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MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF THE TRANSFER OF DEEP PROCESSING TRANSACTION OF THE BONDED GOODS FOR PROCESSING TRADE ACROSS THE CUSTOMS SURVEILLANCE ZONES

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Customs General Administration

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

No. 109

Measures of the Customs of the People’s Republic of China for the Administration of the Transfer of Deep Processing Transaction of
the Bonded Goods for Processing Trade across the Customs Surveillance Zones, adopted at the executive meeting of the Customs General
Administration on January 7, 2004, are hereby promulgated and shall go into effect as of March 1, 2004.

Mou Xinsheng, Director General of the Customs General Administration

January 19, 2004

Measures of the Customs of the People’s Republic of China for the Administration of the Transfer of Deep Processing Transaction of
the Bonded Goods for Processing Trade across the Customs Surveillance Zones

Article 1

The Measures are formulated in accordance with the Customs Law of the People’s Republic of China and other relevant laws and administrative
regulations for the purposes of promoting the sound development of processing trade, strengthening and regulating the administration
of the transfer of deep processing transaction of the bonded goods for processing trade across the costumers surveillance zones.

Article 2

The transfer of deep processing transaction of the bonded goods for processing trade across the customs surveillance zones referred
to in the Measures means business operations in which the processing trade enterprise transfers the bonded materials imported for
processing trade to another processing trade enterprise in the surveillance zone of another customer office directly under the leadership
of the Customs General Administration for further processing and re-export (hereinafter referred to as “the transfer”).

Article 3

Processing trade enterprise conducting the transfer, be they transferring in or transferring out, shall declare to the competent customs
authorities respectively their transfer plan, and may proceed with receiving and delivering the goods and customs declaration procedures
after being recorded by the competent customs authorities from both sides.

The customs shall install a separate category calculating the transferred goods for further processing in processing trade.

Article 4

The enterprise engaging in transferring in and transferring out goods for processing shall submit an Application Form for the Transfer
of Deep Processing Transaction of the Bonded Goods for Processing Trade of the Customs of the People’s Republic of China (hereinafter
referred to as “the Application Form”, see Attachment 1), and fill in the items of the Application Form accurately.

An Application Form shall only correspond to a transferring-in enterprise and a transferring-out enterprise; an Application form shall
only corresponding to one Processing Trade Handbook of the transferring-out enterprise (including the electronic account book for
computer interconnected supervision, hereinafter referred to as the Handbook), but may correspond to several Handbooks of the transferring-in
enterprises. The number, quantity and measurement of the commodities filed by both sides shall be consistent with each other.

Article 5

The processing trade enterprise conducting the transfer shall make and fill in the Bill of Receiving and Delivering the Transfer Goods
as has been provided for by the customs (see Attachment 3, printed by the enterprise itself in line with the set format). The Bill
of Receiving and Delivering the Transfer Goods shall include the following contents:

(1)

Marking such words as “Bonded Goods for Transfer”;

(2)

Listing such contents as the names of the transferring-in or transferring-out enterprises, the names, standards and quantity of the
commodities, the time of receiving and delivering the goods, serial number of the bill;

(3)

Obtaining the special seal for the transfer business after file-keeping by the competent customs authority to attach to the record
of every batch of receiving and delivering goods.

Article 6

If the processing trade enterprise applying for the transfer matches any of the following descriptions, the application shall not
be accepted by the customs:

(1)

Failing to meet the supervision requirements of the customs, being ordered by the customs to rectify and reform within a specified
timeframe, and being in the course of rectification and reform;

(2)

Failing to submit the Handbook for verification on time;

(3)

Failing to make and fill in the Bill of Receiving and Delivering the Transfer Goods according to Article 5 of the Measures;

(4)

Being involved in smuggling and placed on file for investigation, with the case pending settlement.

