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LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING DBS BANK (HONG KONG) LIMITED TO ESTABLISH SUZHOU BRANCH

Letter of China Banking Regulatory Commission concerning Approving DBS Bank (Hong Kong) Limited to Establish Suzhou Branch

DBS Bank (Hong Kong) Limited,

The letter which was signed by Wang Xipei, the person-in-charge of the preparatory establishment team of Suzhou Branch, and the related
documents concerning the establishment of Suzhou Branch have been received.

Your bank is hereby approved to establish Suzhou Branch whose name is DBS Bank (Hong Kong) Limited Suzhou Branch and whose address
is Rooms 1b, 2, 3, 5 of the 7th floor of International Tower, No. 2 of Suhua Lu, Suzhou Industrial Park, Suzhou City according to
the Regulation of the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 340 of
the State Council, hereinafter referred to as the Regulation) and the Detailed Rules for the Implementation of the Regulation of
the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 4,2004 of China Banking
Regulatory Commission, hereinafter referred to as the Detailed Rules). Ang Mob Chuan is approved to have the qualifications as the
president of this Branch. The working capital of this Branch is in convertible currencies which is equivalent to 200 million Yuan.
According to Article 32 of the Detailed Rules, this Branch may trade in the foreign exchange business to various clients under the
following the scope: pooling public deposits, granting short term, medium-term and long-term loans, transacting acceptance and discount
of negotiable instruments, buying and selling government bonds and financial bonds, buying and selling non-stock negotiable instruments
denominated in a foreign currency, providing services on letter of credit and guaranties, transacting domestic and overseas settlements,
buying and selling foreign currencies, buying and selling foreign currencies on a commissioned basis, converting foreign currencies,
inter-bank funding, bank card business, safety-deposit box, providing credit-standing investigation and consultation services, as
well as other business upon the approval of China Banking Regulatory Commission.

Before going into the business by Suzhou Branch, your bank shall go through the related formalities according to this Regulation and
the Detailed Rules.

China Banking Regulatory Commission

March 13, 2006



 
China Banking Regulatory Commission
2006-03-13

 







SUPPLEMENTARY CIRCULAR OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE PAYMENT OF FEES FOR TAX-FREE COMMODITY FRANCHISES

the Ministry of Finance

Supplementary Circular of the Ministry of Finance on Printing and Distributing the Measures for the Payment of Fees for Tax-free Commodity
Franchises

Cai Qi [2006] No. 70

To the Ministry of Foreign Affairs, the General Administration of Civil Aviation, the Ministry of Communications, the Ministry of
Railways, China International Travel Service Head Office, China National Service Corporation for Chinese Personnel Working Abroad,
China Travel Service (Group) Corporation, Shenzhen State-owned Duty Free (Group) Limited Corporation, Zhuhai Duty Free (Group) Limited
Corporation, Beijing Capital International Airport and the tax-free stores thereof, Shanghai Pudong International Airport and the
tax-free stores thereof, China Ocean Shipping Company Group and other entities engaged in the business of tax-free commodities, the
financial supervision commissioners’ offices of the Ministry of Finance of all provinces, autonomous regions, municipalities directly
under the Central Government and cities under separate state planning,

After the Notice of the Ministry of Finance on Printing and Distributing the Measures for the Payment of Fees for Tax-free Commodity
Franchises (Cai Qi [2004] No. 241, hereinafter referred to as the Measures) was promulgated, the provisions on the payment to the
treasury have been altered. We hereby circulate a supplementary notice on the collection and payment of fees for tax-free commodity
franchises as follows:

I.

The provisions of in the former Measures – “An enterprise which undertakes the business of tax-free commodities shall pay to the State
a franchise fee of 1% of its annual sales incomes (volumes) as generated from its business operations of tax-free commodities” –
shall be revised as “An enterprise which undertakes the business of tax-free commodities shall pay to the State a franchise fee of
1% of its annual sales incomes as generated from its business operations of tax-free commodities”.

II.

The fees for tax-free commodity franchises shall be paid to and collected by the financial supervision commissioners’ office of the
Ministry of Finance dispatched at the locality of the enterprise. The enterprise that engages in the business of tax-free commodities
shall submit annual report to the local financial supervision commissioners’ office.

III.

As the Notice of the Ministry of Finance on the Relevant Issues about the Income Collection Management System of Financial Supervision
Commissioners’ Offices (No. 365 [2005] of the Ministry of Finance) and the relevant provisions prescribe, the fees for tax-free commodity
franchises shall be directly paid to the treasury, and the financial supervision commissioners’ offices in all regions shall issue
the Common Forms for the Payment of Non-tax Incomes, and directly turn over the fees paid by the payers to the special payment account
of the central treasury. The budgetary item of the fees for tax-free commodity franchises shall be the “Item 7140 of other incomes”.

It is hereby notified.

Ministry of Finance

March 20, 2006



 
the Ministry of Finance
2006-03-20

 







ADMINISTRATIVE MEASURES FOR THE EXAMINATION AND APPROVAL OF PERMANENT REPRESENTATIVE OFFICES OF FOREIGN AIR TRANSPORT ENTERPRISES

General Administration of Civil Aviation of China

Order of the General Administration of Civil Aviation of China

No.165

The Administrative Measures for the Examination and Approval of Permanent Representative Offices of Foreign Air Transport Enterprises,
adopted at the executive meeting of the General Administration of Civil Aviation of China on March 31, 2006, are hereby promulgated,
and shall go into effect as of May 3, 2006.

Director General, Yang Yuanyuan

April 3, 2006

Administrative Measures for the Examination and Approval of Permanent Representative Offices of Foreign Air Transport Enterprises

Chapter I General Provisions

Article 1

In order to regulate the administration of permanent representative offices of foreign air transport enterprises (hereinafter referred
to as representative offices) and their staff members, these Administrative Measures are formulated in accordance with the Interim
Provisions of the State Council on the Administration of Permanent Representative Offices of Foreign Enterprises.

