MEASURES OF GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR SUPERVISING AND CONTROLLING DUTY-FREE SHOPS AND GOODS

General Administration of Customs

General Administration of Customs Order

No.132

The Measures of General Administration of Customs of the People’s Republic of China for Supervising and Controlling Duty-Free Shops
and Goods, adopted the at executive meeting of this Administration on September 30, 2005, is hereby promulgated and shall go into
effect as of January 1, 2006.

Director Mou Xinsheng

November 28, 2005

Measures of General Administration of Customs of the People’s Republic of China for Supervising and Controlling Duty-Free Shops and
Goods

Chapter 1 General Provisions

Article1

These Measures are formulated in order to regulate the supervision and control of duty-free shops and goods by the Customs, in accordance
with the Customs Law of the People’s Republic of China, other relevant laws as well as administrative rules and regulations.

Article2

These Measures shall be applicable to the establishment and termination of duty-free shops, import, sales (including supply for free)
and writing-off of duty-free foods.

Article3

Duty-free goods shall be uniformly imported by operation entities of duty-free shops, and undergo relevant Customs procedures.

Article4

For spare and accessory parts as well as tools for maintenance of duty-free goods, booths and racks for the said duty-free goods,
and such overstocked duty-free goods as originally produced for exports, operation entities shall handle pertinent formalities which
are required for general imported goods.

Article5

A Customs office directly under the GAC of the place where duty-free shops are located or a subordinate Customs authorized by such
Customs office (hereinafter referred to as the competent Customs) shall dispatch personnel to examine operation entities and duty-free
shops in terms of business qualification, warehouse in/out records, sales records, and inventory records of duty-free goods. Operation
entities shall provide duty-free shops with necessary assistance.

Article6

The competent Customs may, according to work requirements, dispatch personnel to conduct supervision and control at duty-free shops,
and duty-free shops must provide necessary office facilities.

Chapter 2 Establishment and Termination of Duty-Free Shops

Article7

An operation entity intending to establish duty-free shops shall file a written application to the General Administration of Customs
and meet the following requirements:

(1)

being qualified as an independent legal person;

(2)

having sales places and supervised warehouses for duty-free goods, which satisfy Customs’ supervision and control requirements;

(3)

having a computer management system, which satisfies Customs’ supervision and control requirements and can provide the Customs with
warehouse in and out information as well as sales information of duty-free goods;

(4)

having a certain scale of business operation. In case of application for establishment of a duty-free shop at a port, there shall
be more than 50 thousand persons entering and leaving the port each year;

(5)

having formulated complete articles of association and established complete internal financial management system, all of which cover
cooperation agreements, scale of business operation, legal representative and others; and

(6)

having met other requirements laid down in relevant laws, administrative rules and regulations, as well as the Customs regulations.

Article8

The General Administration of Customs shall, pursuant to the procedures and periods set forth in the Administrative Licensing Law
of the People’s Republic of China and the Measures of the General Administration of Customs of the People’s Republic of China for
Implementation of the Administrative Licensing Law of the People’s Republic of China, undertake procedures for examination and approval
of duty-free shops.

Article9

The establishment of sales places of duty-free goods shall comply with Customs supervision and control requirements. Sales places
of duty-free shops at a port shall be located within the separation zone of the same port; Sales places for duty-free shops of means
of transport shall be located inside means of transport used for international operation; Sales and delivery-taking points of urban
duty-free shops shall be located within of the in-and out separation zone of a port.

Article10

The establishment of supervised warehouses for duty-free goods shall satisfy the following conditions and requirements:

(1)

Having safety separation facilities which meet Customs supervision and control requirements;

(2)

Establishing a special warehouse management system, preparing monthly statements of warehousing entry, removal and storages, being
equipped with full-time warehouse keepers, and reporting the said system, statements and warehouse keepers to the Customs for the
record;

(3)

Only permitting to place duty-free goods of duty-free shops supervised warehouses belong to; and

(4)

Meeting other conditions and requirements of pertinent State laws, administrative rules and regulations, as well as Customs regulations.

Article11

Any duty-free shop which is approved to be set up shall, on month prior to its commencement of business, file an application to the
competent Customs for acceptance. After passing the said acceptance, the duty-free shop shall handle record-keeping formalities with
the competent Customs and submit the following materials:

(1)

photocopies of approval documents issued by the General Administration of Customs;

(2)

photocopies of the original and duplicate of the industrial and commercial license;

(3)

photocopies of the tax registration certificate;

(4)

floor plans, areas and location plans of business places for duty-free goods and supervised warehouses;

(5)

dies of special business seals of duty-free shops; and

(6)

photocopies of identification certificates of legal representatives of duty-free shops.

Where photocopies are required, originals shall be also submitted at the same time for examination and verification.

