CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE RELATED MATTERS ON ADMINISTERING SHORT-TERM FOREIGN DEBTS OF FINANCIAL INSTITUTIONS IN 2007

Circular of the State Administration of Foreign Exchange Concerning the Related Matters on Administering Short-term Foreign Debts
of Financial Institutions in 2007

Hui Fa [2007] No. 14

The branches and foreign exchange administration offices of the State Administration of Foreign Exchange in each province, autonomous
region, and municipality directly under the Central Government, and the municipal branches of the State Administration of Foreign
Exchange in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all the headquarters of the designated Chinese-funded foreign exchange
banks:

For the purpose of rigorously controlling the short-term foreign debt scale, promoting the international balance of payments and maintaining
the safety of the national economic and financial, the related matters on administering short-term foreign debts of financial institutions
in 2007 are hereby notified as follows:

The administration of short-term foreign debt balance quotas (hereinafter referred to as short-term foreign debt quotas) shall apply
to the following foreign debts of financial institutions:

(1)

Usance letters of credit that has been accepted but not yet paid with a term of over 90 days (excluding 90 days);

(2)

Deposits of overseas institutions as well as deposits of overseas individuals whose balance in the foreign exchange account at a same
bank with a legal person status is more than an equivalent value of USD 500,000;

(3)

Overseas loans, overseas inter-bank borrowings, current businesses with overseas inter-bank and subordinated institutions thereof
(as the debtor) as well as overseas agency payments by various settlement methods with a term of less than one year (including one
year) ; and

(4)

Short-term foreign debts in other forms.

The short-term foreign debt quotas of financial institutions in 2007 will be reduced by the decrease State Administration of Foreign
Exchange (SAFE). The short-term foreign debt quotas for Chinese-funded banks in 2007 shall be decreased to 30% of their respective
quotas as determined upon confirmation in 2006, and short-term foreign debt quotas for non-bank financial institutions and foreign-funded
banks in 2007 shall be decreased to 60% of their respective quotas as determined upon confirmation in 2006.

A financial institution shall decrease its short-term foreign debt balance according to the following requirements:

(1)

By June 30, 2007, a Chinese-funded bank shall reduce its short-term foreign debt balance to 45% or less of the quota as determined
in 2006, and with regard to a non-bank financial institution or foreign-funded bank, its short-term foreign debt balance shall be
reduced to 85% or less of the quota as determined in 2006.

(2)

By September 30, 2007, a Chinese-funded bank shall reduce its short-term foreign debt balance to 40% or less of the quota as determined
in 2006, and with respect to a non-bank financial institution or foreign-funded bank, its short-term foreign debt balance shall be
reduced to 75% or less of the quota as determined in 2006.

(3)

By December 31, 2007, a Chinese-funded bank shall reduce its short-term foreign debt balance to 35% or less of the quota as determined
in 2006, and with regard to a non-bank financial institution or foreign-funded bank, its short-term foreign debt balance shall be
reduced to 65% or less of the quota as determined in 2006.

(4)

By March 31, 2008, a Chinese-funded bank shall reduce its short-term foreign debt balance to 30% or less of the quota as determined
in 2006, and with respect to a non-bank financial institution or foreign-funded bank, its short-term foreign debt balance shall be
reduced to 60% or less of the quota as determined in 2006.

The short-term foreign debt quota for a Chinese-funded or foreign-funded bank newly established, or a Chinese-funded bank newly launching
foreign exchange business shall be determined upon verification as no more than two times its foreign exchange operating fund or
its capital.

After a branch of a foreign-funded bank is converted into a bank with a legal person statue in China, the short-term foreign debt
quota of the original short-term foreign debt quota management bank or the original domestic branch shall be inherited by this bank
with a legal person status, and its headquarters shall submit such quota to the SAFE or the SAFE branch or management department
at the registration place (hereinafter referred to as the “SAFE branch”) for archival filing.

In case a foreign-funded bank has simultaneously established both a bank with a legal person status and a branch conducting wholesale
business of foreign exchange within the territory of China, the subsidiary bank shall take charge of managing short-term foreign
debts, and the short-term foreign debt quota shall be jointly used by the bank with a legal person status and the branch conducting
wholesale business of foreign exchange.

Where it is necessary for a foreign-funded bank to adjust short-term foreign debt quotas for different regions because of the merger
or split-up, etc., the institution needing to increase the quota shall apply to the local SAFE branch, who shall examine and approve
the application together with other related SAFE branches, and then report it to the SAFE for archival filing.

Before a branch of a foreign-founded bank in China is converted into a bank with a legal person status, the funds from its overseas
parent bank for its the capital increase may be deposited into a special account which is opened in a domestic bank upon this branch’s
application to the local SAFE branch on behalf of the foreign bank. Such funds are not subject to the management of short-term foreign
debt quotas of such domestic bank, but they may only be used as overseas short-term capital by such domestic bank and not for any
other purpose.

The SAFE will determine upon verification the short-term foreign debt quotas of the following financial institutions:

(1)

Policy banks and nationwide commercial banks with a legal person status (including foreign-funded banks with a legal person status
converted from foreign bank branches, see the affixed forms 1 and 2); and

(2)

Foreign bank branches implementing the centralized management on short-term foreign debt quotas (see affixed Form 1).

Within the regional quotas (see affixed form 3) determined upon verification by the SAFE, each SAFE branch shall determine the short-term
foreign debt quotas of the following financial institutions within its jurisdiction:

(1)

Regional Chinese-funded banks (those that have not been listed into affixed Form 2);

(2)

Foreign-funded bank branches not implementing the centralized management of short-term foreign debts and regional foreign-funded banks
with a legal person status (hereinafter referred to as regional foreign-funded banks, that are, those that have not been listed into
affixed form 1); and

(3)

Non-bank financial institutions that have not been listed into any affixed form.

A department and some staff members shall be designed by a financial institution to be responsible for managing and registering its
short-term foreign debts, as well as reporting them to the SAFE for archival filing.

10.

A financial institution shall conduct careful statistics on and comprehensive report of the short-term foreign debt data (see annex)
according to the relevant provisions on the statistical monitoring of foreign debts.

Chinese-funded financial institutions shall, uniformly by their headquarters through the SAFE foreign debt statistical monitoring
system (the bank version), report the foreign debt data on usance letters of credit, deposits of non-resident, overseas inter-bank
borrowing and overseas agency payments. The foreign-funded bank with a legal person status upon restructuring and its branches conducting
wholesale business of foreign exchange shall, uniformly by the subsidiary bank through the SAFE foreign debt statistical monitoring
system (the bank version), report the foreign debt data. A foreign bank branch that has not been restructured shall keep its original
foreign debt data submission method.

A financial institution shall report the data on usance letters of credit subject to the following three types based on currencies;
(1) usance letters of credit within a term of 90 days or less in the same currency; (2) usance letters of credit within a term of
over 90 days up to one year in the same currency; and (3) usance letters of credit with a term of over one year.

The data on overseas deposits not governed by foreign debt quotas shall be reported in the system at the same time.

11.

The SAFE and branches thereof shall deliver the short-term foreign debt quotas to the financial institutions under their respective
jurisdictions prior to March 31, 2007, and rigorously administer and supervise the borrowing of short-term foreign debts and the
implementation of quotas.

12.

The demands for short-term foreign exchange financing of a domestic financial institution may be satisfied through currency market
lending and swap, etc.

13.

The present Circular shall go into effect as of April 1, 2007. All SAFE branches shall promptly forward the present Circular to the
sub-branches and foreign-funded banks under their jurisdiction after they receive it. All designated Chinese-funded foreign exchange
banks shall promptly forward the present Circular to their branches. Any problem encountered during the implementation shall be fed
back to the SAFE in a timely manner.

