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1993

RULES FOR THE IMPLEMENTATION OF THE METROLOGY LAW

Category  TECHNOLOGICAL CONTROL Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1987-02-01 Effective Date  1987-02-01  


Rules for the Implementation of the Metrology Law of the People’s Republic of China

Chapter I  General Provisions
Chapter II Datum Instruments of Measurement and Standard Instruments of
Chapter III  Measurement Examination and Determination
Chapter IV  Manufacture and Repair of Measurement Instruments
Chapter V  Marketing and Use of Measurement Instruments
Chapter VI  Measurement Supervision
Chapter VII  Measurement Attestation of Agencies for Examination of
Chapter VIII  Measurement Mediation and Arbitrative Examination and
Chapter IX  Fees
Chapter X  Legal Liability
Chapter XI  Supplementary Provisions

(Approved by the State Council on January 19, 1987 and promulgated by

the State Measurement Bureau on February 1, 1987)
Chapter I  General Provisions

    Article 1  These Rules are formulated according to the provisions of the
Metrology Law of the People’s Republic of China.

    Article 2  A system of legal measures is implemented in the country. The
procedures for designating the names and symbols of legal measurement units
and for abolishing the non-legal measurment units shall be implemented
according to the relevant stipulations of the State Council concerning
uniform application of legal measures in our country.

    Article 3  The State develops measurement facilities in a planned way and
fits out measurement agencies at various levels with modern technology and
equipment so that they may serve to promote China’s socialist modernizations,
provide measurement guarantee for our industrial and agricultural production,
the building up of our national defence, scientific experiments, domestic and
foreign trade and the people’s health and safety, and protect the interests of
the State and the people.
Chapter II Datum Instruments of Measurement and Standard Instruments of
Measurement

    Article 4  The following requirements must be met in using datum
instruments of measurement (hereinafter referred to as datum instruments):

    (1) they must pass the appraisement of the State;

    (2) there must be such environmental conditions as required for their
normal operations;

    (3) there must be competent personnel in charge of their safekeeping,
maintenance and application;

    (4) there must be a perfect system of administration.

    Those units which meet the above-mentioned requirements can use datum
instruments only after they pass the examination and approval by the
Measurement Administration under the State Council and receive the relevant
certificate from it.

    Article 5  No unit or individual shall dismantle or refit datum
instruments or suspend the work concerning measurement examination and
determination without the approval of the Measurement Administration under
the State Council.

    Article 6  The measurement values of the datum instruments should be the
same as international measurement values. The Measurement Administration under
the State Council has the right to abolish those datum instruments which are
backward in technology or those instruments whose performance cannot meet the
present requirements.

    Article 7  The following requirements must be met in using standard
instruments of measurement (hereinafter referred to as standard instruments):

    (1) they must pass measurement examination and determination;

    (2) there must be such environmental conditions as required for their
normal operations;

    (3) there must be competent personnel in charge of their safekeeping,
maintenance and application;

    (4) there must be a perfect system of administration.

    Article 8  Public standard instruments function as notaries in exercising
measurement supervision in the society. In designating the public standard
instruments of the highest class in the local areas, the administrative
departments for measurement in the people’s governments above the county level
must apply to the measurement departments immediately above its own level for
examination. The examination of public standard instruments of other classes
may be conducted under the direction of the administrative departments for
measurement of the local people’s governments.

    Those public standard instruments, which have proved up to the
requirements laid down in Article 7 of these Rules and obtained certificates
of examination, shall be used only after the relevant certificates are issued
after the examination and approval by the administrative departments for
measurement of the people’s governments above the county level.

    Article 9  The standard instruments of the highest class in various fields
should be designated by the relevant competent departments under the State
Council and by those in the people’s governments in the provinces, autonomous
regions and the municipalities directly under the Central Government. These
standard instruments must pass the examination by the administrative
department for measurement in the people’s governments at the same level and
those instruments which meet the requirements provided for in Article 7 of
these Rules and obtain certificates of examination may be used only after the
approval by the relevant competent departments.

    Article 10  In designating various standard instruments of the highest
class for their own units, enterprises and institutions must apply for
examination to the administrative departments for measurement which are at the
same levels as their competent departments in the people’s governments.
Township enterprises should apply for examination to the administrative
departments for measurement in the local people’s governments at the county
level. Those instruments which meet the requirements provided for in Article 7
of these Rules and obtain certificates of examination may be used by the
relevant enterprises and institutions, which should report to their competent
authorities for the record.
Chapter III  Measurement Examination and Determination

    Article 11  The units and individuals using standard instruments which
have gone through compulsory examination and determination should apply for
periodic examination and determination to the relevant administrative
department for measurement of the people’s government which has been
responsible for examining the instruments.

    The units and individuals using the working measurement instruments which
have gone through compulsory examination and determination should apply for
periodic examination and determination to the relevant measurement
examination and determination agencies designated by the administrative
departments for measurement of the local people’s governments at the county
(municipality) level. If it cannot be done locally, it is necessary to apply
for periodic examination and determination to the measurement examination and
determination agencies designated by th next higher administrative departments.

    Article 12  Enterprises and institutions should equip themselves with the
facilities for checking and testing measurement instruments commensurate with
their needs in production, scientific research and management and business
operations, formulate specific procedures and regulations concerning
examination and determination, work out detailed catalogues of measurement
instruments of their units and fix the corresponding periods for examination
and determination, and ensure that their measurement instruments which are not
subject to compulsory examination and determination are regularly checked and
tested.

    Article 13  The work of measurement examination and determination shall be
conducted on the principle of economy, rationality and geographical proximity.
and it should not be restricted by administrative divisions and departmental
jurisdiction.
Chapter IV  Manufacture and Repair of Measurement Instruments

    Article 14  Enterprises and institutions applying for Licences for
Manufacturing Measurement Instruments should pass the examination by the
administrative departments for measurement at the same levels with the
competent authorities of the people’s governments in their localities.
Township enterprises should be examined by the administrative departments for
measurement of the local people’s governments at the county level. Those
enterprises and institutions which have obtained licences for Manufacturing
Measurement Instruments by passing the examination are allowed to use the
uniform marks stipulated by the State. Only then may the relevant competent
authorities approve of their production.

    Article 15  Enterprises and institutions which do business in measurement
instruments repairs may apply for examination directly to the administrative
departments for measurement of the local people’s governments at the county
(municipality) level in order to obtain the Licence for Repairing Measurement
Instruments. If it cannot be done locally, applications for examination may
be submitted to the administrative departments for measurement of the people’s
governments at the next higher level. Only those enterprises and institutions
which have obtained Licence for Repairing Measurement Instruments by passing
the examination may be allowed to use the uniform marks stipulated by the
State and start business operations.

    Article 16  The individual industrial and commercial businesses which are
engaged in manufacturing or repairing measurement instruments must have
regular business premises. Those which want to apply for the Licence for
Manufacturing Measurement Instruments or the Licence for Repairing Measurement
Instruments may do so according to the procedures provided for in Article 15 of these Rules. If they move to do business in other
places, they must send the
original licence to the administrative department for measurement of the local
people’s government where they have moved, for verification and approval
before they can apply for new business licences.