Where the aforesaid materials are changed, any duty-free shop shall, within 10 working days form such changes, handle change formalities
with the competent Customs.

Article12

If applying to suspend, terminate or restore the business operation of their duty-free shops, operation entities shall report to the
General Administration of Customs for approval. Any duty-free shop shall, before an operation entity files an application for suspension
or termination of business operation, undergo relevant Customs procedures, such as the writing-off of duty-free goods from stock.

In the event that a duty-free shops, which is set up with an approval, fails to begin operation without good reasons within one year
from the said approval or suspends its operation for more than one year, or changes its business partners, pertinent application
formalities shall be handled again in accordance with Article7 of these Measures.

Article13

Should names of duty-free shops, addresses or areas of sales places for duty-free goods or of supervised warehouses be changed, operation
entities shall report to the Customs Administration of Customs for approval.

Chapter 3 Import, Warehousing Entry and Removal, and Allotment of Duty-Free Goods

Article14

If importing duty-free goods for duty-free shops, operation entities shall fill a Goods Declaration for Importation of the General
Administration of Customs of the People’s Republic of China, affix a seal for declaration which are kept on file by such operation
entities with the competent Customs, and handle formalities for import of duty-free goods with the competent Customs.

Where duty-free goods are imported from other places, operation entities shall, in accordance with relevant provisions of the Measures
of the General Administration of Customs of the People’s Republic of China for Supervision of Transit Goods, transit duty-free goods
to the competent Customs for handling import formalities.

Article15

After duty-free goods enter supervised warehouses, duty-free shops shall complete a Permit for Entry/Removal of Duty-Free Goods into
and out of Supervised Warehouses (See Appendix for the format) accompanied by other pertinent documents and file an application to
the competent Customs. The competent Customs shall, if there is no discrepancy upon examination, conduct a supervision over the entry
of duty free goods into warehouses.

Without any approval of the Customs, duty-free goods shall not be processed or assembled after entering warehouses.

Article16

Duty-free shops shall, before taking duty-free goods from supervised warehouses and letting such goods enter business places for sales,
complete a Permit for Entry/Removal of Duty-Free Goods into and out of Supervised Warehouses and file an application to the competent
Customs. The competent Customs shall, if there is no discrepancy upon examination, conduct a supervision over the taking of duty
free goods concerned out of supervised warehouses into sales places.

Article17

Where duty-free goods are allocated between/among duty-free shops, duty-free shops which such goods are allocated in shall complete
a Permit for Allotment of Duty-Free Goods (See Appendix 2 for the format) and apply to their competent Customs. Duty-free shops which
such goods are allocated in shall, after obtaining an approval, transit duty-free goods into themselves in accordance with the Measures
of the General Administration of Customs of the People’s Republic of China for Supervision of Transit Goods.

Chapter 4 Sales of Duty-Free Goods

Article18

The wordings of “China Duty Not Paid” both in Chinese and English shall be indicated on remarkable positions inside and outside packages
of duty-free imported tobacco products and alcoholic drinks which are sold by duty-free shops.

Duty-free shops shall prepare sales receipts and delivery orders of duty-free goods according to the Customs requirements, and duty-free
shops at a port shall fill pertinent contents on sales receipts and delivery orders of duty-free goods, such as certificates of means
of transport taken by entering and exiting personnel or valid certificates for entering and exiting personnel to go into and leave
the territory.

Article19

Sales objects of duty-free shops at a port shall be limited to persons who have finished exit formalities and will go out of the territory,
as well as persons who haven’t completed entry formalities. Duty-free shops shall sell duty-free goods according all the said persons
according to certificates of their taken means of transport and valid certificates for them to go into and leave the territory.

Article20

Sales objects of duty-free shops of means of transport shall be limited to entering and exiting personnel taking inward and outward
means of transport. Duty-free shops shall only sell duty-free goods when means of transport are used in international (regional)
voyages. Duty-free shops shall submit to the competent Customs the Sales Details of Duty-Free Goods (See Appendix 3 for the format)
which are signed by a person responsible for means of transport or his/her agent, for examination.

Article21

The sales objects of urban duty-free shops shall be limited to overseas personnel who will leave the territory. Duty-free shops shall
sell duty-free goods according to valid exiting certificates of such overseas personnel and their air tickets (ship tickets and bus
or train tickets), and within the port separation zone deliver duty-free goods to purchasers for taking out of the territory.

Article22

The sales objects of duty-free shops oriented to diplomatic personnel shall be limited to diplomatic representatives and consular
sections of foreign countries in China, diplomatic personnel and consular officials of such consular sections, other institutions
and persons who can enjoy diplomatic privileges and immunities. Duty-free shops shall, according to limited quantity approved by
a Customs office directly under the GAC of the place where the aforesaid institutions and persons reside or a subordinate Customs
authorized by such Customs office in accordance with pertinent provisions, sell duty-free goods in a limited quantity.

