded its market demand, the whole industry was generally in difficulties and losses
occurred in some enterprises. Therefore, the relevant authorities in all regions shall do well its work to overcome the difficulties
in electrolyte and ferroalloy industries.

(1)

The processing trade contract approved prior to the stop hereof shall be allowed to be completed. After having listed the export of
alumina and ferroalloy into the forbidden processing trade, the central government will no longer examine and approve new processing
trade control, as for the processing trade contract having been approved by the authorities in charge of commerce and recorded in
the files of the customs, they shall be allowed to be completed in accordance with the current processing trade policy.

(2)

To research some relevant tariff policy. The relevant tariff policy shall, with the combination of the formation of tariff policy
of next year, be researched and studied in the interest of the protecting domestic resources, encouraging the export of resource
products, facilitating the sound development of electrolyte aluminum and ferroalloy

(3)

To perfect the electricity price formation system of high-energy-consumption enterprises. The policy concerning differential electricity
price shall be continued. The price between different voltages class shall be widened, raising the price of low voltage class and
reducing the price of high voltage class. The direct supply and joint operation between electrolyte aluminum enterprises and electricity
ones in the areas rich in electricity shall be undertaken to reduce the cost of electrolyte aluminum. The policy concerning peak
and bottom electricity price shall be perfected and implemented to widen the price difference between electricity peak and electricity
bottom and to reduce the production cost of ferroalloy.

(4)

To perfect the credit policy. The implementation of national macro policy such industries as steel, electrolyte aluminum, coal and
ferroalloy shall be evaluated comprehensively, the industrial investment warning as well as the relevant policy direction be strengthened
so as to master the loan investment orientation and offer effective support to such enterprises and project as accords with national
industrial policy and credit principle.

(5)

To make great effort to maintain social stability. All the relevant authorities shall put into practice the relevant supporting measures
and help the enterprises to solve their difficulties and problems. It is imperative to understand and comprehend promptly the enterprise
operation, to study earnestly the problems occurred after the suspension of processing trade and submit them to the relevant higher
authorities in time.

National Development and Reform Commission

Ministry of Finance

Ministry of Commerce,

Ministry of Land and Resources

General Administration of Customs,

State Administration of Taxation

State Environmental Protection Administration

July 28, 2005



 
National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, Ministry of Land and Resources,
General Administration of Customs, State Administration of Taxation, State Environmental Protection Administration
2005-07-28

 







CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PERTINENT TAX POLICIES FOR EXPORT OF PRODUCTS WITH GOLD INGREDIENTS






Circular of the State Administration of Taxation on Pertinent Tax Policies for Export of Products with Gold Ingredients

Guo Shui Fa [2005] No.125

State taxation bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and cities specifically
designated in the state plan:

In order to further perfect tax policies for export of products with gold ingredients, after deliberation, it is hereby notified as
follows:

1.

If an export enterprise exports products with gold ingredients (including gold and platinum), policies on exemption of value added
tax shall be implemented, and corresponding amount of input tax shall no longer be refunded or credited but must be transferred to
cost for handling. Products with gold ingredients which are enpost_titled to enjoy free export policies have the following Customs commodity
codes: 28431000, 2843300010, 2843300090, 28439000, 3824909030, 3824909090, 71110000, 71123090, 71129110, 71129120, 71129210, 71129220,
71129920,7 1129990, 71131911, 7113191910, 7113191990, 71131991, 7113199910, 7113199990, 7114190010, 7114190090, 7114200010, 7114200090,
71151000, 7115901020, 7115901090, 71159090 and so on.

2.

After having exported the aforesaid products containing gold, an export enterprise must, upon presentation of certificates required
for export tax refund (exemption), apply to the tax refund department of any competent tax authority on a monthly basis for completing
the Declaration of Tax Exemption Certificate for Exporting Products Containing Gold (See Appendix 1, it shall be made out in one
pattern, two sheets; the first sheet shall be retained by any export enterprise itself and the second submitted to the tax refund
department).

3.

The tax refund department under an tax authority shall, in addition to the Declaration of Tax Exemption Certificate for Exporting
Products Containing Gold submitted by an export enterprise and required certificates, also examine pertinent electronic information
through the examination system at the same time. After finding there is no mistake, the tax refund department shall issue a Certification
of Tax Exemption for Exporting Products Containing Gold (Appendix 2, it shall be made out in one pattern, four sheets; the first
sheet shall be retained by the tax refund department, the second submitted to the tax collection department, the third submitted
by an export enterprise to the tax collection department for tax exemption declaration, and the fourth retained by the export enterprise),
and the second sheet shall be submitted to the tax collection authority for handling tax exemption formalities.

4.

An export enterprise shall, upon presenting the Certification of Tax Exemption for Exporting Products Containing Gold (the third sheet)
issued by the tax refund department, declare to the tax collection department for tax exemption. The tax collection department shall,
after checking the tax exemption declaration made by the export enterprise with the Certification of Tax Exemption for Exporting
Products Containing Gold (the second sheet) issued by the tax refund department, and finding no conformity between them, deal with
tax exemption formalities. The export enterprise shall be required to transfer the input tax amount corresponding to goods exported
free of duty to enterprise cost.

5.

In case of failing to declare to the competent taxation authority the products containing gold which are exported free of duty, within
a specified period, an export enterprise must, in accordance with pertinent provisions of the Circular of the State Administration
of Taxation on Several Issues Concerning the Administration of Tax Refund (Exemption) for Export of Goods (Guo Shui Fa [2004] No.64),
and the Circular of the State Administration of Taxation on Several Issues Concerning the Failure to Declare Tax Refund (Exemption)
of Exported Goods within the Prescribed Period (Guo Shui Fa [2005] No.68) provide output tax amount.

Tax authorities of all localities shall strengthen the connection between the tax imposition and tax refund, intensify responsibilities,
establish and perfect work system as well as the administrative measures for communication and negotiation with the tax refund department,
pay attention to the trends of exporting products containing gold and timely report to the State Administration of Taxation (Import
and Export Tax Department) if finding enterprises export products containing gold which donï¿¿ï¿¿t bear the aforementioned Customs commodity
codes; products bearing such Customs commodity codes contain no ingredients of gold and platinum; and finding other problems during
the implementation of tax exemption policies.

This Circular shall come into effect as of May 1, 2005. The specific date of implementation shall be subject to the date of export
indicated on the goods declaration for exportation (special for export tax refund). Article 3 of the Circular of the Ministry of
Finance and the State Administration of Taxation on Several Issues Concerning Gold Tax Policies (Cai Shui Zi (2002) No. 142), which
relates to tax refund of gold jewelry, and the Circular of the State Administration of Taxation on Identifying Policies Concerning
Tax Refund (Exemption) for Exporting Products with Gold Ingredients (Guo Shui Fa (2005) No.59) shall be repealed as of May 1, 2005.
Where products stated above are exported by an export enterprise before May 1, 2005, the tax authority of a place where the export
enterprise is located shall allocate and transfer such products from their places of origin by sending a letter, refund (exempt)
taxes levied upon products which are eliminated from suspicion of tax frauds, and shall not refund (exempt) taxes levied upon such
products as unable to be eliminated from the same suspicion for the time being.

Appendix:

1.

Declaration of Tax Exemption Certificate for Exporting Products Containing Gold Applicable to Export Enterprises

2.

Certificate of Tax Exemption for Exporting Products Containing Gold Applicable to Export Enterprises

State Administration of Taxation

July 29, 2005




Appendix 1

ï¿¿ï¿¿

ï¿¿ï¿¿

Appendix 1:

Declaration of Tax Exemption
Certificate for Exporting Products Containing Gold Applicable to Export
Enterprises

ï¿¿ï¿¿

ï¿¿ï¿¿ï¿¿ï¿¿Customs code for enterprise:

ï¿¿ï¿¿ï¿¿ï¿¿Taxpayer’s identification code             ï¿¿ï¿¿ 
   Taxable period (MM/YY):    
ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿        
Unit: yuan

No.

Export Invoice No.

Export Declaration No.

Date of Export

Agency Certificate No.

Verification and Writing-off Form No.

Exported Commodity Code

Name of Exported Commodity

Quantity of Exported Commodity

Export Sales Volume

Remark

USD

RMB

1

2

3

4

5

6

7

8

9

10

11

12

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Total

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Export enterprise

ï¿¿ï¿¿

ï¿¿ï¿¿

Examination opinions given by the tax
authority in charge of export tax refund

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Tax clerk:                                          

Responsible person:(official seal)

                                  

(MM/DD/YY)

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Handling
person:                           

                               

(MM/DD/YY)

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Responsible person:(official seal)

                                 

(MM/DD/YY)

ï¿¿ï¿¿ï¿¿ï¿¿Note: This Declaration Form is made out
in duplication and completed by an export enterprise, the first one of which
shall be
retained by the export enterprise, and the second declared by the
export enterprise to the tax authority.

ï¿¿ï¿¿

Appendix 2:

Certificate of Tax Exemption for
Exporting Products Containing Gold Applicable to Export Enterprises

ï¿¿ï¿¿

ï¿¿ï¿¿ï¿¿ï¿¿State taxation bureau, _____ Company
(Customs code: ______, and Taxpayerï¿¿ï¿¿s identification code:________)  Where the following
products containing gold are exported, after
examination and approval, the value added tax shall be exempted upon
exportation,
and the relevant input tax amount shall be transferred out.

ï¿¿ï¿¿ï¿¿ï¿¿Taxable
period (MM/YY):                                         
Unit: RMB






No.

Export Invoice No.

Export Declaration No.

Date of Export

Agency Certificate No.

Verification and Writing-off Form No.

Exported Commodity Code

Name of Exported Commodity

Quantity of Exported Commodity

Export Sales Volume

Remark

USD

RMB

1

2

3

4

5

6

7

8

9

10

11

12

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Total

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Examination opinions given by the tax
authority in charge of export tax refund

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Preliminary
examiner:                   

Responsible
person:(official seal)

                              

(MM/DD/YY)

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Re-examiner:                            

                        

(MM/DD/YY)

ï¿¿ï¿¿

ï¿¿ï¿¿

ï¿¿ï¿¿

Responsible person:(official seal)

REGULATIONS ON THE ADMINISTRATION OF PRECURSOR CHEMICALS






the State Council

Order of the State Council of the People’s Republic of China

No. 445

The Regulations on the Administration of Precursor Chemicals, which were adopted at the 102nd executive meeting of the State Council
on August 17th, 2005, are hereby promulgated and shall go into effect as of November 1st, 2005.

the Premier of the State Council Wen Jiabao

August 26, 2005

Regulations on the Administration of Precursor Chemicals

Chapter I General Provisions

Article 1

For the purpose of strengthening the administration of precursor chemicals, regulating the production, distribution, purchase, transportation
and import and export of precursor chemicals, preventing precursor chemicals from being used in manufacturing drugs and maintaining
the economic and social order, the present Regulations are formulated.

