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PROVISIONS FOR ADMINISTERING THE PROCESSES FOR THE NULLIFICATION OF PRODUCTION LICENSES FOR INDUSTRIAL ARTICLES

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

No. 93

The Provisions for Administering the Processes for the Nullification of Production Licenses for Industrial Articles have been deliberated
and adopted at the executive meeting of the State Administration of Quality Supervision, Inspection and Quarantine on November 27,
2006. They are hereby promulgated, and shall go into effect as of March 1, 2007.
Director General Li Changjiang

December 31, 2006

Provisions for Administering the Processes for the Nullification of Production Licenses for Industrial Articles
Chapter I General Rules

Article 1

For the purpose of regulating the processes for the nullification of production licenses for industrial articles, protecting the
legitimate rights and interests of citizens, legal persons and other organizations, and maintaining the social and economic order,
these Provisions are formulated according to the Administrative License Law, the Administrative Penalty Law, the Product Quality
Law, the Regulations for Administering Production Licenses for Industrial Articles as well as other relevant laws and administrative
regulations.

Article 2

These Provisions shall apply to the implementation of the processes for the nullification of production licenses for industrial articles.

The term “industrial articles” as mentioned in these Provisions refers to the articles (including food and related articles) specified
in the Regulations for Administering Production Licenses for Industrial Articles.

The term “processes for the nullification of a production license” as mentioned in these Provisions refers to the procedure in which
the eligibility of production license acquired by the licensee is lawfully withdrawn, cancelled or revoked, or is lawfully terminated
by virtue of any other statutory circumstance, and the nullification processes are gone through according to law.

Article 3

The implementation of the processes for the nullification of production licenses shall follow the principles that the facts are clear
and the evidence is conclusive, as well as the principles of publicity, impartiality and justness.

Article 4

The supervisory department of quality and technology at each level shall withdraw, revoke and terminate production licenses and handle
the processes for the nullification of production licenses according to these Provisions. In case otherwise provisions are made in
any other law or administrative regulation, such provisions shall prevail.

Chapter II Withdrawal and Revocation of Production Licenses

Article 5

A decision on withdrawal of the production license shall be made under any of the following circumstances:

(1)

The law, regulation or rules on the basis of which the production license is granted are revised or repealed, and thus the item under
the production license is terminated according to law;

(2)

The actual circumstance on which the production license is based has been materially changed, and thus the production license is terminated;

(3)

The articles licensed for production are listed into the catalogue of articles to be phased out by the state or whose production is
forbidden by the state; or

(4)

Other stations under which the production license shall be withdrawn according to law.

Article 6

A decision on revoking the production license shall be made, in case a licensee is under any of the following circumstances:

(1)

The licensee obtains the production license by means of fraud, offering bribery or in other foul means;

(2)

The licensee has obtained the production license but is unable to consecutively maintain the necessary conditions, and fails to make
corrections within the time limit; or

(3)

Other circumstances under which the production license shall be revoked according to law.

In case a licensing authority or any licensing functionary is under any of the following circumstances, sanctions shall be imposed
upon it/him according to the Regulations for Administering Production Licenses for Industrial Articles, and a decision on revoking
the production license may be made:

(1)

making a decision on granting the production license by abusing its/his power or by neglecting its/his duties;

(2)

making a decision on granting the production license by exceeding the statutory power;

(3)

making a decision on granting the production license with violation of the statutory processes;

(4)

granting a production license to an applicant who is unqualified or who fails to satisfied the statutory requirements; or

(5)

other circumstances under which the production license may be revoked according to law.

In case the revocation of a production license according to the preceding two paragraphs might bring on major damages to public interests,
the production license may not be revoked.

Article 7

The withdrawal or revocation of a production license shall be decided on by the supervisory department of quality and technology
that grants the production license in accordance with law.

The supervisory department of quality and technology at a higher level may revoke the production licenses granted by the departments
at lower levels.

Article 8

In case the supervisory department of quality and technology at any level finds any circumstance under which a production license
shall be withdrawn or revoked in its supervision or administration, it shall conduct an investigation and gather evidences according
to the related provisions, propose its opinions on the withdrawal or revocation, and report to the supervisory department of quality
and technology that grants the production license pursuant to the prescribed requirements level by level.