Article23

The sales objects of duty-free shops providing vessels shall be limited to vessels of international (regional) voyages leaving the
territory and crew members thereof. Duty-free shops providing vessels shall file an application to the competent Customs for supplying
vessels, complete a Permit for Vessel Supply of Duty-Free Goods (See Appendix 4 for the format) and supply vessels of international
(regional) voyages under the supervision and control of the Customs.

Chapter 5 Loss Reporting, Verification and Writing-off of Duty-Free Goods

Article24

Where duty-free goods are over-landed or found short when undergoing warehousing entry procedures, duty-free shops shall timely report
to the competent Customs in writing. The competent Customs shall, after verifying correct, issue examination and inspection records
and allow duty-free shops to amend pertinent data and contents indicated on the Permit for Entry/Removal of Duty-Free Goods into
and out of Supervised Warehouses.

Article25

Where duty-free goods are destroyed or lost during the storage or sales period, duty-free shops shall timely report to the competent
Customs in writing. If the said destruction or losses are resulted from events of force majeure, duty-free shops shall complete a
Permit for Loss Reporting of Duty-Free Goods (See Appendix 5 for the format). The competent Customs shall, after verifying correct,
approve to grant tax exemption and write off such destroyed or lost goods.

Where duty-free goods are destroyed or lost during the storage or sales period due to other reasons, duty-free shops shall pay taxes
of destroyed or lost duty-free goods according to law.

Article26

Should duty-free goods, after being kept for a period longer than their shelf lives, be unable to be used or become deteriorated,
duty-free shops shall timely report to the competent Customs in writing, and complete a Permit for Loss Reporting of Duty-Free Goods.
The competent Customs shall, after conducting examination, inspection and verification, approve to return or destroy under the supervision
and control of the Customs the said duty-free goods.

Article27

Duty-free shops shall establish special account books, before the 25th day of the first month during each quarter prepare lists on
warehousing entry and removal, sales, inventory, allotment, destruction, losses, period longer than shelf lives of duty-free goods
for the last quarter, complete pertinent documents, such as a Detailed Account of Duty-Free Goods (See Appendix 6 for the format),
accompanied by sales receipts and delivery orders, an Inventory Quantity of Duty-Free Goods (See Appendix 7 for the format), and
a Declaration for Exportation of Goods, and shall handle formalities for verifying and writing off duty-free goods with the competent
Customs. The competent Customs may, if deeming necessary, dispatch its personnel to conduct a site inspection at business places
and supervised warehouses of duty-free goods.

Chapter 6 Legal Liability

Article28

If committing any of the following acts, operation entities or duty-free shops shall be ordered by the Customs to make corrections,
may be given warnings and, if circumstances are serious, given punishments in accordance with Article26 and Article27 of the Regulations
of the General Administration of Customs of the People’s Republic of China for Implementation of Administrative Penalties:

(1)

selling duty-free goods to objects other than those specified herein;

(2)

selling duty-free goods of classes, in a limited quantity and value more than those approved by the Customs;

(3)

failing to sell duty-free goods within stipulated territories;

(4)

failing to deal with formalities regarding import declaration, warehousing entry and removal, sales, verification, writing-off and
so on of duty-free goods; and

(5)

leasing, assigning or transferring the right to deal with duty-free shops.

Article29

Where committing other illegal acts in violation hereof, operation entities or duty-free shops shall be punished by the Customs in
accordance with the Customs Law of the People’s Republic of China and the Regulations of the General Administration of Customs of
the People’s Republic of China for Implementation of Administrative Penalties; If their offences constitute crimes, operation entities
or duty-free shops shall be investigated to bear criminal liabilities.

Chapter 7 Supplementary Provisions

Article30

For the purpose of these Measures, the following terms shall have the meanings ascribed to them as follows:

“Operation entities” refer to enterprises which are approved by the State Council or its authorized departments, and are qualified
for engaging in business of duty-free goods.

“Duty-free shops” refer to enterprises, which are, with the approval of the General Administration of Customs, set up by operation
entities at places approved by the State Council of the People’s Republic of China or its authorized departments, have sales places
and supervised warehouses of duty-free goods that meet Customs supervision and control requirements, and sell duty-free goods to
sales objects, more specifically, including duty-free shops at a port, duty-free shops of means of transport, urban duty-free shops,
duty-free shops of diplomatic personnel and duh-free shops supplying vessels.

“Duty-free goods” refer to imported commodities which are tax free transported by operation entities into the territory based on operational
classes approved by the General Administration of Customs, for duty-free shops to sell to sales objects, including free samples and
imported free gifts.

