1987

INTERIM PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE SUPERVISION AND CONTROL OVER BONDED GOODS AND BONDED WAREHOUSES

PROVISIONAL RULES OF THE CUSTOMS GOVERNING THE SUPERVISION AND CONTROL OF IMPORT AND EXPORT GOODS AND MATERIALS NEEDED FOR THE COOPERATIVE EXPLORATION AND EXPLOITATION

Provisional Rules of the Customs of the People’s Republic of China Governing the Supervision and Control of Import and Export Goods
and Materials Needed For the Cooperative Exploration and Exploitation

     (Effective Date:1981.10.01–Ineffective Date:)

   Article 1. These Rules have been made in accordance with the Provisional Customs Law of the People’s Republic of China and the spirit of Document
No. 211 (1980) promulgated by the State Council, for the purpose of facilitating the importation and exportation of the goods and
materials needed for the cooperative exploration and exploitation of the offshore petroleum of our country.

   Article 2. The Customs shall, in accordance with the documents and contracts (including sub-contracts–the same hereinafter) approved by the
State Council or its authorised organs, exercise supervision and control over all the goods and materials imported and exported by
the oil companies for the exploration and exploitation of the offshore petroleum of our country.

After the determination of an engineering project, the oil company concerned should immediately submit the above-mentioned documents
and contracts to the local Customs and the Customs of entry and exit. It should also, before entry, submit for Customs inspection,
the manifest of the goods and materials and equipment (including the supplementary manifest) corresponding with the import plan verified
and approved by the competent organ. These goods and materials, if verified by the Customs to be for productive purpose within the
scope of the engineering project, may be imported upon the approved manifest, without applying for a separate import licence (but
the import of machinery equipment should still be reported, beforehand, to the specific authorizing department for approval). Import
licences issued by foreign trade control organs should be submitted for verification with regard to goods and materials outside the
scope of the engineering project, goods and materials not for direct productive purpose and imported by the oil company in accordance
with a temporary plan, and goods and materials covered by import licence according to relevant State provisions.

   Article 3. At the time of importation and exportation of the goods and materials, the oil company or its agent should fill out the Declaration
Form of Imports (Exports) in duplicate, and submit it together with the invoices, packing list and other relevant papers and documents
to the Customs for the completion of Customs formalities of entry and exit.

In the case of the goods and materials imported or exported at the places other than the place where the company is located, the declarant
should fill out the Declaration Form of Imports (Exports) in triplicate, and declare to the Customs of entry in the case of importation,
and to the local Customs in the case of exit, for the completion of the transhipment formalities. The declarant should entrust the
forwarding agent with delivering the Customs Cover, along with the cargo in question, to the Customs of destination or exit. The
forwarding agent must keep intact the Customs seals affixed by the Customs on the cargo or on the means of conveyance.

   Article 4. At the time of Customs examination of the import and export cargoes, the cargo-owner or his agent must be present and unpacking the
goods himself. In case the cargo needs to be examined at places other than the places under Customs supervision and control, permission
should be sought from the Customs beforehand, and special fees paid in accordance with the Customs regulations.

   Article 5. Cargoes imported (including those imported by means of lease) within the duty-exemption limits approved by State organs shall be
released duty-free by the Customs; the portion of import cargo in excess of the above-mentioned limits shall be released, only after
the Customs duties and industrial and commercial (consolidated) tax have been levied by the Customs in accordance with the regulations.

Goods and materials imported temporarily may be accorded duty-free treatment, provided that the oil company concerned completes the
declaration formalities with the local Customs and guarantees to re-ship them abroad within six months. In this case, the oil company
should pay a cash deposit not less than the total amount of the payable duties and undertake to re-ship the goods and materials abroad
within the stipulated time-limit. The deposit shall be refunded on re-shipment abroad of the goods and materials. If, owing to special
circumstances, the goods and materials imported temporarily cannot be re-shipped abroad within the prescribed time-limit, the oil
company should apply to the Customs for extension. If the re-shipment is still not undertaken within the extended time-limit, the
oil company should, in accordance with the present Rules, go through Customs formalities for entry, and pay Customs duties and the
industrial and commercial (consolidated) tax.

