Brazilian Laws

INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE CREDIT CARD PRESCRIBED IN THE CRIMINAL LAW

Interpretation by the Standing Committee of the National People’s Congress Regarding the Credit Card Prescribed in the Criminal Law
of the People’s Republic of China

(Adopted at the 13th Meeting of the Standing Committee of the Tenth National People’s Congress on December 29, 2004) 

In light of the problems encountered in judicial practice, the Standing Committee of the National People’s Congress has discussed
the implication of “the credit card” prescribed in the Criminal Law and gives the interpretation as follows: 

“The credit card” prescribed in the Criminal Law refers to the electronic payment card that is issued by commercial banks or other
financial institutions and that performs the full or part of the functions of payment for consumption, credit loan, transference
and settlement, cash deposit and withdrawal, etc.  

The Interpretation is hereby announced.

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







CIRCULAR ON ISSUES CONCERNING SORTING OUT AND CHECKING THE PREFERENTIAL TAX POLICIES OF DEVELOPMENT ZONES

State Administration of Taxation

Circular on Issues concerning Sorting out and Checking the Preferential Tax Policies of Development Zones

GuoShuiFa [2004] No. 9

January 16th, 2004

The administrations of state taxation and local taxation of all provinces, autonomous regions, municipalities directly under the Central
Government, and cities directly under state planning:

In recent years, there have been, in some regions, issues of formulating preferential tax policies in excess of authority and of implementing
them in violation of regulations, and of deducting or exempting taxes arbitrarily in the construction of development zones, and the
issue is more serious in a few regions. With a view to strengthening and regulating taxation administration on development zones,
firmly putting down and correcting issues of tax deduction or exemption in excess of authority, and maintaining the dignity and unification
of the state tax law, so as to ensure the orderly construction of development zones and promote the healthy development of socialist
market economy, the State Administration of Taxation determines to sort out and check the preferential tax policies of development
zones according to the relevant provisions of the State Council, and hereby makes the following Circular on the relevant issues:

I.

The scope of sorting out and checking the preferential tax policies

1.

The economic and technological development zones, coastal economic opening zones, high and new technology industrial development zones
and other state-level gardens and zones established upon the approval of the State Council;

2.

The various development zones established upon the approval of the provincial governments; and;

3.

The various development zones established by all levels of governments themselves under the provincial level.

II.

Contents of sorting out and checking the preferential tax policies

1.

Whether, in the development zones established upon the approval of the State Council, there are issues of granting preference tax
on enterprises in excess of the provisions of the uniform policies of the state:

(1)

Whether an enterprise that enjoys preferential tax policies of development zones is registered in a development zone but operates
its business outside the zone;

(2)

Whether the preferential tax is granted to an enterprise whose qualifications as a “newly-established enterprise” hasn’t been examined
strictly; or

(3)

Whether there are issues of enlarging the scope of application for preferential tax policies, increasing preferential proportion,
or extending preferential terms without permission.

2.

Whether, in the various development zones established upon the approval of the provincial governments, there are issues of formulating
preferential tax policies of development zones in excess of the power of taxation administration, or issues of enjoying state-level
preferential tax policies of the development zones by reference. And

3.

Whether the various development zones established by all levels of governments themselves under the provincial level have any issue
of illegally formulating preferential tax policies and enjoying preferential tax policies of development zones of the state level
or provincial level by reference.

III.

Methods of sorting out and checking the preferential tax policies

The sorting out and checking of the preferential tax policies this time shall adopt methods of self-examination of the grass root
tax authorities and selective examination by the upper level tax authorities. Before the end of March of 2004, the tax authorities
of the cities (prefectures) or counties (districts) shall carry out self-examination and self-correction, which shall be checked
and accepted by the provincial tax authorities. In the April of 2004, the State Administration of Taxation shall make selective examinations
in the tax law enforcement inspection.

IV.

Requirements for the sorting out and checking of the preferential tax policies

1.

Improving understanding, earnestly strengthening the organization of and guidance to the work of sorting out and checking. It is an
important act to carry out the sorting out and examination on preferential tax policies of development zones for practicing the important
thought of “Three Represents”, sticking to the principle of “gathering money for the state, enforcing law for the people”, strengthening
taxation administration, rectifying and regulating taxation order, and meeting with the requirements of the WTO. The tax authorities
at all levels shall strengthen the concept of legal system and awareness to overall situation, strengthen organization and guidance
earnestly, implement the system of top leader responsibility, and carry out the sorting out and checking work earnestly under the
leadership of the departments of policy and regulation, with the coordination and cooperation of the relevant departments of taxation
policy, taxation collection administration, foreign affairs, checking or supervisions, etc. Going through the motions is strictly
prohibited in the sorting out so as to ensure the deepening of the inspection, and the downright sorting out, as well as getting
actual effect.

2.

Performing duties, earnestly checking on, and strictly implementing the uniform preferential tax policies of development zones of
the state. All levels of tax authorities shall immediately stop the enforcement of preferential tax policies of development zones
formulated by the local regions in excess of authority, and propose to the organs thereof that they correct them, if the correction
cannot be made temporarily, that shall be reported to the State Administration of Taxation level by level. Those preferential tax
policies of development zones that are implemented in violation of regulations shall be corrected resolutely, and the taxes unpaid
in the year 2003 shall be added to the original amount. Those enterprises that evade taxes or cheat in tax payment by availing themselves
of the preferential tax policies of development zones shall be investigated into and punished by putting them on records according
to law. In case the tax authorities fail to strictly implement the tax law, practice favoritism and malpractices, or are involved
in breach of duty or derelict of duty, the responsible persons and the persons directly liable shall be punished seriously in accordance
with the relevant provisions.

3.

All levels of tax authorities shall, according to the uniform disposition by the State Administration of Taxation, complete various
tasks of sorting out and checking the preferential tax policies, summarize them earnestly, and report the situations to the State
Administration of Taxation according to the facts. Each region shall report the summary of the work of sorting out and checking and
the statement thereof to the State Administration of Taxation (department of policies and regulations) before the end of March of
2004.

Annex: Statistical Form of the Situations on Sorting out and Checking the Preferential Tax Policies of Development Zones (Omitted)



 
State Administration of Taxation
2004-01-16

 







REGULATION OF AND SUPERVISION OVER THE BANKING INDUSTRY LAW

Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry

(Adopted at the 6th Meeting of the Standing Committee of the Tenth National People’s Congress on December 27, 2003
and promulgated by Order No.11 of the President of the People’s Republic of China on December 27, 2003) 

Contents 

Chapter I    General Provisions 

Chapter II   The Regulatory Authority 

Chapter III  Regulatory and Supervisory Responsibilities  

Chapter IV   Supervisory Measures 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This law is enacted with a view to improving regulation of and supervision over the banking industry, standardizing
such regulation and supervision, preventing and mitigating risks in the banking industry, protecting the lawful rights and interests
of depositors and other customers, and promoting the sound development of the banking industry. 

Article 2  The banking regulatory authority under the State Council shall be responsible for the regulation of and supervision
over the financial institutions of the banking industry and their business operations throughout the country. 

For purposes of this law, the “financial institutions of the banking industry” refer to the financial institutions established in
the People’s Republic of China that receive deposits from the general public, including, among others, commercial banks, urban credit
cooperatives and rural credit cooperatives, and policy banks. 

The provisions of this Law pertaining to the regulation of and supervision over the financial institutions of the banking industry
are applicable to the regulation and supervision of the financial asset management companies, trust and investment corporations,
finance companies and financial leasing companies established in the territory of the People’s Republic of China and other financial
institutions established with the approval of the banking regulatory authority under the State Council. 

The banking regulatory authority under the State Council shall, in accordance with the relevant provisions of this Law, regulate
and supervise the financial institutions that, upon its approval, are established outside the People’s Republic of China, as well
as the business operations conducted abroad by the financial institutions mentioned in the preceding two paragraphs. 

Article 3  The objectives of regulation of and supervision over the banking industry are to promote the lawful, sound and steady
operation of the banking industry and preserve public trust in the industry. 

The banking industry shall be regulated and supervised in such a way as to protect fair competition in the industry and increase
the competitiveness of the industry. 

Article 4  When exercising regulation and supervision, the banking regulatory authority shall follow the principles of law-abiding
openness, impartiality and efficiency.  

Article 5  Performance of the duties of supervision in accordance with law by banking regulatory authority and its staff members
engaged in supervision shall be protected by law. Local governments, government departments at various levels, public organizations
and individuals shall not interfere. 

Article 6  The banking regulatory authority under the State Council shall establish a mechanism with the People’s Bank of China
and other financial regulatory authorities under the State Council for sharing supervisory information.  

Article 7  The banking regulatory authority under the State Council may establish a cooperative mechanism of supervision with
the banking regulatory authorities in other countries or regions for cross-border supervision. 

Chapter II 

The Regulatory Authority 

Article 8  In light of the need to perform its duties, the banking regulatory authority under the State Council may set up local
offices. It shall exercise unified leadership and administration of such offices. 

The local offices of the banking regulatory authority under the State Council shall perform their supervisory duties within the scope
authorized by the said authority. 

Article 9  The staff members of the banking regulatory authority who are engaged in supervision shall have the professional
knowledge and work experience commensurate with the positions they are holding. 

Article 10  Staff members of the banking regulatory authority shall be devoted to their duties, act in accordance with law and
be impartial and honest; they shall not take advantage of their positions to seek illegitimate benefits, or concurrently hold positions
in enterprises such as financial institutions. 

Article 11  Staff members of the banking regulatory authority shall, in accordance with law, guard State secrets, and it is
incumbent upon them to guard the secrets of the financial institutions of the banking industry and of the parties subject to their
supervision. 

For exchanging supervisory information with the banking regulatory authorities of other countries and regions, the banking regulatory
authority under the State Council shall make arrangements for preserving the confidentiality of information. 

Article 12  The banking regulatory authority under the State Council shall make public its supervisory procedures, and establish
a supervisory responsibility system and an internal supervisory system. 

Article 13  Local governments and the relevant government departments at various levels shall cooperate with and provide assistance
to the banking regulatory authority when the latter deals with risks confronted by financial institutions of the banking industry,
investigates and handles violations of law in finance, and exercises supervision in other manners. 

Article 14  The auditing, supervisory and other departments under the State Council shall, in accordance with the provisions
of relevant laws, oversee the activities of the banking regulatory authority under the State Council. 

Chapter III 

Regulatory and Supervisory Responsibilities 

Article 15  The banking regulatory authority under the State Council shall, in accordance with laws and administrative regulations,
formulate and promulgate supervisory rules and regulations governing the financial institutions of the banking industry and their
business activities. 

Article 16  The banking regulatory authority under the State Council shall, in accordance with the requirements and procedures
provided for in laws and administrative regulations, examine, before giving approval, the establishment, change, termination and
business scope of financial institutions of the banking industry.  

Article 17  Where an application is submitted for the establishment of a financial institution of the banking industry and where
such an institution intends to replace a shareholder that holds more than the specified percentage of the total amount of capital
or shares, the banking regulatory authority under the State Council shall examine the source of capital, financial strength, ability
to replenish capital and integrity of the shareholders.  