“Sales places of duty-free goods” refer to special places used by duty-free shops to sell duty-free goods.

“Supervised warehouses of duty-free goods” refer to warehouses specially used by duty-free shops to store duty-free goods.

Article31

The General Administration of Customs shall be responsible for the interpretation of these Measures.

Article32

These Measures shall com into effect as of January 1, 2006.

Appendices: (Omitted)1.

Permit for Entry/Removal of Duty-Free Goods into and out of Supervised Warehouses

Permit for Allotment of Duty-Free Goods

Sales Details of Duty-Free Goods

Permit for Vessel Supply of Duty-Free Goods

Permit for Loss Reporting of Duty-Free Goods

Detailed Account of Duty-Free Goods

Inventory Quantity of Duty-Free Goods

List of Abolished Documents

General Administration of Customs
2005-11-28

MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF BONDED LOGISTIC PARKS

the General Administration of Customs

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

No.134

The Measures of the Customs of the People’s Republic of China for the Administration of Bonded Logistic Parks, which were adopted
upon deliberation at the executive meeting of the General Administration of Customs on November 1st, 2005, are hereby promulgated,
and shall go into effect as of January 1st, 2006.

Director of the General Administration of Customs Mou Xinsheng

November 28, 2005.

Measures of the Customs of the People’s Republic of China for the Administration of Bonded Logistic Parks

Chapter I General Provisions

Article 1

In order to regulate the administration of the Customs on bonded logistic parks and the flow of goods into or out thereof, enterprises
in the bonded logistic parks and their operation, these Measures are formulated according to the Customs Law of the People’s Republic
of China as well as the relevant laws and administrative regulations .

Article 2

The term “bonded logistic park” (hereinafter referred to as the park) as mentioned in these Measures refers to the special zone under
Customs supervision, which are established within the planning areas of a bonded zone or a special port section adjacent to the bonded
zone for the development of modern international logistics upon the approval of the State Council.

Article 3

The Customs shall set up office to be stationed in the park and carry out 24-hour supervision over the goods, means of transport,
articles carried by individuals that enter and exit the park, and the relevant locations within the park in accordance with these
Measures.

Article 4

Checkpoints, isolation facilities, video monitoring systems and other facilities necessary for the Customs surveillance, which meet
the requirements of Customs surveillance, shall be established between the park and the other areas within the territory of the People’s
Republic of China (hereinafter referred to as areas beyond the park).

Article 5

Warehouses, yards, checking sites, and operation places necessary for business commanding and dispatching shall be established within
the park, and no industrial production and processing places and commercial consumption facilities may be established therein.

The Customs, the administrative organ of the park and the operating entity thereof, as well as the offices of enterprises established
within the park (hereinafter referred to as the enterprises in the park) and of other entities shall be established in the comprehensive
office areas of the park within the planning areas and outside the net surrounding the park. Except security guards and the personnel
on duty of the relevant departments and of enterprises, no other person may reside in the park.

Article 6

The relevant businesses may not be carried out in the park unless the relevant facilities and places as prescribed in Article 4 and
paragraph one of Article 5 of the these Measures are qualified upon the check acceptance conducted by the General Administration
of Customs in conjunction with the relevant departments of the State Council.

Article 7

The following businesses may be carried out in the park:

Storing of import and export goods and other goods that haven’t gone through the formalities for Customs clearance;

Performance of simple circulative processing and value-added services for the stock in trade;

Import and export trade, including transit trade;

International purchase, allocation and distribution;

International transit business;

Testing and maintenance;

Exhibition of commodities; and

Other international logistic businesses as approved by the Customs.

Article 8

No commercial retail, processing and manufacture, renovation, dismantlement, and any other business in no relation with the park areas
may be carried out within the park.

Article 9

Under any of the following circumstances, the enterprises in the park shall report in writing to the competent Customs in the park
and go through the relevant formalities within the time limit prescribed by these measures:

They suffer from force majeure and other disasters;

The goods under Customs supervision are seized, detained or under other mandatory measures taken by the administrative law enforcement
departments or judicial departments;

The goods under Customs supervision are stolen; or

Other circumstances as prescribed by laws and administrative regulations.

The time limit for reporting the aforesaid circumstances shall be within 5 workdays as of the occurrence in the case of the circumstance
as prescribed in item (1); and the time shall be within 3 workdays in the case of the circumstances as prescribed in items (2) through
(4).

Article 10

For the goods under Customs supervision that are transported between the park and the areas beyond the park, the competent Customs
houses in the park areas may request the enterprises to provide corresponding guarantee.

Article 11

Goods and articles that are prohibited from import and export by laws or administrative regulations my not enter and exit the park.