Article 7

The transferring-in and transferring-out enterprise shall complete the record of the transfer plan for file-keeping according to the
following provisions:

(1)

The transferring-out enterprise shall fill in its transferring-out plan in the Application Form (in four sheets), and recording with
the customs for file-keeping where the goods are transferred out by presenting the Application Form;

(2)

The customs concerned in the transferring-out shall keep the first sheet of the Application Form after completing the file-keeping,
and return the other three copies to the transferring-out enterprise for passing on to the transferring-in enterprise;

(3)

The transferring-in enterprise shall take the other three sheets of the Application Form to record with the customs in the transferring-in
place after filling in the relevant information of the enterprise within 20 days upon completion of file-keeping with the custom
in the transferring-out place. If the transferring-in enterprise fails to hand in the Application Form within 20 days as has been
specified, or, having presented the Application Form, the contents of the Application Form fail to satisfy the provisions of the
customs and are therefore denied approval, the Application Form shall become invalid. The transferring-in or transferring-out enterprise
shall again go through the procedures of filling in the form and submitting it to the customs authority for file-keeping;

(4)

The customs in the transferring-in place shall keep the second sheet of the Application Form and deliver the third and fourth sheet
to the transferring-in or the transferring-out enterprise. Based on these two sheets, the enterprises shall complete the registration
of the transfer involving receiving and delivering the goods as well as file-keeping with the customs authority

Article 8

After completing file-keeping of the transfer with the customs authority, the transferring-in and the transferring-out enterprise
shall engage in receiving and delivering the goods according to the Application Form which has been verified and approved by the
customs of both sides. Each record of receiving and delivering any batch of goods shall be kept accurately in the Registration Form
on the Actual Situation of Transfer of the Bonded Goods (hereinafter referred to as the Registration Form, see Attachment2), and
be attached with the special seal of transfer for the enterprises.

In case of the transferred goods being returned, the transferring-in and transferring-out enterprise shall register the actual situation
of returning goods in the Registration Form, at the same time mark such words as “Returned Goods”, and attach the special seal of
transfer for the enterprises.

Article 9

Having executed receiving or delivering the goods, the transferring-in or transferring-out enterprise shall complete the procedures
of transfer settlement and customs declaration according to the following provisions:

(1)

The transferring-in and transferring-out enterprises shall complete the procedures of transfer settlement and customs declaration
separately with the customs authorities in the transferring-in and transferring-out place respectively. The transferring-in or transferring-out
enterprise may proceed with customs declaration in separate batches or for all goods concerned by presenting an Application Form.
The transferring-in (or transferring-out) enterprise shall complete the declaration of the goods within 90 days after physically
delivering (or receiving) the goods;

(2)

The transferring-in enterprise shall complete the procedures of transfer settlement and customs declaration in the transferring-in
place by way of such forms and documents as the Application Form and the Registration Form, and notify the transferring-out enterprise
of the information concerning transfer settlement and customs declaration no later than the second working day after completing the
declaration of the transferring-in goods;

(3)

The transferring-out enterprise shall complete the procedures of transfer settlement and customs declaration for the transferring-out
goods with the customs in the transferring-out place by way of such forms and documents as the Application Form and the Registration
Form within 10 days after receiving the notice from the transferring-in enterprise;

(4)

The declared price of the transferring-in and transferring-out goods shall be the actual transaction price of the transferred goods;

(5)

One declaration form of the transferring-in goods shall correspond to one declaration form of the transferring-out goods. The serial
number of declaration, number, quantity, price of the goods, and number of the handbook shall be the same in both of the declaration
forms;

(6)

If the transferring goods is declared in separate batches, the enterprise shall provide the original and duplicated copies of the
Application Form and Registration Form at the same time;

(7)

The enterprise failing to apply for the procedures of transfer settlement and customs declaration within the specified timeframe may
apply for the relevant procedures again after being handled by the customs authority according to Article 12 of the Measures.

Article 10

In the event that the transferring enterprise uses foreign exchanges for settling accounts, the customs shall issue the certificate
verifying foreign exchange settlement to attach to the declaration form according to the relevant provisions.

Article 11

If the competent customs authority administers the transfer across the costumers surveillance zones for processing trade through computer
networks, the enterprise may complete the record for file-keeping, registration and declaration of the transfer via the network.