Article 2

The “representative offices” as mentioned in these Administrative Measures refers to the agencies that are set up upon approval by
foreign air transport enterprises within the territory of China and engage in the business operations.

The “chief representatives” as mentioned in these Administrative Measures refers to the principal responsible persons of the agencies;
and the “representatives” as mentioned in these Administrative Measures refers to other main staff members of the agencies.

Article 3

To apply for setting up a representative office within the territory of the People’s Republic of China, a foreign air transport enterprise
shall be approved by the General Administration of Civil Aviation of the People’s Republic of China (hereinafter referred to as the
CAAC), and go through the registration formalities at the State Administration for Industry and Commerce of the People’s Republic
of China or the authorized administrative bureau for industry and commerce of each province, autonomous region, municipality directly
under the Central Government or city under separate state planning (hereinafter referred to as the registration organ).

Article 4

A foreign air transport enterprise may not set up a representative office within the territory of the People’s Republic of China without
approval and registration, nor may it carry out any business operation concerning air transport.

Article 5

The representative offices and their staff members shall comply with the laws, regulations and rules for civil aviation of the People’s
Republic of China, and shall not damage the security of the People’s Republic of China or the social and public interests. The lawful
rights and interests of the representative offices and their staff members shall be under the protection of the laws of China.

Article 6

The CAAC shall, in accordance with the laws of the People’s Republic of China and the authorization of the State Council, implement
the administrative functions for the representative offices under its own jurisdiction.

Chapter II Establishment, Extension, Alteration and Termination of Representative Offices

Article 7

For the purpose of setting up a representative office, a foreign air transport enterprise shall comply with the basic conditions as
follows:

(1)

In accordance with the air transport treaty or the relative agreement signed between the government of the country where the foreign
air transport enterprise is located and the government of the People’s Republic of China, the foreign air transport enterprise has
obtained the designated qualification for providing air transport services between two countries;

The setting up of any representative office by a foreign air transport enterprise that has not obtained the designated qualification
for providing air transport services between two countries shall be specially approved by the CAAC; and

(2)

The foreign air transport enterprise shall go through the approval formalities in accordance with these Administrative Measures.

Article 8

For the purpose of setting up a representative office, a foreign air transport enterprise shall hand in the application materials
to the CAAC in accordance with different situations:

(1)

For the purpose of setting up a representative office, a designated foreign air transport enterprise shall hand in the application
materials as follows to the CAAC:

1.

A photocopy of the business license or any other approval document issued by the CAAC;

2.

An application form signed by the legal representative of the foreign air transport enterprise, which shall indicate: the purposes
of setting up the representative office, the name of the representative office, the persons to be assigned to the representative
office (chief representative and representatives), range of business, business address, and the contact information, etc.;

3.

Letter of attorney issued by the legal representative of the foreign air transport enterprise for entrusting the chief representative
and representatives of the representative office, and the photocopies of the valid travel certificates of the chief representative
and representatives; and

4.

Registration Forms for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
chief representative and representatives.

(2)

For the purpose of setting up a representative office, a non-designated foreign air transport enterprise shall hand in the application
materials as follows to the CAAC:

1.

A photocopy of the relative agreement signed between the authorities of the country where the foreign air transport enterprise is
located or the foreign air transport enterprise and the CAAC;

2.

An application form signed by the legal representative of the foreign air transport enterprise, consisting of: the brief information
about the enterprise, the purposes for setting up the representative office, the name of the representative office, the persons to
be assigned to the representative office (chief representative and representatives), range of business, business address, and the
contact information, etc.;

3.

The certificate (duplicate) on lawful business initiation issued by the authorities of the country where the foreign air transport
enterprise is located;

4.

Letter of attorney issued by the legal representative of the foreign air transport enterprise for entrusting the chief representative
and representatives of the representative office, and the photocopies of the valid travel certificates of the chief representative
and representatives; and

5.

Registration Forms for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
chief representative and representatives.

Article 9

The CAAC shall conduct the applications put forward by the applicants in accordance with the conditions as follows:

(1)

If there is any error in the application materials that can be corrected on the spot, the CAAC shall allow the applicant to make corrections
on the spot;

(2)

If the application materials are incomplete or inconsistent with statutory forms, all the contents that need to be corrected once
and for all shall be informed of the applicants by the CAAC within 5 days, . If the CAAC fails to do so within the aforesaid time
limit, it shall be considered to have accepted the application materials as of the day when it receives them; and

(3)

The CAAC shall accept the application, in case the application materials are complete and consistent with statutory forms, or all
the corrected application materials have been handed in by the applicant as required.

Article 10

The CAAC shall, within 20 days as of the date of acceptance, make a decision to approve or disapprove the setting up of a representative
office. If it fails to make a decision within 20 days, the time limit may be extended to another 10 days upon approval of its principal,
and it shall inform the applicant of the reasons for the extension .

If the CAAC makes a decision on approval of the setting up of the representative office, it shall issue an approval certificate to
the applicant within 10 days as of the day when the decision is made; if it makes a decision on disapproval of the setting up of
the representative office, it shall inform the applicant of this and make an explanation on the reasons for the disapproval.

Article 11

After an application of a foreign air transport enterprise for setting up a representative office is approved, this representative
office shall go through the registration formalities at the registration organ in accordance with the relative provisions. If it
fails to do so within the aforesaid time limit, the approval certificate shall be invalidated automatically.

