Brazilian Laws

PROMOTION OF AGRICULTURAL MECHANIZATION LAW

Law of the People’s Republic of China on Promotion of Agricultural Mechanization

(Adopted at the 10th Meeting of the Standing Committee of the Tenth National People’s Congress on June 25, 2004 and
promulgated by Order No.16 of the President of the People’s Republic of China on June 25,2004) 

Contents 

Chapter I     General Provisions 

Chapter II    Scientific Research and Development  

Chapter III   Quality Safeguards 

Chapter IV    Widespread Use 

Chapter V     Commercialized Services 

Chapter VI    Support Measures 

Chapter VII   Legal Responsibility 

Chapter VIII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted with a view to encouraging and supporting peasants and agricultural production and operation
organizations to use advanced and applicable agricultural machines, promoting the mechanization of agriculture and developing modern
agriculture. 

Article 2  For purposes of this Law, mechanization of agriculture means the process of improving the conditions of agricultural
production and operation and continually raising the technological level of agricultural production and increasing the economic and
ecological benefits of agriculture by equipping agriculture with advanced and applicable agricultural machines. 

For purposes of this Law, agricultural machines mean the machines and equipment used for agricultural production, primary processing
of agricultural products and other activities relating to farming. 

Article 3  People’s governments at or above the county level shall incorporate the promotion of agricultural mechanization into
their plans of national economic and social development, and take such measures as financial support, preferential taxation policy
as prescribed by the State and financial aid, in order to gradually increase capital input into the mechanization of agriculture,
give full play to the role of market mechanism, and promote the development of agricultural mechanization in compliance with the
principles of adapting to local conditions, ensuring economic results, guaranteeing safety and protecting the environment. 

Article 4  The State provides guidance and support to peasants and agricultural production and operation organizations in their
efforts to select advanced and applicable agricultural machines on their own.  No units or individuals shall compel peasants
and agricultural production and operation organizations to purchase agricultural machines they designate. 

Article 5  The State takes measures to publicize and disseminate scientific and technological knowledge about agricultural mechanization,
to train people in professional skills needed for such mechanization, to promote information services for and to raise the level
of such mechanization. 

Article 6  The administrative departments for agriculture under the State Council and other departments in charge of the work
of agricultural mechanization shall, in accordance with the division of their respective duties, closely cooperate with each other,
joining the efforts in successfully promoting agricultural mechanization. 

The departments in charge of the work of agricultural mechanization under the local people’s governments at or above the county level
and other departments concerned shall, in accordance with the division of their respective duties, closely cooperate with each other,
joining efforts in successfully promoting agricultural mechanization within their own administrative areas. 

Chapter II 

Scientific Research and Development 

Article 7  People’s governments at or above the provincial level and the relevant departments under them shall make arrangements
for the units concerned to take such measures as tackling key technical problems and making experiments and demonstrations for the
purpose of promoting basic and key scientific researches in agricultural machinery for the public good and the wide use of advanced
and applicable agricultural machines. 

Article 8  The State supports the scientific research institutions, colleges and universities concerned to redouble their efforts
in scientific and technological research in agricultural mechanization and, based on the different conditions of agricultural production
and different needs of peasants, to make research and develop advanced and applicable agricultural machines; and it supports the
efforts made to combine scientific research and teaching of agricultural machinery with their manufacturing and the promotion of
their wide use in order that agricultural machinery will be geared to the needs of the technological development of agricultural
production. 

Article 9  The State supports the manufactures of agricultural machines in their efforts to develop advanced and applicable
agricultural machines and, by adopting advanced technologies, techniques and materials, to enhance the quality and raise the technological
level of their products, reduce their costs of production and provide serialized and standardized agricultural machines characterized
by multifunction, high quality, energy saving and reasonable price. 

Article 10  The State supports the introduction and use of advanced agricultural machines, their key spare parts and technology,
and encourages the efforts to absorb foreign funds for purpose of conducting research in, developing, manufacturing and dealing in
agricultural machines. 

Chapter III 

Quality Safeguards 

Article 11  The State strengthens the establishment of a standard system for agricultural mechanization, formulates and improves
the standards for the quality of the agricultural machines manufactured, the quality of their repairs and maintenance and the quality
of their operation.  In respect of the technical requirements for the agricultural machines manufactured relating to personal
safety, quality and safety of agricultural products and protection of the environment, mandatory technological standards shall be
formulated in accordance with the provisions of relevant laws and administrative regulations. 

Article 12  Supervisory departments for product quality shall, according to law, be in charge of supervision over and spotcheck
of the quality of the agricultural machines manufactured. 

Administrative departments for industry and commerce shall, according to law, tighten supervision and control over the markets of
the agricultural machines manufactured. 

The administrative departments for agriculture under the State Council and the departments in charge of the work of agricultural
mechanization under the people’s governments at the provincial level may, based on the complaints by the users of agricultural machines
and on the actual need of agricultural production, arrange surveys of the applicability, safety, reliability and after-sale services
of a particular type of the manufactured agricultural machines that are in use, and publish the results of the surveys. 

Article 13  Manufacturers and sellers of agricultural machines shall be responsible for the quality of the machines manufactured
or sold by them, and shall , in accordance with relevant State regulations, be responsible for such after-sale services as the supply
of spare parts and training.  

Manufacturers of agricultural machines shall, in accordance with State standards, industrial standards and the requirements of ensuring
personal safety, install safety and protection devices on, and attach warning signs and warning in Chinese to, the agricultural machines
manufactured by them. 

Articles 14  Where agricultural machines manufactured do not meet the quality requirements, the manufacturers or sellers of
the machines shall be responsible for their repairs, replacement or return; and where losses in agricultural output or other losses
are caused to the users of the agricultural machines, they shall compensate the users for the losses according to law.  The
users of the machines shall have the right to demand that the sellers of the machines make the compensation first.  After the
compensation is made by the sellers of the machines, if the responsibility rests with the manufacturers of the machines, the said
sellers shall have the right to demand recovery from the said manufacturers. 

Where personal injuries or property losses are caused due to defects in agricultural machines, the manufacturers and sellers of machineries
shall make compensations according to law. 

Article 15  Manufactured agricultural machines included in the catalogue of the products the certification of which is required
by law but which are not certified or attached with the signs of certification are prohibited from leaving the factory, being sold
or imported. 

Agricultural machines which do not meet the mandatory requirements of the technological standards of the State are prohibited from
being manufactured and sold. 

Assembling of agricultural machines with defective or substandard spare parts or with spare parts of scrapped machines are prohibited. 

Chapter IV 

Widespread Use 

Article 16  The State supports efforts to promote the wide use of advanced and applicable agricultural machines among peasants
and agricultural production and operation organizations.  The agricultural machines the wide use of which is promoted shall
meet the need of local agricultural development and, according to the provisions of the Law on Popularization of Agricultural Technology,
the machines shall have to be proved to be advanced and applicable through experiment in the areas where their wide use is promoted. 

Manufacturers or sellers of agricultural machines may entrust institutions for experiment and verification of agricultural machines
to test the applicability, safety and reliability of the agricultural machines of a finalized design manufactured or sold by them,
and to make a technical appraisal.  The said institutions shall publish the testing results of the agricultural machines in
respect of their applicability, safety and reliability, providing information to peasants and agricultural production and operation
organizations in their purchase of advanced and applicable agricultural machines. 

Article 17  People’s governments at or above the county level may, based on actual conditions, set up demonstration bases for
agricultural mechanization in different agricultural areas, and encourage manufacturers of, dealers in agricultural machines, etc.
to set up demonstration points for agricultural machines and guide peasants and agricultural production and operation organizations
in their use of advanced and applicable agricultural machines. 

Article 18  The administrative department for agriculture under the State Council together with the department of finance and
the department for comprehensive macro-economic control under the State Council shall, on the principles of promoting agricultural
restructuring, protecting the natural resources and ecological environment, promoting the wide use of new agricultural technologies
and speeding up the updating of agricultural machines and tools, determine and publish the catalogue of the advanced and applicable
agricultural machines the wide use of which is supported by that the State, and make adjustment to the catalogue regularly. 
The departments in charge of the work of agricultural mechanization under the people’s governments at the provincial level together
with the department of finance and the department for comprehensive macro-economic control at the corresponding level shall, on the
principles mentioned above, determine and publish the catalogue of the advanced, applicable agricultural machines the wide use of
which is supported by the people’s governments at the provincial level, and make adjustment to the catalogue regularly. 

To have their products included in the catalogue mentioned in the preceding paragraph, the manufacturers of agricultural machines
shall, on a voluntary basis, submit an application and their products shall be subject to verification, by institutions for experiment
and verification of agricultural machines in respect of their advancedness, applicability, safety and reliability. 

Article 19  The State encourages and supports peasants to cooperate in the use of agricultural machines, in order to raise the
utilization ratio and operational efficiency of agricultural machines and to reduce operational cost. 

The State supports and protects peasants, while adhering to household contractual management, to engage in regional and standardized
planting on a voluntary basis in order to raise the operational level of agricultural machines.  No units or individuals shall,
on the pretext of regional or standardized planting, encroach upon the peasants’ right of contractual management of land.  

Article 20  The administrative department for agriculture under the State Council and the departments in charge of the work
of agricultural mechanization under the local people’s governments at or above the county level shall, upholding the principles of
safe production and putting prevention first, improving the publicity of and education in the safe use of agricultural machines and
control of such machines. 

When users of agricultural machines operate the machines, they shall do so in accordance with the safe operation regulations, and
shall put up the protective devices or warning signs at the dangerous parts of the machines and at the place of operation. 

