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

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.

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.

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.

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.

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

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.

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

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.

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

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

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

Student Visas

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

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

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

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

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

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

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

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