    Article 17  The examination for enterprises, institutions or individual
industrial and commercial businesses which apply for the Licence for
Manufacturing Measurement Instruments and the Licence for Repairing
Measurement Instruments consists of the following items:

    (1) production facilities;

    (2) facilities for testing and determining products;

    (3) technical levels of the workers and staff members;

    (4) relevant technical documents and regulations and rules concerning
measurements.

    Article 18  The product design of a new measurement instrument, which has
never been produced in the country, must be appraised before it can be
manufactured. When the product design has been finalized, it is necessary to
go through formalities of model approval and obtain the relevant certificate.
New products whose designs have been finalized in the country but have never
been produced by the producer must be tested and their prototypes be made. A
certificates of quality shall be issued after the test of prototype is passed.
Those measurement instruments which have not obtained model approval or
certificates of quality of their prototypes shall not be allowed to be
produced.

    Article 19  The product design appraisement of a new measurement
instrument shall be conducted by the technical agency authorized by the
measurement administration under the State Council. Prototypes of the
instrument shall be tested by the technical agency authorized by the
administrative department for measurement of the local people’s government at
the provincial level.

    The models of new measurement instruments shall be approved by the
administrative departments for measurement of the local people’s governments
at the provincial level.

    The models approved by such departments can be used as nationally
applicable models after they have been finalized by the measurement
administration under the State Council.

    Article 20  The Units applying for model design appraisement for a new
measurement instrument and prototype testing should provide a prototype of the
new product, and the relevant technical documents and data.

    The units responsible for the appraisement and testing must withhold
secret of the prototype, the technical documents and data provided by the
applicants.

    Article 21  The various relevant competent authorities should strengthen
control over the quality of the measurement instruments manufactured and
repaired by the enterprises and institutions. The administrative departments
for measurement in the people’s governments above the county level are
empowered to carry out supervision and inspection, including sampling and
supervised testing. The measurement instruments without stamps or certificates
of quality or those measurement instruments which have failed to pass the
examination and determination shall not be allowed to leave the factories.
Chapter V  Marketing and Use of Measurement Instruments

    Article 22  Foreign businessmen selling measurement instruments in China
must apply for model approval to the measurement administration under the
State Council according to the provisions in Article 18 of these Rules.

    Article 23  The administrative departments for measurement of the people’s
governments above the county level exercise supervision and inspection over
the measurement instruments sold locally. The instruments without quality
stamps or certificates of quality or the marks of the licence for
Manufacturing Measurement Instruments may not be marketed.

    Article 24  No units or individuals may deal in rejected or defective
spares and components of measurement instruments or use them in assembling and
repairing measurement instruments.

    Article 25  No units or individuals may use in their work the measurement
instruments without quality stamps or certificates or examination and
determination or those instruments which have exceeded the period of
examination and determination or those instruments which have been rejected in
examination and determination. This provision does not apply to the
measurement instruments used in teaching demonstration.
Chapter VI  Measurement Supervision

    Article 26  The responsibilities of the measurement administration under
the State Council and the administrative departments for measurement of the
local people’s governments above the county level in the supervision over and
implementation of the laws and regulations concerning measurement are as
follows:

    (1) carrying out the State policies, measures and regulations concerning
measurement and promoting the adoption of the State legal measurement units;

    (2) making and coordinating development plans for measurement
undertakings, designating datum instruments and public standard instruments,
organizing the transmission of measurement values;

    (3) exercising supervision over the manufacturing, repairing, marketing
and using of measurement instruments;

    (4) conducting measurement attestation, organizing arbitration over
examination and determination and mediating disputes over measurement;

    (5) supervising and checking the implementation of measurement laws and
regulations, and dealing with violations of these laws and regulations in
acordance with the relevant provisions of these Rules.

    Article 27  The measurement control personnel at the administrative
departments for measurement of the people’s governments above the county level
are responsible for measurement supervision and administration. Measurement
inspectors are responsible for circuit checking in the prescribed areas and
places and may, within their stipulated authority, deal, on the spot, with
violations of measurement laws and regulations and mete out administrative
sanctions on the merit of each case.

    Measurement inspectors must pass the examination supervised by the
administrative departments for measurement of the people’s governments above
the county level, which shall appoint the inspectors and issue relevant
certificates.

    Article 28  The agencies for measurement examination and determination set
up according to law by the administrative departments for measurement of the
people’s governments above the county level are legal agencies of the State.
Their responsibilities are: designating datum instruments and public standard
instruments, conducting transmission of measurement values, carrying out
compulsory examination and determination as well as other examination and
determination and testing prescribed by law, drafting regulations concerning
technical specifications to provide technical guarantee for exercising
measurement supervision and handling other matters concerning measurement
supervision.

    Article 29  The personnel in charge of measurement examination and
determination in the State legal agencies for measurement examination and
determination must pass the examinations supervised by the administrative
departments for measurement of the people’s governments above the county level
and must obtain the necessary certificates. The personnel in charge of
measurement examination and determination in other units should pass the
examinations supervised by their higher competent authorities and obtain the
relevant certificates. People without the certificates for measurement
examination and determination may not do the work in this field. The grading
of the technical posts of the personnel in charge of measurement examination
and determination shall be stipulated by the measurement administration under
the State Council in cojunction with the relevant competent authorities.

    Article 30  The administrative departments for measurement of the
people’s governments above the county level may, in the light of actual needs,
authorize the agencies of measurement examination and determination and
technical agencies in the following ways of conduct compulsory examination and
determination and other kinds of examination and determination and testing
within the prescribed scope:

    (1) authorizing professional or regional agencies for measurement
examination and determination to act as legal agencies;

    (2) authorizing the designation of public standard instruments;

    (3) authorizing the agencies for measurement examination and determination
of certain departments or units to conduct compulsory examination and
determination of the relevant measurement instruments used therein;

    (4) authorizing relevant technical agencies to undertake the other tasks
of examination and determination and testing prescribed by law.

    Article 31  Units which have been authorized in accordance with the
provisions of Article 30 of these Rules should abide by the following
stipulations:

    (1) the personnel in charge of examination and determination and testing
in the authorized units must pass the examinations supervised by the
authorizing units;

    (2) the corresponding measurement standards of the authorized units must
be examined and determined according to the datum instruments or the public
standard instruments;

    (3) the authorized units must conduct the authorized work of examination
and determination and testing under the supervision of the authorizing units;

    (4) administrative departments for measurement of the people’s governments
above county level shall conduct mediation and arbitration when the authorized
units become a party to a measurement dispute, which cannot be settled by the
parties themselves through consultation.
Chapter VII  Measurement Attestation of Agencies for Examination of
Product Quality

    Article 32  The agencies for examination of product quality which provide
the society with notarization data must be attested by administrative
departments for measurement of the people’s governments above provincial level.