Article 12

The valid time limit of the approval document on the representative office of a designated foreign air transport enterprise shall
accord with that of the business license issued by the CAAC. The valid time limit of the representative office of a non-designated
foreign air transport enterprise shall generally be 3 years calculated as of the day when the CAAC issues the approval certificate.
If the valid time limit expires and needs to be extended, the foreign air transport enterprise shall, 45 days in advance, submit
an application to the examination and approval organ, and go through the formalities for the extension.

Article 13

For the purpose of applying for an extension, a representative office shall submit the application materials in accordance with different
situations as follows:

(1)

A designated foreign air transport enterprise shall hand in the materials as follows:

1.

A photocopy of the valid business license or any other approval document issued by the CAAC;

2.

An application form for extension signed by the legal representative of the enterprise; and

3.

The photocopies of the approval certificate and the registration certificate of the permanent representative office of the enterprise.

(2)

A non-designated foreign air transport enterprise shall submit the following materials:

1.

A photocopy of the relative agreement signed between the authorities of the country where the foreign air transport enterprise is
located or the foreign air transport enterprise and the CAAC;

2.

An application form for extension signed by the legal representative of the enterprise; and

3.

A photocopy of the approval document and the registration certificate of the permanent representative office of the enterprise.

Article 14

The valid extension time limit of an approval document on the representative office of a designated foreign air transport enterprise
shall accord with that of the business license issued by the CAAC. The valid extension time limit of an approval document for the
representative office of a non-designated foreign air transport enterprise shall generally be 3 years. After an application for extension
handed in by a representative office is approved, the CAAC shall issue a certificate on approval of the extension, and the representative
office shall go through the registration formalities for the extension in accordance with the relative provisions.

Article 15

If a foreign air transport enterprise applies for changing the name of its representative office, replacing or adding the chief representative
or representatives, altering the business range or business address of its representative office, it shall hand in an application
form signed by the legal representative of the enterprise and the relative materials about the matter to be altered to the CAAC.

An application form for changing the business address within the same city may be signed by the chief representative of the representative
office.

Article 16

After an application for alteration is approved, the CAAC shall issue a certificate on approval of the alteration, and the representative
office shall go through the registration formalities in accordance with the relative provisions.

Article 17

If a representative office does not hand in an application for extension after the expiration of the term of dispatch, its original
approval certificate shall be cancelled by the CAAC.

If a foreign air transport enterprise cancels a representative office before the expiration of the valid time limit, the legal representative
of this air transport enterprise shall sign a notification on cancellation of the representative office 30 days before the termination,
and a photocopy of the original approval document shall be handed in to the CAAC for an archive.

Article 18

The name of a representative office shall be ascertained in the pattern of “country + name of the enterprise + name of the city +
representative office”.

Article 19

An application form for establishing, extending, altering or canceling a representative office or a letter of attorney for the chief
representative or any representative shall be written in Chinese; and if it is written in any other language, an enclosure of Chinese
translation thereof shall be followed. If any other application material is written in the language other than Chinese, an enclosure
of Chinese translation thereof shall be followed. For the legal force of the relative documents or materials, the Chinese version
thereof shall prevail

Chapter III Administration of Chief Representatives and Representatives

Article 20

A chief representative or representative of a representative office shall have the qualifications as follows:

(1)

A foreign citizen with a valid passport (excluding foreign students in China);

(2)

A Chinese citizen who is qualified for long-term residence abroad;

(3)

A citizen from Hong Kong, Macao or Taiwan holding a valid certificate; and

(4)

In case a foreign air transport enterprise employs a Chinese citizen to be the chief representative or representative of its representative
office (excluding the Chinese citizens mentioned in Paragraph 2 of this Article), it shall go through the approval formalities in
accordance with the relative laws and regulations of the People’s Republic of China.

Article 21

A foreign chief representative or representative of a representative office shall, after entering into the territory of China, acquire
an employment permit on the basis of the strength of his/her occupation visa and other relative certificates; if he/she has no occupation
visa, he shall acquire an occupation visa and an employment permit on the basis of the strength of a Registration Certificate for
the Permanent Representative Offices of Foreign Air Transport Enterprises and a Work Certificate for the Permanent Representative
Offices of Foreign Air Transport Enterprises. If the country where the foreign air transport enterprise is located has reached an
agreement on mutual exemption of visas with China, he/she shall go through the formalities in accordance with the agreement.

Article 22

For the purpose of applying for changing the chief representative of a representative office, the foreign air transport enterprise
shall hand in the materials as follows to the CAAC:

(1)

An application form signed by the legal representative of the foreign air transport enterprise;

(2)

A letter of attorney signed by the legal representative of the foreign air transport enterprise;

(3)

A Registration Form for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
person who is to be appointed; and

(4)

A photocopy of the valid travel certificate of the person who is to be appointed.

For the purpose of applying for changing a representative, the representative office of a foreign air transport enterprise shall hand
in the materials as follows to the CAAC:

(1)

An application form signed by the chief representative of the representative office of the foreign air transport enterprise;

(2)

A letter of attorney signed by the legal representative of the foreign air transport enterprise;

(3)

A Registration Form on the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
person who is to be appointed; and

(4)

A photocopy of the valid travel certificate of the person who is to be appointed.

Chapter IV Supervision and Administration of Representative Offices

Article 23

In accordance with the Interim Provisions on the Administration of Permanent Representative Offices of Foreign Enterprises, these
Administrative Measures and other relative laws and regulations, the CAAC shall administer, supervise and inspect the business operations
of the representative offices of foreign air transport enterprises jointly with the relevant departments.

Article 24

A foreign air transport enterprise shall undertake the legal liabilities for all the business operations that are implemented by its
representative offices within the territory of the People’s Republic of China.

Article 25

If a representative office violates the laws or regulations of the People’s Republic of China or these Administrative Measures, the
CAAC shall impose administrative punishment on it under its jurisdiction and in accordance with the severity of the circumstances.