   Article 6. Import goods and materials may be delivered only after completion of the Customs formalities, or with the special permission of the
Customs; the export goods and materials may be loaded and shipped abroad only after completion of the Customs formalities and under
the Customs supervision and control.

   Article 7. The commission warehouses set up by foreign businessmen at the oil bases shall be dealt with by the Customs in accordance with the
Provisional Rules Governing the Supervision and Control over Bonded Cargo and Bonded Warehouses. But if the goods and materials for
sale on commission and the spare parts and components for use in maintenance are to be turned into importation, the levying of, or
the exemption from, the duty on them shall be dealt with in accordance with Article 5 of the present Provisional Rules.

   Article 8. Import goods and materials which are not declared to the Customs or on which the Customs duty is not paid within three months from
the date of the declared entry of the means of conveyance, shall be dealt with by the Customs in accordance with the relevant provisions.

   Article 9. For foreign engineers and technicians who come to China on exploration and exploitation business, the competent departments should
submit regularly to the Customs the lists of their names in quadruplicate, which will be sent respectively to the Customs at the
port of entry, the local Customs, and the Guangzhou and Kowloon Customs. They shall be treated by the Customs according to the regulations
concerning the control of import and export baggage and articles carried, and articles imported and exported by post, by foreign
engineers and technicians who are invited to come to work in China.

Baggage and articles carried by our engineers and technicians on entering and leaving the Chinese territories on business, shall be
dealt with in accordance with the State Council-approved Regulations Concerning the Entry and Exit of the Baggage and Articles Carried
by Our Workers Who Go to Work Abroad; and the provisions in the Supplementary Circular to Document No. 517 (79) promulgated jointly
by the Ministry of Foreign Trade, the Ministry of Foreign Affairs, the Ministry of Economic Relations with Foreign Countries and
the Ministry of Finance.

   Article 10. The following cases shall be dealt with by the Customs each on its merits, in accordance with the relevant provisions of the Provisional
Customs Law of the People’s Republic of China:

(1) False declaration;

(2) The units concerned taking delivery of or loading the import and export goods and materials not yet released by the Customs;

(3) Smuggling through the means of import and export goods and materials;

(4) Sale, without permission, of the goods and materials which have been released duty-free by the Customs;

(5) The goods and materials imported temporarily on Customs verification and approval, being not re-shipped abroad within the prescribed
time-limit, and not redeclared for the completion of the Customs formalities in accordance with the relevant regulations;

(6) Unauthorizedly breaking Customs Cover, or Customs seals, or losing Customs Cover;

(7) Other cases in violation of the Customs regulations.

   Article 11. Whenever deemed necessary for the work, the Customs may set up working offices or station officers at the offshore exploration and
exploitation bases. The oil companies and sub-companies should provide free office and living accommodation, and extend living facilities.

   Article 12. The present Provisional Rules shall come into force on October 1, 1981.

    






PROVISIONAL REGULATIONS FOR FOREIGN EXCHANGE CONTROL OF THE PEOPLE’S REPUBLIC OF CHINA

INTERIM PROVISIONS FOR STRENGTHENING THE ADMINISTRATION OF PUBLICATION IN CO-OPERATION WITH FOREIGN COUNTRIES

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-10-12 Effective Date  1981-10-12  


Interim Provisions for Strengthening the Administration of Publication in Co-operation With Foreign Countries



(Approved and promulgated by the State Council on October 12, 1981)

    These Provisions are formulated for the purpose of strengthening the
leadership over, and administration of, the work of publication in
co-operation with foreign countries.

    1. Publication in co-operation with foreign countries shall conform to
China’s foreign policy and principle and facilitate the strengthening of
China’s publicity in and cultural exchanges with, foreign countries, shall do
no harm to China’s sovereignty and national interests and shall be strictly
governed by the State provisions concerning the maintenance of secrets.