Article 2

The state adopts the classified administration and licensing system to the production, distribution, purchase, transportation and
import and export of precursor chemicals.

The precursor chemicals are classified into three categories. Category I includes the major materials that can be used for producing
drugs. Categories II and III include the chemical agents that can be used for producing drugs. The detailed classification and types
of precursor chemicals are shown in the annex of the present Regulation.

In case the classification or types of precursor chemicals need to be adjusted, the public security department of the State Council
shall, in conjunction with the supervisory and administrative department of food and drugs, the supervisory and administrative department
of safe production, the competent commerce department, the competent health department of the State Council and the General Administration
of Customs, put forward a proposal and report it to the State Council for approval.

In case the people’s government of the province, autonomous region or municipality directly under the Central Government deems it
necessary to adjust the classification of precursor chemicals or to add any other type other than those as prescribed in the present
Regulations within its administrative jurisdiction, it shall propose this to the public security department of the State Council.
The public security department of the State Council shall put forward a proposal, and shall, in conjunction with the relevant competent
administrative departments of the State Council, report it to the State Council for approval.

Article 3

The public security department, the supervisory and administrative department of food and drugs, the supervisory and administrative
department of safe production, the competent commerce department, the competent health department, the General Administration of
Customs, the competent pricing department, the competent railway department, the competent communications department, the administrative
department for industry and commerce and the competent environmental protection department of the State Council shall, within the
scope of their respective authority, be responsible for the relevant administration of precursor chemicals throughout the country.
The relevant competent administrative departments of all the people’s governments at or above the county level shall, within the
scope of their respective authority, be responsible for the relevant administration of the precursor chemicals within their respective
administrative jurisdictions.

All the people’s governments at or above the county level shall strengthen their leadership in the administration of precursor chemicals,
and coordinate to timely solve the problems arising from the administration of precursor chemicals.

Article 4

The product name (including the scientific name and the common name), chemical molecular formula and ingredients of the chemical liable
to producing drugs shall be clearly indicated on it packaging and instructions.

Article 5

The production, distribution, purchase, transportation and import and export of precursor chemicals shall comply with the relevant
provisions of the present Regulations. And if the precursor chemicals belong to pharmaceuticals or dangerous chemicals, the relevant
provisions of the laws and other administrative regulations on pharmaceuticals and dangerous chemicals shall be complied with as
well.

It’s prohibited to smuggle or illegally produce, operate, purchase, transfer or transport any chemical liable to producing drugs.

It’s prohibited to trade precursor chemicals in cash or kind, however, an individual may legally purchases the pharmaceutical preparations
of precursor chemicals under the item of pharmaceuticals in Category I or the precursor chemicals in Category III.

An entity that produces, distributes, purchases, transports, imports or exports the precursor chemicals shall establish an internal
management system for precursor chemicals.

Article 6

The state encourages informants to inform the relevant competent administrative departments, such as the public security organs, of
any illegal activities related to precursor chemicals. The department that receives a tip-off shall keep secret the relevant informant.
If the tip-off turns out to be true, the people’s government at or above the county level and the relevant competent administrative
department shall award the relevant informant.

Chapter II Management of Production and Distribution

Article 7

An entity that applies for production of precursor chemicals in Category I, shall satisfy the following conditions and may start production
only after it has obtained the production license upon the examination and approval of the competent administrative department as
prescribed in Article 8 of the present Regulations :

(1)

Having been legally registered as a production enterprise of chemical products or pharmaceuticals;

(2)

Having the production equipments, warehouse facilities and pollutant disposal facilities that conform to the state standards;

(3)

Having a strict safe production management system and a prepared plan for environmental emergencies;

(4)

The legal representative and the technical and management personnel of the enterprise having the relevant knowledge of safe production
and precursor chemicals, and having no record of drug-related crimes.

(5)

Other conditions as prescribed by laws, regulations and rules.

An entity that applies for production of precursor chemicals under the item of pharmaceuticals in Category I shall not only satisfy
the above-mentioned conditions, but also install, in key areas such as warehousing places, the video monitors and the alarm devices
networked with the public security organ.

Article 8

An application for the production of precursor chemicals under the item of pharmaceuticals in Category I shall be subject to the examination
and approval of the supervisory and administrative department of food and drugs of the State Council. An application for the production
of precursor chemicals under any item in Category I other than pharmaceuticals shall be subject to the examination and approval of
the supervisory and administrative department of safe production of the people’s government of the province, autonomous region or
municipality directly under the Central Government.

The competent administrative departments as prescribed in the preceding paragraph shall, within 60 days as of the day of receipt of
an application, examine the application materials as submitted by the applicant. If the applicant satisfies the relevant provisions,
it shall issue a production license to the applicant or give an indication on the relevant production license obtained by the relevant
enterprise. In the case of disapproval, it shall notify, in writing, the applicant of the reasons therefore.

When examining the application materials for the production license of precursor chemicals in Category I, the competent administrative
departments may, where necessary, organize an on-site inspection and expert review.

Article 9

An entity that applies for the distribution of precursor chemicals in Category I, shall satisfy the following conditions and may starts
business operation only after it has obtained the distribution license upon the examination and approval of the competent administrative
department as prescribed in Article 10 of the present Regulations:

(1)

Having been legally registered as a distribution enterprise of chemical products or pharmaceuticals;

(2)

Having a business place that conforms to the provisions of the state, and if the precursor chemicals need be stored or kept, having
the warehouse facilities that conform to the technical standards of the state as well;

(3)

Having an management system and a sound sales network for the distribution of precursor chemicals;

(4)

The legal representative and the technical and management personnel of the enterprise having the relevant knowledge of precursor chemicals
and having no record of drug-related crimes; and

(5)

Other conditions as prescribed by laws, regulations and rules.

Article 10

An application for the distribution of the precursor chemicals under the item of pharmaceuticals in Category I shall be subject to
the examination and approval of the supervisory and administrative department of food and drugs of the State Council. An application
for the distribution of the precursor chemicals under any item in Category I other than pharmaceuticals shall be subject to the examination
and approval of the supervisory and administrative department of safe production of the people’s government of the province, autonomous
region or municipality directly under the Central Government.

The competent administrative departments as prescribed in the preceding paragraph shall, within 30 days as of the day of receipt of
an application, examine the application materials as submitted by the applicant. Where the applicant satisfies the relevant provisions,
it shall issue a distribution license to the applicant or give an indication on the relevant business license that has been obtained
by the relevant enterprise. In the case of disapproval, it shall notify, in writing, the applicant of the reasons therefore.

When conduct an examination on the application materials for distribution license for the precursor chemicals in Category I, the competent
administrative departments may, where necessary, organize an on-site inspection.

Article 11

A production enterprise, which has obtained the production license for precursor chemicals in Category I or has gone through the record-keeping
formalities for the production of precursor chemicals in Category II or III under the provisions of paragraph 1 of Article 13 of
the present Regulations, may distribute the precursor chemicals it produces. However, where an enterprise is to establish sales outlets
outside its factory for the distribution of precursor chemicals in Category I, it shall obtain the distribution license in accordance
with the provisions of the present Regulations.

The single preparations of precursor chemicals under the item of pharmaceuticals in Category I shall be distributed by the designated
distribution enterprise of narcotic drugs and may not be retailed.

Article 12

An enterprise that has obtained the production or distribution license for precursor chemicals in Category I shall, upon the strength
of its production or distribution license, register the alteration of its business scope with the administrative department for industry
and commerce . No enterprise may produce or distribute the precursor chemicals in Category I unless the alteration of business scope
has been registered.

Where the production or distribution license for precursor chemicals in Category I is revoked pursuant to the law, the competent administrative
department shall, within 5 days after making the decision on revocation, inform the administrative department for industry and commerce.
The enterprise whose license has been revoked shall timely register the alteration of its business scope or nullify its registration
with the administrative department for industry and commerce.

Article 13

An enterprise that produces the precursor chemicals in Category II or III shall, within 30 days as of the day of starting production,
file such information as the type and quantity for record, with the supervisory and administrative department of safe production
of the municipal people’s government of the districted city where it is located.

An enterprise that distributes the precursor chemicals in Category II shall, within 30 days as of the day of starting distribution,
file such information as the type, quantity and major flow direction for record, with the supervisory and administrative department
of safe production of the municipal people’s government of the districted city where it is located. An enterprise that distributes
the precursor chemicals in Category III shall, within 30 days as of the day of starting distribution, file such information as the
type, quantity and major flow direction for record, with the supervisory and administrative department of safe production of local
people’s government of the county where it is located.

The competent administrative departments as prescribed in the preceding two paragraphs shall issue the record-keeping certification
on the very day when it receives the materials submitted for record.

Chapter III Administration of Purchase

Article 14

An entity that applies for purchasing the precursor chemicals in Category I shall submit the following certificates to the competent
administrative department as prescribed in Article 15 of the present Regulations for examination and approval, and obtain the purchase
license therefrom upon approval:

(1)

As for a distribution enterprise, the business license and the certification of its need for legal use and ;

(2)

As for other organizations, the certificate of registration (approval document of establishment) and the certification of its need
for legal use .

Article 15

With regard to the application for purchasing precursor chemicals under the item of pharmaceuticals in Category I, it shall be subject
to the examination and approval of the supervisory and administrative department of food and drugs of the people’s government of
the province, autonomous region or municipality directly under the Central Government where the applicant is located. With regard
to the application for purchasing precursor chemicals under any item in Category I other than pharmaceuticals, it shall be subject
to the examination and approval of the public security organ of the people’s government of the province, autonomous region or municipality
directly under the Central Government where the applicant is located.