Chapter V Supplementary Provisions

Article 26

These Administrative Measures by analogy shall apply to the applications of foreign air transport enterprises for assigning permanent
representatives to the People’s Republic of China .

The applications of foreign air transport services security enterprises for setting up representative offices within or assigning
permanent representatives to the People’s Republic of China shall be governed by these Administrative Measures by analogy.

Article 27

The time limits prescribed in these Administrative Measures shall be calculated with the working days, excluding official holidays.

Article 28

These Administrative Measures shall go into effect 30 days after the date of promulgation. The Circular on Implementing the Interim
Provisions on the Administration of Permanent Representative Offices of Foreign Enterprises (Min Hang Ji [80] No. 399) prevailed
on December 4, 1980 shall be abolished at the same time.



 
General Administration of Civil Aviation of China
2006-04-03

 







ANNOUNCEMENT NO. 31, 2006 OF MINISTRY OF COMMERCE, ON ADJUSTING THE SCOPE FOR HANDCRAFTS EXPORTED TO EU LISTED IN ANNOUNCEMENT NO. 49, 2005 OF MINISTRY OF COMMERCE

Ministry of Commerce

Announcement No. 31, 2006 of Ministry of Commerce, on Adjusting the Scope for Handcrafts Exported to EU Listed in Announcement No.
49, 2005 of Ministry of Commerce

[2006] No. 31

In accordance with regulations on implementing Memorandum of Understanding and reaching relative administrative arrangements, the
Scope for Handcrafts Exported to EU Listed in Announcement No. 49, 2005 of Ministry of Commerce is now adjusted as follows:

1.

Category 5 and Category 26 shall be added to Article 1 of Appendix 1 of Announcement No. 49, 2005 of Ministry of Commerce; one-piece
dress Knit or crocheted by hand shall be added to Appendix 2.

2.

Other issues shall still be in line with Announcement No. 49, 2005 of Ministry of Commerce.

This Announcement shall be implemented as from the date of promulgation.

Ministry of Commerce

April 28, 2006



 
Ministry of Commerce
2006-04-28

 







NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ABOUT ADJUSTING THE SCOPE OF TAX REFUND POLICY ON DOMESTICALLY-MADE FACILITIES PURCHASED BY FOREIGN FUNDED PROJECTS

Ministry of Finance, State Administration of Taxation

Notice of the Ministry of Finance and the State Administration of Taxation about Adjusting the Scope of Tax Refund Policy on Domestically-made
Facilities Purchased by Foreign Funded Projects

Cai Shui [2006] No.61

The public finance departments or bureaus, the bureaus of state taxes of all provinces, autonomous regions, municipalities directly
under the Central Government, and cities specifically designated in the state plan, and the finance bureau of the Xinjiang Production
and Construction Corps:

The Changes have been taken place on correlative policies since the tax refund policy has been implemented on the domestic-made facilities
purchased by foreign funded projects. In order to carry out the tax refund policy on the domestic-made facilities purchased by foreign
funded projects better, specific adjusting scope of tax refund policy on domestically-made facilities purchased by foreign funded
projects shall be as follows:

1.

The scope of enterprise to enjoy the tax refund of domestically-made facility shall refer to the foreign funded enterprise that is
recognized as a general taxpayer of value added tax, the foreign funded enterprise that is recognized as a general taxpayer of non
value added tax engaged in the traffic transportation and the development of common dwelling house, and the Chinese-foreign contractual
joint venture engaged in prospecting, developing and producing of sea oil. The foreign funded enterprise shall include the Chinese-foreign
equity joint venture, Chinese-foreign contractual joint venture and solely foreign funded enterprise. When the foreign funded enterprise
purchase the domestically-made facility for self use as the name of its sub-company (factory), the tax refund shall be applied by
this sub-company (factory) to the competent organ that is responsible for handling the tax refund where the branch is located. For
the Chinese-foreign cooperative project of oil-gas field to co-explore the resource of sea oil, the tax refund shall be applied by
operator of oil-gas field of cooperation, operation institute or sub-company of operation. With regard to the foreign funded enterprise
that shall expand the deduct scope of value added tax according to the provision, the tax refund policy of value added tax shall
not be implemented when it purchases the domestically-made facilities within the total amount of investment.

2.

The encouraged class which falls within the Guidance Catalogue for Foreign Investment Industry and the foreign investment project
(hereinafter referred to as encouraged foreign investment project) which falls within the Catalogue of Priority Industries for Foreign
Investment in the Central-Western Region (above mentioned two Catalogues are hereinafter referred to as Encouraged Foreign Investment
Catalogue) shall enjoy the tax refund policy of value added tax for the purchased facility domestically made. When adjusting the
encouraged foreign investment catalogue, the project to enjoy the tax refund policy for purchasing the domestically-made facility
shall conform to the projects in the encouraged foreign investment catalogue implemented when approving the projects.

The tax refund policy shall not be applied, where the enterprises engaged in the Encouraged Foreign Investment Project purchase domestically-made
facilities within China that falls within the Catalogue of Imported Commodities Not Exempted from Taxes for Foreign-funded Projects
(hereinafter referred to the Catalogue of Commodities not Exempted from Taxes). When adjusting the Catalogue of Commodities not Exempted
from Taxes by state, the facility, whether or not it falls within the scope of Catalogue of Commodities not Exempted from Taxes,
shall be judged by the Catalogue of Commodities not Exempted from Taxes that was implementing when issuing the special invoice of
value added tax for purchasing domestically-made facility.

