Facebook
Home Student Visas

Student Visas

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON SOME POLICIES CONCERNING VALUE-ADDED TAX

the Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Some Policies concerning Value-added Tax

Cai Shui [2005] No. 165

The public finance departments (bureaus), bureaus of state taxes and those of local taxes of all provinces, autonomous regions, municipalities
directly under the Central Government, and cities specifically designated in the state plan, the Financial Bureau of Xinjiang Production
and Construction Corps,

Upon deliberation, some problems concerning the value-added tax are hereby clarified as follows:

1.

With regard to the determination of the time when the value-added tax obligation arises from the selling of self-produced goods, as
well as the provision of labor services subject to value-added tax and construction labor services, the Circular of State Administration
of Taxation on Some Issues Concerning the Turnover Taxes Imposed on the Taxpayers Who Sell Self-produced Goods, Provide Labor Services
Subject to Value-added Tax and Simultaneously Provide Construction Labor Services (Guo Shui Fa [2002] No. 117) provides that the
time when the obligation arises for a taxpayer to pay value-added tax for selling self-produced goods and providing labor services
subject to value-added tax and construction labor services simultaneously shall be determined in accordance with the Article 33
of the Detailed Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Value-added Tax.

2.

The determination of the time when tax obligation arises in the case of an enterprise’ selling of goods on the commission basis and
without a checklist of such goods

(1)

Where a taxpayer sells goods on a commission basis, if it receives the full payment or a partial payment for goods before receiving
the checklist of such goods, the time when tax obligation arises shall be the day when it receives the full payment or a partial
payment for the goods.

(2)

Where a taxpayer fails to receive any payment for the goods and the checklist within 180 days after the consignment of the goods sold
on a commission basis, the sale shall be deemed as completed and the taxpayer shall pay the value-added tax. The time when tax obligation
arises shall be the day when the 180th day after the consignment of the goods sold on a commissioned basis expires.

3.

Some issues concerning the offset of the amount of input tax of some particular goods to which value-added tax rates are applied differently
in the import link and the domestic link or in different areas within China

Where value-added tax rates are applied differently to some particular goods (such as primary agricultural products and mineral products)
in the import link and the domestic link or in different areas within China, a taxpayer shall offset the input tax against the value-added
tax in the amount as specified on the special value-added tax invoice and the certificate of the customs for payment of import duties.

Where competent tax authorities find that there are different value-added tax rates applicable to the same goods in the import link
and the domestic link or in different areas within China, they shall report the relevant information, level by level, to the common
tax authority at the next higher level, which shall give a definite reply.

4.

With regard to the calculation and division of input tax which may not be offset against the value-added tax

If the taxpayer concurrently engaging in any tax exempt item or non-taxable item (excluding fixed assets under construction) is unable
to precisely divide the amount of input tax may not be offset , the amount shall be computed according to the following formula:

Amount of input tax may not be offset = (Total amount of input tax of the current month ￿￿ Amount of input tax of the current month
that can be precisely divided into taxable items and non-taxable items) ￿￿(Gross sales of the tax-exempt items and the turnover
of non-taxable items of the current month ￿￿ggregate amount of the gross sales and turnover of the current month) ￿￿ Amount of input
tax of the current month that can be precisely divided into tax-exempt items and non-taxable items

5.

With regard to the change of a general taxpayer of value-added tax (hereinafter referred to as the general taxpayer) into a small-scale
taxpayer

Once a taxpayer is formally determined as a general taxpayer, it may not be changed back into a small-scale taxpayer. The change of
a general taxpayer within the tutorship period into a small-scale taxpayer shall still be handled according to the relevant provisions
of the Urgent Circular of the State Administration of Taxation on Strengthening the Administration of VAT Collection on Newly Established
Trading and Commercial Enterprises (No. 37 [2004] of the State Administration of Taxation).

6.

With regard to the inventory and the to-be-offset tax amount when a general taxpayer is cancelled

Where a general taxpayer is changed into a small-scale taxpayer because it is cancelled or disqualified from being a general taxpayer
during the tutorship period, its inventory shall not be treated as transfer-out of input and the to-be-offset tax amount shall not
be refunded.

7.

With regard to the offset upon transport invoices

(1)

Where a general taxpayer buys or sells any goods (excluding fixed assets outside the Northeast of China) by railway transport and
obtains the transport invoice issued by the railway department, if the name of the consigner or consignee indicated on the railway
transport invoice is not the same as the name of the taxpayer, but the name of the taxpayer is given in the column of the consigner
or the column of remarks of the railway transport invoice (it shall be invalidate if handwritten), the transport invoice may be regarded
as a voucher for offset or deduction of the input tax and it is allowed to compute the amount of input tax to be offset.

(2)

The transport freight paid by a VAT general taxpayer in its production or business operations may not be used to calculate the input
tax.

(3)

The international goods transport agency invoice and international goods transport invoice that a VAT general taxpayer obtains may
not be used to calculate the input tax.

(4)

The transport invoice that a VAT general taxpayer obtains for all the goods it has purchased in an accumulative way is allowed to
be used to calculate the input tax if it is accompanied by a transport checklist issued by the transporting enterprise which bears
the special seal for finance or for issuing invoices.

(5)

The transport invoice that a VAT general taxpayer obtains but which is insufficiently filled out may not be used to calculate the
input tax, with the exception of the transport invoice issued in an accumulative way and accompanied by a transport checklist.

8.

Whether to levy value-added tax on one-time fees collected by taxpayers engaging in public utilities

Where one-time fees collected by a VAT taxpayer engaging in heating, electric power, gas, water supply, and other public utilities
is directly related to the sales volume of goods, such fees shall be subject to value-added tax; if they are not directly related
to the sales volume of goods, it shall not be subject to value-added tax.

9.

Whether to levy value-added tax on the fees collected by taxpayers on behalf of administrative departments

Where a fee collected by taxpayers on behalf of the relevant administrative department meets all of the following requirements and
if it is not an extra?Cprice fee, it is not subject to value-added tax.

(1)

It is approved by the State Council, the relevant department of the State Council, or the government at the provincial level;

(2)

Special voucher has been issued for the administrative charge upon approval of the public finance department;

(3)

Such fee is entirely turned over to the state treasury; or if not turned over to the state treasury, it shall be subject to government
supervision and be used for the special purpose as approved.

10.

With regard to the taxation issue relating to the insurance premiums, vehicle purchase tax and license plate fees collected on a commissioned
basis

Insurance premiums collected by a VAT taxpayer at the time of selling goods against the buyer for buying insurances for the goods
on behalf of the buyer, and the vehicle purchase taxes and vehicle license plate fees collected and withheld by a VAT taxpayer engaged
in the sale of vehicles against and on behalf of the buyer, shall not be treated as ex-price fees and thus shall not be subject to
value-added tax.

11.