Annex: Instructions on the Adjustment of the Submission Methods of Foreign Debt Data (Omitted)

Form 1: Form of the Verification of Short-term Foreign Debt Quotas for the Short-term Foreign Debt Management Banks of Foreign-funded
Financial Institutions in 2007 (Omitted)

Form 2: Form of the Verification of Short-term Foreign Debt Quotas for Chinese-funded Financial Institutions in 2007 (Omitted)

Form 3: Form of the Verification of Short-term Foreign Debt Quotas of Various Regions in 2007 (Omitted)

The State Administration of Foreign Exchange

March 2, 2007

The State Administration of Foreign Exchange
2007-03-02

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE TAX MATTERS ABOUT THE RESTRUCTURING OF FOREIGN BANK BRANCHES INTO SOLELY FOREIGN-INVESTED BANKS

Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Tax Matters about the Restructuring of
Foreign Bank Branches into Solely Foreign-invested Banks

Cai Shui [2007] No. 45

The public finance departments (bureaus), state taxation bureaus and local taxation bureaus of each province, autonomous region, municipality
directly under the Central Government and city specifically designated in the state plan, and the Public Finance Bureau of Xinjiang
Production and Construction Corps.,

The Regulations of the People’s Republic of China on Administrating Foreign-invested Banks (Order No. 478 of the State Council) promulgated
by the State Council on November 11, 2006 and the detailed rules for the implementation thereof provided that: where the related
conditions are met, a foreign bank may set up a solely foreign-invested bank within China, and a foreign bank branch set up within
China may be restructured into a solely foreign-invested bank (or the subsidiary bank thereof). During the process of restructuring,
the solely foreign-invested bank (or the subsidiary bank thereof) shall inherit the creditor’s rights and debts of the former foreign
bank branch. As regards the related tax matters about the restructuring of foreign bank branches into solely foreign-funded banks
(or the subsidiary banks thereof), it is the principle that the business activities before and after the restructuring should be
taken as continuous business activities. The related specific tax treatments are hereby informed as follows:

Business Tax and Value-added Tax

When the foreign bank branches are restructured, as regards the transfer of enterprise property rights or stock rights to the restructured
solely foreign-invested banks (or the subsidiary banks thereof), no business tax or value-added tax may be levied .

Enterprise Income Tax

(1)

. As regards assets transfer

Where a foreign bank branch is restructured into a solely foreign-invested bank (or the subsidiary bank thereof), all assets thereof
shall be transferred in light of their respective book value and in accordance with the Circular of the State Administration of Taxation
Concerning the Tax upon the Incomes Generated from the Transfer of Stock Rights by Foreign-invested Enterprises and Foreign Enterprises
(Guo Shui Han [1999] No. 207).

(2)

. As regards making up losses

The business losses suffered by a foreign bank branch in the years before its restructuring may be made up continuously by the restructured
solely foreign-invested bank (or the subsidiary bank thereof), and the fixed number of years for making up losses shall be calculated
continuously after the year when the former foreign bank branch suffered the losses according to the fixed number of years as provided
for in Article 11 of the Income Tax Law of the People’s Republic of China on Foreign-invested Enterprises and Foreign Enterprises
(hereinafter referred to as the Foreign-invested Enterprise Income Tax Law).

(3)

As regards the item of tax preferences

If the preferential tax reduction and exemption treatments for a certain term have not been enjoyed by a foreign bank branch in accordance
with the provisions in the Foreign-invested Enterprise Income Tax Law before its restructuring, or if the term has not expired, the
corresponding restructured solely foreign-invested bank (or the subsidiary bank thereof) may enjoy them until the term expires. If
the term has expired, the restructured solely foreign-invested bank (or the subsidiary bank thereof) may not enjoy them again.

(4)

As regards consolidated payment of taxes

In accordance with Article 5 of the Detailed Rules for Implementing the Foreign-invested Enterprise Income Tax Law, after a foreign
bank branch is restructured into a subsidiary bank of a solely foreign-invested bank, the headquarters of the solely foreign-invested
bank shall pay enterprise income tax on a consolidated basis.

Stamp Tax

In accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning Related Policies on
the Stamp Tax in the Process of Enterprise Restructuring (Cai Shui [2003] No.183), after the restructuring of a foreign bank branch
into a solely foreign-invested bank (or the subsidiary bank thereof), if the capital book accounts and taxable contracts, have been
affixed with the tax stamps in the foreign bank branch, tax stamps will not be affixed with in the restructured solely foreign-invested
bank (or the subsidiary bank thereof) again.

Deed Tax

In accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning Related Policies on
the Deed Tax in the Process of Enterprise Restructuring (Cai Shui [2003] No.183), the deed tax may be exempted if the house property
rights a foreign bank branch owns before the restructuring are transferred to the solely foreign-invested bank (or the subsidiary
bank thereof) set up after the restructuring.

Where a foreign bank branch is restructured into a solely foreign-invested bank (or the subsidiary bank thereof), in case the transfer
is not carried out on the basis of book value, tax shall be levied pursuant to the current related tax law.

The Ministry of Finance

The State Administration of Taxation

March 26, 2007

The Ministry of Finance, The State Administration of Taxation
2007-03-26

CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE CONCERNING THE CERTIFYING AUTHORITIES’ CONSOLIDATE PRINTING OF THE INTERIM EXPORT CERTIFICATE OF TEXTILE PRODUCTS IN ENGLISH VERSION

Circular of the General Office of the Ministry of Commerce concerning the Certifying Authorities’ Consolidate Printing of the Interim
Export Certificate of Textile Products in English Version

Shang Ban Pei Han [2007] No. 1

The authorities mainly responsible for commerce in all provinces, autonomous regions, municipalities, cities specifically designated
in the state plan, Xinjiang Production and Construction Corp and such cities as Harbin, Changchun, Shenyang, Xi’an, Nanjing. Wuhan,
and Guangzhou:

In order to strengthen the certification and issuing of the interim export certificate of textile products and the administration
of the certification, guarantee of the normal export of enterprises, and save the government’s cost, the particulars relevant to
the certifying authorities’ consolidate printing of the interim certificate of textile products in English version is notified as
follows:

The enterprise printing terminal in the application and withdrawal system of interim export certificate of textile products shall
be closed as of April 30, 2007 and the interim export license of all the products shall be uniformly printed and transferred by the
certificate issuing authority.

All the certificate issuing authorities shall make the relevant preparation and take corresponding measures against the possible occasions
in a bid to substantially guarantee that the certification of interim export license of textile products can be carried out smoothly
and orderly.

All the certifying authorities shall withdraw all the unused blank certificates independently printed by the enterprises.

All the certifying authorities may connect with the Bureau of Quota License of the Ministry of Commerce.

Contact person: Jiang Sheng(deputy division chief) Li Wanhong(responsible person)

Tel.: 010-84095551-7620/7623

Fax: 010-84095015

The General Office of the Ministry of Commerce

April 11, 2007

General Office of the Ministry of Commerce
2007-04-11

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING BEIJING ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Beijing Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 14

Beijing Municipal People’s Government and Beijing Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

Upon research, we hereby authorize the Management Committee of Beijing Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

The Management Committee of Beijing Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

The Management Committee of Beijing Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

Beijing Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Beijing Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)

Ministry of Commerce
2007-02-12

PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ABOUT THE ADMINISTRATION OF THE COMMODITY CLASSIFICATION OF IMPORT AND EXPORT GOODS

Decree No. 158 of the General Administration of Customs

No. 158

The Provisions of the Customs of the People’s Republic of China about the Administration of the Commodity Classification of Import
and Export Goods have been deliberated and adopted at the executive meeting of the General Administration of Taxation on February
14, 2007. They are hereby promulgated and shall enter into force as of May 1, 2007. The Interim Measures of the Customs of People’s
Republic of China for the Preliminary Commodity Classification of Import and Export Goods as promulgated by Decree No. 80 of the
General Administration of Customs on February 24, 2000 shall be concurrently annulled.