The competent administrative departments as prescribed in the preceding paragraph shall, within 10 days as of the day of receipt of
an application, examine the application materials and certificates as submitted by the applicant. Where the applicant satisfies the
relevant provisions, it shall issue a purchase license to the applicant; in the case of disapproval, it shall notify, in writing,
the applicant of the reasons therefore.

When examining the application materials for purchasing precursor chemicals in Category I, the competent administrative departments
may, where necessary, conduct an on-site inspection.

Article 16

Where a medical institution, which holds the seal card for purchasing narcotic and psychotropic pharmaceuticals in Category I, purchases
the precursor chemicals under the item of pharmaceuticals in Category I, it need not apply for the purchase license for precursor
chemicals in Category I.

No individual may purchase any chemical liable to producing drugs in Category I or II.

Article 17

An entity that is to purchase any chemical liable to producing drugs in Category II or III shall, prior to the purchase, file an information
about the type and quantity in demand for record, with the public security organ of the local people’s government at the county level.
Any purchase of potassium permanganate of small quantity by an individual for self-use need not be put on record.

Article 18

A distribution entity, when selling the precursor chemicals in Category I, shall examine the purchase license and the proof of identity
of the handling person. In the case of an entrusted purchase, it shall examine the power of attorney as held by the purchaser as
well.

A distribution entity may sell the precursor chemicals in Category I only if no error is found through the examination and after the
photocopies of the above-mentioned materials are kept. Upon discovery of any suspicious circumstance, it shall immediately report
it to the local public security organ.

Article 19

A distribution entity shall maintain a ledger for the sale of precursor chemicals and faithfully record the varieties, quantities,
date and purchasers on the precursor chemicals sold. The sales ledger and photocopies of certification materials shall be preserved
for 2 years for future reference and inspection.

The sales information of precursor chemicals in Category I shall be submitted, within 5 days as of the day of sale, to the local public
security organ for record. An entity that uses the precursor chemicals in Category I shall maintain a use ledger and preserve it
for 2 years for future reference and inspection.

The sales information of precursor chemicals in Category II or III shall be submitted, within 30 days as of the day of sale, to the
local public security organ for record.

Chapter IV Administration of Transportation

Article 20

Where the transportation of precursor chemicals in Category I is across two or more the administrative areas at the level of districted
cities (or across boundaries of a municipality in the case of municipalities directly under the Central Government) or across two
or more administrative areas at the level of counties within the key areas where the anti-drug situation is severe, which are determined
by the public security department of the State Council, it shall be subject to the examination and approval of the public security
organ of the municipal people’s government of the departure city which is divided into districts. The transportation of precursor
chemicals in Category II shall be subject to the examination and approval of the public security organ of the people’s government
at the level of the departure county. No transportation may be conducted until the transportation license for precursor chemicals
is granted upon examination.

The transportation of precursor chemicals in Category III shall, prior to departure, be flied for record with the local public security
organ of the people’s government at the level of county where the transportation starts; and the public security organ shall issue
the record-keeping certification at the very day when it receives the materials submitted for record.

Article 21

As for an application for the transportation of precursor chemicals, the contract on purchase and sale of precursor chemicals shall
be submitted. If the owner is an enterprise, its business license shall be submitted. If the owner is any other organization, the
certificate of registration (approval document of establishment) shall be submitted. If the owner is an individual, his identity
certificate shall be submitted. The individual who directly carries out the transportation shall submit his identity certificate.

The public security organ shall, within 10 days as of the day of receipt of the application for the transportation license for precursor
chemicals in Category I, or within 3 days as of the day of receipt of the application for the transportation license for precursor
chemicals in Category II, examine the application materials submitted by an applicant. If the applicant satisfies the relevant provisions,
it shall issue the transportation license to the applicant. In the case of disapproval, it shall notify, in writing, the applicant
of the reasons therefore.

When necessary, an on-site examination may be conducted in examining the application materials for the transportation license for
precursor chemicals in Category I .

Article 22

Where the transportation of precursor chemicals in Category I is approved, a transportation license valid for once shall be issued.

Where the transportation of precursor chemicals in Category II is approved, a transportation license valid for 3 months shall be issued;
and where the transportation condition is safe and sound for 6 months, a transportation license valid for 12 months shall be issued.

Such matters as the type, quantity, destination, owner and consignee, and the carrier of the precursor chemicals to be transported
as well as the type of the transportation license shall be clearly indicated in the transportation license for precursor chemicals.

Article 23

For the transportation of the ephedrine samples of less than 100g for the purpose of teaching or scientific research, or the small
package ephedrine as used by medical institutions for the preparation and prescription, or the ephedrine of not more than 60, 000
pills or 15, 000 injection preparations as purchased by a medical institution or an narcotic drugs distributor, where the owner or
carrier holds the purchase license or the allocating list of narcotic drugs as obtained according to law, it need not apply for the
transportation license for precursor chemicals.

Article 24

When accepting the consignment from a owner, a carrier shall examine the transportation license or record-keeping certification provided
by the owner, and verify whether or not the freight is consistent with the type of precursor chemicals and other information that
are specified in the transportation license or the record-keeping certification. If it is found to be inconsistent, no goods may
be transported.

In the transportation of precursor chemicals, the transportation personnel shall carry with them the transportation license or the
record-keeping certification throughout the transportation period from the departure. The public security organ shall conduct inspections
during the course of transportation of precursor chemicals.

The transportation of precursor chemicals shall comply with the provisions of the State on freight transportation.

Article 25

For the need of treatment of diseases, a patient, his near relative or the person as entrusted by the patient may, upon the strength
of the medical diagnosis issued by a medical institution and his proof of identity, carry with him the medical preparation of precursor
chemicals under the item of pharmaceuticals in Category I, provided it does not exceed the maximum dosage in a single medical prescription.

Chapter V Administration of Import and Export

Article 26

Anyone who applies for the import or export of precursor chemicals shall submit the following materials and may engage in the import
or export of precursor chemicals only after it has obtained the import or export license upon the examination and approval of the
competent commerce department of the State Council or the competent commerce department of the province, autonomous region or the
municipality directly under the Central Government as authorized thereby:

(1)

The photocopy of the registration certification of the foreign trade operator (the certification of annual joint examination for foreign-funded
enterprises);

(2)

The duplicate of the business license;

(3)

The licenses or the record-keeping certification for production, distribution, or purchase of precursor chemicals;

(4)

The duplicate of the import or export contract (agreement); and

(5)

The identity certificate of the handling person.

Anyone who applies for the export license of precursor chemicals shall, in addition, submit the certification of legal use of precursor
chemicals as issued by the competent governmental department of the region where the importer is located or the guaranty documents
as provided by the importer on the legal use of precursor chemicals.

Article 27

The competent commerce department that accepts the application for the import and export of precursor chemicals shall, within 20 days
as of the day of receipt of the application materials, examine the application materials and may, when necessary, conduct on-site
inspection. If the applicant satisfies the relevant provisions, the competent commerce department shall issue the import or export
license. If no license is granted, it shall notify, in writing, the applicant of the reasons therefore.

As for the import of precursor chemicals under the item of pharmaceuticals in Category I, the relevant competent commerce department
shall obtain the consent of the supervisory and administrative department of food and drugs of the State Council before making any
decision on licensing,.

Article 28

Ephedrine and other precursor chemicals falling within the scope of special control shall be imported or exported only by the enterprises
as jointly verified by the competent commerce department of the State Council and the relevant departments of the State Council.

Article 29

The state adopts an international check-up system to the import and export of precursor chemicals. The catalogue of precursor chemicals
subject to international check-up and the specific measures for check-up shall be formulated and promulgated by the competent commerce
department of the State Council in conjunction with the public security department of the State Council.

The time used for the international examination may not be included into the time limit for licensing.

For the export of precursor chemicals and the chemicals other than those as provided by the present Regulations to a country or area
where the illicit manufacture or trafficking of drugs is severe, other control measures may be taken in addition to the international
check-up measures. The concrete measures shall be formulated and promulgated by the competent commerce department of the State Council
in conjunction with the public security department of the State Council, the General Administration of Customs and other relevant
departments.

Article 30

As for the import, export, transition, transshipment or through transportation of precursor chemicals, declaration shall be faithfully
made to the customs and the import or export license shall be submitted thereto. The customs shall handle the clearance formalities
according to the relevant license.

The provisions of the preceding paragraph shall be applicable to the import and export of precursor chemicals between overseas areas
and the areas under special supervision of the customs or bonded areas, such as bonded zones and export processing zones.

As for the import and export of precursor chemicals between the areas within the territory of China and the areas under special supervision
of the customs or bonded areas, such as bonded zones and export processing zones, or between the aforesaid areas under special supervision
of the customs and bonded zones, it is not required to apply for the import or export license of precursor chemicals.

As for the import of precursor chemicals under the item of pharmaceuticals in Category I, the customs clearance notice of imported
pharmaceuticals as issued by the supervisory and administrative department of food and drugs shall be submitted in addition.

Article 31

The pharmaceutical preparations of precursor chemicals under the item of pharmaceuticals in Category I or potassium permanganate carried
by individuals entering and exiting the territory of China shall be limited to a reasonable amount for self-use and shall be subject
to the supervision of the customs.

Any individual entering and exiting the territory of China may not carry with him any precursor chemicals other than those as set
out in the preceding paragraph.

Chapter VI Supervision and Inspection

Article 32

The public security organs, the supervisory and administrative departments of food and drugs, the supervisory and administrative departments
of safe production, the competent commerce departments, the competent health department, the competent pricing departments, the competent
railway departments, the competent communications departments, the administrative departments for industry and commerce, the competent
environmental protection departments of the people’s government above the county level as well as the customs shall, in accordance
with the present Regulations and the provisions of the relevant laws and administrative regulations, and within their respective
authorities, strengthen the supervision and inspection of the manufacture, distribution, purchase, transportation, price and import
and export of precursor chemicals, and shall, according to law, investigate into and deal with illegal manufacture, distribution,
purchase and transportation of precursor chemicals or any smuggling of precursor chemicals.

When carrying out the supervision and inspection of precursor chemicals, the competent administrative departments as prescribed in
the preceding paragraph may, according to law, inspect the scene, consult and copy the relevant materials, record the relevant information,
detain the relevant evidence materials and illicit articles, and may seal up the relevant place temporarily when necessary.