With regard to the issue of levying value-added tax on computer software products

(1)

The built-in software does not fall within the scope of the software products that may enjoy the preferential value-added tax policies
as provided in the Circular of the Ministry of Finance and the State Administration of Taxation Concerning Some Taxation Policies
for Encouraging the Development of the Software Industry and the Integrated Circuit Industry (Cai Shui [2000] No.25);

(2)

The income derived from the software installation fees, maintenance fees, and training fees which are collected upon the sale of the
software product involved shall be subject to value-added tax according to the relevant provisions on mixed selling and may enjoy
the preferential value-added tax policy of “refund immediately upon payment”;

However, the maintenance fees, technical service fees, and training fees charged by installments or each time when the service is
provided after the software product has already been delivered for use shall not be subject to value-added tax.

(3)

For the income derived by a VAT taxpayer for the development of a software products upon the entrustment of anyone else, if of the
software product belongs to the client, it shall subject to value-added tax; if the copyright belongs to both the developer and the
client shall not be subject to value-added tax.

12.

With regard to the taxation issue concerning printing enterprises entrusted by publishing enterprises to print newspapers, books and
periodicals by buying paper themselves

Where a printing enterprise buys paper by itself to print books, newspapers and magazines which have a code number (CN) or an ISBN
upon the entrustment of a publisher, such prices it charges for such printing shall be treated as sale of goods and be subject to
value-added tax.

13.

Income from membership fees

The membership fees charged from value-added tax taxpayers shall not be subject to value-added tax.

Ministry of Finance

State Administration of Taxation

November 28, 2005



 
the Ministry of Finance, the State Administration of Taxation
2005-11-28

 






CIRCULAR OF THE MOF AND THE NDRC ABOUT PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE MANAGEMENT ON SOVEREIGNTY GUARANTEE FINANCING OF THE EXPORT-IMPORT BANK OF THE UNITED STATES OF AMERICA

Ministry of Finance, National Development and Reform Commission

Circular of the MOF and the NDRC about Printing and Distributing the Interim Measures for the Management on Sovereignty Guarantee
Financing of the Export-Import Bank of the United States of America

No. 121 [2005] of the Ministry of Finance

The finance departments (bureaus) and the development and reform commissions of all provinces, autonomous regions, municipalities
directly under the Central Government, and cities specifically designated in the state plan, the financial bureau and development
and reform commission of Xinjiang Production and Construction Corps, China Development Bank, Export-Import Bank of China, Bank of
China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Bank of Communications,

Upon approval of the State Council, the Ministry of Finance signed with the Export-Import Bank of the United States of America a Framework
Agreement between the Ministry of Finance of the People’s Republic of China and the Export-Import Bank of the United States of America
(hereinafter referred to as the Framework Agreement, see Annex) on January 24, 2005, which came into effect as of the date of signature.
From then on, all projects under the sovereignty guarantee financing of Export-Import Bank of the United States of America shall
be restricted by this Agreement. For the purposes of strengthening the management of contingent sovereignty external debts and
regulating the working procedures for the issuance of sovereignty guarantees to the Export-Import Bank of the United States of America,
the Interim Measures for the Management on Sovereignty Guarantee Financing of the Export-Import Bank of the United States of America
are hereby printed and distributed to you, please comply with them. If you find any problem during the implementation thereof, please
promptly report it to the Ministry of Finance or National Development and Reform Commission.

Annex 1, Interim Measures for the Management on Sovereignty Guarantee Financing of the Export-Import Bank of the United States of
America

Annex 2, Framework Agreement (Chinese Translation and English Text)

Ministry of Finance

National Development and Reform Commission

November 28, 2005 Annex 1Interim Measures for the Management on Sovereignty Guarantee Financing of the Export-Import Bank of the United States of America

Chapter I General Provisions

Article 1

These Measures are formulated for the purposes of strengthening the management of contingent sovereignty external debts and regulating
the management of sovereignty guarantee financing of the Export-Import Bank of the United States of America (hereinafter referred
to as the sovereignty guarantee financing).

Article 2

The term “sovereignty guarantee financing” refers to the financing for which, under the Framework Agreement between the Ministry of
Finance of the People’s Republic of China and the Export-Import Bank of the United States of America (hereinafter referred to the
US Ex-Im Bank), the Ministry of finance offers corresponding sovereign guarantee to the Export-Import Bank of the United States of
America, i.e. the loans that the US Ex-Im Bank directly grants to the domestic banks or other borrowers in China or the guarantee
that it provides for the loans or export credit insurance to the financial institutions (the financial institutions registered within
the territory of the United States of America).

Article 3

Any project under sovereignty guarantee financing shall be in line with the industrial policies of the state and shall be mainly used
for introducing advanced technologies and equipment of the United States of America.

Article 4

The debts formed by sovereignty guarantee financing belong to the contingent sovereignty external debts of the government of China,
and shall be integrated into the unified management of sovereignty external debts by the Ministry of Finance. The projects under
the sovereignty guarantee financing shall be managed as the government investment projects by the National Development and Reform
Commission. (hereinafter referred to as the NDRC). The state policy banks and state-owned controlling commercial banks (hereinafter
referred to as the handling banks) shall be responsible for handling the sovereignty guarantee financing business.

Article 5

A provincial finance department may, on the basis of full evaluation of the project, and in light of the financial strength of this
region, decide whether or not to offer repayment guarantee to the handling bank for any project under sovereignty guarantee financing,
or directly act as the borrower of the project. On the occurrence of any delay in repayment of a loan for such project, the Ministry
of Finance may, by reference to the Classes A and B Projects under Foreign Government Loans, settle the repayment problem by deducting
the financial budget according to the Notice of the Ministry of Finance on the Measures for the Implementation of Deductions for
Delayed Foreign Government Loans for Classes A and B Projects (for Trial Implementation) (No. 32 [2003] of the Ministry of Finance).

For a project which the provincial finance department bears no repayment liability, the handling bank shall make a clear commitment
to the Ministry of Finance that it will bear the final repayment liabilities by itself.

The handling bank shall charge an on-lending fee for the project under sovereignty guarantee financing according to the relevant provisions
of the Ministry of Finance governing the commission charges for on-lending foreign government loans.

Article 6

A project under sovereignty guarantee financing shall be enpost_titled to enjoy the relevant tax preferential policies of the state on
projects under loans of international financial organizations and foreign governments.

Article 7

The composite costs for sovereignty guarantee financing shall be more favorable than international commercial loans of the same period.

Chapter II Management Procedures for Projects under Sovereignty Guarantee Financing

Article 8

After the development and reform commission of a province, autonomous region, municipalities directly under the Central Government,
city specifically designated in the state plan finishes the examination and approval or ratification or archival filing formalities
for a project of sovereignty guarantee financing, it shall submit a project fund application to the NDRC. The sectoral administrative
department of the State Council, Central management enterprises and conglomerates under separate planning shall directly submit project
fund applications to the NDRC.

For a project on which the feasibility study report shall be subject to the examination and approval of the State Council and NDRC,
the feasibility study report shall contain the contents of project fund application. No separate project fund application is required
for examination and approval.

A project fund application or feasibility study report containing the contents of project fund application shall be subject to the
examination and approval of NDRC after the NDRC consults the opinions of the Ministry of Finance on the sovereignty guarantee.