Chapter V 

Commercialized Services 

Article 21  Peasants and agricultural machines operation organizations may, on the principles of mutual voluntariness and consultation
on an equal footing, provide local or nonlocal peasants and agricultural production and operation organizations with various kinds
of compensated services of agricultural machinery operation.  Compensated agricultural machinery operation shall be in conformity
with the State and local standards for the quality of such operation. 

The State encourages the provision of agricultural machinery operation among different administrative regions. People’s governments
at various levels and the relevant departments under them shall support such inter-regional agricultural machinery operation, maintain
the order of such operation, provide conveniences and services, and exercise supervision over safety according to law. 

Article 22  People’s governments at various levels shall take measures to encourage and assist the development of multiforms
of agricultural machinery service organizations, to facilitate the establishment of an information network for agricultural mechanization
and improve the service system of agricultural mechanization. Agricultural machinery service organizations shall, based on the needs
of peasants and agricultural production and operation organizations, provide such commercialized services as demonstration and promotion
of the use of agricultural machines, training in practicable technologies, maintenance and repairs, information, and intermediary
service. 

Article 23  Institutions for promotion of agricultural machinery technologies at the grassroots level established by the State
shall rely on the experiment and demonstration bases in providing, without compensation, peasants and agricultural production and
operation organizations with such public welfare services as promotion of and training in agricultural machinery technologies. 

Article 24  Any unit or individual engaged in agricultural machinery maintenance and repairs shall have the instruments and
equipment needed for maintenance and repairs as well as the technicians with the professional skills for agricultural machinery maintenance
and repairs, in order to guarantee quality.  If the quality of repair is not up to standards, the repairer shall do the repairs
again free of charge; and if personal injuries or property losses are caused, the repairer shall bear the responsibility for compensation
according to law. 

Article 25  Manufacturers, dealers in and repairers of agricultural machines may, in accordance with the provisions of laws
and administrative regulations and on a voluntary basis, establish industrial associations, practice self-discipline within the industry,
provide services to the members of their associations and preserve lawful rights and interests of their members. 

Chapter VI 

Support Measures 

Article 26  The State takes measures to encourage and support the manufacturers of agricultural machines to increase their input
in research and development of new products, new technologies and new techniques, and executes a preferential tax policy for scientific
research in, and development and manufacture of agricultural machines. 

A certain amount of the funds for scientific and technological development arranged in the central or local budgets shall be used
in support of technical innovation of the agricultural machinery industry. 

Article 27  The central and the provincial governments shall respectively allocate special funds to subsidize the peasants and
agricultural production and operation organizations for their purchase of the advanced and applicable agricultural machines supported
and promoted by the State.  The funds for subsidies shall be used in accordance with the principles of openness, impartiality,
timeliness and effectiveness.  Such funds may be distributed to the peasants and agricultural production and operation organizations,
and may also be used as a discount for the loans provided by banking institutions in support of the peasants and agricultural production
and operation organizations that purchase advanced and applicable agricultural machines.  The specific measures in this regard
shall be formulated by the State Council. 

Article 28  Incomes from providing services in production with agricultural machines shall enjoy preferential taxation policy
in accordance with State regulations. 

The State, based on the needs of agricultural and rural economic development, appropriates financial subsidies for the fuel oil used
in agricultural production with agricultural machines.  Such subsidies shall be given directly to the peasants and agricultural
production and operation organizations that are engaged in operations with agricultural machines.  The specific measures in
this regard shall be formulated by the State Council. 

Article 29  Local people’s governments at various levels shall take measures to make greater efforts in the construction and
maintenance of the infrastructure in respect of agricultural mechanization, such as rural roads for farm machines, in order to create
the conditions for agricultural mechanization. 

Departments in charge of the work of agricultural mechanization under the local people’s governments at or above the county level
shall establish the system of information gathering, sorting and issuing for agricultural mechanization, in order to provide peasants
and agricultural production and operation organizations with information services free of charge. 

Chapter VII 

Legal Responsibility 

Article 30  Violations of the provisions in Article 15 of this Law shall be penalized in accordance with the relevant provisions
in the Law on Product Quality; and if a crime is constituted, criminal responsibility shall be investigated according to law. 

Article 31  Where the driver or operator of agricultural machine violates the State procedures for safe operation and relevant
regulations in his work, he shall be instructed to rectify and be penalized in accordance with the provisions of relevant laws and
administrative regulations; and if a crime is constituted, criminal responsibility shall be investigated according to law. 

Article 32  When an institution for experiment and verification of agricultural machines fails to make verification for the
manufacturers or sellers of agricultural machines in accordance with relevant regulations, forges the results of verification, or
produces false certificates, thus causing losses to the users of agricultural machines, it shall bear the responsibility for compensation
according to law. 

Article 33  Where the administrative department for agriculture under the State Council or the department in charge of the work
of agricultural mechanization under a local people’s government at or above the county level, in violation of the provisions of this
Law, compels, or does so in disguised form, the manufacturers or sellers of agricultural machines to have the agricultural machines
they manufacture or sell verified, the competent department at the higher level or the supervisory organ shall instruct it to rectify
within a time limit, and give administrative sanctions to the persons who are directly in charge and the other persons who are directly
responsible. 

Article 34  Any unit or individuals that, in violation of the provisions in Articles 27 and 28 of this Law, withholds or misappropriates
the funds for subsidies, shall be instructed by the competent organ at the higher level to return the funds withheld or misappropriated
within a time limit, its/ his unlawful gains shall be confiscated; and the competent organ at the higher level, the supervisory organ
or the entity it/ he belongs to shall give administrative sanctions to the persons who are directly in charge and the other persons
who are directly responsible. If a crime is constituted, criminal responsibility shall be investigated according to law. 

Chapter VIII 

Supplementary Provisions 

Article 35  This Law shall go into effect as of November 1, 2004.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







DETAILED IMPLEMENTATION RULES FOR THE REGULATION ON THE ADMINISTRATION OF ADVERTISING

the State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce of People’s Republic of China

No.18

The revised Detailed Implementing Rules for the Regulation on the Administration of Advertising, which were adopted at the executive
meeting of the State Administration for Industry and Commerce, are promulgated hereby and shall go into effect as of January 1, 2005.

Director General of the State Administration for Industry and Commerce Wang Zhongfu

November 30, 2004

Detailed Implementation Rules for the Regulation on the Administration of Advertising

Article 1

The present Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulation on the Administration
of Advertising (hereinafter referred to as the Regulation).

Article 2

The administrative scope as prescribed in Article 2 of the Regulation shall include:

(1)

advertisements that are published in newspapers, periodicals, books, directories, etc.;

(2)

advertisements that are broadcast on radio or television or shown in films, videos, slide shows, etc.;

(3)

advertisements made by way of road signs, neon lights, electronic display boards, show windows, lanterns, walls, etc. by using the
buildings or space of streets, public squares, airports, stations, wharves, etc.,;

(4)

advertisements that are displayed or posted inside or outside such places as theatres, stadiums, cultural centers, exhibition halls,
hotel, restaurants, pleasure grounds, marketplaces, etc.;

(5)

advertisements that are displayed, drawn or posted on automobiles, vessels, airplanes or other vehicles;

(6)

various types of advertising propaganda materials which are sent by mail;

(7)

advertising propaganda made by means of giving complimentary objects;

(8)

advertisements that are published, broadcasted, displayed or posted by other media or means .

Article 3

Any enterprise that applies for the approval to engage in advertising business, in addition to meeting such conditions as enterprise
registration etc., shall also meet the following conditions:

(1)

Having established an institution responsible for the market survey and having the relevant specialized personnel thereof;

(2)

Having managerial personnel who have good knowledge of advertising administrative legislation and the personnel who are able to undertake
the design, production and editing of advertisements;

(3)

Having full-time accounting personnel;

(4)

Having the ability to deal in the advertisements of foreign businessmen when applying to contract on or to act as an agent in operating
the advertisement of foreign businessmen.

Article 4

Broadcasting stations, TV stations, newspaper or periodical offices, public institutions, and other institutions as prescribed by
laws and administrative regulations shall meet the following conditions in their registration of permit for advertising operations:

(1)

Having the media or means to directly publish advertisements;

(2)

Having established a special organization for advertising operations;

(3)

Having the equipment and place for advertising operations;

(4)

Having specialized advertising personnel and censors familiar with the advertising laws and regulations.

Article 5

In case a Sino-foreign equity joint venture, a Sino-foreign cooperative enterprise or a foreign-funded enterprise applies for engaging
in advertising business, it shall be handled in accordance with the Provisions on the Administration of Foreign-funded Advertising
Enterprises and with reference to the Regulation, these Detailed Implementing Rules and other relevant provisions.

Article 6

In case an individual industrial and commercial household applies for engaging in advertising business, in addition to meeting the
conditions as prescribed in the Provisional Regulations on the Administration of Individual Industrial and Commercial Household Operations
in Towns and Villages, the individual shall have advertising professional skills and good knowledge of the advertising laws and regulations.

Article 7

In accordance with Article 6 of the Regulation, the advertising operator registration procedure shall be handled as follows:

(1)

An enterprise to engage in advertising business shall apply to the administration for industry and commerce with jurisdiction for
enterprise registration and shall be issued a business license.

(2)

Broadcasting stations, TV stations, newspaper or periodical offices, public institutions and other institutions as prescribed by laws
and administrative regulations, when applying for concurrently engaging in advertising business and being subject to registration
of permits for advertising operations, shall apply to the administration for industry and commerce of the province, autonomous region,
municipality directly under the Central Government and city under separate State planning or the authorized administrative body at
or above the county-level and shall be issued an Advertising Operation Permit.