Article 18  The types of services offered by a financial institution of the banking industry within its business scope shall,
in accordance with relevant regulations, be subject to examination and approval by the banking regulatory authority under the State
Council or be submitted to the authority for the record. With regard to the types of services that are subject to examination and
approval or to being put on record, the banking regulatory authority under the State Council shall, in accordance with relevant laws
and administrative regulations, formulate regulations and make them known to the public.  

Article 19  Without approval by the banking regulatory authority under the State Council, no institution or individual may establish
a financial institution of the banking industry or engage in business activities of such an institution. 

Article 20  The banking regulatory authority under the State Council shall exercise control of the qualifications for the positions
of the directors and senior managers of the financial institutions of the banking industry. Specific measures in this regard shall
be formulated by the banking regulatory authority under the State Council. 

Article 21  The rules of prudent operation of the financial institutions of the banking industry shall be stipulated in laws
or administrative regulations, and they may also be formulated by the banking regulatory authority under the State Council in accordance
with relevant laws and administrative regulations. 

The rules of prudent operation mentioned in the preceding paragraph shall cover, among other things, risk management, internal control,
capital adequacy, asset quality, loan loss provisioning, risk concentration, connected transactions, and liquidity management of
assets. 

The financial institutions of the banking industry shall strictly observe the rules of prudent operation. 

Article 22   The banking regulatory authority under the State Council shall, within a prescribed period of time, make a
decision of approval or disapproval in writing in response to the following applications; if it makes a decision of disapproval,
it shall explain the reasons why: 

(1) for the establishment of a financial institution of the banking industry, it is six months from the date it receives the application
documents; 

(2) for the change or termination of a financial institution of the banking industry, for the business scope or for offering more
types of services within the business scope, it is three months from the date it receives the application documents; and 

(3) for examination of the qualifications of a director or senior manager, it is 30 days from the date it receives the application
documents. 

Article 23  The banking regulatory authority shall conduct off-site supervision of the business operations and risk profile
of the financial institutions of the banking industry, for which it shall establish an information system to analyse and assess the
risk profile of such institutions. 

Article 24  The banking regulatory authority shall conduct on-site inspection of the business operations and risk profile of
the financial institutions of the banking industry.  

The banking regulatory authority under the State Council shall formulate procedures for on-site inspection to standardize such inspection. 

Article 25  The banking regulatory authority under the State Council shall supervise the financial institutions of the banking
industry on a consolidated basis. 

Article 26 With respect to the proposal made by the People’s Bank of China for inspection of a financial institution of the banking
industry, the banking regulatory authority under the State Council shall respond within 30 days from the date it receives the proposal. 

Article 27  The banking regulatory authority under the State Council shall establish a rating system and an early-warning mechanism
for supervision over the financial institutions of the banking industry, in order to determine, on the basis of the rating and risk
profile of such institutions, the frequency and scope of on-site inspection of the institutions, as well as other supervisory measures
that need to be taken. 

Article 28  The banking regulatory authority under the State Council shall establish a system of post responsibility for identifying
and reporting emergencies in the banking industry. 

When it identifies any emergency that may lead to systemic risks in the banking industry and thus seriously jeopardize social stability,
the banking regulatory authority shall immediately report the matter to the leading member of the banking regulatory authority under
the State Council; the leading member shall, when deeming it necessary, immediately report to the State Council while informing the
People’s Bank of China, the finance department and other relevant departments under the State Council of the matter. 

Article 29  The banking regulatory authority under the State Council shall, in conjunction with the People’s Bank of China,
the finance department and other relevant departments under the State Council, establish a system for coping with emergencies in
the banking industry, including formulating contingency plans, designating institutions and staff members, specifying their responsibilities
and the measures and procedures, in order to ensure that emergencies in the banking industry are handled in a timely and effective
manner. 

Article 30  The banking regulatory authority under the State Council shall be responsible for compiling, in a unified manner,
statistics and reports of the financial institutions of the banking industry throughout the country and, in accordance with the relevant
regulations of the State, publish the statistics and reports. 

Article 31  The banking regulatory authority under the State Council shall guide and oversee the activities of the self-regulated
organizations of the banking industry. 

The self-regulated organizations of the banking industry shall submit their articles of association to the banking regulatory authority
under the State Council for the record. 

Article 32  The banking regulatory authority under the State Council may engage in international exchange and cooperation related
to regulation of and supervision over the banking industry. 

Chapter IV 

Supervisory Measures 

Article 33  The banking regulatory authority shall, in light of the need for performing its duties, have the power to require
the financial institutions of the banking industry to submit, in accordance with relevant regulations, their balance sheets, profit
statements, other financial accounting statements, statistical reports and information concerning business operations and management,
as well as the audit reports prepared by certified public accountants. 

Article 34  The banking regulatory authority may take the following measures to conduct on-site inspection, as required by prudent
supervision: 

(1)to enter a financial institution of the banking industry for on-site inspection; 

(2) to interview staff members of a financial institution and require them to provide explanations on the matters under inspection; 

(3) to check and make copies of the financial institution’s documents and materials related to the matters under inspection, and
to seal up the documents and materials that are likely to be removed, concealed or destroyed; and 

(4) to examine the computer system with which the financial institution controls its business data. 

On-site inspection shall be subject to approval by the leading member of the banking regulatory authority. For on-site inspection,
there shall be no less than two inspectors, who shall produce their legal certificates and the written notification of inspection.
Where there are less than two inspectors, or no legal certificates and written notification of inspection are produced, the financial
institution shall have the right to refuse to accept inspection. 

Article 35  The banking regulatory authority may, in light of the need for performing its duties, hold supervisory consultations
with the directors and senior managers of a financial institution of the banking industry, asking them to explain the important matters
concerning business operations and risk management. 

Article 36  The banking regulatory authority shall instruct financial institutions of the banking industry to disclose, truthfully
and in accordance with relevant regulations, to the public information, including, among other things, their financial and accounting
reports, statements of risk management, changes in the directors and senior managers and other important matters. 

Article 37  Where a financial institution of the banking industry violates the rules of prudent operation, the banking regulatory
authority under the State Council or its office at the provincial level shall instruct it to rectify within a time limit; if it fails
to comply at the expiration of the time limit, or the violation seriously threatens the sound and steady operation of the institution,
jeopardizes the lawful rights and interests of the depositors and other customers, the banking regulatory authority under the State
Council or its office at the provincial level may, with the approval of the leading member, take the following measures, depending
on the seriousness of the circumstances: 

(1) instructing it to suspend part of its business or ceasing to give approval to its starting of new businesses; 

(2) restricting the distribution of dividends and other returns; 

(3) restricting asset transfers; 

(4) instructing the holding shareholders to transfer their rights or restricting the rights of the shareholders concerned; 

(5) instructing the institution to replace the directors or senior managers or restricting their rights; and 

(6) ceasing to give approval to its establishment of new branches. 

After rectification, the financial institution shall submit a report to the banking regulatory authority under the State Council
or its office at the provincial level. After the said authority or office inspects the institution and accepts it as conforming to
the rules of prudent operation, it shall, within three days after the date of acceptance, discontinue the measures prescribed in
the preceding paragraph. 

Article 38  Where a financial institution of the banking industry is experiencing or is likely to experience a credit crisis,
thereby seriously jeopardizing the lawful rights and interests of depositors and other customers, the banking regulatory authority
under the State Council may, in accordance with law, take over the institution or facilitate its restructuring. The take-over and
restructuring shall be carried out in accordance with relevant laws and the regulations of the State Council. 

Article 39  Where a financial institution of the banking industry operates in violation of laws or is not operated or managed
properly, thereby seriously threatening financial order and undermining public interests unless it is closed, the banking regulatory
authority under the State Council shall have the power to close it. 

Article 40  Where a financial institution of banking industry is taken over, restructured, or closed, the banking regulatory
authority under the State Council shall have the power to require the directors, senior managers and other staff members of the institution
to perform their duties according to the requirements of the authority. 

In the course of the take-over, restructuring or liquidation after the closure of the institution, the banking regulatory authority
under the State Council may, with the approval of the leading member of the authority, take the following measures against the directors
and senior managers who are directly in charge and the other staff members who are directly responsible:  

(1) where their departure from the People’s Republic of China will cause heavy losses to the interests of the State, notifying the
exit control authority of the need to prevent them, in accordance with law, from leaving the country; and 

(2) submitting an application to the judicial authority for prohibiting their moving to other places or their transferring of their
property, or for establishing other rights on their property. 

Article 41  A banking regulatory authority shall, with the approval of the leading member of the banking regulatory authority
under the State Council or of its office at the provincial level, have the power to inquire about the bank accounts of the financial
institution of the banking industry suspected of violating laws in financial affairs, and the bank accounts of its staff members
and connected parties; and may, with the approval of the said leading member, submit an application to the judicial authority for
freezing the illegally obtained funds that are suspected of being about to be moved to other places or concealed.  

Chapter V 

Legal Responsibility 

Article 42  Any staff member of the banking regulatory authority engaged in supervision commits any of the following acts shall
be given administrative sanctions according to law; and if a crime is constituted, he shall be investigated for criminal responsibility
in accordance with law: 

(1) in violation of relevant regulations, examining and giving approval to the establishment, change or termination of a financial
institution of the banking industry, or its business scope or the services it offers within its business scope; 

(2) in violation of relevant regulations, conducting on-site inspection of a financial institution of the banking industry; 

(3) failing to report an emergency in accordance with the provisions in Article 28 of this Law; 

(4) in violation of relevant regulations, inquiring about bank accounts or submitting an application for freezing funds; 

(5) in violation of relevant regulations, taking measures against or penalizing a financial institution of the banking industry;
and 

(6) other acts such as abuse of power and neglect of duties. 

Any staff member of the banking regulatory authority engaged in supervision who commits embezzlement, bribery or divulgence of State
secrets or the business secrets he knows, which constitutes a crime, shall be investigated for criminal responsibility according
to law; and if it is not serious enough to constitute a crime, he shall be given administrative sanctions according to law. 

Article 43  Where a financial institution of the banking industry is established without authorization, or the business activities
of financial institutions are illegally engaged in, the banking regulatory authority under the State Council shall outlaw such an
institution and such business activities. If a crime is constituted, criminal responsibility shall be investigated according to law;
if the case is not serious enough to constitute a crime, the unlawful gains shall be confiscated by the banking regulatory authority
under the State Council; if the unlawful gains exceed RMB 500,000 yuan, a fine of not less than the amount of the unlawful gains
but not more than five times that amount shall, in addition, be imposed; and if there are no unlawful gains or the amount of such
gains is less than 500,000 yuan, a fine of not less than 500,000 yuan but not more than 2,000,000 yuan shall be imposed.  

Article 44  Where a financial institution of the banking industry commits one of the following acts, it shall be instructed
by the banking regulatory authority under the State Council to rectify; if there are unlawful gains, such gains shall be confiscated;
if the unlawful gains exceed 500,000 yuan, it shall, in addition, be fined not less than the amount of such gains but not more than
five times that amount ; if there are no unlawful gains, or such gains are less than 500,000 yuan, it shall be fined not less than
500,000 yuan but not more than 2,000,000 yuan; if the circumstances are particularly serious, or if the institution fails to rectify
within the prescribed period of time, the banking regulatory authority under the State Council may instruct it to suspend business
for rectification or revoke its business license; if a crime is constituted, the institution shall be investigated for criminal responsibility
according to law: 

(1) establishing a branch without approval; 

(2) making changes or terminating business operations without approval; 

(3) in violation of relevant regulations, engaging in business activities for which no approval is obtained or which are not put
on record; and 

(4) in violation of relevant regulations, raising or lowering interest rates on deposits or loans. 