    Article 33  Measurement attestation of agencies for examination of product
quality covers the following aspects:

    (1) examining and determining measurements and testing the function of
equipments;

    (2) examining and determination measurements and testing the environmental
conditions for the functioning of the equipment and the personnel’s
operational skills;

    (3) measures ensuring the uniformity of measurement values and accuracy,
and systems ensuring the equity and reliability of the data for examination
and determination of measurements.

    Article 34  After receiving applications for attestation from agencies for
examination of product quality, administrative departments for measurement of
the people’s governments above provincial level shall instruct the measurement
examination agencies under their jurisdiction or the authorized technical
agencies to arrange the examinations for the applicants in accordance with the
provisions of Article 33 of these Rules. The administrative departments for
measurement of the people’s governments above provincial level shall issue
certificates for measurement attestation to those applicants who have passed
the examinations. Those who have not obtained the certificates shall not be
allowed to conduct examination of product quality.

    Article 35  Administrative departments for measurement of the people’s
governments above provincial level are empowered to conduct supervision and
inspection over those agencies which have obtained certificates for
measurement attestation according to the provisions of Article 33 of these
Rules.

    Article 36  Agencies for examination of product quality which have
obtained a certificate for measurement attestation should apply for separate
confirmation of measurement attestation for new items, if they deem these
additional examinations necessary, according to the relevant provisions of
these Rules.
Chapter VIII  Measurement Mediation and Arbitrative Examination and
Determination

    Article 37  Administrative departments for measurement of the people’s
governments above county level are responsible for mediation and arbitrative
examination and determination for measurement disputes and may appoint relevant
agencies for measurement examination and determination to conduct arbitrative
examination and determination as entrusted by judicial organs, administrative
organs for contracts, arbitration agencies dealing with cases involving
foreign parties, or other organizations.

    Article 38  No litigant shall change the technical status of the
measurement instruments involved in the dispute in the course of the
mediation, arbitration, and hearing of the cases.

    Article 39  If a party rejects the arbitrative examination and
determination, it may appeal to the administrative departments for measurement
of the people’s governments at the next higher level within 15 days of receipt
of the notice of the arbitrative examination and determination. The
arbitrative examination and determination by the administrative departments
for measurement of the next higher people’s government shall be final.
Chapter IX  Fees

    Article 40  Fees shall be paid for applications for examinations to
designate standard measurement instruments, applications for examination and
determination of measurement instruments to be used, applications for model
approval and prototype instrument testing for manufacturing new measurement
products, applications for the licence for manufacturing and repairing
measurement instruments and applications for measurement attestation and
arbitrative examination and determination. Actual procedures or rates of
charges shall be worked out by the measurement administration under the State
Council in conjunction with the financial and price control departments of
the State.

    Article 41  Fees shall not be charged for the examination and determination
and testing conducted by administrative departments for measurement of the
people’s government above county level in exercising supervision and
inspection. The inspected units have the obligation to provide prototype
instruments and facilities for examination and determination and testing.

    Article 42  The funds needed by the agencies of measurement examination
and determination under the jurisdiction of administrative departments for
measurement of the people’s governments above county level for providing
technical guarantee for implementating measurement laws and regulations and
exercising measurement supervision shall be entered in the budgets of people’s
governments at the various levels in accordance with the provisions in the
State financial administration system.
Chapter X  Legal Liability

    Article 43  Those who violate Article 2 of these Rules by using non-legal
measures shall be ordered to correct their mistakes. If violations have been
contained in publications, orders shall be given to stop their circulations
and a fine of 1,000 yuan or less may be imposed simultaneously.

    Article 44  Those who violate Article 14 of the Measurement Law of the
People’s Republic of China by manufacturing, marketing and importing
measurement instruments of non-legal measures which have been declared
abolished by the State Council and other measurement instruments which have
been prohibited for use by the State Council, shall be ordered to cease these
operations. Their measurement instruments and total amount of illegal gains
shall be confiscated. And a pecuniary penalty ranging from 10% to 50% of their
total illegal gains may be imposed simultaneously.

    Article 45  If any departments, enterprises and institutions conduct
measurement examination and determination with various standard measurement
instruments of the highest class which have not passed the examination of the
relevant administrative departments for measurement of the people’s governments
, they shall be ordered to stop using those instruments and a fine of 1,000
yuan or less may be imposed simultaneously.

    Article 46  If any units fail to apply for examination and determination
for those measurement instruments which are subject to compulsory examinations
and determination, or fail to conduct periodic examination and determination
for other measurement instruments which are not subject to compulsory
examination and determination, or send them to other agencies for periodic
examination and determination or continue to use the instruments which have
been rejected in examination and determination, they shall be ordered to stop
using those instruments and a fine of 1,000 yuan or less may be imposed
simultaneously.

    Article 47  If any units or individuals are engaged in manufacturing and
repairing measurement instruments without Licence for Manufacturing
Measurement Instruments or the licence for Repairing Measurement Instruments,
they shall be ordered to stop their production and operation and to seal up
for safekeeping the measurement instruments which have been manufactured and
those which have been sent for repairing. The total amount of illegal gains
shall be confiscated and a fine ranging from 10% to 50% of the illegal gains
may be imposed simultaneously.

    Article 48  Those who manufacture and market the new measurement products
which have

INTERIM PROVISIONS FOR ADMINISTERING BUSINESS OPERATIONS OF FOREIGN-CAPITAL BANKS AND CHINESE-FOREIGN EQUITY JOINT BANKS IN SPECIAL ECONOMIC ZONES

19960327

The People’s Bank of China

Interim Provisions for Administering Business Operations of Foreign-capital Banks and Chinese-foreign Equity Joint Banks in Special
Economic Zones

the People’s Bank of China

June 17, 1987

Pursuant to the Regulations Governing Foreign-capital Banks and Chinese-foreign Equity Joint Banks in Special Economic Zones of the
People’s Republic of China these Provisions are hereby set forth with a view to strengthening and improving the administration of
business activities of foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks in special
economic zones as well as promoting the development of their business.

Article 1

Operating Funds and Registered Capital

1.

Any branch of a foreign-capital bank shall, within 30 days after receipt of the approval from the People’s Bank of China, submit to
the latter’s local branch in the special economic zone(hereinafter referred to as the SEZ branch) a certificate which evidences an
allocation by its head office of an amount of foreign exchange equivalent to Renminbi 40 million yuan as its operating funds and
which is testified by accountants registered in the People’s Republic of China and accepted by the SEZ branch. The SEZ branch shall,
in the light of specific conditions, decide whether the operating funds should be transferred into China once for all or by installments,
or deposited with any bank outside China. The branch of the foreign-capital bank may apply to the SEZ branch for retransferring outside
China the operating funds transferred into China before.

2.

