Facebook
Home Supreme Court Criticisms

Supreme Court Criticisms

MEASURES FOR THE CLASSIFIED ADMINISTRATION OF ENTERPRISES MANUFACTURING EXPORT INDUSTRIAL PRODUCTS

The General Administration of Quality Supervision, Inspection and Quarantine

Decree of the General Administration of Quality Supervision, Inspection and Quarantine

No. 51

The Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products was adopted upon discussion
at the executive meeting of the General Administration of Quality Supervision, Inspection and Quarantine on June 19, 2003 and are
hereby promulgated. They shall come into force on October 1, 2003.

Li Changjiang, Minister

July 18, 2003

Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products

Chapter I General Provisions

Article 1

The Measures are formulated according to provisions stipulated in the Law of the People’s Republic of China on Import and Export Commodity
Inspection (hereinafter referred to as the Law of Commodity Inspection) and in its Regulations for Implementation, and for the purpose
of facilitating foreign trade, encouraging enterprises manufacturing export industrial products to improve their management level
and product quality, and of standardizing inspection and administration activities thereof.

Article 2

The Measures shall apply to the inspection, supervision and administration of enterprises manufacturing those export industrial products
as listed in the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Import and Export Inspection
and Quarantine Authorities.

The Measures shall not apply to administration of enterprises manufacturing dangerous products and package thereof, products with
unsteady quality or products that need to be transported in bulk.

Article 3

The term “classified administration” in the Measures refers to an inspection administration method through which different inspection
supervision and management modes be applied to different enterprises manufacturing export industrial products, according to their
manufacturing conditions, management level, inspecting efficiency, product quality and the product risk degree and with a view to
reaching the goal of scientific management and effective supervision, and to promoting the export industry of China.

Article 4

General Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the AQSIQ) shall be responsible
for the unified management of classified administration of enterprises manufacturing export industrial products across the country.

Local entry-exit inspection and quarantine bureaus established by and directly under the General Administration of Quality Supervision,
Inspection and Quarantine (hereinafter referred to as the inspection and quarantine bureaus directly under the AQSIQ) shall be responsible
for the supervision and management of classified administration of enterprises manufacturing export industrial products within areas
under their jurisdiction.

Local entry-exit inspection and quarantine authorities established by the General Administration of Quality Supervision, Inspection
and Quarantine (hereinafter referred to as the inspection and quarantine authorities) shall be responsible for the application acceptance,
examination and daily inspection, supervision and management of the classified administration of enterprises manufacturing export
industrial products within areas under their jurisdiction.

Article 5

The inspection and quarantine authorities shall classify enterprises manufacturing export industrial products into three classes,
the first class, the second class and the third class, according to relevant regulations and shall exercise corresponding inspection
supervision and management.

Chapter II Enterprise Classification

Article 6

The first-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and to other relevant rules stipulated
by the AQSIQ;

(2)

It has sound quality management system, and has passed the ISO 9000 Quality Management System Certification or is equally competent
to effectively guarantee the product quality;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume with steady product quality;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality type of test by a designated laboratory according to
rules stipulated by the AQSIQ, and it must pass such a type of test;

(6)

It has established relevant export inspection systems and bodies, and has sound testing equipments and competent checkers who have
received relevant training and been registered by the inspection and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is no lower than 98%;

(8)

The enterprise has a high reputation for its good product quality, and no rejected goods, counterclaim or other accidents for the
sake of product quality has occurred within the recent two years.

Article 7

The second-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and other relevant rules stipulated by
the AQSIQ;

(2)

It has sound and effective quality management system;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality test by a designated laboratory according to rules stipulated
by the AQSIQ, they shall pass such type of test;

(6)

It has necessary testing equipments and competent checkers who have received relevant training and been registered by the inspection
and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is not less than 95%;

(8)

The products have good quality, and no rejected goods, counterclaim or other accidents due to the quality of the products occurred
within the late one year.

Article 8

Those enterprises which have not been listed into the first or second class, and which have engaged in export manufacture for less
than one year shall be classified as third-class enterprises.

Article 9

Export products manufactured by one enterprise but fall into different types or subject to different technical requirements may be
classified into different classes and be controlled respectively according to differences between their manufacturing conditions
and product quality.

Chapter III Application and Examination

Article 10

The enterprise manufacturing export industrial products which apply for the first or second class enterprise (hereinafter referred
to as the application enterprise) shall apply to the inspection and quarantine authority at its locality, and shall submit the following
materials:

(1)

a written application which includes the class to be applied, the name of the enterprise, the specification and type of the export
products, etc;

(2)

the qualified certificate of safety and quality test conducted according to rules stipulated by the AQSIQ;

(3)

certificates for quality management system certification and documents of quality management system;

(4)

certificates for the pass rate of yearly block inspection of the previous year produced by the inspection and quarantine authority
at its locality;

(5)

other relevant certificates if the enterprise and its export products are subject to Safety License System or Compulsory Product Certification
System.

Article 11

The inspection and quarantine authority shall organize examination to the application enterprise without undue delay.

The first-class-enterprise application shall be subject to the examination of the inspection and quarantine bureau directly under
the AQSIQ. If the applicant is qualified, the bureau shall report to the AQSIQ its initial examination conclusion and relevant materials.
The second-class-enterprise application shall be subject to the examination of the inspection and quarantine authority at its locality.
If the applicant is qualified, the authority shall report its initial examination conclusion and relevant materials to the inspection
and quarantine bureau directly under the AQSIQ.

Article 12

The inspection and quarantine authority shall, sticking to the relevant requirements and in light of the actual local situation, conduct
examination to the applicant’s product quality, quality management system, personnel, manufacturing and testing equipment and so
on.

The inspection and quarantine authority shall not conduct overlapped test or examination to any item of one enterprise during a same
year.

Article 13

the AQSIQ shall review the qualified first-class application and publicize the list of final approved enterprises.

The inspection and quarantine bureau directly under the AQSIQ shall review the qualified second-class applications and publicize the
list of final approved enterprises.

Chapter IV Inspection Supervision and Management

Article 14

The inspection and quarantine authority shall conduct random block inspection or inspection for each batch of industrial products
to be exported and manufactured by enterprises subject to classified administration according to their different classes.

(1)

The first-class enterprises: yearly random block inspection rate shall be 5% to 15%;

(2)

The second-class enterprises: yearly random block inspection rate shall be 30% to 45%;

(3)

The third-class enterprises: yearly random block inspection rate shall be 60% to 100%.