Any entity or individual under inspection shall faithfully provide the relevant information, materials and articles and may not refuse
to provide and conceal them.

Article 33

The precursor chemicals as captured and seized according to law shall be preserved and reclaimed in light of different conditions
of the precursor chemicals under the supervision of the public security organ or the administrative environmental protection department
of the people’s government of the province, autonomous region, municipality directly under the Central Government or the districted
city or under the supervision of the customs, or shall, in accordance with the relevant provisions of laws and administrative regulations
on environmental protection, be destroyed by an qualified entity under the supervision of the administrative environmental protection
department. In particular, the precursor chemicals under the item of pharmaceuticals in Category I as captured and seized shall be
all destroyed.

Where an entity or individual that violates the relevant provisions on the precursor chemicals is unable to afford the expenses for
the prevention, reclamation or destruction of the precursor chemicals concerned, such expenses shall be paid from the income as derived
from the reclamation or shall be allotted in the anti-drug expenses of the relevant competent administrative department.

Article 34

Where precursor chemicals are lost, stolen or robbed, the entity concerned shall immediately report the case to the local public security
organ and, at the same time, to the supervisory and administrative department of food and drugs, the supervisory and administrative
department of safe production, the competent commerce department or the competent health department of the local people’s government
at the county level. The public security organ that receives the report shall immediately file the case and conduct investigations
and shall report it to the public security organ at a higher level. The relevant competent administrative department shall report
the case level by level and shall coordinate with the public security organ in the investigation.

Article 35

The relevant competent administrative department shall notify the relevant public security organ and the administrative department
for industry and commerce of any issuance or revocation of the license of precursor chemicals ac

OFFICIAL REPLY OF THE PEOPLE’S BANK OF CHINA CONCERNING THE ISSUANCE OF FINANCIAL BONDS BY SHANGHAI PUDONG DEVELOPMENT BANK

Official Reply of the People’s Bank of China concerning the Issuance of Financial Bonds by Shanghai Pudong Development Bank

Yin Fu [2005] No. 55

Shanghai Pudong Development Bank,

We have received your Request for Instructions concerning the Issuance of Financial Bonds by Shanghai Pudong Development Bank in the
National Inter-bank Bond Market (Pu Yin Fa No. 197 [2005] ). In accordance with such relevant provisions as the provisions of the
Measures for the Administration of the Issuance of Financial Bonds in the National Inter-bank Bond Market (Zhong Guo Ren Min Yin
Hang Ling [2005] No. 1), we hereby reply as follows:

1.

Your Bank is allowed to issue 12 billion Yuan of financial bonds in the national inter-bank bond market.

2.

Your Bank shall do a good job in the bond issuance and the disclosure of relevant information in accordance with the provisions in
the Measures for the Administration of the Issuance of Financial Bonds in the Nation-wide Inter-bank Bond Market.

3.

Your bank shall, after the issuance of financial bonds is completed, submit the relevant bond issuance work to the People’s Bank of
China within 10 workdays.

The People’s Bank of China

July 29, 2005

 
The People’s Bank of China
2005-07-29

 




MEASURES FOR THE ADMINISTRATION OF THE CIRCULATION OF SECOND-HAND AUTOMOBILES

the Ministry of Commerce, the Ministry of Public Security, the State Administration for Industry and Commerce and the State Administration
of Taxation

Measures for the Administration of the Circulation of Second-hand Automobiles

Order No. 2 [2005] of the Ministry of Commerce, the Ministry of Public Security, the State Administration for Industry and Commerce
and the State Administration of Taxation

August 29, 2005

Chapter I General Provisions

Article 1

In order to intensify the administration of the circulation of second-hand automobiles, regulate the business operations of second-hand
automobiles, guarantee the legitimate interests and rights of both parties to transactions of second-hand automobiles and facilitate
the sound development of the circulation of second-hand automobiles, the present Measures are formulated in accordance with the relevant
laws and administrative regulations of the state.

Article 2

The present Measures shall be applicable to the business operations of second-hand automobiles and the activities involving second-hand
automobiles within the territory of China.

The term “second-hand automobiles” as mentioned in the present Measures refers to the automobiles that are traded and whose ownership
is transferred in the duration from the completion of the registration formalities to the date when the state compulsory discarding
standards are satisfied, including three-wheeled automobiles, low-speed motor trucks (former agricultural transport vehicles, hereinafter
the same), trailers and motorcycles.

Article 3

The term “second-hand automobile market” refers to a business place that is established under the law and where centralized transactions
of second-hand automobiles are conducted and the relevant services are provided for both parties to a transaction.

Article 4

The term “business operator of second-hand automobiles” refers to an enterprise that has gone through the registration formalities
with the administrative department of industry and commerce under the law and undertakes the retail, auction, brokerage, appraisal
and evaluation of second-hand automobiles.

Article 5

The term “business operations of second-hand automobiles” refers to such activities as retail, auction, brokerage, appraisal and evaluation
of second-hand automobiles.

(1)

The term “retail of second-hand automobiles” refers to the business activities whereby a retail enterprise of second-hand automobiles
purchases and sells second-hand automobiles;

(2)

The term “auction of second-hand automobiles” refers to the business activities whereby an auction enterprise of second-hand automobiles
transfers a second-hand automobile to a bidder that offers the highest price through public bidding;

(3)

The term “brokerage of second-hand automobiles” refers to the business activities whereby a brokerage entity of second-hand automobiles,
for the purpose of collecting commissions, engages in such business activities as intermediary, agency, and brokerage to promote
other person’s transaction of second-hand automobiles; and

(4)

The term “appraisal and evaluation of second-hand automobiles” refers to the business activities whereby an appraisal and evaluation
organization of second-hand automobiles appraises and evaluates the technical qualities of a second-hand automobile and the value
thereof.

Article 6

The term “direct transaction of second-hand automobiles” refers to a transaction whereby the owner of a second-hand automobile sells
his automobile directly to a buyer without the assistance of any retail enterprise, auction enterprise or brokerage entity. Any direct
transaction of second-hand automobiles shall be conducted in the second-hand automobile market.

Article 7

The administrative department of commerce, the administrative department of industry and commerce and the taxation department of the
State Council shall, pursuant to their respective duties, take charge of the relevant supervision and administration work concerning
the circulation of second-hand automobiles.

The provincial-level administrative department of commerce (hereinafter referred to as the administrative department of commerce at
the provincial level), the administrative department of industry and commerce and the taxation department of the provinces, autonomous
regions and municipalities directly under the Central Government and the city under separate state planning shall, pursuant to their
respective duties, take charge of the relevant supervision and administration work concerning the circulation of second-hand automobiles
within their jurisdiction.

Chapter II Requirements of and Procedures for Establishment

Article 8

A business operator of a second-hand automobile market, a retail enterprise and brokerage entity of second-hand automobiles shall
possess the qualification of an enterprise legal-person and shall go through the registration formalities with the administrative
department of industry and commerce according to law.

Article 9

An appraisal and evaluation entity of second-hand automobiles shall satisfy the following requirements:

(1)

Being an independent intermediary organization;

(2)

Having a fixed business place and the necessary facilities to undertake its business operations;

(3)

Having 3 or more professionals engaged in the appraisal and evaluation of second-hand automobiles (including the appraisers of old
motor vehicles who have acquired a professional qualification certificate of the state prior to the implementation of the present
Measures); and

(4)

Having sound rules and regulations.

Article 10

The establishment of an appraisal and evaluation entity of second-hand automobiles shall conform to the following procedures:

(1)

The applicant shall file a written application with the administrative department of commerce at the provincial level where the appraisal
and evaluation entity of second-hand automobiles is to be located and submit the relevant materials as prescribed in Article 9 of
the present Measures as well;

(2)

The administrative department of commerce at the provincial level shall, within 20 workdays from the date of receipt of all the application
materials, decide whether or not to grant an approval and shall, in the case of approval, issue the Approval Certificate of Appraisal
and Evaluation Entity of Second-hand Automobiles; in the case of disapproval, give an explanation; and

(3)

The relevant applicant shall go through the registration formalities with the administrative department of industry and commerce upon
the strength of the Approval Certificate of Appraisal and Evaluation Entity of Second-hand Automobiles.

Article 11

An applicant who applies for establishing a foreign-funded second-hand automobile market, retail enterprise, brokerage entity, or
appraisal and evaluation entity shall submit to the administrative department of commerce at the provincial level the relevant materials
that comply with the provisions of Articles 8 and 9 of the present Measures, the Measures for the Administration of Foreign Investment
in the Commercial Field, and other relevant laws on foreign investment. The administrative department of commerce at the provincial
level shall, after the preliminary examination, report them to the administrative department of commerce of the State Council within
1 month from the date of receipt of all the application materials. Where a Chinese party to the joint venture is an enterprise group
specifically designated in the state plan, the application materials may be directly reported to the administrative department of
commerce of the State Council. The administrative department of commerce of the State Council shall, within 3 months from the date
of receipt of all the application materials, decide whether or not to grant an approval jointly with the administrative department
for industry and commerce of the State Council, and shall, in the case of approval, issue an Approval Certificate of Foreign-funded
Enterprises or a new one; in the case of disapproval, give an explanation.

The relevant applicant shall go through the registration formalities with the administrative department for industry and commerce
upon the strength of the Approval Certificate of Foreign-funded Enterprises.

Article 12

The establishment of an auction enterprise of second-hand automobiles (including a foreign-funded auction enterprise of second-hand
automobiles) shall comply with the relevant provisions of the Auction Law of the People’s Republic of China and the Measures for
the Administration of Auction, and shall be handled according to the procedures as prescribed by the Measures for the Administration
of Auction.

Article 13

The merger and acquisition of any second-hand automobile market or operational subject by any foreign investor or the expansion of
business scope of an existing foreign-funded enterprise to engage in second-hand automobiles shall be handled according to the procedures
as prescribed by Articles 11 and 12.

Chapter III Behavioral Standards

Article 14

The operator of second-hand automobile market and operational subject of second-hand automobiles shall conduct its business operations
and pay taxes according to law, observe the commercial ethics and shall be subject to the supervision and examination as carried
out according to law.

Article 15

A seller of second-hand automobiles shall have the ownership or right to dispose of the automobile. An operator of second-hand automobile
market and an operational subject of second-hand automobiles shall affirm the identity certificate of the relevant seller, number
plate of the vehicle, the Registration Certificate of Motor Vehicles, the Driving License of Motor Vehicles, the effective mark of
passing the security technical examination, the policy of insurance of the vehicle, and the payment certificate of relevant taxes
and fees.