Any foreign-capital bank or Chinese-foreign equity joint bank shall, within 30 days after receipt of the approval from the People’s
Bank of China, deposit with the SEZ branch an amount of paid-up capital no less than 50% of its registered capital. The SEZ branch
shall pay interest thereon according to relevant provisions. This portion of capital shall not be transferred outside China without
the approval of the SEZ branch. Any foreign bank or Chinese-foreign equity joint bank shall, before having paid the registered capital
in full, set aside from each year’s after-tax profits funds no less than 20% of them ad a reserve fund.

Article 2

Deposits

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may handle Renminbi and foreign currency
deposits within the following scope:

1.

Foreign currency deposits

(1)

Interbank deposits in and outside China;

(2)

Deposits by undertakings, enterprises, social organizations and individuals in foreign countries and the Hongkong and Macao regions;

(3)

Deposits by overseas Chinese enterprises, foreign-capital enterprises, Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures (hereinafter referred to as foreign investment enterprises), foreign embassies and commercial offices, offices of
international organizations, offices of foreign news agencies and representative offices of foreign industrial and commercial enterprises,
foreign nationals, overseas Chinese and Hongkong and Macao compatriots working in the above organs;

(4)

Deposits by foreign nationals, overseas Chinese, Hongkong and Macao compatriots coming to China for a short stay, and foreign experts,
staff members and workers, foreign students and trainees;

(5)

Deposits of the unused portion of foreign currency loans received from foreign-capital banks, branches of foreign-capital banks and
Chinese-foreign equity joint banks by state and collective enterprise or other authorized organs.

2.

Renminbi Deposits

(1)

Deposits by foreign investment enterprise;

(2)

Deposits of the unused portion of Renminbi loans received from foreign-capital banks, branches of foreign-capital banks and Chinese-foreign
equity joint banks by state and collective enterprises or other authorized organs;

(3)

Interbank deposits within China with the sources limited to the Renminbi funds as prescribed in sub-sections (1) and (2) above.

3.

Other Renminbi and foreign currency deposits approved by SEZ branches.

Article 3

Deposit Reserve

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks handling place with local SEZ branches
reserve funds, which may be in terms of the Hongkong dollar or the U.S. dollar and shall be interest free.

The ratio of the foreign currency reserve shall be set and adjusted by the SEZ branch. The formula for calculating the reserve is:
the monthly average balance of total foreign currency deposits (the monthly average balance is the result of the accumulated amount
from the first day to the last day of the month divided by the days of the month) multiplied by the ratio of deposit reserve.

The ratio of the Renminbi deposit reserve shall be worked out in the same way as that of the foreign currency reserve.

Article 4

Loans

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may handle Renminbi and foreign currency
loans within the following scope:

1.

Foreign Currency Loans

(1)

interbank loans in and outside China;

(2)

loans to foreign investment enterprises;

(3)

loans to state and collective enterprises;

(4)

loans to Chinese-capital enterprises outside China, Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures
and enterprises without Chinese capital.

2.

Renminbi Loans

(1)

interbank loans within China with the sources limited to such deposits as prescribed in sub-sections (1) and (2) of Article 2 ;

(2)

loans to foreign investment enterprises;

(3)

loans to state and collective enterprises with the sources exclusively limited to Renminbi funds supplementary to their foreign currency
loans.

The total of foreign currency loans granted by a foreign bank or Chinese-foreign equity joint bank to an enterprise in or outside
China plus amounts of foreign exchange guarantees in the borrowers’ favor shall not exceed 30% of the aggregate amount of its paid-up
capital plus the reserve therefor.

Article 5

Investment

If a foreign-capital bank or Chinese-foreign equity joint bank buys foreign currency bonds and stocks issued by enterprises in and
outside China, the total amount shall not exceed 30% of its paid up capital plus the reserve therefor. There is however no such a
limit to its purchase of foreign currency bonds issued by Chinese financial institutions.

Article 6

Guarantees

The accumulated amount of foreign exchange guarantees issued by any foreign-capital bank or Chinese-foreign equity joint bank plus
its foreign exchange liabilities shall not be over 20 times of the total of its paid-up capital plus the reserve therefor.

Article 7

The Ratio of Liquid Assets

The liquid assets of any foreign-capital bank or Chinese-foreign equity joint bank shall be maintained at over 25% of the total of
its deposits and shall include cash, gold balance of deposits with the SEZ branch, deposits with other banks, bonds of below three
months issued by foreign governments.

Article 8

Remittances

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may handle the following remittances
in foreign exchange:

1.

Inward Remittances

All remittance orders received from foreign countries or the Hongkong and Macao regions shall duly be honored according to the following
provisions:

(1)

If the remittee is a state, collective or individual enterprise, a governmental establishment or a resident in China, the foreign
funds of the remittance shall after settlement be transferred to the SEZ branch according to the regulations;

(2)

If the remittee is a foreign investment enterprise, embassy, or commercial office, an office of any international organization, or
foreign news agency, a foreign financial institution, representative office of an industrial or commercial enterprise in China, or
a foreign national, overseas Chinese, Hongkong or Macao compatriot working for any of the above organs or coming to China for a short
stay, the remittee has the discretion to deposit the proceeds of the remittance (including foreign exchange certificate) or exchange
them for Renminbi. The foreign exchange funds received by the payee bank shall be transferred to the SEZ branch if they are converted
into Renminbi.

2.

Outward Remittances

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may effect all payments for foreign
investment enterprises in connection with their normal business(including payments for imported goods, freights and insurance premiums,
commissions, advertising expenses, trademark registration fees, the principal and interest of foreign currency loans, charges for
technology transfer, etc.), and may remit such payments abroad directly against the payment instruments received from the remitting
enterprises. The following three kinds of outward remittances are subject to prior application to the SEZ branch of the State Administration
of Exchange Control.

(1)

outward remittances for transferring capital out of China;

(2)

outward remittances of the foreign exchange funds possessed by the foreign partners after the wingding up and liquidation of a foreign
investment enterprise according to law;

(3)

outward remittances of their salaries and other lawful incomes by staff members and workers from foreign countries and the Hongkong
and Macao regions.

Article 9

Trade Settlement

Foreign banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may handle the settlement of import and export
transactions within the following scope:

1.

Export: settlement of accounts receivable, negotiation and collection of documentary bills drawn by foreign investment enterprises
ad well ad state and collective enterprises authorized to engage in import and export trade.

2.

Import: settlement of accounts payable, negotiation and collection of documentary bills drown on foreign investment enterprises. As
for state and collective enterprises, it is only limited to such items as are connected with the bank’s foreign currency loans to
them.

The procedures for handling the aforesaid settlement, documentary bills and collections under import and export transactions, for
transferring foreign exchange earnings on export and for approving the use of foreign exchange for import shall be subject to the
regulations concerning the control over trade related foreign exchange revenues and expenditures or other provisions concerned as
formulated by the State Administration of Exchange Control.

Article 10

Miscellaneous

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may engage in buying and selling of
foreign exchange, discounting of bills, buying and selling of stocks and bonds in foreign currencies.

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may act as witness and handle other
trust business.

