1987

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

MEASURES FOR THE CONTROL OF FIREARMS

Category  PUBLIC SECURITY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-04-25 Effective Date  1981-04-25  


Measures of the People’s Republic of China for the Control of Firearms


Carrying and Allocation of Firearms
Manufacture and Purchase of Firearms
Control of Firearms
Control of Firearms of Foreigners
Penalties
Miscellaneous

(Approved by the State Council on January 5, 1981, and promulgated by the

Ministry of Public Security on April 25, 1981)

    Article 1  These Measures are formulated to maintain public order, to
safeguard public security, and to prevent criminals from using firearms to
commit sabotage.

    Article 2  The term firearms (including the ammunition used with these
firearms), as mentioned in these Measures, refers to the following firearms
which belong to the non-military system: pistols, rifles, and submachine guns
and machine guns for military use; various firearms for target shooting
sports; rifles, shot-gun, and powder-gun for hunting; injection-gun for
applying anaesthesia on animals; and air-guns for discharging pellets.

    The military firearms used for fitting out the People’s Liberation Army,
the militia and the People’s Armed Police Force shall be controlled in
accordance with the pertinent provisions of the army and militia system.
Carrying and Allocation of Firearms

    Article 3  The following personnel may carry firearms:

    (1) personnel working in the people’s courts, the people’s procuratorates,
and the public security organs who are required to carry firearms for
discharging their duties;

    (2) party and government leading cadres working in the border areas,
coastal defence areas, and other remote areas who have the necessity, as
deemed by the people’s governments of the provinces and autonomous regions, to
carry firearms:

    (3) confidential couriers working in the Party and government departments
at or above the provincial level, and confidential messengers working in the
county or municipal Party and govenment departments in the border areas or in
post and telecommunications departments who have the necessity to carry
firearms;

    (4) personnel working in the Customs who are required to carry firearms to
discharge their duties;

    (5) guards and transport escorts working in war industries.

    Article 4  Firearms for official use may be allocated to the following
units:

    (1) the security sections of factories and mines, enterprises, government
departments, schools and universities, research institutions, that have the
necessity to be fitted out with firearms;

    (2) important financial and banking units and important warehouses, radio
stations, and research institutions which are located in remote area without
armed guards that have the necessity to be fitted out with firearms;

    (3) geological prospecting teams and survey and drawing teams that work in
remote areas or at sea, that have the necessity to be fitted out with
firearms;

    (4) coastal and ocean-going passenger-liners, freighters and oil tankers
and other operation vessels operating on the sea;

    (5) civil airports and civil air-liners that have the necessity to be
fitted out with firearms.

    Article 5  Sports guns may be allocated to sports committees at or above
the county level that promote target-shooting sports.

    Article 6  Personnel and units engaged in hunting as their specialized
line of production may carry or be allocated with hunting rifles. As regards
the non-professional hunting personnel, only citizens aged eighteen or over
may keep hunting rifles, and each can keep no more than two hunting rifles.

    Article 7  Injection-guns may be allocated to such units as hunting
production units, scientific research and teaching units, wild animal breeding
and livestock farms, and veterinary hospitals that have the necessity to apply
anaesthesia on animals.

    Article 8  Film studios, in order to meet the needs of film production,
may purchase old and obsolete firearms as stage properties. With the exception
of just a small number of firearms used for creating special stage effects,
all firearms must undergo technical treatment so that they can no longer be
used for discharging live ammunition.
Manufacture and Purchase of Firearms

    Article 9  Various kinds of firearms shall be manufactured and repaired by
factories designated by the State only; no units and individuals may
manufacture, repair or assemble firearms without authorization.

    Article 10  For the purchase of military firearms, the purchasing units
shall submit to the local public security organs a report listing such details
as the categories of firearms to be purchased, their quantities, uses, and
scope of carrying and allocation. After obtaining the approval, they shall
apply to the department designated by the State for appropriations.

    The purchase of various categories of firearms for target-shooting sports
shall be approved by the sports committee at a higher level and have the
consent of and the purchase permit granted by the county or municipal bureau
of public security at the place where the purchasing units are located: only
with the purchase permit may a purchasing unit make purchases of firearms at
the department designated by the State.

    The purchase of hunting rifles and injection-guns shall be approved by the
competent forestry department at the county level or higher and have the
consent of and the purchase permit granted by the public security organ; only
with the purchase permit, may a purchasing unit make purchases at the
department designated by the State. The distributors of hunting rifles shall
go through the procedures of registration at the public security organ at the
county or municipal level or higher.

    With the exception of the units designated by the State or approved by the
competent department, no units or individuals may sell or purchase firearms
and ammunition.
Control of Firearms

    Article 11  The firearm-carrying personnel shall obtain the consent of the
person in charge of their unit, and have the approval of the competent
department at the county level or higher. The firearm-equipped unit shall
obtain the approval of the people’s government at the county level or higher.

    Without permission through legal procedures, no units or individuals may
keep firearms and ammunition privately. Firearms and ammunition kept without
permission shall be handed over to the local public security organ, and shall
not be disposed of privately.

    Article 12  Firearm-carrying personnel and firearm-equipped units shall
apply to the local county or municipal bureau of public security for firearm
licenses, which shall be granted after examination and approval.

    Firearm-carrying personnel, when going out with their firearms, shall
carry them with firearm licenses for examination. Personnel carrying firearms
for official use and who perform duties in places other than their own county
or municipality must apply to the local county or municipal bureau of public
security for firearm-carrying pass.

    Article 13  Firearms which bear historic significance kept on display in
exhibition halls, museums, etc., shall be registered at the local county or
municipal bureau of public security, and shall not be used for other purposes.

    Article 14  It is strictly prohibited to fire shots at will in cities,
towns, residential areas, scenic spots, airports, along communication lines,
or in any other places where shot-firing is prohibited according to
regulations. It is prohibited to fire shots and hunt in non-hunting areas.

    Article 15  In some particular areas or places where firearms are banned,
firearm-carrying personnel shall leave the firearms they carry with the public
security organ or a designated unit for safe-keeping, and have them given back
when leaving.

    Article 16  All categories of firearms shall be kept properly and safe.
Firearms kept collectively shall be well taken care of by persons specially
designated for the job; special warehouses (or cabinets) shall be used for
keeping the firearms, and firearms and ammunition shall be kept separately;
strict measures shall be taken against loss, theft or other accidents.

    In case that firearms are lost or stolen, it must be reported immediately
to the public security organ, and the scene of the incident shall be kept
intact.

