1988

REGULATIONS ON THE QUARANTINE OF IMPORTED AND EXPORTED ANIMALS AND PLANTS

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1982-06-04 Effective Date  1982-06-04 Date of Invalidation  1992-04-01


Regulations of the People’s Republic of China on the Quarantine of Imported and Exported Animals and Plants

Chapter I  General Provisions
Chapter II  Import Quarantine
Chapter III  Export Quarantine
Chapter IV  The Quarantine of Articles Carried by Travellers
Chapter V  The Quarantine of International Mail Parcels
Chapter VI  Transit Quarantine
Chapter VII  Punishments
Chapter VIII  Supplementary Provisions

(Promulgated by the State Council on June 4, 1982) (Editor’s Note: These

Regulations have been annulled by Law of the People’s Republic of China on the
Entry and Exit Animal and Plant Quarantine promulgated on October 30, 1991)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in order to protect the
agriculture, forestry, animal husbandry and fishery of our country and the
health of our people, safeguard our reputation in foreign trade, fulfil our
international obligations, prevent diseases, insects, weeds and other harmful
organisms, which harm animals and plants, from spreading into or out of China
and strengthen the quarantine of import and export animals and plants.

    Article 2  All commercial or non-commercial animals, plants, animal
products, vegetable products and their means of transport which enter, leave
or pass through territories of the People’s Republic of China are within the
quarantine range under these Regulations, particularly including the following:

    (1) Animals: livestock, poultry, wild animals, bees, fish, silkworms, etc.

    (2) Animal products: raw hides, hair, meat, viscera, fat, blood, eggs,
semen, bones, hoofs, horns, etc.

    (3) Plants: cultivated plants, wild plants and their seeds, nursery stock,
propagating materials, etc.

    (4) Vegetable products: grains, beans, pease, cotton, oils, hemp, flax,
tobacco, kernels, dried fruits, fresh fruits, vegetables, raw medicinal
materials, logs, fodder, etc.

    (5) Vehicles, vessels and aircraft carrying animals, plants, animal
products and vegetable products as well as packing, bedding and padding
materials, breeding tools, etc.

    The other goods and means of transport which may carry the objects of
quarantine shall also be put in quarantine.

    Article 3  Animal infectious diseases and parasites, insects and weeds
which are dangerous to plants as well as other harmful organisms (generally
designated as insect vectors) shall be put in quarantine and divided into
the objects of quarantine and quarantinable insect vectors.

    (1) The objects of quarantine mean the insect vectors which are prohibited
from entering China as stipulated by the State. The list of the objects of
quarantine shall be promulgated by the Ministry of Agriculture, Animal
Husbandry and Fishery of the People’s Republic China.

    (2) Quarantinable insect vectors include those put in quarantine as
stipulated in relevant agreements and trade contracts with foreign countries
and those for which the export units have applied for quarantine.

    Article 4  The animal and plant quarantines set up in the ports and
airports of the People’s Republic of China which are open to international
navigation or air traffic as well as on land borders and border rivers, and
the animal and plant quarantine station set up in the capitals of provinces
and autonomous regions concerned (hereinafter generally referred to as port
animal and plant quarantine authorities) are the authorities concerned which
conduct quarantine duties of import and export animals and plants on behalf
of the State.

    Article 5  All animals, plants, animal products, vegetable products and
their means of transport shall be permitted to be imported or exported only
after passing the standard upheld by quarantine.
Chapter II  Import Quarantine

    Article 6  An application shall be made in advance to the Ministry of
Agriculture, Animal Husbandry and Fishery for approval to import animals
and animal products. However, an application shall be made in advance to the
Ministry of Forestry for approval where the import of wild animals and their
products are concerned.

    To import seeds, nursery stock and propagating materials, import
departments shall fill in “Examination and Approval Lists for Quarantine of
Seeds and Nursery Stock Imported” for submission. For those to be imported
by the departments concerned of the State Council, such lists shall be
submitted separately according to the professional division of work to the
Ministry of Agriculture, Animal Husbandry and Fishery or the Ministry of
Forestry respectively for examination and approval; for those to be imported
by the departments of provinces, autonomous regions and municipalities
directly under the Central Government, they shall be submitted to the
Departments (or Bureaux) of Agriculture (Forestry or State Farm and Land
Reclamation) of respective areas for examination and approval.

    Article 7  Any quarantine regulations which China stipulated or agreed
between governments should be indicated on the agreement for trade, technical
co-operation, gift, exchange or assistance for the importation of animals,
plants and their products. The said agreement shall also indicate the
necessity of the enclosure of a quarantine certificate issued by the
authorized organ of the country of export.

    Article 8  Animals, plants, animal products and vegetable products
imported shall be quarantined by port animal and plant quarantine authorities.

    (1) Before or after the arrival of goods in a port, the consignee unit or
its agent shall fill in the declaration for quarantine and submit it (or the
waybill) together with such documents as the quarantine certificate from
the export country to the port animal and plant quarantine authorities for
quarantine.

    (2) For trains or motor vehicles entering the territory, the port animal
and plant quarantine authorities shall carry out quarantine duties and
inspection aboard the train or vehicle together with the border authorities
concerned; for incoming vessels, quarantine duties shall be carried out on
board after the joint inspection; for incoming aircraft, quarantine shall be
implemented on the spot where goods are unloaded.

    Article 9  A “Quarantine Clearance Notice” shall be signed and issued
for all animals, plants, animal products or vegetable products imported in
which no objects of quarantine or quarantinable insect vectors are found
through quarantine, or such clearance shall be stamped on the waybill so as
to permit them to be imported.

    Article 10  For all imported animals or animal products in which the
objects of quarantine and quarantinable insect vectors are found through
quarantine, a “Quarantine Disposal Notice” shall be signed and issued
according to different circumstances and the declarer(s) shall be notified to
dispose of them separately in the following ways:

    (1) The animal(s) which has(have) contracted a serious infectious
disease, and all others in the same flock shall be wholly returned or killed
and its (their) remains shall be destroyed.

    (2) The animal(s) which has(have) contracted a general infectious
disease shall be returned or killed and its (their) remains shall be
destroyed; the other animals in the same flock shall be isolated and put
under observation in the animal quarantine isolation yard or a designated
place.

    (3) The animal(s) which has(have) contracted a non-infectious disease
shall be treated medically.

    (4) Animal products shall be sterilized, returned or destroyed.

    If the animals which are isolated and observed as mentioned in Item (2)
above and which are treated as mentioned in Item (3) do not have any disease
found through quarantine, and if the animal products as mentioned in Item
(4) passed the examination of quarantine after sterilization, they shall be
allowed to be imported.

    Article 11  For the imported plants or vegetable products in which the
objects of quarantine and quarantinable insect vectors are found through
quarantine, a “Quarantine Disposal Notice” shall be signed and issued
according to different circumstances and the declarer(s) shall be notified
to dispose of the same separately in ways such as fumigation, sterilization,
controlled use, return or destruction. They shall be allowed to be imported
if they passed the examinations after such neutralizing treatments as
fumigation, sterilization, etc..