Director Mou Xinsheng

March 2, 2007

Provisions of the Customs of the People’s Republic of China about the Administration of the Commodity Classification of Import and
Export Goods

Article 1

In order to regulate the commodity classification of import and export goods and guarantee the accuracy and unification of commodity
classification results, the present Provisions are formulated in accordance with the Customs Law of the People’s Republic of China
(hereinafter referred to as the Customs Law), the Regulation of the People’s Republic of China on Import and Export Duties (hereinafter
referred to as the Duty Regulation) as well as other related laws and administrative regulations.

Article 2

The term commodity classification as referred to in the present Provisions means the activities of determining the commodity codes
of import and export goods under the commodity classification catalogue system of the Convention on the Commodity Name and the Code
Coordination System, on the basis of the Customs Import and Export Tariff of the People’s Republic of China and as required in the
Annotations on Commodities and Articles under the Customs Import and Export Tariff, the Annotations on Domestic Sub-categories of
the Customs Import and Export Tariff of the People’s Republic of China as well as the administrative rules and the decisions on commodity
classification as promulgated by the General Administration of Customs.

Article 3

The present Provisions shall apply to the commodity classification of import and export goods by the consignees and consignors of
import and export goods or the agents thereof (hereinafter referred to as the consignee and the consignor or the agents thereof)
and the examination and determination of commodity classification by the customhouses as well.

Article 4

The commodity classification of import and export goods shall comply with the principles of objectivity, accuracy and unification.

Article 5

The commodity classification of import and export goods shall be confirmed according to the actual condition of goods at the time
of declaration to the customhouse by the consignee and the consignor or the agents thereof. As regards the goods imported and exported
by advance declaration, the commodity classification of which shall be confirmed according to the actual condition of goods when
they are shipped to the sites under customs surveillance. If there are otherwise provisions in any law, administrative regulation
or the rule of the General Administration of Customs, such provisions shall prevail.

Article 6

The consignee and the consignor or the agents thereof shall authentically and accurately declare the names and specifications, etc.
of import and export goods in accordance with the laws, administrative regulations and the requirements of the customhouse, and carry
out the commodity classification of import and export goods as declared, and determine the commodity codes accordingly.

Article 7

As regards varieties of import goods that are simultaneously shipped to a same port by a same transport vehicle, and belong to a
same consignee using a same bill of lading, and shall be classified into a same commodity code in accordance with the rules for commodity
classification, the consignee or the agent thereof shall incorporate related commodities into this commodity code and make declarations
to the customhouse together. If it is otherwise stipulated by the provisions in any law, administrative regulation or rule of the
General Administration of Customs, such provisions shall prevail.

Article 8

If the consignor or consignee or the agent thereof provides to the customhouse the materials relating to any business secret and
requires the customhouse to keep confidential, an application in written form shall be submitted to the customhouse in advance, and
the contents for confidentiality shall be listed explicitly, and the customhouse shall keep confidential for the said materials.

No consignor or consignee or the agent thereof may refuse to provide related materials to the customhouse in excuse of business secret.

Article 9

The customhouse shall verify the names, specifications and commodity codes of import and export goods as declared by the consignor
and the consignees or the agents thereof.

Article 10

When verifying the commodity classification of the goods as declared by the consignor and the consignee or the agents thereof, the
customhouse may exercise the following official powers in accordance with the Customs Law and the Duty Regulation, and the consignor
and the consignee or the agents thereof shall assist in coordination:

(1)

it may consult and copy related documents and materials;

(2)

it may require the consignor and the consignee or the agents thereof to provide necessary samples and related materials on goods;
and

(3)

it may organize the tests and inspections of import and export goods, and carry out the commodity classification in light of the testing
and inspection results as confirmed by the customhouse.

Article 11

The customhouse may require the consignor and the consignee or the agents thereof to provide the materials as required for determining
the commodity classification, and may require them to make complementary declarations if necessary.

Where any consignor or consignee or the agent thereof conceals related information or delays providing or refuses to provide related
documents or materials, the customhouse may verify and determine the commodity classification of import and export goods in light
of the contents as declared.

Article 12

Where any incorrect commodity code as declared by a consignor or consignee or the agent thereof is found upon verification, the customhouse
may re-determine a new commodity code as required in the provisions of the Measures for the Administration of the Customs of the
People’s Republic of China on the Collection of Duties concerning Import and Export Goods as well as the related rules and provisions
on the commodity classification, and shall inform the consignor or consignee or the agent thereof to modify or delete the customs
declaration form under the Measures for the Administration of the Customs of the People’s Republic of China on the Modification and
Withdrawal of Customs Declaration Forms of Import and Export Goods and other related provisions.

Article 13

Where a commodity code as declared by the consignor and the consignee or the agents thereof needs to be modified, they shall submit
an application to the customhouse in accordance with the Measures for the Administration of the Customs of the People’s Republic
of China on the Modification and Withdrawal of Customs Declaration Forms of Import and Export Goods and other related provisions.

Article 14

Where the consignor and the consignee or the agents thereof require to discharge their goods before the verification on the commodity
classification of goods by the customhouse, they shall provide the guarantee in accordance with the related provisions on the guarantee
for customs affairs.

The customhouse shall not handle the discharge of the goods with guarantee on the ground that a permit certificate shall be provided
due to the restrictions on the entry and exit goods of the state, but the permit certificate can not be provided, or any other circumstance
under which the guarantee shall not be applied as prescribed by any law or administrative regulation occurs.

Article 15

A business unit of import and export goods as registered at the customhouse (hereinafter referred to as the applicant) may apply
to the customhouse directly under the General Administration of Customs for the preliminary commodity classification (hereinafter
referred to as pre-classification) of the goods to be imported or exported 45 days before the actual import or export of goods.

Article 16

When applying for the pre-classification, the applicant shall fill in and file an Application Form of the Customs of the People’s
Republic of China for the Pre-classification of Goods (see Attachment 1 for the format).

An application for pre-classification shall be submitted to the customhouse directly under the General Administration of Customs at
the place where the goods to be actually imported or exported are located.

Article 17

Where the customhouse directly under the General Administration of Customs regards upon verification that the commodity classification
matter under the application for pre-classification has been explicitly prescribed in the Customs Import and Export Tariff of the
People’s Republic of China, the Annotations on Commodities and Articles under the Customs Import and Export Tariff, the Annotations
on Domestic Sub-categories of the Customs Import and Export Tariff of the People’s Republic of China, as well as any administrative
ruling or decision on commodity classification as promulgated by the General Administration of Customs, it shall make and issue a
Written Decision of the Customs of the People’s Republic of China on the Pre-classification of Goods (hereinafter referred to as
the Written Decision on the Pre-classification, see Attachment 2 for the format) within 15 workdays as of the receipt of an application,
and inform the decision to the applicant.

Article 18

When importing or exporting the goods as described in the Written Decision on the Pre-classification within the region under the
jurisdiction of the customhouse directly under the General Administration of Customs that made and issued this Written Decision on
the Pre-classification, the applicant shall initiatively submit the Written Decision on the Pre-classification to the customhouse.