Article 9

The supervisory department of quality and technology shall, before making a decision on withdrawing or revoking a production license,
inform the licensee of the facts, grounds and opinions on withdrawing or revoking the production license, and hear the licensee’s
statements and arguments.

The supervisory department of quality and technology shall verify the statements and arguments put forward by the licensee and adopt
them in case they are tenable.

Chapter III Termination of Production Licenses

Article 10

A decision on revocation of the production license shall be made, in case a licensee is under any of the following circumstances:

(1)

The licensee fails to indicate the mark or serial number of the production license on the articles, packages or instructions according
to legal provisions, and fails to make corrections within a time limit after being ordered to do so, and the circumstance is serious;

(2)

The licensee leases, lends or transfers its license certificate, mark or serial number of the production license, and the circumstance
is serious;

(3)

The articles are found to be unqualified from the supervision and spot check conducted by the administrative department at the national
or provincial level, and are found to be still unqualified from re-check even after rectification; or

(4)

Other circumstances under which the production license shall be terminated according to law.

Article 11

An administrative penalty decision on terminating a production license shall be made by the supervisory department of quality and
technology at the place where the licensee is located in accordance with its jurisdictional power and subject to the processes for
handling cases, who shall also be responsible for the enforcement of the decision. Before making the administrative penalty decision
on terminating the production license, the supervisory department of quality and technology at the place where the licensee is located
shall, according to the provisions , report to the supervisory department of quality and technology that grants the production license
for approval level by level.

Article 12

In case a supervisory department of quality and technology at any level finds any circumstance under which the licensee’s production
license shall be terminated in its supervision or administration, it shall notify the supervisory department of quality and technology
at the place where the licensee is located to implement Article 11 of these Provisions.

Article 13

Before making an administrative penalty decision on terminating a production license, the supervisory department of quality and technology
shall, according to the provisions on the processes for handling cases, propose its opinions on terminating the production license,
hear the licensee’s statements and arguments, and inform the licensee of the right to file an application for hearing.

In case the licensee requires a hearing within the provisioned time limit, the hearing shall be held according to the related rules
on hearing.

Article 14

After the licensee’s statements and arguments are heard or after the hearing ends, in case the supervisory department of quality
and technology holds that the licensee’s illegal facts are clear and the evidence is conclusive, it shall, according to the prescribed
requirements, report the written suggestion on terminating the production license and other related information to the supervisory
department of quality and technology that granted the production license level by level.

The supervisory department of quality and technology that grants the production license shall make a reply according to the related
provisions in a timely manner.

The supervisory department of quality and technology at the place where the licensee is located shall, in accordance with the reply
of the production license-granting department concerning consent with the termination, make an administrative penalty decision to
the licensee on terminating the production license and shall be responsible for the enforcement of the decision.

Chapter IV Handling of the Nullification Processes

Article 15

Where any of the following circumstances arises, the processes for the nullification of the production license shall be gone through
according to law:

(1)

The production license is withdrawn, revoked or terminated according to law;

(2)

The valid term of the production license has expired but is not extended;

(3)

The licensee has been terminated according to law;

(4)

The item in the production license is unable to be carried out because of force majeure; or

(5)

Other circumstances as provisioned in any law or regulation under which the production license shall be nullified.

Article 16

In case e a production license is withdrawn, revoked or terminated according to law, the supervisory department of quality and technology
that grants the production license shall handle the nullification processes according to law.

Article 17

In case a production license shall be nullified owing to any other circumstance, the supervisory department of quality and technology
at each level may put forward suggestions based on the facts, and report to the supervisory department of quality and technology
that grants the production license; the department that grants the production license shall handle the nullification processes according
to the related provisions in a timely manner.

Article 18

The supervisory department of quality and technology that grants production licenses shall be responsible for announcing the name
list of the licensees whose production licenses have been nullified, or other related matters.

Chapter V Supplementary Rules

Article 19

In case a supervisory department of quality and technology or any staff thereof is violates any law, regulation or rule in the withdrawal,
revocation, termination or nullification of production licenses, it/he shall be punished according to the related provisions on law
enforcement administrative supervision and those on the investigation of liabilities for faults in law enforcement administration.

