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1990

REGULATIONS ON LABOR MANAGEMENT IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on Labor Management in the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. The present regulations are formulated in accordance with the relevant laws and decrees of the People’s Republic of China.

   Article 2. SEZ enterprises decide their own labor plans and composition of their staff and report to the Xiamen City Bureau of Labor for the
record.

   Article 3. The workers and staff members of an enterprise may be recruited by the enterprise itself or may be recommended by the labor service
company of the special economic zone, and shall be selected by the enterprise through examination on the strength of their individual
qualifications.

Those recruited may undergo a probation period lasting three to six months.

   Article 4. SEZ enterprises should not employ school children or those under 16, and if they recruit those from the rural areas or inland areas,
they must have the approval of the Xiamen City Bureau of Labor.

   Article 5. SEZ enterprises should conclude contracts with workers and staff members for their employment. The labor contract should include
terms on the following: employment, dismissal, resignation of the workers and staff members, contract duration, job responsibilities
in production and other work, wages, rewards and punishment, working time and vacations, labor insurance and welfare, labor protection
and discipline. The labor contracts must be reported to the Xiamen City Bureau of Labor for the record.

   Article 6. SEZ enterprises have the right of management over their own employees in accordance with the terms of the labor contracts. The
employees enjoy all the rights protected by law and stipulated in the contracts.

   Article 7. The structure and scale of wages, and the ways of reward and subsidy for the workers and staff members are determined by the SEZ
enterprises themselves.

   Article 8. The labor insurance system the SEZ practises is one which is provided by a social labor insurance fund.

SEZ enterprises must each contribute every month to a social labor insurance fund the equivalent of 25% of the enterprise’s total
monthly wages of the Chinese workers. Payment of the contribution is to be made to the organization designated by the Xiamen City
People’s Government to be used as pension for the retired, spendings for funerals of those whose death is due to causes other than
accidents, pension for the disabled or for the family of the deceased, medical fee for the retired, and allowance for those waiting
for re-employment after dismissal.

   Article 9. SEZ enterprises should draw a certain amount of money from their profits to be paid into a workers’ welfare fund for such purposes
as welfare, medical care and assistance for those who are in difficulty.

   Article 10. SEZ enterprises must each take out an employer responsibility policy at the insurance company designated by the Xiamen City People’s
Government. On-the-job injuries, disability and deaths and occupational diseases of workers and staff members shall be handled by
the insurance company in accordance with relevant regulations.

   Article 11. SEZ enterprises follow the six-day work-week and eight-hour work-day practice. Overtime work must not be longer than 12 hours a
week and extra pay will not be lower than 150% of the wage of the individual concerned and extra pay for those who work on holidays
will not be lower than 200% of the wage.

   Article 12. Public holidays and paid vacations of the workers and staff members of the SEZ enterprises are as follows:

General holiday: one day per week

Statutory holidays: seven days with pay, namely New Year’s Day (one day), the Spring Festival (three days), the International Labor
Day (one day), and the National Day (two days)

Wedding leave: three days with pay

Maternity leave: not less than 56 days with pay

Sick leave: full pay to those whose sick leave is less than 13 days, and 60%, 70% and 80% of the pay to those whose sick leave is
13 to 24 days and whose length of service is less than ten years, ten to 15 years, and more than 15 years, respectively. The length
of time and the amount of pay shall be decided by the enterprises themselves for the yearly vacation, leave for attending the funerals
of the employee’s next of kin and sick leave exceeding 24 days.

   Article 13. Workers and staff members of the SEZ enterprises have the right to establish grassroots trade union organizations and organize activities
in accordance with the Trade Union Law of the People’s Republic of China.

The main tasks for these trade unions are: to safeguard the legitimate rights of the workers and staff members, help the enterprise
to plan the use of welfare funds, organize sports, cultural and recreational activities for the workers and staff members, educate
them to observe labor discipline and work hard to fulfil the various economic tasks of the enterprise.

The SEZ enterprises should actively support the work of the trade unions, and allocate an equivalent of 2% of the total wages of the
workers and staff members as the trade union fees every month.

   Article 14. A SEZ enterprise may dismiss its workers and staff members in line with its labor contracts, but it must inform the individual concerned,
the enterprise trade union and the SEZ labor service company of the dismissal one month in advance. No dismissal is allowed when
a worker or a staff member is receiving medical care for injuries as a result of on-the-job accidents and occupational diseases,
and for illness and non-accident injuries, and when women workers who are pregnant for more than six months or who are spending their
maternity leave.