For the engineering project in the Encouraged Foreign Investment project, if it is constructed by other enterprise entrusted by the
foreign funded enterprise through the way of contract for construction and materials, the foreign funded enterprise may conclude
an entrusting agreement with the entrusted enterprise to purchase the domestically-made facility, the special invoice of value added
tax gotten by the entrusted enterprise for purchasing the domestically-made facility shall be given to the foreign funded enterprise
for applying the tax refund according to the provisions.

3.

The domestically-made facility mentioned in present Notice shall refer to the facility produced inside the territory of People’s Republic
of China, purchased by the encouraged foreign investment project and managed as the fixed assets, including the auxiliary parts,
spare parts and etc. purchased together with the facility according to the purchase contract.

4.

If any previous provision conflicts with the present Notice, the present Notice shall prevail

Ministry of Finance

State Administration of Taxation

May 10, 2006



 
Ministry of Finance, State Administration of Taxation
2006-05-10

 







ANNOUNCEMENT NO.33, 2006 OF MINISTRY OF COMMERCE ON PRELIMINARY ARBITRATION ON IMPORTED POLYURETHANE (SPANDEX OR ELASTANE)

Ministry of Commerce

Announcement No.33, 2006 of Ministry of Commerce on Preliminary Arbitration on Imported Polyurethane (Spandex or Elastane)

[2006] No. 33

Ministry of Commerce issued an announcement on April 13, 2005 to start an anti-dumping investigation on the imported Polyurethane
(Spandex or Elastane) originating from Japan, Singapore, ROK, Taiwan Region and the U.S. (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 mainland China’s industry
and there was a casual relationship between the dumping and the injury.

The Polyurethane (Spandex or Elastane) is listed under No. 54024920, 54026920 in Import and Export Tariffs of General Administration
of Customs of PRC.

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 from May 24, 2006.

Deposit in security rates are as follows:

1.

Companies of Japan:

OPELONTEX Co., Ltd. 13.87%

All Others 61.00%

2.

Companies of Singapore

INVISTA (Singapore) Fibres Pte. Ltd. 11.50%

All Others 61.00%

3.

Companies of ROK

Hyosung Corporation 0%

TongKook Corporation 0%

Taekwang Industrial Co.,Ltd. 0%

All Others 61.00%

4.

Companies of Taiwan Region.

FORMOSA ASAHI SPANDEX CO., LTD 5.09%

All Others 61.00%

5.

Companies of the U.S. 61.00%

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 (omitted): Ministry of Commerce Preliminary Arbitration on Anti-dumping Investigation on Imported Polyurethane (Spandex or
Elastane) Originating from Japan, Singapore, ROK, Taiwan Region and the U.S.

Ministry of Commerce

May 24, 2006



 
Ministry of Commerce
2006-05-24

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING THE ADMINISTRATION ON SYNTHETIC POSITIONS IN THE SETTLEMENT AND SALE OF FOREIGN EXCHANGE OF BANKS

Circular of the State Administration of Foreign Exchange on Adjusting the Administration on Synthetic Positions in the Settlement
and Sale of Foreign Exchange of Banks

Hui Fa [2006] No. 26

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 the policy banks, state-owned commercial banks, and joint stock commercial banks,

For the purpose of meeting the demand for the development of foreign exchange market, promoting designated foreign exchange banks
to perfect exchange rate risk prevention mechanism, the SAFE determines to adjust the policies for the administration of synthetic
positions in the settlement and sale of foreign exchange of designated foreign exchange banks, and hereby makes the following notice
concerning the relevant issues:

I.

From July 1, 2006, SAFE shall manage the synthetic positions in the settlement and sale of foreign exchange of designated foreign
exchange banks (hereinafter referred to as the banks) on the accrual basis.

II.

The principle of position administration on the accrual basis as mentioned in this Circular shall mean that a bank provides the business
of settlement and sale of foreign exchange to its clients, business of settlement and sale of foreign exchange of its own, and the
inter-bank foreign exchange market transactions reckoned into the synthetic positions in the settlement and sale at the day when
the transaction is concluded.

The principle of position administration on cash-basis accounting shall mean that a bank provides the business of settlement and sale
of foreign exchange to its clients, business of settlement and sale of foreign exchange of its own, and the inter-bank foreign exchange
market transaction reckoned into the synthetic positions in settlement and sale at the day when the capital is actually received
and paid.

III.

After the implementation of the principle of position administration on the accrual basis, in light of the actual situations of the
business of settlement and sale of foreign exchange of the bank itself and the inter-bank foreign exchange market transactions, and
according to the requirements of the statements in the Form of Daily Report on Synthetic Positions in the Settlement and Sale of
Foreign Exchange (See Annex II), a bank shall accurately calculate the synthetic positions of the settlement and sale of foreign
exchange of the bank itself, and submit the new Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign
Exchange (See Annex I) to the SAFE or its branch administrations. The Form of Daily Report on Synthetic Positions in Settlement and
Sale of Foreign Exchange is annexed to the Notice of the State Administration of Foreign Exchange on Adjusting the Measures for the
Administration of Positions in the Settlement and Sale of Foreign Exchange of Banks (Hui Fa [2005] No.69, hereinafter referred to
as Hui Fa No.69) shall be abolished.

IV.

A bank shall submit the Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign Exchange to SAFE and its
branch administrations according to the following requirements:

1.

The Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign Exchange of the policy banks, national commercial
banks, and the market makers of the inter-bank foreign exchange market shall be reported to SAFE respectively by fax and email before
10 o’clock in the morning of the second work day (The electronic documents shall be made in the form of EXCEL). Fax: 010￿￿68402303;Email:
yinhangchu@mail.safe.gov.cn.

2.

The specific time and ways for submission of the Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign
Exchange by urban commercial banks, rural commercial banks, rural cooperative financial institutions, and foreign-funded banks shall
follow the requirements of the branches of the SAFE at their localities.

V.

