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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

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING THE POLICIES FOR DOMESTIC RESIDENT INDIVIDUALS TO PURCHASE FOREIGN EXCHANGES UNDER CURRENT ACCOUNTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Adjusting the Policies for Domestic Resident Individuals to Purchase Foreign
Exchanges under Current Accounts

HuiFa [2003] No.104

September 1, 2003

The branches and offices under the State Administration of Foreign Exchange in all provinces, autonomous regions and municipalities
directly under the Central Government, the branches of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; all designated foreign exchange
banks:

In order to adapt to the new situation of opening to the outside world, better satisfy the real demands of domestic resident individuals
for using foreign exchanges under current accounts, facilitate and regulate resident individuals’ purchase of foreign exchanges from
banks, and curb illegal foreign exchange transactions, the State Administration of Foreign Exchange decides to adjust the existing
policies for domestic resident individuals’ purchase of foreign exchanges under current accounts, and revise relevant administrative
provisions. The notice on relevant issues is hereby given as follows:

I.

The guiding limit for domestic resident individuals (hereinafter referred to as resident individuals) to purchase foreign exchanges
under current accounts is raised, and the guiding limit for purchasing foreign exchanges in the “Detailed Implementing Rules on the
Administration of Purchase of Foreign Exchanges by Domestic Resident Individuals” promulgated on July 11, 2002 (HuiFa [2002] No.
68) (hereinafter referred to as the “Detailed Rules”) is adjusted as follows:

(1)

The guiding limit for purchasing foreign exchanges for actual exit from the territory (note: excluding border tour): If a resident
individual needs to purchase foreign exchanges due to outbound travel, going on a pilgrimage, visiting relatives, overseas hospitalization,
commercial investigation, employment, settling down abroad, international foreign exchanges, overseas trainings, overseas study,
provision of labor service abroad, etc., and the period for him to stay out of the territory as indicated on his visa is within a
half year, he may purchase foreign exchanges at the equivalent amount of 3,000 USD from the bank each time; while if the period for
him to stay out of the territory is half a year or more, he may purchase foreign exchanges at the equivalent amount of 5,000 USD
from the bank each time.

(2)

The guiding limit for purchasing foreign exchanges for non-exit from the territory: If a resident individual does not exit from the
territory, but needs to purchase foreign exchanges due to payment of membership fee of an overseas international organization, remedies
to overseas lineal relatives, mail order from abroad, etc., the guiding limit for purchasing foreign exchanges shall be uniformly
adjusted to an equivalent amount of 3,000 USD per person per time.

(3)

Article 21 of the “Detailed Rules” is cancelled. The guiding limit for children at or below 14 to purchase foreign exchanges shall
no longer be halved, instead, the foreign exchanges shall be supplied in full amount pursuant to the above guiding limit.

II.

If the amount of foreign exchanges purchased by a resident individual before exiting the territory is below the above prescribed guiding
limit, the designated foreign exchange bank shall examine it for the sale of foreign exchanges; if the resident individual needs
to exceed the above prescribed guiding limit to purchase foreign exchanges, he may not purchase the foreign exchanges from the designated
foreign exchange bank until the branch or sub-branch of the State Administration of Foreign Exchange (hereinafter referred to as
the foreign exchange bureau) has examined the authenticity.

III.

For a region where no foreign exchange bureau is established, the foreign exchange bureau at the next higher level shall assess the
banks in this region which are qualified to sell foreign exchanges to individuals, and may, on the basis of assessment, authorize
qualified banks to examine, on behalf of the foreign exchange bureau, the foreign exchanges purchased in excess of the guiding limit.
Each branch and sub-branch shall submit the name list of the authorized banks to the State Administration of Foreign Exchange for
record within one month after being formally authorized.

IV.

The scope of supplying foreign exchanges to those who study abroad at their own expenses is enlarged, and the relevant policies in
the “Detailed Rules” for those who study abroad at their own expenses to purchase foreign exchanges are adjusted as follows:

(1)

The scope of supplying foreign exchanges to those who go to study abroad at their own expenses is enlarged from those who study for
foundation programs or above to all persons going to study abroad.