When a worker or a staff member is dismissed before or upon the expiration of the labor contract, the SEZ enterprise concerned is
to pay a compensation fee calculated on the basis of the individual’s seniority in the enterprise and average monthly pay of the
six months prior to his resignation.

The norms for the compensation fee are: 50% of the average monthly pay if the individual has worked for less than half a year; one
month’s pay for one year, including those who have worked for more than six months but less than one year; one-and-a-half months’
pay for one year starting from the 11th year for those who have worked for more than ten years.

   Article 15. Workers and staff members may resign according to the labor contract and they should notify the enterprise one month in advance.

Workers and staff members who have worked for less than two years and who have been released for training by the enterprise but want
to resign after training should pay the enterprise a certain amount of training expenses. What the amount should be and other conditions
may be covered by the labor contract.

The SEZ enterprise should submit a list of those who have resigned to the special economic zone’s labor service company.

   Article 16. The employment contract should include regulations on employment, dismissal, resignation, pay, welfare, reward and punishment as
well as social insurance of the foreign and Hongkong, Macao and Taiwan workers and staff members in the enterprise of the zone, and
a duplicate of the contract should be submitted to the Xiamen City Bureau of Labor for the record.

   Article 17. The SEZ enterprises must follow the laws and decrees of the People’s Republic of China on labor protection and special protection
for women workers, guarantee safe operations and health of the workers and staff members, over which the Xiamen City Bureau of Labor
has the right to examine and supervise.

   Article 18. The SEZ enterprise may, according to the seriousness of each case, give the necessary punishment and even dismissal to those workers
and staff members who violate rules and regulations and cause certain consequences. The enterprise should inform the dismissed and
the enterprise trade union of the decision in writing, and report to the Xiamen City Bureau of Labor for the record.

   Article 19. Labor disputes that occur in the SEZ enterprises may be solved by the parties involved through consultation; the enterprise trade
union may take part in the consultation when it deems necessary; those who are involved in the labor disputes may ask for arbitration
from the Xiamen City Bureau of Labor if the disputes cannot be solved; and if those involved are dissatisfied with the arbitration
ruling the case may be brought before the people’s court.

   Article 20. The regulations shall come into force on the date of promulgation.

    





DETAILED RULES FOR THE IMPLEMENTATION OF THE INTERIM REGULATIONS ON LICENSING SYSTEM FOR IMPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONAL REGULATIONS PROMULGATED BY THE STATE COUNCIL OF THE PEOPLE’S REPUBLIC OF CHINA ON REDUCTION AND EXEMPTION OF ENTERPRISES

REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Administration of the Registration of Enterprises in the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. These Regulations are formulated in accordance with the relevant laws and statutory regulations of the People’s Republic
of China.

   Article 2. Enterprises established in the Special Zone must carry out registration procedures with the Xiamen Municipal Industry
and Commerce Administration Bureau. Any enterprise which is not registered will not be permitted to go into operation.

   Article 3. In applying for registration, a Special Zone enterprise shall produce the following documents:

(i) a document of approval issued by the Xiamen Municipal People’s Government or the organ in charge authorised
by the Municipal People’s Government;

(ii) copies of the approved agreement, contract and articles of association signed by the various parties to the enterprises;

(iii) copies of the business licence or other relevant documents issued by the government department in charge in
the country (or region) in which each of the parties to the enterprise is based.

A Special Zone enterprise shall also submit the approval document issued by the relevant department in charge should
its undertaking be classified by the State as a specialised line of business or trade.

   Article 4. In applying for registration, a Special Zone enterprise shall fill out a registration form in triplicate in Chinese
or in both Chinese and foreign languages. The main items to be registered are: the name of the enterprise, the address,
the scope of production or business, the form of production or business, the registered capital, the shares of the respective
joint equity or co-operative parties, or the chairman and vice-chairmen of the board of directors, the general manager
and deputy general manager, or the director and deputy directors of the factory, the number of employees, the number
of foreign employees, the document approving organ, the approval document’s number and date of approval.

   Article 5. Resident representative offices to be established in the Special Zone by foreign enterprises, enterprises run by
Overseas Chinese, or persons from Hong Kong, Macao and Taiwan, and Sino-foreign joint ventures based outside China
shall, within 30 days of the date of approval, register with the Xiamen Municipal Industry and Commerce Administration
Bureau by presenting copies of the approval document and the registration certificate issued by the organ in charge
in the country (or region) in which the enterprise is located or other evidence of credit-worthiness, together with the
representative’s letter of authorisation. Without registration, a resident office will not be permitted to engage
in business activities.

