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1989

ORGANIC LAW OF THE PEOPLE’S COURTS

Category  STATE INSTITUTIONS Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1983-09-02 Effective Date  1983-09-02  


Organic Law of the People’s Courts of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Organization, Functions and Powers of the People’s Courts
Chapter III  Judicial and Other Personnel of People’s Courts

(Adopted at the Second Session of the Fifth National People’s Congress on

July 1, 1979, and revised according to the Decision Concerning the Revision
of the Organic Law of the People’s Courts of the People’s Republic of China
adopted at the Second Meeting of the Sixth National People’s Congress on
September 2, 1983)
Contents

    Chapter I    General Provisions

    Chapter II   Organization, Functions and Powers of the People’s Courts

    Chapter III  Judicial and Other Personnel of People’s Courts

Chapter I  General Provisions

    Article 1  The people’s courts of the People’s Republic of China are the
judicial organs of the state.

    Article 2  The judicial authority of the People’s Republic of China is
exercised by the following people’s courts:

    (1) local people’s courts at various levels;

    (2) military courts and other special people’s courts (revised on
September 2, 1983); and

    (3) the Supreme People’s Courts.

    The local people’s courts at various levels are divided into: basic
people’scourts, intermediate people’s courts and higher people’s courts.

    (Paragraph 3 was deleted on September 2, 1983)

    Article 3  The task of the people’s courts is to try criminal and civil
cases and, through judicial activities, to punish all criminals and settle
civil disputes, so as to safeguard the system of dictatorship of the
proletariat, maintain the socialist legal system and public order, protect
socialist property owned by the whole people, collective property owned by
working people and the legitimate private property of citizens, the citizens’
right of the person and their democratic and other rights, and ensure the
smooth progress of the socialist revolution and socialist construction in the
country.

    The people’s courts, in all their activities, educate citizens in loyalty
to their socialist motherland and voluntary observance of the Constitution and
the law.

    Article 4  The people’s courts shall exercise judicial power
independently, in accordance with the provisions of the law, and shall not be
subject to interference by any administrative organ, public organization or
individual. (Revised on September 2, 1983)

    Article 5  In judicial proceedings in the people’s courts, the law is
applied equally to all citizens, regardless of ethnic status, race, sex,
occupation, family background, religious belief education, property status or
length of residence. No privilege whatsoever is allowed.

    Article 6  Citizens of all nationalities have the right to use the spoken
and written languages of their own nationalities in court proceedings. The
people’s courts shall provide translation for any party to the court
proceedings who is not familiar with the spoken or written languages commonly
used in the locality. In an area where people of a minority nationality live
in concentrated communities or where a number of minority nationalities live
together, the people’s courts shall conduct bearings in the language or
languages commonly used in the locality and issue judgments, notices and other
documents in the language or languages commonly used in the locality.

    Article 7  All cases in the people’s courts shall be heard in public,
except for those involving state secrets, private affairs of individuals and
the commission of crimes by minors.

    Article 8  The accused has the right to defence. Besides defending
himself, the accused has the right to delegate a lawyer to defend him. He may
also be defended by a citizen recommended by a people’s organization or his
place of employment, by a citizen approved by the people’s court, or by a near
relative or guardian. The people’s court may also, when it deems it necessary,
appoint a counsel to defend him.

    Article 9  (Deleted on September 2, 1983)

    Article 10  The people’s courts adopt the collegial system in the
administration of justice.

    Cases of first instance in the people’s courts shall be tried by a
collegial panel of judges or of judges and people’s assessors; simple civil
cases, minor criminal cases and cases otherwise provided for by law may be
tried by asingle judge. (Revised on September 2, 1983)

    Appealed or contested cases in the people’s courts are handled by a
collegial panel of judges.

    The president of the court or the chief judge of a division appoints one
of the judges to act as the presiding judge of the collegial panel. When the
president of the court or the chief judge of a division participates in the
judicial proceedings, he acts as the presiding judge.

    Article 11  People’s courts at all levels set up judicial committees which
practise democratic centralism. The task of the judicial committees is to sum
up judicial experience and to discuss important or difficult cases and other
issues relating to the judicial work.

    Members of judicial committees of local people’s courts at various levels
are appointed and removed by the standing committees of the people’s
congresses at the corresponding levels, upon the recommendation of the
presidents of these courts. Members of the Judicial Committee of the Supreme
People’s Court are appointed and removed by the Standing Committee of the
National People’s Congress, upon the recommendation of the President of the
Supreme People’s Court.

    The presidents of the people’s courts preside over meetings of judicial
committees of the people’s courts at all levels; the chief procurators of the
people’s procuratorates at the corresponding levels may attend such meetings
without voting rights.

    Article 12  In the administration of justice, the people’s courts adopt
the system whereby the second instance is the last instance.

    From a judgment or orders of first instance of a local people’s court, a
party may bring an appeal to the people’s court at the next higher level in
accordance with the procedure prescribed by law, and the people’s
procuratorate may present a protest to the people’s court at the next higher
level in accordance with the procedure prescribed by law.

    Judgments and orders of first instance of the local people’s courts at
various levels become legally effective judgments and orders if, within the
period for appeal, none of the parties has appealed and the procuratorate has
not protested.

    Judgments and orders of second instance of intermediate courts, higher
people’s courts and the Supreme People’s Court and judgments and orders of
first instance of the Supreme People’s Court are all judgments and orders of
last instance, that is, legally effective judgments and orders.

    Article 13  Cases involving sentences of death, except for cases with
sentences imposed by the Supreme People’s Court, shall be submitted to the
Supreme People’s Court for approval. The Supreme People’s Courts may, when it
deems it necessary, authorize higher people’s courts of provinces, autonomous
regions, and municipalities directly under the Central Government to exercise
the power to approve cases involving the imposition of death sentences for
homicide, rape, robbery, causing explosions and others gravely endangering
public security and disrupting social order. (Revised on September 2, 1983)

    Article 14  If the president of a people’s court finds, in a legally
effective judgment or order of his court, some definite error in the
determination of facts or application of law, he must submit the judgment or
order to the judicial committee for disposal.

    If the Supreme People’s Court finds some definite error in a legally
effective judgment or order of the people’s court at a lower level or if the
people’s court at a higher level finds such error in a legally effective
judgment or order of the people’s court at a lower level, it has the authority
to review the case itself or to direct the lower-level people’s court to
conduct a retrial.

    If the Supreme People’s Procuratorate finds some definite error in a
legally effective judgment or order of a people’s court at any level or if the
people’s procuratorate at a higher level finds such error in a legally
effective judgment or order of any people’s court at a lower level, it has the
authority to lodge a protest in accordance with the procedure of judicial
supervision.

    The people’s courts at all levels shall hold themselves responsible for
seriously handling a petition lodged by a party to a case against a legally
effective judgment or order.

    Article l5  If a people’s court considers that the principal facts of a
case in which a people’s procuratorate has initiated a public prosecution are
not clear and the evidence is insufficient, or there are illegalities in the
prosecution, the court may remand the case to the people’s procuratorate
for supplementary investigation or notify the people’s procuratorate to
rectify them.

    Article 16  If a party to a case considers that a member of the judicial
personnel has an interest in the case or, for any other reason, cannot
administer justice impartially, he has the right to ask that member to
withdraw. The president of the court shall decide whether the member
should withdraw.

    If a member of the judicial personnel considers that be should withdraw
because he has an interest in the case or for any other reason, he should
report the matter to the president of the court for decision.

    Article l7  The Supreme People’s Court is responsible to and reports on
its work to the National People’s Congress and its Standing Committee. Local
people’s courts are responsible to and report on their work to the local
people’s congresses at corresponding levels and their standing committees.

    The judicial work of people’s courts at lower levels is subject to
supervision by people’s courts at higher levels.

    (Paragraph 3 was deleted on September 2, 1983)
Chapter II  Organization, Functions and Powers of the People’s Courts

    Article 18  Basic people’s courts are:

    (1) county people’s courts and municipal people’s courts:

    (2) people’s courts of autonomous counties; and

    (3) people’s courts of municipal districts.

    Article 19  A basic people’s court is composed of a president,
vice-presidents and judges.

    A basic people’s court may set up a criminal division, a civil division
and an economic division, each with a chief judge and associate chief judges.
(Revised on September 2, 1983)

    Article 20  A basic people’s court may set up a number of people’s
tribunals according to the conditions of the locality, population and cases. A
people’s tribunal is a component part of the basic people’s court, and its
judgments and orders are judgments and orders of the basic people’s courts.

    Article 21  Except for cases otherwise provided for by laws or decrees,
a basic people’s court adjudicates criminal and civil cases of first instance.
When a basic people’s court considers that a criminal or civil case it is
handling is of major importance and requires trial by the people’s court at
a higher level, it may request that the case be transferred to that court for
trial.

    Article 22  Besides trying cases, a basic people’s court undertakes the
following tasks:

    (1) settling civil disputes and handling minor criminal cases that do not
need to be determined by trials;

    (2) directing the work of people’s mediation committees. (Revised on
September 2, 1983)

    (Item (3) was deleted on September 2, 1983)

    Article 23  Intermediate people’s courts are:

    (1) intermediate people’s courts established in prefectures of a province
or autonomous region:

    (2) intermediate people’s courts established in municipalities directly
under the Central Government:

    (3) intermediate people’s courts of municipalities directly under the
jurisdiction of a province or autonomous region; and

    (4) intermediate people’s courts of autonomous prefectures.

    Article 24  An intermediate people’s court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

    Each intermediate people’s court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary. (Revised on September 2, 1983)

    (Paragraph 3 was deleted on September 2, 1983)

    Article 25  An intermediate people’s court handles the following cases:

    (1) cases of first instance assigned by laws and decrees to their
jurisdiction;

    (2) cases of first instance transferred from the basic people’s courts;

    (3) cases of appeals and of protests lodged against judgments and orders
of the basic people’s courts; and

    (4) cases of protests lodged by the people’s procuratorates in accordance
with the procedures of judicial supervision.

    When an intermediate people’s court considers that a criminal or civil
case it is handling is of major importance and requires trial by the people’s
court at a higher level, it may request that the case be transferred to that
court for trial.

    Article 26  Higher people’s courts are:

    (1) higher people’s courts of provinces;

    (2) higher people’s courts of autonomous regions; and

    (3) higher people’s courts of municipalities directly under the Central
Government.

    Article 27  A higher people’s court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

    A higher people’s court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary.

    Article 28  A higher people’s court handles the following cases:

    (1) cases of first instance assigned by laws and decrees to their
jurisdiction;

    (2) cases of first instance transferred from people’s courts at lower
levels:

    (3) cases of appeals and of protests lodged against judgments and orders
of people’s courts at lower levels; and

    (4) cases of protests lodged by people’s procuratorates in accordance with
the procedures of judicial supervision.

    Article 29  The organization, functions and powers of special people’s
courts shall be prescribed separately by the Standing Committee of the
National People’s Congress.

    Article 30  The Supreme People’s Court is the highest judicial organ of
the State.

    The Supreme People’s Court supervises the administration of justice by the
local people’s courts at various levels and by the special people’s courts.

    Article 31  The Supreme People’s Court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

    The Supreme People’s Court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary.

    Article 32  The Supreme People’s Court handles the following cases:

    (1) cases of first instance assigned by laws and decrees to its
jurisdiction and which it considers should itself try;

    (2) cases of appeals and of protests lodged against judgments and orders
of higher people’s courts and special people’s courts; and

    (3) cases of protests lodged by the Supreme People’s Procuratorate in
accordance with the procedures of judicial supervision.