(3)

An individual industrial and commercial household who engages in advertising operations shall apply to its local administration for
industry and commerce and shall be issued a business license after being registered with the local administration for industry and
commerce in accordance with the law.

Article 8

Any advertiser, who applies for cigarette advertising by means of such media as broadcasting, television, newspaper and periodical,
shall be subject to the approval of the administration for industry and commerce of his province, autonomous region, municipality
directly under the Central Government or the authorized municipal administrative body under provincial jurisdiction.

Article 9

In accordance with Article 7 of the Regulation, any client who applies for publishing an advertisement shall present the corresponding
certificates as follows:

(1)

An enterprise or an individual industrial and commercial household shall present its business license for inspection.

(2)

An administrative organ, social group or public institution shall present the certificate of its respective entity.

(3)

An individual shall present a certificate issued by its local township government, subdistrict office or the entity where he works.

(4)

A resident representative office of a foreign enterprise shall present for inspection its Registration Permit of Resident Representative
Office of Foreign Enterprise in China.

Article 10

In accordance with the provisions of item (1) of Article 11 of the Regulation, whoever applies for publishing an advertisement of
commodities shall present for inspection a quality certificate certifying that the commodity is up to State standards, ministerial
standards (specialized standards) or enterprise standards.

Article 11

In accordance with item (7) of Article 11 of the Regulation, relevant certificates shall be represented where anyone applies for
publishing any advertisements of the following types:

(1)

Whoever advertises on the publication of a newspaper or periodical shall present for inspection the registration certificate approved
by the press and publication organ of his province, autonomous region or municipality directly under the Central Government.

(2)

Whoever advertises on the publication of a book shall present a certificate of approval for the establishment of the publishing house
issued by the press and publication organs.

(3)

Whoever advertises by means of any of the various types of artistic and cultural performances shall present certification documents
in accordance with relevant provisions.

Article 12

In accordance with item (8) of Article 11 of the Regulation, relevant certificates shall be presented where anyone applies for carrying
and broadcasting advertisements of the following content:

(1)

Whoever advertises any of the various commodity fairs, order-placing meetings, trade fairs, etc., shall present a certificate of approval
issued by the competent authority of the sponsor.

(2)

Whoever advertises by means of notices or announcements concerning individual persons shall present a certificate issued by the institution
that he works for, township people’s government or subdistrict office.

Article 13

In case an advertiser applies for the publishing, broadcasting, displaying or posting of an advertisement, it shall present the original
copies of certificates as required or effective photocopies thereof.

Article 14

Agency fee for undertaking advertising work shall be 15% of the advertising expense.

Article 15

In case a domestic enterprise publish advertisements abroad, or if a foreign enterprise (organization) or a person of foreign nationality
undertakes and publish advertisements within the Chinese territory, it shall entrust an enterprise as an advertising agent who is
registered in China and authorized to provide advertising services. The violator shall be imposed on a fine of no more than three
times the illegal earnings but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000 Yuan if no illegal gains
were generated.

Article 16

In accordance with Article 12 of the Regulation, when acting as an agent for or as the issuer of an advertisement, the agent or issuer
shall be responsible for censoring the content of the advertisement and examining relevant certificates and shall be enpost_titled to
require the advertiser to provide any other necessary certificates and documents. An advertising agent or issuer shall not be permitted
to act as an agent of or issue an advertisement if the certificate is found to be illegal or incomplete or if the content of the
advertisement is found to be false.

An advertising operator shall establish a system of keeping records for and reexamining the advertising businesses undertaken and
service filing for advertisements. An advertising service file shall be kept for no less than one year.

Article 17

Where an advertiser violates the provisions of Article 3 or item (5) of Article 8 of the Regulation by using an advertisement to
mislead or cheat users or consumers, the advertiser shall be ordered to publish a corrected advertisement within a corresponding
area. In light of the seriousness of the case in question, a notice of criticism may be circulated and the advertiser may be imposed
a fine of no more than three times the illegal gains but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000
Yuan if there are no illegal gains and shall be liable to pay compensation if the advertiser have caused any damage to users or consumers.

Where an advertising operator assists a advertiser to practice fraud, in light of the seriousness of the case in question, a notice
of criticism may be circulated, the illegal gains, if any, may be confiscated and the advertising operator may be imposed on a fine
of no more than three times the illegal earnings but no more than 30,000 Yuan at the maximum, or a fine of no more than 10,000 Yuan
if there is no illegal gains. When the case is serious, the advertising operator may be ordered to suspend business operations for
rectification and its business license or Advertising Operation Permit may be revoked. Joint and several liabilities shall be borne
by the operator if damage results to users or consumers.

The costs of issuing an amended advertisement shall be borne jointly by the advertiser and the advertising operator.

Article 18

Where the provisions of Article 4 or item (6) of Article 8 of the Regulation are violated, a notice of criticism may be circulated,
the illegal gains, if any, may be confiscated, and a fine of no more than 5, 000 Yuan may be imposed on the violator or an order
may be given to suspend business operations for rectification in light of the seriousness of the case in question.

Article 19

Where an advertising operator violates the provisions of Article 6 of the Regulation by engaging in advertising business without
a necessary license, it shall be punished in accordance with the relevant provisions of the Measures for Investigating into, Punishing
and Banning Permitless Business Operations. Where an advertising operator violates the provisions by exceeding its approved business
scope, it shall be punished according to relevant provisions of the laws and regulations on the administration of enterprise registration.

Article 20

Where an advertiser violates the provisions of Article 7 of the Regulation, in light of the seriousness of the case in question,
a notice of criticism may be circulated and a fine of no more than 5,000 Yuan may be imposed.

Article 21

Where any provision of items (1), (2), (3) or (4) of Article 8 of the Regulation is violated, a notice of criticism shall be circulated
regarding the advertising operator involved, the illegal gains, if any, shall be confiscated and a fine of no more than 10,000 Yuan
shall be imposed on. As for the advertiser involved, a notice of criticism may be circulated and a fine of no more than 10,000 Yuan
may be imposed, in light of the seriousness of the case in question.

Article 22

Where a news organization violates the provisions of Article 9 of the Regulations a notice of criticism may be circulated, the illegal
gains, if any, may be confiscated and a fine of no more than 10,000 Yuan may be imposed in light of the seriousness of the case in
question.

Article 23

Where an advertising operator violates the provisions of Article 10 of the Regulation, a notice of criticism may be circulated, the
illegal gains, if any, may be confiscated and a fine of no more than 10,000 Yuan may be imposed, in light of the seriousness of the
case in question.

Article 24

Where an advertiser violates the provisions of Article 11 of the Regulation by forging, altering, fraudulently using or illegally
copying an advertising certificate, a notice of criticism shall be circulated and a fine of no more than 5,000 Yuan shall be imposed
on the advertiser.

Any advertising operator who violates the provisions of items (3) of Article 11 of the Regulation shall be fined up to 1,000 Yuan.

Where an advertising operator provides an advertiser with illegal or false certificates, a notice of criticism shall be circulated,
a fine of no more than 5, 000 Yuan shall be imposed and the operator shall bear joint and several liabilities.

Article 25

Where an advertising operator violates the provisions of Article 12 of the Regulation, a notice of criticism may be circulated, the
illegal gains, if any, may be confiscated and a fine of no more than 3,000 Yuan may be imposed, in light of the seriousness of the
case in question. In the event of incurrence of a fraudulent advertisement, the operator shall be responsible for issuing an amended
advertisement. Whoever brings damage or losses to users or consumers shall bear joint and several liabilities.

Article 26

If anyone violates the provisions of Article 13 of the Regulation by illegally displaying or posting advertisements, the illegal
gains, if any, shall be confiscated, a fine of no more than 5,000 Yuan shall be imposed and a time limit shall be specified for the
dismantling and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within
the specified time limit, the dismantling and removal of the advertisement shall be enforced coercively, and the costs incurred thereby
shall be borne by the party who displayed or posted the advertisement.

Article 27

Where the provisions of Articles 14 or 15 of the Regulation are violated, a notice of criticism may be circulated, an order may be
issued to rectify the situation within a specified time limit, the illegal gains, if any, may be confiscated and a fine of no more
than 5,000 Yuan may be imposed, in light of the seriousness of the case in question.

Article 28

The present Detailed Implementing Rules shall go into effect as of January 1, 2005



 
the State Administration for Industry and Commerce
2004-11-30

 







CIRCULAR OF MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON RESUMING TUNG BOARDING EXPORT TAX-REFUND MEASURES

Ministry of Finance &The State Administration of Taxation

Circular of Ministry of Finance and the State Administration of Taxation on Resuming Tung Boarding Export Tax-refund Measures

Cai Shui [2004] No.201

December 17, 2004

To departments (bureaus) of finance and bureaus of state taxation of provinces, autonomous regions, municipalities directly under
the Central Government, cites specifically designated in the state plan, the financial supervision commissioners’ offices of provinces,
autonomous Regions, municipalities directly under the Central Government, cites specifically designated in the state plan, Ministry
of Finance of Xinjiang Production and Construction Corporations,

The export tax refund rate on Tung boarding is furbished under the warrant from the state council, with relative questions notified
as follow,

1.

The tax-refund rate of Tung boarding, whose duty number is 44079920, shall be 13%.

2.

This circular shall be effective from the date of June 1, 2004 (The specific time for implementation shall be the export date as indicated
by the customs houses in the Declaration on Export Goods (Used specifically for export tax refund purpose).

This circular is specifically issued



 
Ministry of Finance &The State Administration of Taxation
2004-12-17

 







TRIAL MEASURES FOR ENTERPRISE ANNUITY

the Ministry of Labor and Social Security

Order of the Ministry of Labor and Social Security of the People’s Republic of China

No.20

The Trial Measures on Enterprise Annuity, which were adopted by the Ministry of Labor and Social Security at the 7th executive meeting
on December 30, 2003, are hereby promulgated and shall come into force as of May 1, 2004.