    Article 17  Firearm-equipped units and firearm-carrying personnel are not
permitted, without official approval, to lend out their firearms and
ammunition or give them to others as gifts. In the event that a
firearm-equipped unit has been disbanded or a firearm-carrying person been
transferred to a new unit, the unit or the person shall return the firearms to
the original firearm-allocating unit, and return the firearm licence(s) to the
original licence-issuing public security organ for cancellation.

    Persons who hold hunting rifles shall, upon moving away from the county or
city of their original residence, return for cancellation their firearm
licences to the original licence-issuing public security organ and obtain
firearm-transport passes. On their arrival at their destinations, they shall
present the firearm-transport passes to the local security organ and go
through the procedures for obtaining new firearm licences.

    Article 18  To transport firearms and ammunition, it is imperative to
apply to the county or municipal bureau of public security stationed at the
destination of transportation for a transport pass. Upon arrival at the
destination, the applicant shall present the transport pass to the local
public security organ and go through the procedures for registration or for
obtaining a new firearm licence.

    Article 19  To carry hunting rifles into the country from abroad, it is
imperative to obtain, in advance, the approval of the county or municipal
bureau of public security stationed in the locality of the applicant’s
residence. Upon entering the country, the applicant shall declare at the
Customs, and a carrying-transport permit shall be issued after examination and
approval by the border inspection office. Upon arrival at the destination, the
applicant shall go through the procedures for obtaining a firearm licence by
presenting the carrying-transport permit.

    To carry hunting rifles out of the country, it is imperative to return for
cancellation the firearm licence to the original licence-issuing public
security organ for a carrying-transport permit. On exit, the applicant shall
declare at the Customs, and surrender the carrying-transport permit to the
local border inspection office.

    Article 20  Firearms that have fallen into disuse shall be registered by
the firearm-holding units in detailed lists, which shall be submitted for
approval to the competent departments of the province, autonomous region, or
municipality directly under the Central Government, and, then, again to the
local county or municipal bureau of public security for examination; after
that, the disused firearms shall undergo a treatment of disfigurement before
they are sent, under the supervision of the unit in charge of the destruction,
to a smeltery designated by the public security department (bureau) of the
province, autonomous region, or municipality directly under the Central
Government for melting down and complete destruction.

    Article 21  Air guns that discharge metal pellets shall be controlled in
accordance with the provisions concerning the control of sports guns, when
used by sports departments in target-shooting sports, and in accordance with
the provisions concerning the control of hunting rifles when used for hunting
by hunting units. Privately purchased and held pellet-discharging air guns are
also required to go through registration procedures and to be placed under
control; and the control measures shall be formulated by the public security
department (bureau) of the province, autonomous region, or municipality
directly under the Central Government.

    Artilce 22  Firearm licences, firearm-carrying passes, purchase permits
for sports guns, hunting rifles and injection-guns, transport passes for
firearms and ammunition, and carrying-transport permits shall all be devised
solely by the Ministry of Public Security, be printed solely by the public
security department (bureau) of the province, autonomous region, or
municipality directly under the Central Government, and be signed and issued
by the county or municipal bureau of public security.

    Article 23  The public security organs at various levels shall exercise
supervision over such affairs as the carrying, use, safe-keeping, and changes
of firearms in the non-military departments of their locality, and carry out
inspection at regular intervals.
Control of Firearms of Foreigners

    Article 24  Foreign diplomatic missions and consular posts in China, and
their personnel, that are to carry firearms into China shall apply in advance
to the Ministry of Foreign Affairs of the People’s Republic of China; after
obtaining the consent, they shall declare at the Customs on entering the
country and then be issued the carrying-transport permits by the border
inspection office after examination. Upon arrival at the destination, the
applicants shall report to the local municipal bureau of public security, and
go through the registration procedures for their firearms.

    No firearms belonging to foreign diplomatic missions and consular posts in
China and to their personnel, with the exception of their shotguns which may
be used in hunting grounds, shall be carried out of the confines of the
aforesaid missions and posts.

    Foreign diplomatic missions and consular posts in China and their
personnel that are to carry their firearms out of China shall send a note to
the Ministry of Foreign Affairs of the People’s Republic of China, and make an
application to the municipal bureau of public security at the locality of
their residences for registration cancellation and for the issuance of
carrying-transport permits. On exit, they shall declare at the Customs, and
submit the carrying-transport permit to the local border inspection office.

    Article 25  Members of foreign political party, government, military or
parliamentary delegations and their guards that are to carry firearms into
China shall obtain in advance the consent from the Ministry of Foreign Affairs
of the People’s Republic of China or from the host units, which shall notify
the border inspection office and submit a report to the Ministry of Public
Security for the record.

    Article 26  Foreign sports teams that come to China to take part in a
shooting tournament with their sports rifles and pistols shall obtain in
advance the approval by the Physical Culture and Sports Commission of the
People’s Republic of China. On entering the country, they shall declare at the
Customs, and then the border inspection office shall issue them the
carrying-transport permits after examination. On arrival at the locality of
the tournament, they shall go through the registration procedures for the
record at the local county or municipal bureau of public security, and cancel
the registration before leaving. Foreign sports teams that travel via China
shall obtain in advance the approval of the Physical Culture and Sports
Commission of the People’s Republic of China, which shall notify the border
inspection authorities, and the inspection office at the entry point shall put
paper slip seals on the firearms and permit them to pass through the country.

    Article 27  Firearms and ammunition on board foreign civil air-liners or
vessels registered in foreign countries, shall be sealed up by the border
inspection office when the air-liners and vessels enter a port of China, and
unsealed when the air-liners and vessels leave the country.

    Article 28  Apart from those who come to China as stipulated in Articles
24, 25 and 26 of these Measures, no foreigners are permitted to carry firearms
and ammunition into the territory, unless approved by the competent
departments of the People’s Republic of China and by the public security
department (bureau) of the province, autonomous region, and municipality
directly under the Central Government at the places of their destination.
Those who carry firearms and ammunition with them must, on entering the
territory, declare at the Customs, and the border inspection office shall
temporarily seal up the firearms and ammunition for safe-keeing at the entry
port, and give them back when the owners leave the country; or the firearms
and ammunition shall be re-transported out of the territory by the original
carriers. Those who have obtained the approval to carry firearms and
ammunition into or out of the territory shall go through the procedures in
accordance with the stipulations of Article 19 of these Measures. Those in
transit shall declare at the Customs, and the border inspection office shall
seal the firearms up after examination, and permit them to pass through the
country. Those who fail to declare at the Customs shall be dealt with, without
exception, as cases of illegal transport of firearms and ammunition.

