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RULES FOR THE PRICING ACTIVITIES OF THE GOVERNMENTS

Order of the National Development and Reform Commission of People’s Republic of China

No. 44

In accordance with the Price Law of the People’s Republic of China, we have amended the Rules for the Pricing Activities of the Governments
(for Trial Implementation). The amended Rules for the Pricing Activities of the Governments, which have been adopted upon deliberation
at the director’s executive meeting of the National Development and Reform Commission, are hereby promulgated and shall go into effect
as of May 1, 2006.

Attachment: Rules for the Pricing Activities of the Governments

Ma Kai, Director of the National Development and Reform Commission

March 17, 2006

Rules for the Pricing Activities of the Governments

Article 1

With a view to regulating the pricing activities of the governments, making the pricing activities of the governments more scientific,
impartial and transparent, and protecting the legitimate rights and interests of consumers and business operators, the present rules
are formulated according to the Price Law of the People’s Republic of China.

Article 2

Where the competent departments of pricing or other relevant departments of the people’s governments at or above the provincial level
or the people’s governments at the municipal or county level as authorized by the provincial people’s governments (hereinafter referred
to as the pricing organs) set or adjust, according to law, the prices of goods and services subject to government-guidance prices
or government-set prices (hereinafter referred to as pricing activities), such activities shall be subject to the present rules.

Where it is prescribed otherwise by any law or regulation, such law or regulation shall prevail.

Article 3

The state shall implement and gradually improve the market-based prices and mechanism under the regulation and control of the macro
economy. The government pricing scope shall be determined according to Article 18 of the Price Law, and shall in practice base on
the central and regional pricing catalogues, which shall be adjusted at an appropriate time according to the social and economic
development and shall be publicized to the general public in a timely manner.

The pricing activities of the governments at the municipal or county level, which have been authorized by the corresponding provincial
governments, shall be put under the charge of their inferior affiliated competent departments of pricing.

The pricing organs shall set prices in light of their legitimate authorities, and shall not overstep their respective powers in any
pricing activity.

Article 4

The principles of fairness, openness, impartiality and efficiency shall be abided by in the pricing activities.

Article 5

The pricing activities shall accord with the social average cost of relevant goods or services, the market situation of their demand
and supply, the requirements for national economy and social development as well as social bearing capability. Where the price of
any good or service is closely related to its counterpart in the international market, the international price shall be referred
to.

The competent pricing department of the State Council and its counterparts of the provincial people’s governments may, in light of
different industrial features, determine the concrete principles of and measures for pricing.

Article 6

The pricing organs shall set prices at a proper time in pursuance of the situations of economic and social development as well as
the feedbacks from all social aspects.

Article 7

When setting prices, the pricing organs s shall, according to law, go through such procedures as investigation into prices (costs),
solicitation for social opinions, collective deliberation, decision on pricing, announcement and etc.

Where the cost supervisions and inspections, expert argumentations and price hearings are required by law, they shall be carried out
according to the relevant provisions.

Article 8

Consumers, business operators and other parties concerned (hereinafter referred to as the advisors) may bring forward suggestion
on pricing to the relevant pricing organs.

Article 9

The pricing organs may, when setting prices, require the relevant business operators and industrial organizations to provide the
relevant materials as required for the pricing.

Article 10

When setting prices, the pricing organs shall carry out an investigation into the situations of market supply and demand as well
as the social bearing capability, and make an analysis on the impacts on relevant industries and consumers.

Article 11

The pricing organs shall, when setting prices, carry out an investigation into the prices and costs.

Where any cost supervision and inspection is required according to law, it shall be implemented according to the relevant provisions
thereon.

Article 12

When setting prices for highly professional and technical commodities or services, the pricing organs shall employ the relevant experts
to hold an argumentation.

Article 13

If a hearing is required according to law when the pricing organs set any price, the competent pricing department of the government
shall hold the hearing and solicit for the opinions of consumers, business operators and other parties concerned. The concrete contents
of the hearing shall be subject to the relevant provisions on pricing hearings.

Where a hearing is not required by law, the pricing organs may solicit for the opinions of consumers, business operators and other
parties concerned by holding a symposium, in written form or via the Internet.

Article 14

The pricing organs shall, after fulfilling the procedures as prescribed in Articles 10 through 13 of the present rules, formulate
a pricing scheme that shall include the following contents:

(1)

The current price, the proposed price as well as the adjustment level per unit;

(2)

The basis and reasons for pricing;

(3)

Where any cost supervision and inspection is carried out, a report on cost supervision and inspection shall be attached;

(4)

The impact thereof on the relevant industries and consumers after a price is set;

(5)

Where an argumentation of experts is held, the Summary of Experts’ Argumentation Opinions shall be attached;

(6)

The opinions of consumers, business operators and the relevant parties concerned;

(7)

Where a hearing is held, the Summary of the Hearing shall be attached; and

(8)

The implementing time and scope of the price.

Article 15

The collective deliberation system shall be adopted in principle for formulating pricing schemes. The collective deliberation may
be held in the form of deliberation by the price deliberation committee or deliberation by the executive meeting.

The form of collective deliberation, composition of personnel and working rules shall be formulated by the pricing organs at or above
the provincial level.

Article 16

Where the competent pricing departments of the State Council or other departments set the price of any important commodity or service,
it shall, according to the relevant provisions, be reported to the State Council for approval.

Article 17

If the pricing organ is an industrial competent department, it shall solicit for the opinions of the competent pricing departments
at the same level in written form before any decision is made.