Chapter II Administration of the Customs on Enterprises in the Park

Article 12

Enterprises in the park shall have the qualification of a legal entity. Before carrying out business, the enterprises in the park
shall go through registration formalities with the Customs according to the Provisions of the Customs of the People’s Republic of
China on the Administration of Registration of Declaration Entities and the relevant provisions.

Under special circumstances, and upon the approval of the Customs directly under the General Administration of Customs, a legal person
enterprise beyond the park may establish branches within the park according to law.

Article 13

Enterprises in the park shall satisfy the following conditions:

Having the capability to pay taxes to the Customs and perform other legal obligations; and

Having a special business office in the park.

Article 14

Where an enterprise in the park plans to change the areas and address of its business office and other matters concerned, it shall
report to the Customs directly under the General Administration of Customs for approval. If it plans to change its name, organization,
nature, legal representative, registered capital, and other registered items, it shall file with the Customs directly under the General
Administration of Customs for record within 5 workdays as of the date of change.

In the case of changes other than those as prescribed in the preceding paragraph, the enterprise shall, in accordance with the relevant
provisions of laws and administrative regulations, report to the competent Customs in the park and go through the relevant formalities.

Article 15

The Customs shall implement the electronic account book supervision system and the computer network management system with respect
to the enterprises in the park.

The administrative organ of the park or the operating entity thereof shall, under the guidance of the Customs, establish a computerized
public information platform by the virtue of the Electronic Port for the purpose of electronic data exchange and information sharing
between the Customs, enterprises in the park, and other relevant departments.

Enterprises in the park shall establish a computerized management system in compliance with the requirements of Customs supervision,
provide the Customs with terminals to consult data, and network with the Customs in light of the ways of certification and data standard
as prescribed by the Customs.

Article 16

Enterprises in the park shall, in accordance with the Accounting Law of the People’s Republic of China and the provisions of the relevant
laws and administrative regulations, regulate accounting management, maintain account books and compile statements and reports, which
meet the requirements of Customs supervision, and keep record of their financial situation as well as such information as the stock,
conveyance, transfer, sale, simple processing, and utilization of goods and articles transported in or out of the park, faithfully
fill out the relevant documentations, account books, and keep accounts and make business accounting based on the legal and valid
vouchers

Enterprises in the park shall compile reports on the import, export, transfer and storage of goods on monthly basis and the annual
financial statements, and regularly report them to the competent Customs in the park.

Chapter III Customs Supervision over Goods Entering and Exiting the Park

Section I Supervision over Goods Transported between the Park Areas and Foreign Countries

Article 17

The Customs shall implement archival filing management as to the goods transported between the park and foreign countries, except
the tax-free import goods for the self use of the park, goods in international transit or goods concerning which other laws or administrative
regulations prescribes otherwise. After overseas goods have reached the ports, enterprises in the park (or agents thereof) may transport
the goods directly to the park upon the strength of the manifest of cargo, and then go through declaration formalities with the competent
Customs in the park upon the strength of the archival filing checklists of goods that enter into the territory of China.

Article 18

Goods transported between the park and foreign countries shall be declared with the competent Customs in the park. If the entry and
exit ports of the goods in the park are not situated within the area under the jurisdiction of the competent Customs of the park,
the declaration formalities may be gone through with the Customs in the ports upon the approval of the competent Customs in the park.

Article 19

If such international transit businesses as the transport of the full container load in and out, and groupage for the second time,
are carried out in the park, the enterprise that carries out such businesses shall send electronic data of the manifest of cargo
to the Customs, and the enterprise concerned in the park shall apply for delivery and consolidation to the competent Customs in the
park, and go through the Customs declaration formalities for entry and exit of goods upon the strength of the manifest of cargo,
and other documents.

Article 20

Goods shipped to foreign countries from the park are exempt from export tax, except as otherwise prescribed by any other laws or administrative
regulations.

Article 21

The Customs shall handle the tax exemption formalities for the following goods and articles that are transported into the park from
overseas:

Equipment and materials as are needed for the construction projects of infrastructure in the park;

Machines, loading and unloading equipment, warehouse facilities, management facilities as are needed for the enterprises in the park
to carry out business, and the consumables, components and parts, and tools for their maintenance; and

Reasonable amount of office supplies for the self use of the administrative organ of the park and the operating entity thereof, and
enterprises in the park.

Article 22

The Customs houses shall handle the formalities concerning protective tariff for the following goods that are transported into the
park from overseas:

Goods and packing materials thereof as are needed for the enterprises in the park to carry out business;

Goods imported under processing trade;

Goods in transit trade;

Goods preserved temporarily for foreign businessmen;

Materials and components and parts for the maintenance of the ocean-going vessels and international aircrafts;

Import consignment;

Goods entered for testing and maintenance, and the components and parts thereof;

Exhibits and samples for order by sample;

General trade goods whose Customs clearance formalities have not been gone through; and

10.

