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ANNOUNCEMENT NO.37, 2006 OF THE MINISTRY OF COMMERCE, THE STATE ENVIRONMENTAL PROTECTION ADMINISTRATION OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.37, 2006 of the Ministry of Commerce, the State Environmental Protection Administration of the People’s Republic of
China

In accordance with related regulations of Administrative Measures on Import and Export of Ozone-Depleting Substances (ODSs, No.278,
2003) jointly released by State Environmental Protection Administration, the former Ministry of Foreign Trade and Economic Cooperation
and General Administration of Customs, the gross volume of import quotas of controlled chlorofluorocarbons (CFCs) and the detergent
TCA in 2006 and related matters are now announced as follows for purposes of making good to the international conventions, phasing
out the production and consumption of ODSs and encouraging the use of ODSs substitutes.

1.

In line with principle of gradually cutting down the consumption of ODSs year by year and actual status of domestic productions and
consumption of ODSs, the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and the detergent
TCA in 2006 are 380 and 2,200 ton (please refer to Appendix for details).

2.

For the time being, 70 percent of the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and
the detergent TCA will be distributed, and the other 30 percent will be distributed in accordance with actual demands of both domestic
and overseas markets in September of 2006.

3.

Enhancing administration on quotas licensing of CFCs and controlling the gross volume of exports of CFC￿￿11, CFC￿￿12 and Halon 1301.
Enterprises shall submit the declaration forms of export and the duplicates to National Office of Import and Export Administration
of Ozone-Depleting Substances for registration immediately after finishing the contracts.

4.

In accordance with Administrative Measures on Import and Export of Ozone-Depleting Substances and Regulations on Strengthening Administration
on Import and Export of Ozone-Depleting Substances (No.85, 2000), enterprises applying for import quotas of CFCs and the detergent
TCA shall put forward applications to National Office of Import and Export Administration of Ozone-Depleting Substances and then
applying for import and export license to license-releasing organs authorized by Ministry of Commerce with Notice of Examination
and Approval of Import and Export of Controlled Ozone-Depleting Substances released by Office of Import and Export Administration.

Appendix: Form of Gross Volume of Import Quotas of Controlled Ozone-Depleting Substances in 2006 (omitted)

Ministry of Commerce

State Environmental Protection Administration

May 9, 2006



 
Ministry of Commerce, State Environmental Protection Administration
2006-05-09

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES ABOUT THE ADJUSTMENT OF FOREIGN EXCHANGE POLICIES ON PART OF THE INSURANCE BUSINESSES

Circular of the State Administration of Foreign Exchange on Relevant Issues about the Adjustment of Foreign Exchange Policies on Part
of the Insurance Businesses

Hui Fa [2006] No. 23
May 23, 2006

The branches and foreign exchange management departments under the State Administration of Foreign Exchange (SAFE) in all provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo; all designated Chinese-funded foreign exchange banks, and all insurance companies,

For the purpose of facilitating the operation of insurance companies, and promoting the development of the insurance industry, the
SAFE determines to adjust the provisions on foreign exchange management on part of the insurance businesses, and makes the following
circular on relevant issues:

I.

The domestic insurance company that operates foreign exchange insurance business upon approval (including Chinese-funded insurance
companies, Sino-foreign joint venture insurance companies, solely foreign-funded insurance companies and the branches of foreign
insurance companies) and its branches (hereinafter referred to as the “insurance operation institutions”) shall make the following
adjustment on the foreign exchange policy for the insurance contracts which comply with the conditions prescribed in Articles 33
and 34 of the Interim Provisions on Foreign Exchange Management of Insurance Business (Hui Fa [2002] No.95), and are valued and
compensated with foreign exchange:

1.

The provisions that insurance operation institutions shall collect insurance premiums in foreign exchange shall be adjusted as: the
insurance operation institutions may choose Renminbi or foreign exchange in collection of insurance premiums, but shall not collect
foreign currency cash.

2.

The provisions that insurance operation institutions may pay compensations or reimburse insurance money with their self-owned foreign
exchange shall be adjusted as: the insurance operation institutions may pay insurance money from their foreign exchange accounts
or pay it by purchasing foreign exchange at the designated foreign exchange banks on the strength of the relevant insurance contracts
and claims computation letters.