Article 20

The legal affairs office and the administrative supervision office of the supervisory department of quality and technology shall
intensify their supervision over the withdrawal, revocation, termination and nullification work of the production license handling
institution and the law enforcement institution.

Article 21

In case, after a production license is nullified, the licensee continues its production, the supervisory department of quality and
technology shall punish it according to the related provisions on the investigation and punishment of the activity of conducting
production without a permit.

Article 22

The State Administration of Quality Supervision, Inspection and Quarantine shall be responsible for the interpretation of these Provisions.

Article 23

These Provisions shall go into effect as of March 1, 2007.



 
The State Administration of Quality Supervision, Inspection and Quarantine
2006-12-31

 







ANNOUNCEMENT NO.96, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS, PROMULGATING CATALOG OF COMMODITIES UNDER ADMINISTRATION OF IMPORT AND EXPORT LICENSE OF DUAL-USE SUBSTANCES AND TECHNOLOGIES

Announcement No.96, 2006 of Ministry of Commerce and General Administration of Customs, Promulgating Catalog of Commodities under
Administration of Import and Export License of Dual-use Substances and Technologies

[2006] No. 96

In accordance with Administrative Measures on Import and Export License of Substances and Technologies of Double Functions (Decree
No.29, 2005 of Ministry of Commerce and General Administration of Customs, hereinafter refereed to as “Administrative Measures”),
Ministry of Commerce and General Administration of Customs adjusted Catalog of Commodities under Administration of Import and Export
License of Dual-use Substances and Technologies enclosed in Administrative Measures. The adjusted Catalog of Commodities under Administration
of Import and Export License of Dual-use Substances and Technologies is now announced (refer to the appendix).

Importers of radioactive isotope shall report to State Environmental Protection Administration for examination and approval in line
with regulations of Regulations on Security and Protection of Radioactive Isotope and Radial Apparatus, and apply for license of
dual-use substances and technologies to Quota Affairs Bureau of Ministry of Commerce in accordance with Administrative Measures.
The Customs will go through formalities clearance in line with import license of dual-use substances and technologies issued by Quota
Affairs Bureau of Ministry of Commerce.

This announcement will take effect as from January 1, 2007, Catalog of Commodities under Administration of Import and Export License
of Dual-use Substances and Technologies and Catalog of Radioactive Isotope of Import Restricting enclosed in Administrative Measures
(Announcement No.2 of Ministry of Commerce, General Administration of Customs, State Environmental Protection Administration, and
General Administration of Quality Supervision, Inspection and Quarantine) will be terminated at the same time.

Appendix: Catalog of Commodities under Administration of Import and Export License of Dual-use Substances and Technologies

The Ministry of Commerce

The General Administration of Customs

December 30, 2006



 
The Ministry of Commerce, the General Administration of Customs
2006-12-31

 







CIRCULAR OF MOFCOM, NDRC, GAC, GAQSIQ, CAA OF THE PEOPLE’S REPUBLIC OF CHINA ON REGULATING EXPORT ORDER OF AUTOMOBILE

Circular of MOFCOM, NDRC, GAC, GAQSIQ, CAA of the People’s Republic of China on Regulating Export Order of Automobile

Shang Chan Fa [2006] No. 629

Administrative commercial departments, development and reform commissions of all provinces, autonomous regions, municipalities directly
under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps, Guangdong
branch of General Administration of the Customs, and its special commissioners’ offices in Tianjin and Shanghai, and all Customs
directly under General Administration of Customs, bureaus of quality and technical supervision in all provinces, autonomous regions
and municipalities, administrations for entry-exit inspection and quarantine directly under GAQSIQ, and related enterprises:

For the purposes of regulating export order of automobiles, transforming increasing mode of automobile export, advancing quality and
efficiency of export increasing and promoting the healthy development of the automobile industry, and in accordance with Foreign
Trade Law of the People’s Republic of China, Customs Law of the People’s Republic of China, Commodity Inspection Law of the People’s
Republic of China, Automotive Industry Development Policy, Regulations of the People’s Republic of China on Certification and Accreditation
as well as other relevant laws and regulations, related ministries and commissions decide to carry out export license administration
on entire automotive products (including passenger automobile, commercial automobile, chassis and complete set of spare parts, refer
to Appendix 1 for detailed product catalogue). Related matters are hereby notified as follows:

I

Enterprises that apply to the export license for entire automotive products shall meet the following conditions:

1.