(2)

Those who go abroad to study at their own expenses may, upon strength of the prescribed documents of proof, purchase foreign exchanges
at the bank for their tuition and living expenses. The bank shall, with regard to anyone who is able to provide the documents of
proof on tuition and living expenses, and who purchases foreign exchanges at the amount of not more than the equivalent of 20,000
USD in each school year, sell foreign exchanges at the amount listed on the documents of proof; and shall, with regard to anyone
who purchases foreign exchanges in excess of the equivalent of 20,000 USD, sell foreign exchanges upon the approval document of the
foreign exchange bureau after examination. With regard to anyone who is unable to provide the documents of proof on tuition and living
expenses, the foreign exchanges shall be sold within the guiding limit prescribed in Paragraph 1 of Article 1 of the Circular.

V.

Sale of foreign exchanges to the resident individuals who travel to the boarder areas of adjacent countries. If a resident individual
travel to the boarder area of an adjacent country, the guiding limit for him to purchase foreign exchanges shall be the equivalent
of 100 USD per day, and the maximum limit for him to purchase foreign exchanges shall be the equivalent of 500 USD per day.

VI.

The administrative provisions on purchasing foreign exchanges for outbound travel are revised.

(1)

If a resident individual purchases foreign exchanges from the bank for the purpose of outbound travel, the guiding limit for him to
purchase the foreign exchanges shall no longer include the group fee charged by the travel agency. The travel agency may separately
purchase foreign exchanges from the bank to pay the group fee.

(2)

The documents of proof in the “Detailed Rules”, which need to be provided for the purchase of foreign exchanges for outbound travel,
are simplified. A resident individual may bring the passport for private purpose and the valid visa (a group visa holder may bring
a photocopy of the group visa confirmed by the travel agency with a seal), and the identification card or permanent residence book
to go through the formalities of purchasing foreign exchanges in the bank.

VII.

If a resident individual holds the multiple-return visa (or permission stamp), he may, within the guiding limit for purchasing foreign
exchanges as prescribed in Article 1 of the Circular, purchase foreign exchanges from the bank, provided that the interval between
two purchases is no less than 30 days.

VIII.

With respect to the consumption or expenditure of a resident individual under overseas current accounts, including the part over the
guiding limit, the resident individual is permitted to go through the formalities of re-purchasing foreign exchanges in accordance
with the following provisions after he has come back into the territory on the premise that he can prove the authenticity:

(1)

Any resident individual holding a foreign currency credit card issued by a domestic bank is permitted to, either with his own foreign
exchanges or through purchasing foreign exchanges in a card-issuing bank with the credit card transaction bills issued by the card-issuing
bank, the identification card or permanent residence book and other documents of proof, repay the foreign exchange advanced money
he has overdrawn abroad.

(2)

A resident individual who is unable to provide foreign exchange guaranty bonds before applying for the foreign currency credit card
shall be permitted to, before exiting the territory, open a foreign currency credit card with its own RMB deposits as the guaranty
bonds.

(3)

A resident individual who is unable to hold his card for consumption or expenditure abroad due to a particular reason may, with respect
to his foreign exchange expenditure under current accounts such as payment of tuition for going abroad to study at his own expenses,
overseas hospitalization expenses, etc., bring the relevant documents of proof on consumption or expenditure abroad to the foreign
exchange bureau for examination of authenticity, and then bring the approval document of the foreign exchange bureau and other relevant
documents of proof to the bank to go through the formalities of re-purchasing foreign exchanges.

(4)

The method of write-off after verification after a resident individual has come back into the territory to re-purchase foreign exchanges
shall be automatic write-off.

IX.

Each designated foreign exchange bank shall, when selling foreign exchanges to resident individuals, strictly comply with the Circular
and other relevant provisions to use the management information system for domestic resident individuals to purchase foreign exchanges.
In consideration that the system is in adjustment at present, the re-purchase of foreign exchanges under the relevant credit cards
in the Circular is temporarily not incorporated into the system. The specific time of incorporation shall be separately notified
by the State Administration of Foreign Exchange.

Before the re-purchase of foreign exchanges under the credit card is incorporated into the management information system for domestic
resident individuals to purchase foreign exchanges, each bank selling foreign exchanges shall, within 10 working days at the beginning
of each month, submit its information of the preceding month on re-purchase of foreign exchanges under the credit card to the State
Administration of Foreign Exchange.

X.