Article 15

The inspection and quarantine authorities shall have strict control on the yearly random block inspection rate, and shall work out
a suitable inspection supervision and management plan and keep relevant inspection records.

Article 16

The inspection and quarantine authority may, according to the actual circumstances, degrade an enterprise subject to classified administration
to a lower class if the enterprise commits any of the following wrongdoings:

(1)

the pass rate of yearly block inspection by the inspection and quarantine authority does not meet the requirements;

(2)

a foreign counterclaim arises due to serious quality problem;

(3)

unqualified products are incessantly found in the random inspections by the inspection and quarantine authority;

(4)

the enterprise’s checker makes false statements in the inspection;

(5)

other wrongdoings violating laws and regulations.

The degraded enterprise shall not apply for recovering its former class until 6 months later, and the application must be subject
to examination, review and publicity again.

Article 17

The enterprise manufacturing export industrial products subject to the classified administration shall submit its product quality
control and analysis report to the inspection and quarantine authority each year.

Article 18

The inspection and quarantine authority may choose different inspection supervision and management mode and apply it to the enterprise
manufacturing industrial products to supervise its product quality before they are marketed, according to the enterprise’s class,
the nature and risk degree of its products and in terms of relevant provisions.

Article 19

The period of validity of the classified administration to the enterprises manufacturing industrial products is two years, which shall
be counted as of the day of publication by the inspection and quarantine authority. If an enterprise wishes to continue the classified
administration, it shall, in terms of provisions in Article 10 of the Measures, go through the application procedure again 60 days
before the period of validity expires.

Article 20

As for the enterprise reapplying for classified administration, the inspection and quarantine authority shall streamline examination
procedures upon consideration of the ordinary supervision and management results, and if the enterprise is qualified, the authority
shall publicize the case after review and approval.

Article 21

If any important change occurs to the product designs, manufacturing techniques, technical conditions, and so on, of the enterprise
manufacturing export industrial products, the enterprise shall report it without delay to the inspection and quarantine authority,
and the authority shall newly recognize its class.

Chapter V Supplementary Provisions

Article 22

The inspection and quarantine bureaus directly under the AQSIQ shall formulate the implementation regulations for the Measures, according
to principles stipulated in the Measures and taking the actual local situations of their own areas into consideration, and shall
exercise the regulations after reporting it to the AQSIQ for record.

Article 23

The inspection and quarantine authority shall carry out annual reviews on the classified administration activities, and the inspection
and quarantine bureaus directly under the AQSIQ shall collect relevant materials and report them to the AQSIQ before the end of February
of the next year.

Article 24

The right to interpret the Measures shall remain with the AQSIQ.

Article 25

The Measures shall come into force on October 1, 2003.



 
The General Administration of Quality Supervision, Inspection and Quarantine
2003-07-18

 






PROVISIONS ON THE MANAGEMENT OF GREEN PASSAGEWAY SYSTEM FOR INSPECTION AND QUARANTINE OF EXPORT GOODS

The State Administration of Quality Supervision, Inspection and Quarantine

Decree of the State Administration of Quality Supervision, Inspection and Quarantine

No.50

Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods, which have been examined and
adopted at the executive meeting of the State Administration of Quality Supervision, Inspection and Quarantine on June 19th 2003,
are hereby promulgated and shall come into force since promulgation.

Director Li Changjiang

July 18, 2003

Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods

Chapter I General Provisions

Article 1

With a view to speeding up the customs clearance process, facilitating the customs release of export goods and promoting export, the
Provisions are formulated in accordance with the Law of the People’s Republic of China on Import and Export Commodity Inspection
and the implementation rules thereof.

Article 2

The term “green passageway system for inspection and quarantine” (hereinafter referred to as the green passageway system) in the Provisions
refers to the release management pattern of granting inspection and quarantine certificate at the production area with exemption
for inspections by the port inspection and quarantine authority for the qualified export goods of the production and operation enterprises
that have good credit rating, sound and stable product quality guarantee system and relatively large export scale, upon the examination
and approval by the State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ).
The principle of voluntary application by enterprises shall be adopted in the application of the green passageway system.

Article 3

The SAQSIQ shall take charge of supervision and administration of the nation-wide green passageway system for export goods and implement
verification and approval of the enterprises to be covered by the green passageway system. Local administrations of exit-entry inspection
and quarantine directly under the SAQSIQ (hereinafter referred to as the administrations of inspection and quarantine directly under
SAQSIQ) shall be in charge of the examination, supervision and administration of the enterprises to be covered by the green passageway
system within their respective jurisdictions. Local institutions in charge of exit-entry inspection and quarantine established by
the SAQSIQ (hereinafter referred to as the inspection and quarantine institutions) shall be responsible for acceptance of applications,
preliminary examination and regular administration of the enterprises to be covered by the green passageway system within their respective
jurisdictions.

Article 4

The SAQSIQ shall determine and adjust the scope of export goods to which the green passageway system are applied, in accordance with
the real situation of inspection and quarantine for export goods as well as the implementation outcome of the green passageway system.
The green passageway system shall not apply to the bulk goods or goods that are quality-unstable or liable to deterioration or require
replacement of the inspection and quarantine certificate at the port.

Chapter II Enterprise Qualification

Article 5

A enterprise applying for coverage of the green passageway system shall meet the following conditions:

(1)

having good reputation and sound credit rating, with the annual export volume exceeding USD5,000,000;

(2)

having implemented the ISO9000 quality management system and obtained the certificate of eligibility in assessment and examination
of the production enterprise quality system issued by the relevant organ;

(3)

having long-term stable quality for the export goods and have not been involved in quality-based compensation claim or dispute with
the import country within the recent two years;

(4)

having no improper inspection applications within a year and having no record of administrative sanctions by the inspection and quarantine
institutions within two years;

(5)

belonging to the first-grade or second-grade enterprises if classified administration of production enterprises is applied pursuant
to the relevant provisions of SAQSIQ￿￿

(6)

having obtained registration for marks of production area where it is required by any law, regulation, or bilateral agreement for
the use of marks for the production area;

(7)

other conditions stipulated by the SAQSIQ.

Article 6

The applicant enterprise should make the following commitment:

(1)

complying with the laws and regulations on exit-entry inspection and quarantine and the Provisions on the Application for Exit-Entry
Inspection and Quarantine;

(2)

adopting e-application;

(3)

ensuring conformity between the export goods and their certificates, the eligibility of batch numbers and complete marks￿￿keeping
the sealing intact if sealing is adopted;

(4)

conducting no such illegal activities as replacing or stealthily substituting goods when the export goods are carried to the port
after having obtained the inspection and quarantine certificate from the inspection and quarantine institutions;

(5)

voluntarily accepting the supervision and administration by the inspection and quarantine institutions.