Article 45  Where a financial institution of the banking industry commits one of the following acts, the banking regulatory
authority under the State Council shall instruct it to rectify and shall, in addition, impose on it a fine of not less than 200,000
yuan but not more than 500,000 yuan; if the circumstances are particularly serious, or if the institution fails to rectify within
the prescribed period of time, the said authority may instruct it to suspend business for rectification or revoke its business license;
if a crime is constituted, the institution shall be investigated for criminal responsibility according to law: 

(1) appointing directors or senior managers without subjecting their qualifications for the positions to examination; 

(2) refusing to accept or obstructing the off-site   supervision or on-site inspection; 

(3) providing statements, reports, documents or materials that are false or conceal important facts; 

(4) failing to disclose information to the public in accordance with relevant regulations; 

(5) violating the rules of prudent operation to a serious extent; and 

(6) refusing to enforce the measures as provided for in Article 37 of this Law. 

Article 46  Where a financial institution of the banking industry fails to provide statements, reports, documents or materials
in accordance with relevant regulations, the banking regulatory authority shall instruct it to rectify. If it fails to comply within
the prescribed period of time, it shall be fined not less than 100,000 yuan but not more than 300,000 yuan. 

Article 47  Where a financial institution of the banking industry violates laws, administrative regulations or regulations of
the State governing regulation and supervision of the banking industry, the banking regulatory authority may, in addition to the
penalties specified in Articles 43, 44, 45 and 46 of this Law, take the following measures, depending on the seriousness of the circumstances: 

(1) to instruct the financial institution to impose disciplinary sanctions on the directors and senior mangers who are directly in
charge and the other persons who are directly responsible; 

(2) if the case is not serious enough to constitute a crime, to give disciplinary warnings to the directors and senior managers who
are directly in charge and the other persons who are directly responsible and impose on them each a fine of not less than 50,000
yuan but not more than 500,000 yuan; and 

(3) to disqualify the directors and senior mangers who are directly in charge for a specified period of time or for life, or to
prohibit them and the other persons who are directly responsible from working in the banking industry for a specified period of time
or for life. 

Chapter VI 

Supplementary Provisions 

Article 48  Where with regard to the regulation of and supervision over the policy banks and asset management companies established
in the territory of the People’s Republic of China, laws and administrative regulations provide otherwise, the provisions there shall
prevail. 

Article 49  Where with regard to the regulation of and supervision over the wholly foreign-funded financial institutions, Chinese-foreign
joint venture financial institutions and branches of foreign financial institutions of the banking industry that are established
in the territory of the People’s Republic of China, laws and administrative regulations provide otherwise, the provisions there shall
prevail. 

Article 50  This Law shall go into effect as of February 1, 2004.

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







THE PROVISIONS ON THE ADMINISTRATION OF FOREIGN-FUNDED ADVERTISING ENTERPRISES

State Administration for Industry and Commerce, Ministry of Commerce

Order of the State Administration for Industry and Commerce and the Ministry of Commerce

No. 8

The Provisions on the Administration of Foreign-funded Advertising Enterprises, which were deliberated and adopted by the State Administration
for Industry and Commerce and the Ministry of Commerce, are hereby promulgated.

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

Bo Xilai, Minister ofthe Ministry of Commerce

March 2nd, 2004

The Provisions on the Administration of Foreign-funded Advertising Enterprises

Article 1

With a view to strengthening the administration on the foreign-funded advertising enterprises, and promoting the sound development
of advertising industry, the present Provisions are formulated in accordance with the laws and administrative regulations governing
the management of foreign investments and advertisements.

Article 2

“Foreign-funded advertising enterprises” as mentioned in the present Provisions refers to the Sino-foreign equity joint enterprises
and Sino-foreign contractual joint ventures lawfully engaging in advertising operations (hereinafter referred to as Sino-foreign
equity joint or contractual advertising enterprises, the same below) and foreign-funded advertising enterprises.

Article 3

Establishing a foreign-funded advertising enterprise, one shall abide by the present Provisions as well as the Law of the People’s
Republic of China on Sino-foreign Equity Joint Enterprises, the Law of the People’s Republic of China on Sino-foreign Contractual
Joint Enterprises, the Law of the People’s Republic of China on Foreign-funded Enterprises, the Advertising Law of the People’s Republic
of China, Regulations on the Management of Advertisements, the Regulations on the Qualifications of Advertising Operators or Issuers
of Advertisements and the Phraseology for Determining the Business Scope of Advertising, and other relevant laws, regulations and
rules.

Article 4

The project proposal and the feasibility study report of a foreign-funded advertising enterprise shall be subject to the examination
and approval of the State Administration for Industry and Commerce (SAIC) and its authorized administration for industry and commerce
of provincial level. The contracts and articles of associations of a foreign-funded advertising enterprise shall be subject to the
examination and approval of the Ministry of Commerce and its authorized administrative department of the provincial level.

Article 5

A foreign-funded advertising enterprise that meets the prescribed conditions may engage in designing, making, issuing, or agency of
various advertisements businesses both home and abroad. The specific business scope shall be subject to the examination and approval
of the SAIC and its authorized administration for industry and commerce of provincial level in pursuance of the Regulations on the
Qualifications of Advertising Operators or Issuers of Advertisements and the Phraseology for Determining the Business Scope of Advertising.

Article 6

The establishment of a Sino-foreign equity joint and contractual advertising enterprise, one shall conduct according to the procedures
as follows:

(1)

The main Chinese partner shall submit the documents as listed in Article 12 to the local administration for industry and commerce
competent for examining and approving the registration of foreign-funded enterprises, who shall give an opinion on the preliminary
examination, then submit the aforesaid documents to the administration for industry and commerce of the provincial level authorized
by the SAIC for examination and approval, or submit them to the SAIC for examination and approval via the administration for industry
and commerce of a province, autonomous region, municipality directly under the Central Government or city directly under State planning
upon examination and approval.

The SAIC and its authorized administration for industry and commerce of the provincial level shall make a decision on approval or
disapproval within 20 days as of the day when they received the complete set of documents.

(2)

After obtaining the Opinion on the Examination and Approval of Foreign-funded Advertising Enterprise Project issued by the SAIC or
its authorized administration for industry and commerce of the provincial level, the main Chinese partner shall submit the documents
as listed in Article 13 to the administrative department of commerce of the provincial level where the to-be-established enterprise
is located. After it is approved by the administrative department of commerce of the provincial level upon examination, a Foreign-funded
Enterprise Approval Certificate shall be issued. If it is disapproved, written explanations shall be given.

(3)

The main Chinese partner shall, pursuant to the relevant regulations on enterprise registration, handle the enterprise registration
formalities in the SAIC or in its authorized administration for industry and commerce competent for examining and approving the registration
of foreign-funded enterprise on the strength of the Opinion on the Examination and Approval of the Foreign-funded Advertising Enterprise
Project issued by the SAIC and its authorized administration for industry and commerce, the Foreign-funded Enterprise Approval Certificate
issued by the administrative department of commerce of the provincial level and other documents as required by the laws and regulations.

Article 7

The establishment of a foreign-funded advertising enterprise, one shall conduct according to the procedures as follows:

(1)

The foreign investor shall submit to the SAIC the documents as listed in Article 14 .

The SAIC shall make a decision on approval or disapproval within 20 days as of the day it receives the complete set of documents.

(2)

After obtaining the Opinion on the Examination and Approval of Foreign-funded Advertising Enterprise Project issued by the SAIC, the
foreign investor shall submit the documents listed in Article 15 to the administration for industry and commerce of the provincial
level where the to-be-established enterprise is located. The administration for industry and commerce of the provincial level shall
give a preliminary examination opinion and submit the aforesaid documents to the Ministry of Commerce for examination and approval
within 20 days.

The Ministry of Commerce shall make a decision on approval or disapproval within 20 days as of the day it receives the documents.
After examination and approval, a Foreign-funded Enterprise Approval Certificate shall be issued.

(3)

The foreign investor shall, according to the relevant regulations on the enterprise registration, go through the enterprise registration
formalities in the SAIC on the strength of the Opinion on the Examination and Approval of the Foreign-funded Advertising Enterprise
Project issued by the SAIC, the Foreign-funded Enterprise Approval Certificate issued by the administrative department of commerce
of the provincial level and other documents as prescribed in the laws and regulations.

Article 8

Where a foreign-funded advertising enterprise files an application for establishing a branch, it shall conduct according to the procedures
as follows:

(1)

It shall submit the documents as listed in Article 16 to the local administrative department of commerce and the administration for
industry and commerce of the provincial level separately;

(2)

The local administrative department of commerce of the provincial level shall make a decision on approval or disapproval after consulting
the administration for industry and commerce of the same level. Where it approves, it shall simultaneously send a copy of approval
document to the administrative department of commerce of the provincial level where the to-be-established branch is located and the
administration for industry and commerce of the provincial level; if it disapproves, it shall give written explanations; and

(3)

It shall handle the enterprise registration formalities in the administration for industry and commerce competent for examining and
approving the registration of foreign-funded enterprises where the to-be-established branch is located on the strength of the approval
documents on establishment of branches and other documents as prescribed by the laws and regulations.

Article 9

Establishing a Sino-foreign equity joint or contractual advertising enterprise, the applicant shall not only meet the conditions as
provided for in the relevant laws and regulations, but also meet the following requirements:

(1)

All partners shall be enterprises engaging in advertising business;

(2)

All partners shall have existed and have engaged in advertising business for not less than 2 years since establishment; and

(3)

Having advertising achievements.

Article 10

Establishing a foreign-funded advertising enterprise, the applicant shall not only meet the relevant conditions as provided for in
the laws and regulations, but also meet the following conditions:

(1)

The investor shall be an enterprise mainly engaging in advertising business; and

(2)

The investor has existed and has engaged in advertising business for not less than 3 years since establishment.

Article 11

Where a foreign-funded advertising enterprise files an application for establishing a branch, it shall meet the following basic conditions:

(1)

Having paid up the registered capital; and

(2)

Its annual business volume is not less than RMB 20 million Yuan.

Article 12

Applying for the establishment of a Sino-foreign equity joint or contractual advertising enterprise, the main Chinese partner shall
submit the following documents to the SAIC or its authorized administration for industry and commerce of the provincial level according
to the procedures as provided for in Article 6 :

(1)

The application for the establishment of Sino-foreign equity joint or contractual enterprise;

(2)

The Notice on the Pre-approval of Enterprise Name;

(3)

The resolutions made by the partners’ shareholders’ assembly (board of directors);

(4)

The project proposal for the establishment of Sino-joint equity joint or contractual enterprise and the feasibility research report
jointly formulated by all partners;

(5)

The registration certifications of all partners;

(6)

The credit-standing certifications of all partners;

(7)

The bylaws for advertising management; and

(8)

The preliminary examination opinions of the local administration for industry and commerce.