Article 12

If the transferring-in or transferring-out enterprise violates the Measures, the violator shall be dealt with by the customs authority
according to the provisions of the Customs Law of the People’s Republic of China and Rules for the Implementation of Administrative
Penalties of he Customs Law of the People’s Republic of China; if the violation constitutes a criminal offence, the violator shall
be subject to criminal prosecution and punishments in accordance with law.

Article 13

The transfer of deep processing transaction by the enterprises in the same Customs surveillance zone shall be conducted according
to the Measures, and the procedures may be simplified if approved by the relevant Customs office directly under the Customs General
Administration. The specific approaches shall be formulated by the Customs offices concerned.

Article 14

The Customs General Administration is responsible for the interpretation of the Measures.

Article 15

The Measures shall take effect as of March 1, 2004. The Measures of the Customs of the People’s Republic of China for the Administration
of the Transfer of Deep Processing Transaction of the Bonded Goods for Processing Trade across the Costumers Surveillance Zones released
on September 22, 1999 (promulgated by Order No. 75 of the Customs General Administration) shall be abolished simultaneously.

Attachment:

1. Application Form for the Transfer of Deep Processing Transaction of the Bonded Goods for Processing Trade of the Customs of the
People’s Republic of China

2. Registration Form on the Actual Situation of Transfer of the Bonded Goods

3. Bill of Receiving and Delivering the Transferred Goods



 
Customs General Administration
2004-01-19

 






NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF TAX REFUND FOR EXPORT OF COLOR FILMS BY REGARDING THEM AS NEW AND HIGH-TECH PRODUCTS

The State Administration of Taxation

Notice of the State Administration of Taxation on the Issue of Tax Refund for Export of Color Films by Regarding them as New and High-tech
Products

GuoShuiHan [2003] No. 1279

January 19, 2004

Xiamen Bureau of State Taxation:

Recently, we have received Your Municipal People’s Government’s “Letter for Requesting Adjusting and Listing Color Film into the Catalogue
of Chinese New and High-tech Export Products” (XiaFuHan [2003] No. 62), stating that U.S. Kodak Company’s two production bases in
Xiamen mainly produce color films, color printing paper, and big-axis color films, etc. Upon appraisal by experts organized by the
Ministry of Science and Technology, the big-axis color film is listed into “Catalogue of Chinese New and High-tech Export Products”
(2003 Edition), while color film is the final product of big-axis color film, and it has the same production processing and technology
content, thus the color film should also be listed into the “Catalogue of Chinese New and High-tech Export Products” (2003 Edition)
to enjoy the policy of tax refund at the tax levy rate. Since the Ministry of Science and Technology sent a letter to confirm that
the technology content of the color film is the same as that of the big-axis color film, it is suggested that color film be listed
into the catalogue of new and high-tech products. Upon research, we hereby agree to list the color film (HS Code 37025410, commodity
described as “color film”, specification: width = 35 mm, length ï¿¿ï¿¿ meters) into the “Catalogue of Chinese New and High-tech Export
Products” (2003 Edition). Since January 1, 2003, tax refund (exemption) may be handled for exported color films at the tax levy rate.
For detailed information, please refer to the adjusted tax refund rate in the database (2003) of exported commodities. Beginning
from 2004, the tax refund rate in the new database of exported commodities shall be complied with.



 
The State Administration of Taxation
2004-01-19

 






CIRCULAR OF THE MINISTRY OF FINANCE AND STATE ADMINISTRATION OF TAXATION ON THE RELEVANT POLICIES OF INDIVIDUAL INCOME TAX CONCERNING GRANTING AWARDS TO SALES STAFF OF ENTERPRISES IN THE FORM OF FREE TOUR

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and State Administration of Taxation on the Relevant Policies of Individual Income Tax concerning
Granting Awards to Sales Staff of Enterprises in the Form of Free Tour

CaiShui [2004] No.11

January 20, 2004

The finance offices or bureaus and the local taxation bureaus of all provinces, autonomous regions, municipalities directly under
the Central Government, and cities directly under state planning, and the finance bureau of Xinjiang Production and Construction
Corps:

Recently, we have heard from the finance departments of some regions that it has become a widespread phenomenon that some enterprises
and entities would grant awards to their employees with outstanding achievements in marketing by organizing training classes, proseminars,
and work visits free of charge at home or abroad, and they ask the State to further clarify the policy of individual income tax on
these kinds of awards. Upon deliberation, we hereby clarify the relevant individual income tax policy concerning the granting of
awards to marketing personnel for their outstanding achievements by an enterprise or entity in the form of free training classes,
proseminars, or work visits:

According to the relevant provisions of the existing individual income tax laws and regulations of our country, the awards (including
the material form and securities, etc.) for an individual’s outstanding achievements in marketing, which are granted by enterprises
or entities through organizing tourism activities in the name of training classes, proseminars or work visits by exempting him/her
from travel or touring expenses, shall be reckoned in the taxable income of the sales staff member in full amount on the basis of
the expenses occurred, and the individual income tax shall be collected in accordance with the law and be withheld by the enterprises
or entities that bear the foregoing expenditures. The awards enjoyed by the employees of an enterprise shall be included into the
wages and salaries of the current term, and the individual income tax shall be collected on the item of “income from wages and salaries”.
The awards enjoyed by other persons shall be regarded as the labor income of the current term, and the individual income tax shall
be collected on the item of “income from labor remunerations”.

The above prescriptions shall be implemented as of the date of the promulgation of this Circular.



 
Ministry of Finance, State Administration of Taxation
2004-01-20

 






PROVISIONS ON COLLECTIVE CONTRACTS

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Ministry of Labor and Social Security

Order of the Ministry of Labor and Social Security of the People’s Republic of China

No. 22

The Provisions on Collective Contracts, which were adopted at the 7th executive meeting of the Ministry of Labor and Social Security,
are hereby promulgated and shall come into force as of May 1, 2004.

the Minister of the Ministry of Labor and Social Security Zheng Silin

January 20, 2004

Provisions on Collective Contracts

Chapter I General Provisions

Article 1

With a view to regulating the acts of conducting collective negotiations and concluding collective contracts, protecting the legitimate
rights and interests of the workers and the employing entities, the present Provisions are formulated according to the Labor Law
of the People’s Republic of China and the Trade Union Law of the People’s Republic of China.

Article 2

The present Provisions shall apply to the enterprises and the public institutions implementing enterprise-management within the territory
of China (hereinafter referred to as the employing entities) that conduct collective negotiations and conclude collective contracts
with their respective employees.

Article 3

The term “collective contract” as mentioned in the present Provisions refers to the written agreement concluded between an employing
entity and its workers on items such as labor remuneration, working hours, rest and vacations, labor safety and health, professional
training and insurance and welfare through collective negotiation according to laws, regulations and rules. The term “special collective
contract” as mentioned in the present Provisions refers to the special written agreement concluded between an employing entity and
its workers on a specific item according to laws, regulations and rules.

Article 4

When signing a collective contract or a special collective contract and determining the related matters, the employing entity and
its workers shall adopt the way of collective negotiation which shall be conducted mainly in the form of negotiation meeting.

Article 5

When conducting a collective negotiation or signing a collective contract or a special collective contract, the parties concerned
shall adhere to the following principles:

(1)

abiding by laws, regulations and rules and relevant provisions of the state;

(2)

respecting each other and negotiating equally;

(3)

keeping honest and good faith, conducting fair cooperation;

(4)

taking into consideration the legitimate rights and interests of both parties simultaneously;

(5)

not taking extreme actions.

Article 6

The collective contract or special collective contract that accord with the present Provisions shall have legal binding force on the
employing entity and all of its employees.

The standards for working conditions and labor remuneration as provided for in the labor contract signed by an employing entity and
an employee shall not be lower than those in the collective contract or special collective contract.

Article 7

The administrative departments of labor and social security at (or above) the level of county shall, within their respective administrative
areas, conduct supervision over the conditions of the collective negotiations, the signing and fulfillment of collective contracts
of the employing entities and their respective employees, and shall be responsible for the examination of the collective contracts
or special collective contracts.