Article 7

Enterprises applying for the adoption of the green passageway system shall ask for and fill in the Application Form for Adoption of
the Green Passageway System (see attachment) and at the same time, submit the Certificate of ISO9000 Quality Management System Accreditation
(photocopy) as well as other relevant documents.

Chapter III Examination and Approval

Article 8

The inspection and quarantine institutions in charge of application acceptance shall complete the preliminary examination in accordance
with the provisions as follows:

(1)

examining the application documents;

(2)

verifying and investigating the facts about the enterprise’s quality guarantee system and the quality of its export goods and whether
it has improperly applied for inspection or other acts in violation of the provisions on inspection and quarantine￿￿and

(3)

proposing the opinion on preliminary examination and submitting it to the superior administration of inspection and quarantine directly
under SAQSIQ.

Article 9

The administration of inspection and quarantine directly under SAQSIQ shall review the preliminary examination opinion and report
the list of qualified enterprises and the relevant documents to the SAQSIQ.

Article 10

The SAQSIQ shall give approval to the enterprises meeting the relevant requirements of the green passageway system. The approved list
of enterprises to be covered by the green passageway system shall be made public by the SAQSIQ.

Chapter IV Inspection and Quarantine at Production Area

Article 11

For those in conformity with the following provisions, the inspection and quarantine institutions at the production area shall conduct
the acceptance of inspection applications by referring to the green passageway system.

(1)

For self-operating export enterprises covered by the green passageway system, the applicant entity for inspection, the consigner and
the production enterprise shall be the same￿￿

(2)

For operating enterprises covered by the green passageway system, the applicant entity for inspection and the consigner shall be the
same, and the export goods operated shall be produced by the production enterprises covered by the green passageway system.

Article 12

For the export enterprises approved to adopt the green passageway system, the inspection and quarantine institutions where the enterprises
are located shall confirm their qualification for coverage of the green passageway system in the sub-system for inspection application
of the CIQ2000 System.

Article 13

The workers of the inspection and quarantine institutions shall conduct examination in strict compliance with the requirements of
the green passageway system when accepting the e-inspection applications of the enterprises covered by the green passageway system.
For those failing to meet the relevant requirements, reasons should be given in the return receipt for inspection application

Article 14

If any enterprise failing to meet the requirements for the green passageway system coverage are found during the inspection process,
the personnel of the inspection and quarantine institutions shall write the words “failing to meet the requirements for green passageway
system coverage” in the column of inspection and quarantine opinion of the Flow Diagram for Inspection and Quarantine or the relevant
inspection and quarantine records.

Article 15

The inspection and quarantine institutions at the production area shall strengthen the examination of the inspection application documents
and the inspection & quarantine documents for export goods covered by the green passageway system, and e-transmit the qualified documents
to the port inspection and quarantine institutions to form the customs clearance data. During the transmission of documents, the
specified code of the port of customs declaration should be input and the Certificate of Document Transmission issued.

Chapter V Port Examination and Release

Article 16

The port inspection and quarantine institutions should establish service windows for enterprises adopting the green passageway system.

Article 17

For export goods of the enterprises covered by the green passageway system, the port inspection and quarantine institutions shall
enter the subsystem for inspection application of the CIQ2000 System and launch the green passageway function.

Article 18

For enterprises adopting the green passageway system, the port inspection and quarantine institutions shall conduct stringent examination
over the information concerning the green passageway system in the e-document transmission date. If no problems are found in the
examination, the Notice of Customs Clearance For Outward Goods will be issued directly without inspections.

If the enterprises covered by the green passageway system alter the declaration contents at the port, the port inspection and quarantine
institutions shall not refer to the green passageway system for release.

Chapter VI Supervision and Administration

Article 19

The inspection and quarantine institutions at the production area shall establish the management files for, and strengthen the management
over enterprises covered by the green passageway system.

Article 20

Upon discovering non-conformance to the self-discipline commitment of the enterprise covered by the green passageway system or other
acts in violation of the provisions, the port inspection and quarantine institution shall make a report in good time to the administration
of inspection and quarantine directly under SAQSIQ where the port is located.

After verification, the administration of inspection and quarantine directly under SAQSIQ where the port is located shall notify the
administration of inspection and quarantine directly under SAQSIQ at the production area. The latter shall suspend the adoption the
green passageway system for the enterprise and submit to the SAQSIQ the opinion on canceling the coverage of the green passageway
system for the enterprise. After confirmation, the SAQSIQ shall disqualify the enterprise from adopting the green passageway system.

Article 21

The Inspection and quarantine institutions at the port and the production area shall make statistical reports on the implementation
of the green passageway system on a regular basis and establish the mutual notification system.

Chapter VII Supplementary Provisions

Article 22

The right to interpret the Provisions shall remain with the State Administration of Quality supervision, Inspection and Quarantine.

Article 23

The Provisions shall come into force as of the date of its promulgation.



 
The State Administration of Quality Supervision, Inspection and Quarantine
2003-07-18

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGES ON THE MANAGEMENT OF COLLECTION AND SALES OF NON-TRADE FOREIGN EXCHANGES OF TRANSNATIONAL COMPANIES (TRIAL IMPLEMENTATION)

20040801

The State Administration of Foreign Exchanges

Circular of the State Administration of Foreign Exchanges on the Management of Collection and Sales of Non-trade Foreign Exchanges
of Transnational Companies (Trial Implementation)

HuiFa [2003] No.87

July 30, 2003

Bureaus and departments of state administration of foreign exchanges of the provinces, autonomous regions and municipalities directly
under the Central Government, branches of the Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, as well as designated banks of foreign
exchanges:

In order to perfect the management of the collection and sales of non-trade foreign exchanges, improve the operation environment of
enterprises and promote the development of foreign-related economy, the SAFE has through broad survey and thorough investigation
formulated the policies for the management of collection and payment of foreign exchanges for the transnational companies and their
domestic affiliated companies relating to overseas payment of the non-trade expenses that have been paid by overseas headquarters
or overseas affiliated companies in advance or duly distributed, and decided to try for adoption in Beijing, Shanghai and Shenzhen.
The SAFE will timely summarize the experiences and clarify the relevant policies around the country. Here is to notify you of the
following issues concerned:

I.