    Article 12  The quarantine and disposition of imported animals, plants,
animal products and vegetable products shall be carried out in the ports of
import.

    Applications shall be made to the Ministry of Agriculture, Animal
Husbandry and Fishery for approval if they shall be transported to a designated
inland place for disposition due to the limitation of the conditions in the
port or other causes. In the course of transportation and handling, strict
measures shall be adopted to prevent the epidemic situation from proliferating
and a notice shall be given to the local quarantine department for
supervision.

    Article 13  The declarer(s) or consignee unit shall deal with the places,
warehouses, means of transport, bedding and padding materials, breeding
tools, etc. which are contaminated by the objects of quarantine or
quarantinable insect vectors as required by the port animal and plant
quarantine authorities.

    Article 14  If any object of quarantine or quarantinable insect vector
is found in imported animals, plants, animal products or vegetable products
through quarantine, the port animal and plant quarantine authorities shall
issue quarantine certificates according to different circumstances.

    Article 15  The following shall be prohibited from import:

    (1) daily injurious insects, animal or plant pathogenic micro-organisms
(including cultures of bacteria, cultures of viruses, biological products) and
other harmful organisms;

    (2) the animals, seeds, nursery stock and propagating materials relating
to a country or area in a serious epidemic situation as well as susceptible
animal products and vegetable products;

    (3) soil.

    The list of the aforesaid which are prohibited from import shall be
publicly announced by the Ministry of Agriculture, Animal Husbandry and
Fishery. If it is necessary, to import any of them for scientific research, an
application shall be made in advance for the special approval by the Ministry
of Agriculture, Animal Husbandry and Fishery.
Chapter III  Export Quarantine

    Article 16  If animals, plants, vegetable products or non-commercial
animal products to be exported are required to be quarantined, the export
unit or its agent shall file a declaration for quarantine in advance, submit
the quarantine certificate from the place of production and declare the same
at the port animal and plant quarantine authorities for quarantine.

    They shall be cleared by a quarantine certificate signed and issued by
the authorities concerned after passing the requisite examination.

    The export quarantine of commercial animal products shall be handled by
the import and export commodity inspection authorities.

    Article 17  The animals, plants, animal products or vegetable products in
which quarantinable insect vectors are found through quarantine shall be
prohibited from export or shall go through neutralizing treatments before
export.

    Article 18  The contaminated areas, warehouses, means of transport,
bedding and padding materials, breeding tools, etc. shall be dealt with as
stipulated in Article 13 of these Regulations.
Chapter IV  The Quarantine of Articles Carried by Travellers

    Article 19  The animals, plants, animal products or vegetable products
carried or consigned by the travellers or communications staff entering the
territory shall be put in quarantine on the spot in port. They shall be
cleared if no objects of quarantine are found through quarantine; those in
which the objects of quarantine are found shall be prohibited from entering
the territory or released only after sterilization. If no quarantine results
can be obtained on the spot, such articles shall be kept in custody pending
further quarantine and the owner shall be informed of the final disposition
of the articles after the quarantine results are obtained.

    Article 20  The raw meat carried or consigned by the travellers or
communications staff shall go through epidemic prevention check before being
permitted to enter the territory.

    Article 21  The animals, plants, animal products or vegetable products
carried or consigned by the travellers or communications staff leaving the
territory shall be put in quarantine with clearance certificates granted in
accordance with the circumstances.
Chapter V  The Quarantine of International Mail Parcels

    Article 22  The plants and vegetable products mailed into the territory
shall be quarantined by the port animal and plant quarantine authorities. A
parcel without and objects of quarantine found through quarantine shall be
cleared by putting a mailing clearance stamp on the parcel. A “Quarantine
Disposal Notice” shall be signed and issued after the quarantine of a parcel
in which the objects of quarantine are found and sent together with the parcel
to the addresses by post. A parcel failing to go through quarantine shall be
returned with a return-label to the sender by post. A “Quarantine Disposal
Notice” shall be signed and issued for a parcel to be destroyed and the
notice shall be sent to the sender by post. Raw animal products shall be
prohibited from entering the territory by post (a small quantity of sample
excepted).

    Article 23  The plants, animal products or vegetable products mailed out
of the territory shall be put in quarantine with clearance certificates
granted according to circumstances.

    Article 24  Permits shall be signed and issued by the Ministry of
Agriculture, Animal Husbandry and Fishery for the importation of daily harmful
injurious insects, animal or plant pathogenic micro-organisms (including the
cultures of bacteria, the cultures of viruses, biological products) and other
harmful organisms as well as the natural enemies of diseases and insect pests.
Chapter VI  Transit Quarantine

    Article 25  For the animals, plants, animal products or vegetable
products in transit through the territory, the carrier shall file a
declaration or a waybill for quarantine and declare them at the port animal
and plant quarantine authorities for quarantine at the port of entry. This
shall be presented together with the quarantine certificate from the country
of origin. They shall not be quarantined again at the port of exit.

    Article 26  If the plants, animal products or vegetable products carried
by a train, truck or aircraft through the territory change means of transport
in one of China’s ports, the exteriors of their packages shall be examined;
if they pass through the territory in the original vehicle, the exterior of
the vehicle shall be examined. If no objects of quarantine are found through
quarantine, a “Quarantine Clearance Notice” shall be signed and issued or a
quarantine clearance stamp shall be affixed on the waybill so as to permit
them to go through. If any objects of quarantine are found, the articles
shall be wholly returned. The contaminated places, tools, etc. shall be dealt
with as stipulated under Article 13 of these Regulations.

    Article 27  If animals in transit have no objects of quarantine found
through quarantine, they shall be permitted to pass through the territory, if
any objects of quarantine are found in them, they shall be wholly returned.
The contaminated places, tools, etc. shall be dealt with as stipulated under
Article 13 of these Regulations.

    The fodder, excrement, urine, padding grass, dirt, remains, etc. of the
animals in transit shall be treated in designated places and shall not be
cast away indiscriminately.

    If any objects of quarantine are found in the fodder of the animals in
transit, the carrier shall be notified to replace the fodder and the original
fodder shall be sterilized on the spot.
Chapter VII  Punishments

    Article 28  Those found in violation of these Regulations shall be
criticized, disciplined or fined according to different circumstances. For
serious cases, punishments shall be given by judicial authorities according
to law.
Chapter VIII  Supplementary Provisions

    Article 29  The units concerned shall render necessary assistance to the
port animal and plant quarantine authorities when they are executing their
duties in ports, airports, stations, post offices, warehouses, etc.

    When the port animal and plant quarantine authorities execute field
quarantine, the declarer(s) shall be present, when necessary, to render such
assistance as moving, opening and repacking packages, etc.

    A certificate for sampling shall be issued if the port animal and plant
quarantine authorities take samples.