Article 18

Where the relevant pricing is deemed as necessary after a pricing plan has been collectively deliberated, the pricing organ shall,
at a proper time, make a decision on pricing, which shall include the following contents:

(1)

The items subject to pricing and the proposed price;

(2)

The basis for pricing;

(3)

The time and scope for implementing the price; and

(4)

The name of the pricing organ that has made the decision as well as the day when the decision is made.

The Decision on Pricing shall be affixed with the seal of the pricing organ that has made the decision on pricing.

Article 19

Apart form that any state secret is involved, after a decision on pricing is made, the pricing organ that has made the decision shall
publicize it to the general public via the media such as the designated newspapers and websites.

Article 20

The pricing organs shall establish and improve the internal supervision and restriction mechanism for pricing.

The competent pricing department at a higher level shall take charge of the supervision over the pricing activities of its inferior
competent pricing departments.

Any pricing activity conducted by the competent industrial department shall be subject to the supervision of the competent pricing
departments at the same level.

Article 21

If any advisor is involved in a pricing activity, the pricing organs shall, in a proper way, inform the advisor of the treatment
on his advice.

Article 22

After a decision on pricing is implemented, the pricing organ shall conduct follow-up investigation and supervision on the implementation
of the pricing decision, which shall include the following contents:

(1)

The implementation of the price and the existing problems thereabout;

(2)

The impact on the price as incurred from the business operation, costs, labor productivity and the fluctuation of the market situations
of supply and demand;

(3)

The market situations of supply and demand of the relevant goods or services as well as the price fluctuation; and

(4)

The opinions from all social aspects on the price as set.

Article 23

Where the pricing organ has any law-breaking act, the competent pricing department of the government shall carry out the corresponding
investigation and punishment according to the Price Law.

Article 24

Where any functionary of the pricing organs has any law-breaking act during the pricing activities and thus a crime is constituted,
he shall be subject to criminal liabilities according to law. Where a crime is not constituted, he shall be imposed upon an administrative
sanction according to law.

Article 25

The pricing organs shall, in accordance with the administrative rules for archival filing, establish pricing files and put them on
records.

Article 26

The competent pricing department of a province, autonomous region, or municipality directly under the Central Government may, according
to the present rules and in combination of the local situation, formulate the detailed implementation rules.

Article 27

The power to interpret the present rules shall remain with the National Development and Reform Commission.

Article 28

The present rules shall go into effect as of May 1, 2006. The Rules for the Pricing Activities of the Governments (for Trial Implementation)
as promulgated by the National Development and Reform Commission on December 16, 2001 shall be abolished simultaneously.



 
National Development and Reform Commission
2006-03-17

 







CIRCULAR ON COOPERATING WITH COMPETENT DEPARTMENTS OF COMMERCE ON THE ESTABLISHMENT ADMINISTRATION OF FOREIGN-INVESTED CONSTRUCTION ENTERPRISES AND FOREIGN-INVESTED CONSTRUCTION ENGINEERING DESIGN ENTERPRISES

the Ministry of Construction

Circular on Cooperating with Competent Departments of Commerce on the Establishment Administration of Foreign-invested Construction
Enterprises and Foreign-invested Construction Engineering Design Enterprises

Jian Shi Han [2006] No. 76

The construction departments of all provinces and autonomous regions, the construction commissions of all municipalities directly
under the Central Government, and the Construction Administrative Bureaus of Jiangsu and Shandong Provinces:

For the purpose of simplifying the examination and approval formalities for establishing foreign-invested enterprises, in accordance
with the Provisions on the Administration of Foreign-invested Construction Enterprises (Order No. 113 of the Ministry of Construction
and the Ministry of Foreign Trade and Economic Cooperation), the Provisions on the Administration of Foreign-invested Construction
Engineering Design Enterprises (Order No. 114 of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation),
the Ministry of Commerce printed and issued the Circular of the Ministry of Commerce on Entrusting the Provincial Commercial Administrative
Departments to Examine and Approve Foreign-invested Construction Enterprises (Shang Zihan [2005] No. 90) in January 2006, as well
as the Circular of the Ministry of Commerce on Entrusting the Provincial Commercial Administrative Departments to Examine and Administer
Foreign-invested Construction Engineering Design Enterprises (Shang Zihan [2005] No. 92 ), and the provincial commercial administrative
departments and the administrative committees of national economic and technological development zones are entrusted to examine and
approve the establishment of foreign-invested construction enterprises and foreign-funded construction engineering design enterprises.
For the purpose of cooperating the commercial administrative departments to do well in the work concerning the examination and approval
of the establishment of foreign-invested enterprises, we hereby notify the relative matters as follows:

I.

Regarding an application for the level A+ or A qualification of a general contractor of construction or the level A qualification
of a professional contractor, the Ministry of Commerce should solicit the opinions from the Ministry of Construction as of the receipt
of application materials in accordance with Article 7 of the Provisions on the Administration of Foreign-invested Construction Enterprises,
however, as of the present circular, the provincial commercial administrative department shall solicit the opinions from the construction
administrative department at the same level in accordance with this Circular.

II.

Regarding an application for the level A qualification for construction engineering design or the level A or B qualification for any
other construction engineering design, the Ministry of Commerce should solicit the opinions from the Ministry of Construction as
of the receipt of application materials in accordance with Article 7 of the Provisions on the Administration of Foreign-invested
Construction Engineering Design Enterprises, however, as of the present circular, the provincial commercial administrative department
shall solicit the opinions from the construction administrative department at the same level in accordance with this Circular.

The provincial construction administrative departments shall strictly carry out the above-mentioned provisions; and shall, in accordance
with Article 22 of the Provisions on the Administration of Foreign-funded Construction Enterprises and the Measures of the Ministry
of Construction for the Implementation of the Relevant Qualification Administration in the Provisions on the Administration of Foreign-invested
Construction Enterprises (Jian Shi [2003] No. 73), make primary examination and approval on whether the enterprises have the qualifications
for directly applying for the same levels in the letters of local commercial administrative departments for soliciting opinions.

