MEASURES FOR THE ISSUANCE EXAMINATION COMMITTEE OF CHINA SECURITIES REGULATORY COMMISSION

Order of China Securities Regulatory Commission

No. 31

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

May 9, 2006

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

Article 1

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

Article 2

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

Article 3

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

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

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

Article 4

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

Article 5

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

Chapter II Composition of the IEC

Article 6

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

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

The IEC shall have 5 conveners.

Article 7

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

Article 8

An IEC member shall meet the following qualifications:

(1)

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

(2)

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

(3)

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

(4)

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

(5)

Other requirements as considered necessarily by the CSRC.

Article 9

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

(1)

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

(2)

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

(3)

Filing an application for resignation by himself;

(4)

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

(5)

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

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

Chapter III Responsibilities of the IEC

Article 10

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

Article 11

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

Article 12

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

Article 13

The IEC member shall abide by the following provisions:

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

Other relevant provisions of the CSRC.

Article 14

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

Article 15

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

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

Article 16

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

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

Article 17

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

Chapter IV IEC Meetings

Section 1 General Prescriptions

Article 18

The IEC shall conduct examination through convening IEC meetings.

Article 19

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

Article 20

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

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

(1)

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

(2)

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

(3)

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

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

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

Article 21

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

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

Article 22

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

Article 23

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

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

Article 24

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

Article 25

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

Article 26

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

Section 2 Common Procedures

Article 27

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

Article 28

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

Article 29

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

Article 30

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

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

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

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

Article 31

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

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

Article 32

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

Section 3 Special Procedures

Article 33

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

Article 34

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

Article 35

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

Article 36

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

Article 37

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

Chapter V Supervision over the Examination Work of the IEC

Article 38

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

Article 39

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

Article 40

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

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

Article 41

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

Article 42

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

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

Article 43

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

Chapter VI Supplementary Provisions

Article 44

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

China Securities Regulatory Commission
2006-05-09

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

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

Guo Shui Han [2006] No. 481

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

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

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

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

II.

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

The State Administration of Taxation

May 23, 2006

State Administration of Taxation
2006-05-23

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

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

Yin Fa [2006] No. 189

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

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

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

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

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

Appendix: Supplementary Circular on the Acquisition of Personal Credits

The People’s Bank of China

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

The China Banking Regulatory Commission

The China Securities Regulatory Commission

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

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

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

Principle of Acquisition

(1)

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

(2)

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

(3)

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

(4)

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

Acquisition Standards

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

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

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

2006-06-02

ANNOUNCEMENT NO.45, 2006 OF MINISTRY OF COMMERCE ON PRELIMINARY ARBITRATION ON WEAR RESISTANT OVERLAY

Announcement No.45, 2006 of Ministry of Commerce on Preliminary Arbitration on Wear Resistant Overlay

[2006] No. 45

Ministry of Commerce issued an announcement on June 13, 2005 to start an anti-dumping investigation on the imported Wear Resistant
Overlay originating from The U.S. and EU (hereinafter referred to as the investigated products).

In accordance with Article 24 of Anti-dumping Regulations of People’s Republic of China, Ministry of Commerce made the preliminary
arbitration that dumping of the investigated products had taken place, which had caused material injury to China’s industry and there
was a casual relationship between the dumping and the injury.

The Wear Resistant Overlay is listed under Tariff No. 48064000 in Customs Tariff of Import and Export of the People’s Republic of
China.

In accordance with Article 28 and 29 of Anti-dumping Regulations of People’s Republic of China, Ministry of Commerce decided to take
anti-dumping measures by deposit in security as of June 16, 2006.

Deposit in security rates are as follows:

Companies of the U.S.:

MW Custom Papers, LLC 10.35%

All Others 42.79%

Companies of EU.:

Papierfabrik Schoeller & Hoesch GmbH & Co. KG 24.64%

All Others 42.79%

The relevant interested parities could apply written comments, with related evidence, to Ministry of Commerce for consideration within
20 days as of the date this announcement is issued.

Appendix: Preliminary Arbitration of Ministry of Commerce on Anti-dumping Investigation on Imported Wear Resistant Overlay Originating
from The U.S. and EU (omitted)

Ministry of Commerce

June 16, 2006

Ministry of Commerce
2006-06-16

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE PREFERENTIAL POLICIES FOR ENTERPRISE INCOME TAXES OF TECHNICAL INNOVATION ENTERPRISES

Notice of the Ministry of Finance and the State Administration of Taxation on the Preferential Policies for Enterprise Income Taxes
of Technical Innovation Enterprises

Cai Shui [2006] No. 88

Public finance departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions and municipalities
under the Central Government and cities specifically designated in state plan, and the Public Finance Bureau of Xinjiang Production
and Construction Corps.

With a view to implementing the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2005]
No. 44), we hereby notify the related preferential policies for enterprise income taxes of technical innovation enterprises as follows
under the Notice of the State Council on Printing, Distributing and Implementing Several Supporting Policies for the Outline for
the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2006] No. 6),

With regard to the Expenditure for Technical Development

As regards the Chinese-funded and foreign-funded enterprises, scientific research institutions and universities and colleges with
perfect financial verification system and tax collection by checking accounts (hereinafter referred to as the enterprises), the expenditure
for technical development occurring for the research and development of new products, new technologies and work techniques shall
be deducted before tax collection under the related provisions.