Article 9

A project fund application shall contain the following items:

(1)

Brief introduction to the project, including the project construction scale and contents, total investment, the principal sum, foreign
loans and other capital, owner of the project, project execution institution, period of construction, etc.;

(2)

The composite costs of the (intent) sovereignty guarantee financing, including the repayment period, grace period, interest rate,
guarantee fee, commitment fee of the loan, etc.;

(3)

The mode of execution of the sovereignty guarantee financing (bank on-lending or direct financing);

(4)

The bankroll purposes of the loan;

(5)

The list and plan for purchasing the equipment and materials;

(6)

The repayment of loan and guarantee liabilities, the source of repayment fund and repayment plan;

(7)

The economic analyses and financial evaluation conclusion; and

(8)

The progress about the foreign-related work of the project.

A project fund application shall be accompanied by the following documents:

(1)

The examination and approval or ratification or archival filing document of the project; and

(2)

The comparative scheme on the purchase of domestically made equipment (on the basis of the relevant circumstance of the project and
according to the requirements of the relevant department).

Article 10

The approval document of the project fund application is one of the bases for the negotiation with the foreign party, entry into an
agreement, domestic on-lending, register of foreign debts, bidding and purchasing, and tax exemption. The approval document of a
project fund application shall be valid for 2 years and it is automatically invalidated after the expiration.

Article 11

After the project fund application is approved, the handling bank shall submit to the Ministry of Finance an intent application for
putting the project into the list of projects of sovereignty guarantee financing: The application shall be accompanied by following
documents:

(1)

The examination and approval or ratification or archival filing document of the project;

(2)

The reply of the NDRC to the project fund application;

(3)

The relevant document of the local finance department or any other institution about offering guarantee for the financing of the project;
and

(4)

The procurement company determined through bidding according to the relevant provisions of the Ministry of Finance.

Article 12

After the Ministry of Finance puts the project into the list of projects of sovereignty guarantee financing, which is applied for
by the handling bank, and make a notification to the US Ex-Im Bank, it shall inform the handling bank and procurement company to
carry out the foreign-related work and send a copy to the NDRC.

Article 13

The project unit and procurement company shall, according to the principle of giving attention to fully competition and feasibility
on practicality, and in light of the procurement plan in the project fund application upon approval, choose US suppliers by way of
limited competitive bidding, invitation of public bidding, or directly negotiation. After the procurement company has signed the
commerce contract with a foreign party, it shall send to the Ministry of Finance and the NDRC a duplicate of the contract separately
for archival purposes.

Article 14

The handling bank and the project unit shall conduct the comprehensive comparison for the financing quotes and other circumstance
by at least 3 US financial institutions, confirm the US loaning bank and the loan conditions, and negotiate with the US party
on the financing plan.

Article 15

After the handling bank, via a US loan-granting institution, obtains preliminary promise ( LETTER OF INTEREST) from the US Ex-Im
Bank for offering a guarantee to the project, it shall apply to the Ministry of Finance for issuing a sovereignty guarantee to the
US Ex-Im Bank. The application shall be accompanied by the following materials:

(1)

The preliminary promise of the US Ex-Im Bank on offering guarantee to the project (photocopy);

(2)

The quotation of the US financial institution, and the conclusion and reasons for choosing the US loaning bank; and

(3)

The financing plan concluded with the US party.

Article 16

The Ministry of Finance shall make a commitment on issuing a sovereignty guarantee to the project on sovereignty guarantee financing
that meets the relevant conditions, and shall notify the relevant opinions to the handling bank and US Ex-Im Bank .

Article 17

After the Us Ex-Im Bank approves to provide a loan or guarantee for the project, the handling bank shall sign a loan agreement with
the US Ex-Im bank and the US loaning bank and shall file an application to the Ministry of Finance for the issuance of a sovereignty
guarantee (which shall be accompanied by a duplicate of the loan agreement).

Article 18

After the Ministry of Finance issues a certificate of sovereignty guarantee, if it is necessary to make any essential revision to
the loan agreement signed by the handling bank and US Ex-Im Bank, the handling bank shall obtain a written consent of the Ministry
of Finance in advance.

Article 19

After the loan agreement takes effect, the NDRC or local development and reform commission shall, upon application of the project
unit, issue a letter of confirmation of domestic-funded or foreign-funded projects encouraged to developing by the state . The Ministry
of Finance shall, upon application of the handling bank, issue a loan certification proving that the project uses sovereignty guarantee
financing.

Chapter III Supplementary Provisions

Article 20

The power to interpret these Measures shall remain with the Ministry of Finance and the NDRC.

Article 21

These Measures shall come into force as of January 1, 2006.

Annex 2:Framework Agreement between the Ministry of Finance of the People’s Republic of China and the Export-Import Bank of the United States
of America

The Ministry of Finance of the People’s Republic of China (hereinafter referred to as the Ministry of Finance) and the Export-Import
Bank of the United States of America ?C an agency of the United States of America (hereinafter referred to the “US Ex-Im Bank”) signed
this Framework Agreement on January 24, 2005 (hereinafter referred to as “Framework Agreement”, The Ministry of Finance or the US
Ex-Im Bank is referred to as “one party”, both the Ministry of Finance and the US Ex-Im Bank are referred to as “both parties”):

Background

Considering that the US Ex-Im Bank is willing to assist the export of commodities and services made in or originated from the US to
the People’s Republic of China by providing export credit insurance, credit guarantees or direct loans (hereinafter referred to as
the “US exports”;

Considering that the Ministry of Finance is willing to, in accordance with laws and regulations of the People’s Republic of China,
provide the Ex-Im Bank with sovereign reputation guarantees of the People’s Republic China for some businesses by observing the procedures
as follows;

Accordingly, on the basis of reciprocal aids and benefits, both parties agreed to:

Article 1

Support of the US Ex-Import Bank

The US Ex-Im Bank may irregularly provide export credit insurances (hereinafter referred to as the “insurances”, loan guarantees (hereinafter
referred to as the “guarantees” and direct loans (hereinafter referred to as the “loans” for the credits to Chinese banks and other
borrowers for the financing of the US exports. Each export financing business shall be denominated in US dollars, on which the Chinese
debtor and the US Ex-Im Bank shall sign relevant agreements (hereinafter referred to the “credit agreement”).

Article 2

Guarantees of the Ministry of Finance and their nature

1.

Guarantees of the Ministry of Finance

The Ministry of Finance shall, according to the format of Annex 1 of this Framework Agreement, issue a letter of guarantee to each
export business under this Framework Agreement it supports. Each guarantee of the Ministry of Finance will make the Ministry of Finance
bear the direct, universal, irrevocable and unconditional obligations to timely make full payments for all outstanding amounts of
the Chinese debtor under the credit agreement (including, but not limited to, the principal, interests, costs and expenses) (hereinafter
referred to the “guaranteed amount”) without offsetting any debt or deducting any tax. If the Chinese debtor fails to pay any or
all the guaranteed amount(s) which are mature, the Ministry of Finance shall, after it receives the first notice of repayment, pay
off all outstanding amounts of the Chinese debtor in US dollars according to the requirements of the US Ex-Im Bank.