The relevant qualification administrative departments shall carry out specific examination on the qualifications for the enterprises
in accordance with the relative provisions on the qualification administration.

Ministry of Construction of the People’s Republic of China

March 29, 2006



 
the Ministry of Construction
2006-03-29

 







ANNOUNCEMENT NO.34, 2006 OF MINISTRY OF COMMERCE, PROMULGATING ARTICLE NAMES OF RELATED TEXTILES AND APPARELS, AND TAX NUMBER, TIME LIMIT FOR ADMINISTRATION AND RELATED REQUIREMENTS OF BRAZIL

Ministry of Commerce

Announcement No.34, 2006 of Ministry of Commerce, Promulgating Article Names of Related Textiles and Apparels, and Tax Number, Time
Limit for Administration and Related Requirements of Brazil

[2006] No. 34

In accordance with related articles of Ministry of Commerce of the People’s Republic of China and the Ministry of Development, Industry
and Foreign Trade of Federative Republic of Brazil MOU on Strengthening Cooperation in Trade and Investment, Brazil started its unilateral
import administration on silk, corduroy, polyester fiber, sweater and garment, knitted shirt and T-shirt, and coat, overcoat and
jacket, chemical fabric and embroidery originating from China from Apr 3, 2006 while China would not carry out export administration
on the said products. For domestic enterprises’ understanding of specifics of the import administration of Brazil on a part of textiles
and apparels and convenience of exporting related products, article names of related textiles and apparels, and tax number, time
limit for administration and related requirements of Brazil are now announced as follows:

1.

Article Names and Relevant Tax Number

(1)

Corduroy: 58012200, 58012300;

(2)

Embroidery: 58109100, 58109200, 58109900;

(3)

Knitted shirt and T-shirt: 61051000, 61052000, 61059000, 61061000, 61062000, 61069000, 61091000, 61099000;

(4)

Polyester fiber: 54023300;

(5)

Chemical fabric: 54075100, 54075210, 54075220, 54075300, 54075400, 54076100, 54072000, 54073000, 54074100, 54074200, 54074300, 54074400,
54077100, 54077200, 54077300, 54077400, 54078100, 54078200, 54078300, 54078400, 55151200, 55152100, 55159100, 55162100, 55162200,
55162300, 55162400, 54079100, 54079200, 54079300, 54079400, 54083100, 54083200, 54083300, 54083400, 54076900;

(6)

Coat, overcoat and jacket: 61013000, 61032300, 62011300, 62019300, 62032300, 62102000, 61023000, 61042300, 61043300, 62021300, 62029300,
62042300, 62043300, 62103000;

(7)

Sweater and garment: 61102000, 61179000, 61101100, 61101200, 61101900, 61103000, 61109000;

(8)

Silk: 50071010, 50071090, 50072010, 50072090, 50079000.

2.

Time Limit for Administration

From April of 2006 to December of 2008

3.

Related requirements

When exporting above products to Brazil, enterprises should first make sure whether the importers have already received related import
documents of approval of from Brazil government to avoid losses.

Ministry of Commerce

Apr 24, 2006



 
Ministry of Commerce
2006-04-24

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION ON REPEALING THE INTERIM MEASURES FOR THE ADMINISTRATION OF CONVERTIBLE CORPORATE BONDS

China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on Repealing the Interim Measures for the Administration of Convertible Corporate
Bonds

No. 42 [2006] of China Securities Regulatory Commission

Upon the approval of the State Council, the Interim Measures for the Administration of Convertible Corporate Bonds, which were permitted
by the State Council on March 8, 1997 and promulgated by the Securities Commission of the State Council on March 25, 1997, shall
be repealed on May 8, 2006.

China Securities Regulatory Commission

May 6th, 2006



 
China Securities Regulatory Commission
2006-05-06

 







ANNOUNCEMENT NO. 32, 2006 OF MINISTRY OF COMMERCE ON FINAL ARBITRATION OF ANTI-DUMPING INVESTIGATION ON PYROCATECHOL ORIGINATING FROM THE UNITED STATES AND JAPAN

Ministry of Commerce

Announcement No. 32, 2006 of Ministry of Commerce on Final Arbitration of Anti-dumping Investigation on Pyrocatechol Originating from
the United States and Japan

[2006] No. 32

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce released announcement on May 31,
2005, deciding to carry out anti-dumping investigation on pyrocatechol (hereinafter referred to as “investigated commodity”) originating
from the United States and Japan.

In line with investigation, Ministry of Commerce finally verdicts dumping of the investigated commodity, injures the domestic pyrocatechol
industry, and the existence of causality between dumping of the investigated commodity and the injury of domestic industry.

In accordance with related regulations of Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State
Council decides to impose anti-dumping duties on pyrocatechol originating from the United States and t Japan as from May 22, 2006.

The tariff code of the investigated commodity is 29072910.

Rate of Anti-dumping Duties on Different Companies:

American companies:

RHODIA INC 4%;

Other American companies 46.81%

Companies in Japan 42.86%

In case importers cannot provide certificate of origin and the Customs cannot confirm the origin of the imported pyrocatechol either,
a maximum anti-dumping duties among the effective anti-dumping measures will be imposed on the imported investigated commodity.

As from May 22, 2006, importers should pay relevant anti-dumping duties for import of pyrocatechol originating from the United States
and Japan. The formula for counting of anti-dumping duties:

Amount of anti-dumping duty= duty-paying value * rate of anti-dumping duty

The duration of the anti-dumping duties on pyrocatechol originating from the United States and Japan is 5 years as from May 22, 2006.