    2. In co-operation with foreign countries in publication, it is imperative
to study the situation of the international book market, safeguard the rights
and interests of China’s authors and publishers and, on the basis of equality
and mutual benefits, achieve reasonable economic returns.

    3. A publishing house shall determine its projects of co-operation with
foreign countries in the light of its own conditions and characteristics and
in conformity with its own publishing principle and scope of publication.

    4. Projects of publication in co-operation with foreign countries shall be
determined through full consultation between the two parties thereto. The
editing principle, the contents of the manuscript and the finalized version
thereof with respect to a book or journal to be jointly published shall all be
subject to the consent of the Chinese party. Without the consent of the
Chinese party, no part of the contents of a manuscript that has been examined
and finalized by the Chinese party may be supplemented, deleted or otherwise
altered by the other party. Pictures selected for use in picture-albums or
other books or journals to be jointly published for the purpose of giving
information about China shall in general be provided by the Chinese party and
it is unadvisable to have them taken by the other party or jointly taken by
both parties.

    5. Manuscripts edited by a foreign country to be jointly published for use
by Chinese readers shall be those of which China is in urgent need and shall,
when necessary, be duly supplemented, deleted or re-edited in accordance with
the actual situation in China. Financially, every possible means shall be
tried to avoid making payment in foreign exchange for the economic returns
that the other party shall be enpost_titled to.

    6. Publication in co-operation with foreign countries shall only be
undertaken by the publishing houses that have been officially authorized by
the State. No non-publishing units or individuals may undertake publication in
co-operation with foreign countries. Without the permission of the original
publishing houses, no publishing houses may co-operate with foreign parties in
publishing books or journals published by other publishing houses. A
publishing house that intends to co-operate with a foreign party in publishing
a manuscript shall solicit in advance the permission of the author or the
original editing unit.

    7. A publishing house may negotiate co-operative publication business
directly with a foreign party or may entrust a specialized company that has
been authorized by the State to handle co-operative publication business with
foreign countries or entrust a reliable foreign agency with the negotiation.

    8. Foreign units that are to co-operate with China in publication business
shall be those which are friendly to China and have reliable credit and
financial resources. It is imperative not to sign contracts with foreign
businessmen whose standing is not clear.

    9. In order to specify the rights and obligations of both parties, a
contract prescribing a time limit shall be signed. As to the ownership of the
copyright, the transfer by one party to the other of the right of publication
and distribution and of other rights or the permission by one party to the
other of the use of these rights, as well as the amount of remuneration, the
mode and time of payment thereof shall be stipulated item by item in the
contract. With respect to manuscripts and pictures that are provided by the
Chinese party, without the consent of the Chinese party, the other party may
not transfer the copyright, or extend the use thereof, or extend the areas
where they shall be distributed.

    10. In determining projects of co-operative publication with foreign
countries, the following formalities of examination and approval shall,
depending on the different circumstances, be carried out respectively:

    With respect to publications that have been published domestically,
publishing houses at the central level may make their own decisions and report
the projects to the higher competent authority for the record, whereas
publishing houses in the localities shall submit their project proposals to
the publication bureaus of the provinces, municipalities directly under the
Central Government or autonomous regions for examination and approval.

    With respect to publications that have not come off the press
domestically, publishing houses at the central level shall submit their
project proposals to the higher competent authority for examination and
approval, and publishing houses in the localities shall submit their project
proposals to the people’s governments of the provinces, municipalities
directly under the Central Government or autonomous regions for examination
and approval. With respect to a project of co-operative publication of
full-length book series whose contents have a nation-wide bearing, consent of
the State Bureau of Publication shall have to be solicited in advance.

    With respect to manuscripts whose contents involve the major principles of
the Party and the State and China’s foreign policy and to works by, or
biographies of, the leaders of the Party and the State, the project proposals
shall, after being counter signed by the State Bureau of Publication, be
submitted to the State Council for examination and approval.

    The taking of photographs of important cultural relics and other rare,
precious objects and the use of such photographs, and the publication of maps
that involve boundary lines of China shall be handled in strict accordance
with the pertinent provisions of the State.