Adjustment shall be made on the Form of Information on Synthetic Positions in the Settlement and Sale of Foreign Exchange of Designated
Foreign Exchange Banks, which is submitted to the SAFE by each branch of SAFE (including foreign exchange management department,
the same hereinafter). Each branch of SAFE shall fill in the form and make a report according to the new design of the statements
(See Annex III) from the day when this Circular is implemented, and the ways and time for submission shall remain unchanged.

VI.

The limit of synthetic positions in the settlement and sale of foreign exchange of a bank, which is verified by SAFE or its branches
before the implementation of this Circular, shall continue to be effective. All banks shall do a good job for the administration
of the limit of synthetic positions in the settlement and sale of foreign exchange of their own banks according to the provisions
of the Document No.69 of SAFE. Except for the relevant matters subject to the adjustment of administration on synthetic positions
in the settlement and sale of foreign exchange, for other matters the Document No.69 of SAFE and the Notice of the Comprehensive
Department of State Administration of Foreign Exchange on Relevant Matters concerning Verification of the Limit of Synthetic Positions
in the Settlement and Sale of Foreign Exchange of Banks (Hui Zong Fa [2005] No.118) shall continue to be followed.

VII.

After receiving this Circular, each branch of SAFE shall forward it at once to the urban commercial banks, rural commercial banks,
rural cooperative financial institutions, and foreign-funded banks within its own jurisdiction.

If any problem is encountered in the implementation, please contact with the Department of International Balance of SAFE.

Contact Telephone: 010-68402385, 68402447.￿￿

Annex I: (_____Bank) the Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign Exchange (omitted)

Annex II: the Explanation of the Form of Daily Report on Synthetic Positions in the Settlement and Sale of Foreign Exchange (omitted)

Annex III: the Form of Information on Synthetic Positions in the Settlement and Sale of Foreign Exchange of Designated Foreign Exchange
Banks (omitted)

State Administration of Foreign Exchange

June 2, 2006



 
State Administration of Foreign Exchange
2006-06-02

 







MEASURES FOR THE ADMINISTRATION OF THE SECURITIES SETTLEMENT RISK FUND

Circular of the China Securities Regulatory Commission concerning Promulgating the Measures for the Administration of the Securities
Settlement Risk Fund

Zheng Jian Fa [2006] No. 65

Shanghai Stock Exchange and Shenzhen Stock Exchange, China Securities Depository & Clearing Corporation Limited and all clearing
participants:

In accordance with the provisions of the Securities Law of the People’s Republic of China, China Securities Regulatory Commission,
in conjunction with the Ministry of Finance, jointly formulated the Measures for the Administration of the Securities Settlement
Risk Fund and hereby issued for your implementation.

China Securities Regulatory Commission

June 16, 2006

Measures for the Administration of the Securities Settlement Risk Fund

Article 1

In order to prevent and solve the risks of the securities market, safeguard a sound operation of the securities depository &
clearing system as well as manage and use the securities settlement risk fund in a proper manner, these Measures are formulated under
the relevant provisions of the Securities Law of the People’s Republic of China.

Article 2

Securities settlement risk fund (hereinafter referred to as this Fund) herein referred to in these Measures is a special fund that
is established to be used in advance payment or cover of the losses of the securities depository & clearing institution as incurred
from delivery under breach of contract, technical malfunction, wrong operations or force majeure.

Article 3

Sources of this Fund are:

(1)

Separate withdrawal with respect to 20% of the incomes and benefits of the securities depository & clearing institution;

(2)

Payment of the clearing participants with respect to 0.03￿￿f the business volume of Renminbi common stocks and funds, 0.01￿￿f
the business volume of treasury bond spot, 0.0005￿￿f the business volume of 1-day treasury bond repurchase, 0.001￿￿f the business
volume of 2-day treasury bond repurchase, 0.0015￿￿f the business volume of 3-day treasury bond repurchase, 0.002￿￿f the business
volume of 4-day treasury bond repurchase, 0.005￿￿f the business volume of 7-day treasury bond repurchase, 0.01_￿￿f the business
volume of 14-day treasury bond repurchase, 0.02￿￿f the business volume of 28-day treasury bond repurchase, 0.06￿￿f the business
volume of 91-day treasury bond repurchase, 0.12￿￿f the business volume of 182-day treasure bond repurchase on a daily basis.

Article 4

When the net asset of this Fund reaches or exceeds 3 billion yuan at the end of each fiscal year, the relevant fund shall not be
drawn pursuant to the provisions of Subparagraph (1), Article 3 of the present Measures in the following year, the clearing participants
may not make payment pursuant to the provisions of Subparagraph (2), Article 3 of these Measures, yet the term of the payment as
made by each clearing participant pursuant to Subparagraph (2), Article 3 of these Measures after joining the settlement system
shall be no less than 1 year.

Article 5

Where the net asset of this Fund is less than 3 billion yuan at the end of each fiscal year, this Fund shall be further drawn pursuant
to the provisions of Subparagraph (1), Article 3 of these Measures and the relevant clearing participants shall continually make
their payment pursuant to the provisions of Subparagraph (2), Article 3 of these Measures.

Article 6

The China Securities Regulatory Commission may, in conjunction with the Ministry of Finance may, adjust the scale, the method and
proportion of withdrawal and payment of this Fund in light of the market risks

Article 7

The securities deposit & clearing institution shall appoint an organ to be responsible for the daily administration and use of
this Fund.

Article 8

This Fund shall be entirely deposited into a special account of a state commercial bank and all of the deposit interests shall be
transferred into the special fund account.

Article 9

The assets of this Fund and those of the securities deposit & clearing institution shall be separated into different accounts.
Ledger accounts shall be established for this Fund so as to respectively record the assets, interest incomes of this Fund and the
use of the principals as well as the interests of the corresponding assets as generated under the Subparagraphs of Article 3 of
the present Measures.