The transnational companies herein refer to the foreign-invested transnational companies that have established foreign-invested enterprises
of investment in the territory of China with approval by the foreign economic and trade administration, and the Chinese-invested
group companies eligible for foreign-related operations with approval by the relevant competent administration.

II.

The domestic affiliated companies of transnational companies herein include: branches set up by foreign-invested transnational companies
and the foreign-invested enterprises with share participation and share holding by foreign-invested transnational companies; branches
and foreign-invested enterprises with share participation and share holding set up by their overseas headquarters or overseas affiliated
companies in China that are entrusted for their management; and branches and enterprises with share participation and share holding
set up in China by Chinese-invested group companies, which are enpost_titled to foreign-related operations.

III.

The overseas affiliated companies of transnational companies herein include: branches and the foreign-invested enterprises with share
participation and share holding set up by the overseas headquarters of the foreign-invested transnational companies in nations and
regions (including Hong Kong, Macao and Taiwan) other than China; branches and foreign-invested enterprises with share participation
and share holding set up by in the nations and regions other than China by Chinese-invested group companies.

IV.

In case transnational companies and their domestic affiliated companies pay overseas the salaries, benefits and allowance for foreign
and Hong Kong and Macao employees or employees of Chinese nationality but owing permanent overseas residential rights (hereinafter
referred to as foreign employees) that have been paid by overseas headquarters or overseas affiliated companies, or remit overseas
the salaries, benefits and allowance for foreign employees, the overseas payment notices, ID certification of foreign employees such
as passports, and employment certification such as labor contracts, and tax certification and other evidential materials may be held
for payment from the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign
exchanges.

V.

In case transnational companies and their domestic affiliated companies pay overseas the insurance premiums of social, medical and
pension insurance for foreign employees that have been paid by overseas headquarters or overseas affiliated companies in advance,
or remit such premiums directly, the overseas payment notices, ID certification of foreign employees such as passports, and employment
certification such as labor contracts, and tax certification and other evidential materials may be held for payment from the foreign
exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

VI.

In case the transnational companies and their domestic affiliated companies pay overseas the overseas travel expenses and overseas
training fees for foreign employees that have been paid by overseas headquarters or overseas affiliated companies in advance, or
remit such premiums directly, the overseas payment notices, ID certification of foreign employees such as passports, and employment
certification such as labor contracts, and tax certification and other evidential materials may be held for payment from the foreign
exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

VII.

In case the transnational companies and their domestic affiliated companies pay overseas the distributed overseas patent use fees,
franchising fees, fees for technological introduction, the agreement on expense distribution, overseas payment notices, valid registration
certification and taxation certification and the relevant materials verified and issued by the intellectual property administration
or the foreign economic and trade administration may be held for payment from the foreign exchange accounts or purchase of foreign
exchanges with Renminbi at the designated banks of foreign exchanges.

VIII.

In case the transnational companies and their domestic affiliated companies pay overseas the distributed overhead, the agreement on
expense distribution, overseas payment notices and taxation certification and the relevant materials may be held for payment from
the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

IX.

In case the transnational companies and their domestic affiliated companies pay overseas other overseas expenses that have been distributed
or paid by overseas headquarters or overseas affiliated companies in advance, the overseas payment notices, the original documents
of the relevant expenses and other relevant evidential materials, as well as tax certification if required for payment of tax, may
be held for payment from the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of
foreign exchanges.

X.

Transnational companies and their affiliated companies may download the relevant contracts, agreements and payment notices via Internet,
and cover with the corporate stamps, which may be used for handling with the formalities for purchase and payment of non-trade foreign
exchanges.

XI.

Single foreign-invested enterprises or Chinese-invested enterprises that have observed the provisions on foreign exchange management
for the recent three years without any material acts in violation of foreign exchange management, with good financial position, with
big volume of foreign exchange payment under current accounts, and with important local influences may also handle with the sales
and payment of non-trade foreign exchanges according to the provisions of the Circular with approval by the local competent foreign
exchange administration.

XII.

Beijing Department of Foreign Exchanges, and Shanghai and Shenzhen bureaus shall distribute the list of the eligible transnational
companies and local domestic affiliated companies, as well as the verified single foreign-invested enterprises or Chinese-invested
enterprises to the designated banks of foreign exchanges under their jurisdiction.

XIII.

The Circular shall come into force as of the date of its promulgation.

Upon receipt of the Circular, Beijing Department of Foreign Exchanges, and Shanghai and Shenzhen bureaus are requested to distribute
the Circular to the designated banks of foreign exchanges and the relevant units under their jurisdiction as soon as possible, and
the designated banks of foreign exchanges shall upon receipt distribute the Circular to their subordinate branches in Beijing, Shanghai
and Shenzhen. In case of any problems encountered during enforcement, please feedback in timely to the Management Department of Current
Accounts under the SAFE.

Contact with: Ma Chao

Tel: 010-68402114

Fax: 010-68402272



 
The State Administration of Foreign Exchanges
2003-07-30

 






AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF DJIBOUTI ON THE PROMOTION AND PROTECTION OF INVESTMENTS

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF DJIBOUTI ON THE PROMOTION
AND PROTECTION OF INVESTMENTS

The Government of the People’s Republic of China and the Government of the Republic of Djibouti (hereinafter referred to as the Contracting
Parties),

Intending to create favorable conditions for investment by investors of one Contracting Party in the territory of the other Contracting
Party;

Recognizing that the reciprocal encouragement, promotion and protection of such investment will be conducive to stimulating business
initiative of the investors, flow of capital and technology, and will increase prosperity and economic development and that fair
and equitable treatment of investments is desirable in both States;

Desiring to intensify the cooperation of both States on the basis of equality and mutual benefits;

Have agreed as follows:

Article 1

DEFINITIONS

For the purpose of this Agreement,

1,

The term “investment” means every kind of asset invested by investors of one Contracting Party in accordance with the laws and regulations
of the other Contracting Party in the territory of the latter, and in particular, though not exclusively, includes:

(a)

movable and immovable property and other property rights such as mortgages and pledges;

(b)

shares, debentures, stock and any other kind of participation in companies;

(c)

claims to money or to any other performance having an economic value associated with an investment;

(d)

intellectual property rights, in particular, copyrights, patents, trade-marks, trade-names, technical process, know-how and good-will;

(e)

business concessions conferred by law or under contract permitted by law, including concessions to search for, cultivate, extract
or exploit natural resources.

Any change in the form in which assets are invested does not affect their character as investments.