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Pyrocatechol Originating from the United States
and Japan(Omitted)

Ministry of Commerce

May 22, 2006



 
Ministry of Commerce
2006-05-22

 







CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RELATIVE ISSUES CONCERNING THE ADJUSTMENT OF HOUSING CREDIT POLICIES

Circular of the People’s Bank of China on Relative Issues concerning the Adjustment of Housing Credit Policies Yin Fa [2006] No.184

All the state-owned commercial banks, joint stock commercial banks, the Shanghai headquarters of the People’s Bank of China and all
branches and business management departments of the People’s Bank of China, the central sub-branches of the People’s Bank of China
in all provincial capital cities, and the central sub-branches of the People’s Bank of China in all vice-provincial cities,

It is specified in the Circular of the General Office of the State Council on Transferring the Opinions of the Ministry of Construction
and Other Departments on Adjusting House Supply Structure and Stabilizing House Price (Guo Ban Fa [2006] No.37, hereinafter referred
to as the Circular) that: From June 1, 2006, the proportion of the down payment of the mortgage loans for individual houses shall
be no less than 30%. But the provisions on the proportion of the down payment of 20% for houses purchased for living with less than
90 square meters in the dwelling size shall still be followed. For the purpose of implementing the spirit of the Circular, the following
Circular on the relative matters is hereby made: I. Each commercial bank shall pay close attention to and seriously implement the decisions and plans of the Central Government concerning
strengthening the adjustment and control on real estate market, and formulate implementation measures strictly according to the requirements
of the Circular and in combination with the reality to carry out the new housing credit policy.
II. When accepting applications for housing loans, each commercial bank shall require the applicants to specify the use for buying houses
in light of the facts, and determine the minimum down payment of the housing loans strictly according to the provisions of the Circular,
and input information on housing mortgage loans into the basic database for personal credit information of the People’s Bank of China
in light of relative provisions in time.
III. Each branch of the People’s Bank of China shall pay close attention to the change of the real estate market, strengthen monitoring
and analysis, and reinforce the “Window Guidance”, and urge commercial banks to carry out the aforesaid provisions, and report the
relative information in time.

The Shanghai headquarters of the People’s Bank of China and each branch and business management department of the People’s Bank of
China shall forward this Circular to each urban commercial bank and urban and rural credit cooperatives within areas under their
jurisdiction. People’s Bank of China May 31, 2006



 
People’s Bank of China
2006-05-31

 







ANNOUNCEMENT NO. 47, 2006 OF MINISTRY OF COMMERCE, ON COMPETITIVE BIDDING OF NATIONAL RESERVE OF SUGAR PROCESSING

Announcement No. 47, 2006 of Ministry of Commerce, on Competitive Bidding of National Reserve of Sugar Processing

[2006] No. 47

In accordance with the requirement of Announcement 26, 2006 of National Development and Reform Commission, Ministry of Commerce and
Ministry of Finance, part of national reserve of sugar shall be processed through competitive bidding. Matters of Concern are listed
as follows:

1.

Organization and Management:

Assessment Group shall be established so as to confirm the processing enterprises, processing amount and expenses. Assessment Group
shall also be in charge of the competitive bidding and the management of processing.

China Merchandise Reserve Management Center shall in charge of the tasks of organization and implementation.

2.

Processing Amount, Location out of Warehouse and Project Phases Division of Raw Sugar:

The processing total is 200,000 tons, which were put into storage from 2004 to 2005. See Appendix 1 for details.

Processing of raw sugar shall be conducted with competitive bidding after being divided into shares and coded. Each share is 5000
tons.

3.

Processing sort and Sugar Recovery:

The raw sugar is white granulated sugar. Sugar recovery shall be more than 92%.

4.

Product Sugar Quality, Package and Specification Requirement:

The quality of white granulated sugar shall be Grade one or above of National Standard GB317-1998. The Package quality of white granulated
sugar shall meet the national standard. Net Content of each bag is 50 kg.

5.

Requirement on Allocate and Transport, Processing Schedule and Putting Product Sugar in Storage:

After being chosen, the processing enterprises shall be prepared promptly. Then, after receiving the notice on starting operation,
the processing work shall be started in accordance with the required time. The product sugar shall be reserved in time into the warehousing
storage. Taking delivery of goods shall be conducted directly at the product sugar depot of the processing enterprise.

6.

Competitive bidding of processing price is between 240-280 yuan per ton. Vicious competitive bidding on price shall be prohibited.

7.

Earnest Money for Bidding

Earnest money shall be submitted before 17: 00 pm of June 18, 2006.

8.

Qualification Requirements on Processing Enterprises:

The daily processing capacity of processing enterprises shall be no less than 500 tons and the storage capacity shall be no less than
20,000 tons. The processing enterprises shall be close to the storage location. The enterprises shall be creditworthy, with high
credit grade and no negative records. (See Appendix for details)

Specific competitive bidding measures and points for attention shall be notified later.

Ministry of Commerce

June 15, 2006



 
Ministry of Commerce
2006-06-15

 







THE PROVISIONS ON THE ADMINISTRATION OF INTERNATIONAL VERIFICATION ON THE IMPORT AND EXPORT OF CHEMICALS LIABLE TO PRODUCING NARCOTIC DRUGS






Decree of the Ministry of Commerce and the Ministry of Public Security

No.8

The Provisions on the Administration of International Verification on the Import and Export of Chemicals Liable to Producing Narcotic
Drugs, which were deliberated and adopted at the 5th ministerial meeting of the Ministry of Commerce on May 17th, 2006, are hereby
promulgated upon the approval of the Ministry of Public Security, and shall come into force 30 days later as of the date of promulgation.