Article 10

The minimum payment of this Fund is 20 million yuan. Where any securities deposit & clearing institution uses this Fund, it shall
apply to the China Securities Regulatory Commission as well as the Ministry of Finance for approval.

Article 11

Where the breach of contract by the clearing participant causes any of the circumstances as prescribed in Article 2 , this Fund shall
be employed in the sequence as follows:

(1)

Capital as paid by the delinquent clearing participant in accordance with Subparagraph (2), Article 3 of these Measures;

(2)

Capital as paid by any other clearing participant in accordance with Subparagraph (2), Article 3 of these Measures; and

(3)

Capital as drawn in accordance with Subparagraph (1), Article 3 of these Measures.

Article 12

The securities deposit & clearing institution shall, subject to the provisions of relevant laws and administrative regulations,
establish and improve the operating rules, internal management system as well as clearing participant supervision system so as to
avoid any risk or accident to the largest extent.

Article 13

After this Fund is employed, the securities deposit & clearing institution shall make a compensation claim from the relevant
responsible parties and the recovered funds shall be transferred into this Fund. Meanwhile, the relevant operating rules, internal
management system as well as clearing participant supervision system shall be timely revised and improved.

Article 14

Where this Fund is modified or settled accordingly, the China Securities Regulatory Commission shall, in conjunction with the Ministry
of Finance, separately decide the proportion and amount of the remaining assets of this Fund that shall be refunded to relevant clearing
participants.

Article 15

The Measures for the financial settlement and administration of this Fund shall be formulated by the Ministry of Finance.

Article 16

These Measures shall be subject to the interpretation of the China Securities Regulatory Commission in conjunction with the Ministry
of Finance.

Article 17

These Measures shall come into force as of July 1, 2006. Upon approval of the State Council, the Interim Measures for the Administration
of the Securities Settlement Risk Fund (approved by the State Council on January 31, 2000, and promulgated on April 4, 2000 by the
China Securities Regulatory Commission and the Ministry of Finance) shall be repealed simultaneously.



 
China Securities Regulatory Commission
2006-06-16

 







MEASURES FOR THE ADMINISTRATION ON THE NEWS AND INFORMATION RELEASE WITHIN THE TERRITORY OF CHINA BY FOREIGN NEWS AGENCIES

Measures for the Administration on the News and Information Release within the Territory of China by Foreign News Agencies

September 10, 2006

(issued by Xinhua News Agency on September 10, 2006)

Article 1

With a view to regulating the release of press information within China by foreign news agencies and the subscription of such press
information by users within China and promoting the dissemination of press information in a sound and orderly manner, The present
Measures are formulated in accordance with laws, administrative regulations of the state and the relevant regulations of the State
Council.

Article 2

The present Measures shall apply to the release of press information in text, photo, graphics and other forms within China by foreign
news agencies.

The foreign news agencies as mentioned in the present Measures shall include other foreign entities of the nature of a news agency
that release press information.

Article 3

Xinhua News Agency exercises unified administration over the release of press information within China by foreign news agencies.

Article 4

In accordance with the Decision of the State Council on the Establishment of Administrative Licenses for Items Subject to Administrative
Examination and Approval and That Need to Be Retained, the release of press information within China by foreign news agencies shall
be subject to the approval of Xinhua News Agency, and there shall be entities designated by Xinhua News Agency to act as their agents
(hereinafter referred to as designated entities). Foreign news agencies may not directly solicit subscription of their press information
services in China.

Except the designated entities, no unit or individual may distribute press information of foreign news agencies or act as their agent.

Article 5

To apply for releasing press information within the territory of China, a foreign news agency shall satisfy the following requirements:

(1)

being of corresponding and legal qualification at its home country or region;

(2)

enjoying good credit in the field of press information release;

(3)

having explicit scope of business;

(4)

being of technological and transmitting means commensurate with its business; and

(5)

other requirements as prescribed by laws and administrative regulations of China.

Article 6

For releasing press information within the territory of China, a foreign news agency shall submit a written application and the following
materials to Xinhua News Agency:

(1)

legal qualification certificates issued by the competent authorities of its home country or region;

(2)

the good credit certificate issued by the relevant organization of its home country or region;

(3)

a detailed list, explanation and samples of the press information to be released;

(4)

an illustration on its transmitting means; and

(5)

other materials as specified by Xinhua News Agency.

Article 7

An entity to be designated as an agent of a foreign news agency for releasing the press information within the territory of China
shall satisfy the following requirements and submit a written application to Xinhua News Agency:

(1)

being legally qualified;

(2)

enjoying good credit in the field of press information distribution as an agent ;

(3)

being of the service network and technological and transmitting means commensurate with its business; and

(4)

other requirements as prescribed by laws and administrative regulations and rules of government departments.

Article 8

Xinhua News Agency shall, within 20 days as of the receipt of the application materials of a foreign news agency or to- be -designated
entity, make a decision on whether or not to grant the application. If it decides to grant the application, it shall issue a document
of approval; otherwise, it shall notify the applicant of the decision in writing and explain the reasons.

Article 9

Before releasing press information within the territory of China in light of the scope of business approved in the approval document,
a foreign news agency shall sign an agency agreement with the designated entity, and within 15 days as of the day when the agreement
is signed, submit the agreement to Xinhua News Agency for archiving.

Article 10

Where a foreign news agency alters its scope of business, transmitting means and etc., it shall apply to Xinhua News Agency for a
new approval document.