Foreign-capital banks, branches of foreign-capital banks, Chinese-foreign equity joint banks may handle foreign exchange trust deposits
and deposit box, credit investigation and consultancy.

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may handle the following Renminbi
and foreign currency business on behalf of customers:

1.

acting as agent to exchange foreign currencies and bills and effect payment against credit cards;

2.

acting as agent to handle Renminbi and foreign currency savings deposits for local residents.

The agency contracts on the aforesaid business shall be reported to the SEZ branch for record.

Article 11

Service Charges

Foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks may set forth their respective rates
of charges on all kinds of services offered to customers and shall report their terms and conditions to the SEZ branch for examination
and record.

Article 12

Transfer of founds

Of the foreign exchange funds received by foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint
banks after settling export transactions, documentary bills and collections or acting as agent to exchange foreign currencies, the
portion which must be converted into Renminbi as required by the exchange control regulations shall be transferred to the SEZ branch
on the date of receipt. All foreign exchange funds to be so transferred shall be converted at the middle rate quoted by the State
Administration of Exchange Control.

Article 13

Financial Statements

The accounts of foreign-capital banks, branches of foreign-capital banks and Chinese-foreign equity joint banks shall be audited
by accountants registered in the People’s Republic of China and accepted by the local SEZ branch to which an auditing report shall
be submitted.

Where statements in terms of Renminbi are required, they shall be made out with the amounts in foreign currencies converted into Renminbi
at the buying states quoted by the State Administration of Exchange Control at the end of preceding month, quarter or year and shall
be submitted to the SEZ branch within the time limit as prescribed in the Regulations Governing Foreign-capital banks and Chinese-foreign
equity joint banks in Special Economic Zones of the People’s Bank of China.

Article 14

Inspection

The SEZ branch may send inspectors to oversee and verify the business operations and financial conditions of any foreign-capital bank,
branch of any foreign-capital bank or Chinese-foreign equity joint bank, and offer guidance on its business performance. The inspected
bank shall give cooperation and duly provide its business report financial statements and other pertinent information as may be required
The inspectors shall treat such information and as documents private and confidential.

Article 15

Punishment

Where any foreign-capital bank, any foreign-capital bank branch or Chinese-foreign equity joint bank violates the Regulations Governing
Foreign-capital Banks and Joint Foreign Banks in Special Economic Zones of the People’s Republic of China, any of the exchange control
regulations of China and its SEZ branch may impose sanction of oral or written warning in the light of the seriousness of the case
and the amount involved in the violation, or impose punishments in accordance with such pertinent provisions or regulations as the
Rules For Punishment of Violating Exchange Control.



 
The People’s Bank of China
1987-06-17

 






PROVISIONS FOR SUPERVISION AND CONTROL OVER THE QUALITY OF IMPORT COMMODITIES

CIRCULAR OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE CONCERNING LEGAL QUESTIONS RAISED DURING THE COURSE OF OPERATING A CHINESE-FOREIGN EQUITY JOINT VENTURES

The Ministry of Foreign Economic Relations and Trade

Circular of the Ministry of Foreign Economic Relations and Trade Concerning Legal Questions Raised During the Course of Operating
a Chinese-foreign Equity Joint Ventures

WaiJingMaoFaZi [1987] No.26

December 17, 1987

To the end of September 1987, 3,986 Chinese-foreign equity joint ventures have been established with the approval of the Chinese government
since the implementation of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures and its Implementing
Regulations. During the course of operating Chinese-foreign equity joint ventures, several questions have been raised by the various
regions which are hereby clarified:

1.

Issues concerning the replacement of a certificate of approval

In implementing a contract of a Chinese-foreign equity joint venture, changes to the address of a joint equity enterprise, joint equity
partners, total amount of investment, business scope, installation of the board of directors and the chairperson or vice-chairpersons
of the board of directors frequently occur and involve the contents of the approved agreement, contract and articles of association
and the issued certificate of approval. The provisions of Article 17 of the Regulations for the Implementation of the Law of the
People’s Republic of China on Chinese-foreign Equity Joint Ventures stipulates: “The agreement, contract and articles of association
shall come into force after being approved by the examination and approval authority. The same applies in the event of amendments.
” Therefore, any amendment to the main contents of an agreement, contract or articles of association shall be subject to approval
by the original examination and approval authority. Following approval, a new certificate of approval shall be issued under the number
of the original certificate of approval, and the original certificate of approval shall be recovered. The procedures for amendment
of registration shall then be carried out with the original registration authority by presenting the new certificate of approval.

2.

Issues concerning whether or not the general manager or deputy general manager(s) of a Chinese-foreign equity joint venture shall
be permitted to hold posts concurrently as general manager or deputy general manager(s) of other economic organizations.

The provisions of Article 40 of the Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures stipulates: “The general manager or deputy general manager shall not hold posts concurrently as general manager
or deputy general manager of other economic organizations. They shall not have any connections with other economic organizations
in commercial competition with their own joint venture.”

At present, some foreign general managers of some Chinese-foreign equity joint ventures are concurrently holding the post of general
manager in an overseas enterprise in violation of Chinese laws, and this shall be prevented. “Other economic organizations” as stipulated
in Article 40 of the Detailed Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures shall include economic organizations both inside and outside China.

3.

Issues concerning the limits of authority on examination and approval of an increase of investment in Chinese-foreign equity joint
ventures.

An approved Chinese-foreign equity joint venture which needs to increase investment for the purposes of production and operations
shall, if the sum of the increased investment and the total amount of the original investment exceeds the limits of authority of
the original examination and approval organ, and if the additional investment is part of the same project, submit an agreement to
increase investment together with the original document of approval to the Ministry of Foreign Economic Relations and Trade for examination
and approval.

Matters on the above-mentioned issues concerning Chinese-foreign contractual joint venture enterprises and foreign trade enterprises
which have already been approved shall be handled with reference to the aforesaid principles.



 
The Ministry of Foreign Economic Relations and Trade
1987-12-17

 






MEASURES OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION FOR THE IMPLEMENTATION OF THE APPLICATION FOR IMPORT AND EXPORT LICENSES BY ENTERPRISES WITH FOREIGN INVESTMENT

20011116

The Ministry of Foreign Trade and Economic Cooperation

Measures of the Ministry of Foreign Trade and Economic Cooperation for the Implementation of the Application for Import and Export
Licenses by Enterprises with Foreign Investment

the Ministry of Economic Relations and Trade

January 24, 1987

Article 1

These measures are formulated in accordance with the Regulations for the Implementation of the Law of People’s Republic of China on
Chinese-foreign Equity Joint Ventures of the People’s Republic of China and the Provisions of the State Council on the Encouragement
of Foreign Investment to simplify the procedures for application of import and export licenses so as to facilitate the business operations
of the enterprises with foreign investment.

Article 2

The enterprises with foreign investment shall apply for import licenses for equipment and other materials which are imported as investment
of the foreign partners and require import licenses in accordance with the approved list of imported equipment and materials. The
Chinese customs shall just examine the imported goods which do not require import licenses in accordance with the approved list of
imported equipment and materials.