Automobile Producing Enterprises

(1)

Listed in Announcement of National Development and Reform Commission on Vehicle Producing Enterprises and Products;

(2)

Approved by China Compulsory Certification (3C Certification) which remains effective; and

(3)

Bearing capability of maintenance and service in conformity with the amount of automobile and a relatively complete sales and service
system in main export markets.

2.

Export Operation Enterprises (including import and export companies to which automobile enterprise groups belong)

(1)

obtaining export authorization of automobile producing enterprises qualified for automobile exportation and export, in accordance
with this authorization, products produced by the above mentioned enterprise; and

(2)

The export operation enterprise shall agree in the authorization with the automobile producing enterprises on that they both shall
jointly undertake joint liabilities such as the quality guarantee and after-sale service concerning the export products.

Automobile producing enterprises (independent judicial person enterprises), that are located in export processing zones and whose
whole products, approved by the State, are made for export, shall not be exempt from the above mentioned conditions.

II

Automobile producing enterprises shall submit related materials of certification and list of authorized export operation enterprises
(no more than 3) to administrative commercial departments (electromechanical products offices) of provinces, autonomous regions,
municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and
Construction Corps where they are located, before October 15 every year. After the preliminary examination by the above-mentioned
administrative commercial departments (electromechanical products offices), the results shall be reported to Ministry of Commerce
(Department of Mechanic, Electronic and Hi-Tech Industry) before October 31.

Enterprises listed in Announcement of National Development and Reform Commission on Vehicle Producing Enterprises and Products that
produce products of the same brand may file the report in the name of a conglomerate.

III

Ministry of Commerce, jointly with National Development and Reform Commission, General Administration of Customs, General Administration
of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration of the People’s Republic of
China shall make known to the public the List of Enterprises Qualified for Application for Export License (hereafter referred to
as List) of the year in November each year. Ministry of Commerce, National Development and Reform Commission, General Administration
of Customs, General Administration of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration
of the People’s Republic of China shall release the List of the year in December each year.

IV

As of January 1 every year, issuance institutions of license authorized by the Ministry of Commerce shall, by virtue of the List release
export license for entire automotive products.

The export license may be applied to the above mentioned products exported by means of ordinary trade, processing trade, frontier
trade and donation trade.

Goods that entering special areas supervised by Customs such as bonded area or export supervised warehouse through areas outside China
or that exported to areas outside China by special areas supervised by Customs such as bonded area or export supervised warehouse,
shall be handled in accordance with related provisions in operation.

V

When exporting entire automotive products listed in Catalogue of Entry-exit Commodities Inspected and Quarantined by the Competent
Entry-exit Inspection and Quarantine authorities, the entire automotive products shall be inspected in the place of production. Inspection
and Quarantine authorities shall accept the report for inspection by virtue of export license for entire automotive products issued
by issuance institutions of license authorized by the Ministry of Commerce.

I

n case the importing countries have requirements on access defined in the law and regulations, certification on access laws and regulations
of the importing countries shall be submitted. In case the access laws and regulations are undefined, related inspections may be
carried out in accordance with regulations of Inspection Law of People’ s Republic of China on Import and Export Commodities and
its implementing rules and in conformity to related criteria designated by General Administration of Quality Supervision, Inspection
and Quarantine.

VI

Customs shall go through formalities of export inspection and release by virtue of export licenses issued by issuance institutions
of license authorized by the Ministry of Commerce as well as Declaration Form of Exit Commodity issued by Inspection and Quarantine
authorities.

VII

Ministry of Commerce, National Development and Reform Commission, General Administration of Quality Supervision, Inspection and Quarantine,
General Administration of Customs and Certification and Accreditation Administration of People’s Republic of China, shall in due
time give early warnings and suggestions to adjust the List respectively in accordance with the operation of export enterprises in
the overseas markets, the administration under Announcement on Vehicle Producing Enterprises and Products, the administrative situation
of everyday inspection and supervision of export automotive products, and supervision on authentication of mandatory products of
enterprises.