Zheng Silin, the Minister of the Ministry of Labor and Social Security

January 6, 2004

Trial Measures for Enterprise Annuity

Article 1

With a view to establishing the multi-layer endowment insurance system, guaranteeing that the retirees of enterprises live a better
life and perfecting the social security system, the present Measures are formulated according to the Labor Law and the relevant regulations
of the State Council.

Article 2

The term “enterprise annuity” as mentioned in the present Measures refers to the supplementary endowment insurance system established
voluntarily by enterprises and their employees after they have bought basic endowment insurance. The enterprise annuity shall be
established according to the provisions of the present Measures.

Article 3

An enterprise, which meets the following requirements, may establish the enterprise annuity:

(1)

Having bought the basic endowment insurance and performing the duties of payment according to law;

(2)

Having the corresponding economic capacity; and

(3)

Having established a collective negotiation mechanism.

Article 4

The establishment of enterprise annuity shall be jointly determined by the enterprise and the labor union or the representatives of
the employees through collective negotiation, and the enterprise annuity plan shall also be formulated by them. The draft of the
enterprise annuity plan of a state-owned or state-held enterprise shall be submitted to the assembly of the employees or the assembly
of the representatives of employees for discussion and adoption.

Article 5

The enterprise annuity plan shall cover the following contents:

(1)

Scopes of the persons to buy the insurance;

(2)

Fund raising methods;

(3)

The individual account management method for the enterprise annuity;

(4)

The fund management method;

(5)

The calculating approach and the way of payment;

(6)

Qualifications for the treatment of paying enterprise annuity;

(7)

The organization management and supervisory methods;

(8)

Conditions for suspension of payment; and

(9)

Other matters as stipulated by both parties.The enterprise annuity plan shall apply to the persons whose probation period has expired.

Article 6

The enterprise annuity plan shall be reported to the administrative department of labor and social security of the local people’s
government at or above the county level. The enterprise annuity plan of a large enterprise under the Central Government shall be
reported to the Ministry of Labor and Social Security. Where the administrative department of labor and social security raises no
objection within 15 days as of the date of receipt of the text of the enterprise annuity plan, the enterprise annuity plan shall
go into effect immediately.

Article 7

The expenses necessary for enterprise annuity shall be jointly paid by the enterprise and its employees. The payment of the expenses
by the enterprise shall accord with the relevant regulations of the state, and the part of the expenses paid by the employees may
be deducted from their wages by the enterprise.

Article 8

The expenses paid by the enterprise may not exceed one twelfth of the total amount of wages of the employees of the enterprise in
the previous year. And the sum of the expenses paid by the enterprise and the employees may not exceed one sixth of the total amount
of wages of the employees of the enterprise in the previous year.

Article 9

The enterprise annuity fund is composed of the following items:

(1)

Expenses paid by the enterprise;

(2)

Expenses paid by the employees;

(3)

Proceeds derived from the investment and operation of the enterprise annuity fund.

Article 10

The enterprise annuity fund shall be in the form of complete accumulation and be managed by means of individual accounts.The enterprise
annuity fund may be used for investment and operation according to the regulations of the state. And the proceeds derived from the
investment and operation shall be merged into the enterprise annuity fund

Article 11

The expenses to-be-paid by the enterprise shall be computed pursuant to the proportion as specified in the enterprise annuity plan
and be deposited into the employees’ enterprise annuity individual accounts; and the expenses to-be-paid by employees shall be computed
and deposited into their respective accounts.The proceeds derived from the investment and operation of the enterprise annual fund
shall be deposited into the individual accounts of enterprise annuity pursuant to the net income ratio.

Article 12

When an employee reaches the retirement age as provided for by the state, he (she) may draw the enterprise annuity from his (her)
individual enterprise annuity account in a lump or regularly. No employee under the retirement age as provided for by the state may
draw the said fund out of his (her) account ahead of time.As for an employee who has settled abroad, the fund in his (her) individual
enterprise annuity account may paid to the employee in a lump in light of his (her) requirements.

Article 13

When an employee changes his (her) employer, the fund in his (her) individual enterprise annuity account may be transferred accordingly.
Where an employee enters a school of higher grade, joins the army or the new employer involved doesn’t adopts the enterprise annuity
system, his (her) individual enterprise annuity account may be managed continuously by the former management institution.

Article 14

After the death of an employee or a retiree, the balance in his (her) individual enterprise annuity account shall be drawn out in
a lump by the beneficiary or the legal heir.

Article 15

The enterprise that has established enterprise annuity shall determine an assignee of the enterprise annuity (hereinafter referred
to as the assignee) for the management of the enterprise annuity. The assignee may be the enterprise annuity council established
by the enterprise or a legal person as a trust institution meeting the relevant requirements of the state.

Article 16

The enterprise annuity council shall be composed of the enterprise and the representatives of employees or as well as professional
personnel hired from outside the enterprise. And the representatives of employees may not be less than 1/3 of the total number of
the council members.

Article 17

The enterprise annuity council shall, except managing the matters related to the enterprise annuity, may not engage in any other business
operation.

Article 18

For the determination of an assignee, a written contract shall be concluded between the enterprise and the assignee.

Article 19

The assignee may entrust a qualified enterprise annuity account management institution to act as the account manager who shall be
responsible for the management of the enterprise annuity. It may entrust a qualified investment operating institution to act as the
investment manager who shall be responsible for the investment and operation of the enterprise annuity fund.The assignee may choose
a qualified commercial bank or a professional trust institution to act as the trustee who shall be responsible for the entrustment
of the enterprise annuity fund.A written contract shall be concluded for determining the relationship between the assignee and the
account manager or the investment manager or the trustee.

Article 20

The enterprise annuity fund shall be managed separately from the self-owned assets and other assets of the assignee, account manager,
investment manager and trustee, and may not be used for any other purpose.The enterprise annuity fund shall be managed according
to the relevant provisions of the state.

Article 21

The administrative departments of labor and social security of the people’s governments at or above the county level shall be responsible
for the supervision and inspection of the implementation of the present Measures. Any one having violated the present Measures shall
be given a warning by the administrative department of labor and social security and shall be ordered to make corrections.

Article 22

Where any dispute arises from the performance of the enterprise annuity contract, the parties concerned may apply for arbitration
or file a lawsuit. Any dispute arising from the conclusion or execution the enterprise annual plan shall be settled in accordance
with the regulations of the state on settlement of collective contract disputes.

Article 23

Other entities, which have bought uniform enterprise basic endowment insurance, may establish enterprise annuity by reference to the
present Measures.

Article 24

The present Measures shall come into force as of May 1, 2004. The Circular on Printing and Distributing the Opinions on the Establishment
of Supplementary Endowment Insurance System issued by the former Ministry of Labor on December 29, 1995 shall be repealed simultaneously.



 
the Ministry of Labor and Social Security
2004-01-06

 







PROVISIONS ON MINIMUM WAGES

Ministry of Labor and Social Security

Order of the Ministry of Labor and Social Security of the People’s Republic of China

No. 21

The Provisions on Minimum Wages, which were adopted at the 7th executive meeting of the Ministry of Labor and Social Security on December
30, 2003, are hereby promulgated and shall come into force as of March 1, 2004.

Zheng Silin, the Minister of the Ministry of Labor and Social Security

January 20, 2004

Provisions on Minimum Wages

Article 1

With a view to safeguarding the legitimate rights and interests of the laborers in getting labor remunerations, and ensuring the basic
necessities of laborers and their family members, the present Provisions are formulated according to the Labor Law and other relevant
regulations of the State Council.

Article 2

The present Provisions shall apply to the enterprises, private non-enterprise entities, individual industrial and commercial households
with employees (hereinafter collectively referred to as employing entities) and the laborers who have formed a labor relationship
with those employing entities.

The state organs, public institutions and social bodies and the laborers who have formed a labor relationship with them shall accord
with the present Provisions.

Article 3

The term ” standards on minimum wages” as mentioned in the present Provisions refers to the minimum labor remunerations that shall
be paid by the employing entities according to law under the precondition that the laborers have provided normal labor within the
promissory working hours or within the working hours as prescribed in the labor contracts concluded according to law.

The term “normal labor” as mentioned in the present Provisions refers to the labor undertaken by a laborer, pursuant to the contract
concluded according to law, within the promissory working hours or within the working hours as prescribed in the contract. A laborer’s
enjoying paid annual vocation, home leave, marriage or funeral leave, maternity leave and conception-control operation leave and
his (her) participating in any social activities during the promissory working hours shall be deemed as having offered normal labor.

Article 4

The administrative departments of labor and social security of the people’s governments at or above the county level shall be responsible
for the supervision and inspection over the employing entities’ fulfillment of the present Provisions within their respective administrative
areas.

The labor unions of all levels shall conduct supervision over the implementation of the present Provisions according to law. Where
a labor union finds that any employing entity pays employees wages in violation of the present Provisions, it shall have the power
to demand the local administrative department for labor and social security to deal with the case.

Article 5

In general, the standards of minimum wages appear in two forms, namely the monthly minimum wage standard and the hourly minimum wage
standard. The monthly minimum wage standard applies to full-time employees while the hourly minimum wage standard to non-fulltime
employees.

Article 6

When determining and regulating the monthly minimum wage standard, one should take into consideration factors such as the minimum
costs of living of the local employees and the people supported by them, the urban residents’ consumption price index, the social
insurance premiums and the public accumulation funds for housing paid by the employee themselves, the average wage of the employees,
the level of economic development, the status of employment and etc..