Article 13

Applying for the establishment of a Sino-foreign equity joint or contractual advertising enterprise, the applicant shall, in accordance
with Article 6 , submit the following documents to the administrative department of commerce of the provincial level:

(1)

The Opinion on the Examination and Approval of Foreign-funded Advertising Enterprise Project issued by the SAIC or its authorized
administration for industry and commerce of the provincial level;

(2)

The contract for establishing a foreign-funded advertising enterprise and articles of association;

(3)

The project feasibility research report;

(4)

The registration certifications of all partners;

(5)

The credit-standing certifications of all partners;

(6)

The Notice on the Pre-approval of Enterprise Name;

(7)

The bylaws for advertising management; and

(8)

The preliminary examination opinions of the local administrative department of commerce.

Article 14

Applying for the establishment of a foreign-funded advertising enterprise, the investor shall submit the following documents to the
SAIC according to the procedures prescribed in Article 7 :

(1)

The application for the establishment of foreign-funded advertising enterprise;

(2)

Resolutions of the investor’s shareholder’s assembly (board of directors);

(3)

The project proposal formulated by an investor and the feasibility research report;

(4)

The registration certification of the investor;

(5)

The credit-standing certification of the investor; and

(6)

The Notice on the Pre-approval of Enterprise Name.

Article 15

Establishing a foreign-funded advertising enterprise, the foreign investor shall submit the following documents to the Ministry of
Commerce according to the procedures prescribed in Article 7 :

(1)

The application for establishing a foreign-funded advertising enterprise;

(2)

The Opinion on the Examination and Approval of Foreign-funded Advertising Enterprise Project;

(3)

The project proposal and feasibility research report formulated by the investor;

(4)

The registration certification of the investor;

(5)

The credit-standing certification of the investor; and

(6)

The articles of association for the establishment of the foreign-funded advertising enterprise.

Article 16

Where a foreign-funded advertising enterprise files an application for establishing a branch, it shall submit the following documents
to the administrative department of commerce of the provincial level and the administration for industry and commerce of the same
level:

(1)

The application of a foreign-funded advertising enterprise for establishing a branch;

(2)

The resolution of the board of directors;

(3)

The annual audit report on advertising operations;

(4)

The Enterprise Business License;

(5)

The business place certification; and

(6)

The enterprise’ capital verification report.

Article 17

After establishing a foreign-funded advertising enterprise, it shall, if any of the following circumstances occurs, report for approval
separately and modify the registration of the enterprise according to the procedures as provided for in Articles 6 and 7:

(1)

Modifying a partner or transferring equity;

(2)

Modifying the scope for advertising business; or

(3)

Modifying the registered capital.

Article 18

while establishing an advertising enterprise, a foreign investor may entrust a qualified agency to handle the application formalities
for it.

Article 19

All the documents required to submit according to the present Provisions shall be expressed in Chinese.

Article 20

Where a foreign investor who invests in advertising industry by merging a domestic advertising enterprise, he shall handle the formalities
as provided for in the relevant regulations and the present Provisions on merge of domestic enterprises by foreign investors.

Article 21

Where investors from Hong Kong, Macao and Taiwan establish advertising enterprises in the Mainland of China, they shall handle the
formalities by referring to the present Provisions.

Article 22

Where a foreign-funded enterprise files an application for increasing advertising business, it shall handle the formalities by referring
to the present Provisions.

Article 23

Foreign investors are allowed to hold majority equity as of the promulgation date of the present Provisions, which shall be not more
than 70% of the total equity. Foreign investors are allowed to establish foreign-funded advertising enterprises as of December 10th,
2005.

Article 24

The responsibility to interpret the present Provisions shall remain with the SAIC and the Ministry of Commerce.

Article 25

The present Provisions shall come into effect as of the promulgation. Some Provisions on the Establishment of Foreign-funded Advertising
Enterprises ([1994] No. 304) printed and distributed by the State Administration for Industry and Commerce shall be repealed simultaneously,
and any other documents contradictory to the present Provisions shall be null and void simultaneously.

Attachment:

With a view to promoting the establishment of Hong Kong and Mainland and Macao and Mainland closer economic partnership, encouraging
Hong Kong service providers and Macao service providers to establish advertising enterprises in the Mainland, the following supplementary
provisions governing Hong Kong and Macao investors’ investments in advertising industry are formulated in accordance with the Mainland
and HK Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement:

1. As of January 1st, 2004, Hong Kong service providers and Macao service providers are allowed to establish wholly-funded advertising
enterprises.

2. Hong Kong service providers or Macao service providers shall meet the definition of “the service providers” and other relevant
requirements in the Mainland and HK Closer Economic Partnership Arrangement or in the Mainland and Macao Closer Economic Partnership
Arrangement.

3. A Hong Kong service provider or Macao service provider shall be a legal person engaging in advertising operations (including the
circumstance that the advertising isn’t its major business).

4. Where any other provisions on investments in the Mainland advertising industry made by Hong Kong service providers and Macao service
providers contradictory to the present Provisions, the latter shall prevail.



 
State Administration for Industry and Commerce, Ministry of Commerce
2004-03-02

 







THE MEASURES ON PUNISHMENT OF THE ILLEGAL ACTS OF THE LAWYERS AND LAW FIRMS

The Ministry of Justice

The Order of the Ministry of Justice of the People’s Republic of China

No.86

The Measures on Punishment of the Illegal Acts of the Lawyers and Law Firms, adopted at the executive meeting of the Ministry of Justice
of the People’s Republic of China on February 23, 2004, is Hereby promulgated and shall be implemented as of May 1, 2004. The Measures
on Punishment of the Illegal Acts of the Lawyers promulgated by the No.50 Order of the Ministry of Justice on January 31, 1997 are
repealed simultaneously.

Minister of the Ministry of Justice Zhang Fusen

March 19, 2004

The Measures on Punishment of the Illegal Acts of the Lawyers and Law Firms

Article 1

These measures are formulated in accordance with the laws and regulations such as the Law of the People’s Republic of China on Administrative
Penalty and the Law of the People’s Republic of China on Lawyers (hereinafter referred to as the Lawyer Law) and other relevant regulations
on the purpose of regulating the supervision and punishment of the illegal acts of the laws and law firms and promoting the development
of the lawyer profession.

Article 2

The judicial administration organ shall impose the administrative penalty on the illegal acts of the lawyers and law firms in accordance
with the relevant laws and regulations such as the Provisions of the Judicial Administration Organ on the Procedures of Administrative
Punishment and these measures.

Article 3

The judicial administration organ shall impose the administrative penalties on the lawyers and law firms on the principle of openness
and fairness.The imposition of administrative penalty shall be based on fact and corresponded with the facts, nature, circumstances
and harm to the society of the illegal acts.

Article 4

The judicial administrative organs shall make full use of the function of the lawyers associations when investigating and dealing
with the illegal acts of the lawyers and law firms.

Article 5

The administrative penalties on the illegal acts of the lawyers have the following kinds:

(1)

a disciplinary warning;

(2)

confiscating any illegal income;

(3)

cessation of practice;

(4)

revoking the practice certificate.

Article 6

The administrative penalties on the illegal acts of the law firms have the following kinds:

(1)

a disciplinary warning;

(2)

confiscating any illegal income;

(3)

cessation of practice;

(4)

revoking the practice certificate.Those which shall confiscate any illegal income may also impose a fine of no less than one and no
more than five times the amount of the illegal income.

Article 7

A lawyer who commits an act in violation of the provisions of Paragraph (1) to (10) of Article 44 and Article 45 of the Lawyer Law
shall be punished according to the Lawyer Law and these measures.

Article 8

If a lawyer commits any of the following acts, which belong to “other acts in respect of which penalties should be imposed” provided
in Paragraph 11 of Article 44 of the Lawyer Law, the judicial administration organ shall impose the corresponding penalty in accordance
with the Lawyer Law and these measures:

(1)

simultaneously practicing in a law firm and another legal service office;

(2)

simultaneously defending or representing a client and the third person conflicting with the client’s interests in the same case;

(3)

respectively defending or representing the clients whose interests are conflicted with each other in two or more than two cases that
have common interests;

(4)

while acting as a legal person for a unit, defending or representing the opposite party of the unit or other parties that have conflict
of interests with the unit.

(5)

making false promises to the client for the purpose of soliciting business;

(6)

publicizing dishonestly or improperly by the way of mass media, advertisement or other means.

(7)

fabricating and spreading false facts to impairing and slandering the reputation of other lawyers or law firms;

(8)

competing unethically by taking advantage of the relations with the judicial organs, administrative organs or other organizations
with the function of social administration.

(9)

discharging the duty unconscientiously so that causing loses to the client after accepting authorization.

(10)

failing to provide the agreed legal service to the client without good reason after accepting authorization.

(11)

overstepping the limits of authorization to engage in the activities that have nothing to do with the legal matter authorized by the
client.

(12)

impairing the interests of the client deliberately or colluding with the opposite party or the third person maliciously to impair
the interests of the client.

(13)

threatening or intimidating the client or detaining the materials provided by the client without good reason on the purpose of obstructing
the client to renounce authorization.

(14)

violating the provisions on the control of charges or agreement in the contract on charges to charge fees or things that are beyond
the provisions or agreement.

(15)

providing legal service in a capacity of non-lawyer in the term of practice.

(16)

meeting with a judge, prosecutor, arbitrator or other relevant working personnel who undertakes the case, or meeting with a judge
, prosecutor, arbitrator or other relevant personnel unilaterally in violation with the provisions in the term of undertaking the
case.

(17)

for a lawyer who once served as a judge or prosecutor, acting as agent ad litem or defend client within two years after he left his
post, or acting agent ad litem or defend client in a case once undertaken by him when he was on the post.

(18)

taking along with non-lawyer personnel to meet a criminal suspect who is under detention, a defendant or a criminal under detention
in violation with the provisions, or violating the relevant administrative regulations in the term of meeting.

(19)

providing false evidences to the judicial administrative organs or lawyers associations, concealing important facts or having other
deceitful acts.

(20)

continuing to practice in the term of a penalty of cessation of practice, or continuing to practice in the name of the original law
firm while the law firm is on the sanction of suspending business for rectification or after the law firm has been cancelled.

(21)

having any other act of violating laws, professional ethics or ethics of a citizen and impairing the professional image of a lawyer
seriously.

Article 9

If a law firm has any of the following acts, the judicial administration organ of the province, autonomous region or municipality
shall issue a disciplinary warning, a penalty of confiscating any illegal income or suspending business for rectification for no
less than three months and no more than one year:

(1)

practicing in a name that hasn’t been examined, altering or leasing the name of the law firm without authorization.

(2)

failing to go through the registration for the change in the provided deadline when changing the contents of its name , articles of
association, residence, person responsible for the law firm, partner, residence, partnership agreement and so on.

(3)

obstructing the partner, cooperative person or lawyer to retire by unethical acts.

(4)

admitting a person who doesn’t meet the provided conditions to be a partner, cooperative person or the person responsible for the
law firm.

(5)

failing to centrally accept authorization, sign written authorization contracts and the contracts on charges, collect the fee items
from the parties in violation with the provisions, or failing to centrally take care of and use special-purpose documents, financial
bills or business archives in violation with the law.

(6)

failing to draw up lawful bills of the lawyers’ legal service or failing to submit effective vouchers of the expenses on practicing
the cases.