Chapter II Content of Collective Negotiation

Article 8

Both parties to the collective negotiation may conduct collective negotiation on some or one of the following matters, and sign a
collective contract or special collective contract:

(1)

labor remuneration;

(2)

working hours;

(3)

rest and vacations;

(4)

labor safety and health;

(5)

additional insurance and welfare;

(6)

special protection for female employees and minors;

(7)

trainings of professional skills;

(8)

management of labor contracts;

(9)

rewards and punishments;

(10)

staff reduction;

(11)

the term of collective contract;

(12)

procedures for modifying or canceling the collective contract;

(13)

settlement of disputes, which arise in fulfilling the collective contract, through negotiation;

(14)

liabilities for breach of collective contracts;

(15)

other matters agreed on by both parties through negotiation.

Article 9

The labor remuneration shall mainly include:

(1)

the level of wages, the wage distribution system, the wage standards and the wage distribution method of an employing entity;

(2)

the measures for wage payment;

(3)

the overtime wages and the standards on allowances or subsidies and the measures for distribution of premium;

(4)

the measures for the adjustment of wages;

(5)

the wages and treatments during the probation period, sick leaves or private affair leaves;

(6)

the measures for paying the wages (subsistence allowance) to the employees under special circumstances;

(7)

other measures for distributing labor remuneration.

Article 10

The working hours shall mainly include:

(1)

the system of working hours;

(2)

the measures for overtime work;

(3)

the working hours for special jobs;

(4)

the standard for labor quota.

Article 11

The rest and vocations shall mainly include:

(1)

the measures for the daily rest time, weekly rest days arrangement and annual vocations;

(2)

the rest time and vocations for employees who are unable to implement the standard working hours;s

(3)

other vocations.

Article 12

The labor safety and health shall mainly include:

(1)

the labor safety and health responsibility system;

(2)

the working conditions and safety technologies and measures;

(3)

the procedures for safe operation;

(4)

the standard for distributing labor protection appliances;

(5)

regular health examinations and occupation health examinations.

Article 13

The additional insurances and welfares shall mainly include:

(1)

the types and scopes of the additional insurances;

(2)

the basic welfare system and welfare facilities;

(3)

the extension of medical leaves and the treatments;

(4)

the welfare system to the relatives of the employees.

Article 14

The special protection of female employees and minors shall mainly include:

(1)

the work that shall not be assigned to female employees and minors;

(2)

the labor protection for female employees during periods of emmenia, pregnancy, confinement and breast feeding;

(3)

the regular health examination for female employees and minors;

(4)

the employment and registration system of minors.

Article 15

The training of professional skills shall mainly include:

(1)

the programming of professional skill trainings and the annual plan;

(2)

the extracting and use of fees for the training of professional skills;

(3)

the measures for guaranteeing and perfecting the training of professional skill.

Article 16

The management of labor contracts shall mainly include:

(1)

the date when a labor contract is concluded;

(2)

the conditions for determining the duration of a labor contract;

(3)

the general principles for modifying, canceling and renewing a labor contract, and the conditions for terminating a labor contract
without fixed time limit;

(4)

the conditions and time limit for the probation.

Article 17

The rewards and punishments shall mainly include:

(1)

the labor disciplines;

(2)

the performance evaluation, reward and punishment system;

(3)

the reward and punishment procedures;

Article 18

The staff reduction shall mainly include:

(1)

the program for staff reduction;

(2)

the procedures for staff reduction;

(3)

the implementing measures for staff reduction and the compensation standards;

Chapter III Representatives of Collective Negotiation

Article 19

The term “representatives of collective negotiation” (hereinafter referred to as representatives) as mentioned in the present Provisions
refers to people who are elected according to legal procedures and are enpost_titled to take part in the collective negotiation on behalf
of the interests of their own party.

Both parties to a collective negotiation shall have the same number of representatives. Each party shall have at least 3 representatives
and assign one of them as the chief representative.