    With respect to a publication project of co-operation with a foreign
party, the report submitted requesting the examination and approval of the
project proposal, copies of the contract (or agreement) both in Chinese and in
the foreign language concerned and the sample version of the item to be
published shall be submitted to the State Bureau of Publication for the record.

    11. With respect to trips abroad and back to China by professional
personnel needed in effecting publication in co-operation with foreign
countries, the competent departments shall simplify the examining and
approving formalities and provide convenience so as to facilitate the smooth
implementation of the contract.

    12. For books and journals published co-operatively, remuneration shall be
paid to the authors on the merits of each case and in accordance with the
existing domestic system of remuneration.

    For manuscripts that are published for the first time, the remuneration
may be slightly higher than the domestic rates.

    If a manuscript that has been published domestically is used, appropriate
fees may as well be paid, which shall in general not exceed 60 percent of the
original remuneration.

    If works of foreign authors are used, the remuneration may be slightly
higher than that which would be paid to domestic authors.

    The aforesaid remunerations shall be paid in Renminbi. The few really
special cases that require payment in foreign exchange, the payment shall,
upon approval by the higher competent departments, be made out of the foreign
exchange that the units concerned have obtained.

    13. In the work of publication in co-operation with foreign countries, it
is imperative for various publishing houses to display the socialist style of
co-operation among themselves, keep each other well informed, and work in
co-ordination when dealing with foreign countries. Differences and
contradictions, should they arise, shall be settled through consultations
among themselves or mediation by higher authorities.

    14. In dealings with foreign countries, it is imperative to strictly abide
by the disciplines related to foreign affairs and uphold our national dignity
and state prestige.






RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS APPROVING THE PROVISIONS OF THE STATE COUNCIL FOR HOME LEAVE FOR WORKERS AND STAFF

MEASURES FOR CONTROL OVER IMPORTED FILMS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-10-13 Effective Date  1981-10-13  


Measures for Control Over Imported Films



(Approved by the State Council on October 13, 1981 and promulgated by

the Ministry of Culture and the General Administration of Customs)

    Article 1  These Measures are formulated for tighter control over imported
films in accordance with the spirit of the Circular Concerning Checking the
Excessive Showing of Films for Restricted Information Only, which was issued
by the State Council of the People’s Republic of China and the Central
Military Commission of the People’s Republic of China on April 14, 1980.

    Article 2  The business of importing and releasing films or copies for
preview (including 35-mm, 16-mm and extra-8-mm films, films on video-tapes and
films on videodiscs, which are hereinafter generally referred to as “films”)
from foreign countries and the regions of Hong Kong and Macao shall be
exclusively handled and controlled by the China National Films Release and
Projection Corporation (hereinafter referred to as “the China Films
Corporation”).

    With respect to the import of a film, the Customs shall, on the strength
of the Customs Declaration Form for Imported Goods duly completed and
presented by the China Films Corporation, effect inspection and grant
clearance, With respect to films to be released nationwide for commercial
purposes, formalities to pay Customs duties shall be fulfilled at the time of
the import thereof. Films to be imported for non-commercial purposes shall be
exempted from Customs duties, If, upon approval, films imported for
non-commercial purposes are to be released nationwide after the import
thereof, the China Films Corporation shall, in accordance with the relevant
regulations, fulfil the formalities with the Beijing Customs for retroactive
payment of Customs duties.

    Article 3  With respect to data films imported by the China Cinematheque
(including films selected and purchased from each other by, or exchanged
between, or given to each other as presents by the China Cinematheque and
foreign cinematheques and films purchased through other channels as data), if
they are imported for non-commercial purposes, the Customs shall, on the
strength of the Customs Declaration Form for Imported Goods duly completed and
presented by the China Cinematheque, effect inspection and grant clearance
without levying duties.

    If, upon approval, imported data films need to be released nationwide, the
China Films Corporation shall, in accordance with the relevant regulations,
fulfil the formalities with the Beijing Customs for retroactive payment of
Customs duties.