The Circular shall come into force on October 1, 2003. Other matters concerning the administration of purchase of foreign exchanges
by resident individuals, which are not involved in the Circular, shall still be subject to the governance of the “Detailed Rules”.
In case of any previous provision in conflict with the Circular, the Circular shall prevail.

Each branch shall, after receiving the Circular, transmit it to the central sub-branches and foreign-funded banks under its jurisdiction
as soon as possible; each Chinese-funded designated foreign exchange bank shall, after receiving the Circular, transmit to its branches
as soon as possible. In case of any question in the implementation, please timely inform it to the Department of Current Account
Administration under the State Administration of Foreign Exchange.



 
The State Administration of Foreign Exchange
2003-09-01

 






PROMOTION OF PRIVATELY-RUN SCHOOLS LAW

Law of the People’s Republic of China on the Promotion of Privately-run Schools





(Adopted at the 31st Meeting of the Standing Committee of the Ninth National People’s Congress on December 28, 2002
and promulgated by Order No. 80 of the President of the People’s Republic of China on December 28, 2002) 

Contents 

Chapter I    General Provisions 

Chapter II   Establishment 

Chapter III  Organization and Activities of Schools 

Chapter IV   Teachers and Educatees 

Chapter V    School Assets and Financial Management 

Chapter VI   Administration and Supervision 

Chapter VII  Support and Reward 

Chapter VIII Alteration and Termination 

Chapter IX   Legal Responsibility 

Chapter X    Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted in accordance with the Constitution and the Education Law with a view to implementing the strategy
of invigorating the country through science, technology and education, promoting the sound development of privately-run schools,
and safeguarding the lawful rights and interests of the privately-run schools and the educatees. 

Article 2  This Law shall be applicable to activities conducted by public organizations or individuals, other than State organs,
to establish and run schools and other institutions of education with non-governmental financial funds, which are geared to the need
of society. In cases to which no provisions of this Law are applicable, the provisions in the Education Law and other laws concerning
education shall apply. 

Article 3  Privately-run schools belong to public welfare undertakings and constitute a component part of the cause of socialist
education. 

With regard to privately-run schools, the State applies the principles of enthusiastic encouragement, vigorous support, correct guidance,
and administration according to law. 

People’s governments at all levels shall incorporate the undertakings of the privately-run schools into their plans of national economic
and social development. 

Article 4  Privately-run policy schools shall abide by laws and regulations, implement the education of the State, guarantee
the educational quality and devote their efforts to the training of various types of people for the cause of socialist development. 

Privately-run schools shall implement the principle of separating education from religion. No organizations or individuals may make
use of religion to conduct activities designed to interfere with the educational system of the State. 

Article 5  Privately-run schools and government-run schools shall share equal legal status, and the State safeguards the autonomy
of the privately-run schools. 

The State protects the lawful rights and interests of the sponsors, principals, teachers and staff members and educatees of privately-run
schools. 

Article 6  The State encourages donations made for establishing and running schools. 

The State rewards and commends organizations and individuals that have made outstanding contributions to the development of the undertakings
of privately-run schools. 

Article 7  The administrative department for education under the State Council shall be in charge of the overall planning, comprehensive
coordination and macro-administration of the work relating to privately-run schools nationwide. 

The administrative department for labor and social security and the relevant departments under the State Council shall respectively
be in charge of the work relating to the privately-run schools within the scope of their duties as defined by the State Council. 

Article 8  The administrative departments for education under the local people’s governments at or above the county level shall
be responsible for the work relating to privately-run schools in their own administrative regions. 

The administrative departments for labor and social security and the relevant departments under the local people’s governments at
or above the county level shall respectively be responsible for the work relating to privately-run schools within the scope of their
duties. 

Chapter II 

Establishment 

Article 9  Public organizations that establish privately-run schools shall possess the qualifications of a legal person. 

Individuals that establish privately-run schools shall possess political rights and full capacity for civil conduct. 

A privately-run school shall have the qualifications of a legal person. 

Article 10 The establishment of a privately-run school shall meet the local need for educational development and the requirements
provided for by the education Law and relevant laws and regulations. 

The standards for the establishment of privately-run schools shall, mutatis mutandis, conform to those for the establishment of government-run
schools of the same grade and category. 