2,

The term “investor” means,

(a)

natural persons who have nationality of either Contracting Party in accordance with the laws of that Contracting Party;

(b)

economic entities, including companies, corporations, associations, partnerships and other organizations, incorporated and constituted
under the laws and regulations of either Contracting Party and have their seats in that Contracting Party.

3,

The term “return” means the amounts yielded from investments, including profits, dividends, interests, capital gains, royalties and
other legitimate income.

Article 2

PROMOTION AND PROTECTION OF INVESTMENT

1,

Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such
investments in accordance with its laws and regulations.

2,

Investments of the investors of either Contracting Party shall be accorded fair and equitable treatment and shall enjoy the constant
protection and security in the territory of the other Contracting Party.

3,

Without prejudice to its laws and regulations, neither Contracting Party shall take any unreasonable or discriminatory measures against
the management, maintenance, use enjoyment and disposal of the investments by the investors of the other Contracting Party.

4,

Subject to its laws and regulations, one Contracting Party shall provide assistance in and facilities for obtaining visas and working
permit to nationals of the other Contracting Party engaging in activities associated with investments made in the territory of that
Contracting Party.

Article 3

TREATMENT OF INVESTMENT

1,

Investments of investors of each Contracting Party shall all the time be accorded fair and equitable treatment in the territory of
the other Contracting Party.

2,

Without prejudice to its laws and regulations, each Contracting Party shall accord to investments and activities associated with
such investments by the investors of the other Contracting Party treatment not less favorable than that accorded to the investments
and associated activities by its own investors.

3,

neither Contracting Party shall subject investments and activities associated with such investments by the investors of the other
Contracting Party to treatment less favorable than that accorded to the investments and associated activities by the investors of
any third State.

4,

The provisions of Paragraphs 1 to 3 of this Article shall not be construed so as to oblige one Contracting Party to extend to the
investors of the other Contracting Party the benefit of any treatment, preference or privilege by virtue of:

(a)

any customs union, free trade zone, economic union and any international agreement resulting in such customs union, free trade zone,
economic union;

(b)

any international agreement or arrangement relating wholly or mainly to taxation;

(c)

any international agreement or arrangement facilitating frontier trade.

Article 4

EXPROPRIATION

1,

Neither Contracting Party shall expropriate, nationalize or take other similar measures (hereinafter referred to as “expropriation”)
against the investments of the investors of the other Contracting party in its territory, unless the following conditions are met:

(a)

for the public interests;

(b)

under domestic legal procedure;

(c)

without discrimination;

(d)

against compensation.

2,

The compensation mentioned in Paragraph 1 of this Article shall be equivalent to the value of the expropriated investments immediately
before the expropriation is taken or the impending expropriation becomes public knowledge, which is earlier. The value shall be determined
in accordance with generally recognized principles of valuation. The compensation shall include interest from the date of expropriation
until the date of payment. The compensation shall also be made without delay, be effectively realizable and freely transferable.

Article 5

COMPENSATION FOR DAMAGES AND LOSSES

Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war, a
state of national emergency, insurrection, riot or other similar events in the territory of the latter Contracting Party, shall be
accorded by the latter Contracting Party, if it takes relevant measures, treatment, as regards restitution, indemnification, compensation
and other settlements no less favorable than that accorded to the investors of its own or any third State.

Article 6

REPATRIATION OF INVESTMENTS AND RETURNS

1,

Each Contracting Party shall, subject to its laws and regulations, guarantee to the investors of the other Contracting Party the
transfer of their investments and returns held in its territory, including:

(a)

profits, dividends, interests and other legitimate income;

(b)

proceeds obtained from the total or partial sale or liquidation of investments;

(c)

payments pursuant to a loan agreement in connection with investments;

(d)

royalties in relation to the matters in Paragraph 1 (d) of Article 1 ;

(e)

payments of technical assistance or technical service fee, management fee;

(f)

payments in connection with contracting projects;

(g)

earnings of nationals of the other Contracting Party who work in connection with an investment in its territory.

2,

Nothing in Paragraph 1 of this Article shall affect the free transfer of compensation paid under Article 4 of this Agreement.

3,

The transfer mentioned above shall be made in a freely convertible currency and at the prevailing market rate of exchange applicable
within the Contracting Party accepting the investments and on the date of transfer.

Article 7

SUBROGATION

If one Contracting Party or its designated agency makes a payment to its investor under an indemnity given in respect of an investment
made in the territory of the other Contracting Party, the latter Contracting Party shall recognize the assignment of all the rights
and claims of the indemnified investor to the former Contracting Party or its designated agency, by law or by legal transactions,
and the right of the former Contracting Party or its designated agency to exercise by virtue of subrogation any such right to same
extent as the investor.

Article 8

SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES

1,

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible,
be settled with consultation through diplomatic channel.

2,

If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an
ad hoc arbitral tribunal.

3,

Such tribunal comprises of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each
Contracting Party shall appoint one arbitrator. Those two arbitrators shall, within further two months, together select a national
of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal.

4,

If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration,
either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to
make any necessary appointments. If the President is a national of either Contracting Party or is otherwise prevented from discharging
the said functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting
Party or is not otherwise prevented from discharging the said functions shall be invited to make such necessary appointments.

5,

The arbitral tribunal shall determine its own procedure. The arbitral tribunal shall reach its award in accordance the provisions
of this Agreement and the principles of international law recognized by both Contracting Parties.

6,

The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties.
The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.

7,

Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and tribunal shall be borne in equal parts by the Contracting Parties.

Article 9

SETTLEMENT OF DISPUTES BETWEEN INVESTORS AND ONE CONTRACTING PARTY

1,

Any legal dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in
the territory of the other Contracting Party shall, as far as possible, be settled amicably through negotiations between the parties
to the dispute.

2,

If the dispute cannot be settled through negotiations within six months, the investor of one Contracting Party may submit the dispute
to the competent court of the other Contracting Party.

3,

Any dispute, if unable to be settled within six months after resort to negotiations as specified in Paragraph 1 of this Article,
shall be submitted at the request of either party to

(a)

International center for Settlement of Investment Disputes (ICSID) under the Convention on the Settlement of Disputes between States
and Nationals of Other States, done at Washington on March 18,1965; or

(b)

an ad hoc arbitral tribunal

provided that the Contracting Party involved in the dispute may require the investor concerned to exhaust the domestic administrative
review procedure specified by the laws and regulations of that Contracting Party before submission of the dispute the aforementioned
arbitration procedure.

However, if the investor concerned has resorted to the procedure specified in Paragraph 2 of this Article, the provisions of this
Paragraph shall not apply.