Article 11

The press information released within the territory of China by foreign news agencies may not contain any of the following contents:

(1)

violating the basic principles as prescribed in the Constitution of the People’s Republic of China;

(2)

undermining the national unity, sovereignty and territorial integrity of China;

(3)

endangering the national security, reputation and interests of China;

(4)

advocating cult and superstition in violation of the religious policies of China;

(5)

inciting hatred and discrimination among ethnic groups, destroying their unity, infringing upon their customs and habits, or hurting
their feelings;

(6)

disseminating false information, disrupting the economic and social order of China, or undermining the social stability of China;

(7)

propagating obscenity and violence, or abetting crimes;

(8)

humiliating or slandering another person, or infringing upon the legitimate rights and interests of another person;

(9)

undermining social ethics or the fine cultural traditions of the Chinese nation; or

(10)

other contents banned by Chinese laws and administrative regulations.

Article 12

Xinhua News Agency shall have the right to select the press information released by foreign news agencies in China, and shall delete
any material as described in Article 11 of the present Measures.

Article 13

To subscribe to press information services of foreign news agencies, a user in China shall sign a subscription agreement with the
designated entity, and may not, by any means, directly subscribe to, translate, edit or publish the press information released by
a foreign news agency.

When using press information from a foreign news agency, the user in China shall clearly indicate the sources and may not transfer
in any form.

Article 14

Foreign news agencies and designated entities shall, within the prescribed time limit, submit reports to Xinhua News Agency each
year respectively on their work in releasing press information and in acting as agents.

Xinhua News Agency may conduct examination and inspection on the reports. Only those agencies and entities that have passed the examination
and inspection are permitted to continue their press information release and agency business.

Article 15

Where any unit or individual finds any act in violation of the present Measures, it (he) shall have the right to report it to Xinhua
News Agency, which shall investigate and deal with the violation according to law.

Article 16

Where a foreign news agency violates the present Measures by one of the following means, Xinhua News Agency shall, in light of the
ponderance of the case, give it a warning, order it to make corrections within a prescribed time limit, suspend its release of specified
contents, suspend or cancel its qualification as a foreign news agency for releasing press information in China:

(1)

releasing press information beyond the scope of business as approved in the approval document;

(2)

directly soliciting subscription of press information services, or doing so in disguised form; or

(3)

distributing press information which contains the contents described in Article 11 of the present Measures.

Article 17

Where a user in China violates the provisions of the present Measures and is under any of the following circumstances, Xinhua News
Agency shall, in light of the ponderance of the case, give it a warning, order it to make corrections within a prescribed time limit
or order the designated entities to suspend or rescind the subscription agreement:

(1)

using the press information from a foreign news agency beyond the scope as prescribed by the subscription agreement;

(2)

transferring to another party the press information from a foreign news agency that it has subscribed to; or

(3)

failing to clearly indicate the sources when using press information from a foreign news agency.

Article 18

Where a unit or individual violates the provisions of the present Measures and is under any of the following circumstances, Xinhua
News Agency shall submit a proposal to the relevant departments of the State Council to impose an administrative penalty upon it
(him) according to law:

(1)

releasing press information without the approval of Xinhua News Agency or subscribing to press information of a foreign news agency
beyond the entity designated by Xinhua News Agency;

(2)

distributing press information of a foreign news agency or acting as its agent without approval; or

(3)

directly translating, editing or publishing press information of a foreign news agency without approval.

Article 19

Where a designated entity, in violation of the provisions of the present Measures, acts as an agent for distribution of the press
information of a foreign news agency that has not obtained the approval of Xinhua News Agency, Xinhua News Agency shall order it
to make corrections, and disciplinary penalties shall be imposed upon the persons directly in charge and other directly responsible
persons.

Article 20

Where a staff member of Xinhua News Agency commits one of the following acts, Xinhua News Agency shall impose upon him a disciplinary
penalty:

(1)

issuing the approval document to an applicant that does not satisfy the requirements as specified in the present Measures;

(2)

failing to fulfill his duties of supervision and administration according to law;

(3)

failing to investigate and deal with the violations of law upon receiving reports thereon; or

(4)

abusing his powers, neglecting his duties, or engaging in malpractices for personal gains and etc.

Article 21

The present Measures shall be referred to for the release of press information within the mainland by news agencies and other press
information releasing entities of the nature of a news agency in Hong Kong Special Administrative Region, Macao Special Administrative
Region and Taiwan Region.

Article 22

The present Measures shall come into force as of the day of its promulgation. The Measures for the Administration over Economic Information
Publication in China by Foreign News Agencies and Their Information Subsidiaries, promulgated by Xinhua News Agency on April 15,
1996, is abolished simultaneously.



 
Xinhua News Agency
2006-09-10

 







REPLY TO PROBLEM OF TAXATION ON INDIVIDUAL LIQUIDATED DAMAGES OBTAINED FROM TRANSFER OF INDIVIDUAL SHAREHOLDING

Reply to Problem of Taxation on Individual Liquidated Damages Obtained from Transfer of Individual Shareholding

Guo Shui Han [2006]No.866

Sichuan Local Administration of Taxation:

We have received the “Request for Problem of Taxation on Individual Liquidated Damages Obtained from Transfer of Individual Shareholding”
(Chuan Di Shui Fa [2006] No. 48) submitted by your administration. After study, we give the reply as follows:

According to related regulations in the Law of the People’s Republic of China on Individual Income Tax , after successfully transferring
shareholding, liquidated damages the transfer party obtains from the accept party because the failure of payment on time, are regarded
as income obtained from possession transfer. The liquidated damages of transfer party shall merge into possession transfer income,
and the taxation is calculated according to the item of “income from possession transfer”. The transfer party, who obtains the liquidated
damages, shall make the declaration and pay the tax to the taxation organ in charge.

The State Administration of Taxation

September 19, 2006



 
State Administration of Taxation
2006-09-19

 







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...