II.

The domestic insurance operation institutions or insurance assets management companies may, upon the need of operation, make conversion
between foreign currencies at designated foreign exchange banks to adjust the kinds of their foreign exchange currencies.

III.

The restrictions on the purchase of foreign exchange by domestic insurance companies for handling overseas reinsurance ceding business
shall be cancelled. When dealing with overseas reinsurance ceding business of domestic insurance according to the relevant provisions
of the China Insurance Regulatory Commission, the domestic insurance operation institution that undertakes foreign exchange reinsurance
business upon the approval of SAFE or its branch administrations may make the payment of foreign exchange directly or through purchasing
foreign exchange at the designated foreign exchange banks in accordance with the actual need of operation and upon the strength of
the reinsurance contract, reinsurance policies or reinsurance lists of payment and other effective credences.

IV.

In accordance with the Notice of the State Administration of Foreign Exchange on Relevant Issues concerning the Submission of Foreign
Exchange Regulatory Statements on Insurance Business (Hui Fa [2003] No.27), the domestic insurance operation institutions shall
fill in the Statistical Forms for Foreign Exchange Insurance Business of Insurance Companies, and shall, in the column of “remarks”,
specify the information on the payment of foreign exchange for overseas reinsurance business of the last quarter. If they make the
payment by purchasing foreign exchange, they shall list the relevant amount of foreign exchange purchased, time of purchase, and
other contents.

V.

The present Notice shall enter into effect as of June 1, 2006. If there is any conflict in the previous provisions with this Circular,
the latter shall prevail. The Notice of the State Administration of Foreign Exchange and the China Insurance Regulatory Commission
on Relevant Issues concerning the Sale and Payment of Foreign Exchange for Overseas Reinsurance Ceding Business (Hui Fa [2003] No.75)
shall be abolished simultaneously.

After this Circular is received, each branch administration shall forward it to the insurance companies and foreign-funded banks within
its jurisdiction as soon as possible. Each Chinese-funded designated foreign exchange bank shall forward it to its subordinated branches
and subsidiaries as soon as possible. If any problem is encountered in the implementation, please feed back to the State Administration
of Foreign Exchange in time.

Contact Telephone: 010-68402381

Fax: 010-68402272



 
State Administration of Foreign Exchange
2006-05-23

 






MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR ADMINISTRATION OF THE ORIGIN OF IMPORT GOODS UNDER THE SPECIAL PREFERENTIAL TARIFF TREATMENTS

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

No. 149

The Measures of the Customs of the People’s Republic of China for Administration of the Origin of Import Goods under the Special Preferential
Tariff Treatments were deliberated and adopted at the Executive Meeting of the General Administration of Customs on May 30, 2006
and are hereby promulgated, and shall come into force as of July 1, 2006. Provisions of the Customs of the People’s Republic of China
on the Implementation of the Rules of Origin of Goods under Special Preferential Tariff Treatments Given by the People’s Republic
of China to the Least-developed African Countries as promulgated as Decree No. 123 by the General Administration of Customs on December
30, 2004 shall be abolished simultaneously.

Mu Xinsheng, Director of the General Administration of Customs

May 31, 2006

Measures of the Customs of the People’s Republic of China for Administration of the Origin of Import Goods under the Special Preferential
Tariff Treatments

Article 1

The present Measures are formulated in accordance with the Customs Law of the People’s Republic of China, the Regulations of the
Origin of Imports and Exports of the People’s Republic of China, rules of origin of goods under the special preferential tariff treatments
of China as well as provisions of relevant laws and administrative regulations for the purposes of correctly determining the origin
of import goods under the special preferential tariff treatments and promoting the economic and trade contacts between China and
relevant countries.

Article 2

The present Measures shall apply to the goods which are imported from the beneficiary countries (see the name list in Appendix 1)
under special preferential tariff treatments. But goods imported in bond and for home use by means of processing trade shall be excluded.
Any change in the name list of beneficiary countries shall be otherwise promulgated by the General Administration of Customs.

Article 3

If the goods are directly imported from a beneficiary country and in accordance with one of the conditions as follows, their place
of origin shall be the said beneficiary country and the corresponding special preferential tariff rates provided in the Import and
Export Tariff Regulations of the People’s Republic of China (hereinafter referred to as Tariff Regulations) shall be applied.