4,

Without prejudice to Paragraph 3 of this Article, the ad hoc arbitral tribunal referred to in Paragraph 3 (b) shall be constituted
for each individual case in the following way: each party to the dispute shall appoint one arbitrator, and these two shall select
a national of a third State which has diplomatic relations with both Contracting Parties as the Chairman. The first two arbitrators
shall be appointed within two months of the written notice requesting for arbitration by either party to the dispute to the other
and the Chairman shall be selected within four months. If, within the period specified above, the tribunal has not been constituted,
either party to the dispute may invite the Secretary General of the International Center for Settlement of Investment Disputes to
make the necessary appointments.

5,

The ad hoc arbitral tribunal shall determine its own procedure. However, the tribunal may, in the course of determination of procedure,
take as guidance the arbitration Rules of the International Center for Settlement of Investment disputes.

6,

The tribunal referred to in Paragraph 3 (a) and (b) of this Article shall reach an award by a majority of votes. Such award shall
be final and binding upon both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the
award.

7,

The tribunal referred to in Paragraph 3 (a) and (b) of this Article shall adjudicate in accordance with the law of the Contracting
Party to the dispute accepting the investment including its rules on the conflict of laws, the provisions of this Agreement as well
as the applicable principles of international law.

8,

Each party to the dispute shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The
relevant costs of the Chairman and tribunal shall be borne in equal parts by the parties to the dispute. The tribunal may in its
award direct that a higher proportion of the costs be borne by one of the parties to the dispute.

Article 10

OTHER OBLIGATIONS

1,

If the legislation of either Contracting Party or international obligations existing at present or established hereafter between
the Contracting Parties result in a position entitling investments by investors of the other Contracting party to a treatment more
favorable than is provided for by the Agreement, the position shall not be affected by this Agreement.

2,

Each Contracting Party shall observe any commitments it may have entered into with the investors of the other Contracting Party as
regards to their investments.

Article 11

APPLICATION

This Agreement shall apply to investment, which are made after its entry into force by investors of either Contracting Party in accordance
with the laws and regulations of the other Contracting Party in the territory of the latter.

Article 12

CONSULTATIONS

1,

The representatives of the Contracting Parties shall hold meetings from time me for the purpose of:

(a)

reviewing the implementation of this Agreement;

(b)

exchanging legal information and investment opportunities;

(c)

resolving disputes arising out of investments;

(d)

forwarding proposals on promotion of investment;

(e)

studying other issues in connection with investment.

2,

Where either Contracting Party requests consultation on any matter of Paragraph 1 of this Article, the other Contracting Party shall
give prompt response and the consultation be held alternatively in Beijing and Djibouti.

Article 13

ENTRY INTO FORCE, DURATION AND TERMINATION

1,

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures necessary therefor have been fulfilled and remain
in force for a period of ten years.

2,

This Agreement shall continue on force if either Contracting Party fails to give a written notice to the other Contracting Party
to terminate this Agreement one year before the expiration of the period specified in Paragraph 1 of this Article.

3,

After the expiration of initial ten years period, either Contracting Party may at any time thereafter terminate this Agreement by
giving at least one year’s written notice to the other Contracting Party.

4,

With respect to investments made prior to the date of termination of this Agreement, the provisions of Article 1 to 12 shall continue
to be effective for a further period of ten years from such date of termination.

IN WITNESS WHEREOF the undersigned, duly authorized thereto by respective Governments, have signed this Agreement.

Done in duplicate in Beijing, on August 18,2003, in the Chinese and English languages, both texts being equally authentic.

For the Government of￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿For the Government of

The People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿￿￿ ￿￿￿￿￿￿￿￿￿￿￿￿The Republic of Djibouti



 
The Government of the People’s Republic of China
2003-08-18

 






CIRCULAR ON DISTRIBUTING THE MEASURES FOR THE ADMINISTRATION OF VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

The State Administration of Foreign Exchange

Circular on Distributing the Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange

HuiFa [2003] No.91

August 19, 2003

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

In order to further improve the administration of verification and writing-off of export proceeds in foreign exchange, to enhance
the efficiency of regulation and service, and to promote the development of China’s foreign trade, the SAFE has formulated the new
Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange (hereinafter referred to as
the Measures, see the attachments), and has obtained the consent jointly signed by the Ministry of Commerce, the General Administration
of Customs, and the State Administration of Taxation. The Measures are hereby distributed to you. Please carry them out accordingly.

In order to implement the Measures, the SAFE has designed and developed the “System of Verification and Report of Export Proceeds
in Foreign Exchange” (hereinafter referred to as the System), which is to be promoted and operated all over the country on a phased
basis. Considering that the time to start using the System by the localities is different, and in order to avoid confusion, any region
that has already started using the System before the implementation of the Measures shall execute the provisions of the Measures;
whereas any region that has not started to use the System shall still execute the former relevant provisions on the administration
of verification and writing-off of export proceeds in foreign exchange. The branches and designated foreign exchange banks shall
transmit this Circular to the agencies under their respective jurisdictions as soon as possible upon receipt of it. Please pass on
any problems arising during the execution to the Department of Current Accounts under the SAFE.

Attachment:

1. Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange

2. Catalogue of the Documents Repealed

Attachment 1Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange

Article 1

In order to further improve the administration of export proceeds in foreign exchange, and to promote the development of China’s foreign
trade, the Measures are enacted in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Administration.

Article 2

Definitions of the following terms used in the Measures:

“Exporters” refers to all the entities that have been approved or registered by the commerce authorities or the organs authorized
thereby and that have the power of foreign trade management.

“Banks” refers to the banks and the branches thereof that have been approved or put on record by the financial supervisory and management
bodies of the state and the organs authorized thereby, and banks include Chinese-funded banks and foreign-funded banks.

“Forms for the verification and writing-off of export proceeds in foreign exchange” (hereinafter referred to as verification forms)
refers to the important vouchers with unified numbers that are uniformly managed by the SAFE and issued by the branches thereof,
and by which the exporters make declaration of exports with the customs offices, collect export proceeds in foreign exchange with
the banks, make verification and writing-off of export proceeds in foreign exchange (hereinafter referred to as verification) with
the foreign exchange authorities, and apply for export tax refund with the tax authorities.

“Certification Page of the Customs Declaration Form for Export Proceeds in Foreign Exchange” (hereinafter referred to as declaration
form) refers to the declaration form that is issued by the customs office to the exporter, after the clearance of the export goods,
to prove that the actual export of the goods, and on the basis of which the verification formalities are processed.