VIII

Automotive Industrial organizations shall practice self-discipline, coordinate with enterprises in the List on exportation to key
country markets and put forward early warnings and suggestions to adjust the List.

IX

Export contracts signed by enterprises not listed in List 2007 before January 15, 2007 shall put on file in administrative commercial
departments (electromechanical products offices) of provinces, autonomous regions, municipalities directly under the Central Government,
cities specifically designated in the state plan and Xinjiang Production and Construction Corps before March 20, 2007; Issuance institutions
of license authorized by the Ministry of Commerce shall release export license by virtue of the file on record before August 1, 2007
and the Inspection and Quarantine authorities shall accept the report for inspection by virtue of export license hereof.

X

In case of any item in the following, qualification of entire automotive products export of the next year shall be cancelled:

1.

Providing false certification materials of aptitude;

2.

Products thereof are confirmed to violate IPR by related departments;

3.

Falsifying authorization certification of producing enterprises;

4.

Exporting products neither produced by themselves nor by authorizing enterprises;

5.

Automobiles exported the foreign countries which cause serious quality problems and thus bring about bad influence on Chinese automobile
export; or

6.

Other behaviors in violation of provisions of the present Circular as well as dishonest behaviors.

Export enterprises may report the enterprises that violate laws and regulations to the Ministry of Commerce, National Development
and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine
and Certification and Accreditation Administration of People’s Republic of China. After receiving the report, the Ministry of Commerce,
together with other authorities above mentioned, shall conduct investigation and make decisions based on the results of investigation.

As for relevant behaviors violating regulations of the administration of export license, the Ministry of Commerce and General Administration
of Customs shall be responsible for handling in accordance with relevant provisions of Measures On Administration of Goods Export
License.

XI

For a smooth transition, the deadline of application for automobile producing enterprises in 2007 to local administrative commercial
departments shall be January 15, 2007 and the deadline of application for local administrative commercial departments to the Ministry
of Commerce shall be January 22, 2007. Ministry of Commerce, National Development and Reform Commission, General Administration of
Customs, General Administration of Quality Supervision, Inspection and Quarantine and Certification and Accreditation Administration
of People’s Republic of China shall promulgate List for the Year 2007 in February, 2007 which shall come into force as from March
1, 2007.

XII

Ministry of Commerce takes the responsibility of interpreting the present Circular.

XIII

The present Circular shall come into force as from the day of promulgation.

Appendix:

1.

Catalogue of Automotive Products under Export License Administration(omitted)

2.

List of Enterprises Qualified for Application for Export License (Producing Enterprises)(omitted)

3.

Summary Table of the List of Enterprises Qualified for Application for Export License (Local Electromechanical Products Offices)(omitted)

Ministry of Commerce

National Development and Reform Commission

General Administration of Customs

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration of People’s Republic of China

December 31, 2006



 
Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, General Administration
of Quality Supervision, Inspection and Quarantine, Certification and Accreditation Administration of People’s Republic of China
2006-12-31

 







CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION, THE MINISTRY OF COMMERCE AND THE MINISTRY OF SCIENCE AND TECHNOLOGY ON RELEVANT POLICIES CONCERNING THE PILOT PROGRAM ON ENCOURAGING THE DEVELOPMENT OF TECHNICALLY ADVANCED SERVICE ENTERPRISES IN SUZHOU INDUSTRIAL PARK

Circular of the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce and the Ministry of Science and
Technology on Relevant Policies Concerning the Pilot Program on Encouraging the Development of Technically Advanced Service Enterprises
in Suzhou Industrial Park

Cai Shui [2006] No. 147

The Bureau of Finance of Jiangsu province, state taxation bureaus, local taxation bureaus, departments of foreign trade and economic
cooperation, commissions of trade and economy, departments of science and technology, and administration committee of Suzhou Industrial
Park:

For the purpose of further improving the policy-supporting system of high-tech industry, pushing forward the development of technically
advanced service enterprises, promoting the elevation of technological innovation and technical service capabilities of enterprises,
enhancing the comprehensive competitiveness of high-tech industry in China, and in accordance with the spirit of relevant decisions
by the State Council, the related supporting policies concerning the pilot work on encouraging the development of technically advanced
service enterprises in Suzhou Industrial Park are herby notified as follows:

Article 1

Supporting Policies on pilot technically advanced service enterprises

1.