Bo Xilai, the Minister of Commerce

Zhou Yongkang, the Minister of Public Security

September 7, 2006

The Provisions on the Administration of International Verification on the Import and Export of Chemicals Liable to Producing Narcotic
Drugs

Article 1

With a view to preventing chemicals liable to producing narcotic drugs from flowing into illegal channels and regulating the international
verification on the import and export of chemicals liable to producing narcotic drugs, the present Measures are formulated according
to the Regulations on the Administration of Chemicals Liable to Producing Narcotic Drugs.

Article 2

The import and export of chemicals liable to producing narcotic drugs (hereinafter referred to as chemicals subject to verification)
as listed in the Attachment of the present Provisions, namely, the Catalogue for the Administration of International Verification
upon the Import and Export of Chemicals Liable to Producing Narcotic Drugs (hereinafter referred to as Catalogue), shall adopt the
administrative system of international verification.

The Ministry of Commerce shall, in conjunction with the Ministry of Public Security, adjust the Catalogue in accordance with the actual
situations, and shall publish it in the form of announcement.

Article 3

The Ministry of Commerce and the Ministry of Public Security shall jointly take charge of the administration of international verification
upon the import and export of chemicals liable to producing narcotic drugs throughout the country.

Article 4

When importing and exporting the chemicals subject to verification, the operator of the import and export of the chemicals liable
to producing narcotic drugs (hereinafter referred to as operator) shall apply for permit according to the related provisions of the
Provisions on the Administration of the Import and Export of Chemicals Liable to Producing Narcotic Drugs.

Article 5

In case an operator applies for exporting chemicals subject to verification, the Ministry of Commerce shall examine it within 5 days
as of the receipt of the related digital data and written materials; if it complies with the related provisions, the Ministry of
Commerce shall transfer the digital data to the Ministry of Public Security for international verification.

Article 6

The Ministry of Commerce shall examine it within 3 days as of the receipt of the digital data transferred by the Ministry of Commerce;
if the application complies with the related provisions, it shall send it to the competent governmental department of the importing
country or region for examination and request it to give a reply within 10 days.

During the process of examination of the digital data, the Ministry of Commerce may, under the request of the Ministry of Public Security,
provide related written materials.

Article 7

As regards an application that has been confirmed and replied by the competent governmental department of the importing country or
region, the Ministry of Public Security shall notify the Ministry of Commerce within 3 days as of the receipt of the reply on the
verification confirmation.

In case the competent governmental department of the importing country or region fails to reply upon the expiration of the time limit,
the Ministry of Public Security may, pursuant to the international practices and in light of the specific products and the different
countries and regions, analyze and bring forward suggestions on whether or not to permit the export and notify the Ministry of Commerce
in written form.

Article 8

As regards the export of the samples of chemicals subject to verification, it is not necessary to conduct international verification
on those of 100g or less in quantity; the Ministry of Commerce shall handle it according to the Provisions on the Administration
of the Import and Export of Chemicals Liable to Producing Narcotic Drugs, and shall notify the results to the Ministry of Public
Security.

Article 9

When importing chemicals liable to producing narcotic drugs by an operator, where the competent governmental department of the importing
country or region requests our country to conduct international verification, the Ministry of Public Security shall, within 5 days
as of the receipt of the request, transfer the related materials to the Ministry of Commerce for confirmation.

The Ministry of Commerce shall verify the authenticity and qualification of the operator and the rationality of the purposes of the
importing chemicals liable to producing narcotic drugs. When it is necessary, the Ministry of Commerce may entrust a competent department
of commerce at the provincial level to verify them, which shall report the verification results within 10 days as of the date of
being entrusted by the Ministry of Commerce. The Ministry of Commerce shall timely feedback the verification results to the Ministry
of Public Security.

Where it is necessary to verify the actual purposes and doses of the importing chemicals liable to producing narcotic drugs of an
operator, the Ministry of Public Security may entrust a local public security organ to verify them, which shall report the verification
results within 10 days as of the date being entrusted by the Ministry of Public Security. The Ministry of Public Security shall notify
the Ministry of Commerce in a timely manner.

The Ministry of Public Security shall timely notify the competent governmental department of the importing country or region after
receiving the verification results from the Ministry of Commerce or a local public security organ.

Article 10

The operator of chemicals subject to verification shall strengthen its internal administration, establish and improve the archive
administration of the import and export of the chemicals subject to verification, keep the archives for at least two years for future
reference, and shall appoint special personnel to take charge of the related work of examining the import and export of the chemicals
subject to verification.

The operator of chemicals subject to verification shall actively cooperate with the Ministry of Commerce and the public security organs
during the process of verification.

Article 11

In case it is found that the planned import or export chemicals subject to verification are possible to flow into illegal channels,
the Ministry of Commerce may cancel the related licenses it has already issued.

Article 12

The Ministry of Commerce and the Ministry of Public Securities may publish the results of international verification and the violations
of regulations by operators on a regular or irregular basis.

Article 13

In case an operator of the chemicals subject to verification violates the provision of Article 10 , the Ministry of Commerce shall
give him a warning; if the circumstance is serious, it may impose a fine not more than 30,000 Yuan; if there is any violation against
the public security administration, the public security organ may impose punishments of public security administration upon him;
if a crime is constituted, the criminal liabilities shall be investigated according to law.

Article 14

The present Measures shall come into force 30 days after the date of promulgation. The Provisions of the former Ministry of Foreign
Trade and Economic Cooperation and the Ministry of Public Security on the Administration of International Verification on the Import
and Export of Chemicals Liable to Producing Narcotic Drugs (Wai Jing Mao Mao Fa [2002] No. 147) shall be repealed concurrently.