    Article 29  Foreigners who wish to buy hunting rifles in China, shall
obtain the approval of and certificates from the foreign affairs office of the
province, autonomous region or municipality directly under the Central
Government, or the host unit. They shall then apply to the local county and
municipal bureau of public security for purchase permits and make their
purchases at designated stores after approval.
Penalties

    Article 30  The chief person-in-charge and the direct offender, who are
held responsible for the violation of these Measures, shall receive penalties
ranging from disciplinary sanction, punishment in accordance with the
regulations on the maintenance of public order, to an investigation by the
judicial organ of the criminal responsibilities of the offender, depending on
the seriousness of the case.
Miscellaneous

    Article 31  People’s governments of various provinces, autonomous regions
and municipalities directly under the Central Government and the various
ministries and commissions under the State Council may, in accordance with
these Measures, formulate specific provisions for the control of firearms, and
report thereon to the Ministry of Public Security for the record.

    Article 32  These Measures shall go into effect after the approval by the
State Council and the promulgation by the Ministry of Public Security. The
Interim Measures Concerning the Control of Firearms, approved by the
Government Administration Council and promulgated by the Ministry of Public
Security on June 27, 1951, shall be abrogated at the same time.






RULES FOR THE IMPLEMENTATION OF THE EXAMINATION AND APPROVAL OF APPLICATIONS BY INDIVIDUALS FOR FOREIGN EXCHANGE

INTERIM MEASURES FOR IMPLEMENTATION OF THE REGULATIONS ON ACADEMIC DEGREES

Category  EDUCATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-05-20 Effective Date  1981-05-20  


Interim Measures for Implementation of the Regulations of the People’s Republic of China on Academic Degrees



(Approved by the State Council on May 20, 1981, promulgated by the

Academic Degree Committee of the State Council)

    Article 1  These Interim Measures are formulated in accordance with the
Regulations of the People’s Republic of China on Academic Degrees.

    Article 2  Academic degrees shall be conferred in accordance with following
classes: Philosophy, Economics, Law, Pedagogy, Literature, History, Science,
Technology, Agronomy and Medical Science.

    The Bachelor’s Degree

    Article 3  The bachelor’s degree shall be conferred by those institutions
of higher learning authorized by the State Council.

    The bachelor’s degree shall be conferred on the graduates from institutions
of higher learning who have finished with the various requirements of the
program on education and have been agreed to graduation through examination,
whose learning records and graduation dissertations (graduation projects and
graduation field works) show that they have had a relatively good grasp of
basic theories, specialized knowledge and basic skills in the discipline
concerned, and have had the preliminary ability to engage in a scientific
research work or to undertake a special technical work.

    Article 4  In institutions of higher learning authorized to confer the
bachelor’s degree, the departments shall examine and approve the records, the
graduation appraisal and so on of every graduates, and submit those who have
met the Article 3 of these Measures and relevant rules to the institution’s
academic evaluation committee for listing holders of the bachelor’s degree.

    In the institutions of higher learning that may not confer the bachelor’s
degree, the departments shall submit a list of the graduates who have attained
the bachelor’s academic standards to the institutions and, the institutions
shall, after approval, recommend to the nearby institutions of higher learning
authorized to confer the bachelor’s degree in the same system and location.
The relevant departments of institutions of higher learning authorized to
confer the bachelor’s degree shall examine and approve the graduates
recommended by institutions of higher learning that may not confer the
bachelor’s degree and submit those who have met the Article 3 of these Measures
and relevant rules to the institution’s academic evaluation committee for
listing holders of the bachelor’s degree.

    Article 5  Those who are on the list of holders of the bachelor’s degree
shall be conferred the bachelor’s degree by the institutions of higher
learning authorized to confer the bachelor’s degree after they are examined
and approved by the institution’s academic evaluation committee of the
institutions of higher learning authorized to confer the bachelor’s degree.

    The Master’s Degree

    Article 6  The master’s degree shall be conferred by those institutions of higher learning or scientific research institutes authorized
by the State
Council.

    Those who apply for a master’s degree shall submit an application, a
dissertation of applying for the master’s degree and so on to units
authorized to confer the academic degree (here in after referred to as
“degree-conferring units”) within the fixed period set by degree-conferring
units. Degree-conferring units shall, within two months after closing day of
application, conduct examination on these materials, make a decision on
whether or not approve the application, and notify the result to the applicant
and his unit.

    Postgraduates who have completed their studies in units that are not
authorized to confer academic degree shall submit their respective units’s the
recommendation about applying for master’s degree when they apply for.

    When those with qualifications equivalent to postgraduates apply for, they
shall submit a recommendation by two associate professors, professors or
specialists with qualifications equivalent to associate professors or
professors. With regard to applicants without academic credentials of the
institution of higher learning, the degree-conferring units may, before
accepting, take appropriate method to make examination on some required courses
for graduates of the institutions of higher learning.

    Applicants shall not submit applications to two degree-conferring units
simultaneously.

    Article 7  Examined courses and requirements for the master’s degree: (1)
Marxist theories, requiring a grasp of basic theories of Marxist. (2) basic
theories and specialized courses, generally three or four, requiring a firm
grasp of basic theories and systematic, specialized knowledge. (3) a foreign
language, requiring a being capable of reading relatively smoothly the foreign
materials in the discipline concerned.

   Examinations in the required courses for the master’s degree taken by
postgraduates in degree-conferring units shall be arranged to process in
accordance with the above-mentioned requirements, and training projects.

   Examinations in the required courses for the master’s degree taken by
postgraduates in units that are not authorized to confer academic degree shall
be organized to process by degree-conferring units. Those who have been
considered that their contents and records of examined courses taken in their
respective units are up to standard after the examination and approval by
degree-conferring units, may be exempt from some or all examinations in the  
required courses for the master’s degree.

    Examinations in the required courses for the master’s degree taken by
those with qualifications equivalent to postgraduates shall be organized to
process by degree-conferring units.

    Those who apply for the master’s degree must pass the examinations in the
required courses, with the results up to the standard, before defending their
dissertations. Those failing in one required course examination may apply to
make up within half a year, if they fail again, the persons may not take
defending their dissertation.

    Degree-conferring units trying the credit system shall decide the credits
in the required courses for the master’s degree in accordance with
above-mentioned requirements. Those who apply for the master’s degree may
take defending their dissertation after they have gotten the required credit.

    Article 8   Dissertations for the master’s degree shall have new ideas
to the researched subject, and show the writers having the ability to engage
in the scientific research or to undertake independently a special technical
work.

    Degree-conferring units shall invite one or two specialists in the
dissertation relating the discipline to evaluate the dissertation. Evaluating
persons shall write comment in detail on the dissertation, which shall be
referenced by the dissertation committee.