    Article 33  The Supreme People’s Court gives interpretation on questions
concerning specific application of laws and decrees in judicial proceeding.
Chapter III  Judicial and Other Personnel of People’s Courts

    Article 34  Citizens who have the right to vote and to stand for election
and have reached the age of 23 are eligible to be elected presidents of
people’s courts or appointed vice-presidents of people’s courts, chiefjudges
or associate chief judges of divisions, judges or assistant judges; but
persons who have ever been deprived of political rights are excluded.

    Judicial personnel of people’s courts must have an adequate knowledge of
the law. (This paragraph was added on September 2, 1983)

    Article 35  Presidents of local people’s courts at various levels are
elected by the local people’s congresses at corresponding levels, and their
vice-presidents, chief judges and associate chief judges of divisions, and
judges are appointed and removed by the standing committees of the local
people’s congresses at corresponding levels.

    Presidents of intermediate people’s courts established in prefectures of provinces or in municipalities.
directly under the Central Government are
elected by the people’s congresses of the provinces and municipalities
directly under the Central Government, and their vice-presidents, chiefjudges
and associate chief judges of divisions, and judges are appointed and removed
by the standing committees of the people’s congresses of the provinces and
municipalities directly under the Central Government.

    Presidents of local people’s courts at various levels established in
national autonomous areas are elected by local people’s congresses at
corresponding levels in these areas, and their vice-presidents, chief judges
and associate chief judges of divisions, and judges are appointed or removed
by the standing committees of local people’s congresses at corresponding
levels in these areas.

    The President of the Supreme People’s Court is elected by the National
People’s Congress, and its vice-presidents, chief judges and associate chief
judges of divisions, and judges are appointed or removed by the Standing
Committee of the National People’s Congress.

    Article 36  The term of office of presidents of people’s courts at all
levels is the same as that of people’s congresses at corresponding levels.

    People’s congresses at all levels have the power to remove from office
the presidents of people’s courts elected by them. If the standing committee
of a people’s congress deems it necessary to replace the president of a local
people’s court at the corresponding level when the congress is not in session,
it shall report the matter to the people’s court at the next higher level for
submission to the standing committee of the people’s congress at the next
higher level for approval.

    Article 37  People’s courts at all levels may, according to their needs,
be staffed with assistant judges, who shall be appointed or removed by the
people’s courts themselves. (Revised on September 2, 1983)

    Assistant judges help the judges in their work. Upon the recommendation of
the president of the court and with the approval of the judicial committee, an
assistant judge may provisionally exercise the functions of a judge.

    Article 38  Citizens who have the right to vote and to stand for election
and have reached the age of 23 are eligible to be elected people’s assessors,
but persons who have ever been deprived of political rights are excluded.

    During the period of the exercise of their functions in the people’s
courts, the people’s assessors are members of the divisions of the courts in
which they participate, and enjoy equal rights with the judges.

    Article 39  During the period of the exercise of their functions, the
people’s assessors continue to receive wages as usual from their regular place
of employment; people’s assessors who are not wage-earners are given
reasonable allowances by the people’s courts.

    Article 40  People’s courts at all levels have clerks to keep records of the court proceedings and to take charge of other matters
concerning the
trials.

    Article 4l  Local people’s courts at various levels have marshals to carry
out the execution of judgments and orders in civil cases and the execution, in
criminal cases, of the parts of judgments and orders concerned with property.

    Local people’s courts at various levels have forensic physicians.

    People’s courts at all levels have a certain number of judicial policemen.

    Article 42  (Deleted on September 2, 1983)





MARINE ENVIRONMENT PROTECTION LAW

Marine Environment Protection Law of the People’s Republic of China

    

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS

CHAPTER III PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS BY OFFSHORE
OIL EXPLORATION AND EXPLOITATION

CHAPTER IV PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

CHAPTER V PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY VESSELS CHAPTER VI PREVENTION OF POLLUTION
DAMAGE TO THE MARINE ENVIRONMENT BY DUMPING OF WASTES

CHAPTER VII LEGAL LIABILITIES

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. This Law is formulated in order to protect the marine environment and resources, prevent pollution damage,
maintain ecological balance, safeguard human health and promote the development of marine programmes.

   Article 2. This Law shall apply to the internal seas and territorial seas of the People’s Republic of China and all other sea
areas under the jurisdiction of the People’s Republic of China.

All vessels, platforms, airborne vehicles and submersibles, as well as all enterprises, institutions and individuals
engaged in navigation, exploration, exploitation, production, scientific research or other activities in the
sea areas under the jurisdiction of the People’s Republic of China shall comply with this Law.

This Law shall also apply to the discharge of harmful substances and the dumping of wastes done beyond the sea
areas under the jurisdiction of the People’s Republic of China that cause pollution damage to sea areas within the jurisdiction
of the People’s Republic of China.

   Article 3. All units and individuals entering the sea areas under the jurisdiction of the People’s Republic of China shall
have the responsibility to protect the marine environment and shall have the obligation to watch for and report
on actions causing pollution damage to the marine environment.

   Article 4. The relevant departments under the State Council and the people’s governments of the coastal provinces, autonomous regions,
and municipalities directly under the Central Government may, as the need to protect the marine environment requires, establish
special marine reserves, marine sanctuaries and seashore scenic and tourist areas and take corresponding measures
to protect them. The designation of special marine reserves and marine sanctuaries shall be subject to the State
Council for approval.

   Article 5. The environmental protection department under the State Council shall be in charge of the marine environmental
protection of the whole country.

The state administrative department of marine affairs shall be responsible for organizing investigations and monitoring
of and exercising surveilance over the marine environment and conducting scientific research therein; it shall
also be in charge of environmental protection against marine pollution damage caused by offshore oil exploration
and exploitation and by the dumping of wastes into the sea.

The Harbour Superintendency Administration of the People’s Republic of China shall be responsible for supervising,
investigating and dealing with the discharge of pollutants from vessels and for exercising surveillance over the waters
of the port areas; it shall also be in charge of environmental protection against pollution damage caused by
vessels.

The state fisheries administration and fishing harbour superintendency agencies shall be responsible for
supervising the discharge of pollutants by vessels in the fishing harbours and for exercising surveillance over the waters
thereof.

The environmental protection department of the armed forces shall be responsible for supervising the discharge
of pollutants by military vessels and exercising surveillance over the waters of the naval ports.

The environmental protection departments of the coastal provinces, autonomous regions, and municipalities
directly under the Central Government shall be responsible for organizing, coordinating, supervising and inspecting
the marine environmental protection work in their respective administrative areas and shall be in charge of environmental
protection against pollution damage caused by coastal construction projects and land-sourced pollutants.

CHAPTER II PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS

   Article 6. Units in charge of coastal construction projects must, before drawing up and submitting their project plan
descriptions, conduct scientific surveys of the marine environment, select suitable sites in the light of natural
and social conditions and formulate and submit Environmental Impact Statements in accordance with relevant
state regulations.

   Article 7. Measures must be taken to protect the aquatic resources when building harbours and oil terminals, as well as water
conservancy facilities and tidal power stations in estuaries. Dams to be built across fish and crab migration routes
shall be provided with appropriate fish passage facilities.

   Article 8. Facilities to receive and treat residual and waste oils, oil-polluted water and other wastes, along with the
necessary anti-pollution equipment and monitoring and alarm devices, shall be installed at ports and oil terminals.

   Article 9. The development and utilization of tideland shall be subject to comprehensive planning and strict administration. The reclamation
of land from the sea, or other projects to enclose sea areas, and the excavation of sand and gravel shall be strictly
controlled. For projects that are definitely necessary, Environmental Impact Statements based on investigative
research and comparison of economic results must be prepared and submitted for approval to the environmental protection
departments of the relevant provinces, autonomous regions, or municipalities directly under the Central Government.
In the case of large-scale projects to enclose sea areas, the statements must also be submitted to the environmental
protection department under the State Council for examination and approval.

It is forbidden to destroy seashore shelter belts, scenic woods, scenic rocks, mangroves and coral reefs.

CHAPTER III PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS BY
OFFSHORE OIL EXPLORATION AND EXPLOITATION

   Article 10. Enterprises engaged in offshore oil exploitation or their competent authorities shall, before drawing up and submitting
their project plan descriptions, prepare Environmental Impact Statements, which shall include effective measures
for the prevention of pollution damage to the marine environment; the statements shall be submitted to
the environmental protection department under the State Council for examination and approval.

   Article 11. When offshore oil exploration and other offshore activities involve explosive operations, effective measures shall be taken
to protect fishery resources.

   Article 12. Oils used in the course of exploration and exploitation shall be put under strict control so as to prevent accidents
from oil leakage. Residual and waste oils shall be recovered and must not be discharged into the sea.

   Article 13. Oil-polluted water and oil mixtures from offshore oil rigs, drilling platforms and oil extraction platforms may not
be directly discharged into the sea. When they are discharged after recovery treatment, the oil content of the discharges
may not exceed the standards set by the state.

   Article 14. Offshore oil rigs, drilling platforms and oil extraction platforms may not dispose oil-polluted industrial wastes into
the sea. The disposal of other industrial wastes may not cause pollution damage to fishing areas and shipping channels.

   Article 15. When testing offshore wells, oils and oil mixtures may not be discharged into the sea, and the gas and oil shall be thoroughly
flared so as to prevent pollution of the sea.

   Article 16. Offshore oil pipelines and oil-storage installations shall always be kept in good condition, as required for the prevention
of seepage, leakage and corrosion, so as to prevent oil leakage accidents.

   Article 17. In exploring and exploiting offshore oil resources, appropriate anti-pollution facilities and equipment shall be made
available, and effective technical measures shall be taken to prevent blowouts or accidents from oil leakage.

Once a blowout or oil leakage accident occurs, the unit concerned shall immediately report it to the state
administrative department of marine affairs, take effective measures to control and eliminate oil pollution and accept
the investigation and handling of the case by the department.

CHAPTER IV PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

   Article 18. The discharge of harmful substances into the sea by coastal units must be conducted in strict compliance with the standards
for discharge and the relevant regulations promulgated by the state or the people’s governments of provinces, autonomous
regions, and municipalities directly under the Central Government.

No additional outlet for discharging sewage shall be allowed within marine sanctuaries, aquacultural grounds and seashore
scenic and tourist areas. Those outlets already in existence before the promulgation of this Law, where the
discharge of pollutants is not in conformity with the state standards, shall be improved within a prescribed period of time.

   Article 19. It is prohibited to discharge waste water containing high-level radioactive matter into the sea.

Any discharge of waste water containing low-level radioactive matter into the sea, when really necessary, shall be
carried out in strict compliance with the state provisions and standards concerning radioactive protection.

   Article 20. No medical sewage or industrial waste water carrying infectious pathogens may be discharged into the sea before
it has been properly treated and strictly sterilized, with the pathogens therein exterminated.

   Article 21. The discharge of industrial waste water and domestic sewage containing organic and nutrient matter into bays, semi-closed
seas and other sea areas with low capacities of self-purification shall be controlled so as to prevent eutrophication
of the sea water.

   Article 22. When discharging heated waste water into the sea, measures shall be taken to ensure that the water temperature in the adjacent
fishing areas is kept within state water quality standards in order to avoid damage to the aquatic resources by heat pollution.