    Article 30  The departments in charge shall notify the port animal and
plant quarantine authorities concerned in time of the quarantine clauses in
any agreements or trade contracts entered into and signed with foreign
countries.

    Article 31  When port animal and plant quarantine officers are on
quarantine duties, they shall wear quarantine uniform and insignia.

    Article 32  The port animal and plant quarantine authorities may collect
quarantine fees in the execution of quarantine and the procedures for such
collection shall be formulated by the Ministry of Agriculture, Animal
Husbandry and Fishery.

    Article 33  The rules for the implementation of these Regulations shall
be formulated by the Ministry of Agriculture, Animal Husbandry and Fishery
jointly with the Ministry of Forestry.

    Article 34  These Regulations shall be put into effect as of the date of
promulgation.






ANNOUNCEMENT OF THE STATE COUNCIL ON TAXATION OF JOINT VENTURES AND COOPERATIVE OPERATIONS WITH CHINESE-FOREIGN INVESTMENT

RULES FOR THE IMPLEMENTATION OF THE INCOME TAX LAW FOR FOREIGN ENTERPRISES

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1982-02-21 Effective Date  1982-01-01 Date of Invalidation  1991-07-01


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



(Approved by the State Council on February 17, 1982, promulgated by the

Ministry of Finance on February 21, 1982) (Editor’s Note: These Rules have
been annulled by Rules for the Implementation of the Income Tax Law of the
People’s Republic of China for Enterprises with Foreign Investment and Foreign
Enterprises promulgated on June 30, 1991 and effective as of July 1, 1991)

    Article 1  These Rules are formulated in accordance with the provisions
of Article 18 of the Income Tax Law of the People’s Republic of China for
Foreign Enterprises (hereinafter referred to as the Tax Law).

    Article 2  “Establishments” mentioned in Article 1 of the Tax Law mean
offices, premises or business agents established by foreign enterprises
within China for production and business operations.

    Offices and premises mentioned in the preceding paragraph mainly include
administrative offices, branches, representative offices, factories and places
for the exploitation of natural resources as well as places for contracted
projects of building, installation, assembly, exploration and other such
projects.

    Article 3  Foreign enterprises and Chinese enterprises involved in
cooperative production or cooperative operations shall, except as otherwise
provided, pay their income taxes respectively.

    Article 4  “Income derived from production and business operations”
mentioned in Article 1 of the Tax Law means income derived from the production
and business operations by foreign enterprises in the fields of industry,
mining, communications, transportation, agriculture, forestry, animal
husbandry, fisheries, poultry farming, commerce, service trades and other
fields of production and business.

    “Other income” mentioned in Article 1 of the Tax Law means income from
dividends and interest; income from leasing or sales of property; income from
transfer of patent rights, proprietary technology, trademark rights,
copyrights and other such property; and other non-operating income.

    Article 5  “Taxable income for the purpose of the imposition of the
local income tax” mentioned in Article 4 of the Tax Law shall have the same
meaning as “taxable income” mentioned in Article 3 of the Tax Law, i.e. it is
calculated according to the formulas listed in Article 9 of these Rules.

    Article 6  “Foreign enterprises with small-scale production and low
profits” mentioned in Paragraph 2 of Article 4 of the Tax Law means foreign
enterprises with an annual income of one million yuan or less.

    Article 7  Foreign enterprises with low rate of profit as mentioned in
Article 5 of the Tax Law include foreign enterprises exploiting deep-mine coal
resources with low rate of profit.

    Article 8  The tax year for foreign enterprises means each year of the
Gregorian calendar commencing on January 1 and ending on December 31.

    A foreign enterprise which has difficulty in determining its tax liability
on the basis of the tax year stipulated in the preceding paragraph may submit
an application to, and upon approval by the local tax authorities, use the
12-month accounting year of the enterprise to determine its tax liability.

    Article 9  The taxable income shall be calculated according to the
following formulas:

    a. Industry:

    1. manufacturing cost for the period = direct materials consumed in
production for the period + direct labor + manufacturing expenses;

    2. cost of the products manufactured for the period = manufacturing cost
for the period + inventory of semi-finished products and products in process
at the beginning of the period – inventory of semi-finished  and products in
process at the end of the period;

    3. cost of products sold = cost of the products manufactured for the
period + inventory of the products at the beginning of the period – inventory
of the products at the end the period;

    4. net sales = gross sales – (sales returns + sales discounts and
allowances);

    5. profit on sales = net sales – cost of products sold – tax on the sales
– (selling expenses + overhead expenses);

    6. taxable income = profit on sales + profit from other operations +
non-operating income – non-operating expenses.

    b. Commerce:

    1. net sales = gross sales – (sales returns + sales discounts and
allowances);

    2. cost of sales = inventory of merchandise at the beginning of the
period + [purchases of merchandise during the period – (purchase returns +
purchase discounts and allowances) + purchase expenses] – inventory of
merchandise at the end of the period;

    3. profit on sales = net sales – cost of sales – tax on sales – (selling
expenses + overhead expenses);

    4. taxable income = profit on sales + profit from other operation +
non-operating income – non-operating expenses.

    c. Service trades:

    1. net business income = gross business income – (tax on business income
+ operating expenses + overhead expenses);

    2. taxable income = net business income + non-operating income –
non-operating, expenses.

    d. Other lines of business: calculation shall be made with reference to
the above formulas.

    Article 10  The following items shall not be itemized as costs, expenses
or losses in the calculation the taxable income:

    1. expenditures related to the acquisition or construction of machinery,
equipment, building facilities and other fixed assets;

    2. expenditures related to the acquisition of intangible assets;

    3. interest on equity capital;

    4. income tax payments and local income tax payments;

    5. fines for illegal business operations and losses caused by the
confiscation of property;

    6. penalties for the overdue tax payment of taxes and tax fines;

    7. the portion of losses caused by windstorms, floods, fires and other
such disasters which is compensated by insurance proceeds;

    8. donations and contributions other than those used in China for public
welfare and relief purposes;

    9. royalties paid to the head offices; and

    10. other expenses not related to production and business operations.

    Article 11  Reasonable overhead expenses paid by a foreign enterprise to
its head office in connection with the production or business operation of
the enterprise and actual expenses paid to its head office incurred as a
result of services directly provided by the head office, may be itemized as
expenses, subject to examination and approval by the tax authorities of the
locality of the enterprise, provided that certificates, invoices and vouchers,
together with a financial report certified by a certified public accountant,
are supplied by the head office.

    Where an agreement regarding the allocation of the overhead expenses of
the head office exists between a foreign enterprise and a Chinese enterprise
in a contract for cooperative production or cooperative business operations
payments of such expenses may, subject to examination and approval by the
local tax authorities, be itemized as expenses according to the methods
specified in the contract.