A state organ or state-owned enterprise or public institution shall, when selling or entrusting an auction of a vehicle thereof, hold
the certification regarding asset treatment as produced by this entity or its superior entity.

Article 16

Anyone who sells or auctions a vehicle of which he has no ownership or right to disposal shall be subject to relevant legal liabilities.

Article 17

A seller of second-hand automobiles shall provide the authentic information about the use, repair, accident, and examination, whether
the registration of mortgage has been handled, whether the taxes and fees have been paid as well as the time to be discarded. Where
a buyer fails to go through the formalities for the registration of transfer due to any concealing or fraud as committed by a seller,
the seller concerned shall accept the unconditional return of the vehicle and shall refund the vehicle purchase price, etc.

Article 18

A retail enterprise of second-hand automobiles shall, when selling a second-hand automobile, provide the quality guaranty as well
as the after service, which shall be clearly indicated in its business place.

Article 19

A contract shall be concluded for a second-hand automobile transaction. The model contract shall be prepared by the administrative
department for industry and commerce of the State Council.

Article 20

Where an owner of a second-hand automobile entrusts any other person to handle the sale of his vehicle, the owner shall conclude a
power of attorney with the entrusted person.

Article 21

Where a brokerage entity of second-hand automobiles is entrusted to purchase any second-hand automobile, both parties concerned shall
satisfy the following requirements:

(1)

The entrusting party shall provide a legal identity certification to the brokerage entity of second-hand automobiles;

(2)

The brokerage entity of second-hand automobiles shall choose the vehicle in light of the requirements of the entrusting party and
shall inform him of the market information;

(3)

Where a brokerage entity of second-hand automobiles accepts the entrustment for purchase, both parties shall conclude a contract;
and

(4)

The entrusting party shall bear the relevant expenses as incurred from the appraisal and evaluation of a vehicle that is conducted
by a brokerage entity of second-hand automobiles on behalf of and according to the requirements of the entrusting party.

Article 22

Where a transaction of second-hand automobile is concluded, the seller shall deliver to the buyer the vehicle, and the number plate,
legal certification and warrant of the vehicle in a timely manner. The legal certification and warrant of a vehicle shall mainly
include:

(1)

A Registration Certificate of Motor Vehicles;

(2)

A Driving Certificate of Motor Vehicles;

(3)

The valid mark of passing the security technical examination;

(4)

The proof of payment of vehicle purchase tax;

(5)

The payment certificate of expenses for highway maintenance;

(6)

The payment certificate of vehicle and vessel usage taxes; and

(7)

The policy of insurance of the vehicle.

Article 23

The following vehicles are prohibited from any retail, sale and purchase, auction or brokerage:

(1)

A vehicle that has been discarded as useless or has reached the state standard of compulsory discarding;

(2)

A vehicle under the supervision of the customs that is being mortgaged or for which the seller fails to obtain the approval of the
customs for transaction;

(3)

A vehicle that is under seizure or being mortgaged by the people’s court, the people’s procuratorate or the administrative department
of law enforcement;

(4)

A vehicle that is obtained by such illegal criminal means as theft, robbery and fraud;

(5)

A vehicle whose engine number, vehicle identification number or frame number fails to comply with the numbers registered, or has any
trace of alteration;

(6)

A vehicle that comes from any smuggle or is illegally assembled;

(7)

A vehicle without the certificate or warrant as prescribed in Article 22 ;

(8)

A vehicle that is not registered with the administrative department of public security within the jurisdiction; or

(9)

A vehicle that is prohibited from operation by any law or administrative regulation of the state.

Where an operator of second-hand automobile market or a business operator of second-hand automobiles finds a vehicle under any of
the circumstances as prescribe in item (4), (5) or (6), he shall report it to the administrative departments of law enforcement,
such as the public security organ and the administrative department for industry and commerce.

An operator of second-hand automobile market or an operational subject of second-hand automobiles shall bear joint compensatory liabilities
and any other legal liabilities for any vehicle that is unlawfully traded.

Article 24

Where a brokerage enterprise of second-hand automobiles or an auction enterprise of second-hand automobiles sells or auctions a second-hand
automobile, it shall produce to the buyer an invoice as uniformly printed under the supervision of the taxation authority.

As for a direct transaction of second-hand automobile or a transaction of second-hand automobile made through a brokerage of second-hand
automobiles, the operator concerned of second-hand automobile market shall produce to the buyer an invoice as uniformly printed under
the supervision of the taxation authority according to the provisions.

Article 25

Where a transaction of second-hand automobile is concluded, the present owner of the vehicle shall, in accordance with the relevant
laws and regulations, go through the formalities for the registration of transfer upon the strength of the invoice as uniformly printed
under the supervision of the tax authority.

Article 26

An operator of second-hand automobile market shall provide a fixed place and facilities for the operational subjects of second-hand
automobiles, and shall provide its clients with the conditions for handling such formalities as appraisal and evaluation, registration
of transfer, insurance and tax payment. A retail enterprise or a brokerage institution of second-hand automobiles shall, according
to the requirements of its clients, handle such formalities as appraisal and evaluation, registration of transfer, insurance and
tax payment on their behalf.

Article 27

The principles of free will of both parties to a transaction shall be adhered to in the appraisal and evaluation of a second-hand
automobile, which may not be conducted in a compulsory manner. Any second-hand automobile in the form of state-owned assets shall
be subject to appraisal and evaluation according to the relevant provisions of the state.

Article 28

An appraisal and evaluation entity of second-hand automobiles shall, pursuant to the principles of “being objective, authentic, impartial
and open”, carry out the business operations of appraisal and evaluation of second-hand automobiles in accordance with the laws and
regulations of the state, and produce the relevant reports on the appraisal and evaluation of vehicles; and shall bear the legal
liabilities for such contents as the appraisal on technical qualities of vehicles in the said report, including whether or not the
vehicle is involved in a case or a traffic accident.

Article 29

An appraisal and evaluation entity of second-hand automobiles and the staff thereof may, in accordance with the provisions of the
state, engage in such appraisal operations as the appraisal of a vehicle that is involved in an legal case or accident.

Article 30

The operator of second-hand automobile market and operational subjects of second-hand automobiles shall put on record the purchase
and sale, auction, brokerage and the appraisal and evaluation of second-hand automobile.

Article 31

The establishment of a second-hand automobile market or a store of a retail enterprise of second-hand automobiles shall comply with
the relevant provisions on the development of the city where it is located as well as on the urban commercial development.

Chapter IV Supervision and Administration

Article 32

The principles of breaking monopoly, encouraging competition, promoting development and being fair, impartial and open shall be adhered
to in the supervision and administration of second-hand automobiles.

Article 33

An archival filing system of the operators of second-hand automobile markets and operational subjects of second-hand automobiles shall
be established. The operators of second-hand automobile markets and operational subjects of second-hand automobiles that have registered
with the administrative department for industry and commerce according to law and obtained the business license shall, within 2 months
as of obtaining their business license, file for record with the administrative department of commerce at the provincial level, The
administrative department of commerce at the provincial level shall report the filing of the operators of second-hand automobile
markets and operational subjects of second-hand automobiles to the administrative department of commerce of the State Council on
a periodical base.

Article 34

A reporting and publicity system of information on the circulation of second-hand automobiles shall be established and brought into
perfection. An operator of second-hand automobile market and an operational subject of second-hand automobiles shall, through the
local administrative department of commerce, periodically report such information as the volume and value of trade to the administrative
department of commerce at the provincial level, which shall gather the aforesaid information and report it to the administrative
department of commerce of the State Council. The administrative department of commerce of the State Council shall publicize the information
on the circulation of second-hand automobiles to the society.

Article 35

The administrative department of commerce and the administrative department for industry and commerce shall, pursuant to their respective
duties, take effective measures to intensify the administration and supervision of the operators of second-hand automobile market
and the operational subjects of second-hand automobiles, investigate into and punish irregularities, maintain the market order, and
safeguard the legitimate rights and interests of consumers.

Article 36

The administrative department for industry and commerce of the State Council shall, in conjunction with the administrative department
of commerce, establish credit archives of the operators of second-hand automobile markets and operational subjects of second-hand
automobiles and periodically publicize the name list of regulation-breaking enterprises.

Chapter V Supplementary Provisions

Article 37

The present Measures shall go into effect as of October 1, 2005. The former Notice of the General Office of the Ministry of Commerce
on Regulating the Administration of the Appraisal and Evaluation of Used Motor Vehicles (Shang Jian Zi [2004] No. 70), Notice on
Strengthening the Administration of the Used Motor Vehicle Market (Guo Jing Mao Mao Yi [2001] No. 1281) and Measures for the Administration
of Used Motor Vehicle Transactions (Nei Mao Ji Zi [1998] No. 33) as well as all kinds of documents as promulgated on the basis thereof
shall be simultaneously repealed.

 
the Ministry of Commerce, the Ministry of Public Security, the State Administration for Industry and Commerce and the
State Administration of Taxation
2005-08-29

 




INTERIM PROVISIONS ON ADMINISTRATION OF THE EXPORT OF PRECURSOR CHEMICALS TO PARTICULAR COUNTRIES (REGIONS)

the Ministry of Commerce, the Ministry of Public Security, the General Administration of Customs, the State Administration of Work
Safety, the State Food and Drug Administration

Order of the Ministry of Commerce, the Ministry of Public Security, the General Administration of Customs, the State Administration
of Work Safety and the State Food and Drug Administration

No. 12

The Interim Provisions on Administration of the Export of Precursor Chemicals to Particular Countries (Regions), which were deliberated
and adopted at the ninth executive meeting of the Ministry of Commerce on June 3, 2005, at the first executive meeting of the State
Administration of Work Safety on July 8, 2005 and at the seventh executive meeting of State Food and Drug Administration on July
7, 2005, and were approved by the Ministry of Public Security and the General Administration of Customs, are hereby promulgated and
shall go into effect as of September 1, 2005.

the Minister of the Ministry of Commerce, Bo Xilai

the Minister of the Ministry of Public Security, Zhou Yongkang

the Director of the General Administration of Customs, Mu Xinsheng

the Director General of the State Administration of Work Safety, Li Yizhong

the Director General of the State Food and Drug Administration, Shao Mingli

August 1, 2005

Interim Provisions on Administration of the Export of Precursor chemicals to Particular Countries (Regions)

Article 1

With a view to preventing precursor chemicals from entering into particular countries (regions) for drug production and regulating
the export of precursor chemicals, the present Provisions are formulated according to the Foreign Trade Law of the People’s Republic
of China and the relevant laws and administrative regulations.