Other entry goods as approved by the Customs.

Article 23

The administrative organ of the park and the operating entity thereof, and enterprises in the park shall, in accordance with the relevant
provisions on goods import under general trade, go through declaration formalities for the means of transport and living consumption
goods imported by them for self use from overseas.

Article 24

Goods transported between the park and foreign countries are not subject to the import and export licensing administration, except
as otherwise prescribed by laws, administrative regulations and rules.

Section II Supervision over Goods Transported between the Park and the Areas beyond the Park

Article 25

For goods transported between the park and the areas beyond the park, the enterprise in the park or the consignor or consignee (or
agents thereof) the areas beyond the park shall go through declaration formalities with the competent Customs in the park.

Where an enterprise in the park engages in the import and export trade in the area beyond the park and goods are not transported into
and out of the park in fact, it may go through declaration formalities with the competent Customs at the locality of the consignor
or the consignee or with the Customs at the port of the actual entry and exit of the goods.

Article 26

Shipment of goods from the park to the area beyond the park shall be regarded as import, the enterprise in the park or the consignee
(or agents thereof) in area beyond the park shall lodge declaration with the competent Customs in the park according to the relevant
provisions concerning import goods, and the Customs shall handle the formalities in light of the actual ways of supervision when
the goods are transported out of the park.

Article 27

Where an enterprise in the park distributes goods by crossing the Customs jurisdiction or an enterprise from other areas takes delivery
of goods in the park by crossing the Customs jurisdiction, it may go through declaration formalities with the competent Customs in
the park or import transit formalities according to the Customs provisions.

Article 28

Except the goods that may not be declared collectively as prescribed by laws, administrative regulations or rules, where an enterprise
in the park imports or exports goods in small quantity and by multi-batch, it may go through declaration formalities collectively
upon approval of the competent Customs in the park, and apply the tariff rate and exchange rate applicable on the day when the Customs
accepts the declaration for each importation and exportation of the goods. The time limit for collective declaration may neither
exceed one month nor straddle over year.

Article 29

Shipment of goods from the areas beyond the park into the park shall be regarded as export, and the declaration formalities shall
be gone through with the competent Customs in the park by the enterprises in the park or the consigners (or agents thereof) in the
areas beyond the park. For the commodities subject to export tax, the Customs shall levy export tax according to the relevant provisions;
for the commodities subject to licensing administration, the effective export licenses shall be presented to the Customs at the same
time, unless it is otherwise prescribed by other laws, administrative regulations or rules that the export licenses shall be submitted
at the link of export declaration.

The formalities for issuing the certification page of the declaration form of export goods for handling export tax refund shall be
handled according to the following applicable provisions:

For home-made goods and packing materials thereof transported into the park from the areas beyond the park for enterprises in the
park to carry out business, the enterprises in the park or the consigners (or agents thereof) in the areas beyond the park shall
fill out the Customs declaration form for export goods, and the Customs shall handle it according to the relevant provisions on export
goods, and issue the certification page of the declaration form of export goods. If the goods are exported in transit, the Customs
in the place of consignment shall issue the certification page of the declaration form of export goods after receiving the electronic
return receipt of the competent Customs in the park confirming that the goods in transit have transported into the park;

For the home-made materials for capital construction, machines, loading and unloading equipment, and management facilities, etc. that
are transported into the park from the areas beyond the park for the use of the administrative organ of the park and the operating
entity thereof and enterprises in the park, the Customs shall handle them according to the relevant provisions on export goods, and
issue the certification page of the declaration form of export goods;

For the living consumption goods, office supplies, and means of transport that are transported into the park from the areas beyond
the park for the use of the administrative organ of the park and the operating entity thereof and enterprises in the park, the Customs
shall not issue the certification page of the declaration form of export goods;

For the original import goods, packing materials, equipment, and capital construction materials that are transported into the park
from the areas beyond the park, enterprises in the areas beyond the park shall present the lists of the aforesaid goods or articles
to the Customs, and go through declaration formalities according to the relevant provisions on export goods, and the Customs houses
shall not issue the certification page of the declaration form of export goods, and the duties, import value added tax and consumption
tax that have been paid shall not be refunded.

Article 30

Where tax exemption is involved in any goods transported from the park to the areas beyond the park, the Customs shall handle tax
exemption according to the relevant provisions on import goods exempt from tax.

Article 31

Upon approval of the competent Customs in the park, enterprises in the park may lay out merchandises at the special exhibition places
of the comprehensive office areas in the park. The exhibits shall be put on record with the competent Customs in the park, and under
the supervision of the Customs.

Where an enterprise in the park lays out merchandises in other places outside the park, the Customs houses shall handle the relevant
formalities in light of the administrative provisions of the Customs on temporary import of goods.