    Article 12  A foreign enterprise paying interest on loans shall submit to
the local tax authorities for examination certificates as to the amount of
interest paid, where such loans are consistent with general commercial
practise, a reasonable amount of interest shall be allowed as itemized
expenses.

    Article 13  Reasonable entertainment expenses paid by foreign enterprises
that are related to production and business operations shall, when supported
by authentic records or invoices and vouchers, be allowed respectively as
itemized expenses subject to the following limits:

    1. where annual net sales are 15 million yuan or less, the entertainment
expenses shall not exceed 3 millesimal; where annual net sales exceed 15
million, the entertainment expenses for that portion exceeded shall not exceed
1 millesimal;

    2. where annual gross business income is 5 million yuan or less, the
entertainment expenses shall not exceed 10 millesimal of the gross business
income; where annual gross business income exceeds 5 million yuan, the
expenses for that portion exceeded shall not exceed 3 millesimal.

    Article 14  The depreciation of fixed assets which are already used by
foreign enterprises shall be calculated on an annual basis. Fixed assets mean
houses, buildings, machinery, mechanical apparatuses, means of transport and
other equipment related to production or business operations which has a
useful life of one year or more. Articles not in the nature of major equipment
which are used for production or business operations, and which have a unit
value of 500 yuan or less and a relatively short useful life may be itemized
as expenses on the basis of actual consumption.

    Article 15  The valuation of fixed assets shall be based on the original
value.

    The original value of fixed assets regarded as investment in cooperative
production or cooperative business operations between a foreign enterprise and
a Chinese enterprise shall be the price agreed upon by the parties to the
cooperation.

    The original value of the purchased fixed assets shall be the purchase
price plus transportation expenses, installation expenses and other related
expenses incurred prior to the use of the assets.

    The original value of self-made and self-built fixed assets shall be the
actual expenses incurred on their manufacture or construction.

    Imported fixed assets which are owned and have already been used by a
foreign enterprise shall be revalued according to their condition with
reference to certification provided by the foreign enterprise as to the
original value of the assets and the number of years the assets have been in
use, together with relevant market price information. Where certification
cannot be provided, the enterprise shall carry out the valuation according to
the condition of the assets and submit the valuation to the local tax
authorities for verification.

    Article 16  The depreciation of fixed assets shall be calculated
commencing from the month in which they are put to use. The calculation of
depreciation shall cease in the month following the month in which the fixed
assets cease to be used during the year.

    For enterprises engaged in exploiting off-shore petroleum resources, all
investments at the stage of development shall, taking the oil (gas) field as a
unit, be aggregated and treated as capital expenditure; the computation of
depreciation shall begin in the month in which the oil (gas) field commences
commercial production.

    Article 17  In calculating depreciation of fixed assets, the salvage value
shall be estimated and deducted from the original value; in principle, the
salvage value should be 10% of the original value. In the case of fixed assets
for which it is necessary to retain a lower or no salvage value, the matter
shall be reported to the local tax authorities for approval; if the
depreciation is calculated in accordance with a composite life method, salvage
value may not be retained.

    Depreciation of fixed assets shall generally be calculated using the
straight-line method of depreciation.

    Article 18  In the calculation of depreciation, useful life of the various
categories of fixed assets shall be as follows:

    1. for houses and buildings, the minimum useful life shall be 20 years;

    2. for railway rolling stock, boats and ships, machinery and other
production equipment, the minimum useful life shall be 10 years; and

    3. for electronic equipment, means of transport other than railway rolling
stock and boats and ships, fixtures, tools, furnishings and other assets’
related to production and business operations, the minimum useful life shall
be 5 years.

    Where, for special reasons, a foreign enterprise needs to accelerate
depreciation or change the method of depreciation, an application may be
submitted to the local tax authorities for examination and then transmitted
level by level to the Ministry of Finance for approval. In respect of fixed
assets that are regarded as investments made during and after the development
stage by an enterprise engaged in the exploitation of off-shore oil resources,
depreciation may be calculated on a consolidated composite basis. The
depreciation period shall not be less than 6 years.

    For enterprises engaged in exploiting coal resources, the provisions of
the preceding paragraph may be applied.

    Article 19  Expenditure on expansion, replacement, reconstruction and
technical innovation which result in an increase in the value and the
extension of the useful life of fixed assets already in use shall be treated
as capital expenditure, and shall not be itemized as expenses.

    For the fixed assets remaining in use after having been fully depreciated,
no further depreciation shall be allowed.

    Article 20  The balance of the proceeds from the transfer or disposal of
fixed assets at the current prices shall, after deduction of the undepreciated
amount or the salvage value, be entered into the profit and loss account for
the current year.

    Article 21  Intangible assets such as patent rights, proprietary
technology, trademark rights, copyrights, rights to use sites and other
special rights transferred to a foreign enterprise shall be amortized on the
basis of reasonable cost commencing from the month they are first put in use.

    Intangible assets mentioned in the preceding paragraph regarded as
investments in cooperative production or cooperative business operations
between a foreign enterprise and a Chinese enterprise may be amortized on the
basis of the amount prescribed in the agreement or contracts, commencing from
the month they are first put in use.

    Intangible assets mentioned in the preceding two paragraphs for which a
period of use is specified at the time of transfer or investment may be
amortized in accordance with the specified period; the period of amortization
for assets for which no period of use is specified shall not be less than
10 years.

    Article 22  Expenses incurred during the period or organization of a
foreign enterprise shall be amortized upon the commencement of production or
operation. The period of amortization shall not be less than 5 years.

    Reasonable exploration expenses incurred by a foreign enterprise engaged
in the exploitation of off-shore petroleum resources may be amortized against
income from the oil (or gas) fields that have already commenced commercial
production. The amortization period shall not be less than 1 year.

    Article 23  Inventory of merchandise, raw materials, products in process
of production, semi-finished products, finished products and by-products shall
be valued at cost. The enterprises may choose one of the following methods of
calculation: first-in first-out; moving average; or weighted average. Where a
change in the method of calculation is necessary, the matter shall be reported
to the local tax authorities for approval.

    Article 24  Where a foreign enterprise cannot authenticate its costs and
expenses and cannot accurately determine its taxable income, the local tax
authorities shall appraise and determine its profit rate with reference to the
prevailing profit levels in the same or similar lines of business, and then
calculate its taxable income on the basis of its net sales or its gross
business income.

    The taxable income of a foreign enterprise engaged in contracted projects
for the exploration or development of off-shore petroleum resources shall be
calculated according to the profit rate appraised and determined on the basis
of its gross income derived from the contracted project.

    Article 25  For foreign airlines or ocean shipping enterprises engaged in
international transport business, the taxable income shall be 5% of their
gross income derived from transport services for passengers and/or cargoes
loaded in China.

    Article 26  A foreign enterprise engaged in cooperative production with a
Chinese enterprise under a product-sharing arrangement shall be deemed to
receive income at the time products are allocated; the amount of income
received shall be computed on the basis of the sales price to the third party
or with reference to the prevailing, market price at the time allocation.