Article 2

The term “precursor chemicals” as mentioned in the present Provisions refers to those chemicals as listed in Attachment I of the present
Provisions, namely, “Catalogue for the Administration of the Export of Precursor Chemicals to Particular Countries (Regions)”. The
Ministry of Commerce shall, together with the Ministry of Public Security, the General Administration of Customs, the State Administration
of Work Safety and the State Food and Drug Administration, adjust and promulgate the Catalogue for the Administration of the Export
of Precursor chemicals to Particular Countries (regions) where necessary.

Article 3

The term “particular countries (regions)” as mentioned in the present Provisions refers to those countries (regions) as listed in
Attachment II of the present Provisions, namely, “Catalogue of Particular Countries (Regions)”. The Ministry of Commerce shall, together
with the Ministry of Public Security, the General Administration of Customs, the State Administration of Work Safety and the State
Food and Drug Administration, adjust and promulgate the Catalogue of Particular Countries (regions) where necessary.

Article 4

The State adopts the licensing administration to the export of precursor chemicals to particular countries (regions).

No precursor chemicals may be exported to particular countries (regions) without permission.

For the export of precursor chemicals to particular countries (regions), the relevant export license shall be submitted to the Customs
for verification, and the Customs shall handle the relevant formalities for export inspection and clearance upon the strength of
the export license.

Article 5

The export license for precursor chemicals shall be subject to the system of “one license for one batch” and “one license for one
customs declaration”.

Where the precursor chemicals under one contract need to be exported by batches, the exporter shall bring it forward in the export
application and the Ministry of Commerce shall, after examination and approval, issue a corresponding number of export licenses.
No more than twelve batches may be applied for in one application.

Article 6

The export of precursor chemicals to particular countries (regions) shall be subject to the international inspection system.

Article 7

Where an exporter plans to export precursor chemicals to particular countries (regions), it shall file an application with the local
provincial commercial administrative department and submit the following materials in written form:

(1)

An Application Form for the Export of Precursor chemicals in duplicate;

(2)

The duplicate of the export contract (agreement);

(3)

The original of the certificate issued by the competent governmental department of the importing country (area) regarding the lawful
use of precursor chemicals or the document of guaranty regarding the lawful use by the importer;

(4)

The photocopy of the exporter’s business license; and

(5)

The photocopy of the record-keeping and registration form for foreign trade operators (the photocopy of the approval certificate affixed
with a conformity mark of joint annual inspection as submitted by a foreign-funded enterprise).

Article 8

The competent commerce department at the provincial level shall, within three days as of the date of receipt of an application, conduct
the preliminary examination and submit its preliminary examination opinions and relevant materials to the Ministry of Commerce for
examination and approval if the application is found to be eligible upon preliminary examination.

Article 9

The Ministry of Commerce shall finish the examination within five days as of the date of receipt of the preliminary examination opinions
from the provincial competent commerce department, and deliver its examination opinions and relevant materials to the Ministry of
Public Security for international inspection if the application is found to be eligible upon examination.

Article 10

The Ministry of Public Security shall send the materials for inspection to the competent governmental department of the importing
country (area) within three days after receiving the examination opinions and relevant materials from the Ministry of Commerce.

The Ministry of Public Security shall inform the Ministry of Commerce in writing within three days after receiving the notice of confirmation
from the competent governmental department of the importing country (area).

The Ministry of Commerce shall make a decision of approval or disapproval within five days after receiving the written notice from
the Ministry of Public Security.

Article 11

When applying for obtaining a license for export of precursor chemicals, an exporter shall make declaration faithfully and shall not
resort to fraud. It is strictly prohibited from obtaining the export license for precursor chemicals by fraud or any other improper
means.

The export license for precursor chemicals may not be forged, altered, bought or sold.

Article 12

The relevant administrative departments for the export of precursor chemicals shall establish a system for the purpose of information
intercommunication and electronic data network inspection.

Article 13

Where an entity or an individual violates the present Provisions, illegally exports precursor chemicals to particular countries (regions),
illegally exports precursor chemicals beyond the licensed scope, forges, alters, buys or sells the export license for precursor chemicals
or obtains the export license for precursor chemicals by fraud or any other improper means, it (he) shall be punished pursuant to
the Foreign Trade Law and the relevant laws and administrative regulations; and if a crime is constituted, it (he) shall be investigated
for criminal liabilities.

Article 14

Where any State functionary in charge of the export of precursor chemicals neglects his duties, practice favoritism, misuses his authorities,
demand properties from others by taking advantage of his job opportunity, or accepts other’s properties for seeking interests for
others, he shall be subject to criminal liabilities if a crime is constituted; or if no crime is constituted, he shall be subject
to administrative sanctions.

Article 15

The present Provisions shall apply to export of precursor chemicals from a bonded zone, export processing zone or any other Customs
surveillance area or bonded area into particular countries (regions).

No export license needs to be obtained for shipping precursor chemicals from a domestic place into a bonded zone, export processing
zone or any other Customs surveillance area or bonded area or passing precursor chemicals in and out between the aforesaid customs
surveillance areas and bonded areas.

Article 16

Where the export of precursor chemicals to particular countries (regions) is not covered by the present Provisions, the export shall
be in line with the relevant provisions in the Provisions on the Import-export Administration of Precursor Chemicals as formulated
by the former Ministry of Foreign Trade & Economic Cooperation (promulgated by Order No. 4 [1999] of the Ministry of Foreign Trade
& Economic Cooperation) and the Provisions on the Administration of Import-export International Inspection of Precursor chemicals
as jointly formulated by the former Ministry of Foreign Trade & Economic Cooperation and the Ministry of Public Security (promulgated
by Order No. 147 [2002] of the Ministry of Foreign Trade & Economic Cooperation).

Article 17

The present Provisions shall go into effect as of September 1, 2005.

Attachment I Catalogue for the Administration of the Export of Precursor chemicals to Particular Countries (Regions) (omitted)

Attachment II Catalogue of Particular Countries (Regions)

Attachment IICatalogue of Particular Countries (Regions)

1.

Burma

2.

Laos

 
the Ministry of Commerce, the Ministry of Public Security, the General Administration of Customs, the State Administration
of Work Safety, the State Food and Drug Administration
2005-08-01

 




DETAILED RULES FOR THE IMPLEMENTATION OF THE REGULATION ON THE ADMINISTRATION OF COMMERCIAL PERFORMANCE






the Ministry of Culture

Order of the Ministry of Culture of the People’s Republic of China

No. 34

The Detailed Rules for the Implementation of the Regulation on the Administration of Commercial Performance, adopted at the executive
meeting of the Ministry of Culture upon deliberation on August 25, 2005, are hereby promulgated and shall go into effect as of September
1, 2005.

Minister of the Ministry of Culture Sun Jiazheng

August 30, 2005

Detailed Rules for the Implementation of the Regulation on the Administration of Commercial Performance

Chapter I General Provisions

Article 1

The present Detailed Rules for the Implementation are formulated in accordance with the Regulation on the Administration of Commercial
Performance (hereinafter referred to as the Regulation).

Article 2

For the purpose of this Regulation, “performance” includes live artistic performance activities such as music, drama, dance, acrobatics,
magic, circus, quyi, puppet, shadow play, recitation, fork art and any other form.

Article 3

For the purpose of this Regulation, “commercial performances” refers to the performance activities as held for profit-making purpose
by the following ways:

(1)

Selling tickets or booking a whole theater;

(2)

Paying or remunerating the performance entities or individuals;

(3)

Using the performance as a medium for advertising publicity or sales promotion of products;

(4)

Being sponsored or donated; and

(5)

Organizing performance in any other profit-making form.

Article 4

The state shall protect the lawful rights and interests of all parties such as commercial performance entities, performers and audience,
and shall prohibit any unfair competition in commercial performance.

Chapter II Operational Subjects of Commercial Performance

Article 5

The term ” artistic performance group” refers to the business entity that satisfies the requirements as prescribed in paragraph 1
of Article 6 of the Regulation and undertakes various kinds of live artistic performance.

Article 6

The term “performance brokerage institutions” refers to the business entity that satisfies the requirements as prescribed in paragraph
2 of Article 6 of the Regulation and undertakes business operations of performances and performance brokerage as well.

Article 7

The term “business entity of performance place” refers to the business entity that satisfies the requirements as mentioned in Article
8 of the Regulation and provides professional performance place and relevant services for commercial performances activities.

Article 8

The term “self-employed performer” refers to a performer who satisfies the requirements as prescribed in Article 10 of the Regulation
and engages in performance and who has obtained the business license from the administrative department for industry and commerce
and has gone through the archival-filing formalities with the cultural administration.

The term “self-employed performance broker” refers to a broker who satisfies the requirements as prescribed in Article 10 of the
Regulation and engages in such activities as intermediary and agency for commercial performance and who has obtained the business
license from the administrative department of industry and commerce and has gone through the archival-filing formalities with the
cultural administration.

Article 9

Anyone who applies for establishing an artistic performance group shall submit the following documents to the cultural administration:

(1)

An application;

(2)

The Notice on the Advance Approval for the Name of an Artistic Performance Group, domicile thereof and the type of art as engaged
in;

(3)

The identity certification of the legal representative or the person-in-charge;

(4)

The certification of performers’ ability of art performance; and

(5)

The purchase of performance facilities and equipment, or the relevant fund certification.

The term “certification of performers’ ability of art performance” as mentioned in item (4) of the preceding paragraph may be any
of the following documents:

(1)

The graduation certification of the major of art performance as issued by an art school above the medium level (including art major
in a comprehensive college or university);

(2)

The certificate of professional post_title;

(3)

The written certification issued by an art academy;

(4)

The valid certificate or the documentary evidence issued by the performance association; or

(5)

Any other valid certificate.