Article 3

The enterprises with foreign investment may import without import licenses machinery and other equipment (including those requiring
import licenses), vehicles necessary for production (referred to as trucks for transport, special vehicles and vehicles for both
passenger and cargo transport purposes), raw materials, fuel, spare parts, accessories and components which are needed in export-oriented
production, and the customs shall inspect and release them in accordance with the documents approved for the establishment of the
enterprises, contracts or import-export contracts. These imported equipment, production vehicles, materials and accessories can only
be used by the enterprise itself and cannot be sold or transferred in China, in special cases, if the imported raw materials and
parts or the products manufactured with imported raw materials or of the parts are sold in China, the enterprises have to go through
import formalities in accordance with Article 4 .

Article 4

The enterprises with foreign investment which need imports for the purpose of producing goods for domestic sales and domestic business
transactions, must apply for import licenses every six months in accordance with the approved import plan if the equipment and vehicles
for use in production, raw materials, fuel, spare parts, accessories and components to be imported are required for import licenses.
The Chinese customs will examine and release those goods which do not require import licenses according to the documents and contracts
approved for the establishment of the enterprises and the relevant contracts.

Article 5

The provincial departments of foreign economic relations and trade shall be responsible for issuing the import licenses for the non-production
goods, if such goods require import licenses and are imported in a reasonable quantity by the enterprises with foreign investment
for their own use.

Article 6

Enterprises with foreign investments to export their own made products which require export licenses, shall apply for export licenses
every six months in accordance with the approved annual export plan.

Article 7

If enterprises with foreign investment export that they produce and the exports do not need export licenses, the Chinese customs will
examine and release the goods according to the export contracts and other relevant documents.

Article 8

If enterprises with foreign investment export products which are not produced by themselves and require export licenses in order to
ensure their foreign exchange balance of revenue and expenditure, export licenses will be issued in accordance with the approved
documents. The Chinese customs will examine and release those products which do not require export licenses, according to the export
contracts and other documents.

Article 9

Enterprises with foreign investment may apply for import and export licenses to the relevant authorities in charge of issuing licenses,
in accordance with the licenses categories at different levels announced by the Ministry of Foreign Economic Relations and Trade.

Article 10

These measures shall enter into force as of the date of promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation
1987-01-24

 






MEASURES FOR THE CONTROL OF SECURITY IN THE HOTEL INDUSTRY

PROVISION FOR THE ISSUANCE OF THE IMPORT DRUG PERMITS

REGULATIONS ON CONTROL OF ADVERTISEMENTS

Category  ADMINISTRATION FOR INDUSTRY AND COMMERCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1987-10-26 Effective Date  1987-12-01  


Regulations on Control of Advertisements



(Promulgated by the State Council on October 26, 1987)

    Article 1  These Regulations are formulated for the purpose of
strengthening the administration of advertisement, promoting the development of advertisement undertakings and utilizing advertisement
as an effective medium
to serve socialist construction.

    Article 2  These Regulations shall apply to any advertisements published,
broadcast, installed or posted in the People’s Republic of China through such
media or in such forms as the press, broadcasting, television, films, street
nameplates, shop windows, printed matters, neon lights, etc.

    Article 3  The content of an advertisement must be true to facts, sound,
clever and easy to understand and must not cheat users and consumers in
any way.

    Article 4  Monopoly and unfair competition shall be prohibited in
advertising operations.

    Article 5  The administrative organs controlling advertisements shall be
the State Administration for Industry and Commerce and local administrative
departments for industry and commerce at various levels.

    Article 6  Units and self-employed industrialists for businessmen wishing
to engage in advertising businesses (hereinafter referred to as advertising
operators) shall submit applications to administrative departments for
industry and commerce in accordance with these Regulations and the provisions
of other relevant laws and regulations and go through, according to different
circumstances, such formalities as examination, approval or registration:

    (1) for enterprises specializing in advertising business, Business
Licences for enterprises as Legal Persons shall be issued;

    (2) for institutions concurrently engaged in advertising business,
Licences for Advertising Operation shall be issued;

    (3) for self-employed industrialists or businessmen capable of running
advertising businesses, Business Licences shall be issued;

    (4) for enterprises concurrently engaged in advertising business,
applications shall be filed with the relevant departments for change of
business scope registration.

    Article 7  The content of an advertisement to be published, broadcast,
installed or posted shall be kept within the advertiser’s business scope or
the scope permitted by the State.

    Article 8  An advertisement that contains any of the following contents
may not be published, broadcast, installed or posted;

    (1) that violates the laws and regulations of the State;

    (2) that impairs the national dignity of the State;

    (3) that involves designs of the national flag, national emblem or
national anthem or the music of the national anthem of the People’s Republic
of China;

    (4) that is reactionary, obscene, superstitions or absurd;

    (5) that is fraudulent;

    (6) that depreciates products of the same kind.

    Article 9  News media shall provide clear indications for the advertisement
they publish or broadcast. News media may not publish or broadcast
advertisements in the form of news reports nor collect fees for these reports.
Journalists may not solicit advertisements in the name of news coverage.

    Article 10  It shall be forbidden to advertise cigarettes through
broadcast, television, newspapers or periodicals.

    After approval by administrative departments for industry and commerce, it
may be allowed to advertise famous wines and liquors of good quality which
have won prizes at the national, ministerial or provincial level.

    Article 11  Due certificates shall be presented in applying for publishing,
broadcasting, installing or posting advertisements in the following cases:

    (1) for the commodity advertisements concerning standards of quality,
certificates issued by administrative departments in charge of standardization
or by quality inspection agencies, authenticated to be qualified by
metrological verification, above the provincial municipality level shall be
presented;

    (2) for the advertisements which indicate commodities as prize-winners,
certificates of award for the current session or year or for successive
sessions or years shall be presented and classes of prizes and prize-awarding
departments shall also be clearly indicated in the advertisements;

    (3) for the advertisements which indicate post_titles of high-quality
commodities, certificates of high-quality products issued by the relevant
departments shall be presented and clear indications shall also be made in the
advertisements as to when and by which departments the post_titles were conferred
on;

    (4) for the advertisements which indicate patent rights of commodities,
patent licences shall be presented;

    (5) for the advertisements which indicate registered trademarks of
commodities, certificates of trademark registration shall be presented;

    (6) for the advertisements of the products which require production
permits, production permits shall be presented;

    (7) for the advertisements concerning culture, education and public health,
certificates issued by the higher competent authorities shall be presented;

    (8) for the other advertisements which require due certification, papers
issued by relevant government departments or agencies authorized by them shall
be presented.

    Article 12  Advertising operators shall check papers or certificates and
examine the contents of advertisements while undertaking advertising business
or acting as advertising agents. They may not publish, broadcast, install or
post any advertisements which violate the provisions of these Regulations.