The following items of expenditure for technical development that actually occur within the tax year of any of the aforesaid enterprises
is allowed, on the basis of 100% offset under the related provisions, to be re-deducted at the rate of 50% of the amount that actually
occurs before the enterprise income tax is collected, which shall include the expenditure for new product designs, expenditure for
formulating technical procedures, expenditure for equipment adjustments, expenditure for trial production of raw materials and semi-products,
expenditure for technical books and materials, expenditure for intermediate experiments that have not been included into the state
plan, wages of researchers, depreciation of instruments and equipments for research and development, expenditure for commissioning
any other entity or individual to make scientific research and trial production and other expenditure directly related to scientific
research and trial production.

The part that fails to be offset with the expense for technical development that actually occurs in an enterprise’s annual year may
be offset with the taxable income of the enterprise in the next following year, for which the time limit for offset may not be longer
than 5 years.

With Regard to the Fund for the Education of Staff

With regard to the fund for the education of staff that an enterprise collects and actually uses in the very year, the part within
2.5% of the aggregate taxable wage may be deducted before the enterprise income tax is collected.

With regard to the Accelerated Depreciation

Where the unit value of any of the enterprise’s instruments and equipments for research and development is less than 0.3 million Yuan,
the expenditure may be calculated into the cost in one or several installments and shall be deducted before the enterprise income
tax is collected. Any instrument or equipment that meets the standards for fixed assets shall be subject to separate administration,
and no depreciation shall be made any more.

Where the unit value of any of the enterprise’s instruments and equipments for research and development is more than 0.3 million Yuan,
accelerated depreciation may be based on either the double-declining balance method or the sum of the year digits method. Once a
specific method for depreciation is determined, it may not be modified at will.

The instruments and equipments as provided for in the aforesaid two paragraphs refer to those that an enterprise has newly purchased
for research and development after January 1, 2006.

With regard to the Tax Preferential Policies for High Tech Enterprises

Any high tech enterprise established within the state high-tech industrial development park as of January 1, 2006 shall be exempted
from enterprise income taxes within 2 years as of the year when it starts to make profits. After the expiration of the time limit
for tax exemption, the enterprise income tax shall be collected at a reduced tax rate of 15%.

After the aforesaid enterprise starts its business operation, its profit-making year shall be the first tax year when it starts to
make profits. In case the enterprise is run at a loss at the beginning, the balance may be made up on a year basis under the provisions
of taxation laws. Its first profit-making year shall be the tax year when it can offset the losses and begins to make profits.

As for any Chinese-funded enterprise that enjoys the tax preferential policy for two-year exemption of enterprise income tax as of
the year when it begins business operation, it can enjoy the preferential policy till the expiration and may not enjoy any preferential
policy for the exemption of enterprise income tax any more within 2 years as of its profit-making year.

The present Notice shall go into effect as of January 1, 2006. Where any related provision conflicts with the present Notice, the
present Notice shall prevail. Where the state makes any further reform on the tax collection system, the related tax preferential
policies shall be implemented under the updated provisions on tax collection.

Please carry them out accordingly.

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

The State Administration of Taxation

September 8, 2006

The Ministry of Finance, the State Administration of Taxation
2006-09-08

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LIST ( THE 16TH GROUP )OF REFUNDABLE PERSONAL INSURANCE PRODUCTS WITH A TERM MORE THAN ONE YEAR EXEMPTED FROM BUSINESS TAX

Circular of the Ministry of Finance and the State Administration of Taxation concerning The List ( the 16th Group )of Refundable Personal
Insurance Products with a Term More than One Year Exempted from Business Tax

Cai Shui [2006] No. 115

The public finance departments (bureaus) and local taxation bureaus in all provinces, autonomous regions, municipalities directly
under the Central Government, cites specifically designated in the state plan, the public Finance bureau of Xinjiang Production and
Construction Corps:

Pursuant to relevant provisions of the Circular on Exemption from Business Tax on Certain Projects (Cai Shui Zi [1994] No.002) and
the Circular of the Ministry of Finance and the State Administration of Taxation on Certain Issues concerning the Exemption from
Business Tax on Life Insurance Business (Cai Shui [2001] No.118), it is decided after examination and verification to exempt from
business tax on the premiums gained from the insurance products which are sold by related insurance companies and satisfy the conditions
of exemption from tax, and the list of the insurance products exempted from tax is attached to the Appendix.

Appendix: The List of the Insurance Products Exempted from Business Tax

the Ministry of Finance

the State Administration of Taxation

September 19, 2006

Ministry of Finance, the State Administration of Taxation
2006-09-19

MEASURES OF THE EXAMINATION AND APPROVAL FOR AGRICULTURAL GENETICALLY MODIFIED ORGANISMS PROCESSING

Ministry of Agriculture

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

No. 59

The Measures of the Examination and Approval for Agricultural Genetically Modified Organisms Processing, which were adopted at the
3rd executive meeting of the Ministry of Agriculture on January 16, 2006 upon deliberation, are hereby promulgated and shall be implemented
as of July 1, 2006.

Minister of Ministry of Agriculture, Du Qinglin

January 27, 2006

Measures of the Examination and Approval for Agricultural Genetically Modified Organisms Processing

Article 1

In order to strengthen the administration of examination and approval for agricultural genetically modified organisms processing,
the present Measures are formulated in accordance with the relevant provisions of the Regulation on the Security Administration of
Agricultural genetically modified organisms.

Article 2

The term “agricultural genetically modified organisms processing” as mentioned in the present Measures refers to an activity of producing
the relevant products of agricultural genetically modified organisms by making use of active agricultural genetically modified organisms
as the raw materials.

The term “products of agricultural genetically modified organisms” as mentioned in the preceding paragraph refers to genetically modified
animals and plants, microorganism products and the directly processed products from genetically modified agricultural products as
prescribed in items (2) and (3) of article 3 in the Regulations on the Security Administration of Agricultural Genetically Modified
Organisms.