    A foreign enterprise engaged in the cooperative exploitation of off-shore
petroleum resources shall be deemed to receive income at the time the crude
oil is divided; the amount of income received shall be computed on the basis
of a price which is adjusted periodically with reference to the international
market price for crude oil of similar quality.

    Article 27  “Dividends, interest, rentals, royalties and other income with
a source in China” mentioned in Article 11 of the Tax Law, shall be construed
as follows:

    “dividends” means dividends or profits in respect of shares received from
enterprises in China;

    “interest” means interest on deposits or loans, interest on all types of
bonds and debentures, interest on amounts advanced, overdue payments and
similar items or interest received from sources within China;

    “rentals” means rentals received from the leasing of property to a lessee
in China:

    “royalties” means income received from the assignment of patent rights,
proprietary technology, copyrights, trademark rights and other such property
for use in China;

    “other income” means income other than the preceding categories of income
which the Ministry of Finance determines to be subject to tax.

    Article 28  The amount of tax to be paid on dividends, interest, rentals,
royalties and other income with a source in China as mentioned in the
preceding Article shall, except as otherwise provided, be computed on the
basis of gross income; the unit making the payment shall withhold the tax from
each payment.

    Article 29  “International financial organizations” mentioned in Article
11 of the Tax Law means financial institutions under the aegis of the United
Nations such as the International Monetary Fund, the World Bank, the
International Development Association, the International Fund for Agricultural
Development; “preferential interest” mentioned means a rate at least 10% lower
than the average rate on the international financial markets.

    Article 30  “China’s state banks” mentioned in Article 11 of the Tax Law
include the people’s Bank of China, the Bank of China, the Agricultural Bank
of China, the People’s Construction Bank of China, the Investment Bank of
China, and international trust and investment corporations that are approved
by the State Council to conduct foreign exchange deposit, loan and credit
business with foreign clients.

    Article 31  “Income from interest on deposits”, mentioned in Paragraph 4
of Article 11 of the Tax Law shall not include the interest received by
foreign banks on deposits with China’s state banks at a rate lower than the
rate on the international financial markets. Income received from interest on
deposits at a rate lower than the rate on the international financial markets
shall be exempted from income tax.

    Article 32  “Amount of payment” mentioned in Article 11 of the Tax Law
includes payments in cash, payments by remittance, payments through transfer
accounts, as well as payments made in marketable securities or in kind which
are rendered into equivalent amounts of money.

    Article 33  Income tax to be paid in advance in quarterly instalments as
stipulated in Article 7 of the Tax Law may be calculated on the basis of the
actual quarterly profit, or on the basis of one quarter of either the current
year’s planned annual profit or the actual income in the preceding year.

    Article 34  Income tax on a foreign enterprise which is in operation for
less than one year shall be calculated and paid on the basis of actual income
derived during the period of the operation according to the tax rates
prescribed by the Tax Law.

    Article 35  A foreign enterprise which commences operations or ceases
operations shall complete tax registration procedures with the local tax
authorities within 30 days after commencement of operations, or within 30 days
before the termination of the operations, respectively, in accordance with the
provisions of Article 10 of the Tax Law.

    Article 36  A foreign enterprise shall, whether realizing profits or
losses in a tax year, file its income tax returns and final accounting
statements with the local tax authorities within the prescribed period and,
except as otherwise stipulated, shall also include an audit statement of
certified public accountants registered in the People’s Republic of China.

    Article 37  In case of failure to submit the tax returns within the
prescribed time limit owing to special reasons, the foreign enterprise shall
submit an application to the local tax authorities within the said time limit,
and the time limit for filing tax returns and accordingly that for final
settlement may be appropriately extended upon file latter’s approval.

    The final day of the time limit for tax payment and that for filing tax
returns may be postponed to the next business day if it falls on a public
holiday.

    Article 38  In principle, foreign enterprises shall use the accrual
method of accounting to calculate their income and expenses. All accounting
records shall be accurate, complete and supported by valid vouchers as the
basis for entries.

    Article 39  Accounting vouchers, books, statements and reports adopted by
foreign enterprises shall be kept in the Chinese language, or in both Chinese
and a foreign language.

    Accounting vouchers, books, statements and reports shall be retained for
at least 15 years.

    Article 40  Forms of sales invoices and business receipts used by a
foreign enterprise shall be submitted to the local tax authorities for
approval prior to use.

    Article 41  Officials assigned by the tax authorities to conduct
investigations of the financial, accounting and tax affairs of a foreign
enterprise shall produce identification cards and undertake to maintain
confidentiality.

    Article 42  Income earned by a foreign enterprise in foreign currencies
shall, for the purpose of advance quarterly payments of tax, be converted into
Renminbi according to the foreign exchange rate quoted by the State General
Administration of Exchange Control on the day when the receipt for payment of
tax is issued; for the purpose of the additional tax payable or the tax
refundable on final settlement at the year-end, the income in foreign
currencies shall be converted into Renminbi according to the foreign exchange
rate quoted by the State General Administration of Exchange Control on the
last day of the tax year.

    Article 43  The Tax authorities may, according to the seriousness of the
case, impose a fine of 5,000 yuan or less on a foreign enterprise which
violates the provisions of Article 8, Paragraph 1 of Article 9, Article 10 or
Article 12 of the Tax Law.

    Article 44  The tax authorities may, according to the seriousness of the
case, impose a fine of 5,000 yuan or less on a foreign enterprise which
violates the provisions of Paragraph 2 of Article 39 and Article 4O of these
Rules.

    Article 45  The evasion of or refusal to pay tax mentioned in Paragraph
3 of Article 15 of the Tax Law shall be construed as follows:

    “Tax evasion” means the illegal actions of a taxpayer who has
intentionally violated the provisions of the Tax Law by such means as
falsifying, altering or destorying account books, receipts or accounting
vouchers; falsely itemizing or overstating costs and expenses; concealing or
understanding taxable income or receipts; or avoiding taxes or fraudulently
recovering taxes already paid.

    “Refuse to pay tax” means the illegal actions of a taxpayer who has
violated the provisions of the Tax Law by such means as refusing to file
tax returns or to provide documentation of tax payment, invoices or vouchers;
refusing to agree to investigations by the tax authorities of its financial,
accounting and tax affairs; or refusing to pay tax or fines in accordance
with the law.

    Article 46  Notice of disposal of a violation shall be served in those
cases in which the tax authorities impose a fine in accordance with the
provisions of the Tax Law and these Rules.

    Article 47  When a foreign enterprise applies for reconsideration of a
case in accordance with the provisions of Article 16 of the Tax Law, the tax
authorities concerned shall decide upon the disposal of the case within 3
months after receipt of the application.

    Article 48  Standardized income tax returns and tax payment receipts to
be used by foreign enterprises shall be printed by the General Taxation
Bureau of the Ministry of Finance of the People’s Republic of China.