When determining and regulating the hourly minimum wage standard, one shall, on the basis of the announced monthly minimum wage standard,
take into consideration such factors as the basic pension insurance premiums and the basic medical insurance premiums that shall
be paid by the entity. In addition, one shall appropriately take into consideration the disparities between the non-fulltime laborers
and the fulltime laborers in the aspects of working stability, condition, intensity and welfare, etc ..

For the specific calculating methods for the monthly minimum wage standard and the hourly minimum wage standard, please read the Attachment.

Article 7

Different administrative areas within a province, autonomous region or municipality directly under the Central Government may adopt
different standards of minimum wages.

Article 8

The program for determining and regulating the standards on minimum wages shall be formulated by the administrative department of
labor and social security of the people’s government of a province, autonomous region or municipality directly under the Central
Government in consultation with the labor union, the league of enterprises (or the association of entrepreneurs) at the same level,
which shall be reported and submitted to the Ministry of Labor and Social Security. Such a program shall include the basis, applicable
scope, drawn-out standards and explanations on the determination and regulation of the minimum wages. The Ministry of Labor and Social
Security shall, after receiving the program, collect opinions of the China Labor Union and the China League of Enterprises (or the
China Association of Entrepreneurs).

The Ministry of Labor and Social Security may provide advice on the revision of the program. If it fails to provide any advice on
revision within 14 days from the day when it receives the program, it shall be deemed as having granted consent.

Article 9

The administrative department of a province, autonomous region or municipality directly under the Central Government shall report
its program on the standards on minimum wages applicable in their respective areas to the people’s government of this province, autonomous
region or municipality directly under the Central Government, and shall, within 7 days from the day when the program is approved,
announce it through the bulletin of the local government and at least one newspaper circulated widely in the area. The administrative
department of labor and social security shall report the standards on minimum wages to the Ministry of Labor and Social Security
within 10 days from the day when the program is announced by the administrative department of the province, autonomous region or
municipality directly under the Central Government.

Article 10

If the related factors as prescribed in Article 6 of the present Provisions change, after the standards on minimum wages have been
announced for implementation, they shall be regulated in good time. The standards on minimum wages shall be regulated at least once
every two years.

Article 11

The employing entities shall, within 10 days from the day when the standards on minimum wages are announced, announce the standards
to all their laborers thereof.

Article 12

In the event that a laborer has provided normal work, the wage paid by the employing entity shall, after being deducted of the following
items, not be less than the local standards on minimum wages:

(1)

wages paid for extra work done after the promissory working hours;

(2)

allowances given for the middle shift, night shift, and for working under special environmental conditions such as high temperature,
low temperature, downhole operation, venomousness and nocuousness;

(3)

the welfare treatments to laborers as prescribed in the laws, regulations and by the state.

On the basis of the scientific and reasonable labor quota, an employing entity that adopts the way of paying wages by piece or by
deducting a percentage, shall not pay the laborers less wages than the corresponding standard minimum wages.

In case a laborer, for his own reasons, fails to provide normal labor within the promissory working hours or within the working hours
as provided for in the lawfully concluded labor contract, this Article shall not apply

Article 13

Where an employing entity violates Article 11 of the present Provisions, it shall be ordered to make corrections by the administrative
department of labor and social security. If it violates Article 12 of the present Provisions, it shall be ordered to make up the
wages owing to the laborers by the administrative department of labor and social security, and may be ordered to pay laborers compensations
in the sum of one to fives times of the wages owed within a time limit.

Article 14

Where there arises any dispute over the standards on minimum wages between laborers and employing entities, it shall be coped with
according to the provisions on labor disputes.

Article 15

The present Provisions shall come into force as of March 1, 2004. The Provisions on Minimum Wages in Enterprises promulgated by the
former Ministry of Labor on November 24, 24, 1993 shall be repealed simultaneously.

Attachment:The Methods for Calculating Minimum Wages

1.

Factors to be taken into consideration when determining the standards on Minimum Wages

When determining the standards on minimum wages, one shall generally take into consideration the following factors as the living costs
of urban residents, the social insurance premiums and the public accumulation funds for housing paid by employee themselves, the
average wage of the employees, the rate of unemployment and the level of economic development. The formula may be:

M = f (C, S, A, U, E, a )

M: the standards on minimum wages

C: the average living costs of urban residents;

S: the social insurance premiums and the public accumulation funds for housing paid by employee themselves;

A: the average wage of the employees;

U: the rate of unemployment;

E: the level of economic development;

a: the factors.

2.

The universal methods for determining the standards of minimum wages

(1)

The proportion method, that is firstly to determine a certain proportion of families with the minimum average income as poverty families
in light of the investigation materials of the family livelihood of urban residents, then to calculate the average living cost of
the poverty families and multiply it by the coefficient of the people supported by each employee, and finally to make the result
plus an adjustment.

(2)

The Engel Coefficient method, that is to calculate the minimum expense standard for food pursuant to the annual standard cookbook
and the standard quantity of food taken by people as offered by the National Nutrition Academy as well as the market prices of the
standard food, then to divide the minimum expense standard for food by the Engel Coefficient, thus to work out the standards on minimum
living costs, to multiply the minimum living costs by the coefficient of people supported by each employee and finally to make the
result plus an adjustment.

After working out the standards on monthly minimum wage by the above-mentioned methods, one shall take into consideration the following
factors to make necessary amendment as the social insurance premiums paid by the employee themselves, the public accumulation funds
for housing paid by the employee themselves, the average wage of the employees, social assistance grants and the standards on unemployment
premiums, the status of employment and the level of economic development.

For example, if, in a certain region, the minimum monthly living cost of persons within the groups of minimum income is 210 yuan,
the coefficient of the people supported by each employer is 1.87, the minimum expense for food is 127 yuan, the Engel Coefficient
is 0.604, the average wage is 900 yuan.

a.

By the proportion method, the standard on monthly minimum wage worked out is:

The monthly minimum wage = 210￿￿.87￿￿a￿￿393￿￿a(yuan)(1)

b.

By the method of Engel Coefficient, The monthly minimum wage worked out is:

The monthly minimum wage = 127￿￿.604￿￿.87￿￿a￿￿393￿￿a(yuan)(2)

In the formulas (1) and (2) the adjustment “a” mainly involves the expenses for the pension, unemployment and medical insurance premiums
and the public accumulation funds for housing.

In addition, as it is universally considered that the monthly minimum wage is equivalent to 40-60% of the average monthly wage, the
monthly minimum wage of this region shall be ranged from 360 yuan to 540 yuan.

The standard of the hourly minimum wage = {(the standard of the monthly minimum wage ￿￿0.92￿￿)￿￿1￿￿ the summation of the basic
pension insurance premium and the basic medial insurance premium that shall be paid by their respective entities)}￿￿1￿￿the floating
coefficient)

The determination of the floating coefficient shall mainly take into consideration the disparities between the fulltime employees
and the non-fulltime employees in the aspects of working stability, conditions and intensity and welfares.

Every region may rationally determine the standards on monthly and hourly minimum wages by referring to the calculating methods mentioned
above and in light of the local actual circumstances.



 
Ministry of Labor and Social Security
2004-01-20

 







THE PROVISIONS OF THE STATE INTELLECTUAL PROPERTY OFFICE ON ELECTRONIC PATENT APPLICATION

State Intellectual Property Office

Decree of the State Intellectual Property Office

No. 35

The Provisions on Electronic Patent Application, which are formulated for the purpose of regulating the relevant procedures and requirements
for patent application put forward in the form of electronic documents through the Internet, are hereby promulgated and will come
into effect as of March 12, 2004.

State Intellectual Property Office

February 12, 2004

The Provisions of the State Intellectual Property Office on Electronic Patent Application

Article 1

The present Provisions are hereby formulated in accordance with Article 3 and paragraph 2, Article 16 of the Detailed Rules for
the Implementation of Patent Law, for the purpose of regulating the relevant procedures and requirements for patent application put
forward in the form of electronic documents through the Internet (hereinafter referred to as the electronic patent application).

Article 2

Anyone who wishes to make electronic patent applications shall sign the User Agreement for Registration in Electronic Patent Application
System (hereinafter referred to as the “User Agreement”) with the State Intellectual Property Office beforehand.

A patent agency that opens agency business for electronic patent application shall sign the User Agreement with the State Intellectual
Property Office in the name of the patent agency.

Where an applicant who entrusts a patent agency that has signed the User Agreement with the State Intellectual Property Office to
handle electronic patent application business, does not need to sign an additional User Agreement with the State Intellectual Property
Office.

Article 3

Patent Applications for inventions, utility models and industrial designs may all be filed in the form of electronic documents.

For an applicant who is going through the formalities of international patent application and is at the Chinese phase in accordance
with the provisions of paragraph 2, Article 99 of the Detailed Rules for the Implementation of Patent Law, he may submit the documents
as prescribed in Article 101 of the Detailed Rules for the Implementation of the Patent Law in electronic form.

The present Provisions are not applicable to the international application for patent to the State Intellectual Property Office in
accordance with the provisions of paragraph 1, Article 99 of the Detailed Rules for the Implementation of Patent Law.

Article 4

Where an applicant submits an electronic patent application and relevant documents, he/it shall abide by the file formats, data standards,
operational procedures, and ways of transmission as prescribed in the User Agreement. If the application does not comply with the
forgoing prescriptions, and leads to the failure of normal reception of the electronic patent application and relevant documents
by the electronic patent application system, the electronic patent application shall not be accepted, and the relevant documents
shall be deemed as not being submitted.