Article 3

An entity or individual that engaged in the processing of agricultural genetically modified organisms within the territory of the
People’s Republic of China shall acquire a License for Agricultural Genetically Modified Organisms Processing as issued by the competent
department of agriculture administrative of the local people’s government at the provincial level at the locality of processing (hereinafter
referred to as the Processing License).

Article 4

An entity or individual that engaged in the processing of agricultural genetically modified organisms shall not only accord with the
conditions for establishment as prescribed by the relevant laws and regulations but also accord with the conditions as follows:

(1)

Having the relevant special production line and closed storage facilities applicable to the processing of agricultural genetically
modified organisms;

(2)

Having the relevant equipment and facilities for disposal of processing wastes and inactivation;

(3)

Having the relevant controlling measures for pollution disposal in the processing and transforming between agricultural genetically
modified organisms and non-genetically modified organisms that function as raw materials; and

(4)

Having perfect safety management system on agricultural genetically modified organisms processing by the follows means:

Setting up an archive for the management of purchase of raw materials, transportation, storage, processing and sale;

Setting up a system of post responsibility;

Setting up the relevant emergency preliminary schemes for such emergencies as spread of agricultural genetically modified organisms;
and

Setting up a group in charge of the safety administration of agricultural genetically modified organisms, consists of the relevant
management personnel and technicians who have the relevant knowledge on the safety of agricultural genetically modified organisms;

Article 5

An entity that submits an application for a Processing License shall submit the application to the competent department of agriculture
administrative of the people’s government at the provincial level and come up with the following materials:

(1)

An Application Form for Processing License (See Attachment);

(2)

A text of the safety administration system for agricultural genetically modified organisms processing;

(3)

The name list, professional knowledge and educational certificates and credentials of the members of the group in charge of the safety
administration of agricultural genetically modified organisms;

(4)

Records on the training of the relevant regulations on the security of agricultural genetically modified organisms and the relevant
knowledge of processing security;

(5)

The specimens of the labels of agricultural genetically modified organisms products; and

(6)

The photocopy of the Security Certificate of Agricultural Genetically modified Organisms for the raw materials in processing.

Article 6

The competent department of agriculture administrative of the people’s government at the provincial level shall accomplish the examination
within 20 workdays as of accepting an application. Where the application accords with the relevant requirements, a Processing License
shall be issued, which shall be reported to the Ministry of Agriculture for archival filing. Where any application fails to accord
with the relevant requirements, a written notice shall be issued to the relevant applicant, wherein an explanation shall be given.

As required, the competent department of agriculture administrative of the people’s government at the provincial level may organize
an expert group to carry out an appraisal on the application materials. An expert group may carry out an on-site inspection and submit
a report on inspection within the prescribed time limit as prescribed by the competent department of agriculture administrative.

Article 7

The validity term of a Processing License is 3 years. Where any entity or individual wants to continue its/his processing business
after the expiration of the License, it/he shall submit an application for a Processing License again 6 months before the original
License expires.

Article 8

Where an entity or individual that engaged in the processing of agricultural genetically modified organisms processing alters its/his
name, it/he shall submit an application for changing its/his Processing License.

Where an entity or individual that engaged in the processing of agricultural genetically modified organisms processing is under any
of the circumstance as follows, it/he shall submit an application for a new Processing License:

(1)

Where the relevant business goes beyond the confine of the processing scope as prescribed in the original Processing License; or

(2)

Where the production location is altered, including such cases as production in different places and setting up branches.

Article 9

An entity or individual that violates the provisions of the present Measures shall be subject to the punishment in accordance with
the relevant provisions of the Regulation on the Security Administration of Agricultural Genetically modified Organisms.

Article 10

The Processing Licenses shall be uniformly printed by the Ministry of Agriculture.

Article 11

The present Measures shall be implemented as of July 1, 2006.

htm/e04768.htmλ/post_title>

Attachment:

Application Form for Processing License

Application Date Month Day Year

Name of the Application Organization		Code of the Organization
Address		Post No.
E-MAIL		Faxes

Character of the Enterprise			Date of Establishment
Delegate of Legal Person		Linkman		Telephone

Situation of Pool or Establishment of Branches
Names of Genetically Modified Organisms		Situation of Identifier
Name (Category) of Products
Use		Situation of Identifier
Circulation of Products		Quantity of Capacity in Prior Year
Opinions of the Application Organization	Delegate of Legal PersonSignature or Seal Month Day Year
Opinions of the Experts Group	Seal Month Day Year
Examination and Approval Opinions of Provincial Department of Agriculture	Seal Month Day Year

ANNOUNCEMENT NO. 8, 2006 OF MINISTRY OF COMMERCE, ON TERMINATING ANTI-DUMPING MEASURES ON UNBLEACHED KRAFT LINER/LINERBOARD

Ministry of Commerce

Announcement No. 8, 2006 of Ministry of Commerce, on Terminating Anti-dumping Measures on Unbleached Kraft Liner/Linerboard

[2006] No. 8

On January 9, 2006, Ministry of Commerce released Written Reconsideration Decision to withdraw Announcement No. 60 of Ministry of
Commerce. Therefore, Customs Tariffs Committee of the State Council decided to withdraw the anti-dumping decision made to imported
Unbleached Kraft Liner/Linerboard originating from the U.S., Thailand, ROK and Taiwan region.

In accordance with decision of Customs Tariffs Committee of the State Council, anti-dumping duties on imported Unbleached Kraft Liner/Linerboard
originating from the U.S., Thailand, ROK and Taiwan region shall be terminated as of January 9, 2006.