(7)

violating the provisions on the control of charges of legal services or agreement in the contract on charges to extend the limits
on fees, raise the fee standard, or charge fees that are beyond the provisions or agreement.

(8)

establishing a working place￿￿an antechamber or a branch office without permission.

(9)

when engaging a lawyer or other working staff, failing to sign an engagement contracts with the person to be engaged, or failing to
handle social pool insurance.

(10)

maliciously escaping the debts of the law firm or its branch office.

(11)

publicizing dishonestly or improperly by the way of mass media, advertisement or other means.

(12)

soliciting business by unfair means such as paying middleman’s fees, giving discounts or interests promises.

(13)

competing unethically by taking advantage of the relations with the judicial organs, administrative organs or other organizations
with the function of social administration.

(14)

fabricating and spreading false facts to impairing and slandering the reputation of other lawyers or law firms.

(15)

appointing the lawyers of the law firm to defend or represent both parties or the clients whose interests are conflicted with each
other, with the exception of the only law firm in the same county(city) which has been approved by both parties.

(16)

divulging commercial secrets or private affairs of a party concerned.

(17)

providing false evidences to the judicial administrative organs or lawyers associations, concealing important facts or having other
deceitful acts.

(18)

permitting or tacitly permitting the law firm’s lawyer that is in the term of cessation of practice to continue practicing.

(19)

providing facilities for the illegal practice of a person who has not obtained a lawyer’s practice certificate or a lawyer belonging
to other law firm by the means of drawing up or providing letters of introduction, special documents of lawyer’s service, receipts
on payment and so on.

(20)

printing lawyer’s card￿￿sign or drawing up other relevant identity certificates of the lawyers, or failing to stop the above-mentioned
acts of the persons in the law firm.

(21)

permitting or tacitly permitting the law firm’s lawyer to purchase commodities, pay the fees of traveling, submit expenses, fit up
house￿￿or provide means of traffic and communication.

(22)

failing to pay duties on the laws.

(23)

other acts in respect of which penalties should be imposed.

Article 10

If a law firm has any of the following circumstances, the judicial administrative organ of the province, autonomous region or municipality
shall issue a sanction of revocation of its practicing certificate; any illegal income shall be confiscated; and may also impose
a fine:

(1)

refusing to correct after being imposed a sanction of suspending business for rectification, or continuing to practice in the term
of suspending business for rectification.

(2)

bribing to a judge, prosecutor, arbitrator or other relevant personnel.

(3)

having been subjected to criminal punishment.

(4)

having other illegal acts that seriously impaired the professional image of a lawyer.

Article 11

If the judicial administrative organ finds or receives a complaint that a lawyer or law firm has any illegal act provided in the Lawyer
Law and these measures, it shall place on file for investigation￿￿comprehensively, objectively and justly ascertaining the facts
and collecting evidences. The lawyer or law firm investigated shall state the facts accurately and provide the relevant materials.

Article 12

The judicial administrative organ may authorize lawyers associations to investigate the illegal acts of the lawyers and the law firms.The
authorized lawyers association shall comprehensively, objectively, justly ascertain the facts and collect evidences, and give advices
to the administrative penalties imposed by the judicial administrative organs.

Article 13

The judicial administrative organ shall inform the lawyer or law firm the ascertained facts, the reason and basis for the penalty,
and the lawful rights of the party before imposing an administrative penalty. For those informed orally, it shall make a written
record. The lawyer or law firm has the right to state and argue his case, and has the right to apply for hearing according the laws.The
lawyer or law firm that doesn’t accept the decision on the administrative penalty rendered by the judicial administration organ has
the right to apply for reconsideration or instituting administrative proceedings according the laws.

Article 14

If a lawyers association finds those circumstances which shall impose an administrative penalty according to the provisions in the
Lawyer Law and these measures when investigating and treating the acts of the lawyers or law firms violating lawyers’ ethics and
practicing disciplines, it shall submit them to the judicial administrative organ which has right for jurisdiction.

Article 15

If the judicial administrative organ or lawyers association considers the acts of the lawyers or law firms constituting a crime when
investigating and treating the illegal acts of them, it shall transfer them to the relevant organs to investigate them for criminal
liability.

Article 16

The Ministry of Justice is responsible for the interpretation of these measures.

Article 17

These measures shall be come into force as of May 1, 2004. The Measures on Punishment of the Illegal Acts of the Lawyers promulgated
by the Ministry of Justice on January 31, 1997 are repealed simultaneously.



 
The Ministry of Justice
2004-03-19

 







CIRCULAR OF THE MINISTRY OF CONSTRUCTION ON PRINTING AND DISTRIBUTING THE INTERIM PROVISIONS OF CONSTRUCTION PROJECT DESIGN OF FOREIGN ENTERPRISES WITHIN THE TERRITORY OF THE PEOPLE’S REPUBLIC OF CHINA

The Ministry of Construction

Circular of the Ministry of Construction on printing and distributing the Interim Provisions of Construction Project Design of Foreign
Enterprises within the Territory of the People’s Republic of China

JianShi [2004] No. 78

May 10, 2004

Construction departments of all provinces and autonomous regions, construction commissions of municipalities directly under the Central
Government (Beijing Municipal Commission of Urban Planning), construction departments of relevant ministries under the State Council,
relevant enterprises under the State-Owned Assets Supervision and Administration Commission of the State Council, Project Administration
of PLA General Logistics Capital Barracks Department, the Construction Bureaus of Xinjiang Production and Construction Corporation:

The Interim Provisions of Construction Project Design of Foreign Enterprises in the Territory of the People’s Republic of China are
hereby printed and distributed to you. Please comply with and implement them.

Annex: Interim Provisions of Construction Project Design of Foreign Enterprises within the Territory of the People’s Republic of China

Annex:Interim Provisions of Construction Project Design of Foreign Enterprises within the Territory of the People’s Republic of China

Article 1

These Provisions are enacted in accordance with the Construction Law of the People’s Republic of China, the Regulation on the Administration
of the Survey and Design of Construction Projects, the Regulation on the Quality Administration of Construction Projects, the Measures
for Survey and Design Bidding of Construction Projects, other laws, regulations and rules with a view to regulate the management
of foreign enterprises undertaking construction project design activities within the territory of the People’s Republic of China.

Article 2

The term “foreign enterprises” in these Provisions refers to the enterprises that are registered out of the territory of the People’s
Republic of China and are engaged in construction project design.

Article 3

Foreign enterprises that offer services of drawing up initial designs of construction projects (basic design), construction drawing
design (detailed design) and other relevant designs within the territory of the People’s Republic of China in forms of trans-border
payment shall abide by the Provisions.

The Provisions do not apply to designs before initial designs of construction projects (basic design).

Article 4

Foreign enterprises to assume construction project designs within the territory of the People’s Republic of China shall select at
least one Chinese designing enterprise with construction project design qualification endorsed by construction administrations (hereinafter
referred to as Chinese designing enterprise) for cooperative design between foreign and Chinese enterprises (hereinafter referred
to as cooperative design), and undertake designing business within the business scope of the selected Chinese designing enterprise(s).

Article 5

Construction designing contracts of cooperative designing project shall be signed by Chinese designing enterprises or jointly signed
by both Chinese and foreign designing enterprises of the cooperative design with construction entities. The contracts shall clearly
stipulate the rights and obligations of each party. Construction designing contracts shall be written in Chinese version.

Article 6

Construction entities shall conduct qualification examination for foreign enterprises in advance and only those that meet the qualifications
can participate in cooperative design.

Article 7

Whilst examining designing qualification of foreign enterprises, construction units have the right to require foreign enterprises
to offer the following valid certification materials that can meet the needs of construction projects. The certification materials
shall include Chinese version and the version in official language of the country where the foreign enterprises are located.

(1)

Business registration certifications approved and issued by governmental administrations of the countries where the enterprises are
located;

(2)

Creditability certifications and enterprise insurance certifications issued by financial institutions of the countries where the enterprises
are located;

(3)

Certifications for Construction design achievements of the enterprises issued by governmental administrations or relevant trade organizations
and notary institution of the countries where the enterprises are located;

(4)

Designing permission certifications issued by governmental administrations or relevant trade organizations of the countries where
the enterprises are located;

(5)

ISO9000 series quality standard certificate issued by international organization;

(6)

Resume, identification certificates, education certificates of the highest level and employment registration certifications of all
technological participants of the Chinese project;

(7)

Letter of intent of cooperative design with Chinese enterprises; and

(8)

Other relevant materials.

Article 8

Foreign enterprises shall sign cooperative design agreements to clearly stipulate the rights and obligations of each party in accordance
with Chinese relevant laws and regulations with the selected Chinese designing enterprises.

Cooperative design agreements shall cover:

(1)

Enterprise names, registration locations and the names, nationalities, identification registration number, address and contact methods
of the legal persons of each party of the cooperative project;

(2)

The names, location and scales of the cooperative project;

(3)

Cooperative scope, time limit and methods and requirements of designing content, depth, quality and progress;

(4)

The division of designing tasks, rights and obligation of each party;

(5)

Fee makeup, distribution and tax payment obligation;

(6)

Responsibilities of agreement violation and dispute settlements;

(7)

Conditions for agreement effective and agreement date and place; and

(8)

Other issues agreed by each party.

Article 9

Construction design contracts (duplicate), cooperative design agreement (duplicate) and materials listed in Article 7 of the Regulations
(copies) shall be submitted to construction administrations of provincial level for the archival purpose.

Article 10

Foreign design enterprises shall undertake construction project designs in accordance with compulsory norms of project construction
and working rules of construction design files issued by the Chinese Government.

Article 5 of Supervision Rules of Project Construction Compulsory Norms Implementation (Decree No 81 of Ministry of Construction)
shall prevail when there are no corresponding compulsory norms.

Article 11

In accordance with Construction Law of the People’s Republic of China, Urban Planning Law of the People’s Republic of China and other
relevant laws, cooperative designing files that must be submitted to relevant departments of Chinese Government shall meet the following
requirements:

(1)

The files shall have Chinese version;

(2)

The files shall conform to relevant rules of construction design;

(3)

The files shall adopt China’s official measurement units;

(4)

Enterprises names of each party and construction names shall be listed on the cover of initial design (basic design) files, and the
first page shall include enterprise names and legal persons, major technologists of each party and the person in charge of the project
and their seals;

(5)

The drawings of construction drawing design (detailed design) files shall include enterprise names of each party of the cooperative
design and signatures of project designers. Other affairs shall be performed in accordance with China’s relevant drawing rules of
construction design files; and

(6)

Initial design (basic design) files and construction drawing design (detailed design) can be validated only after being examined,
signed and sealed by China’s registered architects, registered engineers and persons who have obtained registered employment qualifications
and Chinese enterprises’ official seals shall be included.

When there is no project design registration employment system in some certain specialties, the documents shall be valid after examination
and signing-in these documents by technologists in charge of Chinese side and Chinese enterprises’ official seals shall be included.

Article 12

Foreign design enterprises that undertake construction project design within Chinese territory shall be paid in accordance with China’s
designing fee standards and shall pay tax according to relevant laws to Chinese Government.

When design files offered by foreign enterprises that need examinations and confirmation from Chinese design enterprises in light
with China’s norms and rules, relevant fees shall be paid through negotiation in accordance with international practices or real
workload.