(1)

entirely obtained from or manufactured in the beneficiary country; or

(2)

incompletely obtained from or manufactured in the beneficiary country but where the final substantial transformation is completed.

Article 4

Goods “entirely obtained from or manufactured in the beneficiary country” as mentioned in Item (1) of Article 3 of the present Measures
refer to:

(1)

The mineral products exploited and excavated from this country;

(2)

The plants or their products harvested from this country;

(3)

The live animals borne and raised in this country;

(4)

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

(5)

The products obtained from hunting or fishing in this country;

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

Article 5

Any of the following types of minor processing or treatment, no matter whetherer it is completed independently or together with the
others, may not affect the determination on whether the products are entirely obtained from or produced in a country or not:

(1)

The processing or treating carried out in order to preserve the goods during transportation or storage;

(2)

The processing or treating carried out to facilitate the loading and unloading of the goods; or

(3)

The packing, exhibiting and other types of processing or treating carried out in order to sell the goods.

Article 6

The criteria on the determination of “substantial transformation” specified in Item (2) of Article 3 of the present Measures shall
be the criterion of “the change in tariff item classification” or the criterion of “ad valorem percentage”.

(1)

The criterion of “the change in tariff item classification” means that, the tariff code in the Tariff Regulations of the raw materials
which do not originate from the beneficiary country used during the production or processing of goods in the said country is any
code other than the 4-digit tariff code of the aforesaid goods.

(2)

The criterion of “ad valorem percentage” means that, following the manufacturing and processing in the beneficiary country using materials
which do not originate from the said country, the value added portion may not be less than 40% of the resulting goods. The calculating
formula shall be:

Price of Goods * Price of Materials Not Originating from the Beneficiary Country

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿ ￿￿100%￿￿0%

Price of Goods

“Price of Goods” refers to the price of FOB which, no matter what way the goods shall be transported, shall always be the price at
the final port of shipment or site.

“Price of Materials Not Originating from the Beneficiary Country” refers to the price of the materials used by the manufacturers which
do not originate from the beneficiary country, including the import costs as well as the insurance and freight for transporting them
to the port of destination or site.

The calculation of the above-mentioned “ad valorem percentage” shall comply with the universally acknowledged accounting rules as
well as the Customs Evaluation Agreement.

Article 7

The simple dilution, mix, packing, bottling, drying, assembly, classification or decoration may not be deemed as substantial transformation.
Any production or pricing measures, made by enterprises for the purpose of circumventing the present Measures, may not be deemed
as substantial transformation.

Article 8

In the determination of the origin of goods, the origin of the energy, workshops, equipment, machines and tools employed during the
production course of goods, as well as the origin of the materials that are employed during the production course but do not constitute
any component or constituent part of the goods, may not affect the determination of the origin of goods.

Article 9

The origin of the packages, packing materials and containers that are declared and uniformly classified into the same category of
the goods under the Tariff Regulations together with that of the accessories, spare parts, tools and introductory materials with
which the said goods are regularly accompanied, may not affect the determination of the origin of the goods.

Article 10

The imported goods that are to declare the special preferential tariff treatments shall be transported directly from the beneficiary
country into the territories of China without transiting a third country (region) apart from China and the beneficiary country (hereafter
referred to as a third country (region)).

As regards goods which transit a third country (region) into the territories of China, if the following conditions are satisfied,
it will be deemed as direct transportation:

(1)

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

(2)

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

(3)

the goods don’t enter a third country (region) for trade or consumption.

Article 11

When declaring goods under the special preferential tariff treatments, the consignee of imports shall offer the following documents
to the entry Customs:

(1)

A certificate of origin issued by an issuance institution of a beneficiary country bearing the seal of the Customs of the country
when exporting the goods (see the format in Appendix 2);

(2)

Through Bill of Lading issued by the beneficiary country or that issued by other countries (regions) as the departure station of international
through transport; and

(3)

The original invoice of the goods issued by the beneficiary country.

As regards imported goods transiting a third country (region), relevant documents that, according to the Customs of China, are necessary
to certify that the provisions specified in Item (2) of Article 10 are satisfied shall be offered.