Article 20

The representatives of collective negotiation on behalf of the employees shall be designated by the labor union of the entity. In
the case of absence of a labor union, they shall be subject to the democratic recommendation by the employees of this entity and
shall be subject to the consent by at least half of the employees.

The chief representative on behalf of the employees shall be the chairman of the labor union of this entity. The chairman of the labor
union may entrust in written form another representative to take the position of the chief representative. In the case of absence
of the chairman of the labor union, the chief representative shall be the major person in charge of the labor union. In the case
of absence of the labor union, the chief representative on behalf of the employees shall be elected through democratic recommendation
by the representatives.

Article 21

The representatives on behalf of the employing entity shall be designated by the legal representative of this entity, and the chief
representative shall be the legal representative of this entity or another manager entrusted by him in written form.

Article 22

The time limit for representatives to perform their responsibilities shall be determined by the parties they represent.

Article 23

The chief representative of each party of collective negotiation may entrust in written form some professionals outside the entity
as representatives, and the number of entrusted persons shall not exceed one third of the representatives from this entity.

The chief representative shall not be a person outside the entity.

Article 24

No person may concurrently act as a representative of the employing entity and a representative of the employees.

Article 25

The representatives shall perform the following duties:

(1)

to participate in the collective negotiation;

(2)

to accept the inquiries of the persons of the party represented by them, and timely announce the information on the negotiation to
the persons of the party represented by them and ask them for advices;

(3)

to supply the information and materials related to the collective negotiation;

(4)

to take part in the settlement of the disputes under collective negotiation on behalf of the party represented by them;

(5)

to conduct supervision over the fulfillment of the collective contract or special collective contract;

(6)

other duties as provided for in the laws, regulations and rules.

Article 26

The representatives shall protect the normal production or work order of the entity, and shall not have any acts of threatening, buying
over or cheating.

The representatives shall keep confidential the commercial secrets of the employing entity that they have learned in the course of
collective negotiation.

Article 27

The representatives inside an enterprise who have participated in the collective negotiation shall be deemed as having provided normal
labor.

Article 28

Where the labor contract of a representative expires during the period of his performing the duties as a representative, it shall
automatically extend to the date when he fulfills his duties,And the employing entity shall not cancel the labor contract unless
he is under any of the following circumstances:

(1)

having seriously violated the labor disciplines or the provisions and rules formulated by the employing entity pursuant to law;

(2)

having seriously neglected his duties or seeking private interests, which leads to serious impairment to the interests of the employing
entity;

(3)

being subject to criminal liabilities.

During the period of a person’ performing of the duties as a representative, the employing entity shall not change his post without
justifiable reasons.

Article 29

Where there is any dispute between a representative of the employees and the employing entity due to the matters as provided for in
Articles 27 and 28, an application for arbitration may be filed to the local arbitration commission for labor disputes.

Article 30

The labor union may change the representatives of the employees. In the case of absence of the labor union, the representatives of
the employees may be changed upon the consent of at least half of the employees.

The legal representative of the employing entity may change the representatives of the employing entity.

Article 31

Where there is any absence of a representative due to change, resignation or any other force majeure, a new representative shall be
elected within 15 days from the day when the absence occurs according to the present Provisions.

Chapter IV Procedures for Collective Negotiation

Article 32

Either party of the collective negotiation may make a written request for collective negotiation to the other party on signing a collective
contract or special collective contract and the related matters.

Where a party makes a request for collective negotiation, the other party shall give it a written reply within 20 days from the day
when it receives the request, and shall not refuse to conduct collective negotiation without justifiable reasons.

Article 33

The representatives shall make the following preparations before the negotiation:

(1)

to get familiar with the laws, regulations, rules and systems related to the collective negotiation;

(2)

to learn the information and materials related to the collective negotiation, collect the opinions of the employing entity and the
employees on the collective negotiation;

(3)

to determine the matters under collective negotiation, which may be drafted by the party that makes a request for collective negotiation
or may be jointly drafted by the representatives assigned by both parties;

(4)

to determine the time and place of the collective negotiation;

(5)

to jointly determine a non-negotiation representative as the note-keeper of the collective negotiation. The note-keeper shall keep
neutral and impartial and keep the secrets of both parties of the collective negotiation.