Article 10

Anyone who applies for establishing a performance brokerage institution shall submit the following documents to the cultural administration:

(1)

An Application;

(2)

The Notice on the Advance Approval for the Name of a Performance Brokerage Institution and the domicile thereof;

(3)

The identity certificate of the legal representative or the person-in-charge;

(4)

The qualification certificate of performance brokers; and

(5)

The certificate as to funds.

The measures for the qualification accreditation of performance brokers as mentioned in item (4) of the preceding paragraph shall
be formulated by the national performance association.

Article 11

A business entity of performance place, self-employed performer or individual performance broker that has obtained its/his business
license according to law shall go through the archival-filing formalities with the local cultural administration at the county level,
which shall issue a certification of archival filing. The specimen of the certification of archival filing shall be designed by the
Ministry of Culture and shall be printed by the cultural administration at the provincial level according to the design requirements
of the Ministry of Culture.

Article 12

Anyone who applies for establishing a Chinese-foreign joint venture or Chinese-foreign contractual performance brokerage institution
shall submit the following documents as well as the documents as prescribed in Article 10 of the present Detailed Rules for the
Implementation:

(1)

The feasibility study report, contract and articles of association;

(2)

The credit certification and documents of registration of all parties to the joint venture or contractual performance brokerage institution;

(3)

The relevant documents on the asset appraisal which shall, in accordance with the provisions of the relevant laws and regulations,
be carried out for any state-owned asset in the form of investment or cooperative requirements as provided by the Chinese party to
the joint venture or contractual brokerage institution;

(4)

The name list of the candidates of the chairman, deputy chairman and directors of the board of directors, or of the director, deputy
director, members of the joint management committee, which is determined by all parties to the joint venture or contractual brokerage
institution through consultation, and the identity certification thereof; and

(5)

Other document as required to be submitted according to law.

The chairman of the board of directors or the director of the joint management committee of a joint venture or contractual brokerage
institution of performance shall be assumed by Chinese representatives, which shall constitute a majority number of the board of
directors or the joint management committee.

Article 13

Anyone who applies for establishing a Chinese-foreign joint venture or Chinese-foreign contractual business entity of performance
places shall submit the following documents:

(1)

An Application;

(2)

The Notice of the Advance Approval for the Name of a Business Entity of Performance Place and the domicile thereof;

(3)

A feasibility study report, contract and constitution;

(4)

The credit certification and registration documents of all parties to the joint venture or contractual performance brokerage institution;

(5)

The relevant documents on the asset appraisal which shall, in accordance with the provisions of the relevant laws and regulations,
be carried out for any state-owned asset in the form of investment or cooperative requirements as provided by the Chinese party to
the joint venture or contractual brokerage institution;

(6)

The name list of the candidates of the chairman, deputy chairman and directors of the board of directors, or of the director, deputy
director and other members of the joint management committee, which is determined by all parties to the joint venture or contractual
brokerage institution through consultation, and the identity certification thereof;

(7)

The certification of the land use right or the leasing certification;

(8)

Other document as required to be submitted according to law.

The chairman of the board of directors or the director of the joint management committee of a joint venture or contractual business
entity of performance places shall be assumed by Chinese representative, which shall constitute a majority number of the board of
directors or the joint management committee.

Article 14

A performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region may, upon approval,
establish branches in the mainland, but its branches in the mainland may not enjoy the status of enterprise legal-person.

A branch as established in the mainland by a performance brokerage institution of Hong Kong Special Administrative Region or Macao
Special Administrative Region may engage in the intermediary or agent activities of commercial performance in accordance with the
law, but may not undertake any other business activities concerning performance. A performance brokerage institution of Hong Kong
Special Administrative Region or Macao Special Administrative Region shall bear the civil liabilities for the business operations
of its branches.

Any performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region that establishes
a branch in the mainland shall designate the person-in-charge of the said branch in the mainland and appropriate the relevant funds
to the branch for the relevant business operations.

Article 15

A performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region that applies
for the establishment of a branch in the mainland shall submit the following documents:

(1)

An application;

(2)

The name and domicile of the branch;

(3)

The certification of legal business of the performance brokerage institution in Hong Kong and Macao;

(4)

The articles of associations of the performance brokerage institution as well as its branch;

(5)

The appointment letter of the person-in-charge of the branch and the identity certification thereof;

(6)

The qualification certification of the practitioners in performance brokerage;

(7)

The fund certification of the performance brokerage institution and the certification on the amount and term of the fund as appropriated
to its branch for business operations; and

(8)

Other document as required to be submitted according to law.

The qualification accreditation of performance brokers as mentioned in item (6) of the preceding paragraph shall be implemented in
accordance with paragraph 2 of Article 10 of the present Detailed Rules for the Implementation.

Article 16

An investor of the Hong Kong Special Administrative Region or Macao Special Administrative Region who applies for the establishment
of a sole-capital business entity of performance place in the mainland shall submit the following documents:

(1)

An application;

(2)

The Notice on the Advance Approval of the Name of a Business Entity of Performance Place and the domicile thereof;

(3)

A feasibility study report and the articles of association;

(4)

The qualification and the identity certification of the investor and legal representative;

(5)

The source, amount and term of contributed capital and the certification thereof;

(6)

The certification of land use right or leasing certification; and

(7)

Other document as required to be submitted according to law.

Article 17

An investor of Hong Kong Special Administrative Region or Macao Special Administrative Region who applies for the establishment of
a joint-venture or contractual performance brokerage institution or business entity of performance place in the mainland shall handle
it by referring to paragraph 1 of Article 12 and paragraph 1 of Article 13 of the present Detailed Rules for the Implementation.

A Taiwan investor who applies for the establishment of a joint-venture or contractual performance brokerage institution or business
entity of performance places in the mainland shall handle it by referring to Articles 12 and 13 of the present Detailed Rules for
the Implementation.

Article 18

Anyone that has established a joint-venture, contractual or sole-capital business entity of performance or a branch under the provisions
of Articles 12 and 13 of the Regulation shall, after obtaining the commercial performance license as issued by the Ministry of Culture,
file an application with the Ministry of Commerce through the local administrative department of commerce at the provincial level
upon the strength of the said license, go through the relevant formalities, and shall register with the administrative department
of industry and commerce and obtain a business license.

Chapter III Performance Administration

Article 19

Anyone that files an application for holding commercial performance shall, 3 days before the performance, submit the application materials
to the cultural administration in charge of the examination and approval thereof.

Anyone that applies for holding a foreign-related commercial performance or a commercial performance relating to Hong Kong or Macao
shall, 20 days before the performance, submit the application materials to the cultural administration in charge of the examination
and approval thereof.

Article 20

Anyone who files an application for holding a commercial performance shall, upon the strength of the commercial performance license
or the business license thereof, submit the documents as prescribed by Article 17 of the Regulation to the cultural administration.

Anyone that files an application for a commercial performance using temporarily-built stage or stand shall submit the documents that
conform to the provisions of items (2) and (3) of Article 21 of the Regulation. For any performance as approved, the sponsor shall,
1 day before the performance submit the documents as prescribed in item (1) of Article 21 of the Regulation to the cultural administration
in charge of the examination and approval thereof. In the case of failure to conform to the prescribed requirements, the performance
may not be held.

An application for any commercial performance with the participation of minors shall conform to the provisions of the state.

Article 21

As for the application for sponsoring any foreign-related commercial performance or any commercial performance relating to Hong Kong
or Macao, the following documents shall be submitted as well:

(1)

A Plan of Fund Appropriation and the relevant fund certification thereof;

(2)

Photocopies of the valid identity certification of performers; and

(3)

A written statement of observing the provisions of the Regulation within the recent 2 years.

The term “fund certification” as mentioned in item (1) of the preceding paragraph refers to the deposit certification of the basic
deposit account of the current month that is issued by the opening bank of the applicant entity, or the certification that such financial
institutions as a bank approve a loan, or the certification of any other entity’s approval for loans, investment, guaranty and support
as well as the deposit certification of the basic deposit account of the current month as issued by the opening bank of the said
entity.

The cultural administration shall carry out the examination and approval of the foreign-related commercial performance or commercial
performance relating to Hong Kong or Macao and may, if necessary, organize experts to carry out demonstration according to law.

Article 22

Anyone who files an application for holding any foreign-related commercial performance in any non-singing-or-dancing entertainment
place shall file an application with the Ministry of Culture through the local cultural administration at the provincial level, which
shall issue the examination opinion and report it to the Ministry of Culture for examination and approval within 5 days.

For any across-province performance, the examination opinion of the relevant cultural administration at the provincial level where
the performance is held shall be provided.

In the case of any different provision of the state, it shall prevail.

Article 23

When applying for holding commercial performances, the business entity of commercial performance shall fulfill the following obligations:

(1)

Going through the formalities of application for the performance;

(2)

Arranging the performance program;

(3)

Determining the ticket price and taking charge of the settlement of the payment and expenditure of the performance;

(4)

Paying or withholding relevant taxes and fees according to law;

(5)

Accepting voluntarily the supervision and administration of the cultural administration in the place where the performance is held;
and

(6)

Fulfilling any other obligation as required by law.

Article 24

As for any foreign-related commercial performance or any commercial performance relating to Hong Kong or Macao, the sponsor shall
be responsible for going through the formalities for entry and exit of all the artistic performance groups and individuals from foreign
countries, or of those from Hong Kong, Macao and Taiwan. As for a tour performance, it shall be reliable for the communications and
program arrangements of the whole journey as well.

Article 25

The professional performers of an artistic performance group and the teachers and students of a professional art academy may participate
in the commercial performance as held by any artistic performance group, performance brokerage institution or business entity of
performance place, but may not unlawfully hold any commercial performance by themselves.

Article 26

Where a professional performer of an artistic performance group or a teacher or student of a professional art academy is invited to
participate in any commercial performance, or participates in any commercial performance that is not held by his/her entity, the
agreement of the entity where he/she works shall be secured and a contract shall be concluded thereon.

Article 27

Where a professional artistic performer from a foreign country or Hong Kong or Macao who is invited by a professional art academy
to engage in teaching and study requires to participate temporarily in any commercial performance, a performance brokerage institution
shall be entrusted as an agent to handle it, which shall, in accordance with the prescribed procedures, report it to the Ministry
of Culture or the cultural administration at the provincial level for examination and approval.