Article 11 The establishment of privately-run schools that provide education for academic credentials, pre-school education, training
for preparing self-study examinations and other cultural education shall be subject to examination and approval by the administrative
departments for education under the people’s governments at or above the county level within the limits of their powers defined by
the State; the establishment of a privately-run school that mainly provides training for vocational skills, including training for
vocational qualification, shall be subject to examination and approval by the administrative department for labor and social security
under the people’s government at or above the county level within the limits of its powers defined by the State, which shall send
a duplicate of the approval document to the administrative department for education at the same level for the record. 

Article 12 To apply for preparing to establish a privately-run school, the sponsor shall submit to the examination and approval authority
the following materials: 

(1) an application, the contents of which mainly include: the sponsor, the aims of education, size of the student body, level of
the school, forms of education, conditions for establishing and running the school, internal management system, raising of funds
and their management and use, etc.; 

(2) name of the sponsors and their addresses or the post_title of the sponsor and its address; 

(3) source of the assets, amount of the funds and their effective certificates, in which the property rights are clearly stated;
and 

(4) where the assets of the school are donated, an agreement on the donations, in which the names of the donators, the amount of
the assets donated, their use and management, and the relevant effective certificates are clearly stated. 

Article 13 The examination and approval authority shall, within 30 days from the date it receives the application for preparing to
establish a privately-run school, make a decision in writing on whether to approve it or not. 

If it approves the application, it shall issue a written approval for preparing to establish the school; and if it does not approve
the application, it shall explain the reasons. 

The period of preparation for establishment of such a school shall not exceed three years; and if it exceeds three years, the sponsor
shall renew its application. 

Article 14  To apply for official establishment of a privately-run school, the sponsor shall submit the following materials
to the examination and approval authority: 

(1) the written approval for preparing to establish the school; 

(2) a report on the preparations made for the establishment; 

(3) articles of association of the school and the name lists of the component members of the first executive council, board of directors
or other decision-making bodies of the school; 

(4) effective certificates of the assets of the school; and 

(5) qualification certificates of the principal, teachers, and book-keepers and accountants. 

Article 15 Where conditions for the establishment of a school are satisfied and the standards for establishment are reached, an application
may directly be made for its official establishment, and the materials specified in Article 12 and subparagraphs (3), (4) and (5)
of Article 14 of this Law shall be submitted. 

Article 16  Where an application for official establishment of a privately-run school is made, the examination and approval
authority shall, within three months from the date it receives the application, make a decision in writing on whether to approve
it or not, and sere the decision on the applicant; and where, in this regard, an application is made for the official establishment
of a privately-run institution of higher education, the examination and approval authority may, within six months from the date it
receives the application, likewise make a decision in writing on whether to approve it or not and serve the decision on the applicant. 

Article 17  The examination and approval authority shall issue a license for establishment of a school to the privately-run
school for the official establishment of which it gives approval. 

Where the examination and approval authority does not approve the official establishment of a school, it shall explain the reasons. 

Article 18  Where a privately-run school obtains the license for establishment and, in accordance with the provisions of relevant
laws and administrative regulations, registers with the registration authority, the latter shall immediately handle the matter in
accordance with relevant regulations. 

Chapter III 

Organizations and Activities of Schools 

Article 19 A privately-run school shall set up an executive council, a board of directors or other forms of decision-making bodies
of the school. 

Article 20 The executive council or the board of directors of the school shall be composed of the sponsors or their representatives,
the principal, and the representatives of the teachers and staff members. More than one-third of the council members or directors
shall, at least, have five years’ education or teaching experience each. 

The executive council or the board of directors of the school shall be composed of not less than five persons, with one of them serving
as chairman of the council or board. The name list of the chairman and members of the council or the chairman of the board and directors
shall be submitted to the examination and approval authority for the record. 

Article 21  The executive council or the board of directors of a school shall exercise the following functions and powers: 

(1) to appoint and dismiss the principal; 

(2) to amend the articles of association of the school and formulate rules and regulations of the school; 

(3) to make development plans and approve annual work plans; 

(4) to raise funds for running the school, and examine and verify the budgets and final accounts; 

(5) to decide on the size and the wage standards of the  teachers and staff members; 

(6) to decide on the division, merging and termination of the school; and 

(7) to decide on other important matters. 

The functions and powers of other forms of decision-making bodies shall be defined in reference to the provisions of this Article. 

Article 22  The chairman of the executive council or the board of directors or the principal of a privately-run school shall
serve as the legal representative of the school. 