Each guarantee of the Ministry of Finance is a payment guarantee rather than a mere guarantee for demand of payment and it is completely
valid till the Chinese debtor has irrevocably paid off the guaranteed debt. Each guarantee of the Ministry of Finance shall be a
consecutive, absolute and unconditional payment guarantee of the first debtor rather than a mere guarantee of the guarantor. The
debt under each guarantee of the Ministry of Finance is secured by the sovereign reputation of the People’s Republic of China.

2.

Submission of Guarantees of the Ministry of Finance

Both parties agree that the guarantee of the Ministry of Finance shall be submitted to the US Ex-Im Bank during the period after the
entry of credit agreement on each export business and prior to the first payment. When the Ministry of Finance submits a guarantee
to the US Ex-Im Bank, it shall simultaneously issue a certification about the person authorized to sign the guarantee on behalf of
the Ministry of Finance.

3.

Notice not required

Except for the issuance of first notice of repayment under the guarantee of the Ministry of Finance, the US Ex-Im Bank shall not be
required to issue to the Chinese debtor any other notice about exercising any right or making remedies or taking any other measures.
Even if the US Ex-Im Bank has not issued the aforesaid notice of repayment, its any other right or remedy or measure may not be exempt
or affected.

4

Demand of Repayment

On the occurrence of breach of the credit agreement, the US Ex-Im bank may demand the Ministry of Finance according to the format
of Annex 3 of this Framework Agreement.

5

Modification of credit agreement

All substantial modifications or supplements to the credit agreement are subject to the written acknowledgment of the Ministry of
Finance. Even if there is no such acknowledgement, the valid guarantee of the Ministry of Finance will not be restricted or become
invalidated. But under such circumstance, the Ministry of Finance shall not bear the obligations under its valid guarantee unless
it regards such modifications or supplements as nonexistent.

Article 3

Initiations of financing procedures

The Ministry of Finance will, according to the format of Annex 2 of this Framework Agreement, issue a notice to the US Ex-Import Bank
for each export business that the People’s Republic of China will support by using the guarantee of the Ministry of Finance (guarantee
notice of the Ministry of Finance). The US Ex-Import Bank shall then decide whether to offer insurance, guarantee or loan in compliance
with its policies and procedures.

This Framework Agreement does not constitute any obligation of the US Ex-Im Bank for a particular export business, likewise, nor does
it constitute any obligation of the Ministry of Finance to issue a guarantee notice of the Ministry of Finance or issue a guarantee
for any particular export business.

Article 4

Statements and Commitments

1.

The statements and commitments of the US Ex-Import Bank

The US Ex-Im Bank makes the following statements and commitments to the Ministry of Finance:

(1)

The US Ex-Im Bank is an independent agency of the US government, it has all the powers, power limits and statutory rights to sign
and deliver this Framework agreement and perform all the obligations thereunder. The US Ex-Im Bank was established and runs under
American law.

(2)

The Ex-Im Bank has taken all indispensable or necessary measures to sign, deliver, perform and comply with this Framework Agreement,
as well as to make this Framework Agreement valid, binding and compulsory.

(3)

The Ex-Im Bank’s commitments to provide insurances, guarantees or loans to export business state and guarantee that the Ex-Im Bank
has taken all necessary measures and have obtained all necessary approvals for making such commitments.

2.

The statements and commitments of the Ministry of Finance

The Ministry of Finance makes the following statements and commitments to the Ministry of Finance:

(1)

The Ministry of Finance has all the powers, power limits and statutory rights to sign and deliver this Framework agreement and perform
all the obligations thereunder. The Ministry of Finance was established and runs under Chinese Law.

(2)

The Ministry of Finance has taken all indispensable and necessary measures to sign, deliver, perform and comply with this Framework
Agreement, to make this Framework Agreement and any guarantee of the Ministry of Finance valid, binding and compulsory, as well as
to ensure the sovereign reputation of the People’s Republic of China under this Framework Agreement and any guarantee of the Ministry
of Finance, including but not limited to the obtainment of approvals to purchase and pay US dollars under this Framework Agreement
and any guarantee of the Ministry of Finance.

(3)

The guarantees issued by Ministry of Finance state and guarantee that the Ministry of Finance has taken all necessary measures and
all necessary approvals to issue such guarantees and perform all relevant obligations.

Article 5

Future financing and cooperation

Pursuant to provisions of Article 6 , within the valid period of this Agreement, any export business which obtains the guarantee of
the Ministry of Finance shall be in line with the terms of this Framework Agreement. Both parties will periodically check the business
under the Framework Agreement and negotiate with each other at any time so as to promote the smooth implementation of the export
business.

In addition, in order to facilitate the efficient handling of credits of this Framework Agreement, the Ministry of Finance will, at
any time, provide the US Ex-Im Bank with a checklist of export businesses applying for the guarantee of the Ministry of Finance under
this Framework Agreement. Moreover, both parties will periodically assign special persons to be responsible for solving problems
relating to the current and potential export business under this Framework Agreement.

Article 6

Other financing arrangements

Any provision of this Framework Agreement does not prevent any of the parties from undertaking other export businesses which are different
from this Arrangement. However, if no written approval is granted by the Ministry of Finance and the US Ex-Im Bank, no provision
of this Framework Agreement may apply to any other export business. Both parties specially propose to timely hold talks to reach
a supplementary agreement to the Framework Agreement regarding the export of large-scale planes.

In addition, both parties predict that the US Ex-Im Bank and Chinese debtors will carry out the export business without the guarantee
of the Ministry of Finance (hereinafter referred to as the “non-sovereign business”). The non-sovereign business will be regarded
as not falling within the scope of this Framework Agreement. Both parties consider that such business will be bound by separate negotiations
and legal agreements between the US Ex-Im Bank and Chinese debtors.

Article 7

Applicable law and jurisdiction

1.

Both of the Ministry of Finance and US Ex-Im Bank agree that on the occurrence of any claim, controversy or dispute relating to this
Framework Agreement or to any guarantee of the Ministry of Finance, both parties shall, within 180 days after either party issues
a written notice, negotiate with each other so as to determine whether or not it is possible to reach a settlement method acceptable
to both parties.

(1)

Both parties agree that for a failure to reach any settlement method acceptable to both parties through negotiation as mentioned in
Paragraph 1 of this Article, three arbitrators appointed under the Arbitration Rules of the International Chamber of Commerce shall
make a final award on the settlement of claim, controversy or dispute relating to this Framework Agreement or to any guarantee of
the Ministry of Finance according to the Arbitration Rules of the International Chamber of Commerce pursuant to the Arbitration Rules
of the International Chamber of Commerce. The arbitration shall be carried out in London. The working language of arbitration shall
be English. All the documents and testimonies to be presented as proofs during the process of arbitration shall be translated into
English. The chief arbitrator shall not be a US citizen nor a Chinese citizen. Under the provisions of the following Sub-item (3),
the award made by the arbitrators shall be final and be of binding force to both parties.

(2)

The arbitration shall proceed as soon as possible, shall cut down expenses to the maximum extent, and shall accelerate the making
of an award. Written statements may be considered as proofs.