Article 32

If it is necessary to transport out of the park the machines, equipment and office supplies for the use of the administrative organ
of the park and the operating entity thereof and enterprises in the park for testing and maintenance, the said organs and enterprises
shall file an application to the competent Customs houses in the park, and the goods may be transported out of the park upon approval
of and registration with the competent Customs in the park.

Article 33

Machines, equipment, and office supplies that are transported out of the park for testing and maintenance may not be kept in the areas
beyond the park for use, and shall be transported back to the park within 60 days from the day when they are transported out. If
they cannot be transported back as required due to special circumstances, the administrative organ of the park areas and the operating
entity thereof and the enterprise concerned in the park shall apply in writing for extension of time limit to the competent Customs
in the park within 10 days before expiry of time limit, and the period of extension may not exceed 30 days.

Article 34

Machines and equipment that are transported back to the park after completion of testing and maintenance shall be the originals. If
any parts and components or accessories are replaced, the original parts and components or accessories shall be transported back
to the park along with the machines and equipment.

For home-made parts and components or accessories replaced in the areas beyond the park, if it is necessary to refund tax, enterprises
in the park or in the areas beyond the park shall file an application in this regard, and the competent Customs in the park shall
handle it according to the relevant provisions on export goods, and issue the certification page of the declaration form of export
goods.

Article 35

If it is necessary to return any goods originally imported into the areas beyond the park out of China or to re-transport any originally
exported goods back to China, the goods may not be transported into or out of China by crossing the park or transported into the
park for storage.

If the goods originally imported into the areas beyond the park that is replaced under the provisions on goods imported at zero cost
for replacement purposes are kept in the areas beyond the park and not shipped out of China, they may not be transported into the
park areas.

Section III Supervision over Goods within the Park

Article 36

Goods in the park may be circulated freely. When transferring or conveying goods, enterprises in the park shall, by electronic means,
file such matters as the name of the goods, quantity, and amount with the Customs for record, and shall go through formalities for
verification after the goods are transferred or conveyed.

Article 37

No enterprise in the park may make mortgage, pledge, lien on the goods in stock, nor may it appropriate the goods for other purposes,
or make other disposal without approval of the competent Customs in the park.

The provisions of the preceding paragraph of this Article shall be applicable to the tax-free goods and articles that are transported
into the park under the provisions of Article 21 of these Measures.

Article 38

Enterprises in the park may perform circulative simple processing and value-added services on the goods stored therein, including
grading and classification, dismantling and sorting out, separate packing, measuring, combination packaging, fixing films, adding
shipping marks, mark labeling, changing package, and assembling, and other auxiliary operations that lead to increase in commercial
value.

Article 39

An enterprise that applies for engaging in maintenance business within the park shall have the qualification of a legal entity, and
shall be registered and filed for record with the competent Customs in the park. The products and the components and parts thereof
under the maintenance of enterprises in the park shall come only from foreign countries, and the products after testing and maintenance,
the replaced components and parts, as well as the materials produced during the process of maintenance shall be shipped out of China.

Article 40

From the day of carrying out business, enterprises in the park shall go through formalities for reporting for verification with the
competent Customs in the park each year. The competent Customs in the park shall verify the inventory within 30 days as of the date
of receipt of the application for reporting for verification. The relevant account books and original data of the enterprises shall
be preserved for at least 3 years from the day when the inventory verification is completed.

Article 41

When domestic export goods transported into the park for which tax refund formalities have not been gone through, need to be returned
to the export enterprises due to the reason of quality or specifications, the enterprise concerned in the park shall, within one
year from the day when the goods are declared to be transported into the park, file an application to the competent Customs in the
park , and provide the certificate issued by the competent tax authority at the locality of the export enterprise, certifying the
export tax refund has not been handled. After the competent Customs in the park grants approval for it, the enterprise may go through
the formalities for returning the goods without paying export tax, import value-added tax and consumption tax. If the Customs have
collected export tax, the export tax collected shall be refunded. If the goods are transported into the park areas by way of transit,
the competent Customs in the park shall handle the relevant formalities after the enterprise in the park has presented the form of
contact for returning the goods issued by the Customs at the place of consignment.

In case any entry goods that have not undergone circulative simple processing need to be shipped out of China in their original status,
the enterprise in the park may apply for going through returning formalities to the competent Customs in the park.

In case there is necessity to return any goods that have gone through export tax refund formality or have been subject to circulating
simple processing (including entry goods), the Customs formalities shall be handled in light of the relevant provisions on import
and export goods.