Article 12

The certificate of origin offered by the consignee of imports to the Customs, shall be issued by an official institution of a beneficiary
country and shall be valid for a period of 180 days as of the date of issuance.

The certificate of origin shall be printed on A4 paper, and the words on the face shall be in English. A certificate of origin shall
consist of 1 original and 3 duplicates: color of the original shall be apricot cream and that of the duplicates light green. The
duplicates include the second duplicate, the third duplicate and the fourth. The second duplicate shall be prepared for the verification
where the Customs of the People’s Republic of China considers necessary, the third duplicate shall be kept by the issuance institution
of the export country and the fourth duplicate shall be kept by the exporter. When declaring the goods, the consignee of imports
shall offer the original certificate of origin and the second duplicate to the entry Customs.

The name and address of the issuance institution of the certificate of origin as well as the seal and the pattern hereof shall be
kept for record by the General Administration of Customs of the People’s Republic of China.

Article 13

When declaring the import goods, the consignee of import goods shall, on its own initiative, declare to the Customs that the relevant
goods are under the special preferential tariff and shall submit the certificate of origin bearing the seal of the Customs of the
export country. The entry Customs shall in line with files on record by the beneficiary country, verify the certificate of origin
of relevant goods, and permit the import goods to enjoy the special preferential tariff upon the strength of the valid certificate
of origin and relevant documents.

Article 14

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

During the period of waiting for the result of verification of the certificate of origin of the beneficiary country, the entry Customs
may, at the request of the consignee of imports, release the goods after it charges a sum of security deposit equivalent to the amount
of tariff calculated under the most favored nation tariff rate applicable to the goods, and it shall handle the import procedures
in accordance with the relevant provisions and complete the corresponding statistical work of the Customs. After the Customs of the
export country or the issuance institution of the certificate of origin completes the verification, the entry Customs shall, in accordance
with the verification result, promptly handle the formalities for refunding the security deposit or converting the security deposit
to the import Customs tariff, and make correct the relevant statistic data. As for import goods on which the State place restrictions
or those suspected of being against the law, the Customs may not release the goods before the verification of the certificate of
origin comes to an end.

Article 15

The Customs shall have the obligation to maintain in confidence the trade secrets they obtained on the condition of being in compliance
with the provisions of the present Measures. Without the coonsignee’s consent, the Customs may not reveal or put these secrets into
other use, except as otherwise provided by law, administrative regulations and relevant judicial interpretation.

Article 16

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

Article 17

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

The “beneficiary country” refers to the country or region with whom China has signed exchange of notes concerning special preferential
tariff treatments.

“Customs Evaluation Agreement” refers to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade
1994, which serves as part of Marrakech Agreement Establishing the World Trade Organization.

The “materials” refer to components, spare parts, constituent parts, semi-assembly, etc. that have actually constituted part of another
product or has been used in the production course of another product.

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

Article 18

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

Article 19

The present Measures shall be implemented as of July 1, 2006. Provisions of the Customs of the People’s Republic of China on the
Implementation of the Rules of Origin of Goods under Special Preferential Tariff Treatments Given by the People’s Republic of China
to the Least-developed African Countries as promulgated as Decree No. 123 by the General Administration of Customs on December 30,
2004 shall be abolished simultaneously.

Appendix:

1. Name List of the Beneficiary Countries (Omitted)

2. Format of Certificates of Origin (Omitted)



 
The General Administration of Customs
2006-05-31

 






ANNOUNCEMENT NO. 43, 2006 OF MINISTRY OF COMMERCE ON STARTING ANTI-DUMPING INVESTIGATION ON IMPORTED SULFAMETHOXAZOLE

Announcement No. 43, 2006 of Ministry of Commerce on Starting Anti-dumping Investigation on Imported Sulfamethoxazole

[2006] No. 43

Ministry of Commerce announced an anti-dumping investigation on imported Sulfamethoxazole originating in India (hereinafter referred
to as “investigated product “) on June 16, 2006.

In respond to an appeal from domestic industry on April 21, 2006, Ministry of Commerce examined related issues and evidence. Since
the examination shows the appeal is in line with Article 11 , 13 and 17 and includes related contents and evidence of Article 14
and 15 of Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce decided to start an anti-dumping investigation
on the investigated product as of June 16, 2006.