In case an applicant imports or exports the goods as described in the Written Decision on the Pre-classification in an actual condition,
and makes declaration in accordance with the Written Decision on the Pre-classification, the customhouse shall carry out the verification
and discharge the goods in light of the classification opinions as determined in the Written Decision on the Pre-classification.

Article 19

In case of any error in the contents of the Written Decision on the Pre-classification, the customhouse directly under the General
Administration of Customs that made and issued the Written Decision on the Pre-classification shall timely make and issue a Circular
of the Customs of the People’s Republic of China on Revoking the Written Decision on the Pre-classification (hereinafter referred
to as the Circular, see Attachment 3 for the format), and inform the applicant to stop using the said Written Decision on the Pre-classification.

In case of any alteration in the related provisions on which the Written Decision on the Pre-classification is based that leads to
the non-application of the Written Decision on the Pre-classification, the customhouse directly under the General Administration
of Customs that made and issued the Written Decision on the Pre-classification shall make and issue a Circular or publicize an announcement,
and inform the applicant to stop using this Written Decision on the Pre-classification.

Article 20

Where the customhouse directly under the General Administration of Customs regards upon verification that the commodity classification
matter under the application for pre-classification has not been explicitly prescribed in the Customs Import and Export Tariff of
the People’s Republic of China, the Annotations on Commodities and Articles under the Customs Import and Export Tariff, the Annotations
on Domestic Sub-categories of the Customs Import and Export Tariff of the People’s Republic of China, any administrative ruling or
decision on commodity classification as publicized by the General Administration of Customs, it shall inform the applicant to apply
for an administrative ruling in accordance with the provisions within seven workdays as of the receipt of an application.

Article 21

The General Administration of Customs may make a decision on commodity classification that has the universal binding force on the
import and export goods in accordance with related laws and administrative regulations.

The commodity classification decision on identical goods shall apply to the import or export of identical goods.

Article 22

The General Administration of Customs shall publicize the commodity classification decisions.

Article 23

In case of any alterations in any law, administrative regulation or any other related provision on which a commodity classification
decision is based, the commodity classification decision shall be invalid simultaneously.

The General Administration of Customs shall publicize the decision on the invalidity of a commodity classification.

Article 24

In case of any error in the decision on the commodity classification as found by the General Administration of Customs, such decision
shall be annulled in a timely manner.

The annulment of a decision on commodity classification shall be publicized by the General Administration of Customs. The decision
on commodity classification as annulled shall be invalid as of the date of annulment.

Article 25

The duty refund, recovery of duties or collection of late fees due to the commodity classification shall be handled in accordance
with the related laws, administrative regulations and the rules of the General Administration of Customs.

Article 26

Anyone that is in violation of the present Provisions and commits the smuggling act, or is in violation of the customs surveillant
provisions or the Customs Law shall be punished by the customhouse in accordance with the Customs Law and the Regulation of the Customs
of the People’s Republic of China on the Implementation of Administrative Penalties; and if a constituted crime, it shall be subject
to criminal liabilities.

Article 27

The present Provisions shall be subject to the interpretation of General Administration of Customs.

Article 28

The present Provisions shall enter into force as of May 1, 2007. The Interim Measures of the Customs of People’s Republic of China
for the Preliminary Commodity Classification of Import and Export Goods promulgated by Decree No. 80 of the General Administration
of Customs on February 24, 2000 shall be concurrently abrogated.

Attachments:

1. Application Form of the Customs of the People’s Republic of China for the Pre-classification of Goods(Omitted)

2. Written Decision of the Customs of the People’s Republic of China on the Pre-classification of Goods(Omitted)

3. Circular of the Customs of the People’s Republic of China on Revoking the Written Decision on the Pre-classification(Omitted)

General Administration of Customs
2007-03-02

CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE CONCERNING MATTERS ON REISSUING IMPORT AND EXPORT LICENSES FOR DUAL-USE ITEMS AND TECHNOLOGIES

Circular of the General Office of the Ministry of Commerce Concerning Matters on Reissuing Import and Export Licenses for Dual-use
Items and Technologies

Shang Ban Pei Han [2007] No.2

The commerce department of each province, autonomous region, municipality directly under the Central Government, city specifically
designated in the state plan and Xinjiang Production and Construction Corp.:

As it is stipulated in Article 26 of the Measures for Administrating Import and Export Licenses for Dual-Use Items and Technologies,
“Where an import and export license for dual-use items and technologies is to be used by crossing a year, March 31 in the next year
shall be the deadline within the valid period of the license, the license-issuing organ shall reissue a new license on the basis
of the valid period of the original license .” In accordance with such provision, we hereby inform the maters about the reissue of
import and export licenses for dual-use items and technologies as follows:

The column of “reissue and print” shall be added to the function list of the import and export licenses issuing system for dual-use
items and technologies as from March 30, 2007. This function shall be applicable to the reissue of the import and export licenses
for dual-use items and technologies which have been obtained in 2006 but have not been declared to customs and whose deadline of
valid period is after March 31, 2007.

A license-issuing organ shall, upon the strength of the following materials submitted by an operator, handle the formalities for reissue:

(1)

The original import and export license for dual-use items and technologies (original);

(2)

The Application Form of the People’s Republic of China for the Alteration of the Import and Export Licenses for Dual-Use Items and
Technologies, affixed with the operator’s official seal.

The remark column of the new license shall record the original license number and the term “Reissued”. The valid period of the new
license shall be identical with that of the original one.

The General Office of the Ministry of Commerce

March 27, 2007

The General Office of the Ministry of Commerce
2007-03-27

CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING MATTERS ABOUT REINFORCING THE ADMINISTRATION OF PROCESSING TRADE

Circular of the Ministry of Commerce Concerning Matters about Reinforcing the Administration of Processing Trade

Shang Chan Fa [2007] No.133

In order to further perfect the administration of processing trade, encourage processing trade enterprises to optimize structure,
improve economic performance, independently innovate and actively perform social responsibilities, restrict and decrease activities
of processing trade enterprises conducting the processing trade with high consumption of energy, serious pollution of environment
and low added value, effectively accelerate the transformation and upgrading of processing trade and promote the sound development
of processing trade, the competent departments of commerce at various levels shall ceaselessly reinforce system construction in the
administration of processing trade business, check the business qualification and processing production capacity of processing trade
enterprises as well as do well in access administration. The related matters are hereby notified as follows:

Reinforcing the system construction of the processing trade administrative departments at each level

(1)

Rigorously administering the power of examination and approval. The competent commerce departments at each level shall, strictly according
to the provisions on examining and approving organ and graded examination and approval in the Interim Measures for Administrating
Examination and Approval of Processing Trade, exercise the power of examination and approval over processing trade business. When
delegating the power of examination and approval to lower levels, the provincial competent commerce departments shall observe the
related provisions and file the related situation with the Ministry of Commerce for record. The examining and approving organs at
each level shall issue the Certificate on Operation Situation and Production Capacity of Processing Trade Enterprises and the Approval
Certificate for Processing Trade Business to enterprises by using the e-networked approval/administration system for processing trade.
The related data on such certificates shall be put into the database of the Ministry of Commerce for unified administration. Any
examining and approving organ may not issue any certificate by any other means.

(2)

Attention shall be paid to daily statistical analysis. The competent commerce departments at each level shall pay attention to gathering
the statistical data regarding the production, operation, taxation, environmental protection, energy consumption, number of workers,
wage level, payment of staff’s social insurances, etc., of the local processing trade enterprises, summarize the situation and experience
in using advanced technical equipment, obtaining patents and building self-owned brands by them, and file the related information
with the higher competent commerce departments for statistical summary.