“Special Page of Verification and Writing-off of Export Proceeds in Foreign Exchange” (hereinafter referred to as special page) refers
to the special exchange settlement receipt for verification, or the special collection advice for verification that is issued by
the bank to the exporter and on the basis of which the verification formalities are processed.

“Future reference of verification” refers to the administrative system of verification in which the data of receivable proceeds in
foreign exchange that an exporter can not normally verified and written off due to objective reasons is transferred from the routine
regulatory database to the future reference database specially established, and is no longer included in the routine examination,
the exporter shall still be obliged to handle the verification, and the SAFE and the branches thereof shall continue to regulate
and investigate the exporter.

Article 3

the SAFE and the branches thereof (hereinafter referred to as foreign exchange administrations) are the administrative organs of verification,
shall supervise and administer the acts related to the collection of export proceeds in foreign exchange by the exporters and banks,
and shall process the verification formalities for the exporters through the System and the “System of China Electronic Port for
Collection of Export Proceeds in Foreign Exchange”.

Article 4

The foreign exchange administrations shall, in conjunction with the commerce authorities, make assessments of the verifications by
the exporters on an annual basis, grade the exporters and promulgate the grades.

Article 5

The verification shall be administered on a regional basis, an exporter shall make registration, apply for the verification form,
and go through the verification formalities with the foreign exchange administration of the place where it is registered.

Article 6

Where an exporter exports goods to any regions subject to closed customs control, such as overseas or domestic bonded areas, export
processing areas, diamond exchanges, etc. (hereinafter referred to as special domestic economic areas), or exports goods by way of
deep processing transit, etc., wherever it is needed to export by any method subject to the regulation of verification form, the
exporter shall go through the formalities for customs declaration on the strength of the verification form, and shall go through
the verification formalities. Where the goods are exported by any methods not subject to the regulation of verification form, the
exporter need not make the customs declaration on the strength of the verification form, neither need it go through the verification
formalities.

Article 7

Foreign exchange administrations shall apply classified administration to the verifications by the exporters according to the assessment
results of the verifications and other relevant information.

Article 8

An exporter shall, after obtaining the power of export management, go through the formalities for certification of access to “China
Electronic Port”, and shall make registration for record with the foreign exchange administration, which shall establish the verification
archive for the exporter.

Article 9

In the case of any alteration of the recorded information, an exporter shall make the alteration registration with the foreign exchange
administration in good time, and the foreign exchange administration shall alter the IC card authority of that exporter at “China
Electronic Port”. Where the exporter terminates its operations or is disqualified from foreign trade, it shall write off the registration
with the foreign exchange administration, which shall write off the IC card authority of that exporter at “China Electronic Port”.

Article 10

An exporter shall apply for the verification forms with the foreign exchange administration on the strength of the IC card of enterprise
operator of “China Electronic Port” and other prescribed certificates. The foreign exchange administration shall, after issuing the
verification form to the exporter, transmit the electronic ledger data of the verification form to the data center of “China Electronic
Port”.

Article 11

The verification forms may only be used by the exporter that applied for it, and may not be altered, lent, used in other’s name, transferred,
or traded.

Article 12

Where an exporter terminates operations, is disqualified from foreign trade, or is merged or split, it shall handle the verification
pursuant to the following provisions:

1)

Where the exporter no longer operates export business because of termination of operations or disqualification from foreign trade,
it shall return the unused verification forms to the foreign exchange administration to write off them, and with respect to the verification
forms by which the goods are declared and exported, the exporter shall continue to handle the verification formalities pursuant to
the provisions. The foreign exchange administration shall stop issuing forms to that exporter, and shall “prohibit the use” of the
forms that have already been issued to that exporter and remain unused.

2)

Where the exporter no longer operates export business as a result of merger or split, it shall return the unused verification forms
to the foreign exchange administration to write off them. The foreign exchange administration shall “prohibit the use” of the forms
that have already been issued to that exporter and remain unused.

3)

Where the exporter continues to operate export business as a result of merger or split, it shall assume the former exporter’s business
for which the export proceeds in foreign exchange are verified and written off according to the stipulations of the agreement of
merger or split.

Article 13

The foreign exchange administration may adjust the number of the forms issued according to the assessed grades of verifications and
the daily business operations of the exporters. With respect to the exporters that have committed acts seriously violating the provisions
on foreign exchange control, the foreign exchange administration may restrict the number of forms issued to them, or may “prohibit
the use” of the verification forms that have been issued to them but are unused.

Article 14

The foreign exchange administration shall employ automatic verification, group verification, and one-by-one verification respectively
to the exporters on the basis of the assessments of the verifications by the exporters, the assessments by the customs, tax, and
commerce authorities, and the reports of international balance, etc., as well as different trade methods.

The conditions for exporters that are subject to automatic verification shall be provided by the SAFE, the catalogue shall be determined
by the SAFE, and be promulgated by the branches.

Article 15

An exporter shall, before making declaration with the customs office, put on record the verification form through the “System of China
Electric Port for Collection of Export Proceeds in Foreign Exchange” with the customs office where the declaration is to be made.

Article 16

An exporter shall, in making the customs declaration, faithfully report to the customs office the transaction method, report the transaction
price, quantity, freight, insurance premium, as well as the agreement number of the processing trade contract, etc., according to
the transaction method, and thus to guarantee the authentication and completeness of the data declared.

Article 17

The customs office shall process the clearance formalities for the exporter if no mistake has been found upon examination of the verification
form and other declaration materials submitted by the exporter, and after verifying the electronic ledgers of the verification form.
The customs office shall affix the “examination seal” on the verification form, make the remark of “used” to the electronic ledger
data of the verification form, and upon application by the exporter, issue the declaration form with the number of the verification
form to the exporter after the clearance. The number of the verification form and that of the declaration form shall be identical
with each other. The customs office shall, after issuing the declaration form to the exporter, transmit to the data center of “China
Electronic Port” the remarks made on the verification form and the electronic ledger of the declaration form.

Article 18

With respect to the export proceeds collected by an exporter from overseas, special economic areas, or off-shore accounts of overseas
clients opened with the banks operating off-shore bank business within China, and the export proceeds collected by a transferor from
the transferee under deep processing transit, etc., the bank shall, pursuant to the provisions, make foreign exchange settlement
or pay into account the export proceeds in foreign exchange for the exporter, and issue the special verification page to the exporter.

Article 19

An exporter shall, after exporting the goods and within 30 days no later than the anticipated date of proceeds collection, make the
report of verification with the foreign exchange administration by taking with it the verification form, the declaration form, the
special verification page, and other prescribed verification vouchers.