1.

The period of dumping investigation is from January 1, 2005 to December 31, 2005. The period of industry injury investigation is
from January 1, 2002 to December 31, 2005.

2.

The investigated product is classified under Tariff No. 29350030 in Customs Tariff of Import and Export of the People’s Republic
of China.

3.

Interested parties can apply to Bureau of Fair Trade for Imports and Exports or Bureau of Industry Injury Investigation of Ministry
of Commerce for responding to the charges within 20 days as of the date the Announcement is issued.

At the same time, the related exporters and producers should provide the quantity and amount of the product exported to mainland China
during January, 2005 to December, 2005. Registration Form on Dumping Investigation can be downloaded from

https://gpj.mofcom.gov.cn.

Besides, the interested parties should provide explanation materials on production capacity, output, storage, construction plans,
and quantity and amount of the product exported to mainland China during the period of investigation on injury to domestic industry.
Registration form on Industry Injury Investigation can be downloaded from https://www.cacs.gov.cn.

4.

If the interested parties are not registered responding to charges within the fixed time limit, Ministry of Commerce shall have the
right to refuse their materials and make adjudication according to the available materials.

5.

Interested parties can submit their written opinions to Ministry of Commerce in 20 days as of the date when the Announcement is issued
if they have objections to the qualifications of the applicants, the investigated products, investigation range and other issues.

Interested parties can look up the unclassified version of the application handed in by the applicants at Open Information Look-up
Office of Ministry of Commerce during the above-mentioned period.

6.

Investigation measures can be conducted by questionnaire, sampling, hearing and examination on the spot.

7.

The investigation begins on June 16, 2006 and last 1 year normally. In case of special situation, it could be extended to December
16, 2007.

8.

Address of Ministry of Commerce:

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports:

Tel: 86-10-65197354, 65198497, 65198740

Fax: 86-10-65198172, 65198164

Bureau of Industry Injury Investigation:

Tel: 86-10-65198184, 65198190, 65198070

Fax: 86-10-65197583

Ministry of Commerce

June 16, 2006



 
Ministry of Commerce
2006-06-16

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING PRINTING AND DISTRIBUTING THE PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS ON THE AVOIDANCE OF DOUBLE TAXATION AND GETTING PREPARED FOR ITS IMPLEMENTATION

Circular of the State Administration of Taxation concerning Printing and Distributing the Protocol to the Agreement between the Government
of the People’s Republic of China and the Government of the Republic of Mauritius on the Avoidance of Double Taxation and Getting
Prepared for Its Implementation

Guo Shui Han [2006] No. 833

The bureaus of state taxes and those of local taxes of each province, autonomous region, municipality directly under the Central Government,
and city specially designated in the state plan:

The Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income between the Chinese
Government and government of the Republic of Mauritius was formally subscribed by Xie Xuren, Director of the State Administration
of Taxation of China, and Mr. Paul R. Lit Fong Chong Leung, Ambassador of Mauritius to China, in Beijing on September 5, 2006. After
both contracting states have completed their respective legal procedures the Agreement shall be effective. The text of the Agreement
is hereby printed and distributed to you. Please prepare well before the carrying out of the Agreement.

Appendix: The Agreement between the Government of the People’s Republic of China and the Government of the Republic of Mauritius on
the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

State Administration of Taxation

September 8th, 2006
Appendix:
The Agreement between the Government of the People’s Republic of China and the Government of the Republic of Mauritius concerning
the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income

The Government of the People’s Republic of China and the Government of the Republic of Mauritius, desiring to conclude a protocol
to make revision on the Agreement between the Government of the People’s Republic of China and the Government of the Republic of
Mauritius on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income (hereinafter referred
to as “Agreement”) concluded in Beijing on August 1, 1994, have agreed as follows:

Article 1 .

1.

The following paragraph shall be added in Article 13 in the Agreement as Paragraph 5:

“5. The gains reaped by a resident of a contracting party out of transferring stocks, any other kind of interest in companies or other
rights held in a resident company of the other contracting party may be taxed in that other contracting state if the person has once
directly or indirectly participated in the ownership of at least 25% of the capital of this company within 12 months.”