Article 23  A privately-run school shall, in reference to the qualifications for the principal of a government-run school of
the same grade and category, appoint its principal, and the age limit may appropriately be extended both ways, and the appointment
shall be reported to the examination and approval authority for verification and approval. 

Article 24  The principal of a privately-run school shall be in charge of education, teaching and administration of the school,
and exercise the following functions and powers: 

(1) to carry out the decisions made by the executive council, board of directors or any other form of decision-making body; 

(2) to put into execution the development plans, draw up the annual work plans and financial budgets, and formulate the rules and
regulations of the school; 

(3) to appoint and dismiss staff members of the school, and give rewards and impose punishments; 

(4) to make arrangements for education, teaching and scientific research, and ensure the quality of education and teaching; 

(5) to be responsible for the daily work of school administration; and 

(6) other powers delegated by the executive council, the board of directors or any other form of decision-making body of the school. 

Article 25  A privately-run school may, on the basis of their classifications, the length of schooling and their academic performance
and in accordance with the relevant regulations of the State, issue academic credentials, certificates for completing a course or
qualification certificates of training to the students it enrolled. 

Students who receive training in vocational skills may be awarded vocational qualification certificates of the State when they are
considered qualified by the vocational skills appraisal authority approved by the State. 

Article 26  A privately-run school shall, in accordance with law, ensure that the teachers and staff members participate in
democratic management and supervision through the representative assembly of the teachers and staff members with the teachers as
the main body, or through other forms. 

Teachers and staff members of a privately-run school shall, in accordance with the Trade Union Law, have the right to form trade
union organizations to protect their lawful rights and interests. 

Chapter IV 

Teachers and Educatees 

Article 27  Teachers and educatees of privately-run schools shall enjoy equal legal status as the teachers and educatees of
government-run schools shall. 

Article 28  Teachers appointed by privately-run schools shall possess the qualifications for teaching specified by the State. 

Article 29  Privately-run schools shall conduct ideological and moral education and professional training among teachers. 

Article 30  Privately-run schools shall guarantee the wages and welfare benefits for teachers and staff members according to
law, and pay social insurance premiums for them. 

Article 31  The teachers and staff members of privately-run schools shall, in accordance with law, share equal rights with those
of government-run schools in respect of professional training, appointment of posts, calculation of the length of service as a teacher
or staff member, commendation and reward, and social activities. 

Article 32  Privately-run schools shall, in accordance with law, safeguard the lawful rights and interests of educatees. 

Privately-run schools shall, in accordance with the regulations of the State, establish the system for administration of students’
records and give rewards and sanctions to educatees. 

Article 33  Educatees of privately-run schools shall enjoy equal rights as those of government-run schools of the same grade
and category in respect of admission into schools of a higher grade, employment, preferential treatment and being elected as advanced
students. 

Chapter V 

School Assets and Financial Management 

Article 34  Privately-run schools shall, in accordance with law, establish financial and accounting systems and assets management
system, and keep account books in accordance with the relevant regulations of the State. 

Article 35  Privately-run schools shall enjoy property rights of the legal persons in respect of the assets provided by sponsors
to privately-run schools, State-owned assets, donated property and school accumulation. 

Article 36  During the period of existence of privately-run schools, all the assets shall, in accordance with law, be managed
and used by the schools, and no organization or individual may take illegal possession of them. 

No organization or individuals may, in violation of laws or regulations, collect any fees from privately-run institutions of education. 

Article 37  The items and rates of fees to be collected by privately-run schools from educatees who receive education from academic
credentials shall be worked out by the schools, submitted to relevant departments for approval and made public; and the items and
rates of fees to be collected from other educatees shall be worked out by the schools concerned, submitted to relevant departments
for the record and made public. 

The fees collected by privately-run schools shall be used mainly for educational and teaching activities and the improvement of schools
conditions. 

Article 38  The use and the financial management of the assets for privately-run schools shall be subject to supervision by
the examination and approval authority and relevant departments. 

Privately-run schools shall prepare their financial and accounting statements towards the end of each fiscal year, entrust public
accounting firms to audit the statements according to law, and publish the audit results. 

Chapter VI 

Administration and Supervision 

Article 39  Administrative Departments for education and the relevant departments shall provide guidance to privately-run schools
in respect of education and teaching and training among teachers. 