Article 13

Designing organizations from Hong Kong, Macao Special Administrative Region and Taiwan region shall refer to the Provisions.

Article 14

Foreign enterprises in violation with the Provisions shall be imposed a punishment by Chinese Government in accordance with relevant
laws, regulations and rules. Their practices shall be publicized in relevant media and announce to governments and relevant industrial
organizations of the countries where the enterprises locate.

Article 15

Foreign enterprises are forbidden to participate in classified projects, disaster relief and rescue project and other projects that
Chinese Government have not promised to open to foreign countries.

Article 16

The Provisions shall be implemented 30 days as of the day of promulgation.



 
The Ministry of Construction
2004-05-10

 







THE NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE SALE AND PAYMENT OF FOREIGN EXCHANGE FOR NON-TRADE PURPOSES BY TRANSNATIONAL COMPANIES

State Administration of Foreign Exchange

The Notice of the State Administration of Foreign Exchange on the Sale and Payment of Foreign Exchange for Non-trade Purposes by Transnational
Companies

Hui Fa No.62 [2004]

June 29, 2004

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange of all provinces, autonomous
regions and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange of
Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all Chinese-funded designated foreign exchange banks:

In order to improve the environments of China for using foreign investment, perfect the administration on sale and payment of foreign
exchange for non-trade purposes of transnational companies and promote the sound development of foreign economy, the State Administration
of Foreign Exchange (SAFE) has made experiments for the reform of the administration on sale and payment of foreign exchange for
non-trade purposes by transnational companies in Shanghai, Beijing and Shenzhen in 2003. Upon the experience from the said experiments,
we hereby notice the issues relevant to the national administration on sale and payment of foreign exchange for non-trade purposes
of transnational corporations as follows:

1.

The term ￿￿transnational corporations￿￿ as mentioned in the present Notice refers to an a corporation that concurrently comprises
of affiliated companies both at home and abroad and whose global or regional (including China) investment management functions are
exercised by one of its affiliated companies within China, including Chinese-funded holding corporation (namely Chinese-funded transnational
corporations) and foreign-funded holding corporation (namely foreign-funded transnational corporations).

2.

The term ￿￿affiliated companies￿￿ of a transnational corporation as mentioned in the present Notice include affiliated companies both
at home and broad, of which the domestic affiliated companies involve:

(1)

a branch company established in China by a foreign-funded transnational corporation;

(2)

a foreign-funded enterprise in which a transnational corporation has a controlling share or an equity participation (the ratio of
equity participation shall not be lower than 25 percent, the same below);

(3)

a branch company established in China and relegated to be managed by the overseas head office or an affiliated company of a foreign-funded
transnational corporation;

(4)

a foreign-funded enterprise in which the overseas head office or an affiliated company of a foreign-funded transnational corporation
has a controlling share or an equity participation and whose management is relegated to it; and

(5)

a branch company established in China by a Chinese-funded transnational corporation or a company in which it has a controlling share
or an equity participation.

The overseas affiliated companies of a transnational corporation include:

(1)

the overseas head offices of foreign-funded transnational corporations;

(2)

the branch companies established outside China by the overseas head office of a foreign-funded transnational corporation and companies
in which it has a controlling share or an equity participation; and

(3)

the branch companies established outside of China by a Chinese-funded transnational corporation and companies in which it has a controlling
share or an equity participation.

3.

If a transnational corporation and its affiliated companies in China that meet the conditions specified in this Notice needs to handle
the procedures for sale and payment of foreign exchange for non-trade purposes as provided for in this Notice, they shall, on the
strength of the following materials, apply to the local branches or foreign control departments (hereinafter referred to as ￿￿foreign
exchange branch￿￿) of the State Administration of Foreign Exchange where they are located:

(1)

the application with the signature of its legal representative;

(2)

the approval document for the establishment of the company issued by the department of commerce, the business license and the original
of the foreign exchange registration certificate for the foreign-funded enterprise and their copies;

(3)

the list of its overseas affiliated companies; and

(4)

other materials as required by the foreign exchange branch.

Where they are found to meet the conditions upon examination by the local foreign exchange branches, the local foreign exchange branches
shall issue approval documents.

4.

The transnational corporation and its domestic affiliated companies shall, when completing the procedures for sale and payment of
foreign exchange for non-trade purposes as provided for in this Notice, file an application to a designated foreign exchange bank
on the strength of the approval document issued by the foreign exchange branch and the relevant certification materials provided
for in this Notice, and the designated foreign exchange bank shall, upon authentic verification, handle the procedures for sale and
payment of foreign exchange for non-trade purposes.

5.

The expenses advanced or apportioned between a Chinese-funded transnational corporation and its overseas affiliated companies shall
be paid abroad only by the domestic head office of the Chinese-funded transnational corporation, and any other domestic affiliated
company of the Chinese-funded transnational corporation shall not pay the advanced or apportioned expenses to any of its overseas
affiliated companies.

6.

The salaries, benefits and allowances of the employees from foreign countries, Hong Kong, Macao or Taiwan or of the employees of the
P.R.C with the right of permanent residence overseas, advanced by an overseas affiliated company of a transnational corporation,
which should be paid by the transnational corporation or its domestic affiliated company, may be debited directly to its foreign
exchange account or paid after purchasing the foreign exchange from a designated foreign exchange bank on the strength of such certification
materials as the notices of overseas payment, such identity certificates as the passports of foreign employees, employment certificates
(including the employment certificates issued by the competent departments for social security or the specialists￿￿ certificates
issued by the competent department for foreign affairs, the employment contracts and etc., the same below ), the bills of RMB incomes
and tax certificates.

7.

The overseas commercial insurance premiums of foreign employees advanced by an overseas affiliated company of a transnational corporation,
which should be paid by the transnational corporation or its domestic affiliated company, may be debited directly to its foreign
exchange account or paid after purchasing the foreign exchange from a designated foreign exchange bank on the strength of such certification
materials as the notices of overseas payment, the passports or other identity certifications of foreign employees , employment certification,
overseas insurance policy (or the notices of payment issued by an overseas insurance company specifying the names of foreign employees)
and tax certificates.

The overseas social insurance premiums of foreign employees advanced by an overseas affiliated company of a transnational corporation,
which should be paid by the transnational corporation or its domestic affiliated company, may be debited directly to its foreign
exchange account or paid after purchasing the foreign exchange from a designated foreign exchange bank on the strength of such certification
materials as the notices of overseas payment, the passports and other identity certifications of foreign employees, employment certificates,
and the overseas legal documents related to social insurances.

8.

Such expenses as the expenses for overseas business trips and overseas training fees of the employees of a transnational corporation
or its domestic affiliated companies advanced by one of its overseas affiliated company, which should be paid by the transnational
corporation or its domestic affiliated companies, may be debited directly to its foreign exchange account or after purchasing the
foreign exchange from a designated foreign exchange bank on the strength of the notices of overseas payment, employment certificates,
the relevant expenses documents and the materials proving that the employee have gone abroad for business trips or participated in
training.

9.

Such management expenses as the fees for research and development, procurement expenses and marketing expenses apportioned by a transnational
corporation or its domestic affiliated companies, which should be paid by the transnational corporation or its domestic affiliated
companies, may be debited directly to its foreign exchange account or after purchasing the foreign exchange from a designated foreign
exchange bank on the strength of such certification materials as the apportioning agreements, the notices of overseas payment and
tax certificates.

10.

Other expenses, which should be apportioned by a transnational corporation or any of its domestic affiliated companies or have been
advanced by any of its overseas affiliated companies, to be paid abroad by it or its domestic affiliated companies thereof may be
debited directly to its foreign exchange account or paid after purchasing the foreign exchange from a designated foreign exchange
bank on the strength of such materials as the notices of overseas payment, the original documents of the relevant expenses and tax
certificates.

11.

The transnational corporation or any of its domestic affiliated companies may download the relevant contracts or agreements, the notices
of payment and etc., fix its seals on the same and go through the procedures for the sale and payment of foreign exchange for non-trade
purposes on the strength of the same.

12.

In case ￿￿such identity certificates as the passports of foreign employees ￿￿ or ￿￿the employment certificates￿￿ provided for in Articles
6 and 7 or ￿￿the employment certificates￿￿ provided for in Article 8 hereof fail to be provided under special circumstances, they
may be replaced by the employee list issued and sealed by the transnational corporation or any of its domestic affiliated companies
that applies for the purchase and payment of foreign exchange, which shall contain such elements as the names, nationalities, salaries
or benefits treatment of foreign employees. Meanwhile, the transnational corporation or its domestic affiliated companies thereof
shall also guarantee the authenticity of the said list that it provides and the legality of foreign employees enumerated in the said
list, and state that it will bear the relevant legal liabilities.

13.

All foreign exchange branches shall submit the name list of the approved transnational corporations and the domestic affiliated companies
thereof to the SAFE in time for archival purpose.

14.

All transnational corporations and their domestic affiliated companies, which are found to be governed by this Circular upon examination
and approval shall complete the procedures for the purchase and payment of foreign exchange for non-trade purposes, shall be liable
for the authenticity of its affiliation with any of its overseas affiliated companies. If the affiliation terminates or changes,
they shall report it timely to the foreign exchange branch of the place where it is located, and the foreign exchange branch shall
report it to the SAFE.

15.

In case a transnational corporation or any of its domestic affiliated companies violates any provision of this Notice and commits
any act of falsifying an affiliation or making overdue reports or concealing the truth in reporting on the termination or change
of an affiliation, the foreign exchange branch shall have the power to disqualify the company that is governed by this Circular from
completing the procedure for the purchase and payment of foreign exchange for non-trade purposes, and impose corresponding punishment
upon it with reference to the provisions relating to foreign exchange control.

16.

Solely foreign-funded enterprise (in which the capital contribution made by foreign investors shall not be less than 25 percent),
which abides by the foreign exchange control provisions, commits no major acts in violation of foreign exchange control provisions
during the recent three years, has a sound financial standing, has a comparatively large volume of the receipt and payment in its
current account and exercises major influence on the locality, may, subject to the approval by the foreign exchange branch of the
place where it is located, also go through the formalities for sale and payment of foreign exchange for non-trade purposes with reference
to the provisions of this Notice.

All foreign exchange branches shall submit the name list of the said approved foreign-funded enterprises to the State Administration
of Foreign Exchange for archival purpose.

17.

Such items as definitely provided for in this Notice shall no longer be subject to the corresponding provisions of the Notice of the
State Administration of Foreign Exchange Regarding the Sale and Payment of Foreign Exchange in Non-trade Account That are not Definitely
Provided for in the Existing Regulations.

18.

The power to interpret this Notice shall be vested in the SAFE.

19.

This Notice shall come into force as of August 1st, 2004. The Notice of the State Administration of Foreign Exchange Regarding the
Administration on Sale and Payment of Foreign Exchange for Non-trade Purposes of Transnational corporations (for a Trial) (Hui Fa
No.87 [2003]) shall be repealed simultaneously.

After receiving this Notice, each branch shall, as soon as possible, transmit it to the sub-branches and foreign-funded banks within
its jurisdiction; each Chinese-funded designated foreign exchange bank shall, as soon as possible, transmit it to all branches. If
any question arises in implementing this Notice, please feed it back to the State Administration of Foreign Exchange in time.