Ministry of Commerce

February 13, 2006

Ministry of Commerce
2006-02-13

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 14 – REVENUES

The Ministry of Finance

Accounting Standards for Enterprises No. 14 – Revenues

Cai Kuai [2006] No.3

February 15, 200

Chapter I General Provisions

Article 1

These standards are formulated in accordance the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition and measurement of the revenues, and the disclosure of the relevant information.

Article 2

The term “revenue” refers to the gross inflow of economic benefits formed during the course of the ordinary activities of an enterprise,
which may increase the owner’s equities and is irrelevant to the invested capital of the owner.

The revenues as mentioned in these Standards consist of those from selling goods, providing labor services, and abalienating the right
to use assets.

The collection charged by an enterprise for third parties shall be treated as debts rather than revenues.

Article 3

Other relevant accounting standards shall apply to the revenue formed by long-term equity investments, construction contracts, leases,
original insurance contracts, re-insurance contracts, etc..

Chapter II Revenue from Selling Goods

Article 4

No revenue from selling goods may be recognized unless the following conditions are met simultaneously:

(1)

The significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise;

(2)

The enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over
the sold goods;

(3)

The relevant amount of revenue can be measured in a reliable way;

(4)

The relevant economic benefits may flow into the enterprise; and

(5)

The relevant costs incurred or to be incurred can be measured in a reliable way.

Article 5

An enterprise shall ascertain the revenue incurred by selling goods in accordance with the received or receivable price stipulated
in the contract or agreement signed between the enterprise and the buyer, unless the received or receivable amount as stipulated
in the contract or agreement is unfair.

If the collection of the price as stipulated in the contract or agreement is delayed and if it has the financing nature, the revenue
incurred by selling goods shall be ascertained in accordance with the fair value of the receivable price as stipulated in the contract
or agreement.

The difference between the price stipulated in the contract or agreement and its fair value shall be amortized within the period of
the contract or agreement employing the real interest method and shall be included in the current profits and losses.

Article 6

If the sale of goods concerns any cash discount, the revenue incurred by selling goods shall be ascertained in accordance with the
amount prior to the deduction of the cash discount. The cash discount shall be included in the current profits and losses when it
is actually incurred.

The term “cash discount” refers to the amount of reduction of a debt offered by a creditor to a debtor for the purpose of encouraging
the debtor to make payment within a prescribed period.

Article 7

If any trade discount in selling goods is concerned, the revenue incurred by selling goods shall be ascertained in accordance with
the amount after the deduction of the trade discount.

The term “trade discount” refers to a discount on the listed price granted by an enterprise for the purpose of sales promotion of
goods.

Article 8

As to any sales discounts and allowance arising from any sold goods and of which the revenue from the sale has been recognized by
the enterprise, the current revenue incurred by selling goods shall be offset against.

The Accounting Standards for Enterprises No. 29 – Events Occurring after the Balance Sheet Date, shall apply to the sales discounts
and allowances that belong to the scope of the events occurring after the date of the balance sheet.

The term “sales discounts and allowance” refers to the amount of reduction in the sales price as a result of the unqualified quality
of the goods to be sold by an enterprise, or for other reasons.

Article 9

As to any sales return arising from any sold goods and of which the revenue from the sale has been recognized by the enterprise, the
current revenue incurred by selling goods shall be offset against.

The Accounting Standards for Enterprises No. 29 – Events Occurring after the Balance Sheet Date, shall apply to the sales returns
that belong to the scope of events occurring after the date of the balance sheet.

The term “sales return” refers to the return of goods sold by an enterprise as a result of the unqualified quality of the goods or
inconformity with the required variety, or for other reasons.

Chapter III Revenue from Providing Labor Services

Article 10

If an enterprise can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the labor services
it provides, it shall recognize the revenue from providing services employing the percentage-of-completion method.

The term “percentage-of-completion method” refers to a method to recognize the revenues and expenses in the light of the stage of
completion under a transaction concerning the providing of labor services.

Article 11

The outcome of a transaction concerning the providing of labor services can be measured in a reliable way, means that the following
conditions shall be met simultaneously:

(1)

The amount of revenue can be measured in a reliable way;

(2)

The relevant economic benefits are likely to flow into the enterprise;

(3)

The schedule of completion under the transaction can be confirmed in a reliable way; and

(4)

The costs incurred or to be incurred in the transaction can be measured in a reliable way.

Article 12

An enterprise may adopt the following methods to ascertain the schedule of completion under the transaction concerning the providing
of labor services:

(1)

The measurement of the work completed;

(2)

The proportion of the labor services provided against the total labor services to be provided; and

(3)

The proportion of the costs incurred against the estimated total costs.

Article 13

An enterprise shall ascertain the total revenue from the providing of labor services in accordance with the received or to-be-received
price of the party that receives the labor services as stipulated in the contract or agreement, unless the received or to-be-received
price as stipulated in the contract or agreement is unfair.

An enterprise shall, on the date of the balance sheet, ascertain the current revenue from providing labor services in accordance with
the amount of multiplying the total amount of revenues from providing labor services by the schedule of completion then deducting
the accumulative revenues from the providing of labor services that have been recognized in the previous accounting periods. At the
same time, the enterprise shall carry forward the current cost of labor services in accordance with the sum of multiplying the total
amount of revenues arising from the providing of labor services by the schedule of completion and then deducting the accumulative
revenues from the providing of labor services.

Article 14

If an enterprise can not, on the date of the balance sheet, measure the result of a transaction concerning the providing of labor
services in a reliable way, it shall be conducted in accordance with the following circumstances, respectively:

(1)

If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be recognized
in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at
the same amount; or

(2)

If the cost of labor services incurred is not expected to compensate, the cost incurred should be included in the current profits
and losses, and no revenue from the providing of labor services may be recognized.