    Article 13  For the installation and posting of outdoor advertisements,
local people’s governments shall organize the administrative departments
respectively in charge of industry and commerce, urban construction,
environmental protection and public security in jointly drawing up the plans,
which shall be implemented under the supervision of the administrative
departments for industry and commerce.

    Advertisements may not be installed or posted in controlled areas near
government organs or cultural relics under special protection, nor in areas
where installation and posting of advertisements are prohibited by local
people’s governments.

    Article 14  Rates of charges for advertisements shall be fixed by
advertising operators and reported to local administrative departments for
industry and commerce and to those in charge of price control for the record.

    Article 15  Rates of fees to be charged for acting as agents in
advertising business shall be fixed by state administrative departments for
industry and commerce and those in charge of price control.

    Rates fees to be charged for the use of places and buildings for outdoor
advertisements shall be fixed through consultations by local administrative
departments for industry and commerce with those in charge of price control
and urban construction and reported to local people’s governments for approval.

    Article 16  Advertising operators must, according to the relevant
prescriptions of the State, set up bookkeeping records, pay taxes according to
law and subject themselves to the control and inspection by the administrative
departments respectively in charge of finance, auditing and industry and
commerce.

    Article 17  In undertaking or acting as agents in advertising business,
advertising operators shall sign with advertisers or those who have entrusted
them with the business written contracts that shall stipulate explicitly each
party’s responsibilities.

    Article 18  Advertisers or advertising operators who have violated the
provisions of these Regulations shall be given the following penalties by
administrative departments for industry and commerce according to the
seriousness of the cases:

    (1) stopping advertising;

    (2) making public corrections as ordered;

    (3) circulating a notice of criticism;

    (4) confiscation of the illegal gains;

    (5) fines;

    (6) suspending business for consolidation;

    (7) revocation of the business licences or the licences for advertising
operation.

    If the violations of the provisions of these Regulations are so serious as
to constitute crimes, criminal responsibilities shall be investigated by
judicial organs according to law.

    Article 19  If advertisers or advertising operators disagree with the
penalties decided upon by administrative departments for industry and commerce,
they may apply for a reconsideration to the next higher administrative
departments for industry and commerce within 15 days after receiving penalty
notices. If they still disagree with the decisions made after reconsideration,
they may bring a suit in a people’s court within 30 days after receiving the
reconsideration decisions.

    Article 20  Advertisers or advertising operators who, in violation of the
provisions of these Regulations, have caused losses on the part of their users
and consumers or committed other acts of infringement shall bear the
responsibility for compensation.

    With respect to claims for damages, the claimant may request the
administrative departments for industry and commerce above the county level
for handling. If the parties concerned disagree with the decisions made by
administrative departments for industry and commerce, they may bring a suit in
a people’s court. The claimant may also directly bring a suit in a people’s
court.

    Article 21  These Regulations shall be interpreted by the State
Administration for Industry and Commerce. The rules for implementation shall
be formulated by the State Administration for Industry and Commerce.

    Article 22  These Regulations shall go into effect as of December 1, 1987.
The Interim Regulations on Control of Advertisement promulgated by the State
Council on February 6, 1982 shall be abrogated as of the same date.





CIRCULAR JOINTLY ISSUED BY THE GENERAL OFFICE OF THE STATE COUNCIL AND THE GENERAL OFFICE OF THE CENTRAL MILITARY COMMISSION FOR TRANSMITTING THE REQUEST FOR INSTRUCTIONS SUBMITTED BY THE STATE PHYSICAL CULTURE AND SPORTS

Category  SPORTS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1987-09-19 Effective Date  1987-09-19  


Circular Jointly Issued by the General Office of the State Council and the General Office of the Central Military Commission for
Transmitting the Request for Instructions Submitted by the State Physical Culture and Sports

The Circular
REQUEST FOR INSTRUCTIONS CONCERNING THE STRENGTHENING OF ADMINISTRATION
Note:

Commission and Other Departments Concerning the Strengthening of
Administration of Mountains Open to the outside World

(September 19, 1987)

The Circular

    The Request for Instructions Concerning the Strengthening of
Administration of Mountains Open to the Outside World, which is submitted by
the State Physical Culture and Sports Commission, the Headquarters of the
General Staff of PLA, the Ministry of Foreign Affairs, the National Tourism
Administration and the Chinese Academy of Sciences, has been approved by the
State Council and the Central Military Commission and is hereby transmitted to
you for implementation.
REQUEST FOR INSTRUCTIONS CONCERNING THE STRENGTHENING OF ADMINISTRATION
OF MOUNTAINS OPEN TO THE OUTSIDE WORLD

    Since 1979, China has, upon approval by the State Council, gradually
opened some mountains to the outside world and has received nearly 400 groups
and teams of foreigners who have been to China for mountaineering or tourist
activities. The opening of some mountains has put an end to the state of
estrangement in China’s mountaineering, strengthened the contact between the
Chinese and the international mountaineering circles, intensified the exchange
of mountaineering techniques, and promoted the development of China’s
mountaineering undertakings and tourist industry. However, in the work of
various localities to receive foreign mountaineering groups and teams coming
to China, there exists in varying degrees the tendency of treating the
administration of open mountains as a purely commercial operation, which has
resulted in confusions in such aspects as management system, liaison with
foreign countries, opening of more mountains and service standards. All these
problems call for immediate solution.

    The opening and administration of China’s mountains, especially of those
high mountains situated in the border regions, involve the various aspects of
political, military and diplomatic affairs and require strengthened,
centralized leadership. The various localities, therefore, in addition to
continuing to implement the relevant provisions of the Request for
Instructions Concerning the Opening of Mountains for International
Mountaineering Activities, which has submitted by the State Physical Culture
and Sports Commission and the National Tourism Administration on September 20,
1979 and which has been approved by the State Council, shall comply with the
following provisions:

    1. The opening of any more mountain to the outside world shall be
considered along with the opening of the city or county where the mountain is
located, and shall, with the consent of the people’s government of the
province or autonomous region and the Military Region concerned, be reported
to the State Physical Culture and Sports Commission which shalll announce it
to the outside world after examination and approval after consultation with
the Headquarters of the General Staff of PLA, the Ministry of Foreign Affairs
and the National Tourism Administration. In the absence of the approval by the
aforesaid competent central authorities, no locality may make unauthorized
announcement of the opening of any more mountain.

    2. From now on, with respect to foreign groups and teams coming to China
for such activities as mountaineering, exploration or rock climbing which fall
within the scope of physical culture and sports, the acceptance of their
applications, the arrangement of their plans and itineraries, the signing of
agreements, the issuing of letters or telegrams of invitation and the issuing
of letters or telegrams on matters of visas shall all be submitted for unified
handling to the State Physical Culture and Sports Commission (under the name
of the Chinese Mountaineering Association). For tourist activities in the
mountains, however, the National Tourism Administration shall be responsible
for unified arrangements.