 
State Administration of Foreign Exchange
2004-06-29

 







CIRCULAR OF THE MINISTRY OF COMMERCE ON THE IMPLEMENTATION OF THE NATIONAL STANDARD OF RETAIL FORMAT CLASSIFICATION

Ministry of Commerce

Circular of the Ministry of Commerce on the Implementation of the National Standard of Retail Format Classification

Shang Jian Fa [2004] No.390

August 9, 2004

The competent departments of commerce of all the provinces, autonomous regions, municipalities directly under the Central Government
and cities specifically designated in the State plan:

The retail format shall refer to the different business forms that the retail enterprises take, after combining corresponding factors
for satisfying different consuming requirement. In order to bring into play the promoting action of new-style retail format over
the commodity circulation, and guide local authorities to do well the programming work of commercial network, the MOFCOM has organized
the relevant entities to revise the former National Standard of Retail format Category (GB/T18106-2000) in accordance with the development
tendency of China’s retail industry in recent years and using for reference the classification mode of retail format in developed
countries. The State Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration of China
have jointly formulated the new national standard of Retail format Classification (GB/T18106-2004) (Approval Letter on Standard of
SAC [2004] No. 102), and the new standard shall be implemented as of October 1, 2004. With a view of better carrying out the new
standard, relevant issues are hereby notified as follows:

1.

The publicity work of the new classification standard of retail format shall be done well

The classification standard of retail format is the premise to scientifically regulate and lead the development of retail industry,
and it is the important technical basis to form the commodity market pattern with reasonable structure, perfect function, clear layer
and complete system. The new standard, according to the format characteristics of the retail store, and in accordance with its business
mode, commodity structure, service function, and site selection, commercial circle, size, store’s facility, target custom, store
or non-store selling and other factors, classifies the retail industry into 17 formats and stipulates corresponding condition, which
includes traditional grocery store, convenience store, discount store, supermarket, hypermarket, warehouse club, department store,
specialty store, exclusive shop, home center, shopping center, factory outlets center, television shopping, mail order, store on
network, vending machine, tele-shopping. This kind of classification mode accords with the development tendency of domestic and overseas
retail industry. The competent departments of commerce in all places shall do well the publicity work of new standard so that, through
special subject training, news publicity and other means, the governmental departments, enterprises and consumers can widely understand
the formats and the classification condition of the new standard as well as the function of each format to lay a foundation for carrying
out and implementing the new standard.

2.

The new standard shall be treated as important basis of programming work of commercial network

Retail format is the base to form rural commercial network. The new standard definitely defines the condition and function of the
retail format, which shall be followed by all the local commercial departments to program the layout and format of the rural commercial
network to make the network construction comply with the transformation tendency of the economic and social development and residential
consumption and to make all the formats complement each other and develop harmoniously. The cities that have finished the program
of rural commercial network already shall have the program revised and improved according to the new format standard. In the program,
importance shall be attached to integrating the development of the new-style format and the upgrade and reconstruction of the traditional
commerce and harmonizing between the key format and the special economy. Around the key point of format structure adjustment, development
of the convenience store, discount store and small & medium supermarket that are convenient to the residential life shall be encouraged.
Importance shall be attached to developing such new-style format as warehouse, specialty store and exclusive shop.

3.

The new standard shall be used to guide and regulate the direction of commercial investment

The competent departments of commerce in all places shall, on the basis of scientific analysis and full evaluation, use the new standard
to guide the investment and operation in commercial fields. Through implementation of the new standard, the enterprises shall be
made to understand thoroughly the establishment condition of each kind of retail format and the connotation thereof and to understand
fully the operation discipline of each format, so as to promote the enterprises’ rational investment, reduce unreasoning and repeated
investment and avoid resource wasting; in light of the characteristics of different formats, differential operation shall be carried
out to prevent out-of-order competition. Those who are eligible may, through dynamic tracing of the development situation of retail
format, analyze and predict the development tendency of each retail format, formulate the catalogue of encouraging or restraining
the format development and guide the investment of commercial enterprises so as to macro-control the layout of commercial network
and the balance of the industrial format and to promote co-prosperity of multi-formats.

Annexed table: Retail format Classification and Basic Characteristics (Omitted)



 
Ministry of Commerce
2004-08-09

 







CIRCULAR OF THE MINISTRY OF COMMERCE ON RELEVANT ISSUES CONCERNING THE ARCHIVAL-FILING AND REGISTRATION OF RIGHT TO FOREIGN TRADE OF FOREIGN-FUNDED ENTERPRISES

the Ministry of Commerce

Circular of the Ministry of Commerce on Relevant Issues concerning the Archival-filing and Registration of Right to Foreign Trade
of Foreign-funded Enterprises

Shang Zi Han [2004] No. 46

The administrative departments of commerce of all provinces, autonomous regions, municipalities directly under the Central Government
and cities specifically designated in the state plan:

The Foreign Trade Law of the People’s Republic of China (Order No. 15 [2004] of the President of the People’s Republic of China) and
the Measures for the Archival-filing and Registration of Foreign Trade Operators (No. 14 [2004] of the Ministry of Commerce, hereinafter
referred to the “Measures for the Archival-filing and Registration”) came into force as of July 1, 2004. According to Article 14
of the Measures for the Archival-filing and Registration, this Circular is hereby notified with regard to the matters concerning
the procedures for archival-filing and registration to be gone through by foreign-funded enterprises.

1.

Any foreign-funded enterprise established according to law before July 1, 2004 that hasn’t applied for changing its scope of business
or adding of any import/export business or any foreign-funded enterprise established according to law after July 1, 2004 that undertakes
import/export of self-use or self-produced goods and technology of this enterprise need not go through the procedures for archival-filing
and registration of foreign trade operators.

2.

In case a lawfully established foreign-funded enterprise applies for adding any other import/export business to its approved scope
of business, it shall, in accordance with the Measures for the Archival-filing and Registration, go through the procedures for business
addition of an enterprise’s business license and, and shall, on the presentation of the former approval certificate for the establishment
of foreign-funded enterprise, business license with the business addition, and any other documents and procedures as required under
the Measures for the Archival-filing and Registration, go through the procedures for archival-filing and registration (note: no procedures
for change is required with regard to the approval certificate for its establishment) . The registration authorities shall affix
a stamp indicating “business of distribution of import goods excluded” on the registration form.

3.

For any foreign-funded enterprise to be established, if its scope of business as applied for by its investor includes a right to import/export
of self-use or self-produced goods and technology that are not of this enterprise, the examining and approving authorities shall
clearly indicate “business of import/export (business of distribution excluded)” in its scope of business. After its establishment,
the enterprise shall go through the procedures for archival-filing and registration in accordance with the Measures for the Archival-filing
and Registration. The registration authorities shall affix a stamp indicating “business of distribution of import goods excluded”
on the registration form.

4.

In accordance with the Measures for the Administration of Foreign Investment in Commercial Sector (Decree No. 8 [2004] of the Ministry
of Commerce), Interim Measures for the Establishment of Chinese-foreign Equity Joint Foreign Trade Companies (Decree No. 1 [2003]
of the Ministry of Foreign Trade and Economic Cooperation) and Circular on Relevant Issues concerning the Development of Establishment
of Pilot Logistics Foreign-funded Enterprises (Letter No. 615 [2002] of the Ministry of Foreign Trade and Economic Cooperation),
where an foreign-funded enterprise approved to undertake the import/export and distribution business according to law goes through
the procedures for archival-filing and registration according to the relevant provisions of the Measures for the Archival-filing
and Registration, the archival-filing and registration authorities shall not affix the stamp indicating “business of distribution
of import goods excluded”.

The Ministry of Commerce

August 17, 2004



 
the Ministry of Commerce
2004-08-17

 







LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROTECTION OF WILDLIFE (2004 REVISION)

Standing Committee of the National People’s Congress

Law of the People’s Republic of China on the Protection of Wildlife (2004 Revision)

(Adopted at the Fourth Meeting of the Standing Committee of the Seventh National People’s Congress and promulgated by Order No. 9
of the President of the People’s Republic of China on November 8th, 1988, and effective as of March 1st, 1989; Revised at the 11th
session of the standing committee of the 10th National People’s Congress of the People’s Republic of China on August 28th, 2004)

ContentsChapter I General Provisions

Chapter II Protection of Wildlife

Chapter III Administration of Wildlife

Chapter IV Legal Responsibility

Chapter V Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated with a view to protecting and saving the species of wildlife which are rare or near extinction, protecting,
developing and rationally utilizing wildlife resources and maintaining ecological balances.

Article 2

All activities within the territory of the People’s Republic of China concerning the protection, domestication, breeding, development
and utilization of species of wildlife must be conducted in conformity with this Law.

The wildlife protected under this Law refers to the species of terrestrial and aquatic wildlife which are rare or near extinction
and the species of terrestrial wildlife which are beneficial or of important economic or scientific value.

The wildlife as referred to in the provisions of this Law means the wildlife which shall enjoy protection as prescribed in the preceding
paragraph.

As regards the protection of the species of aquatic wildlife other than those which are rare or near extinction, the provisions of
the Fisheries Law shall apply.

Article 3

Wildlife resources shall be owned by the state.

The state protects the lawful rights and interests of entities and individuals engaging in the development or utilization of wildlife
resources according to the law.

Article 4

The state shall implement a policy of strengthening the protection of wildlife resources, actively domesticating and breeding the
species of wildlife, and rationally developing and utilizing wildlife resources, and encourage scientific research on wildlife. Entities
and individuals that have made outstanding achievements in the protection of wildlife resources, in scientific research on wildlife,
or in the domestication and breeding of wildlife shall be awarded by the state.

Article 5

Citizens of the People’s Republic of China shall have the duty to protect wildlife resources and the right to inform the authorities
of or file charges against acts of seizure or destruction of wildlife resources.

Article 6

The governments at various levels shall strengthen the administration of wildlife resources and work out plans and measures for the
protection, development and rational utilization of wildlife resources.

Article 7

The departments of forestry and fisheries administration under the State Council shall be respectively responsible for the nationwide
administration of terrestrial and aquatic wildlife.

The departments of forestry administration under the governments of provinces, autonomous regions and municipalities directly under
the Central Government shall be responsible for the administration of terrestrial wildlife in their respective areas. The departments
in charge of the administration of terrestrial wildlife under the governments of autonomous prefectures, counties and municipalities
shall be designated by the governments of provinces, autonomous regions or municipalities directly under the Central Government.

The departments of fishery administration under the local governments at or above the county level shall be responsible for the administration
of aquatic wildlife in their respective areas.

Chapter II Protection of Wildlife

Article 8

The state shall protect wildlife and the environment for its survival, and shall prohibit the illegal hunting, catching or destruction
of wildlife by any entities or individual.

Article 9

The state shall give special protection to the species of wildlife which are rare or near extinction. The wildlife under special state
protection shall be of two classes: wildlife under first class protection and wildlife under second class protection. Lists or revised
lists of wildlife under special state protection shall be worked out by the department of wildlife administration under the State
Council and promulgated after being submitted to and approved by the State Council.