Article 28

No performer may cheat the audience in a commercial performance by such means as lip-synching or fraudulent performance.

The term “lip-synching or fraudulent performance” as mentioned in the preceding paragraph refers to the undue conduct that a performer
makes use of his song or music that has been recorded beforehand instead of giving his/ her live performance of the song or music
in a performance.

Article 29

In the event of holding any charity performance, the relevant formalities for examination and approval shall be gone through in accordance
with the Regulation and the present Detailed Rules for the Implementation.

Any performer or performance staff member that participates in a charity performance may not claim any remuneration from the performance.
The performance entity or self-employed performer shall, after the necessary costs and expenditures being deducted, donate the income
as generated from the performance to the public welfare undertakings and may not make any profit therefrom.

The income as generated from a charity performance includes the ticket income, the donated funds and materials, the income from advertisement
and any other income from the activities relating to the performance.

The necessary costs and expenditures include the expenses for food, accommodation and transportation and those as needed for the performance,
such as the stage lighting and acoustic equipment, costumes and props, stage art and performance place, and publicity, etc.

The performance entity or self-employed performers shall, within10 days after the conclusion of the charity performance, report the
settlement of revenues and expenditures of the performance to the examination and approval organ for archival filing.

Any other charity performance as held in the form as prescribed in Article 3 of the present Detailed Rules for the Implementation
shall be carried out by referring to the provisions of the present Article.

Article 30

An investment entity of commercial performance may enjoy the name-crowning right according to law and may enjoy the right of distributing
the income as generated from a performance in accordance with the stipulation of the contract.

Article 31

In a commercial performance, the relevant sponsor shall comply with the requirements of stage design and give priority to domestic
performance facilities.

Article 32

In case a business entity of singing and dancing entertainment place, stadium, hotel, restaurant, dining place or any other non-performance
place requests to hold any commercial performance in its place, it shall entrust a performance brokerage institution as an agent
to handle it and shall report it to the cultural administration in accordance with the prescribed procedures.

Article 33

The ticket of the commercial performance may not be sold till approval is obtained.

Article 34

The cultural administration shall, in accordance with the relevant provisions, grant subsidies and supports to the performances that
are up to national standards and embody national characteristics.

The relevant departments of the people’s government above the county level may, in accordance with the relevant provisions of the
Regulation and the financial management system, encourage and support the performance that reflects ethnic features and national
level.

Article 35

The cultural administrations at all levels shall publicize the matters concerning the examination and approval of commercial performance
to the society.

Article 36

The cultural administrations shall, in light of the requirements of the administration of performance, establish a system of reporting
performance information, a responsibility system of going on a tour of inspection on the performance market, the system of publicizing
the basic information on performance business entities so as to strengthen the administration and supervision of the performance
market.

Article 37

The performance association is a self-discipline organization constituted by performance entities and performance practitioners. The
members of the performance association shall, pursuant to the articles of associations of the performance association, enjoy the
rights and perform the obligations as stipulated in the articles of associations.

The cultural administrations at all levels shall strengthen the guidance for and supervision over the performance association.

Article 38

The performance association shall, according to the stipulations of the articles of associations, perform the following duties:

(1)

Guiding, supervising the business activities of its members and safeguarding their legitimate rights and interests;

(2)

Formulating the self-discipline standards and promoting self-discipline and fair competition;

(3)

Organizing its members to carry out business exchanges and training;

(4)

Mediating any dispute between its members over performance; and

(5)

Performing other duties as required.

Article 39

The national performance association shall organize and implement the qualification accreditation of performance brokers and shall
entrust other organization as accredited by the performance association or the cultural administration at the provincial level to
carry out trainings and the relevant work.

Chapter IV Administration of Commercial Performance License

Article 40

The commercial performance license of an artistic performance group or a performance brokerage institution shall include 1 original
and 2 duplicates. The original of the commercial performance license shall be hung at an eye-catching place of its main office.

The commercial performance license as designed by the Ministry of Culture, shall be printed and produced by the provincial cultural
administrations according to the requirements of the Ministry of Culture, and shall be filled in, printed and stamped with an official
seal by the license-issuing authority. The duplicates of the commercial performance license shall give a clear indication of the
name and contact method of the person-in-charge and the handlers of the license-issuing authority.

Article 41

An artistic performance group or a performance brokerage institution that has obtained the commercial performance license shall, within
90 days, put the duplicate of its business license as issued by the administrative department for industry and commerce with the
culture administration that has issued the commercial performance license on record.

Article 42

When the cultural administration revokes the commercial performance license of a commercial artistic performance group or performance
brokerage institution, it shall notify the administrative department for industry and commerce to alter the business scope or revoke
the business license.

No entity or individual may withhold or detain the commercial performance license of a commercial artistic performance group or performance
brokerage institution, except that the cultural administration suspend or revoke it in accordance with the law.

Article 43

The revocation or writing-off of the commercial performance license of a commercial artistic performance group shall be put on record
with the cultural administration at the provincial level. The revocation or writing-off of the commercial performance license of
a performance brokerage institution, it shall be put on record with the Ministry of Culture.

Article 44

The cultural administrations at all levels shall establish an archival system for registering the license issued to commercial artistic
performance groups and performance brokerage institutions, and a registration system of performance places, self-employed performers
and self-employed performance brokers.

Article 45

When giving an administrative punishment to an artistic performance group or a performance brokerage institution, the cultural administration
shall record the punishment decision on the duplicate of the commercial performance license and affix the seal of the organ that
has given the punishment and, at the same time, notify the license-issuing authority of the punishment decision.

Chapter V Penalty Provisions

Article 46

Anyone that violates the provisions of Article 20 of the present Detailed Rules for the Implementation by failing to submit, 1 day
before the date of the performance, the certification of passing the inspection and acceptance of performance places according to
law as prescribed in Article 21 of the Regulation to the cultural administration in charge of the examination and approval of performance
and directly holding any commercial performance by using any temporarily-built stage or stand, shall be punished by the cultural
administration at the county level in accordance with the provisions of Article 44 of the Regulation.

Article 47

Any entity that violates the provisions of Articles 23 and 24 of the present Detailed Rules for the Implementation by failing to perform
its obligations in the business activity of a performance and reselling or transferring the operational right of the performance,
shall be punished in accordance with the provisions of Article 45 of the Regulation.

Article 48

Any professional performer of an artistic-cultural performance group or any teacher or student of a professional art college or university
that violates the provisions of Article 25 of the present Detailed Rules for the Implementation by unlawfully holding any commercial
performance shall be punished by the cultural administration at the county level in accordance with the provisions of Article 43
of the Regulation.

Article 49

Any entity that violates the provisions of Article 26 of the present Detailed Rules for the Implementation by inviting any professional
performer of an artistic-cultural performance group or any teacher or student of a professional art college or university to participate
in any commercial performance without soliciting the consent of the relevant entity shall be given a warning by the cultural administration
at the county level, and shall be imposed a fine of not less than 10, 000 Yuan but not more than 30, 000 Yuan as well.

Article 50

Where a professional artistic performer from a foreign country or from Hong Kong or Macao that has been invited by a art academy to
engage in teaching or research violates the provisions of Article 27 of the present Detailed Rules for the Implementation by unlawfully
engaging in any commercial performance, the cultural administration at the county level shall give it a punishment in accordance
with the provisions of Article 43 of the Regulation.

Article 51

Anyone who cheats the audience by such means as fraudulent musical performance shall be punished in accordance with the provisions
of Article 47 of the Regulation.

Article 52

Where an entity that violates the provisions of Article 29 of the present Detailed Rules for the Implementation by failing to go
through the formalities for examination and approval according to the relevant regulations to unlawfully hold any charity performance
or any other public welfare performance without permission

SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF OPERATION QUALIFICATION OF FOREIGN LABOR SERVICE COOPERATION

the Ministry of Commerce, the State Administration for Industry and Commerce

Order of the Ministry of Commerce and the State Administration for Industry and Commerce

No.14

The Supplementary Provisions on the Measures for the Administration of Operation Qualification of Foreign labor service Cooperation,
which were adopted upon deliberation at the 11th ministerial meeting of the Ministry of Commerce on July 4th, 2005, and approved
by the State Administration for Industry and Commerce, are hereby promulgated and shall come into force 30 days after the day of
its promulgation.

Minister of the Ministry of Commerce, Bo Xilai

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

August 15, 2005

Supplementary Provisions on the Measures for the Administration of Operation Qualification of Foreign Labor Service Cooperation

With a view to meeting the need of enterprise restructuring and promoting the development of foreign labor service cooperation in
western regions, we hereby make the following supplementary provisions on the Measures for the Administration of Operation Qualification
of Foreign Labor Service Cooperation (Order No.3 of the Ministry of Commerce and the State Administration for Industry and Commerce,
hereinafter referred to as the Measures for Administration):

I.

The following enterprises, which conform to the provisions of items (1) to (7) of Article 5 of the Measures for Administration (excluding
the requirements for the registration time), may continue undertaking foreign labor service within the respective former business
scope of the enterprises, but shall apply for changing the Certificate of the People’s Republic of China for Operation Qualification
of Foreign Labor Service Cooperation:

1.

The enterprise that survives the merger of an enterprise that has the operation qualification of foreign labor service cooperation
(hereinafter referred to as the operation qualification) with any other enterprise that has been written off, or the newly established
enterprise after such merger; or

2.

The enterprise that is newly established after the division of an enterprise that has the operation qualification, in which the former
enterprise has been written off or have given up its operation qualification with its foreign labor service cooperation business
wholly incorporated into the newly established enterprise.

Where an enterprise that has the operation qualification is divided, apart from the circumstances as prescribed in the preceding paragraph,
the enterprise newly established after the division that conforms to the provisions of Article 5 (excluding the requirements for
the registration time) of the Measures for Administration may apply for operation qualification according to law.

II.

In western provinces or autonomous regions where less than 300 laborers are sent abroad in a year, apart from the enterprises that
have had the operation qualification prior to the promulgation of the present Provisions, one enterprise may be specially permitted
to apply for the operation qualification, and the enterprise is not be restricted by the requirements for outstanding achievement
as prescribed in item (8) of Article 5 of the Measures for Administration.

III.

The present Provisions shall come into force 30 days after the day of its promulgation.

 
the Ministry of Commerce, the State Administration for Industry and Commerce
2005-08-15

 




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...