Article 34

The meeting of collective negotiation shall be hosted by the chief representatives of both parties in turn, who shall accord with
the following procedures:

(1)

Announcing the agenda and disciplines of the meeting;

(2)

The chief representative of a party sets forth the specific content and requests for the collective negotiation, and the chief representative
of the other party makes corresponding responses;

(3)

Both parties state their respective opinions on the matters under negotiation, and fully discuss them;

(4)

The chief representatives of both parties sum up the opinions. Where an agreement is reached, a draft collective contract or a draft
special collective draft shall be formed, and shall be signed by the chief representatives of both parties.

Article 35

Where no agreement is reached or any unexpected issue arises, the negotiation may be suspended upon mutual agreement. The time limit
for the suspension and the time, place and content of next negotiation shall be determined by both parties upon mutual agreement.

Chapter V The Conclusion, Modification, Cancellation and Termination of Collective Contracts

Article 36

The draft of a collective contract or of a special collective contract agreed on by the representatives of both parties shall be submitted
to the employees representative assembly or all the employees for discussion.

When the employees representative assembly or all the employees discuss the draft of a collective contract or the draft of a special
collective contract, at least two thirds of the members of the employees representative assembly or of all the employees shall be
present. The draft of the collective contract or the draft of the special collective contract shall not be adopted unless it is agreed
upon by at least half of the members of the employees representative assembly or of all the employees.

Article 37

The draft of a collective contract or the draft of a special collective contract adopted at the employees representative assembly
or the employees assembly shall be signed by the chief representatives of both parties of the collective negotiation.

Article 38

In general, the period of validity of a collective contract or a special collective contract shall be 1 to 3 years, which shall be
terminated at its expiration or under the conditions for termination as agreed on by both parties.

Within 3 months prior to the expiration of a collective contract or a special collective contract, either party may request the other
party to sign a new contract or renew the contract.

Article 39

Where both parties reach an agreement, a collective contract or a special collective contract may be modified or cancelled.

Article 40

A collective contract or a special collective contract may be modified or cancelled under any of the following circumstances:

(1)

It is unable to perform the collective contract or the special collective contract for the employing entity is merged, dissolved or
bankrupt;

(2)

It is unable to perform the collective contract or the special collective contract or part of the said contract in due to force majeure;

(3)

The conditions for modifying or canceling the collective contract or the special collective contract arises;

(4)

Other circumstances as stipulated in the laws, regulations and rules.

Article 41

The procedures for the collective negotiation as stipulated in the present Provisions shall apply to the modification or cancellation
of a collective contract or a special collective contract.

Chapter VI Examination on Collective Contracts

Article 42

After a collective contract or a special collective contract is signed or modified, the employing entity shall submit the text in
triplicate to the administrative department of labor and social security within 10 days as of the day when the chief representatives
sign the contract.

The administrative department of labor and social security shall check in the submitted collective contract or special collective
contract.

Article 43

The examination on collective contracts or special collective contracts shall adopt territorial administration, and the specific scope
of administration shall be specified by the administrative department of labor and social security at the provincial level.

The collective contracts of enterprises under the Central Government and those of the employing entities of trans-province, trans-autonomous
region or trans-municipality directly under the Central Government shall be submitted to the administrative department of labor and
social security at the provincial level as specified by the Ministry of Labor and Social Security.

Article 44

The administrative department of labor and social security shall examine the validity of a collective contract or a special collective
contract submitted to it in light of the following items:

(1)

whether the qualifications of subjects of both parties of the collective negotiation are in line with laws, regulations and rules;

(2)

whether the procedures for collective negotiation is in violation of laws, regulations and rules;

(3)

whether the content of the collective contract or the special collective contract is contrary to the provisions of the state.