The wildlife under special local protection, being different from the wildlife under special state protection, refers to the wildlife
specially protected by provinces, autonomous regions or municipalities directly under the Central Government. Lists of wildlife under
special local protection shall be worked out and promulgated by the governments of provinces, autonomous regions or municipalities
directly under the Central Government and shall be submitted to the State Council for the record.

Lists or revised lists of terrestrial wildlife under state protection, which are beneficial or of important economic or scientific
value, shall be worked out and promulgated by the department of wildlife administration under the State Council.

Article 10

The department of wildlife administration under the State Council and governments of provinces, autonomous regions and municipalities
directly under the Central Government shall, in the main districts and water areas where wildlife under special state or local protection
lives and breeds, designate nature reserves and strengthen the protection and administration of wildlife under special state or local
protection and the environment for its survival.

The designation and administration of nature reserves shall be conducted in conformity with the pertinent provisions of the State
Council.

Article 11

Departments of wildlife administration at various levels shall keep watch on and monitor the effect of the environment on wildlife.
If the environmental effect causes harm to wildlife, the departments of wildlife administration shall conduct investigation and deal
with the matter jointly with the departments concerned.

Article 12

In case a construction project produces adverse effects on the environment for the survival of wildlife under special state or local
protection, the construction entity shall submit a report on the environmental effect. The department of environmental protection
shall, in examining and approving the report, seek the opinion of the department of wildlife administration at the same level.

Article 13

In case natural disasters present threats to wildlife under special state or local protection, the local governments shall take timely
measures to rescue them.

Article 14

In case the protection of wildlife under special state or local protection causes losses to crops or other losses, the local governments
shall make compensation for them. Measures for such compensation shall be formulated by the governments of provinces, autonomous
regions and municipalities directly under the Central Government.

Chapter III Administration of Wildlife

Article 15

The departments of wildlife administration shall regularly conduct surveys of wildlife resources and keep records of them.

Article 16

The hunting, catching or killing of wildlife under special state protection shall be banned. Where the catching or fishing for wildlife
under first class state protection is necessary for scientific research, domestication and breeding, exhibition or other special
purposes, the entity concerned must apply to the department of wildlife administration under the State Council for a special hunting
and catching license; where the catching or hunting of wildlife under second class state protection is intended, the entity concerned
must apply to the pertinent department of wildlife administration under the government of a province, an autonomous region or a municipality
directly under the Central Government for a special hunting and catching license.

Article 17

The state shall encourage the domestication and breeding of wildlife.

Anyone who desires to domesticate and breed wildlife under special state protection shall obtain a license. Administrative measures
for such licenses shall be formulated by the department of wildlife administration under the State Council.

Article 18

Anyone who desires to hunt or catch wildlife that is not under special state protection must obtain a hunting license and observe
the hunting quota assigned.

Anyone who intends to hunt with a gun must obtain a gun license from the public security organ of the county or municipality concerned.

Article 19

Anyone engaging in the hunting or catching of wildlife shall comply with the prescriptions in his special hunting and catching license
or his hunting license concerning the species, quantity, area and time limit.

Article 20

In nature reserves and areas closed to hunting, and during seasons closed to hunting, the hunting and catching of wildlife and other
activities which are harmful to the living and breeding of wildlife shall be banned.

The areas and seasons closed to hunting as well as the prohibited hunting gear and methods shall be specified by governments at or
above the county level or by the departments of wildlife administration under them.

Article 21

The hunting or catching of wildlife by the use of military weapons, poison or explosives shall be banned.

Measures for the control of the production, sale and use of hunting rifles and bullets shall be formulated by the department of forestry
administration under the State Council jointly with the public security department, and shall come into force after being submitted
to and approved by the State Council.

Article 22

The sale and purchase of wildlife under special state protection or the products thereof shall be banned. Where the sale, purchase
or utilization of wildlife under first class state protection or the products thereof is necessary for scientific research, domestication
and breeding, exhibition or other special purposes, the entity concerned must apply for approval by the department of wildlife administration
under the State Council or by a entity authorized by the same department.

Where the sale, purchase or utilization of wildlife under second class state protection or the products thereof is necessary, the
entity concerned must apply for approval by the department of wildlife administration under the government of the relevant province,
autonomous region or municipality directly under the Central Government or by a entity authorized by the same department.

Entities and individuals that domesticate and breed wildlife under special state protection may, by presenting their domestication
and breeding licenses, sell wildlife under special state protection or the products thereof, in conformity with the pertinent regulations,
to purchasing entities designated by the government.

The administrative authority for industry and commerce shall conduct supervision and control over wildlife or the products thereof
that are placed on the market.

Article 23

The transportation or carrying of wildlife under special state protection or the products thereof out of any county must be approved
by the department of wildlife administration under the government of the relevant province, autonomous region or municipality directly
under the Central Government, or by an entity authorized by the same department.

Article 24

The export of wildlife under special state protection or the products thereof, and the import or export of wildlife or the products
thereof, whose import or export is limited by international conventions to which China is a party, must be approved by the department
of wildlife administration under the State Council or by the State Council, and an import or export permit must be obtained from
the state administrative organ in charge of the import and export of the species which are near extinction. The Customs shall clear
the imports or exports after examining the import or export permit.

The export of the species of wildlife involving scientific and technological secrets shall be conducted in conformity with pertinent
provisions of the State Council.

Article 25

The forgery, sale or resale or transfer of special hunting and catching licenses, hunting licenses, domestication and breeding licenses,
and import and export permits shall be banned.

Article 26

In case any foreigner intends, in the territory of China, to exercise surveys of or to film or videotape wildlife under special state
protection in the field, he must apply for approval by the department of wildlife administration under the State Council or by a
entity authorized by the same department.

The establishment of a hunting area open for foreigners shall be reported to the administrative department of wild animals of the
State Council for archival purposes.

Article 27

Anyone who is engaged in the utilization of wildlife or the products thereof shall pay a fee for the protection and administration
of wildlife resources. The schedule of the fee and the procedure for collecting it shall be formulated by the department of wildlife
administration under the State Council jointly with the financial and pricing authorities and shall come into force after being submitted
to and approved by the State Council.

Article 28

Anyone who has caused losses to crops or other losses while hunting or catching wildlife shall be responsible for compensation.

Article 29

The local governments concerned shall take measures to prevent and control the harm caused by wildlife so as to guarantee the safety
of human beings and livestock and ensure agricultural and forestry production.

Article 30

The administrative measures for wildlife under special local protection and for other wildlife that is not under special state protection
shall be formulated by the standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly
under the Central Government.

Chapter IV Legal Responsibility

Article 31

Anyone who illegally catches or kills wildlife under special state protection shall be prosecuted for criminal responsibility in conformity
with the supplementary provisions on punishing the crimes of catching or killing the species of wildlife under special state protection
which are rare or near extinction.

Article 32

Where anyone, in violation of the provisions of this Law, hunts or catches wildlife in an area or during a season closed to hunting
or uses prohibited hunting gear or methods for the purpose, his catch, hunting gear and unlawful income shall be confiscated and
he shall be fined by the department of wildlife administration; in case the circumstances are serious enough to commit a crime, he
shall be prosecuted for criminal responsibility in conformity with the provisions of Article 130 of the Criminal Law.

Article 33

Where anyone, in violation of the provisions of this Law, hunts or catches wildlife without a hunting license or in violation of the
prescriptions of the hunting license, his catch and unlawful income shall be confiscated and he shall be fined by the department
of wildlife administration and, in addition, his hunting gear may be confiscated and his hunting license be revoked.

Where anyone, in violation of the provisions of this Law, hunts wildlife with a hunting rifle without a license for the rifle, he
shall be punished by a public security organ by applying mutatis mutandis the provisions of the Regulations on Administrative Penalties
for Public Security.

Article 34

Where anyone, in violation of the provisions of this Law, destroys in nature reserves or areas closed to hunting the main places where
wildlife under special state or local protection lives and breeds, he shall be ordered by the department of wildlife administration
to terminate his destructive acts and restore these places to their original state within a prescribed time limit, and shall be fined.

Article 35

Where anyone, in violation of the provisions of this Law, sells, purchases, transports or carries wildlife under special state or
local protection or the products thereof, such wildlife and products and his unlawful income shall be confiscated by the administrative
authority for industry and commerce and he may concurrently be fined.

Where anyone, in violation of the provisions of this Law, sells or purchases wildlife under special state protection or the products
thereof, and if the circumstances are serious enough to commit a crime of speculation or smuggling, he shall be prosecuted for criminal
responsibility in accordance with the relevant provisions of the Criminal Law.

The wildlife or the products thereof thus confiscated shall, in conformity with the relevant provisions, be disposed of by the relevant
department of wildlife administration or by an entity authorized by the same department.

Article 36

Where anyone illegally imports or exports wildlife or the products thereof, he shall be punished by the Customs according to the Customs
Law; Where the circumstances are serious enough to constitute a crime, he shall be prosecuted for criminal responsibility in accordance
with the provisions of the Criminal Law on the crimes of smuggling.

Article 37

Where anyone forges, sells or resells or transfers a special hunting and catching license, a hunting license, a domestication and
breeding license, or an import or export permit, his license or permit shall be revoked and his unlawful income shall be confiscated
and he may concurrently be fined by the relevant department of wildlife administration or the administrative authority for industry
and commerce.

Where anyone who forges or sells or resells a special hunting and catching license or an import or export permit, and if the circumstances
are serious enough to commit a crime, he shall be prosecuted for criminal responsibility by applying mutatis mutandis the provisions
of Article 167 of the Criminal Law.

Article 38

Any staff member of a department of wildlife administration who neglects his duty, abuses his power or engages in malpractices for
personal gains shall be subject to administrative sanctions by the department to which he belongs or by the competent authority at
a higher level; if the circumstances are serious enough to commit a crime, he shall be prosecuted for criminal responsibility according
to the law.

Article 39

Any party who is dissatisfied with the decision on an administrative sanction may, within 15 days as of receiving the notification
on the sanction, file an application for reconsideration to the authority at the level next higher to the one that made the decision
on the sanction; if he is dissatisfied with the decision on reconsideration made by the authority at the next higher level, he may,
within 15 days as of receiving the notification on the decision on reconsideration, institute legal proceedings in the court. The
party may also directly institute legal proceedings in the court within 15 days of receiving the notification on the sanction. Where
the party neither files an application for reconsideration, nor institutes legal proceedings in the court, nor complies with the
decision on the sanction, the authority that made the decision on the sanction shall request the court to carry out a compulsory
execution of the decision.

Where the party is dissatisfied with a customs penalty or a penalty for violation of public security, the matter shall be conducted
in conformity with the provisions of the Customs Law or the Regulations on Administrative Penalties for Public Security.

Chapter V Supplementary Provisions

Article 40

Where any international treaty with respect to the protection of wildlife, concluded or acceded to by the People’s Republic of China,
contains provisions differing from those of this Law, the provisions of the international treaty shall apply, unless the provisions
are ones on which the People’s Republic of China has made reservations.

Article 41

The department of wildlife administration under the State Council shall, in conformity with this Law, formulate regulations for its
implementation which shall come into effect after being submitted to and approved by the State Council.

The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may, in conformity with this Law, formulate measures for its implementation.

Article 42

This Law shall be implemented as of March 1st, 1989.



 
Standing Committee of the National People’s Congress
2004-08-28

 







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...