2.

Paragraph 5 in Article 13 of the original Agreement shall be canceled and taken place by the following Paragraph:

“6. The gains reaped out of the alienation of the properties except those as specified in paragraphs from 1 to 5 shall only be taxed
in the contracting state of which the alienator is a resident.”

Article 2 .

Article 26 of the original Agreement shall be canceled and taken place by the following Article:

“Article 26 Exchange of Information

1.

The competent authorities of the contracting states shall exchange the intelligence which may be foreseen to be related with the carrying
out of the provisions of this Agreement or of the domestic laws concerning various kinds of taxes levied by the contracting states
or their local authorities, insofar as the taxation thereunder is not contrary to this Agreement. The exchange of intelligence shall
not be restricted by Article 1 and Article 2 .

2.

Any intelligence received by a contracting state in accordance with Paragraph 1 shall be treated as secret in the same manner as intelligence
obtained according to the domestic laws of that contracting state and shall be informed only to the persons or authorities (including
courts and administrative departments) and their supervision departments concerning the assessment, collection, enforcement, prosecution
or appeal judgment of the taxation categories as indicated in Paragraph 1. Such persons or authorities shall use the intelligence
only as purposes like these, but may disclose the intelligence in public court proceedings or in court judgments.

3.

The provisions of Paragraph 1 and Paragraph 2 shall be understood as imposing the following obligations on a contracting state on
no condition:

(1)

Administrative measures in violation of the laws and administrative practices of that or of the other contracting state should be
taken;

(2)

Providing intelligence that is not available according to the laws or through the normal administrative courses of that or of the
other contracting state;

(3)

Providing intelligence that would disclose any trade, business, industrial, commercial, or professional secret or trade process, or
any intelligence the disclosure of which would in violation of public policy (public order).

4.

Where a contracting state requests for intelligence subject to the present Article, the other contracting party shall obtain the intelligence
requested in the manner of information acquisition, even the other contracting party may do not need such intelligence for the purposes
of taxation . The obligation defined in the front sentence shall be restricted by Paragraph 3, but the restriction shall be understood
on no condition as allowing a contracting state to refuse to provide such intelligence because it has no domestic benefits.

5.

The provision of Paragraph 3 shall be understood on no condition as allowing a contracting state to refuse the provision of such intelligence
only because the intelligence is possessed by any bank, any other financial institution, designated representative, agent or trustee,
or because the intelligence in respect of people’s ownership equity.”

Article 3 .

The governments of the contracting states shall confirm the completion of their respective legal procedures which is indispensable
to entry into force of this Protocol through diplomatic exchange of letters. This Protocol shall go into effect as of the date a
later letter is sent, and shall apply to:

(1)

As regards China, the gains derived during the taxable years beginning on or after the first day of January of the next year following
the year in which the present Arrangement goes into effect;

(2)

As regards Mauritius, the gains derived during the taxable years beginning on or after the first day of July of the next year following
the year in which the present Arrangement goes into effect.

Article 4 .

This Protocol shall be valid permanently with the Agreement.

In witness whereof the undersigned, the following representatives, as officially authorized, have signed on this Protocol.

This Protocol was signed in Beijing on September 5, 2006. It is in duplicate and is written in Chinese and English. In case any divergence
as to the interpretation of the text arises, the English version shall prevail.

Government of People’s Republic of China Government of the (Representative)

Xie Xuren

Republic of Mauritius

(Representative)

Mr. Paul R. Lit Fong Chong Leung



 
State Administration of Taxation
2006-09-08

 






THE QUANTITY, THE APPLICATION CONDITIONS AND THE PRINCIPLE OF THE DISTRIBUTION OF THE IMPORT TARIFF QUOTAS OF GRAIN AND COTTON OF 2007

Announcement of National Development and Reform Commission

No. 64

“The Quantity, Application Conditions and Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton” of 2007 is
formulated in accordance with the “Interim Measures for Administration of Tariff Quota of Import of Agricultural Products” and is
hereby promulgated.