   Article 23. The use of chemical pesticides in coastal farmlands shall conform to the state provisions and standards for the
safe use of pesticides.

   Article 24. No unit may discard or pile up tailings, slags, cinders, garbage and other wastes along seashores and beaches without
the approval of the environmental protection departments of the coastal provinces, autonomous regions, or municipalities
directly under the Central Government. Those who have been approved by law to set up waste yards and treatment
facilities along seashores and beaches shall build dikes to prevent the wastes from entering the sea.

   Article 25. The environmental protection departments of the coastal provinces, autonomous regions, and municipalities directly
under the Central Government and the river system administrative departments shall strengthen their control
over rivers that empty into the sea to prevent them from being polluted and ensure the quality of the water in the
estuaries.

CHAPTER V PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY VESSELS

   Article 26. No vessel may, in violation of the provisions of this Law, discharge oils, oil mixtures, wastes and other harmful substances
into the sea areas under the jurisdiction of the People’s Republic of China.

   Article 27. Any oil tanker with a gross tonnage of 150 tons or more or any other vessel with a gross tonnage of 400 tons or more shall
be fitted with appropriate anti-pollution equipment and facilities.

Any oil tanker with a gross tonnage of less than 150 tons and any other vessel with a gross tonnage of less than 400
tons shall be fitted with special containers for recovery of residual and waste oils.

   Article 28. Any oil tanker with a gross tonnage of 150 tons or more or any other vessel with a gross tonnage of 400 tons or more shall
carry on board an Oil Record Book.

Any vessels carrying more than 2,000 tons of oil in bulk as cargo shall hold a valid “insurance or other financial
security certificate for civil liability against oil pollution damage,” or a “credit certificate for civil liability against
oil pollution damage, ” or furnish other financial credit guarantees.

   Article 29. The discharge of oil-polluted water from an oil tanker with a gross tonnage of 150 tons or more or any other vessel
with a gross tonnage of 400 tons or more must be conducted in compliance with the state standards and provisions for
vessel sewage discharge and shall be truthfully recorded in the Oil Record Book.

   Article 30. The discharge of hold-washings and other residues by vessels carrying noxious or corrosive goods must be conducted
in compliance with the state provisions for vessel sewage discharge and shall be truthfully recorded in the Logbook.

   Article 31. The discharge of radioactive substances from nuclear-powered vessels or vessels carrying such substances must
be conducted in compliance with the provisions of Article 19 of this Law.

   Article 32. Vessels, when bunkering or loading and unloading oil, must observe operating instructions and take effective measures to
prevent oil spills.

   Article 33. Shipbuilders and ship repairing, scrapping and salvaging units shall be provided with anti-pollution equipment and
facilities. During operations, preventive measures shall be taken against pollution of the sea by oils, oil mixtures and other
wastes.

   Article 34. In case pollution has resulted from an abnormal discharge of oils, oil mixtures or other harmful substances, or from
the spilling overboard of noxious or corrosive goods, the vessel concerned shall immediately take measures to
control and eliminate such pollution and shall report the matter to the nearest harbour superintendency administration for
investigation and settlement.

   Article 35. If a vessel is involved in a marine accident which has caused, or is likely to cause, a serious pollution damage
to the marine environment, the Harbour Superintendency Administration of the People’s Republic of China shall
have the power to compel action to avoid or minimize such a pollution damage.

   Article 36. All vessels have the obligation to guard against pollution of the sea. Upon discovering violations of regulations or occurrences
of pollution, they shall immediately report them to the nearest harbour superintendency administration; fishing
boats may also report such occurrences to the nearest fisheries administration and fishing harbour superintendency agency.

   Article 37. In the event of pollution caused by a vessel navigating, berthing or operating in a sea area under the jurisdiction
of the People’s Republic of China, officers from the Harbour Superintendency Administration of the People’s Republic
of China shall board the vessel in question to examine and handle the case. Officers from relevant government departments
authorized by the Harbour Superintendency Administration may also board the vessel to conduct examinations and report
the results thereof to the Administration for settlement.

CHAPTER VI PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY DUMPING OF WASTES

   Article 38. No unit may dump any kind of waste into the sea areas under the jurisdiction of the People’s Republic of China without the
permission of the state administrative department of marine affairs.

Units that need to dump wastes must file an application with the state administrative department of marine affairs and
the dumping may be carried out only after a permit has been granted by the department.

   Article 39. Units that have obtained permits for dumping wastes shall dump wastes at the designated place, within the time
limit and in accordance with the conditions specified in the permit. Wastes to be dumped shall be verified by the approving
department after their loading. Wastes to be dumped by means of vessels shall be supervised and verified by the
harbour superintendency administration at the port of departure.

   Article 40. Units that have obtained permits for dumping wastes shall make a detailed record of such operations and present a
written report to the approving department thereafter. Vessels that have finished the said dumping must present a written
report to the harbour superintendency administration at the port of departure.

CHAPTER VII LEGAL LIABILITIES

   Article 41. In the case of a violation of this Law that has caused or is likely to cause pollution damage to the marine environment,
the competent authorities prescribed in Article 5 of this Law may order the violator to remedy the pollution damage
within a definite time, pay a pollutant discharge fee, pay the cost for eliminating the pollution and compensate
for the losses sustained by the state; they may also give the violator a warning or impose a fine. An involved party
contesting the decision may file a suit in a people’s court within 15 days after it has received the written decision.
If a suit has not been filed and the decision has not been carried out upon the expiration of that period, the competent
authorities shall request the people’s court to enforce the decision in accordance with the law.

   Article 42. Units or individuals who have suffered damage caused by marine environmental pollution shall be enpost_titled to claim compensation
from the party which caused the pollution damage. Disputes over the compensation liability and the amount
of compensation may be settled by the competent authorities. If a party contests the decision, the matter may be settled
either by resorting to the procedures specified in the Civil Procedure Law of the People’s Republic of China
or by filing a suit directly with the people’s court.

   Article 43. Compensation liability may be exempted if pollution damage to the marine environment cannot be avoided, despite prompt and
reasonable measures taken, when the pollution damage is caused by any of the following circumstances:

(1) acts of war;

(2) irresistible natural calamities; or

(3) negligence or other wrongful acts in the exercise of the functions of departments responsible for the
maintenance of beacons or other navigational aids. In the case of pollution damage to the marine environment
resulting entirely from the intentional or wrongful act of a third party, that party shall be liable for compensation.

   Article 44. In cases where violations of this Law result in pollution damage to the marine environment and cause heavy losses
to public or private property or deaths or injuries to persons, those who are directly responsible may be prosecuted
for criminal responsibility by judicial organs in accordance with the law.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 45. For the purpose of this Law, the definitions of the following terms are:

(1) ” Pollution damage to the marine environment ” means any direct or indirect introduction of substances or
energy into the marine environment which results in deleterious effects such as harm to marine living resources,
hazards to human health, hindrance to fishing and other legitimate activities at sea, impairment of the
useful quality of sea water and degradation of environmental quality.

(2) ” Fishing areas ” means spawning grounds, feeding grounds, wintering grounds and migration channels of fish and
shrimp as well as aquacultural grounds of fish, shrimp, shellfish and aquatic plants.

(3) ” Oils ” means any kind of oil and its refined products.

(4) ” Oil mixtures ” means any mixtures containing oil.

(5) ” To discharge ” means to drain pollutants into the sea, including pumping, spilling, releasing, gushing and pouring.

(6) ” To dump ” means to dispose of wastes or other harmful substances into the sea from vessels, airborne
vehicles, platforms or other means of transport, including the abandonment of vessels, airborne vehicles, platforms
and other floating apparatus.

   Article 46. Where existing provisions concerning marine environmental protection contradict this Law, this Law shall prevail.

   Article 47. The environmental protection department under the State Council may, in accordance with this Law, formulate
rules for its implementation, which shall be put into effect after being submitted to and approved by the State Council.

The relevant departments under the State Council and the standing committees of the people’s congresses
and people’s governments of the coastal provinces, autonomous regions, and municipalities directly under the
Central Government may, in accordance with this Law, work out concrete measures for its implementation, taking
into consideration the actual conditions prevailing at the departments or localities concerned.

   Article 48. This Law shall come into force as of March 1, 1983.

    





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE REVISION OF THE ORGANIC LAW

RULES FOR THE IMPLEMENTATION OF EXCHANGE CONTROL REGULATIONS RELATING TO ENTERPRISES WITH OVERSEAS CHINESE CAPITAL, ENTERPRISES WITH FOREIGN CAPITAL AND SINO-FOREIGN EQUITY JOINT VENTURES

REGULATIONS ON THE PREVENTION OF VESSEL-INDUCED SEA POLLUTION

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1983-12-29 Effective Date  1983-12-29  


Regulations of the People’s Republic of China on the Prevention of Vessel-induced Sea Pollution

Chapter I  General Provisions
Chapter II  General Stipulations
Chapter III  Documents and Equipment for the Prevention of Vessel-induced
Chapter IV  Oil Operations and Discharge of Oil-polluted Water by Vessels
Chapter V  Dangerous Goods Carried by Vessels
Chapter VI  Other Polluted Water from Vessels
Chapter VII  Garbage from Vessels
Chapter VIII  Use of Vessels to Dump Waste Materials
Chapter IX  Surface and Submerged Projects of Ship Repair, Ship Building,
Chapter X  Compensation for Harm from Pollution Accidents Caused by
Chapter XI  Penalty and Rewards
Chapter XII  Supplementary Provisions

(Promulgated by the State Council on December 29, 1983)

Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to implementing
the Marine Environmental Protection Law of the People’s Republic of China,
preventing sea pollution by ships and maintaining the marine ecological
environment.

    Article 2  These Regulations are applicable to all Chinese and foreign
vessels, shipowners and other individuals within the sea areas and harbors
under the jurisdiction of the People’s Republic of China.

    Article 3  The organs in charge of the prevention of vessel-induced
pollution of the marine environment are the harbor superintendency
administration of the People’s Republic of China (hereinafter referred to as
the “harbor superintendencies”).
Chapter II  General Stipulations

    Article 4  All vessels in the sea areas and harbors under the jurisdiction
of the People’s Republic of China shall in no case discharge oils, oil-based
mixtures, waste materials and other toxic substances in violation of the
stipulations of the Marine Environmental Protection Law of the People’s
Republic of China and these Regulations.

    Article 5  No vessel shall discharge oils, oil-based mixtures, waste
materials and other toxic substances into the freshwater of harbors close to
river mouths, special marine reserves and natural marine protection areas.

    Article 6  When accidents of pollution occur in the sea areas caused by
oil, oil based mixtures and other toxic substances from vessels, measures
shall be immediately adopted to control and eliminate the pollution and a
written report shall be made to a nearby harbor superintendency administration
as quickly as possible for investigation and treatment.

    Article 7  In cases where marine accidents have caused, or are likely to
cause, major pollution damage to the marine environment, the harbor
superintendency administration shall have the power to compel the adoption of
measures to avoid or reduce this pollution damage, including measures of
compulsory elimination of pollution or compulsory towing of the vessels. The
vessels causing the problems shall bear all the costs arising therefrom.

    Article 8  When vessels cause or find other vessels cause pollution or
violate the relevant regulations in the sea areas under the jurisdiction of
the People’s Republic of China, the matter shall be handled in accordance with
the stipulations of Articles 36 and 37 of the Marine Environmental Protection
Law of the People’s Republic of China.