   Article 6. Special Zone enterprises and resident offices are deemed to be officially established on the day on which their business
licence or registration certificate is obtained. Their proper business activities and legitimate rights and interests
are protected by the law of the People’s Republic of China.

   Article 7. A Special Zone enterprise or resident office, shall present its business licence or registration certificate for opening
an account with a bank established in the Xiamen Special Zone and register with the Xiamen Municipal Taxation Bureau
for taxation purposes.

   Article 8. When a Special Zone enterprise changes its name or location, its line of production, increases, decreases or transfers its
registered capital, changes the scope of its production or business, or extends the duration of its contract, the
enterprise shall register the change with the Xiamen Municipal Industry and Commerce Administration Bureau within 30
days of the change being approved by the original examining and approval organ. In the event of the replacement of
an enterprise’s chairman or general manager, the enterprise shall register the change within seven days of the decision
of the board of directors. The registration of other changes shall be submitted in writing to the Xiamen Municipal
Industry and Commerce Administration Bureau at the end of each year.

   Article 9. The registration certificate for a resident office will be renewed every year. When changing the name of the resident
office, the resident representative(s), the scope of operations, the location of the resident office and the
term of residency, the registration of the same shall be made by producing the approval document to the Xiamen Municipal
Industry and Commerce Administration Bureau within seven day of the changes being approved by the original approval organ.

   Article 10. When applying for registration or the registration of changes, Special Zone enterprises or resident offices shall
pay the fee for registration or the registration of changes in accordance with regulations.

   Article 11. Upon the expiry of the term of operations or residency period, or upon the approved pre-term closure or termination of
business, a Special Zone enterprise or resident office shall undertake the cancellation of registration, and hand
in for cancellation the business licence or registration certificate with the Xiamen Municipal Industry and Commerce
Administration Bureau.

   Article 12. The Xiamen Municipal Industry and Commerce Administration Bureau shall examine, verify and give an official reply
to Special Zone enterprises or resident offices, within seven days of receiving the various documents from the enterprises
or offices concerning registration or the registration of changes.

   Article 13. The Xiamen Municipal Industry and Commerce Administration Bureau supervises and inspects Special Zone enterprises
and resident offices in accordance with the law. In the case of violation of these Regulations, the enterprise
or resident office concerned shall, on the basis of the seriousness of each specific case, be given a warning, a fine,
be ordered to suspend operations, or have is business licence or registration certificate revoked. In the case
of suspension of operations or revocation of the business licence or registration certificate, the matter must be
reported to the Xiamen Municipal People’s Government for examination and approval and be filed with the Industry
and Commerce Administration Bureau.

   Article 14. These Regulations will be effective from the date fo promulgation.

    





CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

REGULATIONS ON THE IMPORT OF TECHNOLOGY TO THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Import of Technology to the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. The present set of regulations is drawn up in accordance with relevant laws and decrees of the People’s Republic of China.

   Article 2. The regulations apply to the SEZ enterprises and institutions and other economic organizations (hereinafter referred to as the licensee)
import or transfer of technology with payment from foreign or Hongkong, Macao and Taiwan enterprises, other economic organizations
and individuals (hereinafter referred to as the licensor).

   Article 3. The technology thus acquired must be both practical and advanced, and may bring about marked economic benefits. Technology here
is meant to include:

(1) technology with valid patent right;

(2) technology with its patent right being applied for; and

(3) proprietary technology.

   Article 4. Technology that produces the following effects is forbidden to be imported:

(1) that which harms public order of society or violates social ethics; and

(2) that which undermines ecological balance and harms the environment.

   Article 5. Technology transfer or acquisition may take any of the following forms:

(1) licensing;

(2) technical consultancy or technical service;

(3) using patented technology or proprietary know-how as capital contribution in investment, or entering into joint operation with
the licensee;

(4) compensation trade or co-production; and

(5) projects under contract or other forms.

   Article 6. The licensee (recipient) may enjoy special preferential terms set by the Xiamen City People’s Government if the imported technology
meets one of the following conditions, and may apply to a SEZ-based state bank for low-interest loans or financial assistance:

(1) technology which is examined and proved by the state scientific and research department as up to the world advanced level;

(2) that which can markedly improve the competitiveness of the products on the international market;

(3) that which may bring about marked economic results when applied to the technical upgrading of enterprises; and

(4) that which is indispensable to the requirements of the Xiamen City People’s Government.