As of July 1, 2006, the scope of ascertainment of high-tech enterprises in Suzhou Industrial Park shall be enlarged and technically
advanced service enterprises that conform to the conditions provided by Article 3 of the present Circular shall be ascertained as
high-tech enterprises.

2.

As of July 1, 2006, the enterprise income tax of domestic or foreign-invested technically advanced service enterprises ascertained
as high-tech enterprises shall be taxed at the reduced rate of 15%.

3.

As of July 1, 2006, the reasonable actual wage expenses in technically advanced service enterprises ascertained as high-tech enterprises
may be deducted before the enterprise income tax.

4.

As of July 1, 2006, as regards the employee education expenses drawn and actually used by technically advanced service enterprises,
the part that is not more than 2.5% of the total wages that year may be deducted before the enterprise income tax.

5.

As of July 1, 2006, technically advanced service enterprises ascertained as high-tech enterprises may enjoy relevant preferential
policies for high-tech enterprises except taxation policies.

Article 2

Scope of Pilot Technically Advanced Service Enterprises

1.

Software development and service enterprises: including the development of industry application software, embedded software and customized
software, as well as software technical service, etc.

2.

Product technological development and industrial design service enterprises: including the development of product production technologies,
the design of outward appearances of products, the design of structure as well as mold design service, etc.

3.

Information technology development service enterprises: including the design of integrated circuit products, system integration as
well as the offering of E-commerce platform and integrated circuit tests service, etc.

4.

Information technology outsourcing service enterprises: including system operation, system application and fundamental information
technology outsourcing service, etc.

5.

Technological business flow outsourcing service enterprises: including the offering of design of business flow to other enterprises,
as well as database management such as data integration, data processing and data analysis concerning internal management of enterprises,
business operation and supply management, as well as information service, etc.

See the Appendix for detailed information on the scope of application of the above-mentioned development service, product technological
development and industrial design service, information technology development service, information technology outsourcing service
and technological business flow outsourcing service.

Article 3

The Ascertainment and Administration of Pilot Technically Advanced Service Enterprises

1.

The ascertaining conditions of technically advanced service enterprises that are to enjoy pilot policies

The technically advanced service enterprise that is to enjoy pilot policies shall satisfy the following conditions:

(1)

It shall engage in one or two of the businesses that fall within the scope provided by Article 2 of the present Circular.

(2)

The registration place of the enterprise and working site shall be within the Suzhou Industrial Park.

(3)

It boasts corporate capacity and bears no law-violating activities in the recent two years in import and export business management,
financial management, taxation management, foreign exchange management and Customs management with the business stably improving.

(4)

Employees with junior college diploma or above thereof shall account for more than 70% of the total number of employees.

(5)

The income obtained by the enterprise from business within the scope provided by Article 2 of the present Circular shall account
for more than 70% of the total income of the enterprise that year.

(6)

Enterprises that engage in outsourcing service shall bear relevant international qualification certifications and sign outsourcing
service contracts with overseas customers. In addition, the income from international (FOB) outsourcing business offered to overseas
customers shall not be less than 70% of the total income of the enterprise that year.

2.

Administration of Ascertainment of Pilot Technically Advanced Service Enterprises

(1)

The science and technological authorities of Jiangsu province, jointly with the financial, taxation and commercial authorities at
the provincial level shall, in accordance with the provisions of the present Circular, formulate concrete administrative measures
and submit them to the Ministry of Science and Technology, the Ministry of Finance, the State Administration of Taxation and the
Ministry of Commerce for record.

(2)

The technically advanced service enterprise that conform to the above-mentioned conditions shall, in accordance with the provisions
of the present Circular and the Administrative Measures, file an application to the administrative committee of Suzhou Industrial
Park who shall submit it to the scientific and technological, taxation as well as commercial authorities of Jiangsu province for
examination and approval. In case the application is approved, the scientific and technological, taxation as well as commercial authorities
of Jiangsu province shall jointly ascertain the enterprise as a high-tech enterprise. The name list of the ascertained enterprises
shall be submitted on a timely basis to the Ministry of Science and Technology, the Ministry of Finance, the State Administration
of Taxation and the Ministry of Commerce for record.