    Article 9  Vessels which need to conduct cabin-washing operations in the
harbor must adopt measures for safety and for preventing pollution damage to
the sea areas. Applications shall be submitted in advance to the harbor
superintendency administration, and the operation may proceed only with
approval.

    Article 10  To ensure safe pilotage and docking of oil tankers and to
prevent pollution of the sea areas, the ballast water kept in all empty oil
tankers entering the harbor must be no less than one-fourth of the deadweight
capacity of the oil tanker in question. In cases where an oil tanker does not
keep sufficient ballast water as stipulated, the harbor superintendency
administration shall investigate the whereabouts of its ballast water and
handle the matter according to the circumstances therearound.

    Article 11  After oil pollution accidents or discharges of oil in
violation of the regulations have occurred, the vessels involved may not use
oil-eliminating chemicals at their own discretion. If oil-eliminating
chemicals have to be used, applications by telephone or in written form shall
be made to the harbor superintendencies in advance, with the brand names,
amounts and the areas for the application of the oil-eliminating agents
stated, and they may be used only with approval.

    Article 12  In cases pollution accidents or pollutant discharges in
violation of the regulations occur, the owners of the vessels involved or the
persons who have caused the problems and who are found or held economically
liable for the cleaning and compensasion must complete the procedures of the
financial guarantee for or the payment of the relevant sums of money before
the vessels set sail.

    Article 13  Vessels carrying 2,000 tons or more of bulk oil or cargoes
navigating on international navigation lines shall, in addition to
implementing the stipulations of these Regulations, abide by the International
Pact of 1969 on Civil Liability for Harm from Oil Polltition, to which China
has acceded.
Chapter III  Documents and Equipment for the Prevention of Vessel-induced
Pollution

    Article 14  Documents for the prevention of vessel-induced pollution:

    (1) oil tankers of 150 gross tonnage or more, non-oil tankers of 400 gross
tonnage or more and vessels carrying 2,000 tons or more of bulk oil and
cargoes shall be respectively equipped with the corresponding documents for
the prevention of pollution by vessels as stipulated in Article 28 of the
Marine Environmental Protection Law of the People’s Republic of China;

    (2) vessels shall also be equipped with all the other documents for the
prevention of pollution as demanded by the harbor superintendencies.

    Article 15  With regard to oil tankers of 150 gross tonnage or more and
non-oil tankers of 400 gross tonnage or more, the equipment on board for the
prevention of pollution shall meet the following requirements:

    (1) separate piping systems are used for the polluted water in the engine
room and the ballast tank water;

    (2) foul oil storage tanks are installed;

    (3) standard discharge connections are used;

    (4) oil and water separation equipment or filtering system is installed
and it is ensured that the discharged oil content of the treated oil-polluted
water does not exceed 15 mg/liter, when discharged within 12 nautical miles of
the nearest land and not exceed 100 mg/liter, when discharged beyond 12
nautical miles from the nearest land;

    (5) ships of 10,000 tonnage or more shall, in addition to satisfying the
afore-mentioned requirements as stipulated in this Article, also be equipped
with monitoring and control devices for oil discharge;

    (6) other pollution-prevention equipment installed on board the vessels
shall conform to the relevant stipulations of the state for vessels’
pollution-prevention structures and equipment standards.

    The existing pollution-prevention equipment that is not up to the above
requirements shall be brought up to the stipulated requirements within 3 years
of the implementation of these Regulations.

    Article 16  Oil tankers of under 150 gloss tonnage and non-oil tankers of
under 400 gross tonnage shall be fitted out with specialized containers for
retrieving residue oil and waste oil. These containers shall be able to
discharge residue oil and waste oil to the receptacles at harbors and shall be
equipped as stipulated in Clauses (3) and (6) of Article 15 of these
Regulations.
Chapter IV  Oil Operations and Discharge of Oil-polluted Water by Vessels

    Article 17  When performing oil loading or unloading operations, vessels
must observe the following stipulations:

    (1) before the operations, the pipelines and valves must be examined,
preparatory work done, the decks drainage holes closed and the relevant valves
leading to the sea shut;

    (2) the relevant equipment for oil operations must be examined and kept in
good condition;

    (3) containers for collecting oil shall be placed where oil overflow and
oil leakage could occur;

    (4) both parties, primarily the recipient, shall earnestly act upon the
contracted signals agreed on through consultation by the oil supplier and the
oil recipient;

    (5) during the operations, there shall be sufficient personnel on duty,
those who are on duty must stand fast at their posts, strictly observe the
operational rules, keep informed on and control over the progress of the
operations and prevent oil escape and leakage;

    (6) when operations stop, the relevant valves must be shut;

    (7) when brought in or untied, the flexible pipes must be sealed up with
built-in valves in advance, or other effective measures adopted to prevent the
oil remaining in the pipes from flowing backward into the sea;

    (8) oil tankers shall make accurate entries of the situation of oil
operations in the “record book for oils”; non-oil tankers shall make entries
in the “engine logbook” or the minute book of those on duty.

    Article 18  In the event of oil escape or oil leakage while performing oil
operations, vessels shall promptly adopt measures to eliminate oil pollution
and prevent its expansion, and at the same time report to the harbor
superintendencies. After the causes have been ascertained, the vessels shall
report in writing and wait for investigation and handling.

    Article 19  In discharging pollutants, vessels must meet the “Standards
for Discharge of Pollutants by Vessels” of the People’s Republic of China.

    Such oil-polluted water as that in the ballast tanks, that from washing of
cabins and that in the engine rooms of vessels entering harbors must not be
discharged at will; it shall be received and disposed of with disposal
facilities for oil-polluted water at the harbor. If the harbor is not equipped
for receiving and disposing of oil-polluted water when vessels’ oil-polluted
water have to be discharged, a written report shall be submitted to the harbor
superintendencies in advance. After approval is received, the discharge shall
be conducted conditionally and at designated areas.

    Article 20  The discharge of vessels’ oil-polluted water approved in
accordance with Article 19 of these Regulations must be in accordance with the
following stipulations:

    (1) general requirements

    a. the discharge must be done within the approved areas;

    b. in the course of navigating, the instantaneous discharge rate may not
exceed 60 liters/nautical mile;

    c. the oil content of the polluted water may not exceed 15 mg/liter;

    d. the oil and water separation equipment, the filtering system and the
monitoring and controlling devices of oil discharge must be in normal working
condition;

    e. the discharge must be done on the ebbtide.

    (2) the discharge of oil-polluted water from the engine rooms of oil
tankers of 150 gross tonnage or more and non-oil tankers of 400 gross tonnage
or more must, in addition to satisfying a, b, d, and e of the above-listed
general requirements, also meet the following requirements:

    a. discharge must be done beyond 12 nautical miles from the nearest land;

    b. the oil content of the polluted water may not exceed 100 mg/liter.

    (3) the discharge of ballast water and the water from the washing of
cabins of oil tankers of 150 gross tonnage or more must, in addition to
satisfying b and d of the above-listed general requirements, also meet the
following requirements:

    a. dumping must be done 50 nautical miles away from the nearest land;

    b. the total amount of oil discharged in each ballast voyage may not
exceed 1/15000 of the total amount of oil carried for existing oil tankers,
and not exceed 1/30000 for new oil tankers.
Chapter V  Dangerous Goods Carried by Vessels

    Article 21  Vessels carrying dangerous goods with inflammable, explosive
or corrosive, toxic and radioactive substances shall adopt necessary safety
and anti-pollution measures. They shall raise the stipulated signals, observe
the “Regulations on Supervision and Control of Dangerous Goods Carried by
Vessels” and “Regulations on Transportation of Dangerous Goods through Water
Routes” of the Ministry of Communications of the People’s Republic of China
and the “Rules on Transportation of Dangerous Goods on International Seas” of
the International Maritime Organization, and prevent occurrence of accidents
that will cause the dangerous goods to scatter or leak out to pollute the sea
areas.

    Article 22  When vessels are loading dangerous toxic bulk liquids at the
harbor, the various stipulations prescribed in Article 17 of these Regulations
may be referred to for implementation.

    Article 23  When vessels are loading and unloading dangerous goods of a
toxic, corrosive or radioactive nature, both the vessels and the operation
units must adopt precautionary measures to prevent the goods from falling into
the water. Should accidents occur, urgent measures shall be adopted to
retrieve and remove the goods. Reports shall be made immediately to the harbor
superintendencies and the relevant units must be informed in good time, so
that measures will be adopted to prevent major damage.
Chapter VI  Other Polluted Water from Vessels

    Article 24  Nuclear powered vessels and vessels carrying radioactive
substances must observe the stipulations in Article 31 of the Marine
Environmental Protection Law of the People’s Republic of China.

    Article 25  Vessels from epidemic-affected ports shall apply to the
sanitation and quarantine department for sanitary treatment of the ballast
water thereof.

    Article 26  Vessels carrying toxic goods and goods containing corrosive
substances must, in discharging hold-washings containing such substanccs,
conform to the following requirements:

    (1) discharge within the approved areas;

    (2) discharge 12 nautical miles away from the nearest land, and the depth
of the water exceed 25 meters;

    (3) discharge in the course of navigating, and at a speed of not less than
7 knots and for non-self-navigating vessels, not less than 4 knots;

    (4) discharge on the ebbtide;

    (5) solid residue materials may not be discharged into the sea areas; they
must be retrieved for disposal;

    (6) entries must be made of discharges in the “navigation logbook”.
Chapter VII  Garbage from Vessels

    Article 27  Garbage from vessels shall not be dumped at will into harbor
waters. Vessels carrying toxic or dusty bulk goods may not wash the decks and
cabins at will in the harbors, or discharge the residue materials in the
harbors in any other ways. If washing is really necessary, applications must
be submitted to the harbor superintendencies in advance for approval.

    Article 28  Any vessel in the harbor that needs to dump garbage shall
raise on board signals as designated by the harbor, and hire garbage
boats/trucks to dispose of it. At the same time the following requirements
must be met:

    (1) the containers for storing and collecting domestic garbage of the
vessel must have covers and may not leak, and dumping must be done at regular
intervals;

    (2) cabin paddings, materials used for sweeping the cabin and various
types of solid garbage shall be dumped by the shipping service departments;
the vessel shall apply to these departments in advance and provide the
information about the types and amounts of the materials to be dumped;

    (3) with respect to the garbage containing toxic or other dangerous
substances, the vessel, in applying for dumping, must provide the names,
nature and amounts of these materials which shall be strictly separated from
other garbage.

    Article 29  With respect to the garbage of vessels from epidemic-affected
ports, applications shall be submitted to the sanitation and quarantine
department for sanitary treatment of the vessels.

    Article 30  Vessels disposing of garbage at sea shall conform to the
following stipulations:

    (1) plastic products may not be cast off into the sea;

    (2) granulated domestic garbage and kitchen wastes of less than 25mm in
diameter may, after pulverization treatment, be cast off beyond 3 nautical
miles from the nearest land; those which have not been thus treated shall be
cast of beyond 12 nautical miles from the nearest land.
Chapter VIII  Use of Vessels to Dump Waste Materials

    Article 31  Any unit that needs to use vessels to dump waste materials
shall submit the document of approval by the State Ocean-ography Bureau or by
its agency to the harbor superintendency of the harbor where shipment starts,
and may go through the visa precedures for the vessels to make their entry and
exit only after verification. If the actual cargoes are found to be not in
conformity with the contents approved, the visa application shall be rejected.