With respect to the future collection of proceeds in foreign exchange of which the anticipated date of collection is 180 days (including
180 days) or more after the declaration date, the exporter shall put on record the future collection with the foreign exchange administration
within 60 days after making the customs declaration.

Article 20

The foreign exchange administrations shall upload the verified electronic data of the previous month to the data center of “China
Electronic Port” for consulting or use by the relevant authorities of commerce, customs, and tax, etc.

Article 21

Under exports by agent, the agent shall process the formalities, such as applying for the verification form, making the export declaration,
handling the verification, and making the report of verification.

Article 22

The foreign exchange administration shall, after accepting the report of verification from an exporter, examine the authentication
of the verification vouchers or data provided by the exporter. Where the data reported by the exporter is incomplete, that exporter
shall be required to make supplementation. Where the data reported by the exporter is inconsistent with the electronic data transmitted
by the customs office or bank, the exporter shall be required to check, modify and make up the data with the relevant departments.
The customs office and bank shall deal with an application within 5 workdays after receiving it from an exporter.

Article 23

In examining the verification vouchers provided by an exporter, the foreign exchange administration shall, if the vouchers are complete,
the data is correct, and the balance between the export and the proceeds in foreign exchange collected or the import has not exceeded
the prescribed standards, make the verification according to different trade methods. Where the balance between the export and the
proceeds collected or the import exceeds the prescribed standards, the foreign exchange administration shall, after making sure that
the prescribed certifications of balance are correct, handle balance verification for the exporter. Where the balance between the
export and the collected proceeds or the import exceeds the prescribed standards, and no prescribed balance certifications are provided,
if the case meets the relevant provisions, future reference of balance shall be granted; if the case fails to meet the conditions
for future reference and exceeds the prescribed time limit for verification, such a case shall be treated as one not verified and
written off within the prescribed time limit.

Article 24

After handling the verification formalities for an exporter, the foreign exchange administration shall return the special tax refund
page of the verification form to the exporter pursuant to the provisions. Exporters subject to autonomic verification shall be governed
separately by other provisions.

Article 25

Where an exporter is unable to make normal verifications due to objective reasons, the foreign exchange administration may grant future
reference of verifications with respect to the data of receivable export proceeds that should be verified and written off.

Article 26

Where an exporter incurs any refund or compensation in foreign exchange under exports, it shall apply to the foreign exchange administration
by taking with it the certifications, and after its export proceeds actually collected are set off if no mistake is found upon examination
by the foreign exchange administration, it shall go through the formalities for purchase and payment of foreign exchange for the
refund or compensation with the bank on the strength of the “Certification of Setoff Export Proceeds/Verification” issued by the
foreign exchange administration.

Article 27

Where an exporter fails to handle the verification formalities within the prescribed time limit, it shall be brought into the administration
of those failing to make verification within the prescribed time limit, and the foreign exchange administration shall regularly urge
that exporter to make the verification hat has been defaulted. The foreign exchange administration shall punish the exporter that
fails to handle the verification formalities after being urged and without justified reasons.

Article 28

Exporters and banks shall handle the verification formalities in strict accordance with the Measures, and those violating the Measures
shall be punished by the foreign exchange administrations in accordance with the Regulations of the People’s Republic of China on
Foreign Exchange Administration and other relevant provisions.

Article 29

The power to interpret the Measures shall remain with the SAFE.

Article 30

The Measures shall take effect as of October 1, 2003. The relevant regulations listed in Attachment 2 shall be repealed at the same
time, and if any previous provisions conflict with the Measures, the latter shall prevail.

Attachment 2Catalogue of the Documents Repealed

1.

Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange promulgated by the SAFE and
other departments in December 1990

2.

Circular on Sorting out Old Verification Forms of Export Proceeds in Foreign Exchange (96) (HuiGuoHanZi No.055) promulgated by the
SAFE on March 5, 1996

3.

Circular on Strict Examination of the Anti-Counterfeiting Labels of Declaration Forms of Import and Export Goods (HuiChuan [1996]
No.04) promulgated by the SAFE on March 28, 1996

4.

Circular on the Relevant Issues Concerning Clarification of the “Twice Verification of Customs Declaration Forms of Import and Export
Goods” (96) (HuiGuoHanZi No.178) promulgated by the SAFE and the General Administration of Customs on June 27, 1996

5.

Interim Measures on the Administration of the Payment and Verification and Writing-Off of Refund and Compensation in Foreign Exchange
under Exports promulgated by the SAFE on June 28, 1996

6.

Circular on Further Strengthening the Administration of Verification Forms of Export Proceeds in Foreign Exchange (97) (HuiGuoHeZi
No.001) promulgated by the SAFE on January 8, 1997

7.

Provisions on the Relevant Issues Concerning the Issuing of Special Page of Verification Form of Export Proceeds in Foreign Exchange
promulgated by the SAFE on September 29, 1997

8.

Supplementary Provisions on the Issues Concerning the Verification and Writing-Off of Export Proceeds in Foreign Exchange promulgated
by the SAFE on September 29, 1997

9.

Circular on the Relevant Issues Concerning the “Twice Verification” of Import and Export Declaration Forms (97) (HuiGuoHanZi No.214)
promulgated by the SAFE and the General Administration of Customs on July 28, 1997

10.

Circular on Fixing the Minimum Time for Keeping of the Original Vouchers of Verification and Writing-Off of Export Proceeds in Foreign
Exchange (98) (HuiGuoHanZi No.046) promulgated by the SAFE on February 18, 1998

11.

Circular on Further Strengthening the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange (1998)
(HuiFa No.27) promulgated by the SAFE on September 21, 1998

12.

Circular on Strengthening the Control of Verification and Writing-Off of Export Proceeds in Foreign Exchange Derived from Tourism
Purchases (2000) (HuiFa No.170) promulgated by the SAFE on December 29, 2000

13.

Circular on Distributing the Implementation Rules of the Measures for the Administration of Verification and Writing-Off of Export
Proceeds in Foreign Exchange (98) (HuiGuoFaZi No.012) promulgated by the SAFE on June 22, 1998

14.

Circular of the State Administration of Foreign Exchange on Distributing the Operational Rules for the Administration of Verification
and Writing-Off of Export Proceeds in Foreign Exchange (2002) (HuiFa No.112) promulgated by the SAFE on November 13, 2002.



 
The State Administration of Foreign Exchange
2003-08-19

 






CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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