Article 45

Where the administrative department of labor and social security has any objection to a collective contract or a special collective
contract, it shall serve the Examination Opinion to the negotiation representatives of both parties within 15 days as of the day
when it receives the text. The Examination Opinion shall specify the following contents:

(1)

the names, addresses of both parties of the collective contract or special collective contract;

(2)

the date on which the administrative department of labor and social security receives the collective contract or the special collective
contract;

(3)

the examination opinions;

(4)

the date on which the examination opinions are formed.

The Examination Opinion shall be affixed with the seal of the administrative department of labor and social security.

Article 46

Where the employing entity and its employees conclude a new collective contract or a new special collective contract after collective
negotiation on the objections put forward by the administrative department of labor and social security, the employing entity shall
submit the new contract to the administrative department of labor and social security for examination pursuant to Article 42 of
the present Provisions.

Article 47

Where the administrative department of labor and social security raises no objection within 15 days as of the day when it receives
the text, the collective contract or special collective contract shall go into effect forthwith.

Article 48

The valid collective contract or special collective contract shall be timely announced by the negotiation representatives to all of
the members they are on behalf of in a proper form as of the day when the contract go into effect.

Chapter VII Mediation and Settlement of Disputes in Collective Negotiation

Article 49

Where both parties fail to settle the disputes arising during a collective negotiation through negotiation, either party or both parties
may file a written application to the administrative department of labor and social security for mediation and settlement. Where
no application is filed, the administrative department of labor and social security may mediate and settle the disputes when it deems
necessary.

Article 50

The administrative department of labor and social security shall organize people of the labor union at the same level and the enterprise
organization to jointly mediate and settle the disputes arising during a collective negotiation.

Article 51

The disputes arising during a collective negotiation shall be under territorial administration, and the specific scope of administration
shall be provided for by the administrative department of labor and social security.

With regard to disputes arising during a collective negotiation of an enterprise under the Central Government or an employing entity
of trans-province, trans-autonomous region or trans-municipality directly under the Central Government, the administrative department
of labor and social security at the provincial level designated by the Ministry of Labor and Social Security shall organize people
of the labor union at the same level and the enterprise organization to mediate and settle the disputes, and the Ministry of Labor
and Social Security may organize relevant parties to mediate and settle as well when necessary.

Article 52

The mediation and settlement of the disputes arising during a collective negotiation shall be completed within 30 days as of the day
when an application for mediation and settlement is received. If it hasn’t been finished within the time limit, the time limit may
be extended appropriately, but the extended time shall not exceed 15 days.

Article 53

The mediation and settlement of the disputes arising during a collective negotiation shall proceed as follows:

(1)

to accept an application for mediation and settlement;

(2)

to investigate into and learn the information on the disputes;

(3)

to discuss and formulate a program on mediation and settlement of the disputes;

(4)

to mediate and settle the disputes;

(5)

to make a Mediation and Settlement Agreement.

Article 54

The Mediation and Settlement Agreement shall include the application for mediation and settlement, the facts of disputes and mediation
results. Where both parties fail to reach an agreement on some of the matters being negotiated, it shall specify the relevant matters
to be negotiated continuously. The Mediation and Settlement Agreement shall come into force after being affixed with the signatures
or seals of the persons responsible for the mediation and settlement of the disputes arising during the collective negotiation and
the chief representatives of both disputing parties. Both disputing parties shall accord with the Mediation and Settlement Agreement
after it takes effect.

Chapter VIII Supplementary Provisions

Article 55

Where the parties concerned fail to settle through consultation the dispute arising when fulfilling a collective contract, they may
file an application to the arbitration commission for labor disputes pursuant to law.

Article 56

Where an employing entity refuses, without any justifiable reason, the request for the collective negotiation made by the trade union
or the representatives of the employees, it shall be punished according to the Trade Union Law and other relevant laws and regulations.

Article 57

The present Provisions shall go into effect as of May 1, 2004, and the Provisions on Collective Contracts promulgated by the former
Ministry of Labor on December 5, 1994 shall be abolished simultaneously.



 
Ministry of Labor and Social Security
2004-01-20

 






CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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