    Article 32  When performing operations of dumping waste materials, the
vessel shall make accurate records of the dumping. After coming back to the
harbor, the vessel shall report in written form to the harbor superintendency.

    Article 33  Foreign vessels may not, in the sea areas under the
jurisdiction of the People’s Republic of China, perform operations of dumping
waste materials including discarding vessels and other means of floatation.
Chapter IX  Surface and Submerged Projects of Ship Repair, Ship Building,
Ship Salvage and Ship Scrapping

    Article 34  Ship repairing, scrapping and salvaging units shall all be
equipped with sufficient anti-pollution equipment and facilities. While
engineering projects are under way with a ship, either above or under water,
precautionary measures shall be adopted to prevent oils, oil mixtures and
other waste materials from polluting the sea areas. The oil-polluted water
from the project on ship above water shall be treated in accordance with the
stipulations of Articles 19 and 20 of these Regulations.

    Article 35  In areas where there are concentrated surface operations of
ship repairs and ship building, enclosures shall be set up to prevent the
floating of oil and paint from spreading and to facilitate the prompt
cleaning. Industrial garbage and other waste materials from the process of
repairing and construction shall not be cast off into the sea, but rather,
they shall be retrieved and treated by the construction units.

    Article 36  In surface ship scrapping, the scraps may not be cast off into
the sea. The bottom of the ship and the oil tank may not be dismantled in the
sea; they must be dragged to the shore for dismantling operations and the
residue oil must be retrieved and disposed of.

    Article 37  In case of marine damage by vessels, or when vessels might
sink, the crew shall, before leaving the vessels, as far as possible shut the
valves of all the piping systems in and stop up the air vents of the oil
cabins (tanks), so as to prevent oil spill. The amount of the oil in stock and
the positions of the air vents shall be clearly stated in the maritime reports.

    Article 38  In conducting ship salvaging project under water, measures
shall be adopted to prevent the spread of oil pollution and emergence of new
pollution.
Chapter X  Compensation for Harm from Pollution Accidents Caused by
Vessels

    Article 39  In case of violation by vessels of the Marine Environmental
Protection Law of the People’s Republic of China and these Regulations that
has caused pollution damage to the marine environment, the harbor
superintendencies may order the payment of a fee for eliminating the
pollution, and compensation for the state’s losses. If the party concerned
does not accept the order, he may bring a suit before the people’s court in
accordance with the stipulation of Article 41 of the Marine Environmental
Protection Law of the People’s Republic of China.

    Article 40  In the event that units or individuals that have suffered
pollution damage as a result of the marine environmental pollution by vessels
demand civil liability compensation, the matter shall be handled in accordance
with the handling procedures stipulated in Article 42 of the Marine
Environmental Protection Law of the People’s Republic of China. Disputes over
liability for and the amount of compensation may be handled by the harbor
superintendencies through conciliation. If a party does not agree, a suit may
be brought before the people’s court; a suit may also be brought directly in
the people’s court. Cases involving foreign vessels may also be solved in
accordance with arbitration procedures.

    Article 41  Any units or individuals that have suffered pollution damage
by vessels and demand compensation, if they wish to have it handled by the
harbor superintendencies, shall as quickly as possible submit a report for
demanding compensation for pollution damage to a nearby harbor
superintendency. This report shall include the following contents:

    (1) the time, location, scope and objects of the pollution damage caused
by vessels, and the meteorological and hydrological circumstances therearound;

    (2) a detailed list of losses caused by the pollution damage (including
aquatic resources and various implements), including the names, quantity, unit
price, method of calculation, and the aquacultural and natural circumstances;

    (3) an appraisal by the relevant scientific research department or
signature by the notary organ in confirmation of the situation of the harm;
and

    (4) the original evidences of the pollution damage, the photographs of the
circumstances therearound, and other supporting documents and materials
relevant to demanding compensation.

    Article 42  Units and individuals that have participated in eliminating
the pollution damage by vessels and those who demand payment of fees for
eliminating the pollution shall, after completion of eliminating the
pollution, submit as quickly as possible a report for demanding payment of
fees for eliminating the pollution to the relevant harbor superintendency;
this report shall include:

    (1) the time, place and the recorded schedule or the extracts from the
“navigation logbook” relevant to the elimination of pollution;

    (2) the quantity of manpower, machines and tools, vessels and eliminating
materials put in, and the unit price and the method of calculating;

    (3) the management, travel and other relevant expenses in organizing the
elimination;

    (4) a report on the results and the situation of the elimination; and

    (5) other relevant evidence and supporting materials.

    Article 43  When a vessel-induced pollution accident occurs in the sea
areas under the jurisdiction of the People’s Republic of China, it shall be
reported as quickly as possible to the nearby harbor superintendency. A report
shall immediately be submitted to the superintendency upon the vessel’s entry
into the first harbor. The matter is then subject to investigation and
handling. Included in the report shall be the time, the location, the scope,
the meteorological and hydrological circumstances, the process, the measures
of rescue and elimination, and the causes and damages of the pollution; other
relevant materials shall be appended.

    Article 44  In case of vessel-induced pollution, the shipowners who
request exemption from liability compensation shall submit to the harbor
superintendency a report, which shall be able to prove that the pollution
damage has been caused entirely by one of the circumstances as listed in
Article 43 of the Marine Environmental Protection Law of the People’s Republic
of China, and that the pollution damage to the marine environment still can
not be avoided despite all prompt and reasonable measures.

    Article 45  The harbor superintendencies may, on the basis of
investigation and study, conduct mediation or, in accordance with the results
of the investigation, handle cases of disputes that concern compensatory
liabilities and the amount of payment due to vessel-induced pollution.
Chapter XI  Penalty and Rewards

    Article 46  With respect to vessels in violation of the Marine
Environmental Protection Law of the People’s Republic of China and these
Regulations that have caused or may cause pollution damage to the sea areas
and harbor areas under the jurisdiction of the People’s Republic of China,
the harbor superintendencies may give a warning or impose a fine on the
shipowner according to the seriousness of the liabilities thereof and the
graveness of the pollution damage.

    Article 47  The maximum amount of a fine on a shipowner is 100,000 RMB
yuan. However, in any of the following cases, the maximum amount of a fine to
be imposed is 1,000 RMB yuan:

    (1) unauthorized use of oil-eliminating agents;

    (2) having no “oils record book” as stipulated;

    (3) making entries that are not up to standard or even false entries in
the “oils record book”;

    (4) obstructing inspection by the harbor superintendencies.

    Crew and other individuals directly responsible shall be given
inculcation, and in serious cases fines may also be imposed, but the maximum
amount of a fine may not exceed 20% of the basic salary of the person in
question.

    Article 48  Cases of vessel-induced pollution, or of pollutant discharge
by vessels in violation of relevant regulations shall, after investigation and
with conclusive evidence, be handled in accordance with stipulations
regardless of whether the party concerned confess or not.

    Article 49  If a party concerned does not accept the decision on the
administrative sanction, the matter shall be handled in accordance with the
stipulation of Article 41 of the Marine Environmental Protection Law of the
People’s Republic of China.

    Article 50  Individuals who, on their own initiative, report and expose
pollution accidents by vessels, actively provide evidence, or adopt effective
measures to reduce pollution damage with outstanding results, shall be
commended and rewarded.

    Article 51  The fines paid by the vessels that caused the pollution damage
or the directly responsible personnel shall all be turned over to the state
treasury as special funds. The money rewards for the relevant personnel
prescribed in Article 50 of these Regulations shall be allocated from state
finance after verification.
Chapter XII  Supple

INTERIM PROVISIONS ON THE LEVYING OF INDUSTRIAL AND COMMERCIAL CONSOLIDATED TAX AND ENTERPRISE INCOME TAX ON FOREIGN CONTRACTORS UNDERTAKING CONSTRUCTION PROJECTS AND PROVIDING LABOR SERVICES

INTERIM PROVISIONS ON THE LEVY OF INDUSTRIAL AND COMMERCIAL CONSOLIDATED TAX AND ENTERPRISE INCOME TAX ON FOREIGN CONTRACTORS UNDERTAKING CONSTRUCTION PROJECTS AND PROVIDING LABOR SERVICES

19970908

The Ministry of Finance

Interim Provisions on the Levy of Industrial and Commercial Consolidated Tax and Enterprise Income Tax on Foreign Contractors Undertaking
Construction Projects and Providing Labor Services

CaiShuiZi [1983] No.149

July 5, 1983

In accordance with Articles 2 and 8 of Industrial and Commercial Consolidated Tax rule, and Article 1 of the Income Tax Law of the
People’s Republic of China Concerning Foreign Enterprises and Article 2 of the rules for the implementation of the law, the following
provisions are hereby formulated to govern on a temporary basis the levy of industrial and commercial consolidated tax and enterprise
income tax on foreign firms, enterprises and other economic establishments (hereinafter referred to as “foreign firms”) for their
operations to contract for construction projects and provide labor services in China.

1.

All income obtained by foreign firms from operations to contract for building, installation, assembly and exploration and other engineering
projects or from providing labor services to related projects shall be subject to industrial and commercial consolidated tax and
enterprise income tax according to relevant tax rules. But the following deductions shall be made in computing the taxable amount:

(1)

The fees for subcontracting part of the projects or labor service to Chinese or other firms.

(2)

The actual advanced payments for the machinery and equipment procured or manufactured outside China for the contracted projects.

(3)

The expenses for data analysis and processing outside China as provided in special contracts signed separately.

2.

Industrial and commercial consolidated tax shall not be levied on income derived from the following labor services before the year
1990. Enterprise income tax shall also be exempted for such incomes, except the labor services relating to the transfer of the proprietary
rights of technical know-how, which is governed by separate provisions.

(1)

The labor service involving technical personnel provided by foreign firms which have signed equipment sales contracts with Chinese
enterprises to direct equipment installation, interpret technical data and train Chinese technical personnel or services in designing
relating to the installation and operation of the equipment.

(2)

Assistance or technical services provided by foreign firms for giving technical guidance, consultancy and technological designs to
technical transformation projects in China’s existing enterprises.

3.

For the operational income derived from contracted projects or labor services involved, which is subject to industrial and commercial
consolidated tax and enterprise income tax in pursuance of Article 1 of the current interim provisions, the foreign firms concerned
shall file tax returns according to relevant tax rules for the examination and tax collection by local tax authorities. For cases
where the period for contractual operations or providing labor services is too short to provide accurate cost and expense documents
and accurately compute the taxable amount of income, the taxable income may be computed upon the decision of local tax authorities
by assessing the profit rate according to the provisions of Article 24 of the Rules for the Implementation of the Income Tax Law
of the People’s Republic of China Concerning Foreign Enterprises. For convenience sake, ten percent of the earnings from construction
projects or labor services may be taken for the time being as the taxable income.

4.

In subcontracting part of contracted projects or labor services to other foreign firms, the foreign firms concerned shall be responsible
for withholding the industrial and commercial consolidated tax payable by the sub-contractors according to the payment for subcontract,
at the same time, they shall also be responsible for withholding enterprise income tax if the taxable income is computed by local
tax authorities by assessing the profit rate. Failure to withhold such taxes within the prescribed time limit or failure to withhold
payable tax shall be dealt with according to the provisions of Articles and 14 and 15 of the Income Tax Law of the People’s Republic
of China Concerning Foreign Enterprises.

5.

Provisions for taxation, tax reduction or exemption specified in the contracts which were signed and became effective before the enforcement
of the current interim provisions shall remain effective until the terms of the contracts expire (extension period is not covered).