Attachment:￿￿Catalogue for the Administration of International Verification on the Import and Export of Chemicals Liable to Producing
Narcotic Drugs


Attachment

￿￿

Attachment:

Catalogue for the Administration of International Verification on the Import and Export of Chemicals Liable to Producing Narcotic Drugs

￿￿

Serial No.

Commodity Name

Commodity Code

Category I

1

Ephedrine (Ephedrine, Ephedrine Hydrochloride)

2939410010

2

Ephedrine Sulfate

2939410020

3

DL-Ephedrine Hydrochloric

2939410030

4

Ephedrine Oxalic

2939410040

5

Pseudoephedrine (Pseudoephedrine, Pseudoephedrine Hydrochloride)

2939420010

6

Pseudoephedrine Sulfate

2939420020

7

Methyl Ephedrine Hydrochloride

2939490010

8

D,L-Methylephedrine Hydrochloric

2939490020

9

Norephedrine and its Salt

2939490030

10

Ephedrine Extract Powder Used for Producing Pesticides

1302199011

11

Ephedrine Extract Used for Producing Pesticides

1302199012

12

Ephedrine Extract Powder Used for Producing Medicine

1302199091

13

Ephedrine Extract Used for Producing Medicine

1302199092

14

Other Ephedrine Extract Powder

1302199093

15

Other Ephedrine Extract

1302199094

16

Ephedrine Herbal Powder Used as Medicinal Materials

1211903910

17

Ephedrine Herbal Powder Used as Perfume Spices

1211905010

18

Ephedrine Herbal Powder for Other Uses

1211909910

19

Ephedrine Single Preparation ((Pseudo) Ephedrine Hydrochloric Tablets, Ephedrine Hydrochloric Injection, Ephedrine Hydrochloric Tablets, Ephedrine Tablets Sulfate)

3004409010

20

Piperonal (Heliotrope Aldehyde, 3, 4-Dioxamethyl Methanal, Heliotropine)

2932930000

21

l-Phenyl-2-Acetone (Phenylpropyl Acetone)

2914310000

22

3,4-Methylenedioxyphenyl-2-Propanone

2932920000

23

Safrole (4-allyl -1,2- Dioxamethyl Benzene)

2932940000

24

Iso-Safrole (4-Propenyl-1, 2- Dioxamethyl Benzene)

2932910000

25

Sassafras Oil

3301299010

26

N-Acetyl O-Amino Benzoic Acid(N-Acetyl Anthranilic Acid, 2-Acetyl AminoBenzene Acid )

2924230010

27

Ergometrine

2939610010

28

Ergotamine

2939620010

29

Lysergic Acid

2939630010

Category II

30

Phenyl Acetic Acid

2916340010

31

Acetic Anhydride Oxide (Acetic Anhydride)

2915240000

32

Potassium Permanganate

2841610000

33

O-Amino Benzoic Acid (Anthranilic Aacid)

2922431000


CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE STANDARD OF THE TAXABLE AMOUNT OF COAL RESOURCE TAX OF HEBEI PROVINCE

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Standard of the Taxable Amount of Coal
Resource Tax of Hebei Province

Cai Shui [2006] NO.137

The public finance department and the local taxation bureau of Hebei Province:

It is decided upon deliberation that the standard of the coal resource tax amount to be paid in your province will be increased to
3 yuan each ton as from September 1, 2006.

Please abide hereby.

Ministry of Finance

State Administration of Taxation

September 15, 2006

 
Ministry of Finance, State Administration of Taxation
2006-09-15

 




MEASURES FOR PUBLIC FINANCE EXAMINATION WORK

Ministry of Finance

Order of the Ministry of Finance

No. 32

The Measures for Public Finance Examination Work, which were adopted at the executive meeting of the Ministry of Finance on January
10, 2006 upon deliberation, are hereby promulgated and shall enter into effect as of the day of March 1, 2006.

Minister of the Ministry of Finance, Jin Renqing

January 26, 2006

Measures for Public Finance Examination Work

Article 1

The present Measures are formulated in accordance with the laws of the Budget Law of the People’s Republic of China and the Regulation
on Penalties and Sanctions against Illegal Fiscal Acts and other administrative regulations for the purpose of regulating the public
finance examination work, guaranteeing and supervising the effective implementation of finance examination conducted by the department
of finance and protecting the legitimate rights and interests of citizens, legal persons and other organizations.

Article 2

The present Measures shall be applied to any finance examination implemented in accordance with the law by the departments of finance
of the people’s governments at or above the county level and the offices dispatched by the departments of finance of the people’s
governments at or above the provincial level (hereinafter uniformly referred to as the finance department).

Article 3

The term “public finance examination” as mentioned in the present Measures refers to an act that the finance department carries out
an examination on the implementation of regulations on finance and taxes and the matters of administration on fiscal, finance and
accounting etc. by entities and individuals for the purpose of executing its duties and functions of supervision over public finance,
rectifying any illegal fiscal act and maintaining the fiscal and economic order of the state.

Article 4

When implementing any public finance examination, the finance department shall follow the principles of legality, objectivity, fairness
and openness.

Article 5

The finance department shall, in accordance with the provisions of laws, regulations, rules as well as the present Measures, implement
public finance examination within the scope of its prescribed powers and functions, and draw a relevant conclusion on examination
or decision on treatment or punishment in accordance with law.

Any dispute on the jurisdiction of public finance examination shall be reported to the same superior finance department to designate
the jurisdiction.