Article 5

Where an applicant files a patent application in the form of paper documents which is then accepted, he/it shall submit the relevant
documents in paper form in each process of the patent application. Unless there are provisions otherwise, the State Intellectual
Property Office shall not accept the relevant documents submitted by the applicant in the electronic form, and the application will
be deemed as not being submitted in case it does not comply with the provisions of this paragraph.

Where an applicant files an electronic patent application, which is then accepted, he/it shall submit the relevant documents in the
electronic form in each process of the patent application. Unless there are provisions otherwise, the State Intellectual Property
Office shall not accept the relevant documents submitted by the applicant in paper form. And the application will be deemed as not
having been submitted in case it does not comply with the provisions of this paragraph.

Article 6

Where an applicant files an electronic patent application which is then accepted, he shall, for relevant documents that must be submitted
in their originals as prescribed in the Patent Law and its Detailed Implementation Rules and the examination guidelines, submit the
electronic scanning or image text of the original one, and submit the originals within the prescribed or specified time limit.

Article 7

Where an applicant files an electronic patent application, the application date shall be deemed as the date when the State Intellectual
Property Office receives the patent application documents in conformity with the provisions of Patent Law and its Detailed Implementation
Rules. The State Intellectual Property Office shall issue notice of acceptance to the applicant after receiving the patent application
fees paid by the applicant within a prescribed time limit. Where an applicant submits the patent application documents in conformity
with the provisions of the Patent Law and its Detailed Implementation Rules, but fails to pay patent application fees within the
prescribed time limit, the State Intellectual Property Office shall issue notice that is regarded as withdrawal at the same time
of issuing a notice of acceptance.

Article 8

Where an applicant files an electronic patent application, he/it shall pay patent application fees and various other fees. Unless
otherwise there are special provisions, the various fees for electronic patent application shall be paid in accordance with the amount
of charge rates in existence.

Article 9

Where the State Intellectual Property Office issues various notices, decisions and other documents to an applicant for his/its electronic
patent application in the form of electronic documents, the applicant shall obtain them in the way as prescribed in the User Agreement.

Article 10

All the provisions of the Patent Law and its Detailed Implementation Rules and the examination guidelines on patent application and
relevant documents shall be applicable to the electronic patent application, unless there are special provisions otherwise on patent
application and relevant documents that shall be submitted in the form of paper documents.

Article 11

The power to interpret the present Provisions shall remain with the State Intellectual Property Office.



 
State Intellectual Property Office
2004-02-12

 







AMENDMENTS TO THE CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA

e00254,e03514,e03515

National People’s Congress

Announcement of the National People’s Congress of the People’s Republic of China

The Amendments to the Constitution of the People’s Republic of China, which were adopted at the Second Session of the Tenth National
People’s Congress of the People’s Republic of China on March 14,2004, are hereby promulgated and put into force.

The presidium of the Second Session of the Tenth National People’s Congress of the People’s Republic of China

March 14, 2004 in Beijing

Amendments to the Constitution of the People’s Republic of China

Article 18

The provision in paragraph 7 of the Preamble of the Constitution of “Under the guidance of Marxism-Leninism, Mao Zedong Thought and
Deng Xiaoping Theory” shall be modified as “Under the guidance of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and
the important thought of ‘Three Represents'”. The provision of “Along the road of building socialism with Chinese characteristics”
shall be modified as “Along the socialist road with Chinese characteristics”. And the provision of “and to promote the coordinated
development of material civilization, political civilization and spiritual civilization” shall be added right after the provision
of” to modernize industry, agriculture, national defense and science and technology step by step”. Accordingly, the whole paragraph
shall be modified as “Both the victory in China’s New-Democratic Revolution and the successes in its socialist cause have been achieved
by the Chinese people of all nationalities, under the leadership of the Communist Party of China and guidance of Marxism-Leninism
and Mao Zedong Thought, by upholding truth, correcting errors and surmounting numerous difficulties and hardships. China will be
in the primary stage of socialism for a long time to come. The basic task of the nation is to concentrate its effort on socialist
modernization along the socialist road with Chinese characteristics. Under the leadership of the Communist Party of China and the
guidance of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of ‘Three Represents’, the Chinese
people of all nationalities will continue to adhere to the people’s democratic dictatorship and the socialist road, persevere in
reform and opening to the outside world, steadily improve various socialist institutions, develop the socialist market economy, develop
socialist democracy, improve the socialist legal system and work hard and self-dependently to modernize the country’s industry, agriculture,
national defense and science and technology step by step, and to promote the coordinated development of material civilization, political
civilization and spiritual civilization to build China into a socialist country that is prosperous, powerful, democratic and culturally
advanced.”

Article 19

The provisions in the second sentence of paragraph 10 of the Preamble of “In the long years of revolution and construction, there
has been formed under the leadership of the Communist Party of China a broad patriotic united front that is composed of democratic
parties and people’s organizations, embracing all socialist working people, all patriots who support socialism and all patriots who
stand for reunification of the motherland. This united front will continue to be consolidated and developed.￿￿ shall be modified
as ” In the long years of revolution and construction, there has been formed under the leadership of the Communist Party of China
a broad patriotic united front that is composed of democratic parties and people’s organizations, embracing all socialist working
people, builders of the socialist cause, all patriots who support socialism and all patriots who stand for reunification of the motherland.
This united front will continue to be consolidated and developed.”

Article 20

The provisions in Paragraph 3, Article 10 of the Constitution of “The state may, for the public interest, take over land for its
use in accordance with the law.” shall be modified as “The state may, for the public interest, expropriate or take over land for
public use, and pay compensation in accordance with the law.”

Article 21

Paragraph 2, Article 11 of the Constitution: “The state protects the lawful rights and interests of the individual and private sectors
of the economy, and exercises guidance, supervision and control over the individual and private sectors of the economy.” shall be
modified as “The state protects the lawful rights and interests of the non-public sectors of the economy, including individual and
private sectors of the economy. The state encourages, supports and guides the development of the non-public sectors of the economy,
and exercises supervision and control over the non-public sectors according to law.”

Article 22

Article 13 of the Constitution: “The state protects the right of citizens to own lawfully earnings, savings, houses and other lawful
property.” and” The state protects by law the right of citizens to inherit private property” shall be modified as “The lawful private
property of citizens may not be encroached upon.” and ” The state protects by law the right of citizens to own private property and
the right to inherit private property.” and ” The state may, for the public interest, expropriate or take over private property of
citizens for public use, and pay compensation in accordance with the law.”

Article 23

One paragraph shall be added to Article 14 of the Constitution as paragraph 4, that is “The state establishes and improves the social
security system fitting in with the level of economic development.”

Article 24

One paragraph shall be added to Article 33 of the Constitution as paragraph 3, that is “The state respects and protects human rights.”
And paragraph 3 shall be changed into paragraph 4 accordingly.

Article 25

Paragraph 1, Article 59 of the Constitution: “The National People’s Congress is composed of deputies elected by the provinces, autonomous
regions, municipalities directly under the Central Government, and by the armed forces. All the minority ethnic groups are enpost_titled
to appropriate representation.” shall be modified as “The National People’s Congress is composed of deputies elected by the provinces,
autonomous regions, municipalities directly under the Central Government, and special administrative regions, as well as by the armed
forces. All the minority ethnic groups are enpost_titled to appropriate representation.”

Article 26

Item 20 of Article 67 of the Constitution concerning the authority of the Standing Committee of the National People’s Congress: “(20)
To decide on the enforcement of martial law throughout the country or in particular provinces, autonomous regions or municipalities
directly under the Central Government,” shall be modified as “(20) To decide on the declaration of the country as a whole or particular
provinces, autonomous regions or municipalities directly under the Central Government to be under a state of emergency”.

Article 27

Article 80 of the Constitution: “The President of the People’s Republic of China, in pursuance of the decisions of the National People’s
Congress and its Standing Committee, promulgates statutes, appoints or removes the Premier, Vice-Premiers, State Councilors, Ministers
in charge of ministries or commissions, the Auditor-General and the Secretary-General of the State Council; confers state medals
and post_titles of honor; issues orders of special pardons; proclaims martial law; proclaims a state of war; and issues mobilization orders.”
shall be modified as :”The President of the People’s Republic of China, in pursuance of the decisions of the National People’s Congress
and its Standing Committee, promulgates statutes, appoints or removes the Premier, Vice-Premiers, State Councilors, Ministers in
charge of ministries or commissions, the Auditor-General and the Secretary-General of the State Council; confers state medals and
post_titles of honor; issues orders of special pardons; declares a state of emergency, declares a state of war, and issues a mobilization
order.”

Article 28

Article 81 of the Constitution: “The President of the People’s Republic of China receives foreign diplomatic envoys on behalf of
the People’s Republic of China and; in pursuance of the decisions of the Standing Committee of the National People’s Congress, appoints
or recalls plenipotentiary representatives abroad, and ratifies or abrogates treaties and important agreements concluded with foreign
states. ” shall be modified as “The President of the People’s Republic of China represents the People’s Republic of China in conducting
activities of national affairs and receiving foreign diplomatic representatives and; in pursuance of the decisions of the Standing
Committee of the National People’s Congress, appoints or recalls plenipotentiary representatives abroad, and ratifies or abrogates
treaties and important agreements concluded with foreign states.”

Article 29

Item 16 of Article 89 of the Constitution concerning the functions and powers of the State Council: “(16) To decide on the enforcement
of martial law in part regions of provinces, autonomous regions, and municipalities directly under the Central Government” shall
be modified as “(16) To decide by law to place parts of provinces, autonomous regions, and municipalities directly under the Central
Government under a state of emergency”.

Article 30

Article 98 of the Constitution: “The term of office of the people’s congresses of provinces, municipalities directly under the Central
Government, counties, cities and municipal districts is five years. The term of office of the people’s congresses of townships, ethnic
townships and towns is three years” shall be modified as “The term of office of local people’s congresses at various levels is five
years.”