Perfecting the access management for processing trade enterprises

(1)

Inspection on the operation situation and production capacity of processing trade enterprises shall be reinforced. For determining
an enterprise’s qualification for engaging in processing trade business as well as examining and approving processing trade business
by the examining and approving organ, the Certificate on Operation Situation and Production Capacity of Processing Trade Enterprises
(hereinafter referred to as the Production Capacity Certificate) shall be deemed as an important basis. When applying for engaging
in processing trade business, an enterprise shall truthfully report each item listed in the Production Capacity Certificate, and
the competent commerce departments at each level shall make on-the-spot investigation and make examination and approval in accordance
with the actual situation. The enterprise shall provide the evidentiary documents or materials in relation to the reported contents
when necessary. The competent commerce department may not approve any enterprise failing to pass the check on operation situation
and production capacity to engage in processing trade business.

(2)

Incorporating the indices about environmental protection, energy consumption, employment and equipment level, etc., into the scope
of check on operation situation and production capacity.

(a)

Processing trade enterprises shall be urged to strictly carry out environmental protection standards and encouraged to save energy
and reduce energy consumption. A processing trade enterprise’s major discharge indices such as sulfur dioxide (SO2) index, chemical
oxygen demand (COD) index, etc., shall reach the requirements of the environmental protection departments, and its comprehensive
energy consumption for gross unit output value may not be higher than the local average level. If any enterprise fails to reach the
standards for environmental protection and energy consumption or commits any environment responsible accident, it shall be prohibited
from engaging in processing trade business.

(b)

Processing trade enterprises shall be urged to improve the employment system. A processing trade enterprise shall go through employment
registration formalities as required at the local labor security department, care for workers’ welfare and respect the related local
provisions on minimum wage level and social insurances payment. Where any enterprise fails to go through employment registration
formalities as required, fails to reach the minimum wage level at its locality or violates the related provisions at its locality
on social insurance payment, engagement in trade business may not be approved; as for any such enterprise approved prior to the issuance
of the present Circular, the competent commerce department shall urge it to correct within a fixed time limit, where it fails to
do so, the competent commerce department shall cancel its qualification for engaging in processing trade business.

(c)

The elimination of outdated production capacity shall be accelerated. The competent commerce departments at each level shall effectively
implement the Decision of the State Council Concerning the Promulgation of the “Interim Provisions on Promoting Industrial Structure
Adjustment” for Implementation (Guo Fa [2005] No.40), and in light of the Catalogue for the Guidance of Industrial Structure Adjustment,
forbid the enterprises using outdated production technical equipment as listed in the eliminated category from operating processing
trade business, and may not approve any enterprise to undertake processing trade business for the purpose of producing any outdated
product as listed in the eliminated category. They shall urge the processing trade enterprises, which use technologies and equipment
as listed in the restricted category or produce products listed in the restricted category, to accelerate transformation and upgrading,
and may not approve any new enterprise to undertake processing trade business by using technologies and equipment as listed in the
restricted category any more.

Delegating the power of examination and approval on the domestic sale of processing trade to the lower levels

For the purpose of adapting to the development situation of processing trade and strengthening the administration of processing trade,
from July 1st, 2007, when any processing trade enterprise applies for selling bonded import materials in domestic market, the application
shall be accepted, examined and approved by the original competent commerce department issuing the Approval Certificate for Processing
Trade Business according to the Interim Measures for Examining and Approving the Domestic Sales of Bonded Import Materials of Processing
Trade. In case any commodity to be sold in domestic market involves quota, license or any other special administrative measure, it
shall still be submitted to the provincial competent commerce department or the Ministry of Commerce for approval as required.

The competent commerce departments at each level shall, by considering the requirements mentioned above and the actual situation of
the locality, perfect each control measure, do well in self-inspection and rectification, find out the real situation of all the
processing trade enterprises within your respective jurisdiction and timely report the problems and situation found out. The provincial
competent commerce departments shall supervise the examination and approval organs at lower levels, handle and report behaviors of
examining and approving by exceeding power or issuing certificate not through the e-networked approval/administration system for
processing trade once found out, work hard in statistical analysis and summarize the experiences of outstanding entities, timely
report them to the higher authorities as well.

The Ministry of Commerce

April 12, 2007

The Ministry of Commerce
2007-04-12

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING NANCHANG ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Nanchang Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 24

Nanchang Municipal People’s Government and Nanchang Economic-Technological Area,

Upon research, we hereby authorize the Management Committee of Nanchang Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

The Management Committee of Nanchang Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

The Management Committee of Nanchang Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

Nanchang Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Nanchang Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)

Ministry of Commerce
2007-02-12

PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROCEDURES FOR HANDING ADMINISTRATIVE PENALTY CASES

Decree of the General Administration of Customs

No. 159

The Provisions of the Customs of the People’s Republic of China on the Procedures for Handing Administrative Penalty Cases have been
deliberated and adopted at the executive meeting of the General Administration of Customs on February 14, 2007. They are hereby promulgated
and shall enter into force as of July 1, 2007.
Director Mou Xinsheng

March 2, 2007

Provisions of the Customs of the People’s Republic of China on the Procedures for Handing Administrative Penalty Cases
Contents
Chapter I General Rules

Chapter II General Provisions

Chapter III Case Investigation

Section 1 Case Filing

Section 2 Interrogation and Inquiry

Section 3 Check and Examination

Section 4 Testing and Authentication

Section 5 Inquiry about Deposits and Remittances

Section 6 Detention and Security

Section 7 Suspension and Termination of Investigations

Chapter IV Decisions on Administrative Penalty

Section 1 Case Examination

Section 2 Notification, Reexamination and Hearing

Section 3 Treatment Decisions

Chapter V Implementation of Decisions on Administrative Penalty

Chapter VI Procedures for Handling Simple Cases

Chapter VII Supplementary Rules
Chapter I General Rules

Article 1

In accordance with the Administrative Penalty Law of the People’s Republic of China, the Customs Law of the People’s Republic of
China, the Regulation of the Customs of the People’s Republic of China on Implementing Administrative Penalties (hereinafter referred
to as the Regulation on Implementing Customs Administrative Penalties) and other related laws and administrative regulations, the
present Provisions are formulated in order to regulate the procedures for customs houses to dispose of administrative penalty cases
and protect the lawful rights and interests of citizens, legal persons and other organizations.

Article 2

Unless it is otherwise prescribed by any law or administrative regulation, the handling of administrative penalty cases by customs
houses shall be subject to the present Provisions.

For the investigation into smuggling crimes by customs houses and the handling of public security administrative penalty cases by
public security organs, the Law of the People’s Republic of China on Public Security Administrative Penalties and the Provisions
Concerning the Procedures for Handling Administrative Cases by Public Security Organs shall apply.

Article 3

For handling of administrative penalty cases by customs houses, the principles of justness, openness, timeliness and facilitating
people shall be followed.

Article 4

For handling administrative penalty cases in a place where any minority ethnic group or by several minority ethnic groups reside,
the language commonly used in the local place shall be used for interrogating and inquiring.

An interpreter shall be provided where any related party does not know the language commonly used in that place.

Article 5

The state secrets, business secrets, customs secrets or personal privacy it has access to during the process of handling administrative
penalty cases shall be kept secret by the customs.

Chapter II General Provisions

Article 6

Where the customs house finds that any illegal act ought to be handled by any other administrative organ or the criminal investigation
organ, it shall make a case forwarding letter, and forward the case to the competent administrative organ or the criminal investigation
organ to be treated in a timely manner.