    Article 49  The right to interpret these Rules shall reside with the
Ministry of Finance of the People’s Republic of China.

    Article 50  These Rules shall become effective on the same date of
promulgation and effective date of the Income Tax Law of the People’s Republic
of China for Foreign Enterprises.






CIRCULAR ON TAXATION OF CHINESE-FOREIGN EQUITY JOINT VENTURES AND CONTRACTUAL JOINT VENTURES

The State Council

Circular on Taxation of Chinese-foreign Equity Joint Ventures and Contractual Joint Ventures

the State Council

September 21, 1982

On September 10, 1980, the National People’s Congress promulgated “The Income Tax Law on Chinese-foreign Equity Joint Ventures” and
” The Individual Income Tax Law”; and later on December 13, 1981, it also issued “The Income Tax Law on Foreign Enterprises”. Before
the promulgation of these laws, some localities, departments and enterprises, on the approval by the competent authorities of the
state, had signed contracts of joint ventures and cooperative operations with foreign and Hongkong businessmen, some of which included
the provisions for the payment of taxes. The State Administration of Taxation and the Ministry of Finance has laid down that the
question of tax payment should be carried out according to the original provisions in the contracts. But as things are, there still
remain some disputes and arguments on this point. In order to implement the policy correctly, the following Circular is made:

(1)

Before the promulgation of “The Income Tax Law on Chinese-foreign Equity Joint Ventures” and “The Income Tax Law on Foreign Enterprises”,
any contract signed with the approval of the competent authorities of the state, with foreign and Hongkong firms for joint ventures
and cooperative operations which provides a preferential treatment of income tax payment on their enterprises, and which states clearly
that the import goods necessary for the projects will be given a preferential treatment of taxation should be carried out according
to the original provisions.

(2)

Provisions on preferential treatment of taxation given to foreign and Hongkong businessmen for their income derived from their permission
to use their patent and copyrights should also be carried out according to the original contracts.

(3)

Before “The Individual Income Tax Law” was promulgated, provided it has been approved by the competent authorities of the state, any
preferential treatment of income tax given to an individual should also be carried out according to the original provisions as stipulated
in the contracts.

The above three points should continue until the original contracts expire. If the contracts are extended, tax should be paid according
to the regulations of “The Income Tax Law on Chinese-foreign Equity Joint Ventures”. “The Income Tax Law on Foreign Enterprises”
and “The Individual Income Tax Law”. All financial and tax departments should act accordingly; any question raised in the enforcement
should be clarified by the Ministry of Finance.



 
The State Council
1982-09-21

 







THE INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING FOREIGN ENTERPRISES

DETAILED RULES FOR THE IMPLEMENTATION OF CUSTOMS SUPERVISION AND CONTROL AND TAXATION ON IMPORT AND EXPORT GOODS BY ENTERPRISES

TRADEMARK LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  With An Amendment Existing
Date of Promulgation  1982-08-23 Effective Date  1983-03-01  


Trademark Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Application for Trademark Registration
Chapter III  Examination and Approval of Trademark Registration
Chapter IV  Renewal, Assignment and Licensing of Registered Trademarks
Chapter V  Determination of Disputes Concerning Registered Trademarks
Chapter VI  Administrative Control of the Use of Trademarks
Chapter VIII  Supplementary Provisions

(Adopted at the 24th Meeting of the Standing Committee of the Fifth

National People’s Congress and promulgated by Order No. 10 of the Standing
Committee of the National People’s Congress on August 23, 1982, and
effective as of March 1, 1983) (Editor’s Note: For the revised text, see
Decision of the Standing Committee of the National People’s Congress on
Revision the Trademark Law of the People’s Republic of China promulgated
on February 22, 1993)
Contents

    Chapter I    General Provisions

    Chapter II   Application for Trademark Registration

    Chapter III  Examination and Approval of Trademark Registration

    Chapter IV   Renewal, Assignment and Licensing of Registered Trademarks

    Chapter V    Determination of Disputes Concerning Registered Trademarks

    Chapter VI   Administrative Control of the Use of Trademarks

    Chapter VII  Protection of the Right to Exclusive Use of a Registered
Trademark

    Chapter VIII Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated for the purpose of improving the
administration of trademarks, protecting the right to exclusive use of
trademarks and encouraging producers to guarantee the quality of their goods
and maintain the reputation of their trademarks, so as to protect the
interests of consumers and promote the development of the socialist commodity
economy.

    Article 2  The Trademark Office of the administrative department for
industry and commerce under the State Council shall be in charge of the work
of trademark registration and administration throughout the country.

    Article 3  Registered trademarks are those that have been approved and
registered by the Trademark Office. Trademark registrants shall enjoy the
right to exclusive use of their trademarks and shall be protected by law.

    Article 4  Any enterprise, institution or self-employed industrialist or
businessman that needs to acquire the right to exclusive use of a trademark
for the goods it produces, manufactures, processes, selects or markets shall
file an application for registration with the Trademark Office.

    Article 5  With respect to goods that the state has designated as
requiring the use of a registered trademark, an application for trademark
registration must be filed; the goods may not be sold on the market before
registration is granted.

    Article 6  The user of a trademark shall be responsible for the quality
of the goods on which the trademark is used. The administrative departments
for industry and commerce at all levels shall, by means of trademark
administration, exercise supervision over the quality of goods and stop any
practices that deceive consumers.

    Article 7  Any word or design, or combination thereof, used as a
trademark, shall have distinctive characteristics so as to facilitate
identification. Wherever a registered trademark is used, it shall bear the
words “Registered trademark” or a sign indicating that it is registered.

    Article 8  The following words or designs may not be used in trademarks:

    (1) those identical with or similar to the national name, national flag,
national emblem, military flag or medals of the People’s Republic of China;

    (2) those identical with or similar to the national name, national flag,
national emblem or military flag of any foreign country;

    (3) those identical with or similar to the flag, emblem or name of any
intergovernmental international organization;

    (4) those identical with or similar to the symbol or name of the Red
Cross or the Red Crescent;

    (5) the generic name or design of the goods concerned;

    (6) those directly indicating the quality, main raw materials, function,
use, weight, quantity or other characteristics of the goods concerned;

    (7) those having the nature of discrimination against any nationality;

    (8) those constituting exaggerated and deceitful advertising; and

    (9) those detrimental to socialist morality or customs, or having other
harmful influences.

    Article 9  Where a foreigner or foreign enterprise applies for trademark
registration in China, the matter shall be handled in accordance with any
agreement concluded between the country to which the applicant belongs and
the People’s Republic of China, or any international treaty to which both
countries are parties, or on the basis of the principle of reciprocity.

    Article 10  Where a foreigner or foreign enterprise applies for trademark
registration or deals with other trademark matters in China, it shall
entrust an organization designated by the Chinese Government to act on its
behalf.
Chapter II  Application for Trademark Registration

    Article 11  An applicant for trademark registration shall report, in
accordance with the prescribed classification of goods, the class of the goods
and the designation of the goods on which the trademark is to be used.