(3)

The technically advanced service enterprise that has been ascertained shall, with relevant ascertaining documents, handle matters
like tax reduction and tax exemption with local taxation authorities.

(4)

The administrative committee of Suzhou Industrial Park jointly with the scientific and technological, taxation as well as commercial
authorities thereof shall make follow-up administration on the ascertained technically advanced service enterprises that enjoy pilot
policies. As regards enterprises that alter the business scope, merge with or separate from other entities, change their production
line or re-domicile, if the ascertaining conditions are not satisfied, the qualification to enjoy pilot policies shall be cancelled
on a timely basis upon approval by authorities at a higher level.

Article 4

The administrative committee of Suzhou Industrial Park jointly with the scientific and technological, taxation as well as commercial
authorities thereof shall deliberately carry out the provisions of the present Circular, undertake communication and coordination
with earnest efforts, and in accordance with the pilot implementation, try every effort to investigate into the concrete technical
standards of technically advanced service enterprises so as to further improve relevant policies. Any problem encountered during
the pilot work, shall be reported on a timely basis to the Ministry of Science and Technology, the Ministry of Finance, the State
Administration of Taxation and the Ministry of Commerce level by level.

Article 5

After the above pilot policies came into effect, provided that the State undergo tax system reform or adjust relevant policies, the
new policies shall prevail.

Appendix:

The Scope of Ascertainment of Technically Advanced Service Enterprises in Suzhou Industrial Park (on Trial)

Ministry of Finance

State Administration of Taxation

Ministry of Commerce

Ministry of Science and Technology

December 31, 2006




Appendix

￿￿

Appendix:

The
Scope of Ascertainment of Technically Advanced Service Enterprises in Suzhou
Industrial Park (on Trial)

￿￿

1. Software
Development and Service

Category Scope
of Application
development
of industry application software
software
development concerning such
industries as business management, production management, supply chain management,
CAD,
education, human resources, Customs management, logistics,
geographical information management, etc
development
of embedded software
the
development of special-purpose software which embeds in the equipment
and controls its movement
development
of customized software
customize
software system in accordance with the requirements of the customers
software
technical service
technical
service such as software consultation, maintenance, training and
modulation, etc.

2.
Product
technological development and industrial design service

Category Scope
of Application
development
of products and technologies
the
development of products and technologies in natural science and relevant
fields
industrial
design
the
design of the outside appearances of products, the design of structure,
the design of mold, and the design
of products, etc.

3.
Information
technology development service

Category Scope
of Application
the
design of integrated circuit
the
design of integrated circuit products as well as relevant technical
supporting services, etc.
system
integration
system
integration used in electronic government affairs, business management,
finance, insurance, commerce, hospitals
and transportation, etc.
offering
E-commerce platform
to
offer information platform for E-trade
test
platform
offering
test platform for the development and application of integrated circuit

4.
Information
technology outsourcing service

Category Scope
of Application
information
system operation service
to
undertake the integration service for customers￿￿ internal information
system, network management, desktop
management, the development of
application program and maintenance service
service
of information system application
to
undertake service of information system application such as information
engineering, geographical information
system and long-distance
maintenance, etc.
service
of fundamental information technology
to
undertake service of fundamental information technology such as the
development of information technology,
the development and design of
software, the integration or arrangement of fundamental information
technology
management platform, etc.

5.
Technological
business flow outsourcing service

Category Scope
of Application
Service
of design of business flow of enterprises
to
offer service of flow design to customer enterprises such as internal
management and business operation,
etc.
service
of internal management database of enterprises
to
offer such services as the analysis, investigation, management and use
of data concerning other internal
management such as backstage
management, human resources management, wages and welfare management and
financial
accounting and auditing management; to undertake the service
of operation, data processing and integration for data (information)

centers such as data of banks, credit cards, all kinds of insurances,
insurance indemnities, medical-care/physical
examination as well as tax
and legal data of customers.

service
of business operation of enterprises
to
offer technology development service for customer enterprises as well as
customer analysis and database management
service for the operation,
sales and after-sale service of enterprises
service
of supply chain management of enterprises
to
offer the overall plan of purchasing and logistics for customers as well
as database service




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...