Article 7

There shall be at least 2 or customs officers (hereinafter referred to as case handlers) for handling an administrative penalty case
when making investigations and collecting evidence, and their law enforcement certificates shall be shown to the parties involved
or related persons.

Article 8

A case handler shall withdraw under any of the following circumstances, and any party involved or the agent thereof has the right
to apply for his withdrawal:

(1)

He is a party involved or a close relative thereof;

(2)

He himself or any of his close relatives has an interest in the case; or

(3)

He has any other relationship with any party involved, which so may affect impartial disposal of the case.

Article 9

The withdrawal of a case handler shall be determined by the director of the customs house directly under the General Administration
of Customs or the subordinate customs house he belongs to.

Article 10

Where any case handler requires for withdrawal, he shall submit a written application and give the reasons.

Where any circumstance under which a case handler should withdraw arises, but he fails to apply for withdrawal, and the party involved
and the agent thereof also fail to do so, the director of the customs house enpost_titled to determine his withdrawal may order him to
withdraw.

Where any party involved or the agent thereof requires the withdrawal of a case handler, he shall submit an application and give the
reasons. In the case of an oral application, the customs house shall make a record.

Article 11

As regards an withdrawal application submitted by the party involved or the agent thereof, the customs house shall, within 3 working
days, make a decision and notify the decision to the applicant in written form.

In case any party involved or the agent thereof is dissatisfied with the rejection of an withdrawal application by the customs house,
he may, within 3 working days upon receipt of the written notice, apply for review for one time to the customs house that has made
the decision, which shall make a review decision within 3 working days and inform the applicant of the decision.

Article 12

Before a decision on withdrawal is made by the customs house, the case handler may not stop the handling of the administrative penalty
case. Whether the activities relevant to the case as made by the said case handler before the decision on withdrawal is made are
effective or not shall be determined by the customs house that makes the decision on withdrawal by considering the circumstances
of the case.

Article 13

The withdrawal of the person making the testing, appraiser or interpreter shall be subject to Articles 8 through 12 of the present
Provisions.

Article 14

The types of evidence for customs houses to handle administrative penalty cases mainly include:

(1)

documentary evidence;

(2)

physical evidence;

(3)

audio-visual materials, and electronic data;

(4)

witnesses’ testimony;

(5)

testing reports and authentication conclusions;

(6)

statements of the parties involved; and

(7)

record of check and inspection.

Any item of evidence may not be taken as the basis for determining facts before it is verified upon investigation.

Article 15

The physical evidence and documentary evidence as gathered by the customs house shall be original. In case it is really difficult
to gather the originals, the pictures, videos and photocopies thereof sufficiently reflecting the contents or forms of the originals
may be taken, and the customs house may designate or entrust related entities or individuals to appropriately keep the originals.

For collecting the originals of physical evidence and documentary evidence, the customs house shall make a list with the date of collection
indicated, and ask entities or individuals involved to affix their seals or signatures upon confirmation.

For collecting the reproductions, photocopies or transcripts of the original documentary evidence kept by entities or individuals
involved, the sources thereof and the time of collection shall be indicated and the seal or signature of the entity or individual
involved shall be affixed upon verification.

For collecting the pictures and videos of the original physical evidence as kept by entities or individuals involved, a written explanation
about the production process and the storage place of originals shall be attached, and the entities or individuals involved providing
the originals shall affix their seals or signatures on the written explanations.

In case the entities or individuals involved providing the originals refuse to affix their seals or signatures, the case handlers
shall state the circumstance clearly.

Article 16

When collecting electronic data or such audio-visual materials as videos and visuals, etc., the customs house shall collect their
original carriers. In case it is really difficult to gather original carriers, duplicates thereof may be gathered, provided that
production methods, production time, producers, objects of proof as well as the storage places of the original carriers shall be
indicated, and the seals or signatures of the entities or individuals involved shall be affixed upon confirmation.

As regards the gathered duplicates of electronic data or audio-visual materials, etc., the customs house shall carry out the evidence
conversion, timely print electronic data into paper materials if possible, add attach written records to the audio materials’ vocal
contents, and ask entities or individuals involved to affix their seals or signatures upon confirmation.

Article 17

Unless it is otherwise prescribed by any law, where an illegal act has not been found within two years, no administrative penalty
may be imposed any more.

The time limit as prescribed in the preceding paragraph shall be calculated as of the date of the occurrence of the illegal act; while
it shall be calculated as of the day when the illegal act terminates in case the illegal act is in a state of continuity or incessancy.

Article 18

Time limits shall be calculated on the basis of the hour, day, month or year. The hour or day when a time limit starts may not be
included. The first working day after the holiday or rest day shall be the expiration day of the time limit, if the expiration day
is a statutory holiday or rest day.

The time limit shall exclude the time spent on the way. In case the delivery to the post has been conducted prior to the expiry of
a statutory time limit, it may not be regarded as overdue.

Article 19

Where any party involved misses the time limit by virtue of an insurmountable cause or any other justified cause, he can, within
10 days after the said cause is eliminated, apply to the customs house for postponing the time limit, and whether his application
will be permitted shall be determined by the customs house.

Article 20

Administrative legal documents shall be directly served to the addressee himself by the customs house. Where the addressee is an
unavailable citizen, his adult family member living together with him shall sign and accept the legal document; in the case of a
legal person or any other organization, the legal representative of the legal person or the main principal of any other organization,
or the person in charge of the mails of this legal person or organization shall sign and accept it; and where the addressee has entrusted
an agent for accepting legal document, the legal document may be served to this agent for signature and acceptance.

Where an administrative legal document is served directly, the addressee’s signature or seal shall be affixed on the receipt of service
and the date of receipt shall be indicated. The date of receipt indicated in the receipt of service shall be the date of service.

Article 21

Where the addressee himself or his adult family member living together reject accepting an administrative legal document or reject
affixing his signature or seal, the addressor shall invite the witnesses to be present at the scene, explain the situation, illustrate
the causes for refusal and the date on the receipt of service, affix the signatures or seals of themselves and the witnesses, and
leave the administrative legal document at the addressee’s domicile, then the administrative legal document shall be deemed as having
been served.

Article 22

In case it is difficult to directly serve an administrative legal document, the customs house may entrust another customs house to
conduct the service or serve by post.

Where the customs house entrusts another customs house to conduct the service, a power of attorney shall be given to the entrusted
customs house, which shall show the power of attorney to the parties involved.

As regards service by post, a receipt of service shall be attached, and the date of service shall be the date of receipt as indicated
in the receipt of service; and if the receipt of service has not been posted back, the date of service shall be the date of receipt
indicated in the receipt of registered letter or the inquiry letter.

Article 23

As regards the service of administrative legal documents by the customs house to foreigners, stateless persons, foreign enterprises
or organizations having a domicile within the territory of the People’s Republic of China, Articles 20 through 22 of the present
Provisions shall apply.

The customs house shall, if available, serve the administrative legal documents directly to foreigners, stateless persons, foreign
enterprises or organizations with no domicile within the territory of the People’s Republic of China. Where the addressee has entrusted
an agent for accepting legal documents, the customs house may serve directly to the agent or the representative office, or the branch
or business agent enpost_titled to accept the service of legal documents as set up within the territory of the People’s Republic of China.
Where the customs house objects to the entrustment, the power of attorney as notarized by the notary organ may be required to be
provided.

In the case of any difficulty in directly serving an administrative legal document, where the service by post is permitted by the
law of the addressee’s country, the administrative legal document may be served by post.

As regards the service of legal documents to Hong Kong, Macao and Taiwan by the customs house, the service of administrative legal
documents to foreigners, stateless persons, foreign enterprises or organizations with no domicile within the territory of the People’s
Republic of China shall be referred to.