(3)

Notwithstanding other provisions in this Agreement, if the financing with a guarantee of the Ministry of Finance includes any payment
of debt within the consolidated period of the Paris Club Arrangement, any arbitration award relating to the claim, controversy or
dispute within the scope of this Arrangement (or which shall fall within the scope of such arrangement if any award is not made according
to the stipulated terms) may, according to the choice of either party, be deemed null and void.

3.

The Framework Agreement, guarantees of the Ministry of Finance and export business as mentioned herein do not mean that the Government
of the People’s Republic of China accepts, apart from the forms as mentioned in Paragraph 1 and Item (1) of Paragraph 2, any form
of jurisdictional power exercised by any agency over any dispute arising out of or relating to the Framework Agreement, guarantee
of the Ministry of Finance or export business.

Article 8

Notices

All notices and communications relating to this Framework Agreement or Guarantees of the Ministry of Finance shall be in writing and
in English (or be accompanied by an accurate English translation so as to make the US Ex-Im Bank have the power to use them for all
purposes under this Framework Agreement). They shall be delivered to the persons set forth below and shall be effective when delivered
to the following address or telephone number of the opposite party (to another address or telephone number offered by the Ministry
of Finance or US Ex-Im Bank at least 30 days in advance).

(1)

Notices to the Ministry of Finance:

Director General Finance Department of the Ministry of Finance

Sanlihe, Xicheng District, Beijing, People’s Republic of China, 100820

Tel: (￿￿86)10-68551218

Fax: (￿￿86) 10-68551297

(2)

Legal Advisor Office of the Legal Advisor

US Ex-Im Bank

811 Vermont Avenue, N. W., Washington DC, USA, 20571

Tel: (￿￿1)202-565-3430

Fax: (￿￿1)202-565-3566

Article 9

Termination of agreement

The Ministry of Finance or US Ex-Im Bank may, at any time, terminate this Framework Agreement by written notice to the opposite party
no less than 90 days in advance. However, the termination of this Framework Agreement shall not affect the effectiveness of any prior
guarantee of the Ministry of Finance, or any other right or obligation of either party relating to the insurance, guarantee or direct
loan that the US Ex-Im Bank has consented to provide for any export business under this Framework Agreement theretofore.

This Framework Agreement shall be formally signed and delivered by both parties, shall be in duplicate, shall be of equivalent force,
and shall become effective as of the date as mentioned above.

Signature:

Name:

post_title:

Ministry of Finance of the People’s Republic of China

Signature:

Name:

post_title:

US Ex-Im Bank:



 
Ministry of Finance, National Development and Reform Commission
2005-11-28

 






MINISTRY OF COMMERCE CIRCULAR ON THE FIRST DISTRIBUTION PLAN IN 2006 ON 10 CATEGORIES OF TEXTILES EXPORTED TO EU BY THE NATIONWIDE OPERATORS

Ministry of Commerce

Ministry of Commerce Circular on the First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU by the Nationwide
Operators

Shang Mao Han [2005] No. 97

The responsible commercial sections in all the provinces, autonomous regions, municipalities, separately listed cities, and Xinjiang
Production and Construction Corps, the responsible commercial sections in the city of Harbin, Changchun, Shenyang, Xi’an, Nanjing,
Wuhan, Chengdu, and Guangzhou:

In accordance with Ministry of Commerce Circular on First Nationwide Application Amount of 10 Categories of Textiles Exported to EU
in 2006 and combined with the application situation submitted by the local responsible commercial sections, First Distribution Plan
in 2006 on 10 Categories of Textiles Exported to EU by the Nationwide Operators (see Appendix for detail) is now notified. Matters
concerned are listed as follows:

1.

Local responsible commercial sections shall transmit this circular to the operators with permitted export amount and issue related
export license in accordance with permitted export amount and Applying and Issuing Standards on Provisional Textile Export License
(Temporary).

2.

Related operators shall arrange complete transaction and transportation of the limited textile products in 2006 in accordance with
permitted export amount. The redundant export amount shall be submitted promptly.

3.

Electronic Commerce Centre of Ministry of Commerce shall handle the technical task of the data management on permitted export amount.

Appendix: (omitted)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(1)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(2)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(3)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(4)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(5)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(6)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(7)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(8)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(9)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(10)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(11)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(12)

First Distribution Plan in 2006 on 10 Categories of Textiles Exported to EU(13)

Ministry of Commerce

November 23, 2005



 
Ministry of Commerce
2005-11-30

 






CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION ON PRINTING AND DISTRIBUTING CATALOG FOR THE GUIDANCE OF THE INDUSTRIAL DEVELOPMENT OF RENEWABLE ENERGY

National Development and Reform Commission

Circular of the National Development and Reform Commission on Printing and Distributing Catalog for the Guidance of the Industrial
Development of Renewable Energy

Fa Gai Energy [2005] No. 2517

Reform and development commissions and economic and trade commissions of all provinces, autonomous region, municipalities directly
under the Central Government and cities specifically designated in the state plan, Xinjiang Production and Construction Corps, all
ministries of the State Council and departments directly under the State Council as well as all groups of enterprises specifically
designated in the state plan:

For the purpose of facilitating the industrial development of renewable energy resources in China, the Commission, in accordance with
the provisions prescribed in China Renewable Energy Law, works out, prints and distributes Catalog for the Guidance of the Industrial
Development of Renewable Energy (hereinafter referred to as Catalog) to you for a guidance of supporting policies and measures of
the relevant departments, research and technological development of the relating institutions and enterprises, investment orientation.

The Catalog covers 88 renewable energy development, utilization and system device/equipment manufacture of six regions such as wind
energy, solar energy, biomass energy, geothermal energy, ocean energy and water energy, where some of the industries have become
matured and basically realized commercialization; some industry, technology, products, equipment, comply with the requirement of
sustainable development and the development orientation of energy industry, enjoying broad development prospect and important application
value in some specific regions albeit it remains in the project model or technological research and development phase. In accordance
with the variation of domestic and foreign market demand as well as the technological development of renewable resource industry,
the Commission will undertake timely readjustment and revision upon the Catalog. As for the project equipped with scale development
and utilization, the relevant departments of the State Council will establish and perfect preferential policies concerning technological
research and development, project model, financial taxation, product price, marketing, import and export.

The relevant departments, units and enterprises of all regions are required to analyze domestic and foreign market, choose technology
and projects within the Catalog which may presumably gain comparative advantages, to actively carry out technological research and
development, project model as well as investment and construction.

Appendix: Catalog for the Guidance of the Industrial Development of Renewable Energy

National Development and Reform Commission

November 29, 2005 htm/e04735.htmSerial number

￿￿

￿￿

Appendix:

Catalog for the Guidance of the Industrial Development of Renewable Energy

￿￿

Serial number

project

Instruction and technical indicator

Status quo of development

￿￿￿￿I. Wind energy

￿￿￿￿Wind energy power generation

1

Off-grid wind turbines generating system

It is used for residential electricity supply where the grid fails to cover, including two kinds of electricity generation/
supply, individual household plant and concentrated village plant.

Basic commercialization

2

wind power system of network-forming

It is used for grid electricity supply, including land and offshore network-forming wind power electricity generation,
which can generate electricity through single machine networking and multi-machines networking electricity generation.