Article 15

Where a contract or agreement signed between enterprises concerns selling goods and providing of labor services, if the part of sale
of goods and the part of providing labor services can be distinguished from each other and can be measured respectively, the part
of sale of goods shall be conducted as selling goods and the part of providing labor services shall be conducted as providing labor
services.

If the part of selling goods and the part of providing labor services can not be distinguished from each other, or if the part of
sale of goods and the part of providing labor services can be distinguished from each other but can not be measured respectively,
both parts shall be conducted as selling goods.

Chapter IV Revenue from Abalienating the Right to Use Assets

Article 16

The revenue from abalienating of right to use assets consists of interest revenue and royalty revenue.

Article 17

No revenue from abalienating of right to use assets may be recognized unless the following conditions are met simultaneously:

(1)

The relevant economic benefits are likely to flow into the enterprise; and

(2)

The amount of revenues can be measured in a reliable way.

Article 18

An enterprise shall ascertain the amount of revenues from the abalienating of right to use assets based on the following circumstances,
respectively:

(1)

The amount of interest revenue should be measured and confirmed in accordance with the length of time for which the enterprise’s cash
is used by others and the actual interest rate; or

(2)

The amount of royalty revenue should be measured and confirmed in accordance with the period and method of charging as stipulated
in the relevant contract or agreement.

Chapter V Disclosure

Article 19

An enterprise shall, in its notes, disclose the information concerning the revenue as follows:

(1)

The accounting policies adopted for the recognition of revenues, consisting of the methods for the ascertainment of the schedule of
completion under the transaction concerning the providing of labor services;

(2)

The amount of revenues from selling goods, providing labor services, interest and royalty recognized in the current period.

The Ministry of Finance
2006-02-15

PENALTIES FOR ADMINISTRATION OF PUBLIC SECURITY LAW

Law of the People’s Republic of China on Penalties for Administration of Public Security

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

No. 38

The Law of the People’s Republic of China on Penalties for Administration of Public Security, adopted at the 17th Meeting of the
Standing Committee of the Tenth National People’s Congress of the People’s Republic of China on August 28, 2005, is hereby promulgated
and shall go into effect as of March 1, 2006.

Hu Jintao

President of the People’s Republic of China

August 28, 2005

(Adopted at the 17th Meeting of the Standing Committee of the Tenth National People’s Congress on August 28, 2005)

Contents

Chapter I　General Provisions

Chapter II　Types of Penalties and Their Application

Chapter III　Acts Against the Administration of Public Security and Penalties

Section 1　Acts Disturbing Public Order and Penalties

Section 2　Acts Impairing Public Security and Penalties

Section 3　Acts Infringing upon Rights of the Person and of Property and Penalties

Section 4　Acts Impeding Social Administration and Penalties

Chapter IV　Procedure of Penalties

Section 1　Investigation

Section 2　Decision

Section 3　Execution

Chapter V　Law Enforcement Supervision

Chapter VI　Supplementary Provisions

Chapter I　General Provisions

Article 1　This Law is formulated in order to maintain the order of public security, safeguard public safety, protect the lawful
rights and interests of citizens, legal persons and other organizations, and regularize and guarantee performance of the duties for
administration of public security by public security organs and people’s police according to law.

Article 2　A person who disturbs public order, endangers public safety, infringes on the rights of person and property or hampers
social administration, which is harmful to the society and which, according to the provisions of the Criminal Law of the People’s
Republic of China, constitutes a crime, shall be investigated for criminal responsibility according to law; and if such an act is
not serious enough for criminal punishment, the public security organ shall impose on him a penalty for administration of public
security according to this Law.

Article 3　The provisions of this Law are applicable to the procedure of penalties for administration of public security; and to
cases for which no such provisions are stipulated in this Law, the relevant provisions of the Law of the People’s Republic of China
on Administrative Penalty shall be applicable.

Article 4　This Law shall be applicable to acts committed against the administration of public security within the territory of
the People’s Republic of China, except where specially provided for by other laws.

This Law shall be applicable to acts against the administration of public security committed aboard ships or aircrafts of the People’s
Republic of China, except where specially provided for by other laws.

Article 5　A penalty for administration of public security shall be based on facts and fit the nature and circumstances of the act
committed against the administration of public security and the extent of harm done to the society.

Penalties for administration of public security shall be imposed openly and impartially, human rights shall be respected and safeguarded,
and the dignity of citizens shall be protected.

The principle of combining education with penalty shall be upheld in dealing with cases of public security.

Article 6　People’s governments at various levels shall make comprehensive improvement of public security and take effective measures
to dissolve social contradictions, enhance social harmony and maintain social stability.

Article 7　The department of public security under the State Council shall be responsible for administration of public security
throughout the country. The public security organs of the local people’s governments at or above the county level shall be responsible
for administration of public security within their respective administrative areas.

Jurisdiction over the cases of public security shall be determined by the department of public security under the State Council.

Article 8　Where an act against the administration of public security causes harm to another person, the person committing such
act or his guardian shall bear civil liability according to law.

Article 9　In respect of acts against the administration of public security, such as brawling and damaging or destroying another
person’s property, which are caused by civil disputes, if the circumstances are relatively minor, the public security organ may
dispose of them through mediation. Where the parties concerned reach an agreement through mediation by the public security organ,
no penalties shall be imposed. Where no agreement is reached through mediation or the agreement, although reached, is not executed,
the public security organ shall, in accordance with the provisions of this Law, impose penalties upon the persons committing the
acts against the administration of public security and notify the parties concerned that they may, according to law, bring a civil
action before a people’s court in respect of the civil disputes.

Chapter II　Types of Penalties and Their Application

Article 10　Penalties for acts against the administration of public security are divided into the following types:

(1) warning;

(2) fine;

(3) administrative detention; and

(4) revocation of licenses issued by public security organs.