Appendix: The Quantity, Application Conditions and Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton in
2007

National Development and Reform Commission of PR. China

September 18, 2006

The Quantity, the Application Conditions and the Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton of
2007

According to the “Interim Measures for the Administration of the Import Tariff Quotas of Agricultural Products” (Decree No.4 of the
Ministry of Commerce and the National Development and Reform Commission of 2003), issues concerning the quantity, the application
conditions and the principle of the distribution of the import tariff quotas of grain and cotton of 2007 are hereby promulgated as
follows:

1,

The quantity of the import tariff quotas of grain and cotton of 2007 is: 9.636 million tons of wheat, of which the state-run trade
reaches 90%; 7.2 million tons of corn, of which the state-run trade reaches 60%; 5.32 million tons of rice (among which: 2.66 million
tons of long-grain rice, 2.66 million tons of medium-and-short-grain rice), of which the state-run trade reaches 50%; 8.94 tons of
cotton, of which the state-run trade reaches 33%.

2,

Any enterprise that imports the aforesaid agricultural products in such trade forms as general trade, processing trade, barter trade,
small amount of border trade, assistance, donation, shall apply for the import tariff quotas of agricultural products, and handle
the formalities of Customs clearance by virtue of the certificate of the import tariff quotas of agricultural products. The products
entering bonded warehouses, bonded areas and export-oriented processing areas from abroad, shall be exempted from applying for the
certificate of the import tariff quotas of agricultural products.

3,

The fundamental conditions of the applicant who applies for the import tariff quotas of agricultural products are: Having registered
with the administration for industry and commerce of the state (a copy of the business license of the enterprise as a legal person
is required); Having good financial situation and tax payment record (it is necessary to provide relevant materials of 2005and 2006);
having no violation record in the field of the customs, industry and commerce, taxation, as well as inspections and quarantines from
2004 to 2006; having passed the annual examination of enterprises of 2005; committing no violation of the “Interim Measures for the
Administration of the Import Tariff Quota of Agricultural Products”.

On the premise of the above-mentioned conditions, the applicant of import tariff quotas shall also conform to one of the following
conditions:

(1)

. Wheat

(a)

State-run trade enterprise

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Manufacturing enterprise processing more than 400 tons of wheat every day; or

(e)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2006, but is enpost_titled to operate the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

(2)

. Corn

(a)

State-run trade enterprise;

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Mixed fodder manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 50 thousand tons of
corn;

(e)

Other manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 100 thousand tons of corn;
or

(f)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2006, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

(3)

. Paddy and rice (respective application for long-grain rice and medium-and-short-grain rice is required)

(a)

State-run trade enterprise;

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Enterprise which has grain wholesale and retail qualifications and whose annual sale amount is more than 100 million RMB;

(e)

Trade enterprise whose annual amount of import and export grain is more than 25 million US dollars; or

(f)

Enterprise which is engaged in processing trade in which paddy and rice are taken as raw materials, and which has no actual achievements
in import in 2006, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive
capacity of processing trade issued by the local competent department of foreign trade and economic cooperation.

(4)

. Cotton

(a)

State-run trade enterprise;

(b)

Enterprise with actual achievements in import in 2006; or

(c)

Cotton and textile enterprise with more than 50 thousand ingots of weaving equipments;

4,

The import tariff quotas of the above-mentioned agricultural products will be distributed in accordance with the applicant’s application
quantities, historic actual achievements in import, productive capacity, and other relevant commercial standards.

(1)

. If the quantity of the import tariff quotas may satisfy the overall application quantity of the eligible applicants, the quantity
of the import tariff quotas shall be distributed according to the applicant’s application quantity.

(2)

. If the quantity of the import tariff quotas can not satisfy the overall application quantity of the eligible applicants, the applicants
with actual achievements in import may have priority in obtaining quotas, while the applicants without actual achievements in import,
mainly based on their processing capacity or operation quantity, shall be distributed the import tariff quotas in proportion. If
the application quantity is less than the quantity distributed in proportion, the distribution shall accord with the application
quantity.

5,

The date of application of the import tariff quotas of grain and cotton in 2007 shall be from October 15 to October 30, 2006. The
applicants may obtain the “application form of the import tariff quotas of agricultural products” (See the appendix) from the institution
entrusted by the National Development and Reform Commission or download it in the website of the National Development and Reform
Commission (https://www.ndrc.gov.cn), and shall fill it in truthfully.