    A dissertation committee for the master’s degree shall be formed by three
to five persons, among which there shall generally be specialists from other
units. The chairmen of the dissertation committee shall be taken by an
associate professor, a professor or a person qualifications equivalent to an
associate professor or a professor.  

    Decisions on whether or not to confer the master’s degree shall be made by
the dissertation committee in accordance with the defending result. Each
decision shall be adopted by secret ballot and with a two-thirds majority
of the committee members supporting, and then submitted to the academic degree
evaluation committee with the signature of the chairmen of the dissertation
committee. The meeting shall be recorded.

    Persons failing in the defending their dissertations for master’s degree
may, with approval by the dissertation committee, modify their dissertations
within one year and take defending their dissertations again.

    Article 9  If the majority of the members of the dissertation committee
for the master’s degree consider the applicant’s dissertation is up to
academic standards of doctor’s degree, they may, in addition to making a
decision to confer the master’s degree, put forward a proposal to units
authorized to confer the doctor’s degree, which shall handle the matter
pursuant to the relevant provisions in the part of the doctor’s degree of
these Interim Measures.  

    The Doctor’s Degree

    Article 10  The doctor’s degree shall be conferred by those institutions
of higher learning or scientific research institutes authorized by the State
Council.

    Those who apply for a doctor’s degree shall submit an application, a
dissertation of applying for the master’s degree and so on to
degree-conferring units within the fixed period set by degree-conferring units.
Degree-conferring units shall, within two months after closing day of
application, conduct examination on these materials, make decision on whether
or not approve the application, and notify the result to the applicant and his
unit.    

    When those with qualifications equivalent to doctors apply for, they shall
submit a recommendation by two professors or those with qualifications
equivalent to professors. With regard to applicants without the master’s
degree, the degree-conferring units may, before accepting, take appropriate
method to make examination on some required basic theories and specialized
courses for the master’s degree.

    Applicants shall not submit applications to two degree-conferring units
simultaneously.

    Article 11  Examined courses and requirements for the doctor’s degree:

    (1) Marxist theories, requiring a relatively good grasp of basic theories
of Marxist.

    (2) basic theories and specialized courses, requiring a firm and
comprehensive grasp of basic theories and systematic and profound specialized
knowledge in the discipline concerned. Range of examinations shall be examined
and approved by the academic degree evaluation committee of degree-conferring
units. Examinations of basic theories and specialized courses shall be taken
charge of by a examination committee formed by three specialists appointed by
the academic degree evaluation committee of degree-conferring units. The
chairmen of the examination committee must be taken by a professor, a associate
professor or a person qualifications equivalent to a professor or a associate
professor.

    (3) two foreign languages, for the first, requiring a being capable of
reading smoothly the foreign materials in the discipline concerned and having
certain writing ability and, for the second, requiring a preliminary ability
to read foreign materials in the discipline concerned. For some subjects and
disciplines examined and approved by the academic degree evaluation committee
of degree-conferring units, only the examination in the first foreign language
is required.

    Examinations in required courses for the doctor’s degree shall be arranged
to process in accordance with the above-mentioned requirements, and training
projects.

    Article 12  Persons who apply for the doctor’s degree must pass the
examinations in the required courses for the doctor’s degree, with the results
up to the standard, before defending their dissertations.  

    Applicants for the doctor’s degree who have written important works or
made inventions, discoveries or other contributions to the development of
science or special technologies shall submit published books, inventions
appraisal or certificate and other materials to degree-conferring units, and
with a recommendation of two professors or those with qualifications
equivalent to professors and the examination and approval by degree-conferring
units in accordance with the article 11 in these Interim Measures, they may be
exempt from some or all examinations in the required courses for the doctor’s
degree.

    Article 13  Dissertations for the doctor’s degree shall show that the
writers have the ability to engage in independently scientific researches and
have made creative achievements in science or special technologies. The
dissertation for the doctor’s degree or its summary shall be copied and
be submitted to relevant units three month before it is defended, and be
appraised by the specialists in the discipline concerned.

    Degree-conferring units shall invite two specialists in the dissertation
relating the discipline to evaluate the dissertation, one of which shall
come from other units. Evaluating persons shall write comment in detail on the
dissertation, which shall be referenced by the dissertation committee.

    Article 14  A dissertation committee for the doctor’s degree shall be
formed by five to seven persons, half of which or more shall be professors or
those with qualifications equivalent to professors. Among the committee
members there must be two or three specialists from other units. Generally,
the chairman of the dissertation committee shall be taken by a professor or a
person with qualifications equivalent to a professor.

    Decisions on whether or not to confer the doctor’s degree shall be made by
the dissertation committee in accordance with the defending result. Each
decision shall be adopted by secret ballot and with a two-thirds majority
of the committee members supporting, and then submitted to the academic degree
evaluation committee with the signature of the chairmen of the dissertation
committee. The meeting shall be recorded.    

    Generally, the dissertation defending for doctor’s degree shall be
carried out in public. The dissertation for the doctor’s degree or its summary
shall be published publicly (except secret disciplines).  

    Persons failing in the defending their dissertations for doctor’s degree
may, with approval by the dissertation committee, modify their dissertations
within two year and take defending their dissertations again.    

    Article 15  If the members of the dissertation committee for the doctor’s
degree consider that the applicant’s dissertation has not attained the
academic standards of the doctor’s degree but has attained the academic
standards of master’s degree, and the applicant has not gotten the
master’s degree in the subject concerned, the dissertation committee for the
doctor’s degree may make the decision to confer the master’s degree and submit
to the dissertation committee.

    The Honorary Doctor’s Degree

    Article 16  The honorary doctor’s degree shall be conferred by those units
authorized to confer the doctor’s degree by the State Council.

    Article 17  The honorary doctor’s degree shall be conferred after the
academic degree evaluation committee of the degree-conferring units has
discussed and approved, and submit to the Academic Degree Committee of the
State Council for approval.

    The Academic Degree Evaluation Committee

    Article 18  The academic degree evaluation committees of degree-conferring
units shall do their following duty in accordance with the limits to conferring
the degree that are approved by the State Council:

    (1) examining and approving the list of applicants for the master’s degree
and the doctor’s degree;

    (2) deciding the examined subjects for the master’s degree and the number
of those subjects and examined range of basic theories and specialized courses
for the doctor’s degree, and examining and approving the list of the
dissertation committee members;

    (3) approving the list of those who are to be conferred with the
bachelor’s degree;

    (4) making the decision to confer the master’s degree;

    (5) examining and approving the list of applicants for the doctor’s degree
who are exempt from some or all examinations in the required courses for the
doctor’s degree;

    (6) making the decision to confer the doctor’s degree;

    (7) approving the list of those who are to be conferred with the honorary
doctor’s degree;

    (8) making the decision to cancel the degree that is conferred by
violating regulations; and

    (9) studying and settle the disputes over the degree conferring and other
related matters.