6.

If the Chinese government signs agreements on avoidance of double taxation with foreign governments after the current provisions are
published, the provision of the agreements which have become officially valid shall be followed (departments and localities will
be informed in time of such agreements signed between the Chinese and foreign government).



 
The Ministry of Finance
1983-07-05

 






LAW GOVERNING SANITARY PRODUCTION AND HANDLING OF FOODS OF THE PEOPLE’S REPUBLIC OF CHINA

REGULATIONS FOR THE IMPLEMENTATION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1983-09-20 Effective Date  1983-09-20  


Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

Chapter I  General Provisions
Chapter II  Establishment and Registration
Chapter III  Form of Organization and Registered Capital
Chapter IV  Ways of Contributing Investment
Chapter V  Board of Directors and Management Structure
Chapter VI  Introduction of Technology
Chapter VII  Right to the Use of Site and Fees
Chapter VIII  Planning, Purchasing and Selling
Chapter IX  Taxes
Chapter X  Foreign Exchange Control
Chapter XI  Financial Affairs and Accounting
Chapter XII  Staff and Workers
Chapter XIII  Trade Union
Chapter XIV  Duration, Dissolution and Liquidation
Chapter XV  Settlement of Disputes
Chapter XVI  Supplementary Provisions
Notes:

(Promulgated by the State Council on September 20, 1983)(Editor’s Note:

For the revised text, see Decision Concerning the Revision of Article 100 in
Regulations for the Implementation of the Law of the People’s Republic of
China on Chinese-Foreign Equity Joint Ventures Promulgated on January 15,
1986)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to facilitating the
smooth implementation of the Law of the People’s Republic of China on
Chinese-Foreign Equity Joint Ventures (hereinafter referred to as the Law on
Chinese-Foreign Equity Joint Ventures).

    Article 2  Chinese-foreign equity joint ventures (hereinafter referred to
as joint ventures) established within China’s territory in accordance with the
Law on Chinese-foreign Equity Joint Ventures are legal persons in China and are
subject to the jurisdiction of Chinese laws and enjoy protection thereof.

    Article 3  Joint ventures established within China’s territory shall be
able to promote the development of China’s economy and the raising of
scientific and technological levels for the benefit of socialist modernization.
Joint ventures permitted to be established are mainly in the following
industries:

    (1) energy development, the building material, chemical and metallurgical
industries;

    (2) machine manufacturing, instrument and meter industries and offshore oil
exploitation equipment manufacturing;

    (3) electronics and computer industries, and communication equipment
manufacturing;

    (4) light, textile, foodstuffs, medicine, medical apparatus and packaging
industries;

    (5) agriculture, animal husbandry and aquiculture;

    (6) tourism and service trades.

    Article 4  Joint ventures to be applied for their establishment shall lay
stress on economic results and shall comply with one or several of the
following requirements:

    (1) they shall adopt advanced technical equipment and scientific managerial
methods which help increase the variety, improve the quality and raise the
output of products and save energy and materials;

    (2) they shall prove to be conducive to technical renovation of enterprises
and be able to bring about quicker returns and bigger profits with less
investment;

    (3) they shall help expand exports and thereby increase foreign currency
receipts;

    (4) they shall help train technical and managerial personnel.

    Article 5  Application for establishing joint ventures shall not be
approved if they involve any of the following circumstances:

    (1) detriment to China’s sovereignty;

    (2) violation of Chinese Law;

    (3) nonconformity with the requirements of the development of China’s
national economy;

    (4) environmental pollution;

    (5) obvious inequity in the agreements, contracts and articles of
association signed, impairing the rights and interests of one of the parties.

    Article 6  Unless otherwise stipulated, the government department in charge
of the Chinese joint venturer in a joint venture shall be the department in
charge of the joint venture (hereinafter referred to as the department in
charge). If a joint venture has two or more Chinese joint venturers which are
under different departments or from different regions, the departments and
regions concerned shall, through consultation, designate a department in
charge.

    Departments in charge are responsible for providing guidance and assistance
and exercising supervision over the joint ventures.

    Article 7  A joint venture has the right to independently conduct business
operations and management within the scope as prescribed by Chinese laws and
regulations, and by the agreement, contract and articles of association of the
joint venture. The departments concerned shall provide support and assistance.
Chapter II  Establishment and Registration

    Article 8  The establishment of a joint venture in China is subject to
examination and approval by the Ministry of Foreign Economic Relations and
Trade of the People’s Republic of China (hereinafter referred to as the
MOFERT). Upon approval, an Approval Certificate shall be issued by the MOFERT.

    The MOFERT may entrust the people’s governments in the related provinces,
autonomous regions, and municipalities directly under the Central Government or
relevant ministries or bureaus under the State Council (hereinafter referred
to as the entrusted office) with the power to examine and approve the
establishment of joint ventures that comply with the following conditions:

    (1) the total amount of investment is within the limit set by the State
Council and the source of capital of the Chinese venturers has been
ascertained;

    (2) no additional allocation of raw materials by the State is required and
the national balance as to fuel, power, transportation and foreign trade
export quotas is not affected.

    The entrusted office, after approving the establishment of a joint venture,
shall report the same to the MOFERT for the record. An Approval Certificate
shall be issued by the MOFERT.

    (The MOFERT and the entrusted office will hereinafter be generally referred
to as the examining and approving authorities.)

    Article 9  The following procedures shall be followed in the establishment
of a joint venture:

    (1) it is the Chinese joint venturer in a joint venture that shall submit
to its department in charge a project proposal and a preliminary feasibility
study report of the joint venture to be established with foreign joint
venturer. The proposal and the preliminary feasibility study report. upon
examination and approval by the department in charge, shall be submitted to the
examining and approving authorities for final approval. The parties to the
venture shall then conduct work centering around the feasibility study, and
then proceed on this basis, to negotiate and sign joint venture agreement,
contract and articles of association;

    (2) when applying for the establishment of a joint venture, the Chinese
joint venturer is responsible for the submission of the following documents to
the examining and approving authorities:

    (a) a wtitten application for the establishment of the joint venture;

    (b) the feasibility study report jointly prepared by the parties to the
venture;

    (c) joint venture agreement, contract and articles of association signed by
representatives authorized by the parties to the venture;

    (d) list of candidates for chairman and vice-chairman of board of directors
and directors nominated by the parties to the venture;

    (e) written opinions concerning the establishment of the said venture of
the department in charge and the people’s government of the province,
autonomous region or municipality directly under the Central Government where
the joint venture is located.

    The aforesaid documents shall be written in Chinese. Documents (b), (c) and
(d) may be written simultaneously in a foreign language agreed upon by the
parties to the joint venture. Both versions are equally authentic.

    Article 10  Upon receipt of the documents stipulated in Article 9 (2). the
examining and approving authorities shall, within 3 months, decide whether to
approve or disapprove them. Should anything inappropriate be found in any of
the aforementioned documents, the examining and approving authorities shall
demand an amendment within a limited time. Otherwise, no approval shall be
granted.

    Article 11  The applicant shall, within one month as of the receipt of the
Approval Certificate, register with the administrative department for industry
and commerce of the province, autonomous region or municipality directly under
the Central Government in accordance with the provisions of the Measures of the
People’s Republic of China for the Administration of the Registration of
Chinese-Foreign Equity Joint Ventures (hereinafter referred to as registration
administration office). The date of the issuance of its business licence is the
date of the formal establishment of the joint venture.

    Article 12  Any foreign investor who intends to establish a joint venture
in China but is unable to find a specific co-operator in China may submit a
preliminary plan for the joint venture project and entrust the China
International Trust and Investment Corporation (CITIC) or a trust and
investment corporation of a province, autonomous region or municipality
directly under the Central Government, or a relevant government department or
a non-governmental organization, to recommend Chinese co-operators.

    Article 13  The “joint venture agreement” mentioned in this Chapter refers
to the document agreed upon by the parties to the joint venture on some major
points and principles governing the establishment of the joint venture.

    “Joint venture contract” refers to the document agreed upon and concluded
by the parties to the joint venture on their mutual rights and obligations.

    “Articles of association” refers to the document agreed upon by the parties
to the joint venture specifying the purpose, organizational principles and
method of management of the joint venture in compliance with the principles of
the joint venture contract.

    Where the joint venture agreement comes into conflict with the contract,
the latter shall prevail.

    The parties to the joint venture may agree to sign the contract and
articles of association only, without signing an agreement.

    Article 14  A joint venture contract shall include the following main
items:

    (1) the names, the countries of registration, the legal addresses of
parties to the joint venture, and the names, positions and nationalities of the
legal representatives thereof;

    (2) name of the joint venture, its legal address, purpose and the scope and
scale of business;

    (3) total amount of investment and registered capital of the joint venture,
amount, proportion and forms of investment to be contributed by each party to
the joint venture, the time limit for contributing investment, stipulations
concerning incomplete contributions, and assignments of investments;

    (4) the proportion of profit to be shared and losses to be borne by each
party;

    (5) the composition of the board of directors, the distribution of the
number of directors, and the responsibilities, powers and means of employment
of the general manager, deputy general manager and high-ranking managerial
personnel;

    (6) the main production equipment and technology to be adopted and their
source of supply;

    (7) the ways and means of purchasing raw materials and selling finished
products, and the ratio of products sold within Chinese territory to those sold
abroad;

    (8) arrangements for receipts and expenditures in foreign currency;

    (9) principles governing the handling of finance, accounting and auditing;

    (10) stipulations concerning labour management, wages, welfare, and labour
insurance;

    (11) the duration of the joint venture, its dissolution and the procedures
for liquidation;

    (12) the liabilities for breach of contract;

    (13) ways and procedures for settling disputes between the parties to the
joint venture;

    (14) the language(s) used for the contract and the conditions for putting
the contract into force.

    The annex to the contract of a joint venture shall be equally authentic as
the contract itself.

    Article 15  Chinese laws shall apply to the conclusion, validity,
interpretation and execution of a joint venture contract, as well as to the
settlement of disputes.

    Article 16  The Articles of association of a joint venture shall include
the following main items:

    (1) the name of the joint venture and its legal address;

    (2) the purpose, business scope and duration of the joint venture;

    (3) the names, countries of registration and legal addresses of parties to
the joint venture, and the names, positions and nationalities of the legal
representatives thereof;

    (4) the total amount of investment, registered capital of the joint
venture, each party’s investment proportion, stipulations concerning the
assignment of investment, the proportions of profit distribution and losses to
be borne by parties to the joint venture;

    (5) the composition of the board of directors, its responsibilities, powers
and rules of procedure, the term of office of the directors, and the
responsibilities of its chairman and vice-chairman;

    (6) the setting up of management organizations, rules for handling routine
affairs, the responsibilities of the general manager, deputy general manager
and other high-ranking managerial personnel, and the method of their
appointment and dismissal;

    (7) principles governing financial, accounting and auditing systems;

    (8) dissolution and liquidation;

    (9) procedures for amendment of the articles of association.

    Article 17  The agreement, contract and articles of association shall come
into force upon approval by the examining and approving authorities. The same
applies to amendments thereof.

    Article 18  The examining and approval authorities and the registration
administration office are responsible for supervising and checking on the
execution of the joint venture contracts and articles of association.
Chapter III  Form of Organization and Registered Capital

    Article 19  A joint venture is a limited liability company.

    Each party to the joint venture is liable to the joint venture within the
limit of the capital subscribed by it.