    Article 4  With respect to specialized documentaries and science and
educational films imported by units of science and technology, industry,
agriculture, education, public health, journalism, foreign trade and foreign
affairs to meet the needs in their business or professional work, if the
importing units are affiliated to departments under the State Council, the
import shall be subject to the examination and approval of the respective
ministries or commissions (or bureaus) under the State Council. If the
importing units are local ones, the import shall be subject to the examination
and approval of the people’s governments of the provinces, autonomous regions
or municipalities directly under the Central Government. At the time of the
import of these films, the Customs shall, on the strength of the documents of
approval issued by the ministries or commissions (or bureaus) concerned under
the State Council or by the people’s governments of the provinces, autonomous
regions or municipalities directly under the Central Government and of the
Customs Declaration Forms for Imported Goods duly completed and presented in
triplicate by the applying units, effect inspection and grant clearance
without levying duties and shall dispatch one copy of the said Forms affixed
with the Customs official seal to the Cinema Administrative Bureau of the
Ministry of Culture for the record.

    Article 5  With respect to feature films presented to mainland
institutions, organizations, schools and other units by foreign organizations
or individuals or by those in the regions of Hong Kong and Macao or in Taiwan
Province, if the recipient units are affiliated to departments under the State
Council, the acceptance shall be subject to the examination and approval of
the Cinema Administrative Bureau of the Ministry of Culture. If the recipient
units are local ones, the acceptance shall be subject to the examination and
approval of the cultural bureaus (or cinema bureaus) of the provinces,
autonomous regions or municipalities directly under the Central Government and
shall be reported in writing to the Cinema Administrative Bureau of the
Ministry of Culture for the record.

    At the time of the import of these films, the Customs shall, on the
strength of the Customs Declaration Forms for Imported Goods duly completed
and presented by the recipient units and of the relevant documents of
approval, effect inspection and grant clearance without levying duties.

    The recipient units shall hand the said films over to the China
Cinematheque for unified custody. If the films have to be used to meet the
special business or professional needs, the recipient units may, on the
strength of the documents of approval issued by the higher competent
authorities, pick them up for the reference of the personnel concerned but may
not lend them out, or show them for entertainment purposes or show them to the
public. Upon completion of the reference, the films shall be sent back to the
custody of the China Cinematheque.

    If upon approval, imported feature films are to be released nationwide,
the China Films Corporation shall fulfil the formalities with the Customs for
retroactive payment of Customs duties.

    Article 6  With respect to science and educational films that are sent by
post by foreiners, overseas Chinese and compatriots in Hong Kong, Macao and
Taiwan Province or carried in person by them when they enter China’s mainland
to be given to individuals in China as presents for use as reference
materials, the Customs shall permit their import and shall, on the strength of
the Customs Declaration Forms for Imported Goods duly completed and presented
by the individuals that are to accept the films and of the letters of
certification issued by the units where the said individuals belong, effect
inspection and grant clearance without levying duties. With respect to feature
films given to individuals in China as presents, the Customs shall in general
not permit their import and shall send them back. Under special circumstances,
the Ministry of Culture and the General Administration of Customs shall study
and dispose of them.

    With respect to films that are carried in person by personnel of foreign
embassies (or consulates) in China, resident personnel in China sent by
foreign industrial and commercial enterprises (including resident foreign
correspondents) and foreign experts (including experts in culture and
education, economy, and science and technoloyg) who have been recruited to
work in China (or that are sent to them by post from abroad), the Customs
shall handle them in accordance with the existing relevant provisions. These
films shall, after their import, be placed under the strict control of the
departments concerned and shall be shown only by the aforesaid foreigners
among themselves. Chinese units or individuals are not permitted to borrow
these films for projection.