    Article 19   An academic degree evaluation committees of the
degree-conferring unit shall be formed by nine to twenty five persons. The
term of the committee members shall be two to three years. The committee shall
include the main persons in charge of the degree-conferring units and the
persons engaging in teaching and researching work in the degree-conferring
units.

    For institutions of higher learning authorized to confer the bachelor’s
degree, the teaching personnel in the academic degree evaluation committee
shall be selected from teachers above lecturer in the institutions. For units
authorized to confer the bachelor’s, master’s and doctor’s degrees, the
teaching and reaching work personnel in the academic degree evaluation
committee shall be selected from associate professors, professors or those
with qualifications equivalent to associates professors or professors in the
units. For units authorized to confer the doctor’s degree, at least half of
the academic degree evaluation committee members shall be professors or those
with qualifications equivalent to professors.

    The chairman of the academic degree evaluation committee shall be taken by
the main person in charge of the degree-conferring units with the post_title of
professor, associate professor or the qualifications equivalent to professor
or professor. (President of the institution of higher learning, Vice-presidents
in charge of teaching, researching and postgraduate work, or the equivalent
persons in researching units).

    The academic degree evaluation committee may set the academic degree
evaluation sub-committees in accordance with classes of the discipline. A
sub-committee shall be formed by five to fifteen person, the term of which are
two to three years. The chairman of a sub-committee shall be taken by a
member of the academic degree evaluation committee. The sub-committees shall
assist the academic degree evaluation committee in their work.

    The list of the members of the academic degree evaluation committee shall
be submitted by the degree-conferring unit to the competent department for
approval, and the competent department shall submit it to the Academic Degree
Committee of the State Council for the record.

   Academic degree evaluation committees shall engage necessary full-time or
part-time personnel for handling routine business.

    Article 20  Degree-conferring units shall annually submit the number of
persons who are conferred with the bachelor’s degree, the list of persons who
are conferred with the master’s degree and the doctor’s degree and related
materials to the competent department and the Academic Degree Committee of the
State Council for the record.

    Miscellaneous Provisions

    Article 21  Bachelor’s degree applications by the foreign students
studying in China shall be handled by following the provisions of Article 3
and other relevant regulations in these Interim Measures.

    Applications of the master’s degree and the doctor’s degree by the foreign
students studying in China shall be handled by following the relevant
regulations in these Interim Measures.

    Article 22  The bachelor’s degree certificate format shall be formulated
by the Ministry of Education. The master’s degree or the doctor’s
degree certificate format shall be formulated by the Academic Degree Committee
of the State Council. The certificates of the academic degrees shall be issued
by the degree-conferring units.

    Article 23  A copy of passed dissertation for the master’s degree and that
for the doctor’s degree shall be deposited in the library of the
degree-conferring unit, in addition, a copy of passed dissertation for the
doctor’s degree shall be deposited in the Beijing Library and other
respectively library.

    Article 24  Persons at work who apply for the master’s degree or the
doctor’s degree, after degree-conferring units have examined and approved their
participating in courses examinations and taking the dissertation defending,
may enjoy a vacation not more than two months for the examination or defending.

    Article 25  Degree-conferring units may, in accordance with these Interim
Measures, make rules for the degree-conferring work of their own units.






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING APPROVAL OF CASES INVOLVING THE DEATH SENTENCE

CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-12-28 Effective Date  1982-02-01  


Circular of the State Council Concerning the Approval and Transmission

Circular
A REPORT REQUESTING INSTRUCTIONS ON THE IMPOSITION OF EXPORT LICENCE
CATALOGUE OF GOODS AND MATERIALS SUBJECT TO THE EXPORT LICENCE PROCEDURES

of a Report Submitted by the State Import and Export Commission and the
State Planning Commission Requesting Instructions on the Imposition of
Export Licence Procedures for the Export of Some Goods and Materials beyond
the State Plan


(December 28, 1981)

Circular

    The State Council agrees with the “Report Requesting Instructions on the
Imposition of Export Licence Procedures for the Export of Some Goods and
Materials Beyond the State Plan” submitted by the State Import and Export
Commission and the State Planning Commission, and the Report is hereby
transmitted to you; it is required you consider carefully the ways to implement
this Report in accordance with the prescribed categories of goods and
materials.
A REPORT REQUESTING INSTRUCTIONS ON THE IMPOSITION OF EXPORT LICENCE
PROCEDURES FOR THE EXPORT OF SOME GOODS AND MATERIALS BEYOND THE STATE PLAN

     With the further implementation of the policy for the readjustment of the
national economy, and with the structural reform of foreign trade and the
gradual decentralization of power of management, the foreign trade of our
country will have a new development. With a view to meeting the needs of the
development, various localities and departments have established some export
institutions to engage directly in export business. In the course of these
developments, owing to poor communication among different localities and
departments, the State, on the one hand, imports in large quantities some
finished products in short supply at home and other goods and materials that
are of the high energy consumption and are not suitable for export, while some
localities or departments, on the other hand, are organizing the export of the
aforesaid goods and materials beyond the state plan. For the same kind of
commodity, the price is low when it is exported, and the price is high when it
is imported, and consequently, the State suffers losses in terms of foreign
exchange, and is also affected unfavourably with respect to the needs for
construction. If this situation is allowed to continue, the country will suffer
serious losses. We have, therefore, consulted with the relevant departments,
and hereby put forward the following proposals with respect to the export of
the goods and materials that are in short supply in China:

    1. We hereby propose to designate eleven categories of badly-needed goods
and materials, on the export of which, if beyond the state plan, the export
licence procedures shall be imposed (the specific catalogue is attached below
as appendix). The products in short supply as mentioned above are relatively in
short supply, for, in the course of the implementation, circumstances might
change. It is proposed here that the State Import and Export Commission and the
State Planning Commission, while working out the annual plan for the national
economy, and through consultation with the competent authorities concerned, set
about revising, in good time, the aforesaid catalogue in the light of the
supply-and-demand situation.

    2. With respect to export goods and materials subject to the export licence
procedures with the exception of those export commodities that are included in
the State plan, materials imported to execute processing contracts, or
imported by foreign trade departments for processing into finished goods, or
contained in the approved and signed contracts for compensation trade, or
commodities on which agreements have been signed between foreign trade
departments and local units for supporting the production for export, if any
locality or department is to make arrangements, beyond the State plan, for the
export of the said goods and materials, or to organize exchange of categories
and types that are favorable to us, the case shall obtain the consent of the
competent allocating departments, and be submitted to the State Import and
Export Commission and the State Planning Commission for approval.