    Article 20  The total amount of investment (including loans) of a joint
venture refers to the sum of capital construction funds and the circulating
funds needed for the joint venture’s production scale as stipulated in the
contract and the articles of association of the joint venture.

    Article 21  The registered capital of a joint venture refers to the total
amount of investment registered at the registration administration office for
the establishment of the joint venture. It shall be the total amount of
investment subscribed by parties to the joint venture.

    The registered capital shall generally be represented in Renminbi, or may
be in a foreign currency agreed upon by the parties to the joint venture.

    Article 22  A joint venture shall not reduce its registered capital during
the term of the joint venture.

    Article 23  If one party to the joint venture intends to assign all or part
of its investment subscribed to a third party, consent shall be obtained from
the other party to the joint venture, and approval from the examining and
approving authorities is required.

    When one party assigns all or part of its investment to a third party, the
other party has pre-emptive right.

    When one party assigns its investment subscribed to a third party, the
terms of assignment shall not be more favourable than those to the other party
to the joint venture.

    No assignment shall be effective should there be any violation of the above
stipulations.

    Article 24  Any increase, assignment or other disposal of the registered
capital of a joint venture shall be approved at a meeting of the board of
directors and submitted to the original examining and approving authorities for
approval. Registration procedures for changes shall be handled at the original
registration administration office.
Chapter IV  Ways of Contributing Investment

    Article 25  Each joint venturer may invest in cash or may contribute
buildings, factory premises, equipment or other materials, industrial property,
proprietary technology, or right to the use of a site, appraised at
appropriate prices, as investment. If the investment is in the form of
buildings, premises, equipment or other materials, industrial property or
proprietary technology, the prices shall be determined through consultation by
the parties to the joint venture on the basis of fairness and reasonableness,
or they shall be evaluated by a third party accepted and invited by the parties
to the joint venture.

    Article 26  The foreign currency contributed by the foreign joint venturer
shall be converted into Renminbi according to the exchange rate quoted by the
State Administration of Foreign Exchange Control of the People’s Republic of
China (hereinafter referred to as the State Administration of Foreign Exchange
Control) on the day of its submission or be cross exchanged into the foreign
currency as agreed upon.

    Should the cash Renminbi contributed by the Chinese joint venturer be
converted into foreign currency, it shall be converted according to the
exchange rate quoted by the State Administration of Foreign Exchange Control on
the day of its submission.

    Article 27  The machinery, equipment and other materials contributed as
investment by the foreign joint venturer shall meet the following conditions:

    (1) they are indispensable to the production of the joint venture;

    (2) China is unable to manufacture them, or can manufacture them only at
too high a price, or their technical performance and time of availability
cannot meet the requirement;

    (3) the price fixed shall not be higher than the current international
market price for similar equipment or materials.

    Article 28  The industrial property or proprietary technology contributed
by the foreign joint venturer as investment shall meet one of the following
conditions:

    (1) capable of manufacturing new products urgently needed in China or
products suitable for export;

    (2) capable of markedly improving the performance, quality of existing
products and raising productivity;

    (3) capable of notably saving raw materials, fuel or power.

    Article 29  Foreign joint ventures who contribute industrial property or
proprietary technology as investment shall present relevant documentation on
the industrial property or proprietary technology, including protocopies of the
patent certificates or trademark registration certificates, statements of
validity, their technical characteristics, practical value, the basis for
calculating the price and the price agreement signed with the Chinese joint
ventures. All these shall serve as an annex to the contract.

    Article 30  The machinery, equipment or other materials, industrial
property or proprietary technology contributed by foreign joint venturer as
investment shall be examined and approved by the department in charge of the
Chinese joint venturer and then submitted to the examining and approving
authorities for further approval.

    Article 31  The parties to the joint venture shall pay in all the
investment subscribed according to the time limit stipulated in the contract.
Delay in payment or partial delay in payment shall be subject to a payment of
investment on arrears or a compensation for the loss as defined in the contract.

    Article 32  After the investment is paid by the parties to the joint
venture, a Chinese registered accountant shall verify it and provide a
certificate of verification, in accordance with which the joint venture shall
issue to them investment certificates, which include the following items: name
of the joint venture; date, month and year of the establishment of the joint
venture; names of the joint venturers and the investment contributed; date,
month and year of the contribution of the investment; and date, month and year
of the issuance of investment certificates.
Chapter V  Board of Directors and Management Structure

    Article 33  The highest authority of the joint venture shall be its board
of directors, which shall decide all major issues concerning the joint venture.

    Article 34 (Note 1)  The board of directors shall consist of no less than
three members. The distribution of the number of directors shall be determined
through consultation by the parties to the joint venture with reference to the
proportions of investment contributed.

    The directors shall be appointed by the parties to the joint venture. The
chairman of the board shall be appointed by the Chinese joint venturer and its
vice-chairman by the foreign joint venturer.

    The term of office for the directors is four years. Their term of office
may be renewed with the re-appointment by the parties to the joint venture.

    Article 35  The board of directors shall convene at least one meeting every
year. The meeting shall be called and presided over by the chairman of the
board. Should the chairman be unable to call the meeting, he shall authorize
the vice-chairman or a director to call and preside over the meeting. The
chairman may convene an interim meeting on the suggestion of more than
one-third of the directors.

    A board meeting requires a quorum of over two-thirds of the directors.
Should a director be unable to attend, he may make a proxy authorizing someone
else to represent him and vote in his stead.

    A board meeting shall usually be held at the location of the joint
venture’s legal address.

    Article 36  Decisions on the following items shall be made only after being
unanimously agreed upon by the directors present at the board meeting:

    (1) amendment to the articles of association of the joint venture;

    (2) suspension or dissolution of the joint venture;

    (3) increase in or assignment of the registered capital of the joint
venture;

    (4) merger of the joint venture with other economic organization.

    Decision on other matters may be made according to the rules of procedure
stipulated in the articles of association.

    Article 37  The chairman of the board is the legal representative of the
joint venture. Should the chairman be unable to perform his duties, he shall
authorize the vice-chairman of the board or a director to represent the joint
venture.

    Article 38  A joint venture shall establish a management office which shall
be responsible for the day-to-day management and operations. The management
office shall have a general manager and several deputy general managers who
assist the general manager in his work.

    Article 39  The general manager shall carry out the decisions of the board
meeting and organize and conduct the day-to-day management and operations of
the joint venture. Within the scope of authorization by the board, the general
manager shall, externally, represent the joint venture, and internally, have
the right to appoint and dismiss his subordinates and exercise other powers as
authorized by the board.

    Article 40  The general manager and deputy general managers shall be
engaged by the board of directors of the joint venture. These positions may be
held either by Chinese or foreign citizens.

    At the instance of the board of directors, the chairman, vice-chairman or
other directors of the board may concurrently be the general manager, deputy
general managers or other high-ranking managerial personnel of the joint
venture.

    In handling major issues, the general manager shall consult with the deputy
general managers.

    The general manager or deputy general managers shall not hold posts
concurrently as general manager or deputy general managers of other economic
organizations. They shall not get involved in other economic organizations’
commercial competition against their own joint venture.

    Article 41  In case of graft or serious dereliction of duty on the part of
the general manager, deputy general managers or other high-ranking managerial
personnel, they may be dismissed at any time by a decision of the board of
directors.

    Article 42  Establishment of branch offices (including sales offices)
outside China or in regions of Hong Kong or Macao is subject to approval by the
MOFERT.
Chapter VI  Introduction of Technology

    Article 43  The introduction of technology mentioned in this Chapter refers
to the acquisition of necessary technology by the joint venture by means of
technology transfer from a third party or a joint venturer.

    Article 44  The technology to be introduced to the joint venture shall be
appropriate and advanced and enable the venture’s products to display
conspicuous social economic results domestically or to be competitive on the
international market.

    Article 45  The right of the joint venture to do business independently
shall be maintained when concluding such technology transfer agreements, and
relevant documentations shall be provided by the technology exporting party
with reference to the provisions of Article 29 of these Regulations.

    Article 46  The technology transfer agreements concluded by a joint venture
shall be examined and agreed to by the department in charge of the joint
venture and then submitted for approval to the examining and approving
authorities.

    Technology transfer agreements shall comply with the following
stipulations:

    (1) Fees for the use of technology shall be fair and reasonable. Payments
are generally made in royalties, and the royalty rate shall not be higher than
the obtaining standard international rate, which shall be calculated on the
basis of net sales of the products turned out with the relevant technology or
in other reasonable ways agreed upon by both parties.

    (2) Unless otherwise agreed upon by both parties, the technology exporting
party shall not put any restrictions on the quan

REGULATIONS ON THE CONTROL OF GOLD AND SILVER

Regulations of the PRC on the Control of Gold and Silver

    

(Promulgated June 15, 1983 by the State Council.)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II CONTROL OF GOLD AND SILVER PURCHASES

CHAPTER III CONTROL OF ALLOCATED SALES OF GOLD AND SILVER

CHAPTER IV CONTROL OF MANAGING UNITS AND INDIVIDUAL SILVERSMITHS

CHAPTER V CONTROL OF GOLD AND SILVER TAKEN INTO OR OUT OF THE

PEOPLE’S REPUBLIC OF CHINA

CHAPTER VI AWARDS AND PENALTIES

CHAPTER VII APPENDIX

CHAPTER I GENERAL PROVISIONS

   Article 1. These Regulations are formulated to strengthen control over gold and silver, to guarantee the State’s gold and silver requirements
for its economic development and to outlaw gold and silver smuggling and speculation and profiteering activities.

   Article 2. Reference to gold and silver in these Regulations includes:

(1) gold and silver extracted during the mining of ore deposits and gold and silver as a by-product of smelting;

(2) gold and silver bars, bullion, ingots and powder;

(3) gold and silver coins;

(4) gold and silver articles and gold or silver-based alloy articles;

(5) gold and silver contained in chemical products;

(6) leftover bits and pieces of gold and silver and gold and silver contained in waste residue, waste liquid and waste solids.

Platinum (white gold) shall be controlled in accordance with the relevant regulations of the People’s Republic of China.

Cultural relics containing gold and silver shall be controlled in accordance with the Law of the People’s Republic of China Governing
Cultural Relics.

   Article 3. The State shall pursue a policy of unified control, monopoly purchase and distribution of gold and silver.

The total income and expenditure of gold and silver of State organs, the armed forces, organizations, schools, State enterprises,
institutions and collective urban and rural economic organizations (hereinafter referred to as domestic units) shall be incorporated
into the State plan for the receipt and expenditure of gold and silver.

   Article 4. The People’s Bank of China shall be the State organ responsible for the control of gold and silver in the People’s Republic of China.

The People’s Bank of China shall be responsible for the control of the State’s gold and silver reserves; responsible for the purchase
and sale of gold and silver; work in conjunction with the authority responsible for commodity prices to formulate and administer
a purchase and sales price for gold and silver; work in conjunction with the competent department to examine and approve the operations
(including processing and sales) of units (hereinafter referred to as managing units) dealing in gold and silver products, chemical
products containing gold and silver, the recovery of gold and silver from residual liquid and solid wastes; control and inspect the
gold and silver market and supervise the implementation of these Regulations.

   Article 5. All gold and silver held by domestic units, with the exception of raw materials, equipment, household utensils and mementos which
the People’s Bank of China has permitted to be kept, must be sold to the People’s Bank of China. No gold and silver may be personally
disposed of or kept without authorization.