Land networking wind power electricity generation: offshore networking electricity generation; technological research
and development

￿￿￿￿Equipment/ fitting manufacture

3

Wind resources evaluation and analysis software

It is used for undertaking technological and economic evaluation upon regional wind energy resources so as to select
the correct wind field. Its main functions include: measurement of treatment and statistical analysis of wind, formation
of wind map, wind resource evaluation, wind generating set and annual electricity yield by wind field and etc.

Technology research, development or introduction

4

Wind field design and optimization software

It is used for optimized design of electricity field (i.e. micro-location selection and arrangement plan design and
optimization of wind generating set). Its main functions include: confirming the influence of wake flow of wind generating
set and adjusting the distributing distance between wind generating sets, undertaking analysis and prediction upon
noise of wind generating set and wind field, eliminating the section failing to meet the requirement of technology, land
quality and environment; optimizing the location-selection of wind generating set automatically, providing visualized
interface of the design process, undertaking technical and economic analysis and etc.

Technology research and development

5

Wind concentrated and remote monitoring system

It is used for concentrated and remote monitoring of wind generating set and wind field operation. Its main functions
include: timely collecting, analyzing and reporting the wind situation and set and supervision data of wind field
operation by means of modern information and communication technology, undertaking efficiency optimization and safety guarantee
system automatically or via the feedback of instruction.

Technology research and development

6

Construction of wind field and maintenance of exclusive equipment

It is used for transport of land and offshore wind generating set, on-the-spot lift and maintenance.

Technology research and development

7

Off-grid wind turbines generating system

It is used for independent system and concentrated village electricity generation, including wind power independent
electricity generation and wind-solar photovoltaic hybrid generate electricity system to ensure its system safety,
economic and continuous and reliable electricity supply.

Basically commercialized

8

wind power generating set of network-forming

It is used for networking wind power generation, including land and offshore generating set. Offshore wind generating
set shall be adapted to oceanic geology, hydrologic condition and climate.

Land wind generating set: above-sea wind generating set of the primary stage of commercialization; technology research
and development

9

Total design software of wind generating set

It is used for the total design of structural dynamics modeling and analysis, limit load and fatigue load calculation,
and win generating set dynamic emulation.

Technology research,

development or introduction

10

Wind mill blade

It is used for supporting large scale wind mill set with its capacity no less than 1,000 kw.

Technology research and development

11

Wind mill blade design software

It is used for designing large scale Wind mill blade pneumatic shape and its construction technique

Technology research and development

12

Wind mill blade material

It is used for manufacturing of high strength, low-mass, large-volume blade, including GRP and carbon fiber reinforced
plastics

Technology research and development

13

Wind mill wheel hub

It is used for supporting wind generating set with its capacity no less than 1,000 kw.

Technology research and development

14

Wind mill driving system

It is used for supporting wind generating set with its capacity no less than 1,000 kw.

Technology research and development

15

Wind mill deviation system

It is used for supporting wind generating set with its capacity no less than 1,000 kw.

Technology research and development

16

Wind mill braking system / mechanic braking

It is used for supporting wind generating set with its capacity no less than 1,000 kw.

Technology research and development

17

Wind mill generator

It is used for supporting wind generating set with its capacity no less than 1,000 kw, including double- fed generator
and permanent magnet generator.

At the beginning of commercialization, technology research and development (permanent magnet generator)

18

Wind generating operation control system and converter

It is used for supporting wind generating set with its capacity no less than 1,000 kw, including: off-grid wind generating
controller; speed-loss wind generating controller; variable-speed constant-frequency wind-power generating controller
and converter.

technology research and development

19

Wind mill generating set safety guarantee system

It is used for ensuring the safety of wind generating set on occasion of extreme weather, system failure and grid
failure

technology research and development

20

Testing equipment for compatibility between electricity and magnet in wind mill generating set, lighting impulse

It is used for testing the compatibility between electricity and magnet in wind mill generating set and lighting impulse
in order to make the set adaptable to natural environment.

technology research and development

21

Design of Integration between Wind Power and Power Grid and grid stability analysis software

It is used for evaluating the large-scale wind field integration system and stability of the grid

technology research and development

22

Wind field electricity generating capacity prediction and grid scheduling and matching software

It is used for monitoring and collecting information about the performance and generating capacity upon the wind generating
capacity, analyzing and estimating the variation of the wind field in the second day and its generating output, making
scheduling plan for grid enterprise and promoting large-scale wind field development and operation.

technology research and development

23

Wind field smooth transition and controlling system

It is used for providing support for the smooth transition of large-scale wind field in case of grid integration failure.

technology research and development

￿￿￿￿II. Solar energy

￿￿￿￿Utilization of solar energy and heat utilization

24

Off-grid solar energy photovoltaic electricity generation

It is used for supplying electricity to the resident area where the grid fails to cover, including independent household
system and concentrated village.

Basic commercialization

25

Networking solar energy photovoltaic electricity generation

It is used for supplying grid with electricity, including building integrated solar energy photovoltaic electricity
generation

Technology research and development and project model

26

Solar energy for electricity generation

It is used for supplying electricity to the resident area where the grid fails to cover, including tower solar energy
electricity generator, trough-shaped solar energy electricity generator, disk-shaped solar energy electricity generator
and instant focal solar energy electricity generator

Technology development

27

Industrial photovoltaic electricity resources

It is used for supplying electricity to scattered meteorological station, seismic station, highway station, broadcast
and television, satellite ground station, hydrometry, solar energy navigation mark, highway and railway signal and
solar energy cathodic protection system.

Commercialization

28

Solar energy lighting system

Including solar energy street lamp, yard lamp, lawn lamp, billboard, solar energy LED cityscape lamp and etc.

Commercialization

29

Solar energy vehicle

Including: solar energy-driven automobile, solar energy motor-assisted bicycle and etc.

Technology research and development, project model

30

Solar energy photovoltaic sea water desalination system

It is used for providing fresh water to remote island resident area where fresh water is in scarcity.

Technology research and development, project model

MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF EXPORT SUPERVISED WAREHOUSES AND THE GOODS STORED THEREIN

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

No. 133

The “Measures of the Customs of the People’s Republic of China for the Administration of Export Supervised Warehouses and the Goods
Stored Therein”, which were adopted upon deliberation at the executive meeting of the General Administration of Customs on November
2, are hereby promulgated, and shall go into effect as of January 1, 2006.
Director General: Mou Xinsheng

November 28, 2005
Chapter I General Provisions

Article 1

In order to regulate the Customs’ administration of export supervised warehouses and the goods stored therein, the present Measures
are formulated in accordance with the “Customs Law of the People’s Republic of China” as well as other relevant laws and administrative
regulations .

Article 2

The term “export supervised warehouse” as mentioned in the present Measures refers to a warehouse under special Customs supervision,
which was set up upon approval of the Customs, for storage of goods whose customs procedures for export have been finished or for
bonded logistics distribution, or for provision of circulative value-added services.

Article 3

The present Measures shall apply to the establishment and management of export supervised warehouses as well as the administration
of the goods stored therein.

Article 4

Export supervised warehouses are divided into export distribution warehouses and warehouses for domestic transfer.