    3. Customs offices at various localities should improve their control over
the goods and materials that are exported beyond the State plan. In order to
facilitate the administration of the Customs offices over the aforesaid export
goods and materials, all localities and departments that deal in the eleven
categories of export goods and materials stipulated in the said catalogue,
either within or beyond the State plan, shall all apply to the foreign trade
departments for export licences and the Customs offices shall examine the
export according to the licences; otherwise, no clearance shall be given to
these goods and materials.

    4. All the goods and materials listed in the catalogue for export beyond
the State plan, so long as their quality meets the state standards and no
problem arises in transportation, shall be purchased at the prices set by the
state, by the competent allocating departments, or the competent allocating
departments shall assist in locating users for domestic sale.

    If the above proposals are feasible, we request that they be approved and
transmitted to all departments and all provinces, autonomous regions, and
municipalities directly under the Central Government for implementation as of
February 1, 1982.
CATALOGUE OF GOODS AND MATERIALS SUBJECT TO THE EXPORT LICENCE PROCEDURES
FOR THE EXPORT BEYOND THE STATE PLAN

    1. crude oil, heavy oil, refined oil.

    2. coal.

    3. steel products: sheet steel (including zinc-plating steel, tin-plating
steel), strip steel, medium and heavy steel plate (including steel plate for
ship-building), welded pipe (including zinc-plating welded pipe), square
billet.

    4. pig iron, coke, iron alloy, chromium ore.

    5. plate glass.

    6. non-ferrous metals: copper, aluminium, lead, zinc, tin, cobalt, bismuth,
concentrate molybdenum ore and its products, tellurium; copper products,
aluminium products, and lead products placed under the state’s unified
allocation.

    7. timber: log, sawn wood products, plywood.

    8. cement produced by large, medium-sized and small cement mills.

    9. natural rubber.

    10. sodium carbonate, polyethylene, polypropylene, phosphorus ore,
mawsonite, sulphur, benzene anhydride, liquid hydrocarbon.

    11. rice, soybean, corn, sugar, cotton, rosin, tung oil, flue-cured
tobacco.?







RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS PROVIDING AN IMPROVED INTERPRETATION OF THE LAW

INCOME TAX LAW FOR FOREIGN ENTERPRISES

Category  TAXATION Organ of Promulgation  The National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1981-12-13 Effective Date  1982-01-01 Date of Invalidation  1991-07-01


Income Tax Law of the People’s Republic of China for Foreign Enterprises



(Adopted at the Fourth Session of the Fifth National People’s Congress and

promulgated by Order No. 13 of the Chairman of the Standing Committee of the
National People’s Congress on December 13, 1981, and effective as of January
1, 1982) (Editor’s Note: This Law has been annulled by Income Tax Law of the
People’s Republic of China for Enterprises with Foreign Investment and Foreign
Enterprises promulgated on April 9, 1991 and effective as of July 1, 1991)

    Article 1  Income tax shall be paid in accordance with the provisions of
this Law by foreign enterprises on their income derived from production and
business operations and other sources in the People’s Republic of China.

    “Foreign enterprises” mentioned in this Law refers, with the exception of
those for whom separate provisions are stipulated in Article 11, to foreign
companies, enterprises and other economic organizations that have
establishments within the territory of the People’s Republic of China engaged
in independent business operations or in cooperative production or cooperative
business operations with Chinese enterprises.

    Article 2  The taxable income of a foreign enterprise shall be the amount
remaining from its gross income in a tax year after the costs, expenses and
losses have been deducted.

    Article 3  The income tax on foreign enterprises shall be computed at
progressive rates on amounts in excess of specified amounts of taxable income;
the rates are as follows:

              Range of Income                  
Tax Rate (%)

       Annual income not exceeding

               250,000 yuan                        20

     That part of annual income from

           250,000 to 500,000 yuan                
25

     That part of annual income from

           500,001 to 750,000 yuan                
30

     That part of annual income from

           750,001 to 1,000,000 yuan              
35

     That part of annual income above

               1,000,000 yuan                      40

    Article 4  When paying the income tax in accordance with the provisions
of the preceding Article, a foreign enterprise shall also pay a local income
tax of ten percent of taxable income. In cases where a foreign enterprise with
small-scale production and low profits warrants a reduction in or exemption
from the local income tax, the decision shall be made by the people’s
government of the province, autonomous region, or municipality directly under
the Central Government in which the enterprise is located.

    Article 5  A foreign enterprise scheduled to operate for a period of ten
years or more in farming, foresty, animal husbandry or other low-profit
operations may, upon approval by the tax authorities of an application filed
by the enterprise, be exempted from income tax in the first profit-making year
and allowed a 50 percent reduction of income tax in the second and third years.

    With the approval of the Ministry of Finance, a 15 to 30 percent reduction
in income tax may be allowed for another ten years following the expiration of
the period for exemption and reductions prescribed in the preceding paragraph.

    Article 6  Losses incurred by a foreign enterprise in a tax year may be
made up with a corresponding amount drawn from the next year’s income. Should
the income in the subsequent tax year be insufficient to make up for the said
losses, the balance may be made up with further deductions from its income
year by year, but within a period not exceeding five years.

    Article 7  Income tax on foreign enterprises shall be computed on an
annual basis and paid in advance in quarterly instalments. Such advance
payments shall be made within 15 days after the end of each quarter, and the
final settlement shall be made within five months after the end of each tax
year, with a refund for any overpayment or a supplementary payment for any
deficiency.

    Article 8  A foreign enterprise shall file its income tax returns in
respect of advance payments with the local tax authorities within each period
prescribed for advance payments; and it shall file an annual income tax
return, together with the statement of final accounts, within four months
after the end of the tax year.

    Article 9  A report on the financial and accounting systems of a foreign
enterprise shall be submitted to the local tax authorities for reference.

    If the procedures for financial management and accounting of a foreign
enterprise contradict the provisions of the tax laws, tax payments shall be
assessed in accordance with the provisions of the tax laws.

    Article 10  When a foreign enterprise starts or ceases to operate in
accordance with the law, it shall present the relevant certificates to the
local tax authorities and go through tax registration.

    Article 11  Foreign companies, enterprises and other economic
organizations that have no establishments in China, but have gained dividend,
interest, rental, royalty and other income from sources in China, shall pay an
income tax of 20 percent on such income. Such tax shall be withheld by the
paying unit from the amount of each payment.

    For the payment of income tax in accordance with the provisions of the
preceding paragraph, the foreign company, enterprise or other economic
organization which earns the income shall be the taxpayer, and the paying unit
shall be the withholding agent. The tax withheld from each payment by the
withholding agent shall be turned over to the State Treasury and the
withholding income tax return submitted to the tax authorities within five
days.