6,

The institution entrusted by the National Development and Reform Commission shall be responsible for accepting enterprises’ applications
within its territory, and submit the applications that conform to the publicly announced conditions to the National Development and
Reform Commission prior to November 30, 2006. At the same time, a copy of aforesaid application shall be submitted to the Ministry
of Commerce.

7,

The National Development and Reform Commission shall distribute the import tariff quotas of agricultural products to the final users
via the entrusted institutions prior to January 1, 2007.

Appendix: the Application Form of the Import Tariff Quotas of Agricultural Products



 
National Development and Reform Commission
2006-09-18

 






ANNOUNCEMENT NO.5, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

General Administration of Customs

Announcement No.5, 2006 of the General Administration of Customs of the People’s Republic of China

[2006] No.5

In accordance with regulations of Anti-dumping Regulations of People’s Republic of China, Tariff Committee of the State Council decided
to impose anti-dumping duties on cyclic dimethyl siloxane originating from Japan, the United States, Britain and Germany as form
Jan 16, 2006. Ministry of Commerce released Ministry of Commerce Announcement No.123, 2005 (hereinafter referred to as Ministry of
Commerce Announcement No.123) exactly on the day of Jan 16, 2006. In accordance with regulations of Anti-dumping Regulations of People’s
Republic of China, General Administration of Customs released General Administration of Customs Announcement No.3, 2006 (hereinafter
referred to as General Administration of Customs Announcement No.3) on implementation of Ministry of Commerce Announcement No.123
subsequently.

Since General Administration of Customs adjusted the 10-digit commodity codes of related cargoes of Ministry of Commerce Announcement
No.123, related matters on anti-dumping measures on cyclic dimethyl siloxane are now announced as follows for complementary:

1.

As form release of this announcement, when going through declaration formalities of cyclic dimethyl siloxane under tariff items of
29310000 and 38249090, consignees of imported cargoes should substitute 2931000050 for 2931000022 in case of any compound of D3,
D4, D5 and D6 described in Ministry of Commerce Announcement No.123.

2.

Besides above adjustments on commodity codes declaration, please follow General Administration of Customs No.3 for implementation
of other affairs related to anti-dumping duties of cyclic dimethyl siloxane originating from Japan, the United States, Britain and
Germany.

General Administration of Customs

Jan 27, 2006



 
General Administration of Customs
2006-01-27

 






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

Ministry of Commerce

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

[2006] No.7

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

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

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

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

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

Companies of U.S.:

1.

FMC: 44%

2.

All Others: 113.2%

Companies of Japan: 113.2%

Companies of EU: 113.2%

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

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

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

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

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

Ministry of Commerce

February 12, 2006



 
Ministry of Commerce
2006-02-12

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 13 – CONTINGENCIES

The Ministry of Finance

Accounting Standards for Enterprises No. 13 – Contingencies

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

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

Article 2

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

Article 3

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

Chapter II Recognition and Measurement

Article 4

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

(1)

That obligation is a current obligation of the enterprise;

(2)

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

(3)

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

Article 5

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

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

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

(1)

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

(2)

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

Article 6

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

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

Article 7

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

Article 8

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

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

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

Article 9

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

Article 10

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

(1)

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

(2)

The restructuring plan has been proclaimed to the general public.

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

Article 11

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

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

Article 12

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

Article 13

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

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

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

Chapter III Disclosure

Article 14

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

(1)

Estimated debts

(a)

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

(b)

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

(c)

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

(2)

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

(a)

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

(b)

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

(c)

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

(3)

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

Article 15

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



 
The Ministry of Finance
2006-02-15

 






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

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

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

Shang Zi Fa [2006] No.1

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

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

Ministry of Commerce

Ministry of Finance

General Administration of Customs

State Administration of Taxation

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

Article 1

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

Article 2

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

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

Article 3

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

Article 4

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

Article 5

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

Article 6

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

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

Article 7

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

Article 8

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

Article 9

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

1.

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

2.

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

3.

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

Article 10

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

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

Article 11

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

Article 12

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

Article 13

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

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

Article 14

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

Article 15

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

Article 16

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



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

 






1...212223...25Page 22 of 25

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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