Article 24

Where the addressee is a serviceman, the documents shall be delivered to him via the political organ at or above the regimental level
under his working army.

Where the addressee is imprisoned or reeducated through labor, the documents shall be delivered to him via the prison or the place
of labor reeducation where he is serving his term.

The date of service shall be the date of receipt as filled in the receipt of service by the addressee.

Article 25

Where a document can not be served by those service means as mentioned in Articles 20 through 24 of the present Provisions, the document
shall be served by public notice.

Where served by public notice, the original of the administrative legal document shall be posted on the customs house’s bulletin board.
Where an administrative penalty decision is served by public notice, a public notice thereof shall also be publicized on the newspaper.

In the case of the service by public notice, sixty days after the date when the public notice is publicized, the service shall be
deemed as successful. In the case of the service to a party involved without domicile within the territory of the People’s Republic
of China by public notice, six months after the public notice is publicized, the service shall be deemed as successful.

Where it is otherwise prescribed on the special methods of service in any law or administrative regulation or the international convention
that our country has entered into or acceded to, such provisions shall prevail.

Article 26

In the case of authentic illegal facts and legal basis, an administrative penalty of a fine of 50 Yuan or less (for a natural person)
or 1,000 Yuan or less (for a legal person or any other organization) or a warning may be imposed on the site in accordance with the
related provisions in Section 1 of Chapter V of the Law of the People’s Republic of China on Administrative Penalties.

Chapter III Case Investigation

Section 1 Case Filing

Article 27

Where the customs house finds any act committed by any citizen, legal person or any other organization, for which an administrative
penalty should be given, it shall put the case on file and conduct investigations.

Article 28

Where the clues about an illegal act, which the customs house has accepted or founded, falls within any of the following circumstances
upon verification, the customs house may not put the case on file:

(1)

No illegal fact exist;

(2)

The prescribed time limit for THE punishment of the illegal act has passed; or

(3)

Any other circumstance under which the case should not be put on file.

Where the customs house decides not to put a case on file, a notice of not filing the case shall be made, and timely noticed to the
tip-off maker, the clues-transferring organ or the suspected offender who has surrendered himself to justice.

Section 2 Interrogation and Inquiry

Article 29

The case handlers shall interrogate suspected offenders or inquire witnesses separately, and inform them of their rights and their
legal liabilities for falsely testifying.

A suspected offender or witness shall make statements and provide evidence according to the facts.

Article 30

A suspected offender may be interrogated at his work place or domicile, or at the customs house or a designated place as required
by the case handlers.

The case handlers may inquire a witness at his work place or domicile, or may, if necessary, request him to the customs house or a
designated place for the inquiry.

Article 31

For the interrogation or inquiry, transcripts thereof shall be made.

The items on the transcripts of interrogation or inquiry shall be completely filled in pursuant to the provisions, and the time for
commencing and ending the interrogation or inquiry shall be indicated, and the case handlers shall affix their signatures on the
transcripts.

The transcripts shall be submitted to the person being interrogated or inquired for verification or be read out to him on the site.
After the person being interrogated or inquired have verified the transcripts to be free from any mistake, he shall put his signature
or fingerprint to each page of the transcripts. Where he rejecting affixing his signature or fingerprint, the case handlers shall
record the situation down in the transcripts. Where there is any mistake or omission in the transcripts, the person being interrogated
or inquired shall be allowed to make corrections or supplementations, and his signature or fingerprint shall be affixed at the places
of corrections or supplementations.

Article 32

When a deaf or dumb person is being interrogated or inquired, a person who knows the gestures of the deaf and dumb people shall be
present at the scene, and the transcripts shall indicate the basic information about the deaf or dumb person being interrogated or
inquired.

When a foreigner or stateless person who does not know the language of China is being interrogated or inquired, an interpreter shall
be provided for him; where the person being interrogated or inquired knows the language of China and no interpreter is needed, he
shall issue a written statement, and the case handlers shall indicate it in the transcripts of interrogation or inquiry.

The name, employer and vocation of an interpreter shall be indicated in the transcripts of interrogation or inquiry. And his name
shall be affixed on the transcripts of interrogation or inquiry.

Article 33

When a suspected offender or witness is interrogated or inquired for the first time, the customs house shall inquire his name, birth
date, place of permanent residence, current address, type and number of identity card, employer, educational background, whether
any criminal or administrative penalties has been imposed on him, etc.; and shall inquire his main family members, etc. when necessary.

When a suspected offender or witness under 18, his parent or any other guardian shall be called to be present at the scene. In case
it is impossible to notify them or they fail to be present at the scene after being notified, such situation shall be indicated in
the transcripts.

Article 34

Where a person being interrogated or inquired requires for providing written statements by himself, it shall be allowed, and the
case handlers may also request the person being interrogated or inquired to write down his statements by himself when necessary.

Where a person being interrogated or inquired provides written statements by himself, his signature shall be affixed on his written
statements and the time, and place for writing down the statements as well as the subject for such statement shall be indicated.
After having received the written statements, the case handlers shall record down the date of receipt, and affix their signatures
for confirmation.

Article 35

When interrogation or inquiry is made, audio or video records, in addition to written transcripts, may be made if necessary.

Article 36

The case handlers shall carefully hear the statements of the suspected offender and the witness, and set the record straight.

Any case handler may not obtain statements by such illegal means as violence, menace, lure, fraud, etc..

Section 3 Inspection and Examination

Article 37

When the case handlers check transport vehicles and places or examine goods and articles, transcripts of inspection or examination
shall be made. The transcripts shall bear the signatures of the case handlers and the parties involved or their agents; and where
any party involved or the agent thereof is not present at the scene or rejects affixes his name or seal, the case handlers shall
indicate the situation in the transcripts, and ask the witnesses to sign or seal.

Article 38

When a suspected smuggler is under the case handlers’ inspection, the inspection shall be carried out by two or more case handlers
with identical sex to the person being inspected at a covered place or outside the sight of others than inspectors.

The inspection of the body of a suspected smuggler may be carried out under a doctor’s assistance, and if necessary, a professional
inspection may be made at a medical institution.

Section 4 Testing and Authentication

Article 39

Where, during the process of investigating a case, it is necessary to draw samples of related goods or articles for testing or authentication,
the samples shall be drawn by the customs house or by a testing or authentication institution entrusted by the customs house. At
the time of drawing samples, the parties involved or their agents shall be present at the scene; and where any party involved or
its agent is not present at the scene, witnesses shall be invite by the customs house to be present at the scene.

The samples as drawn shall be sealed for confirmation, and the transcripts on drawing samples shall be made, and the signatures or
seals of the case handlers, the staff members of the testing or authentication institution entrusted by the customs house, the parties
involved or agents thereof as well as the witnesses shall be affixed.

The samples as drawn by the customs house shall be sent to the testing or authentication institution for testing or authentication
in a timely manner.

Article 40

In case related goods or articles will be sold off or discharged by the customs house in the first place, the customs house shall
draw the samples thereof in duplicate or more; and the number of samples and the quantity of each sample shall be enough for determining
the features of related goods or articles.

Article 41

The testing or authentication shall be carried out by the customs house’s testing and authentication institution or any other state-recognized
institution as entrusted by the customs house. Related materials shall be provided by the holder or owner thereof as required for
the testing or authentication.

Article 42

A person conducting the testing or authentication shall issue a testing report or an authentication conclusion after testing or authentication.