To a foreigner who acts against the administration of public security, leaving the country within a time limit or deportation attached
to a penalty may be applicable.

Article 11　Contraband seized in dealing with cases of public security such as drugs and pornographic objects, gambling devices,
money for gambling, devices used for ingesting or injecting drugs, and the instruments owned and directly used by the persons in
their acts against the administration of public security shall be taken over, and shall be disposed of according to relevant regulations.

The money and things of value obtained through acts against the administration of public security shall be recovered and returned
to the victim; and where there is no victim involved, they shall be registered and sold by auction or disposed of according to the
relevant regulations of the State, and all the proceeds therefrom shall be handed over to the State Treasury.

Article 12　If a person who has attained to the age of 14 but not to the age of 18 commits an act against the administration of
public security, he shall be given a relatively light or mitigated penalty; and if a person who has not attained to the age of 14
commits such an act, he shall not be penalized, but his guardian shall be instructed to subject him to strict discipline.

Article 13　Where a mentally disordered person commits an act against the administration of public security at the time when he
is unable to recognize or control his own conduct, he shall not be penalized, but his guardian shall be instructed to keep a strict
guard on him and to subject him to medical treatment. Where an intermittently insane person commits an act against the administration
of public security while in normal mental condition, he shall be penalized.

Article 14　Where a blind or deaf-mute person commits an act against the administration of public security, he may be give a relatively
light or mitigated penalty, or shall not be penalized.

Article 15　Where an intoxicated person commits an act against the administration of public security, he shall be penalized.

Where an intoxicated person in a drunken state may cause danger to himself or threatens another person’s personal safety or property
or public safety, protective measures shall be taken to restrain him until he sobers up.

Article 16　Where a person commits two or more acts against the administration of public security, decisions shall be made separately
but executed concurrently. Where penalties of administrative detention are concurrently executed, the maximum term of such detention
shall not exceed 20 days.

Article 17　Where an act is committed jointly against the administration of public security, the persons committing such act shall
be penalized separately, depending on the role played by each of them in the act.

Where a person instigates or coerces another person to act against the administration of public security, or lures the person into
such act, he shall be penalized according to the seriousness of the act committed as a result of his instigation, coercion or luring.

Article 18　Where a unit commits an act against the administration of public security, the persons directly in charge and the other
persons directly responsible shall be penalized in accordance with the provisions of this Law. Where other laws or administrative
regulations provide that penalty shall be imposed on a unit for the same act, the unit shall be penalized in accordance with the
provisions there.

Article 19　The penalty to be imposed on a person who commits an act against the administration of public security shall be mitigated,
or no penalty shall be imposed on him, under one of the following circumstances:

(1) The adverse effects are extremely minor;

(2) The person takes the initiative to remove or lessen the adverse effects, and gains the victim’s forgiveness;

(3) The act is committed under the coercion or luring by another person;

(4) The person surrenders himself to the police and truthfully states his illegal act to the public security organ; or

(5) The person has performed meritorious service.

Article 20　Under one of the following circumstances, a heavier penalty shall be imposed on a person who commits an act against
the administration of public security:

(1) The adverse effects relatively serious;

(2) The person instigates or coerces another person to commit an act against the administration of public security, or lures the
person into such act;

(3) The person retaliates against the reporter, accuser, informant or witness; or

(4) The person has been subjected to penalty for his act against the administration of public security within the past six months.

Article 21　Under one of the following circumstances, the penalty of administrative detention shall not be executed against the
person who has committed an act against the administration of public security, although such a penalty should be imposed on him/
her according to the provisions of this Law:

(1) The person has attained to the age of 14 but not to the age of 16;

(2) The person has attained to the age of 16 but not to the age of 18, and such act is committed for the first time;

(3) The person is over 70 years old; or

(4) The person is pregnant or breast-feeds her own baby who is not one year old.

Article 22　Where an act committed against the administration of public security is not discovered by the public security organ
within six months, the person committing such act shall no longer be penalized.

The period of time specified in the preceding paragraph shall be counted from the date the act is committed against the administration
of public security; and if such act is continual or continuing, the period of time shall be counted from the date the act ends.

Chapter III　Acts Against the Administration of Public Security and Penalties

Section 1　Acts Disturbing Public Order and Penalties

Article 23　A person who commits one of the following acts shall be given a warning or be fined not more than RMB 200 yuan; and
if the circumstances are relatively serious, he shall be detained for not less than 5 days but not more than 10 days and may, in
addition, be fined not more than 500 yuan:

(1) disturbing the order of government departments, public organizations, enterprises or institutions, thus making it impossible
for work, production, business operation, medical care, teaching or scientific research to go on normally but not having caused serious
losses;

(2) disturbing the public order at stations, ports, wharves, airports, department stores, parks, exhibition halls or other public
places;

(3) disturbing the public order on board of buses, trolleybuses, trains, ships, aircrafts and other means of public transportation;

(4) illegally intercepting or forcibly boarding or holding on to motor vehicles, ships, aircrafts and other means of public transportation,
thus hampering the normal operation of the means of public transportation; or

(5) disrupting the order of elections conducted according to law.

Where the acts mentioned in the preceding paragraphs are committed by a crowd, the ringleader shall be detained for not less than
10 days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan.

Article 24　A person who commits one of the following acts, thus disturbing the order of such large-scale activities of a mass character
as cultural and sports activities, shall be given a warning or be fined not more than 200 yuan; and if the circumstances are serious,
he shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan:

(1) forcibly entering the arena;

(2) setting off fireworks, firecrackers or other articles in the arena in violation of regulations;

(3) displaying such articles as humiliating slogans and streamers;

(4) joining with other persons in attacking a referee, player or any other worker;

(5) throwing odds and ends into the arena and turning a deaf ear to the order to stop; or

(6) other acts disturbing the order of large-scale mass activities.