    Article 12  If an applicant intends to use the same trademark on goods
in different classes, it shall submit separate applications for registration
in accordance with the classification of goods.

    Article 13  If a registered trademark needs to be used on other goods of
the same class, a new application for registration shall be filed.

    Article 14  If any word or design of a registered trademark needs to be
changed, a new application for registration shall be filed.

    Article 15  If a change needs to be made in the name, address or any other
registered matter concerning the registrant of a registered trademark, an
application to make the change shall be filed.
Chapter III  Examination and Approval of Trademark Registration

    Article 16  When an application has been made to register a trademark that
is in conformity with the relevant provisions of this Law, the Trademark Office
shall make a preliminary examination and approval of that trademark and shall
publicly announce it.

    Article 17  If an application has been made to register a trademark that
is not in conformity with the relevant provisions of this Law or that is
identical with or similar to another person’s trademark which has already been
registered or given preliminary examination and approval for use on the same
kind of goods or similar goods, the Trademark Office shall reject the current
application and shall not publicly, announce that trademark.

    Article 18  If two or more applicants apply for registration of identical
or similar trademarks for the same kind of goods or similar goods, the
trademark whose registration was first applied for shall be given preliminary
examination and approval and shall be publicly announced; if the applications
are filed on the same day, the trademark which was first used shall be given
preliminary examination and approval and shall be publicly announced, and the
applications of the others shall be rejected and shall not be publicly
announced.

    Article 19  Any person may file on opposition to a trademark which has
been given preliminary examination and approval, within three months from the
day it was publicly announced. If no opposition is filed, or if it is
determined that the opposition is not justified, registration shall be
granted, a trademark registration certificate shall be issued and the
trademark shall be publicly announced. If it is determined that the opposition
is justified, no registration shall be granted.

    Article 20  The administrative department for industry and commerce under
the State Council shall establish a Trademark Review and Adjudication Board to
be responsible for handling trademark disputes.

    Article 21  When an application for trademark registration has been
rejected and the trademark is not to be publicly announced, the Trademark
Office shall notify the applicant in writing. If the applicant does not agree
with the rejection, it may apply for a reexamination within 15 days after
receiving the notification, and the Trademark Review and Adjudication Board
shall make a final decision and notify the applicant in writing.

    Article 22  If an opposition is filed against a trademark which has been
given preliminary examination and approval and has been publicly announced,
the Trademark Office shall hear the opponent’s and the applicant’s statements
of the facts and reasons and shall, after investigation and verification,
make a decision. If a party disagrees with the decision, it may apply for a
reexamination within 15 days after receiving notification of the decision,
and the Trademark Review and Adjudication Board shall make a final decision
and notify the opponent and the applicant in writing.
Chapter IV  Renewal, Assignment and Licensing of Registered Trademarks

    Article 23  The period of validity of a registered trademark shall be ten
years, counted from the day the registration is approved.

    Article 24  If a registrant needs to continue to use the registered
trademark after the period of validity expires, an application for renewal of
registration shall be made within six months before the expiration. If the
registrant fails to make such an application within that period, an extension
period of six months may be granted. If no application has been filed before
the extension period expires, the registered trademark shall be cancelled.

    The period of validity for each renewal of registration shall be ten
years. After a renewal of registration has been approved, it shall be publicly
announced.

    Article 25  When a registered trademark is to be assigned, the assignor
and the assignee shall jointly file an application with the Trademark Office.
The assignee shall guarantee the quality of the goods on which the registered
trademark is to be used.

    After the assignment of a registered trademark has been approved, it
shall be publicly announced.

    Article 26  A trademark registrant may, by concluding a trademark
licensing contract, authorize another person to use its registered trademark.
The licensor shall supervise the quality of the goods on which the licensee
uses the licensor’s registered trademark, and the licensee shall guarantee the
quality of the goods on which the registered trademark is to be used.

    The trademark licensing contract shall be submitted to the Trademark office
for the record.
Chapter V  Determination of Disputes Concerning Registered Trademarks

    Article 27  If there is a dispute over a registered trademark, the
disputant may apply to the Trademark Review and Adjudication Board for a
ruling within one year from the day, the trademark registration was approved.

    After the Trademark Review and Adjudication Board has received an
application for a ruling, it shall notify the parties concerned and request
them to reply within a specified period.

    Article 28  If an opposition was filed and a ruling already made prior to
the approval of the registration of a trademark, the same facts and reasons
may not be used in an another application for a ruling.

    Article 29  After the Trademark Review and Adjudication Board has made the
final ruling upholding or revoking a registered trademark in dispute, it shall
notify the parties concerned in writing.
Chapter VI  Administrative Control of the Use of Trademarks

    Article 30  In the event of any of the following acts concerning the use
of a registered trademark, the Trademark Office shall order rectification of
the situation within a specified period or shall revoke the registered
trademark:

    (1) if any word or design, or combination thereof, of the registered
trademark is altered without authorization;

    (2) if the registrant’s name, address or any other registered matters
concerning the registered trademark is changed without authorization;

    (3) if the registered trademark is assigned without authorization; and

    (4) if the registered trademark has not been used for three consecutive
years.

    Article 31  If a registered trademark is used on crudely manufactured
goods that are passed off as being of high quality, thus deceiving consumers,
the administered administrative departments for industry and commerce at
various levels shall, according to the circumstances, order rectification of
the situation within a specified period and may, in addition, circulate a
notice on the matter or impose a fine, or the Trademark Office may revoke
the registered trademark.

    Article 32  If a registered trademark is revoked or is not renewed after
its period of validity expires, the Trademark Office shall not approve any
application for the registration of a trademark identical with or similar to
the said trademark within one year from the day of the revocation or
cancellation.

    Article 33  In the event of a violation of the provisions of Article 5 of
this Law, the local administrative department for industry and commerce shall
order the violator to file an application for registration within a specified
period and may, in addition, impose a fine.

    Article 34  In the event of any of the following acts concerning the use
of an unregistered trademark, the local administrative department for industry
and commerce shall stop the use of the trademark, order rectification of the
situation within a specified period and may, in addition, circulate a notice
on the matter or impose a fine:

    (1) if the trademark is falsely represented as being a registered one;

    (2) if the trademark violates the provisions of Article 8 of this Law; or

    (3) if the trademark is used on crudely manufactured goods that are passed
off as being of high quality, thus deceiving consumers.

    Article 35  If a party disagrees with the decision of the Trademark Office
to revoke a registered trademark, it may apply for a reexamination within 15
days after receiving notification of the revocation, and the Trademark Review
and Adjudication Board shall make a final decision and notify the applicant
in writing.