    3. The standards of tourist service charges for cities where the open
mountains are located shall be determined by the State Physical Culture and
Sports Commission in accordance with the pertinent State policies and in
consultation with the National Tourism Administration, the State Adminstration
of Commodity Prices and other departments concerned and shall be implemented
in a unified way. Without permission, no localities may undertake unauthorized
pricing or make unauthorized price readjustments. The revenue derived from the
open mountains shall mainly be used for the development of China’s
mountaineering undertakings. Guarantees shall be made in respect of the
management system to avoid turning the opening of mountains into utterly
commercialized operations.

    4. If foreign groups and teams coming to China for mountaineering,
exploration, rock climbing or competition (including those coming to China for
tourist purposes in the mountains) are also entrusted with tasks of scientific
survey, the host units shall, while applying for the mountaineering permit,
simultaneously submit the subject(s) of the survey and the limits of areas in
which to conduct the survey to the State Physical Culture and Sports
Commission for examination and approval in consultation with the Chinese
Academy of Sciences and the Headquarters of the General Staff of PLA. The
Chinese Academy of Sciences may, depending on the circumstances, directly send
their own personnel or entrust a proper department to send personnel to the
mountain areas to exercise supervision over the foreign groups or teams. It is
imperative to implement strictly the various provisions of the Request for
Instructions Concerning the Opening of Mountains for International
Mountaineering Activities submitted by the State Physical Culture and Sports
Commission and the National Tourism Association on September 20, 1979 and of
its annexes (Note (1)).

    The State Physical Culture and Sports Commission shall, in accordance with
the aforestated principles, conduct a general examination of administration
of the mountains already open to the outside world in conjunction with the
Headquarters of the General Staff of PLA, the Ministry of Foreign Affairs, the
National Tourism Admimstration and the Chinese Academy of Sciences. Cases
involving mountains that have been opened to the outside world without
permission shall be dealt with in accordance with their respective
circumstances.

    If nothing is inappropriate, it is requested that the above be approved
and transmitted to the various localities for implementation.
Note:

    (1) The relevant annexes of the Request for Instructions Concerning the
Opening of Mountains for International Mountaineering Activities submitted by
the State Physical Culture and Sports Commission and the National Tourism
Administration on September 20, 1979, i.e. the Provisions Concerning Foreign
Mountaineering Groups Coming to China for Mountaineering (for Trial
Implementation) and the Measures for Charging Fees from Foreign Mountaineering
Groups Coming to China for Mountaineering (for Trial Implementation), have
become invalid. In effect now are the Provisions Concerning Foreign
Mountaineering Groups or Mountaineering and Tourist Groups Coming to China
for Mountaineering promulgated by the State Physical Culture and Sports
Commission on January 14, 1981 and the Measures for Charging Fees from Foreign
Mountaineering Groups or Mountaineering and Tourist Groups Coming to China for
mountaineering, promulgated by the Chinese Mountaineering Association on
January 1, 1987 – The Editor.





MEASURES ON PURCHASING AND EXPORTING DOMESTIC PRODUCTS TO BALANCE FOREIGN EXCHANGE INCOME AND EXPENSES BY ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Economic Relations and Trade

Measures on Purchasing and Exporting Domestic Products to Balance Foreign Exchange Income and Expenses by Enterprises with Foreign
Investment

the Ministry of Foreign Economic Relations and Trade

January 20, 1987

Article 1

These measures are hereby formulated in accordance with the relevant provisions of the State Council for the purpose of facilitating
enterprises with foreign investment to balance their foreign exchange income and expenses. Upon the approval of their application,
the above-mentioned enterprises are allowed to purchase and export non-resultant domestic products so as to make up for their foreign
exchange deficiencies.

Article 2

In principle, enterprises with foreign investment should balance their foreign exchange income and expenses by exporting the resultant
products of their own enterprises. However, enterprises which have run into temporary difficulties in this regard may apply, within
a certain period of time, for purchasing and exporting nonresultant domestic products (except those subject to unified handling under
the State regulations) so as to balance their foreign exchange income and expenses.

Article 3

An enterprise with foreign investment which complies with Article 2 of the measures and which needs to purchase and export non-resultant
domestic products to balance its foreign exchange income and expenses should first apply to the local provincial department of foreign
economic relations and trade, stating the sum of foreign exchange and the corresponding sum of Renminbi yuan needed the very year
to purchase domestic products for export, and their names, specifications and quantities and their export channels.

Article 4

The approved quantity of non-resultant domestic products to be purchased by an enterprise with foreign investment should be limited
within the amount of foreign exchange needed to make up for what is needed in its production and operation of the year and in helping
the foreign investor to remit its earned profits abroad or in its termination and liquidation.

Article 5

Enterprises with foreign investment which are approved to purchase and export non-resultant domestic products to balance their foreign
exchange income and expenses should mainly purchase products manufactured in the provinces, autonomous regions or municipalities
directly under the Central Government where they are located. If they need to purchase them in other provinces, they should first
have the approval of the provincial-level department of the foreign economic relations and trade of the relevant provinces, autonomous
regions and municipalities.

Article 6

The domestic products purchased by enterprises with foreign investment for export in order to balance the enterprises’ foreign exchange
income and expenses must be shipped out of China and sold abroad, and must not be re-sold within China.

Article 7

Enterprises with foreign investment which are approved to purchase non-resultant domestic products to balance their foreign exchange
income and expenses may export the products by themselves or by China’s foreign trade corporations as their agents.

Article 8

Apart from approving enterprises with foreign investment to purchase domestic products for export, the people’s governments of all
provinces, autonomous regions, municipalities directly under the Central Government and municipalities (regions) separately listed
on the State plan may, with the prerequisite of fulfilling State export targets, organize export of their local products through
specialized foreign trade companies. Of the foreign exchange thus earned and retained by localities in accordance with the relevant
State regulations, some will go to the suppliers of the products according to the stipulated ratios and the rest may be used by local
people’s governments to balance the foreign exchange income and expenses among the enterprises with foreign investment under the
supervision of the local foreign exchange control departments.

Article 9

With regard to the products to be purchased and exported by enterprises with foreign investment as mentioned in Article 3 of the
measures, and those to be exported by people’s governments of provinces, autonomous regions, municipalities directly under the Central
Government and municipalities (regions) separately listed on the State plan as mentioned in Article 8 , the purchase and export of
those commodities which require State export licences or are subject to export quotas should be approved by the Ministry of Foreign
Economic Relations and Trade. That of other commodities should be approved by provincial-level departments of foreign economic relations
and trade and then be submitted to the Ministry of Foreign Economic Relations and Trade for record.

The above-mentioned approving departments should give replies for the applications within one month beginning from the date of receiving
them. Among the approved export products, the export licences required for those that should be exported with licences should be
issued in accordance with the Measures of the Ministry of Foreign Economic Relations and Trade on Applying for Import and Export
Licences by Enterprises with Foreign Investment.

Article 10

These measures shall enter into force as of the date of promulgation.



 
The Ministry of Foreign Economic Relations and Trade
1987-01-20

 






123...8Page 2 of 8

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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