    Article 7  Business activities with respect to the joint production of
films by China and foreign countries and the joint production of films by
China’s mainland and the regions of Hong Kong and Macao or by the mainland and
Taiwan Province shall all be subject to the administration of the China Films
Joint Production Corporation, with the exception of the business activities of
the three Hong Kong films companies of the Great Wall, the Phoenix and the
Sunlin when they come back to shoot films on the mainland, where the Office of
Hong Kong & Macao Affairs under the State Council shall directly approach the
regions and units concerned for matters in this respect. With respect to the
import of the films jointly produced, the China Films Joint Production
Corporation shall fulfil the formalities of import Customs declaration with
the Customs. If, among these films, there are some that are to be released
nationwide, the China Films Corporation shall, in accordance with the relevant
regulations, fulfil the formalities with the Beijing Customs for retroactive
payment of Customs duties.

    Article 8  Films that are imported in violation of the relevant provisions
or smuggled in shall be dealt with by the Customs in accordance with the
relevant provisions. Those among the confiscated flims that are worth keeping
because of their value for reference may be passed on to the Cinema
Administrative Bureau under the Ministry of Culture, which shall hand them
over to the China Cinematheque for preservation.

    Article 9  These Measures shall go into effect as of the date of
promulgation.






INTERIM PROCEDURES FOR THE HANDLING OF LOANS BY THE BANK OF CHINA TO CHINESE-FOREIGN JOINT VENTURES

Interim Procedures for the Handling of Loans by the Bank of China to Chinese-Foreign Joint Ventures

     (Approved by the State Council on March 13, 1981 and Promulgated by the Bank of China on March 13, 1981)

   Article 1. In accordance with the provisions of Article 8 of the Law of the People’s Republic of China on Chinese-Foreign Joint Ventures that
“A joint venture shall open an account with the Bank of China or a bank approved by the Bank of China”, these Interim Procedures
are formulated to support the requirements of Chinese-foreign joint ventures (hereafter referred to as “joint ventures”) for funds
in their operating and business activities through the handling of loans to joint ventures (hereafter refereed to as “loans”).

   Article 2. Prospective Borrowers. Any joint venture may apply for a loan if, in accordance with the provisions of the Law of the People’s Republic
of China on Chinese-Foreign Joint Ventures, it has been approved by the Foreign Investment Commission, has registered with the General
Administration for Industry and Commerce and has obtained a business license.

   Article 3. Types of Loans. The Bank of China shall handle the following types of loans to joint ventures:

(1).Working capital loans. Short-term revolving funds for deficits that arise in the process of the production or circulation of goods
by the joint venture.

(2).loans for the settlement of accounts. Funds for settlement by joint ventures when their production capital is tied up in goods
that are in the process of being sold within the People’s Republic of China or abroad.

(3)Fixed asset loans. Funds for the deficits that arise when joint ventures need to increase their fixed assets in order to expand
their business operations or to make replacements and technical innovations.

The above-mentioned loans fall into two categories: Renminbi loans and foreign currency loans. A loan shall be repaid in the same
currency in which it was made. Interest on a foreign currency loan shall be computed and charged in foreign currency.

   Article 4.Conditions for Loans.

A Joint venture that applies for the use of a loan shall satisfy the following conditions:

(1). It shall comply with the Law of the People’s Republic of China on Chinese-Foreign Joint Ventures.

(2) It shall have opened a deposit account with the Bank of China or a bank approved by the Bank of China (hereafter referred to as
“the bank”).

(3) It shall be creditworthy and soundly managed.

(4)The source of funds for repayment of the loan and for payment of interest shall be fully guaranteed. At the time of drawdown, the
joint venture shall have provided, in a form acceptable to the bank, collateral security or the guaranty of a uarantor enterprise.

   Article 5. Term of Loans.

The term of a lone shall be decided by the borrowing venture and the bank, according to the specific contents of the items covered
by the loan and distinguishing among differing cases.

   Article 6. Interest Rates on Loans. The interest rates on Renminbi loans shall be those prescribed by the People’s Bank of China. The interest
rates on foreign currency loans shall be set by the Bank of China and shall be put into effect after being checked and approved by
the People’s Bank of China.

   Article 7. Application for Loans, Signing of Loan Agreements and Utilization of Loans.