Article 40  Administrative departments for education and the relevant departments shall, in accordance with law, exercise supervision
over and provide guidance to privately-run schools, in order to promote the enhancement of the quality of such schools; and they
shall make arrangements or entrust public intermediary bodies with the arrangements for assessing the level and the quality of education
of such schools, and make the results of the assessment known to the general public. 

Article 41  The general regulations and advertisements for student enrollment of privately-run schools shall be submitted to
the examination and approval authority for the record. 

Article 42  Where a privately-run school infringes upon the lawful rights and interests of educatees, the educatees and their
relatives shall have the right to make petition to the administrative department for education and any relevant department, and the
said department shall handle it without delay. 

Article 43  The State supports and encourages public intermediary bodies to provide services to privately-run schools. 

Chapter VII 

Support and Reward 

Article 44 People’s governments at or above the county level may set up special funds for financing the development of privately-run
schools and for rewarding and commending the collectives and individuals that have made outstanding contributions. 

Article 45 People’s governments at or above the county level may take such measures as financial aid and the lease or transfer of
idle State-owned assets in support of privately-run schools. 

Article 46 Privately-run schools shall enjoy preferential taxation policy formulated by the State. 

Article 47 Civilian-run schools may, in accordance with the relevant laws and regulations of the State, accept donations afforded
by citizens, legal persons or other organizations. 

The State, in accordance with relevant regulations, applies preferential taxation policy to citizens, legal persons or other organizations
that donate property to privately-run schools, and bestows commendations on them. 

Article 48  The State encourages financial institutions to support the development of privately-run schools by means of credit. 

Article 49  Where a people’s government entrusts a privately-run school with the task of compulsory education, it shall, in
accordance with the agreement of entrustment, appropriate the necessary amount of funds for education. 

Article 50  Where a privately-run school is constructed or expanded, the people’s government concerned shall give it preferential
treatment in accordance with the regulations on the use of land for, and the construction of, public welfare undertakings. No land
to be used for education may be used for other purposes. 

Article 51  After the cost of a privately-run school is deducted, the funds for its development are withheld and the sum of
money for other necessary expenses is drawn in accordance with the relevant regulations of the State, the fund providers may obtain
a reasonable amount of requital from the cash surplus of the school. Specific measures for obtaining reasonable amounts of requital
shall be formulated by the State Council. 

Article 52  The State takes measures to support and encourage public organizations and individuals to establish and run privately-run
schools for the development of education in minority nationality areas and in out-lying and poverty-stricken areas. 

Chapter VIII 

Alteration and Termination 

Article 53  The executive council or the board of directors of a privately-run school to be divided or merged into other schools
shall, after financial settlement, apply to the examination and approval authority for approval. 

Where a privately-run school applies for division or merging, the examination and approval authority shall, within three months form
the date it receives the application, give a reply in writing; and where the application is made for the division or merging of a
privately-run institution of higher education, the examination and approval authority may, within six months from the date it receives
the application, likewise give a reply in writing. 

Article 54  For alteration of the sponsor of a privately-run school, the matter shall be put forth by the sponsor and, after
financial settlement and upon agreement by the executive council or the board of directors of the school, submitted to the examination
and approval authority for verification and approval. 

Article 55  For alteration of the name, level, or category of a privately-run school, the matter shall be submitted by the executive
council or the board of directors of the school to the examination and approval authority for approval. 

Where an application is made for the alteration of a privately-run school from one type to another, the examination and approval
authority shall, within three months from the date it receives the application, give a reply in writing; and where the application
is made for alteration to a privately-run institution of higher education, the examination and approval authority may, within six
months from the date it receives the application, likewise give a reply in writing. 

Article 56  Where a privately-run school is found in one of the following circumstances, it shall be terminated: 

(1) it is required to be terminated according to the provisions of the articles of association of the school, and the termination
is approved by the examination and approval authority; 

(2) the license for running the school is revoked; or 

(3) it cannot continue due to insolvency. 

Article 57  When a privately-run school is to be terminated, it shall make proper arrangements for the students in school. When
a privately-run school providing compulsory education is to be terminated, the examination and approval authority shall assist the
school to make arrangements for the students to continue their studies. 

Article 58  When a privately-run school is to be terminated, it shall make financial settlement according to law. 