    Income from interest on loans made to the Chinese Government or Chinese
state banks by international financial organizations shall be exempted from
income tax. Income from interest on loans made at a preferential interest rate
by foreign banks to Chinese state banks shall also be exempted from income tax.

    Foreign banks shall pay tax on their income from interest on deposits in
Chinese state banks and on loans made at a normal interest rate to Chinese
state banks. However, an exemption from income tax may be granted reciprocally
to those foreign banks in whose countries income from interest on
deposits of, and loans made by, Chinese state banks is exempt from income tax.

    Article 12  The tax authorities shall have the right to inspect the
financial, accounting and tax affairs of a foreign enterprise, and the right
to inspect the withholding of tax of a withholding agent and its payment of
the withheld tax into the State Treasury. Foreign enterprises and withholding
agents must make reports according to the facts and provide relevant
information; they may not refuse to cooperate and may not conceal the facts.

    Article 13  The income tax levied on foreign enterprises shall be computed
in terms of Renminbi (RMB). Income in foreign currency shall be taxed on the
equivalent amount converted into Renminbi according to the exchange rate
quoted by the State General Administration of Exchange Control of the People’s
Republic of China.

    Article 14  Foreign enterprises and withholding agents must pay taxes
within the prescribed time limit. In case of failure to do so, the tax
authorities, in addition to setting a new time limit for tax payment, shall
impose a surcharge for overdue payment equal to 0.5 percent the overdue tax
for every day in arrears, starting from the first day payment becomes overdue.

    Article 15  The tax authorities may, in the light of the circumstances,
impose a fine on a foreign enterprise that has violated the provisions of
Articles 8, 9, 10 or 12 of this Law.

    In dealing with a withholding agent who has violated the provisions of
Article 11 of this Law, the tax authorities may, in addition to setting a new
time limit for the payment of the amount of tax that should have been
withheld, impose a fine in the light of the circumstances, up to but not
exceeding 100 percent of the amount of tax that should have been withheld.

    In dealing with a foreign enterprise that has evaded or refused to pay
tax, the tax authorities, in addition to pursuing the tax payment, may impose
a fine of up to but not exceeding five times the amount of the tax underpaid
or not paid, in accordance with the seriousness of the case. Cases of gross
violation shall be handled by the local people’s courts in accordance with the
law.

    Article 16  In case of a dispute with the tax authorities over tax
payment, a foreign enterprise must pay tax according to the relevant
regulations before applying to higher tax authorities reconsideration. If it
does not accept the decision made after such reconsideration, it may bring a
suit in the local people’s court.

    Article 17  When agreements on tax payment have been concluded between
the Government of the People’s Republic of China and foreign governments,
matters concerning tax payment shall be handled in accordance with the
provisions of the respective agreements.

    Article 18  Rules for the implementation of this Law shall be formulated
by the Ministry of Finance of the People’s Republic of China.

    Article 19  This Law shall go into effect on January 1, 1982.






CIRCULAR OF THE STATE COUNCIL FOR APPROVING AND TRANSMITTING THE REPORT SUBMITTED BY THE STATE PLANNING COMMISSION, THE STATE IMPORT AND EXPORT COMMISSION AND OTHER DEPARTMENTS ON IMPROVING ADMINISTRATION OF FOREIGN EXCHANGE CERTIFICATES

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-06-12 Effective Date  1981-07-15  


Circular of the State Council for Approving and Transmitting the Report Submitted by the State Planning Commission, the State Import
and Export Commission and Other Departments on Improving Administration of Foreign Exchange Certificates

Circular
REPORTS ON IMPROVING THE ADMINISTRATION OF FOREIGN EXCHANGE CERTIFICATES

(June 12, 1981)

Circular

    The State Council has approved the “Report on Improving the Administration
of Foreign Exchange Certificates “submitted by the State Planning Commission,
the State Import and Export Commission and other departments and hereby
transmits it to you and requests you to organize the departments concerned for
the earnest implementation thereof.

    The work to issue foreign exchange certificates (hereinafter referred to
as FECs) has been fruitful and has been done with good intention. But owing to
lack of experience, errors and shortcoming have surfaced and new problems have
arisen. The State Council has therefore enjoined the departments concerned to
form a special group which shall undertake serious investigations and study,
widely solicit opinions, carry out repeated comparisons and analyses, and
explore ways to improve it or work out a better solution. As this work is very
complicated, its good performance or otherwise will have a direct effect on
the reputation of the country domestically and internationally. It must
therefore be treated seriously and cautiously. Therefore, before any new
solutions are available, the existing measures with respect to FECs shall
continue to be implemented. All the provinces, municipalities directly under
the Central Government, and autonomous regions must strengthen leadership over
the work and all departments concerned must give full cooperation. Great
efforts should be exerted to do a good job of the issuance of FECs, the
withdrawal of FECs from circulation, the circulation of FECs, and the
administration of FECs, as well as of the ideological education so that the
adverse effects of the unfavorable factors will be minimized.
REPORTS ON IMPROVING THE ADMINISTRATION OF FOREIGN EXCHANGE CERTIFICATES

    With a view to eliminating the circulation of foreign currencies in the
domestic market, preventing the illegal procurement of foreign exchange and
purchase of goods in short supply, and facilitating the calculation of the
percentage of foreign exchange retained by units which earn foreign exchange,
foreign exchange certificates denominated in Renminbi (hereinafter  referred
to as FECs) have been issued since April 1, 1980. As the exchange of foreign
currencies and the administration thereof is very complicated and the existing
measures have been implemented for one year and two months, in order to solve
the problem properly and satisfactorily, it is imperative to undertake
investigation and study and, on the basis of this, have it widely discussed
and repeatedly compared and analysed, so as to work out better solutions to be
submitted to the State Council for examination and approval. We are of the
opinion – and this is also the opinion shared by other departments as well as
by the four provinces or municipalities directly under the Central Government,
namely Beijing, Shanghai, Guangdong, and Fujian – that before any new and
better solutions are found, it is necessary to reaffirm the legality and
solemnity of FECs and, in the light of the existing measures, improve the
administration, stop up the loopholes, overcome the problems that have arisen
obviously as a result of poor follow-up work, and do everything possible to
minimize the adverse effects of the unfavourable factors in the circulation of
FECs. We would, therefore, like to recommend the following measures:

    1. Improving the administration with respect to FECs. We would suggest
that the people’s governments of the various provinces, municipalities
directly under the Central Government, and autonomous regions should make a
serious inspection over the work with respect to the issue of FECs, set up an
institutional framework for the regular inspection thereof, and enjoin the
relevant departments under their jurisdiction to exercise administration, to
discover problems and to deal with them promptly, in strict accordance with
the prescribed measures, i.e. , “The Interim Measures of the Bank of China
for the Administration of FECs” and other relevant provisions.