   Article 7. In technology acquisition, the licensee should apply in writing to an organization authorized by the Xiamen City People’s Government
and should attach a letter of intent about the technology to be acquired and a report on the feasibility study. When examined and
approved, a contract is to be signed between the licensee and licensor (supplier) and submitted to the higher authorities for approval.
The approval department should reply within 44 days after receipt of the application.

The contract comes into force on the date of approval, and it may be cancelled by the approval department if it is not implemented
within six months. The parties involved are allowed to apply for an extension before expiry if they have a valid reason(s).

   Article 8. Contracts must also have the following provisions apart from those that are generally included in Sino-foreign economic contracts:

(1) definition of key terms;

(2) subject and scope of the technology involved, list of technical information and the date of delivery;

(3) progress of implementation, technical service and technical training;

(4) the use of trademark;

(5) warranty, checking and acceptance of the technology;

(6) the rights and obligations of both sides to use and improve the technology;

(7) secrecy clause;

(8) the way to work out and pay the remuneration for the technology; and

(9) liquidated liabilities (damages).

   Article 9. Invalidation of technology transfer agreement clauses if they are formed to include any of the following provisions:

(1) payment for expired or invalid patent rights;

(2) restrictions on the licensee to licensing-in technology from other sources;

(3) restrictions on improvement or development of the technology in the course of application;

(4) obviously unreasonable conditions attached.

   Article 10. In transferring patented technology of an unexpired life, the licensor should provide the licensee with a manual on the patent and
a duplicate or a copy of the letters patent. The certificate of patent right transfer, if any, should also be provided.

In transferring technology for which the patent is pending, the licensor should provide the licensee with such patent application
documents as the letter of application, a manual on the invention and its abstracts, charts, and the letter requesting proprietary
rights, and a progress report on the application process. Documentary evidence on the right to transfer one’s eligibility, if any,
of patent application should also be provided.

In transferring proprietary know-how, the licensor should provide the licensee with the relevant design blueprints, the rules for
the manufacturing processes, illustrated instructions, technical data, prescriptions, formulae, key equipment, models, samples, list
of materials and materials specifications, operating instructions, detailed regulations on on-site operations, and the relevant information
and data regarding technical demonstrations, on-site guidance, product quality control and inspection procedures, repair procedures
and equipment, and other commercial information.

   Article 11. The licensor should, within the time limit set by the contract, conduct training for the required number of people specified by
the licensee with regard to technology, design, management and marketing so that the licensee may master the full range of the technology
provided.

   Article 12. If the licensor is re-licensing the same technology, the licensee has the right to demand that a duplicate of the original licensing
agreement be provided as well.

   Article 13. If the licensor’s patent lapses before the expiration of the agreement, or the application for patent right is rejected, or if it
is found that the know-how does not belong to the licensor, the licensee has the right to demand for changing or terminating the
agreement. The licensor is to be held responsible for any losses arising therefrom, and answerable to any legal proceedings concerning
the patent rights instituted by the third party concerned.

The licensor should make sure that the technical data are complete, correct and reliable. If, for reasons the responsibility for
which rests solely on licensor himself (herself), the technology is found to be not up to the requirements as stipulated in the contract,
the licensor should bear the responsibility for violations of the contract and for payment of the liquidated damages.

   Article 14. The licensee undertakes to discharge the secrecy clause obligations as stipulated in the contract regarding the imported technology.
In case of violations of the secrecy clause, the licensor has the right to withdraw all the relevant information and data, terminate
the contract, and demand compensation from the licensee for the losses resulting therefrom.

Anyone who has access to the technical secrets because of his (her) duties or job responsibilities must not divulge the secrets or
use them without authorization; violations as such shall be legally accountable.

   Article 15. The relevant department of the Xiamen City People’s Government undertakes the necessary monitoring of and control over the effects
of the transfer and application of the technology. In cases where environmental pollution is found or where the expected technical
and economic targets cannot be reached, the department shall demand that the Xiamen City People’s Government suspend the preferential
terms granted to the parties concerned, and take the appropriate actions to rectify the situations.

   Article 16. The present regulations come into force on the date of promulgation.

    





RULES GOVERNING THE CONTROL OVER INWARD AND OUTWARD-BOUND OCEAN-GOING VESSELS OF FOREIGN REGISTRY OF CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM, GOODS AND PERSONAL EFFECTS BELONGING TO FOREIGN PERSONNEL WORKING IN

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