   Article 6. All gold and silver legally gained by individuals shall come under the protection of the State.

   Article 7. No unit or individual within the territory of the People’s Republic of China shall use gold and silver as a pricing unit. Private
trading of gold and silver and the use of gold and silver as loan or as mortgage property shall be forbidden.

CHAPTER II CONTROL OF GOLD AND SILVER PURCHASES

   Article 8. All gold and silver purchases shall be transacted through the People’s Bank of China. No unit or individual shall purchase gold
and silver unless authorised or entrusted to do so by the People’s Bank of China.

   Article 9. All gold and silver extracted in the course of operations (including the production of ore deposits and as by-products of smelting)
by industrial enterprises, rural commune production units, the armed forces and individuals shall be sold to the People’s Bank of
China. No gold and silver shall be personally sold, exchanged or kept.

All the above-mentioned production units shall, in accordance with the relevant regulations, strengthen control over finished and
semi-finished gold and silver articles in their production process. They may not sell or otherwise dispose of such articles themselves.

   Article 10. The State shall encourage managing units and units that utilise gold and silver to recover gold and silver from associated mineral
ores and from residual liquid and solid wastes.

All the gold and silver recovered by the above-mentioned units must be sold to the People’s Bank of China. Such units may not sell,
exchange or keep any of the said gold and silver. Units that utilise gold and silver may, however, with the permission of the People’s
Bank of China, reuse the recovered gold and silver.

   Article 11. All gold and silver refined by domestic units as a by-product from imported gold, silver or ore materials, with the exception of
gold and silver kept with the permission of the People’s Bank of China or that for re-export following processing, must be sold to
the People’s Bank of China. Such units may not sell, exchange or keep any of the said gold and silver.

   Article 12. All gold and silver sold by individuals must be sold to the People’s Bank of China.

   Article 13. All excavated gold and silver without legal owners shall become State property. No unit or individual shall melt down, destroy
by melting or burning or take possession of the said gold or silver.

All excavated gold and silver without legal owners found by a unit or individual shall be appraised by the local cultural administration
department and, with the exception of any article valued as an historic or cultural relic which shall be handled in accordance with
the Law of the People’s Republic of China Governing Cultural Relics, handed over to the People’s Bank of China, and following evaluation
the sum shall be paid into the Treasury.

   Article 14. All gold and silver confiscated by State organizations in the areas of public security, the judiciary, customs, industrial and commercial
administration, taxation office, and other authorities shall be sold to the People’s Bank of China. It may not be disposed of by
these organizations or replaced by any other material object. In accordance with the relevant regulations, the sale price of the
confiscated gold and silver shall be paid into the Treasury.

CHAPTER III CONTROL OF ALLOCATED SALES OF GOLD AND SILVER

   Article 15. All units that need to use gold and silver shall, in accordance with regulation procedures, file an application with the People’s
Bank of China stating the planned use of the gold or silver and shall be supplied upon its approval.

The People’s Bank of China shall supply the gold and silver in accordance with the approved plan and shall not reduce or delay the
supply at will.

   Article 16. Wholly foreign owned enterprises, Sino-foreign joint ventures and foreign investors operating within the territory of the People’s
Republic of China who purchase gold and silver products or process goods containing gold and silver and thus wish to acquire gold
and silver supplies in China shall make an application according to the specified procedures, to be submitted to the People’s Bank
of China for approval and fulfilment of the request.

   Article 17. All units using gold and silver shall establish a utilization system whereby the amount used for a particular item is strictly controlled
and the surplus returned. Possession of raw gold and silver materials (including semi-finished products) shall not be transferred,
nor shall the said materials be used for any other purpose without the permission of the People’s Bank of China.

   Article 18. The People’s Bank of China shall, within the scope of these Regulations, have the right to supervise and examine all units utilising
gold and silver. The said units shall provide the People’s Bank of China with accurate information concerning operations and their
usage of gold and silver.

CHAPTER IV CONTROL OF MANAGING UNITS AND INDIVIDUAL SILVERSMITHS

   Article 19. All units that have applied to deal in (including processing and sales) gold and silver products, chemical products containing gold
and silver and gold and silver recovered from residual liquid and solid wastes shall, in accordance with the relevant regulations
and procedures for examination and approval set by the People’s Republic of China, be investigated and approved by the People’s Bank
of China and the relevant competent departments. Operations may be begun following registration with the State Administration for
Industry and Commerce and the issuing of a business licence.

   Article 20. Managing units shall operate their gold and silver business within its ratified scope. No unauthorised changes shall be made to
the scope of operations, nor shall gold and silver be embezzled, misappropriated or purchased illegally in the course of operations.

   Article 21. The casting and issuing of gold and silver-based commemorative coins shall be handled by the People’s Bank of China. No other units
shall cast, copy or issue such items.

The export of gold and silver-based commemorative badges (plaques) shall be handled separately by the People’s Bank of China and the
Ministry of Foreign Economic Relations and Trade.

   Article 22. Commission shops and second-hand shops shall not purchase or sell gold and silver articles and equipment. Jewellers may purchase
for export jewel ornaments inlaid with gold and silver, but shall not purchase or sell gold and silver articles and materials. The
People’s Bank of China is responsible for the purchase and supply for the export trade of gold and silver products.

   Article 23. Individual silversmiths in the borderland minority nationality regions and in the coastal areas where relatives of overseas Chinese
live in relatively concentrated communities may, with the approval of the People’s Bank of China at county level or above and the
State Administration for Industry and Commerce, engage in the making and repairing of gold and silver articles for individuals, but
shall not purchase and sell gold and silver articles.

   Article 24. The State shall permit individuals to mail gold and silver ornaments in accordance with specific control methods formulated by People’s
Bank of China and the Ministry of Posts and Telecommunications.

CHAPTER V CONTROL OF GOLD AND SILVER TAKEN INTO OR OUT OF THE PEOPLE’S REPUBLIC OF CHINA

   Article 25. No restriction shall be imposed on the amount of gold and silver brought into the People’s Republic of China, but declaration and
registration must be made to the Customs authorities of the People’s Republic of China upon entry.

   Article 26. Inspection and clearance by the People’s Republic of China Customs of gold and silver taken or retaken abroad shall be made in accordance
with the amount shown on the certificate issued by the People’s Bank of China or the original declaration and registration form made
on entry. All gold and silver without a covering certificate or in excess of the amount declared and registered upon entry shall
not be allowed to be taken out of the country.

   Article 27. Gold and silver ornaments (including gold and silver inlaid work, handicraft articles, household utensils etc.) taken out of the
People’s Republic of China by tourists who have purchased the said article in the People’s Republic of China shall be inspected and
cleared by the People’s Republic of China Customs upon the showing of a “Special Receipt” issued by a Chinese unit dealing in gold
and silver articles. If a “Special Receipt” cannot be produced the article shall not be allowed to be taken out of the country.

   Article 28. When Chinese citizens, foreign nationals or Stateless persons residing in the People’s Republic of China wish to leave the People’s
Republic of China to live permanently abroad the maximum amount per person of gold and silver which may be taken out of the People’s
Republic of China is:

gold ornaments, 1 liang (31.25 grams)

silver ornaments, 10 liang (312.50 grams)

silver utensils, 20 liang (625 grams)

An inspection shall be made by the People’s Republic of China Customs and clearance given only to amounts that conform to regulations.

   Article 29. There shall be no limit placed on the amount of gold and silver imported as raw materials for production by wholly foreign owned
enterprises and Sino-foreign joint ventures. Products for export which contain a relatively high percentage of gold and silver must
first be examined and approved by the People’s Bank of China. Exit clearance shall not be given without the People’s Bank of China’s
ratification or should the amount exceed the approved export quantity.

CHAPTER VI AWARDS AND PENALTIES

   Article 30. Units or individuals who make the following contributions shall be cited or given appropriate material rewards by the State:

(1) those who conscientiously carry out State policies and decrees in relation to gold and silver and make a marked contribution to
the recovery or control of gold and silver;

(2) those who contribute prominently towards the protection of the State’s gold and silver reserves and the struggle against smuggling,
speculation, profiteering and other illegal activities;

(3) those who make contributions to the State by immediately declaring or handing in excavated gold and silver without a legal owner;

(4) those who donate a personal collection of gold and silver to the State.

   Article 31. Violations of these Regulations in the following ways shall, in accordance with the severity of the action, bring penalties imposed
by the People’s Bank of China, the State Administration for Industry and Commerce and Customs authorities within the limits of each
body’s authority.

(1) In relation to violations of Articles 8, 9, 10 and 11 of these Regulations involving the unauthorised purchase, sale, exchange
or possession of gold and silver, the People’s Bank of China or the State Administration for Industry and Commerce may force a purchase
or purchase the gold and silver at a devalued price. Should the case be serious the State Administration for Industry and Commerce
may also impose a fine or simply confiscate the gold and silver.

In addition, the State Administration for Industry and Commerce may withdraw the business licence of any party who violates Article
8, 9, 10 or 11 of these Regulations.

(2) In relation to violations of Article 13 of these Regulations involving the unauthorised melting down, destruction by melting or
burning or the keeping of excavated gold and silver without a legal owner, the People’s Bank of China may recover the material object
or the State Administration for Industry and Commerce may impose a fine.

(3) In relation to violations of Article 17 of these Regulations, involving unauthorised changes to the utilisation of or the transferral
of raw gold and silver materials, the People’s Bank of China may issue a warning or recover the gold and silver already sold. Should
the case be serious a fine may be imposed or supply may be discontinued.

(4) In relation to violations of Articles 19, 20, 21, 22 and 23 of these Regulations, involving unauthorised business operations,
unauthorised changes to the scope of operations, the embezzlement, misappropriation or illegal purchasing of gold and silver, the
State Administration for Industry and Commerce may impose a fine or confiscate the gold and silver. Should the case be serious, the
business licence may be withdrawn and demands made for the operation to close down.

(5) In relation to violations of Article 7 of these Regulations, involving the use of gold and silver as a pricing unit or as a loan
mortgage property or engaging in the private trade of gold and silver, the People’s Bank of China or the State Administration for
Industry and Commerce may force a purchase or purchase the gold and silver at a devalued price. Should the case be serious the State
Administration for Industry and Commerce may impose a fine or confiscate the gold and silver.

(6) In relation to violations of the provisions of Chapter 5 of these Regulations, involving the control of gold and silver taken
into or out of China or as regards any methods used to smuggle gold and silver out of the People’s Republic of China, Customs authorities
shall deal with cases in accordance with these Regulations and the customs laws and regulations of the People’s Republic of China.

(7) In relation to violations of Article 14 of these Regulations, the People’s Bank of China shall purchase the said gold and silver.
The administrative liability of those directly responsible shall be investigated by the relevant unit.

   Article 32. When violations of these Regulations constitute a criminal offence, the judicial organs shall, in accordance with the law, investigate
and determine criminal liability.

CHAPTER VII APPENDIX

   Article 33. Detailed rules for the implementation of these Regulations shall be formulated by the People’s Republic of China in conjunction
with the relevant departments of the State Council.

   Article 34. Necessary adaptations of regulations for the control of gold and silver in the borderland minority nationality regions shall be
formulated in accordance with these Regulations by the relevant county or autonomous region People’s Government, in conjunction with
the People’s Bank of China.

   Article 35. These Regulations shall come into effect from the date of promulgation. All previous procedures for the control of gold and silver
formulated by the relevant departments shall cease to apply henceforth.

    





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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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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