    2. Ensuring the equivalence in value of FECs to Renminbi in terms of
prices. In supplying commodities to foreigners, all units that are designated
to accept FECs, such as friendship stores, foreign trade centers, and stores
at hotels, restaurants, dining-hall, airports, train stations, and wharves,
shall price their goods according to the prices approved by the departments
for the control of commodity prices. The price thus set for a particular
item shall in principle be in line with the prevailing retail prices on the
market. Prices shall be fixed in accordance with the qualities of the goods,
i.e., higher prices for superer qualities and the same price for the same
quality. It is not allowed to reduce the sales prices without authorization
just for the purpose of obtaining more FECs. In the two provinces of Guangdong
and Fujian, which are adjacent to Hong Kong and Macao, if it is really
necessary to price some particular goods at levels lower than the prevailing
prices on the retail market, the difference in price shall not exceed 20
percent (which shall be expressed by adding on the side of the price tags the
remark “A temporary 20 percent discount”). At present in the two provinces of
Guangdong and Fujian, with respect to some goods supplied to foreigners, if
the difference in prices is relatively too great and the range of the
varieties involved is too wide, it is imperative to conduct reexamination and
exercise strict control thereon and the measure shall be subject to the
approval of the respective provincial people’s governments for their
enforcement, so as to improve the administration thereof. Stricter control
shall be exercised in other regions and the practice of having two different
prices, shall, in principle, not be permitted. Friendship stores, foreign
trade centers, foreign vessels supplying companies, and Overseas Chinese
stores should co-ordinate their business operations and do a good job of their
work in accordance with their respective business objectives. At the same
time, it is imperative to increase Customs duties for dutiable luggage and
articles carried into China by entry passengers and for some imported goods,
by adjusting the import duty rates of such articles as TV sets and recorders
so that their prices after duty shall only be slightly lower than their sales
prices in the domestic markets (the difference between them shall not exceed
20 percent.), thus ensuring the enforcement of the principle of one price, so
that profiteering in FECs will no longer be so attractive. The specific plan
for the adjustments shall be worked out by the General Administration of
Customs in conjunction with the State Import & Export Commission, the Ministry
of Finance, the Ministry of Foreign Trade, and the Office for Overseas Chinese
Affairs upon careful studies and shall be submitted to the State Council for
approval before they are issued and effected.

    3. Improving the system to withdraw FECs from circulation. People’s Banks
and Agricultural Banks in various localities shall assit the Bank of China in
handling the business operations in withdrawing FECs from circulation. All
units that have receipts in FECs shall apply to the Bank of China in their
localities or the People’s Banks or Agricultural Banks nearby for verifying
the quota of reserves in FECs to be used as small change to customers. With
the exception of this, the amount that exceeds the quota shall be treated in
the same way as cash in Renminbi and turned in to the bank on the very day of
receipt so that it will be withdrawn from circulation or deposited, and it is
not allowed to retain it or spend it. No units that are not designated to
accept FECs shall be granted any percentage of retained foreign exchange.
Individuals who possess FECs shall go to the bank to have them changed to
Renminbi and shall not be permitted to use FECs for shopping. The Bank of
China should enlarge its personnel and set up more branches for foreign
currency exchange. It may also entrust the People’s Banks, Agricultural Banks
or units which meet the required conditions for accepting FECs to set up
agencies for such exchange to convenience foreign guests and overseas
Chinese. The specific rules for the implementation of the above shall be
formulated and promulgated by the People’s Bank of China, the Bank of China
and the State Administration for Foreign Exchange Control.

    4. Limiting the scope of the use of FECs. All units that are or are not
designated to accept FECs shall act in strict accordance with the regulatory
system for the administration of FECs. Production departments and commercial
departments shall regard it as one of their important tasks to supply goods to
departments that are responsible for supplying goods to customers from abroad,
and ensure that their demands are most possibly satisfied. With respect to
commodities supplied by the supplier departments to those departments that are
responsible for supplying commodities to customers from abroad except those
commodities that are handled by foreign trade departments for export purposes
are payable by FECs, no commodities for domestic sales may be priced or
settled in FECs. No transactions in FECs or the exchange thereof, or the
payment in FECs for purchase of goods between units or departments shall be
permitted. The settlement of payment for goods priced in FECs shall be
effected through the banks. With respect to goods for domestic sales and yet
are priced in FECs, the banks shall refuse to handle the transfer of accounts
or the settlement related to the transactions thereof.

    5. Controlling the range of categories of people who may use FECs. FECs
may only be used by foreign guests, overseas Chinese, and compatriots from
Hong Kong, Macao and Taiwan who have entered the mainland of China and by
domestic residents (including seamen working on ocean-going vessels) holding a
bank certificate. Departments supplying commodities to tourists should
exercise strict control over the people to whom the commodities are supplied.
Staff members in these departments shall be strictly prohibited from taking
advantage of their positions or jobs to illegally exchange Renminbi for FECs.
Domestic residents shall be strictly prohibited from illegitimately buying up
commodities (The stipulation that, just on the strength of a letter of
introduction from the unit where one works, one may buy commodities from
stores or special counters of stores that are designated to accept FECs shall
be abolished.). With respect to certain commodities that are in short supply,
a limited quantity of purchase should be prescribed.If anyone is found to have
illegitimately bought up commodities that are in short supply, investigations
shall be made into the supply source(s) of and the persons involved shall be
dealt with in light of the seriousness of the case. (The penalties may, for
example, include compulsory exchange of FECs for Renminbi, imposition of a
fine, or confiscation of the illegitimately purchased commodities.)

    6. Improving the administration of the market. We would suggest that
administrative department for industry and commerce at all levels shall, in
full co-operation with such relevant departments as the public security
bureaus, the departments for control of commodity prices, the Customs and the
branch offices of the State Administration for foreign Exchange Control,
inspect regularly the supply prices of the stores and how FECs are being used,
resolutely ban black marketeering for FECs, and crack down on profiteering in
FECs. Offenders shall be given economic and legal sanctions (such as imposing
a fine on them, confiscating their illegal gains, suspending their
qualification to retain a certain amount of foreign exchange, or deducting a
percentage from their retained foreign exchange).

    It is proposed that the six measures mentioned above be effective as of
July 15, 1981. If they are practicable we would request your approval and
transmission thereof to all the localities and relevant departments for study
and implementation.






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...