Article 42

Apart from the goods that have undergone circulative simple processing, if it is necessary to return any goods that enter into the
park from the areas beyond the park to the export enterprises for replacement in their original status due to inconformity of quality,
specifications, and types with the contract, or other reasons, the enterprise in the park shall, within one year from the day when
the goods are declared to be transported into the park, go through formalities for returning the goods for replacement with the competent
Customs in the park. The Customs shall handle the formalities according to the relevant provisions of the Measures of the Customs
of the People’s Republic of China for the Administration of Tax Collection on Import and Export Goods.

In case the replacements are transported into the park, they may be exempt from export license and export tax, but the Customs shall
not issue the certification page of the declaration form of export goods.

Article 43

Where an enterprise in the park needs to carry out the business of storage of dangerous chemicals and flammables and explosives, it
shall obtain the administrative licenses from the relevant departments of work safety, fire control, and environmental protection,
etc., and report to the competent Customs in the park for record. The relevant storage tanks, devices, equipment and other facilities
shall comply with the requirements of Customs supervision.

Goods that are transported into and out of the park through pipelines shall be equipped with measuring and testing devices, and other
facilities and equipment for the convenience of Customs supervision.

Article 44

Enterprises in the park may apply for abandoning the goods other than those which may not be abandoned by declaration as prescribed
by laws or administrative regulations.

The goods abandoned shall be extracted and sold off by the competent Customs in the park according to law, the income from the sale
shall be disposed of by the Customs in light of the relevant provisions. After the goods are sold off according to law, the enterprises
shall go through the verification formalities upon the strength of the application for abandoning this batch of goods and the relevant
documents concerning extraction and selling of the goods by the competent Customs. Where the goods can not be sold off because they
have no use value, the enterprises may dispose of them by themselves, and the competent Customs in the park may handle the verification
formalities directly. The warehouse fees and other fees as are needed before extraction and selling of the goods by the Customs shall
be borne by the enterprises themselves.

For the goods abandoned that shall be destroyed as required, the enterprises shall be responsible for destroying them, and the competent
Customs in the park may dispatch officers to make supervision. The competent Customs in the park shall handle the formalities of
cancellation after verification upon the strength of the certificates issued by competent departments.

Article 45

In case the goods in the park are damaged, destroyed or lost due to force majeure, enterprises in the park shall immediately report
it in writing to the competent Customs in the park, explain the reasons for it, and provide the relevant proofs of the insurance
and disaster identification departments. After the said proofs are recognized by the competent Customs in the park, such goods shall
be handled according to the following applicable provisions:

If the goods are lost or are not lost but have lost use value completely, the Customs shall handle formalities for verification and
tax exemption;

If the entry goods are damaged or destroyed, and lose their original use value but may be reused, enterprises in the park may go through
formalities for returning these goods with the competent Customs in the park. If the goods are not to be returned out of China and
are required to be transported to the areas beyond the park, enterprises in the park may file an application to the competent Customs
in the park, and the goods shall be transported out of the park after the competent Customs in the park has granted approval to the
application, and made assessment and tax collection on the use value of the goods that suffer disaster,

If the goods that are transported into the park from the area beyond the park are damaged or destroyed, lose their original use value
but may be reused, and there is necessity to replace them or return them to the export enterprises, they may be replaced by the goods
of which the name, specification, quantity, and price are the same as those of the original goods, and the enterprises in the park
shall go through returning formalities with the competent Customs in the park.

Where the goods need to be returned to the areas beyond the park, and the export tax refund formalities have not been handled for
them, the enterprises in the park may go through the returning formalities with the competent Customs in the park; if the export
tax refund formalities have been gone through, the goods shall be handled in light of the relevant provisions on transporting the
entry goods to the areas beyond the park as prescribed in item (2) of this Article.

Article 46

In case goods are damaged, destroyed, or lost due to inappropriate storage and factors other than force majeure, they shall be handled
according to the following applicable provisions:

For the goods transported into the park from foreign countries, the enterprises in the park shall, according to the provisions on
goods imported under general trade, and on the basis of the tax rate and exchange rate applicable on the day when the Customs accepts
the declaration at the time when the goods are transported into the park, pay duties, import value-added tax, and consumption tax
according to law to the Customs on the original value of the goods that are damaged or lost; and

For the goods that are transported into the park from the areas beyond the park, the enterprises in the park shall repay the re

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:

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).

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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)

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

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

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

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

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

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

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

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

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

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

Solar energy lighting system

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

Commercialization

Solar energy vehicle

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

Technology research and development, project model

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:

Warehouse Receipt of Export Supervised Warehouse

Delivery Bill of Export Supervised Warehouse

Annex 1

Warehouse Receipt of Export Supervised Warehouse

Warehouse No.

Receipt No.

Warehouse Name						Deceleration Form No.
Sequence No.	Commodity Code	Name and Specification	Quantity	Unit	Gross Weight/ Net Weight	Currency	Unit price	Total Price

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