Article 6

The finance department shall establish an annual plan of public finance examination and organize and implement relevant public finance
examination in accordance with the plan, or organize and carry out the relevant public finance examination in accordance with the
requirements of daily fiscal administration.

Article 7

Where the finance department implements any public finance examination, an examination team shall be set up and a team leader shall
be designated as well. Examination teams shall adopt a leader responsibility system.

Article 8

The examiners of an examination team shall consist of functionaries of the finance department, who shall be qualified as follows:

(1)

Being familiar with the relevant laws, regulations, rules and policies;

(2)

Mastering the relevant professional knowledge; and

(3)

Having the capability of investigation and research, comprehensive analysis and literal expression.

Article 9

In accordance with the requirements, the finance department may invite special institutions or personnel with specialized knowledge
to assist the relevant examiners to implement the finance examination.

Article 10

Any examiner who has any direct interest with any entity or individual under examination (hereinafter uniformly referred to as the
examinee) shall withdraw. Where any examinee believes that any examiner has any interest with him, he may require the withdrawal
of the examiner.

The principal of the finance department shall be responsible for making decision on the withdrawal of any examiner.

Article 11

The examiners shall comply with the relevant provisions of the state on confidentiality and shall not reveal any state secret or commercial
secret learned from the examination or use any data as learned from the examination for any matter impertinent to the examination.

Article 12

Before the implementation of any finance examination, the examination team shall be familiar with the relevant laws, regulations,
rules and policies concerning the examined items, find out the essential information of the relevant examinee and formulate a work
plan for public finance examination.

Article 13

Where the finance department implements any public finance examination, it shall send a Notice on Public Finance Examination to the
examinee 3 workdays before the relevant examination.

Where the finance department considers that the sending of a Notice on Public Finance Examination 3 workdays before the relevant examination
will cause any negative impact on the examination, it may, with the approval of the principal of the finance department, the Notice
on Public Finance Examination may be sent at a proper time before implementing the public finance examination.

The contents in a Notice on Public Finance Examination shall be as follows:

(1)

The name of the examinee;

(2)

The basis, scope, contents, means and time of the examination;

(3)

The specific requirement to the relevant examinee on cooperating with the work of examination;

(4)

A name list of the leader and examiners of the examination team and their contact ways; and

(5)

The seal of the finance department and the date of issuance.

Article 14

Where any public finance examination is implemented, there shall be not less than 2 examiners, who shall show the relevant examinee
their certificates.

The examiners may inquire of the relevant examinee about the relevant information, wherein the relevant examinee shall cooperate with
them by replying to the inquiries and reflecting the circs faithfully. A transcript shall be formulated for an inquiry, which shall
bear the signature or seal of the examinee.

Article 15

Where any public finance examination is implemented, the examiners may require the relevant examinee to provide relevant materials,
which may be photocopied thereof.

Where any material as provided is written in a foreign language or in any language of a minority ethnical group, the examinee shall
translate the said material into Chinese.

Article 16

Where any public finance examination is implemented, such methods as account check, inventory check, inquiry and letter-confirmation,
calculation and analytical check may be adopted by the examiners.

Article 17

Where any public finance examination is implemented, with the approval of the principal of the department of finance, the relevant
examiners may inquire the relevant entity that has any economic and business relation with the examinee about the relevant information
and may also inquire the relevant financial institution about the deposit of the examinee under examination according to law.

Any examiner shall, when inquiring about the relevant deposit, hold the Notice on Deposit Inquiry as issued by the finance department
and perform the obligation of confidentiality.

Article 18

Where any public finance examination is implemented, and under any circumstance that the relevant evidence may be destroyed or lost
or hard to obtain later, the said evidence may be registered for preservation in advance upon the approval of the principal of the
finance department and a decision of treatment shall be made within 7 workdays timely. During this period, the relevant examinee
or relevant personnel shall not destroy by melting or burning or transfer the evidence.

Article 19

The certification materials as obtained by any examiner in an examination shall bear the signature or seal of the relevant provider.

For any material that doesn’t bear the signature or seal of the relevant provider, the examiner shall give a note of the reasons.

Article 20

Where any public finance examination is implemented, the relevant examiner shall make records and extracts on the contents and matters
under examination, and formulate a draft on public finance examination, which shall bear the signature or seal of the examinee.

Article 21

The leader of an examination team shall conduct supervision over the work quality of other examiners in the team and shall conduct
necessary examination and review on the relevant matters.

Article 22

When meeting with any serious problem during the implementation of examination, the examination team shall report it to the finance
department for instructions in time.

Article 23

Before any examination is concluded, an examination team shall solicit the opinions of the relevant examinee on such matters as the
fundamental state of implementation on the examination as well as the subsistent problem of the examinee in written form. The relevant
examinee shall, within 5 workdays as of the day when he receives a letter of opinion solicitation in written form, bring up written
opinions or explanations. Where the relevant examinee fails to refer any written opinion or statement within the prescribed time
limit, it shall be considered to have no different objection.

Article 24

An examination team shall, within 10 workdays as of the day when the relevant examination comes to an end, submit to the finance department
a written report on public finance examination. Under any special circumstance, the time limit to submit a report on public finance
examination may be prolonged upon approval, which shall be not more than 30 days at the most.

An examination team shall, when handing in a report on public finance examination, simultaneously hand in such materials as administrative
treatment, suggestion on penalties or suggestion on transfer for treatment as well as a draft on public finance examination.