Where a privately-run school requests termination itself, it shall make arrangements for the settlement; where it is abolished by
the examination and approval authority according to law, the settlement shall be arranged by the authority; and where it is terminated
because it cannot continue due to insolvency, the settlement shall be arranged by the People’s Court. 

Article 59  Property of a privately-run school shall be liquidated in the following order: 

(1) tuition fees and extras and other expenses paid by educatees that should be returned; 

(2) wages payable to the teachers and staff members and the social insurance premiums that should be paid; and 

(3) other debts that should be cleared off. 

The remaining property of a privately-run school after the debts mentioned above are cleared off shall be disposed of in accordance
with the provisions of relevant laws and administrative regulations. 

Article 60  When a privately-run school is terminated, the license for running the school shall be taken back, its seals destroyed
and its registration cancelled by the examination and approval authority. 

Chapter IX 

Legal Responsibility 

Article 61  Where, in conducting education activities, a privately-run school violates the provisions of the Education Law or
the Teachers Law, it shall be punished in accordance with the relevant provisions of the Education Law or the Teachers Law. 

Article 62  Where a privately-run school commits one of the following acts, the examination and approval authority or the relevant
department shall order it to rectify within a time limit and give it a disciplinary warning; if there are unlawful gains derived
therefrom, they shall be confiscated after returning the fees collected; if the circumstances are serious, it shall be ordered to
stop enrolling students and its license for running the school shall be revoked; and if a crime is constituted, it shall be investigated
for criminal responsibility according to law: 

(1) dividing or merging the privately-run school without authorization; 

(2) altering the name, level, category and sponsor of the privately-run school without authorization; 

(3) publishing false general regulations of enrollment or advertisements for the purpose of defrauding money; 

(4) unlawfully issuing or forging academic credential, certificates of courses completed, certificates of training or vocational
qualification certificates; 

(5) seriously affecting education and teaching due to haphazard administration, which exerts a bad influence on society; 

(6) obtaining the license for running the school by submitting false supporting documents or concealing important facts by other
deceptive means; 

(7) forging, counterfeiting, dealing in, renting or lending its license for running the school; or 

(8) terminating the school in bad faith, illegally withdrawing its funds or misappropriating the funds for running the school. 

Article 63  Where the examination and approval authority or the relevant department commits one of the following acts, it shall
be ordered by the authority at the higher level to rectify; if the circumstances are serious, the persons directly in charge and
the other persons directly responsible shall be given administrative sanctions according to law; if economic losses are caused, it
shall bear the responsibility to pay compensation according to law; and if a crime is constituted, it shall be investigated for criminal
responsibility according to law: 

(1) failing to give a reply within the prescribed time limit to an accepted application for the establishment of a privately-run
school; 

(2) giving approval to an application which does not conform to the conditions provided for in this Law; 

(3) causing serious consequences due to careless administration; 

(4) collecting fees in violation of the relevant regulations of the State; 

(5) infringing upon the lawful rights and interests of a privately-run school; or 

(6) abusing its powers or engaging in malpractices in other ways. 

Article 64  Where a public organization or individual establishes or runs a private school without authorization, it/he shall
be ordered by the relevant administrative department of the people’s government at or above the county level to rectify within a
time limit; if the school conforms to the conditions provided for in this Law or relevant laws regarding privately-run schools, it
may go through the formalities of examination and approval; if fails to meet the conditions at the expiration of a prescribed time
limit, it shall be ordered to stop running the school, and if economic losses are caused, it shall bear the responsibility to pay
compensation. 

Chapter X 

Supplementary Provisions 

Article 65  The privately-run schools mentioned in this Law include other privately-run institutions of education established
according to law. 

The principals mentioned in this Law include the principal administrative persons in charge of other privately-run institutions of
education. 

Article 66  Measures for administration of profit-making privately-run training institutions registered with the administrative
department for industry and commerce shall be separately formulated by the State Council. 

Article 67  Measures for schools established and run cooperatively by overseas organizations or individuals within the territory
of the People’s Republic of China shall be formulated by the State Council. 

Article 68  This Law shall go into effect as of September 1, 2003. The Regulations on Schools Run by Different Sectors of Society
issued by the State Council on July 31, 1997 shall be abolished at the same time.

Notice: All Rights Reserved to the Legislative Affairs Commission of

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

e02357

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

 



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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