Article 31

The post_title of Chapter IV of the Constitution: “The National Flag, the National Emblem and the Capital” shall be modified as “The National
Flag, the National Anthem, the National Emblem and the Capital”. One paragraph shall be added to Article 136 of the Constitution
as paragraph 2: “The national anthem of the People’s Republic of China is ‘March of the Volunteers’.”



 
National People’s Congress
2004-03-14

 







INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING ANNEX I (7) AND ANNEX II (III) TO THE BASIC LAW OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Interpretation by the Standing Committee of the National People’s Congress Regarding Annex I (7) and Annex II (III) to the Basic Law
of the Hong Kong Special Administrative Region of the People’s Republic of China

(Adopted at the 8th Meeting of the Standing Committee of the Tenth National People’s Congress on April 6, 2004) 

At its 8th Meeting, the Standing Committee of the Tenth National People’s Congress examined the motion proposed by the Council of
Chairmen requesting examination of the Draft Interpretation by the Standing Committee of the National People’s Congress Regarding
Annex I (7) and Annex II (III) to the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China.
Having consulted the Committee for the Basic Law of the Hong Kong Special Administrative Region under the Standing Committee of the
National People’s Congress, the Standing Committee of the National People’s Congress has decided, in accordance with the provisions
in Subparagraph (4) of Article 67 of the Constitution of the People’s Republic of China and the provisions in the first paragraph
of Article 158 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, to make the following
interpretation of the provisions of Annex I (7) to the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic
of China, under the Method for the Selection of the Chief Executive of the Hong Kong Special Administrative Region, which reads,
“If there is a need to amend the method for selecting the Chief Executives for the terms subsequent to the year 2007, such amendments
must be made with the endorsement of a two-thirds majority of all the members of the Legislative Council and the consent of the Chief
Executive, and they shall be reported to the Standing Committee of the National People’s Congress for approval”, and the provisions
of Annex II (III) , under the Method for the Formation of the Legislative Council of the Hong Kong Special Administrative Region
and its Voting Procedures, which reads, “With regard to the method for forming the Legislative Council of the Hong Kong Special Administrative
Region and its procedures for voting on bills and motions after 2007, if there is a need to amend the provisions of this Annex, such
amendments must be made with the endorsement of a two-thirds majority of all the members of the Council and the consent of the Chief
Executive, and they shall be reported to the Standing Committee of the National People’s Congress for the record” : 

1.  The phrases “subsequent to the year 2007” and “after 2007” stipulated in the two Annexes mentioned above include the year
2007. 

2.  The provisions in the two Annexes mentioned above that “if there is a need” to amend the method for selecting the Chief
Executives for the terms subsequent to the year 2007 or the method for forming the Legislative Council and its procedures for voting
on bills and motions after 2007 mean that they may be amended or remain unamended. 

3.  The provisions in the two Annexes mentioned above that any amendment must be made with the endorsement of a two-thirds majority
of all the members of the Legislative Council and the consent of the Chief Executive and shall be reported to the Standing Committee
of the National People’s Congress for approval or for the record mean the legislative process that must be gone through before the
method for selecting the Chief Executive and the method for forming the Legislative Council and its procedures for voting on bills
and motions are to be amended. Such an amendment may become effective only if it has gone through the said process, including the
approval finally given by the said Committee in accordance with law or the reporting to the Committee for the record. The Chief Executive
of the Hong Kong Special Administrative Region shall present a report to the Standing Committee of the National People’s Congress
as regards whether there is a need to make an amendment, and the Committee shall, in accordance with the provisions in Articles 45
and 68 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, make a determination in
the light of the actual situation in the Hong Kong Special Administrative Region and in accordance with the principle of gradual
and orderly progress. The bills on amendments to the method for selecting the Chief Executive and the method for forming the Legislative
Council and its procedures for voting on bills and motions and the proposed amendments to such bills shall be introduced by the Government
of the Hong Kong Special Administrative Region into the Legislative Council. 

4.  If no amendment is made to the method for selecting the Chief Executive, the method for forming the Legislative Council
and its procedures for voting on bills and motions as stipulated in the two Annexes mentioned above, the provisions relating to the
method for selecting the Chief Executive in Annex I will remain applicable to the method for selecting the Chief Executive, and the
provisions relating to the method for forming the third term of the Legislative Council in Annex II and the provisions relating to
its procedures for voting on bills and motions in Annex II will remain applicable to the method for forming the Legislative Council
and its procedures for voting on bills and motions.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







THE SUMMARY OF THE SYMPOSIUM ON ISSUES CONCERNING APPLICABLE LEGAL NORMS FOR THE TRIAL OF ADMINISTRATIVE CASES

Supreme People’s Court

Circular of the Supreme People’s Court on Printing and Issuing the Summary of the Symposium on Issues Concerning Applicable Legal
Norms for the Trial of Administrative Cases

Fa [2004] No.96

To higher people’s courts of various provinces, autonomous regions, and municipalities directly the Central Government, as well as
the Higher People’s Court of Xinjiang Uygur Autonomous Region Production and Construction Corps Court:

The Summary of the Symposium on Issues Concerning Applicable Legal Norms for the Trial of Administrative Cases is hereby printed and
issued to you, please conscientiously put it into practice. In case of any question during the implementation thereof, please timely
report it to this court.

Supreme People’s Court

May 18, 2004

The Summary of the Symposium on Issues Concerning Applicable Legal Norms for the Trial of Administrative Cases

Since there are relatively more levels and categories of legal norms involved in the trial of administrative cases, great changes
have taken place in relevant rules for application of laws after the implementation of the legislative law, thus giving rise to all
kinds of difficult problems often appearing in the course of the application of laws on how to identify legal base and solve conflicts
of legal norms. Whether or not such problems can be properly solved will directly affect the fairness and efficiency of the trial
of administrative cases. Furthermore, with the enhancement of the level of rule of law in our country and requirements adaptable
to the accession to the World Trade Organization, the trial of administrative cases is becoming more and more outstanding in solving
conflicts of legal norms and safeguarding the uniformity of the legal system. For the purpose of accurately applying legal norms,
ensuring the fair trial of administrative cases, maintaining the uniformity and sanctity of national legal system, and promoting
the exercise of administrative functions according to law, the administrative division for the trial of administrative cases of the
Supreme People’s Court once conducted an investigation into a special topic concerning prominent issues on applicable legal norms
for the trial of administrative cases, and sought opinions from relevant departments. In October, 2003, during the symposium held
by the Supreme People’s court in Shanghai on the trial of administrative cases carried out in people’s courts throughout the nation,
the Supreme People’s court had a discussion on a special topic concerning issues on applicable legal norms for the trial of administrative
cases, and the participants reached a consensus on some common problems by summarizing experiences from the trial of administrative
cases subject to the legislative law, the administrative procedure law and other pertinent laws. Minutes of this symposium are hereby
notified as follows:

1.

With Regard to the Base for the Trial of Administrative Cases.

According to related provisions of the administrative procedure law and the legislative law, people’s courts shall try administrative
cases in compliance with laws, administrative regulations, local regulations, regulations on the exercise of autonomy, and specific
regulations, as well as with reference to rules. When referring to such rules, whether or not the provisions thereof are legal and
valid shall be judged, and those lawful and effective rules shall be applied. In accordance with the provisions in the legislation
law, ordinance on the procedures for the formulation of administrative regulations and the ordinance on the procedure for formulation
of rules governing the interpretation of laws, administrative regulations and rules, people’s courts shall, adopt legal interpretation
formulated by the Standing Committee of the National People’s Congress, the interpretation of administrative regulations as promulgated
by the State Council or departments authorized by the State Council as legal base of the trial of administrative cases; as for the
interpretation of rules which are made by formulating authority of such rules and have the same legal force as the said rules, people’s
courts shall refer to it when trying the administrative cases.

In consideration of the course of change and development in our legislative procedure since the founding of the People’s Republic
of China, the existing effective administrative regulations are classified into three categories: first, administrative regulations
as formulated and promulgated by the State Council; second, administrative regulations, prior to the implementation of the legislation
law, promulgated by departments under the State Council upon the approval of the State Council according to the procedures for formulation
of administrative regulations effective at that time. However, after the implementation of the legislation law, legal documents promulgated
by departments under the State Council upon the approval of the State Council don’t fall under the scope of administrative regulations
any more; third, other administrative regulations confirmed by the State Council when sorting out the administrative regulations.

In the practice of trial of administrative cases, interpretation for specific application and other legal documents made by relevant
departments to guide the execution of laws or implement administrative measures are often used, mainly including: interpretations
for specific application of laws, regulations or rules as made by departments under the State Council, people’s government or their
competent departments of provinces, municipalities, autonomous regions and major municipalities ; decisions, orders or other legal
documents with general binding force as formulated and promulgated by people’s governments at and above the county level and their
competent departments. Such interpretation for specific application and other legal documents, which are often used by administrative
authorities as direct base for specific administrative acts, are not formal legal sources, thus failing to be legal norms with legal
force upon people’s courts.

However, if interpretation for specific application and other legal documents, on which the specific administrative acts of the sued
are based, are legal, valid, justifiable and appropriate after examined by people’s courts, such administrative acts shall be deemed
to be valid when their legality is confirmed; People’s courts may make comments on reasons for their decisions in terms of whether
or not the interpretation for specific application and other legal documents are legal, valid, justifiable or appropriate.

2.