The trustor, matters entrusted for testing or authentication, related materials provided for the testing or authentication institution,
basis for testing or authentication, scientific technical means as adopted, testing or authentication institution, instructions about
the qualification of the persons who carry out the testing or authentication, shall be indicated in a testing report or an authentication
conclusion, and signatures of the persons who carry out the testing and authentication as well as the seal of the testing or authentication
institution shall be affixed Where an authentication conclusion is drawn by analysis, the analysis process shall be indicated.

Article 43

Where any party involved is dissatisfied with the testing report or authentication conclusion, he may apply for a new testing or
authentication; and a new testing or authentication shall be conducted if the customs house finds upon examination that there are
justifiable reasons for a new testing or authentication.

The testing or authentication expenses shall be assumed by the customs house. However, when any party involved applies for a new testing
or authentication, the testing or authentication expenses shall be assumed by the customs house if the original testing or authentication
conclusion has been altered,, otherwise, the testing or authentication expenses shall be assumed by the applicant for the new testing
or authentication.

Section 5 Inquiry about Deposits and Remittances

Article 44

In case, when investigating a smuggling case, the case handlers inquire about the deposits or remittances of a suspected entity or
individual in financial institutions or postal service enterprises, the approval of the director of the customs house directly under
the General Administration of Customs or the subordinate customs house authorized by it shall be obtained.

Article 45

When inquiring about the deposits or remittances of a suspected entity or individual in financial institutions or postal service
enterprises, the case handlers shall show their law enforcement identities and present a customs notice on assistance for inquiry.

Section 6 Detention and Security

Article 46

The case handlers shall, when detaining any goods, articles, transport vehicles, other properties, account books, documents or other
materials, show their law enforcement certificates, make a detention voucher and serve it to the parties involved, inform the parties
involved of the reasons and basis for detention as well as their rights on the site.

A detention voucher shall indicate the names, specifications, quantities and weights, etc. of the detained goods, articles, transport
vehicles or other properties. In case it is impossible to determine the name, specifications, quantities and weights, etc. of the
detained goods, articles, transport vehicles or other properties, external features thereof shall be described as particularly as
possible. The signatures or seals of the case handlers, the parties involved or their agents as well as the keeper shall be affixed
to a detention voucher; and where any party involved or the agent thereof is not present at the scene or rejects affixing his signature
or seal, the case handlers shall indicate such situation in the detention voucher, and ask the witnesses to sign or seal.

The goods, articles, transport vehicles, other properties, account books, documents or other materials that have been legally detained
by the customs house may be sealed with a customs mark. The parties involved or their agents and the keeper shall keep them appropriately
after the customs mark has been affixed.

Article 47

The term for the customs house to detain goods, articles, transport vehicles, other properties, account books, documents or other
materials may not exceed one year. For satisfying the needs of investigating a case, the term may, upon approval by the director
of the customs house directly under the General Administration of Customs or the subordinate customs house authorized by it, be prolonged
for one year or less. However, the term for reconsideration or litigation may not be included.

Article 48

Where the detained goods or articles that are dangerous, fresh, perishable, easy to decay, expire or deteriorate or are unfit for
a long-term storage, or whose owner applies for advance sale need to be sold off in advance before the people’s court renders a judgment
or the customs house makes an administrative penalty decision, the approval of the director of the customs house directly under the
General Administration of Customs or the subordinate customs house authorized by it shall be obtained.

The customs house shall, prior to the sale, notify the owner of goods, articles or transport vehicles to be sold off in advance. Where
the notification could not be made prior to the sale, the customs house shall, after they have been sold off, notify it to the owner
of goods, articles or transport vehicles.

Article 49

For discharging the detention of goods, articles, transport vehicles, other properties, account books, documents or other materials,
a notice on discharging detention shall be made by the customs house and served to the parties involved. The signatures or seals
of the case handlers, the parties involved or their agents as well as the keeper shall be affixed to a notice on discharging detention;
and where any party involved or its agent is not present at the scene or rejects affixing his signature or seal, the case handlers
shall indicate such situation in the notice on discharging detention, and ask the witnesses to sign or seal.

Article 50

In case it is impossible or inconvenient to detain the goods, articles or transport vehicles suspected of being involved in a violation,
the case handlers shall make a voucher on receipt of security and serve it to the party involved or the person in charge of transport
vehicles, if the party involved or the person in charge of transport vehicles provides the security to the customs house. The voucher
on receipt of security shall be affixed with the signatures or seals of the case handlers, the parties involved, the person in charge
of transport vehicles or their agents.

After the security is received, the goods, articles or transport vehicles involved may be photographed or videoed for archival filling.

Article 51

Where the customs house discharges the security in accordance with law, it shall make and issue a notice on discharging security
and serve it to the parties involved or the person in charge of transport vehicles. The signatures or seals of the case handlers,
the parties involved, the person in-charge of transport vehicles or their agents as well as the keeper shall be affixed to a notice
on discharging security. Where any party involved, the person in charge of transport vehicles or his agent is not present at the
scene or rejects affixing his signature or seal, the case handlers shall indicate such situation in

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON INTENSIFYING INVESTIGATION INTO AND ANALYSIS OF TRANSFER PRICING

Circular of the State Administration of Taxation on Intensifying Investigation into and Analysis of Transfer Pricing

Guo Shui Han [2007] No. 363

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government, and cities specifically designated in the state plan,

With a view to regulating the investigation into and analysis of the cases concerning transfer pricing of all regions and enhancing
the quality of such investigations, the related issues are hereby clarified as follows in accordance with Article 51 of the Detailed
Rules for the Implementation of the Law of the People’s Republic of China on the Administration of Tax Collection and the related
provisions in the Rules of the State Administration of Taxation for the Taxation Management Rules for the Businesses between Associated
Enterprises (Guo Shui Fa [2004] No. 143 ):

Every region shall intensify the functional risk analysis of the enterprises under investigation, and the enterprises that accept
the transfer pricing investigation shall fill in the Analysis Form on Enterprise Functional Risks. The competent taxation authority
shall fill in the Confirmation Form on the Analysis of Enterprise Functional Risks in light of the Analysis Form on Enterprise Functional
Risks as filled in by the enterprise and by referring to other related conditions it has known through investigation, and shall submit
these two forms to the State Administration of Taxation together.

Every region shall intensify the related financial analysis of associated transactions conducted by the enterprises under investigation,
and fill in the Financial Analysis Form on the Associated Transactions between Enterprises on the basis of anti-tax avoidance investigation,
and report it and the archival filing report and the case settlement report to the State Administration of Taxation.

Attachments:

Analysis Form on Enterprise Functional Risks (omitted)

Confirmation Form on the Analysis of Enterprise Functional Risks (omitted)

Financial Analysis Form on the Associated Transactions between Enterprises (omitted)

State Administration of Taxation

March 27, 2007

State Administration of Taxation
2007-03-27

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Tax

IMPLEMENTING REGULATIONS FOR THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON INSPECTION OF IMPORT AND EXPORT COMMODITY

REPLY OF THE STATE COUNCIL ON APPROVING THE ADJUSTED LIST OF DUAL-USE BIOLOGICAL PRODUCTS AND RELATED FACILITIES AND TECHNOLOGIES...

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE RELATED MATTERS ON ADMINISTERING SHORT-TERM FOREIGN DEBTS OF FINANCIAL INSTITUTIONS IN 2007

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE TAX MATTERS ABOUT THE RESTRUCTURING OF FOREIGN BANK BRANCHES INTO SOLELY FOREIGN-INVESTED BANKS

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CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING NANCHANG ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROCEDURES FOR HANDING ADMINISTRATIVE PENALTY CASES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON INTENSIFYING INVESTIGATION INTO AND ANALYSIS OF TRANSFER PRICING

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