    Article 36  If a party disagrees with the decision of the administrative
department for industry and commerce to impose a fine under the provisions of
Article 31,33 or 34 of this Law, it may bring a suit in a people’s court
within 15 days after receiving the notification of the decision. If, at the
expiration of such a period, the party has neither brought a suit nor complied
with the decision, the relevant administrative department for industry and
commerce shall apply to the people’s court for compulsory enforcement of its
decision.

    Chapter VII  Protection of the Right to Exclusive Use of a Registered
Trademark

    Article 37  The right to exclusive use of a registered trademark shall be
limited to trademarks which have been approved for registration and to goods
on which the use of a trademark has been approved.

    Article 38  Any of the following acts shall be an infringement of the
right to exclusive use of a registered trademark:

    (1) using a trademark which is identical with or similar to the registered
trademark on the same kind of goods or similar goods without a licence from
the owner of that registered trademark;

    (2) manufacturing or selling, without authorization, representations of
the registered trademark of another person; or

    (3) harming, in other ways, another person’s right to exclusive use of a
registered trademark.

    Article 39  In the event of any of the acts listed in Article 38 of this
Law, infringing the right to exclusive use of a registered trademark, the
party whose right has been infringing may request the administrative
department for industry and commerce at or above the county level in the place
where the infringer is located to handle the matter. The relevant
administrative department for industry and commerce shall have the right to
order the infringer to stop the infringing act immediately and to compensate
the party whose right has been infringed for its losses; the amount of
compensation shall be the profits which the infringer has obtained as a result
of the infringement during the period of the infringement or the losses
incurred by the party whose right has been infringed as a result of the
infringement during the period of the infringement. If the circumstances
are serious, a fine may be concurrently imposed. If a party disagrees with
the order, it may bring a suit in a people’s court within 15 days after
receiving notification of the order. If, at the expiration of such a period,
the party has neither brought a lawsuit nor complied with the decision, the
relevant administrative department for industry and commerce shall request
the people’s court for compulsory enforcement of its decision. In the event of
an infringement of the right to exclusive use of a registered trademark, the
party whose right has been infringed may also directly bring a suit in a
people’s court.

    Article 40  Any person who falsely uses the registered trademark of
another person, including the unauthorized manufacture or sale of
representations of another person’s registered trademark, shall be ordered to
make compensation for the losses suffered by the party whose right has been
infringed and may be concurrently punished by a fine. Moreover, the criminal
responsibility of the person directly responsible shall be investigated by
the judicial organs in accordance with the law.
Chapter VIII  Supplementary Provisions

    Article 41  Applicants for trademark registration and the handling of
other trademark matters shall pay a fee, the specific standards of which shall
be prescribed separately.

    Article 42  Rules for the implementation of this Law shall be formulated
by the administrative department for industry and commerce under the State
Council, and shall be implemented after they have been submitted to and
approved by the State Council.

    Article 43  This Law shall go into effect as of March 1, 1983. On that
same day, the Regulations on Trademark Administration promulgated by the State
Council on April 10, 1963 shall simultaneously be repealed, and any other
provisions concerning trademark administration that conflict with this Law
shall be invalidated.

    Trademarks registered before this Law goes into effect shall continue to
be valid.






DETAILED RULES FOR THE IMPLEMENTATION OF CUSTOMS SUPERVISION AND CONTROL AND TAXATION ON IMPORT AND EXPORT GOODS BY ENTERPRISES DOING PROCESSING, ASSEMBLING AND SMALL AND MEDIUM-SCALED COMPENSATION TRADE

INTERIM PROVISIONS ON THE STANDARDS OF REGISTRATION FEES PAID BY CHINESE-FOREIGN EQUITY JOINT VENTURES

The State Administration for Industry and Commerce

Interim Provisions on the Standards of Registration Fees Paid by Chinese-foreign Equity Joint Ventures

the State Administration for Industry and Commerce

February 2, 1982

Interim regulations on the standards of registration fees and re-registration fees to be paid by Chinese-foreign equity joint ventures
(to be referred to hereafter as joint ventures) are hereby drawn up according to the prescriptions of Article Eight of the “Rules
on the Registration and Management of Chinese-foreign Equity Joint Ventures” promulgated by the State Council of the People’s Republic
of China. The regulations are as follows:

1.

Joint ventures whose establishment has been approved by the Foreign Investment Management Committee of the People’s Republic of China
or its commissioned people’s governments of the provinces, municipalities or autonomous regions or ministries, commissions or general
bureaus under the State Council, and those which have received certificates of approval from the Foreign Investment Management Committee
should pay registration fees according to the following standards, when they get registered and receive business licenses from the
People’s Republic of China.

(a)

The required registration fees stand at 1/1000 of the registered capital if the capital is at or below the 10 million yuan level.

(b)

If the registered capital exceeds the 10 million yuan level, the required registration fees stand at 0.5/1000 for the sum above the
10 million yuan level, while the registration fees for the sum below the 10 million yuan level remain at 1/1000.

If a joint venture intends to increase its capital after registration, the registration fees will be re-calculated on the basis of
the total sum of the capital. The joint venture should then pay additional registration fees for their increased capital according
to the above prescriptions.

2.

If a joint venture asks for re-registration or for a new business license when it has been granted permission to move to a new place;
change its direction of production; increase, decrease or transfer the possession of its registered capital; replace its director
or general manager; or to extend the period of contract, it should pay 100 yuan each time as re-registration fee.

In case it only increases its registered capital after having paid the required registration fees, it does not have to pay a re-registration
fee.

3.

If both the Chinese party and the foreign party are engaged in joint ventures in each other’s country, and if the difference of the
standards of registration fees is too great, they may seek a settlement through negotiations on the basis of reciprocity.

4.

Ventures jointly run by Chinese and foreigners and those using only foreign investment and run exclusively by foreigners with the
permission of the Foreign Investment Management Committee of the People’s Republic of China or its commissioned people’s governments
of the provinces, municipalities or autonomous regions should also pay registration or re-registration fees according to the foregoing
provisions.

5.

Ventures invested and run exclusively by overseas Chinese, Hongkong and Macao compatriots or ventures invested and run jointly by
them and mainland enterprises (including those run on the basis of co-operation) with the permission of the Foreign Investment Management
Committee of the People’s Republic of China or its commissioned people’s governments of the provinces, municipalities or autonomous
regions pay only half of the registration or re-registration fees that joint ventures pay.

6.

In the event that the above-said enterprises need legal papers for identification when they go to start business in other countries,
they will be supplied with “Business Certificates of the People’s Republic of China” by the State Administration for Industry and
Commerce Administration of the People’s Republic of China. A fee of 20 yuan will be charged for each such certificate.

7.

The interim regulations shall enter into force as of the date of promulgation. The above-said enterprises should pay retroactive registration
fees if their establishment was approved and registered before the promulgation of these Interim regulations but no registration
fees have yet been paid.



 
The State Administration for Industry and Commerce
1982-02-02

 







DOING PROCESSING, ASSEMBLING AND SMALL AND MEDIUM-SCALED COMPENSATION TRADE