Article 25

A report on public finance examination shall include such contents as follows:

(1)

The brief introduction of the examinee;

(2)

The scope, contents, means and time of the examination;

(3)

The implementation of regulations on finance and taxes by the examinee as well as the essential information on such administrative
matters as fiscal, finance and accounting;

(4)

The basic facts of fiscal illegal act of the examinee as well as the basis and evidence for confirmation;

(5)

The opinions or statement of the examinee;

(6)

Any other matter that shall be submitted to the finance department; and

(7)

The signature of the leader of the examination team as well as the date when the report on public finance examination is filed.

Article 26

The finance department shall establish and perfect a check system of public finance examination, authorize the relevant internal functionary
department or special personnel to have a check on the report of public finance examination as well as other relevant materials as
handed in by the examination team.

Where any functionary in charge of a check has any direct interest with the relevant examinee or examiner, he shall withdraw.

Article 27

The relevant functionary department or special personnel in charge of a check shall conduct the check to the report on public finance
examination and other relevant materials from the following aspects:

(1)

Whether or not the facts as confirmed in the examination are clear;

(2)

Whether or not the evidence as obtained is true and ample;

(3)

Whether or not the procedures of examination are legal;

(4)

Whether or not the legal basis for confirming any illegal fiscal act is proper;

(5)

Whether or not the administrative treatment, suggestion on punishment or suggestion on transfer for treatment is appropriate; and

(6)

Any other matter that shall be checked.

The relevant functionary department or special personnel shall, after a check on the report of the public finance examination, put
forward relevant check opinions.

Article 28

The finance department shall, after conducting an examination on a report of public finance examination and relevant opinions on check,
make the following treatment in accordance with the different circumstances:

(1)

Drawing a conclusion on examination for an examinee without illegal fiscal act;

(2)

Drawing a decision on administrative treatment or punishment to any examinee with illegal fiscal act in accordance with law; or

(3)

Transferring any matter that doesn’t belong to the power limit of this department.

In the case of any great difference between the report on public finance examination and the relevant opinions on check, the finance
department shall order the examination team to make further verification as well as supplement and correct of the relevant information
or materials. Where necessary, another examination team shall be sent to implement renew a public finance examination.

Article 29

The finance department shall, when drawing any decision on administrative treatment or punishment, formulate a decision letter on
administrative treatment or punishment. A Decision Letter on Administrative Treatment or Punishment shall indicate the matters as
follows:

(1)

The name or post_title and address of the party involved;

(2)

The facts in violation of any law, regulation or rule and the relevant evidence;

(3)

The categories and basis of administrative treatment or punishment;

(4)

The means and time limit for the performance of administrative treatment or punishment;

(5)

In the case of dissatisfaction with the relevant administrative treatment or punishment, the means and time limit to apply for an
administrative reconsideration or lodge an administrative litigation; and

(6)

The name of the finance department that has made a decision on administrative treatment or punishment as well as the date when the
decision is made. The Decision Letter on Administrative Treatment or Punishment shall be affixed with the seal of the finance department
that has made the decision.

Article 30

The finance department shall, before making any decision on administrative punishment, notify the party involved of the facts, reasons
and basis for the administrative punishment, and notify the party involved of the rights that he may enjoy in accordance with law.

Any party involved has the right to make statement and defense. The finance department shall fully solicit the opinions of the party
involved and verify the facts, reasons and evidence as brought up by the party involved. Where the relevant facts, reasons and evidence
as brought up by the parties involved are reasonable, the finance department shall adopt them.

Article 31

The finance department shall, before making any decision on administrative punishment where about the right to hold a hearing shall
be notified, inform the party involved of his right to require a hearing. Where any party involved requires a hearing, the finance
department shall organize it.

When the finance department holds a hearing, it shall implement the hearing in accordance with the provisions of the Measures for
Implementing a Hearing on Administrative Punishment by Public Finance Organ (Order of the Ministry of Finance, No.23).

Article 32

The finance department shall, after making a decision on administrative treatment or punishment, send a Decision Letter on Administrative
Treatment or Punishment to the party involved.

The Decision Letter on Administrative Treatment or Punishment shall become effective as of the day of sending.

Article 33

Any party involved who is dissatisfied with any administrative treatment or punishment may apply for an administrative check or lodge
an administrative litigation in accordance with the provisions of the Administrative Review Law of the People’s Republic of China
and the Administrative Litigation Law of the People’s Republic of China.

During the period of any administrative check or administrative litigation, the implementation of the relevant administrative treatment
or punishment shall not be stopped except as otherwise herein provided by law.

Article 34

The finance department shall conduct supervision and examination over the implementation of the relevant administrative treatment
or punishment in accordance with law.

Article 35

Where any examinee has any illegal fiscal act, the finance department may proclaim the illegal fiscal act thereof as well as the relevant
decision on administrative treatment, punishment or sanction.

Article 36

Where any public finance examination is concluded, the finance department shall do a good job in filing for records of the relevant
materials pertinent to public finance examination.

Article 37

Where any functionary of the finance department abuses his power, neglects his duty or misconduct for self-seeking in any public finance
examination, an administrative sanction shall adopted to him in accordance with law. Where any crime is constituted, the offender
shall be subject to relevant criminal liabilities in accordance with law.

Article 38

The finance department shall, when finding any serious problem that may influence the implementation of policies for finance and taxes
or budget, report it to the people’s government at the same level or the finance department at a higher level in a timely manner.

Article 39

Any accounting examination as implemented by the finance department shall be applicable to the present Measures as well as the Measures
for the Implementation of Accounting Supervision by the Public Finance Department (Order of the Ministry of Finance, No.10)

Article 40

The present Measures shall go into effect as of March 1, 2006. The Rules on the Public Finance Examination (Cai Jian Zi [1998] No.223)
as promulgated by the Ministry of Finance on October 8, 1998 shall be abolished simultaneously.



 
Ministry of Finance
2006-01-26

 







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...