A person on whom the penalty of detention is imposed because he disturbs the order of a sports competition may, at the same time,
be ordered not to enter a stadium or gymnasium to watch a competition of the same sport within 12 months; if he enters a stadium
or gymnasium in violation of the order, he shall be forcibly brought out of the spot.

Article 25　A person who commits one of the following acts shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not
more than 5 days or be fined not more than 500 yuan:

(1) intentionally disturbing public order by spreading rumors, making false reports of dangerous situations and epidemic situations
or raising false alarms or by other means;

(2) disturbing public order by putting in fake hazardous substances such as explosive, toxic, radioactive and corrosive substances
or pathogens of infectious diseases; or

(3) disturbing public order by threatening to set fire, set off explosions, or put in hazardous substances.

Article 26　A person who commits one of the following acts shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively serious, he shall be detained for
not less 10 than days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan:

(1) gang-fighting;

(2) chasing or intercepting another person;

(3) forcibly taking and obstinately seizing, or willfully damaging and occupying public or private property; or

(4) other provocative acts.

Article 27　A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days
and may, in addition, be fined not more than 1,000 yuan; and if the circumstances are relatively minor, he shall be detained for
not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan:

(1) organizing, instigating, coercing, inducing or inciting another person to engage in activities of cults, superstitious sects,
or secret societies, or making use of cults, superstitious sects, secret societies, or superstitious activities to disturb social
order and harm the health of another people; or

(2) disturbing social order and harming the health of another person by masquerading under the name of religion or qigong.

Article 28　A person who, in violation of State regulations, intentionally interferes with the normal operation of the radio business,
or brings about harmful interference with the normal operation of radio stations and refuses to take effective measures to eliminate
such interference after the competent department points out the fact, shall be detained for not less than 5 days but not more than
10 days; and if the circumstances are serious, he shall be detained for not less than 10 days but not more than 15 days.

Article 29　A person who commits one of the following acts shall be detained for not more than five days; and if the circumstances
are relatively serious, he shall be detained for not less than 5 days but not more than 10 days:

(1) in violation of State regulations, invading a computer information system, which causes harm to the system;

(2) in violation of State regulations, deleting, changing, increasing or interfering with the functions of a computer information
system, which makes it impossible for the system to operate normally;

(3) in violation of State regulations, deleting, changing or increasing the stored, processed or transmitted data and the application
program of a computer information system; or

(4) intentionally making up or transmitting such destructive programs as computer virus, which adversely affects the normal operation
of a computer information system.

Section 2　Acts Impairing Public Security and Penalties

Article 30　A person who, in violation of State regulations, manufactures, buys, sells, stores, transports, mails, carries, uses,
provides or disposes of hazardous substances such as explosive, toxic, radioactive and corrosive substances or pathogens of infectious
diseases shall be detained for not less than 10 days but not more than 15 days; and if the circumstances are relatively minor, he
shall be detained for not less than 5 days but not more than 10 days.

Article 31　A person who fails to report, as required by relevant regulations, when such hazardous substances as explosive, toxic,
radioactive and corrosive substances or pathogens of infectious diseases are stolen, robbed or lost shall be detained for not more
than five days; and if he intentionally conceals the fact, he shall be detained for not less than 5 days but not more than 10 days.

Article 32 A person who illegally carries such implements under control according to State regulations as firearms and ammunition,
or crossbows and daggers shall be detained for not more that five days and may, in addition, be fined not more than 500 yuan; and
if the circumstances are relatively minor, he shall be given a warning or be fined not more than 200 yuan.

A person who illegally carries such implements under control according to State regulations as firearms and ammunition, or crossbows
and daggers to a public place or aboard a public transportation means shall be detained for not less than 5 days but not more than
10 days and may, in addition, be fined not more than 500 yuan.

Article 33　A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days:

(1) stealing or destroying oil or gas pipe-line installations, electric power and telecommunications facilities, radio and TV facilities,
and water-conservancy and flood-control engineering facilities, or such public utilities as ones for hydrological monitoring, hydrographic
survey, meteorological monitoring and weather forecast, environmental monitoring, geological monitoring and seismologic monitoring;

(2) moving to another place or destroying boundary tablets and markers of the national border and other boundary markers and installations,
or marking installations of territorial land and waters; or

(3) conducting illegal activities affecting the alignment of the national border (frontier) line, or constructing installations which
hampers national border (frontier) administration.

Article 34　A person who steals, damages or moves to another place without permission aviation facilities in use, or forcibly enters
the control cabin of an aircraft shall be detained for not less than 10 days but not more than 15 days.

A person who uses implements or tools aboard an aircraft in use, which may impair the normal function of the navigation system, and
turns a deaf ear to dissuasions shall be detained for not more than 5 days or be fined not more than 500 yuan.

Article 35　A person who commits one of the following acts shall be detained for not less than five days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not
more than 5 days or be fined not more than 500 yuan:

(1) stealing, destroying or moving to another place without permission railway facilities, equipment, rolling stock appendages or
safety markers;

(2) placing obstacles on railway lines, or intentionally throwing things to trains;

(3) digging holes or quarrying and taking sand along railway lines, on bridges or in culverts; or

(4) privately setting up road junctions or level crossings on railway lines.

Article 36　A person who enters railway shelter networks without permission or walks, sits or lies down on railway lines, or rushes
across railway lines when a train is approaching, which endangers traffic safety, shall be given a warning or be fined not more than
200 yuan.