The term “export distribution warehouse” refers to a warehouse used to store export goods for the purposes of departure from the territory
of China.

The term “warehouse for domestic transfer” shall refer to a warehouse used to store export goods for the purposes of domestic transfer.

Article 5

The establishment of an export supervised warehouse shall meet the requirements of regional logistics development and the requirements
of the Customs on the layout of export supervised warehouses, and comply with the relevant laws and administrative regulations of
the State on land administration, planning, traffic, fire prevention, security, environmental protection, etc.

Article 6

The application for the establishment of an export supervised warehouse shall be accepted by the competent Customs of the place where
the export supervised warehouse is located, while the power to examine and approve the application shall reside in the Customs directly
under the General Administration of Customs.

Article 7

Upon approval of the Customs, the following goods may be stored into an export supervised warehouse:

(1)

Export goods under ordinary trade;

(2)

Export goods under processing trade;

(3)

Export goods which are transferred from another special customs supervision area or place;

(4)

Goods imported for assembling other goods for export, and packing materials imported for changing the packing of the goods in an export
supervised warehouse in the event that the export supervised warehouse is an export distribution warehouse;

(5)

Other goods whose customs procedures for export have been finished.

Article 8

The following goods may not be stored in an export supervised warehouse:

(1)

Goods prohibited by the State from entering into or exiting from the territory of China;

(2)

Restricted goods unapproved by the State from entering into or exiting from the territory of China;

(3)

Other goods may not be stored according to the customs provisions.

Chapter II Establishment of Export Supervised Warehouses

Article 9

An enterprise that applies for the establishment of an export supervised warehouse shall satisfy the following requirements:

(1)

It has been registered by the administrative department for industry and commerce as a legal person;

(2)

It has the right to engage in import and export and that to engage in warehousing;

(3)

Its registered capital is no less than RMB 3,000,000 Yuan;

(4)

It has the capacity of paying duties;

(5)

It has a special place for storage of goods, the area of which shall be not less than 5,000 square meters in the case of an export
distribution warehouse, or not less than 1,000 square meters in the case of a warehouse for domestic transfer.

Article 10

An enterprise that applies for the establishment of an export supervised warehouse shall submit the following written materials and
certificates to the competent Customs of the place where the warehouse is located:

(1)

Letter of Application for the Establishment of Export Supervised Warehouse;

(2)

Form of Application Matters for the Establishment of Export Supervised Warehouse;

(3)

The application report and the feasibility report of the enterprise on the establishment of the export supervised warehouse;

(4)

A photocopy of the approval document for the establishment of the enterprise that applies for the establishment of the export supervised
warehouse, or a photocopy of the relevant approval document issued by competent department for the said enterprise to engage in the
business concerned;

(5)

Photocopies of the industrial and commercial business license and the tax registration certificate of the enterprise that applies
for the establishment of the export supervised warehouse;

(6)

A photocopy of the Registration Certificate of the Consignee or Consigner for Import and Export of Goods or Registration Certificate
of the Declaration Enterprise of the enterprise that applies for the establishment of the export supervised warehouse;

(7)

A photocopy of the proof document on the land use right for the address of the export supervised warehouse, or a photocopy of the
agreement on leasing the warehouse; and

(8)

The sketch map or ichnography on the location of the warehouse.

Where a photocopy of any of the documents listed in the preceding paragraph is provided, the original shall be submitted to the Customs
for check as well.

Article 11

The Customs shall, in accordance with the Administrative Licensing Law of the People’s Republic of China and the Measures for the
Implementation of the Administrative Licensing Law of the People’s Republic of China by the Customs, accept and examine the application
for the establishment of export supervised warehouses. If the application satisfies the prescribed requirements, the Customs shall
make an administrative licensing decision on approving the establishment of the export supervised warehouse, and issue the approval
document; if the application fails to satisfy the prescribed requirements, the Customs shall make an administrative licensing decision
on not approving the establishment of the export supervised warehouse, and shall inform in writing the applicant enterprise of such
decision.

Article 12

An enterprise that applies for the establishment of an export supervised warehouse shall apply to the Customs for acceptance check
of the export supervised warehouse within 1 year as of Customs’ issuance of the approval document.

An enterprise that applies for acceptance check shall satisfy the following requirements:

(1)

It satisfies the requirements prescribed in Item (5) of Article 9 of the present Measures;

(2)

It has the safety isolation facilities, supervision facilities and other necessary facilities for engaging in the warehousing business,
which meet the requirements for customs supervision;

(3)

It has the computer management system meeting the requirements for customs supervision, and is connected to the Customs’ network;

(4)

It has set up the warehouse management rules, such as the articles of association, organizational structure, storage facilities, account
book management and accounting rules, etc. of the export supervised warehouse;

(5)

If the warehouse is in the possession of the enterprise, it shall have the property right certificate for the export supervised warehouse;
if the warehouse is rented by the enterprise, a leasing contract with the term of lease for no less than 5 years shall be concluded;
and

(6)

It meets the standards of the acceptance check for fire prevention.

Where an enterprise fails to apply for acceptance check within the time limit without any justifiable reason or is found unqualified
upon the acceptance check, the approval document for its export supervised warehouse shall be automatically invalidated.

Article 13

An export supervised warehouse may be put into operation after being checked as qualified upon acceptance check, and registered by
the Customs directly under the General Administration of Customs, with the Registration Certificate of the People’s Republic of China
for the Customs Export Supervised Warehouse being issued. The period of valid of the Certificate shall be 3 years.

Chapter III Administration of Export Supervised Warehouses

Article 14

An export supervised warehouse must be used for special purposes, and may not be sub-leased or lent to others for operation, or be
subordinated with any branch warehouse.

Article 15

The Customs shall implement computer network management on export supervised warehouses.

Article 16

The Customs may, at any time, dispatch officers to enter an export supervised warehouse to inspect the entry, exit, transfer and
storage of goods as well as the relevant account books and records.

The Customs may, jointly with the enterprise that operates the export supervised warehouse, lock the warehouse or directly accredit
officers to the warehouse for the purposes of supervision.

Article 17

The Customs shall adopt the system of classified management and deferred examination with respect to export supervised warehouses.
The concrete measures shall be separately formulated by the General Administration of Customs.

Article 18

The person-in-charge of an export supervised warehouse operation enterprise and the managers of an export supervised warehouse shall
be familiar with and abide by the relevant Customs provisions, and accept the trainings held by the customs, as well.

Article 19

An export supervised warehouse operation enterprise shall faithfully fill in the relevant documents and the account books of the
warehouse, truthfully record and comprehensively reflect its business activities and financial conditions, work out the warehouse’s
monthly statements on entry, exit, transfer and storage of goods as well as the annual accounting report, and shall regularly submit
them to the competent Customs.

Article 20

If an export supervised warehouse operation enterprise needs to change its name, registered capital, form of organization or legal
representative, etc., it shall, prior to the change, submit to the Customs directly under the General Administration of Customs a
written report stating the content to be changed, the cause and time of change. After the change, the competent Customs shall check
the enterprise anew according to Article 9 of the present Measures. If the type of export supervised warehouse needs to be changed,
such a change shall be handled according to the relevant provisions in Chapter II of the present Measures on the establishment of
export supervised warehouses.