With Regard to the Rules for the Application of Conflicts of Legal Norms

If there are conflicts arising from different legal consequences specified by two or two more legal norms in respect of the same matter,
in all cases with a view to deciding and selecting applicable legal norms, such rules for the application of laws shall be followed
that a higher level law shall prevail over a lower level law, lex posterior derogat priori, and a special law shall prevail over
a general law according to provisions of the legislation law. Since matters involved in conflict rules are of relative significance,
if pertinent authorities have different opinions on whether or not there are conflicts, or there is any question in terms of the
legality and validity of legal norms that shall prevail or the application fails to be decided according to the rules for the application
laws, all such cases shall be submitted to competent authorities for decision level by level according to the provisions of the legislation
law.

(1)

Judgment and Application for the Incompliance of a Lower Level Law with a Higher Level Law

Should provisions of a lower level law fail to comply with those of a higher level law, people’s courts shall apply such a higher
law in principle. Under such circumstances that many current specific administrative acts are conducted subject to a lower level
law without referring or applying to a higher level law, therefore, people’s court shall, upon examining the compliance of specific
administrative acts with laws, judge whether or not a lower level law conforms to a higher level law at the same time so as to safeguard
the uniformity of the legal system. If a lower level law comes in conflicts with a higher level law by such judgment, the legality
of specific administrative acts conducted by the sued shall be confirmed according to a higher level law. From the practice of the
trial of administrative cases, common circumstances that a lower level laws contravenes a higher level law are noticed as follows:
In a lower level law, the scope of subject of right stipulated by a higher level law is narrowed or such scope is broadened in violation
of legislative purposes for such higher level law; Under a lower level law, rights laid down in a higher level law are restricted
or deprived or scope of such rights is widened in violation of legislative purposes for such higher level law; The scope of administrative
subjects or the scope of functions and duties of such administrative subjects are enlarged by a lower level law; The period to perform
legal functions as laid down by a higher level law is extended by a lower level law; In a lower level law, obligations or the scope,
nature or conditions of subjects with such obligations as defined by a higher level law are enlarged or limited by the means of reference
and permission for use; Applicable conditions in contravention of a higher level law are increased or limited by a lower level law;
Under a lower level law, acts to which administrative punishments shall be given, their categories and margins as stipulated by a
higher level law are enlarged or limited; Nature of illegal activities having been stipulated by a higher level law is changed by
a lower level law; the scope of application of compulsory measures, their categories and means as stipulated in a lower level low
go beyond their counterparts in a higher level law, and conditions for application of such measures under a higher level law are
also increased or limited in the same lower level law; Administrative licenses in nonconformity with provisions of the administrative
licensing law are prescribed by, or administrative licensing requirements in violation of a higher law are added by laws, regulations
or other legal documents; or other circumstances of conflicts.

Should provisions concerning the implementation of laws, administrative regulations or local regulations be not abolished explicitly
after amendment thereto, people’s courts shall, upon applying such laws, administrative regulations or local regulations, deal with
the following circumstances separately: Where there are discrepancies between provisions in respect of enforcement, and amended laws,
administrative regulations or local regulations, such provisions shall not be applicable; In case enforcement provisions corresponding
to the amendment to laws, administrative regulations or local regulations loss their own grounds for enforcement, thus failing to
be implemented separately, such provisions shall not be applicable; In the event enforcement provisions are not inconsistent with
revised laws, regulations or local regulations, such provisions shall be applicable.

(2)

Relationship between the Application of Special and General Provisions

Should there are respectively general and special provisions under different clauses of the same law, administrative regulation, local
regulations, regulations on the exercise of autonomy and separate regulation as well as rules in respect of the same matter, the
special provisions shall prevail.

Where there are differences between new general provisions and old special provisions in respect of the same matter among laws, administrative
regulations or local regulations, people’s courts shall deal with the application of either kind of such provisions under the following
circumstances in principle: Should new general provisions stipulate the continuous application of old special provisions, such new
special provisions shall be applicable; If old special provisions are repealed by new general provisions, such new general provisions
shall be applicable. In case of failure to decide whether or not new general provisions approve the continuous application of old
special provisions, people’s courts shall cease the trial of administrative cases. In the event the case falls under the scope of
laws, it shall be submitted to the Supreme People’s Court level by level for a decision of the Standing Committee of the National
People’s Congress; If the case falls under the scope of administrative regulations, it shall be submitted to the Supreme People’s
Court level by level for a decision of the State Council; Should the case fall under the scope of local regulations, it shall be
submitted to higher people’s courts for a decision of formulating authorities.

(3)

Selective Application of Conflicts between Local Regulations and Ministerial Regulations

If local regulations differ from ministerial regulations in terms of the same matter, people’s courts shall deal with application
under circumstances as follows:

1)

If ministerial regulations are empowered by laws or administrative regulations to stipulate enforcement provisions, such enforcement
provisions shall prevail;

2)

Should ministerial regulations, in case of no formulation of laws or administrative regulations, prescribe provisions on matters authorized
by decision or order of the State Council or matters concerning macroeconomic control of the Central Government and matters required
to be unified by the State in terms of rules of marketing activities as well as foreign trade and foreign investment, such provisions
shall prevail;

3)

If local regulations empowered by laws or administrative regulations to prescribe specific provisions in line with the actual situations
within the same administrative area, such provisions shall prevail;

4)

If local regulations specify provisions on matters concerning local affairs, such provisions shall prevail;

5)

Where local regulations, in case of no formulation of laws or administrative regulations, prescribe provisions on matters other than
those required to be stipulated uniformly by the State, according to the specific situations in the same administrative area, such
provisions shall prevail; and

6)

Other circumstances under which application can be made directly. In case of failure to determine what to be applied, the trial of
administrative cases shall be ceased and such cases shall be submitted to the Supreme People’s Court level by level, which shall,
in accordance with subparagraph 2, paragrph1 of Article 86 in the Legislation Law, render such cases to competent authorities for
handle.

(4)

Selective Application of Conflicts of Rules.

In case of any discrepancy in respect of the same matter between ministerial regulations and local government regulations, people’s
courts shall deal with the application according to the circumstances as follows:

1)

Where laws or administrative regulations empower ministerial regulations to stipulate enforcement provisions, such provisions shall
prevail;

2)

Should ministerial regulations, in case of no laws or administrative regulations, prescribe provisions on matters authorized by decision
or order of the State Council or matters concerning macroeconomic control of the Central Government and matters required to be unified
by the State in terms of rules of marketing activities as well as foreign trade and foreign investment, such provisions shall have
prevail;

3)

If local government regulations empowered by laws or administrative regulations to prescribe specific provisions in line with the
actual situations within the same administrative area, such provisions shall prevail;

4)

If local government regulations specify provisions on affairs concerning the specific administrative management within the same administrative
area, such provisions shall prevail; and

5)

Other circumstances under which application can be made directly. In case of failure to determine what to be applied, the trial of
administrative cases shall be ceased and such cases shall be submitted to the Supreme People’s Court level by level for the decision
of the State Council.

Should regulations enacted by various ministries under the State Council vary from each other in terms of the same matter,people’s
courts shall select the application according to the following circumstances:

1)

Ministerial regulations having no conflicts with their higher level law shall be applicable;

2)

In case of no conflicts with a higher level law, provisions of regulations as formulated according to exclusive functions and powers
shall prevail;

3)

Provisions of regulations as jointly formulated by two or more ministries under the State Council in terms of matters on the scope
of their functions and powers, shall prevail over provisions as separately enacted by one of the said ministries ; and

4)

Other circumstances under which application can be made directly. In case of failure to determine what to be applied, the trial of
administrative cases shall be ceased and such cases shall be submitted to the Supreme People’s Court level by level for the decision
of the State Council.

Should other legal documents enacted by ministries under the State Council or people’s governments of various provinces, municipalities
and autonomous regions be inconsistent with each other in respect of the same matter, application shall be dealt with in light of
the abovementioned spirits.

3.

With Regard to Rules for the Application of New and Old Legal Norms

According to the general awareness and practice in the trial of administrative cases, if opposite persons for administration commit
acts prior to the implementation of new laws, while their specific administrative acts are conducted after the implementation thereof,
provisions of old laws shall be apply to substantial problems and new laws shall be applicable to procedure problems when the legality
of such specific administrative acts is being verified by people’s courts, excluding the circumstances as follows:

(1)

Otherwise provided for by laws, regulation or rules;

(2)

Application of new laws is more favorable for protecting legitimate rights and interest of opposite persons for administration; and

(3)

Substantial provisions of new laws shall be applicable subject to specific administrative acts.

4.

With Regard to Issues on the Interpretation for the Specific Application of Legal Norms

Interpreting legal norms in the decision of cases is an important part for people’s courts to conduct application of laws. Legal norms
applied by people’s courts shall be usually interpreted pursuant to their common meanings; Where there are professional meanings
for such legal norms, such meanings shall prevail; In case of unclear or ambiguous understanding, their meanings may be confirmed
according to the context, legislative purposes, target and principles.

Where wordings like “etc.” and “others” are expressed under legal norms besides enumeration of typical examples to which such norms
are applicable, such norms shall fall under the category of exemplified provisions with incomplete examples. All matters synoptically
expressed with words of “etc” and “other” and so on shall be matters other than those explicitly enumerated and include circumstances
similar to matters enumerated.

People’s courts shall, upon interpreting and applying laws, appropriately handle the relationship between legal effects and social
effects, not only strictly apply provisions of laws, maintain the sanctity of such provisions, and ensure the accuracy, uniformity,
and continuity of legal application, but also attach importance to keep pace with the times, focus on social effects as a result
of trial of administrative cases, avoid rigidly understanding and application of legal clauses and maintain interests of the State
and the public in the legal application.



 
Supreme People’s Court
2004-05-18

 







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...