Article 37　A person who commits one of the following acts shall be detained for not more than five days or be fined not more than
500 yuan; and if the circumstances are serious, he shall be detained for not less than 5 days but not more than 10 days and may,
in addition, be fined not more than 500 yuan:

(1) installing or using electrified wire-nettings without permission, or installing or using them at variance with the regulations
on safety;

(2) failing to place covers, fences or warning signs for ditches, wells, ridges and holes when engaging in construction at places
where vehicles and pedestrians pass, or intentionally destroying or moving to another place the covers, fences or warning signs;
or

(3) stealing or destroying such public utilities as well covers on road surfaces and lighting facilities.

Article 38　Where an accident endangering safety may occur during such large-scale mass activities as cultural and sports activities
held in violation of relevant regulations, such activities shall be ordered to stop, and the participants shall be immediately evacuated;
the organizer shall be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than
200 yuan but not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not more than five days
or be fined not more than 500 yuan.

Article 39　Where the manager of a hotel, restaurant, cinema, theater, entertainment center, sports ground, exhibition hall or other
places for public activities violates regulations on safety, so that an accident endangering safety may occur at such a place, and
refuses to rectify after a public security organ orders him to do so, he shall be detained for not more than five days.

Section 3　Acts Infringing upon Rights of the Person and of Property and Penalties

Article 40　If a person commits one of the following acts, he shall be detained for not less than 10 days but not more than 15 days
and shall, in addition, be fined not less than 500 yuan but not more than 1,000 yuan; and if the circumstances are relatively minor,
he shall be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but
not more than 500 yuan:

(1) organizing or coercing persons who have not attained to the age of 16 or who are disabled to give terrifying or inhumane performances,
or luring such persons into giving such performances;

(2) forcing another person to work by means of violence or threat or other means; or

(3) illegally restricting another person’s freedom of the person, illegally breaking into another person’s house or illegally
making a body search of another person.

Article 41　A person who coerces another person to go begging, lures such person into begging or uses the person in begging shall
be detained for not less than 10 days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan.

A person who continually pesters or forcibly begs from another person or begs by other irritating means shall be detained for not
more than five days or be given a warning.

Article 42　A person who commits one of the following acts shall be detained for not more than five days or be fined not more than
500 yuan; and if the circumstances are relatively serious, he shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan:

(1) writing letters of intimidation or threatening the personal safety of another person by other means;

(2) openly humiliating another person or slandering another person by fabricating stories;

(3) framing-up another person by fabricating stories in an attempt to make the person subject to criminal investigation or to penalty
for administration of public security;

(4) threatening, humiliating or beating up a witness or his close relative or retaliating against either of them;

(5) repeatedly dispatching pornographic, humiliating, intimidating or other information to disturb the normal life of another person;
or

(6) peeping, secretly taking photos, eavesdropping, or spreading the privacy of another person.

Article 43　A person who beats up another person, or intentionally hurts the body of another person shall be detained for not less
than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but not more than 500 yuan; and if
the circumstances are relatively minor, he shall be detained for not more than five days or be fined not more than 500 yuan.

A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days and shall, in
addition, be fined not less than 500 yuan but not more than 1,000 yuan:

(1) gang-fighting and hurting another person;

(2) beating up and hurting a disabled person, pregnant woman, or a person who has not attained to the age of 14 or who is over 60
years old; or

(3) beating up and hurting another person for more than two times, or beating up and hurting more than two persons once.

Article 44　A person who molests another person or intentionally exposes his/her body in a public place, if the circumstances are
abominable, shall be detained for not less than 5 days but not more than 10 days; if a person molests a mentally disabled person,
or a person suffering mental disorder, or a person who has not attained to the age of 14, or commits such act with other serious
circumstances, he shall be detained for not less than 10 days but not more than 15 days.

Article 45　A person who commits one of the following acts shall be detained for not more than five days or be given a warning:

(1) maltreating a family member, who demands handling of the matter; or

(2) abandoning a supported person who can not look after himself.

Article 46　A person who forcibly buys or sells commodities, forces another person to provide services or to accept services shall
be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but not more
than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not more than five days or be fined not more
than 500 yuan.

Article 47　A person who incites national hatred or national discrimination, or publishes contents about national discrimination
or humiliation in publications or computer information networks shall be detained for not less than 10 days but not more than 15
days and may, in addition, be fined not more than 1,000 yuan.

Article 48　A person who claims under false pretences, hides, destroys, discards, stealthily opens or illegally examines the mail
of another person shall be detained for not more than five days or be fined not more than 500 yuan.

Article 49　A person who steals, defrauds, forcibly seizes, openly robs, racketeers or intentionally destroys public or private
property shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan;
and if the circumstances are relatively serious, he shall be detained for not less than 10 days but not more than 15 days and may,
in addition, be fined not more than 1,000 yuan.

Section 4　Acts Impeding Social Administration and Penalties

Article 50　A person who commits one of the following acts shall be given a warning or be fined not more than 200 yuan; and if the
circumstances are serious, he shall be detained for not less than 5 days but not more than 10 days, and may, in addition, be fined
not more than 500 yuan:

(1) refusing to carry out the decision or order issued according to law by the people’s government in a state of emergency;

(2) obstructing the staff member of a government department from performing his duties according to law;

(3) obstructing the passage of such vehicles as fire engines, ambulances, engineering emergency trucks and patrol wagons on emergency
duties; or

(4) forcibly breaking through a warning belt or area set up by a public security organ.

A person who obstructs the people’s police from performing their duties according to law shall be given a heavier penalty.

Article 51　A person who pretends to be a staff member of a government department or uses another false identity to practice fraud
shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan; and

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Probate

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