(1) A borrowing venture that applies for a loan must satisfy the conditions for a loan and have the approval of its board of directors;
it shall go through the procedures for applying for a loan from the bank, fill out and submit an application for utilization of the
loan and provide necessary documentation, materials and copies of relevant contracts.

(2) After the loan application is examined and approved by the bank, the borrowing venture shall sign a loan agreement with the bank,
open a loan account and complete borrowing procedures in accordance with the provisions of the agreement. For a loan secured by credit,
a letter of guaranty of repayment of the loan, issued by a guarantor enterprise and acceptable to the bank, shall be attached to
the loan agreement; for a loan secured by things, written confirmation that the collateral serves as security for repayment, issued
by the borrowing venture and acceptable to the bank, shall be attached to the loan agreement.

   Article 8. Repayment of the Principal and Payment of Interest on Loans.

(1) The borrowing venture must repay the bank on the dates and in the amounts prescribed in the repayment schedule of the loan agreement.
If repayment of the loan becomes overdue, in the case of a loan secured by credit the guarantor enterprise shall be responsible for
repayment of the entire amount due, and the bank shall have the right to debit the deposit accounts of the borrowing venture and
the guarantor enterprise for repayment of the principal of the loan and payment of interest thereon; in the case of a loan secured
by things, the bank shall have the right to sell the collateral of the borrowing venture in order to repay the principal of the loan
and pay interest thereon. With respect to overdue loans, the bank shall, from the day on which the loan becomes overdue, charge the
borrowing venture additional interest of 20 to 50 per cent of the original interest rate.

(2) The borrowing venture mast pay interest in accordance with the interest computation dates prescribed by the bank and , if it fails
to do so, the bank on its own initiative shall transfer the amount of interest that is due into the loan account of the borrowing
venture and compute compound interest thereon.

   Article 9. Servicing and Supervision of Loans. In accordance with the policies and decrees of the State, the bank shall actively support joint
ventures in developing their production and operations and provide good service to them. Borrowing ventures shall accept the inspection
and supervision of the bank with respect to utilization of loans and shall provide the bank with materials and reports concerning
various kinds of plans, such as those for production, supply and marketing, finances and capital construction, and how they are being
put into effect. If a borrowing venture does not comply with the loan agreement, the bank may, distinguishing among differing cases,
adopt economic measures to safeguard its rights and interests, such as terminating disbursement of the loan or recalling the loan
ahead of the repayment schedule.

(The English translations are for reference only)

    






RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS AUTHORIZING THE PEOPLE’S CONGRESSES OF GUANGDONG AND FUJIAN PROVINCES AND THEIR STANDING COMMITTEES TO FORMULATE SEPARATE ECONOMIC REGULATIONS FOR THEIR RESPECTIVE SPECIAL ECONOMIC ZONES

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1981-11-26 Effective Date  1981-11-26  


Resolution of the Standing Committee of the National People’s Congress Authorizing the People’s Congresses of Guangdong and Fujian
Provinces and Their Standing Committees to Formulate Separate Economic Regulations for Their Respective Special Economic Zones

(Adopted on November 26, 1981)

    Having considered the proposal submitted by the State Council for
authorizing the people’s congresses of Guangdong and Fujian Provinces and
their standing committees to formulate separate economic regulations for the
special economic zones in these two provinces and with a view to ensuring
the smooth progress of construction in the special economic zones in the two
provinces, fully adjusting economic management in the special economic zones
to the needs in the work there, and giving a more effective role to the
special economic zones, the 21st Meeting of the Standing Committee of the
Fifth National People’s Congress resolves that, the people’s congresses of
Guangdong and Fujian provinces and their standing committees shall be
authorized to formulate separate economic regulations for the special
economic zones in accordance with the principles provided in relevant laws,
decrees and policies and in the light of the specific conditions and actual
needs in the special economic zones in those provinces, and they shall submit
these regulations to the Standing Committee of the National People’s Congress
and the State Council for the record.?







PROCEDURES FOR THE REGISTRATION, EXAMINATION AND APPROVAL OF JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

THE ECONOMIC CONTRACT LAW OF THE PEOPLE’S REPUBLIC OF CHINA