Where an export supervised warehouse needs to change its name, address or warehousing area, etc., it shall get approval from the Customs
directly under the General Administration of Customs.

Article 21

Where an export supervised warehouse commits any of the following acts, the Customs shall cancel its registration, and revoke its
Registration Certificate for the Export Supervised Warehouse:

(1)

It has not operated for 6 consecutive months without justifiable reasons;

(2)

It fails to apply for deferred examination within the time limit without justifiable reasons or is found unqualified upon deferred
examination;

(3)

As a warehouse operation enterprise, it applies in writing for modifying its type;

(4)

As a warehouse operation enterprise, it applies in writing for terminating its warehousing business; or

(5)

As a warehouse operation enterprise, it fails to satisfy the requirements as prescribed in Article 9 of the present Measures.

Chapter IV Administration of Goods in Export Supervised Warehouses

Article 22

The time limit of storage shall be 6 months for goods stored in an export supervised warehouse, and may be extended upon approval
of the competent Customs, provided that the period of such extension is not more than 6 months.

A warehouse operation enterprise shall, prior to the expiration of the term of storage, notify the consigner or its agent to go through
the formalities for the export or import of the goods.

Article 23

The goods stored in an export supervised warehouse may not be substantially processed.

Upon approval of the competent Customs, the circulative value-added services such as quality inspection, grading, classification,
selecting, dismantling, adding shipping marks, mark labeling, fixing films, changing package, etc. may be carried out in an export
supervised warehouse.

Article 24

In case an export supervised warehouse is approved to enjoy the policy of tax refund upon entry of goods into the warehouse, the
Customs shall, after the goods have been cleared and entered into the warehouse, issue the proof page of the declaration list for
the export goods.

In case an export supervised warehouse is not enpost_titled to enjoy the policy of tax refund upon entry of goods into the warehouse, the
Customs shall, after the goods have actually departed from the territory of China, issue the proof page of the declaration list for
the export goods.

Article 25

Upon approval of the competent Customs at both the transferor’s and transferee’s localities, and after the relevant formalities have
been gone through as required, goods may be circulated between export supervised warehouses, and between an export supervised warehouse
and a special supervision area or place such as bonded port area, bonded zone, export processing zone, bonded logistics park, bonded
logistics center, or bonded warehouse.

The circulation of goods involving export tax refund, shall be governed by the relevant legal provisions of the State.

Article 26

Where, with respect to some export goods stored in an export supervised warehouse, the permit shall be submitted or the export duties
shall be paid as required by any legal provision of the State, the consigner or its agent shall submit the permit or pay the duties.

Article 27

When export goods are stored into an export supervised warehouse, the customs declaration shall be made by the consigner or its agent
with the competent Customs. The consigner or its agent shall submit not only the relevant documents as required by the Customs provisions,
but also the “Warehouse Receipt of the Export Supervised Warehouse” (see Annex 1) filled in by the warehouse operation enterprise.

The Customs shall check, mark and register the varieties, quantity and amount, etc. of the declared goods which enter into an export
supervised warehouse.

Upon approval of the competent Customs, the declaration for the goods entering into an export supervised warehouse in small quantities
but by frequent batches may be made in a centralized way.

Article 28

The warehouse operation enterprise or its agent shall make declaration with the competent Customs when goods having exited from the
warehouse are exported. The warehouse operation enterprise or its agent shall submit not only the relevant documents in accordance
with the customs provisions, but also the Delivery Bill of Export Supervised Warehouse (see Annex 2) filled in by the warehouse operation
enterprise.

In case the competent Customs at the warehouse’s locality is not located at the port where the goods exiting from the warehouse exit
from the territory of China, the relevant formalities may, upon approval of the Customs, be gone through either with the Customs
at the port’s locality or with the competent Customs.

Article 29

Where goods in an export supervised warehouse are changed into imported ones, the relevant formalities shall, upon approval of the
Customs, be gone through in accordance with the relevant legal provisions on imported goods.

Article 30

Where the goods stored into an export supervised warehouse need to be replaced due to the quality or other reason, they may be replaced
upon approval of the competent Customs at the locality of the warehouse. Before the replaced goods exit from the warehouse, the replacement
goods shall enter into the warehouse, and the commodity code, name, specifications, types, quantity and value shall be the same as
those of the original goods.

Article 31

Where goods in an export supervised warehouse really need to be turned back from the port of loading or from the warehouse due to
particular reasons, the matter shall be approved by the Customs, and the relevant formalities shall be gone through in accordance
with the relevant legal provisions.

Chapter V Legal Liabilities

Article 32

Where the goods stored in an export supervised warehouse are damaged or lost during the term of storage, except for force majeure,
the warehouse shall pay duties to the Customs for the damaged or lost goods according to law, and shall bear corresponding legal
liabilities.

Article 33

Where an enterprise obtains the administrative license for the establishment of an export supervised warehouse by concealing the
true information, providing any false document or by any other foul means, such an administrative license shall be revoked by the
Customs according to law.

Article 34

Where an export supervised warehouse operation enterprise commits any of the following acts, the Customs shall order it to make corrections,
may give it a warning, or impose a fine of no more than 10,000 Yuan; if there is any illegal gains, a fine of no more than 3 times
of the illegal gains shall be imposed upon it, provided that the maximum amount of the fine is no more than 30,000 Yuan:

(1)

It stores irrelevant goods in an export supervised warehouse without approval of the Customs;

(2)

Its export supervised warehouse manages the goods in a disorderly manner, and its account books are unclear;

(3)

It violates the provisions of Article 14 of the present Measures; or

(4)

Any of the contents of its business operation is changed, but it fails to go through the relevant formalities at the Customs in accordance
with Article 20 of the present Measures.

Article 35

Other illegal acts in violation of the present Measures shall be punished by the Customs in accordance with the “Customs Law of the
People’s Republic of China” and the “Regulation of the People’s Republic of China for Implementation of Customs Administrative Penalties”.
Where a crime is constituted, the party concerned shall be investigated for criminal liabilities according to law.

Chapter VI Supplementary Provisions

Article 36

An export supervised warehouse operation enterprise shall provide the Customs with a place and necessary conditions for office work.

Article 37

The power to interpret the present Measures shall reside in the General Administration of Customs.

Article 38

The present Measures shall go into effect as of January 1, 2006. The “Interim Measures of the Customs of the People’s Republic of
China for the Administration of Export Supervised Warehouses”, which went into effect on May 1, 1992, shall be abolished simultaneously.

Annexes:

1.

Warehouse Receipt of Export Supervised Warehouse

2.

Delivery Bill of Export Supervised Warehouse





￿￿￿￿1

￿￿

Annex 1

Warehouse Receipt of Export Supervised Warehouse

￿￿

￿￿￿￿Warehouse No.￿￿                

￿￿￿￿Receipt No.￿￿              

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

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024

Warehouse Name

 

Deceleration Form No.

 

Sequence
No.

Commodity Code

Name and Specification

Quantity

Unit

Gross Weight/ Net Weight

Currency

Unit price

Total Price