REGULATIONS OF BANK OF CHINA ON PROVIDING LOANS TO ENTERPRISES WITH FOREIGN INVESTMENT

INTERIM MEASURES CONCERNING STRENGTHENING ADMINISTRATION OF IMPORTS BY AIR

Category	PORT ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-08-25	Effective Date	1987-08-25

Interim Measures Concerning Strengthening Administration of Imports by Air

(Approved and promulgated by the State Council on August 25, 1987)

With the development of China’s foreign trade and economic and
technological exchanges with foreign countries, the amount of imports by air
has increased rapidly and the task of transporting goods from airports has
become increasingly arduous. The following interim measures are formulated in
order to speed up the flow of goods at airports to prevent goods from being
kept too long in storage:

1. When entrusting the foreign trade companies and the industrial trade
companies which are empowered to import the relevant commodities to do the
ordering, the units importing goods through air transport must conscientiously
fill out import orders according to the instructions of the entrusted units.
The full name of the units and the detailed addresses must be written in the
column for the consignee, with the names and telephone numbers of the persons
in charge clearly indicated.

2. When it is necessary to claim damages and demand resupply of goods
from the seller because of lack or loss of imported goods caused by the seller,
the company which did the ordering shall be responsible for the work involved.
If, in special cases, the job must be done by the users themselves, it is
necessary to ask the seller to indicate clearly on the way-bill the number of
the contract and the consignee (if foreign trade transport companies or other
agent transport departments are entrusted to do the job, the names of these
companies or departments shall be indicated) and notify the company which did
the ordering of the goods of the results.

3. Foreign trade companies and industrial trade companies should accept
entrustment for ordering goods within the approved scope of business for handling
imported commodities. They must not accept entrustment from those user units
which have not obtained import licences for the goods. These companies should
examine and verify import orders and write the marks, codes and symbols in
strict accordance with the relevant stipulations. The relevant personnel
should be professionally familiar with the structure of the marks and arrange
the codes strictly according to their order. No such mistakes as reversion,
addition and subtraction may be allowed.

Newly-established foreign trade companies and industrial trade companies
shall apply to the Ministry of Foreign Economic Relations and Trade (or its
Tranport Bureau) for marks and codes within one month of approval for the
establishment. Those companies which have not applied must go through the
formalities within one month of promulgation of these Measures. No units may
be allowed to devise their own codes or borrow the codes of other units. The
Ministry of Foreign Economic Relations and Trade (or its Transport Bureau)
shall conduct regular check-ups of the marks and codes used bv various
companies.

4. When signing contracts of imports by air with foreign businessmen and
companies, foreign trade companies and industrial trade companies should try
to fix FOB prices (prices calculated on the basis that the seller delivers the
goods to the planes designated by the buyer) in the clauses so that our civil
aviation planes and the agencies for air transport of our foreign trade
transport companies or other agent transport companies stationed in foreign
countries will be used as much as possible.

When signing contracts with foreign businessmen and companies, foreign
trade companies and industrial trade companies should take into full
consideration the factors of Customs clearance and transport in China. When
the sellers are requested to write way-bills, bills and receipts, they must
provide consistent marks, codes and the numbers of the contracts, with enough
copies. It is also necessary to ask the sellers to make eye-catching full-size
marks and symbols on the outside packing of the goods.

5. After signing contracts, foreign trade companies and industrial trade
companies shall promptly send copies of the contracts, the licences and other
relevant materials to foreign trade transport companies or other agent
transport companies as certificates for taking over the goods, Customs
clearance and transport.

6. After imported goods arrive at airports by air, transport departments
of the civil aviation administration shall promptly complete the formalities
for handing over the goods to the relevant foreign trade transport companies
and other agent transport companies, with every lot of goods carefully checked.
In case of any lack or damage of the goods or of loss of the whole lot of
goods, transport departments of the civil aviation administration shall sign
and issue certificates.

7. After receiving the goods entrusted for Customs clearance, foreign
trade transport companies or other agent transport companies should go through
the formalities within the time limit prescribed by the Customs. With respect
to the goods which have been entrusted for Customs clearance but are not
armed with adequate number of documents and those goods which have not been
entrusted but belong to the category for which agent transport companies have
the duty to notify the relevant units, these companies should send three
notices or letters of inquiry to the units ordering the goods or the consignee
within the limited Customs clearance period. Upon the arrival of the goods, a
notice of arrival or a letter of inquiry shall be sent; if the goods are not
cleared through the Customs within a month, a notice of pressing for Customs
clearance or a letter of inquiry shall be sent; if the goods are not cleared
through the Customs within two months, another notice of pressing for Customs
clearance or a third letter of inquiry shall be sent. All the notices and
letters shall be sent by registered mail.

With respect to the goods which should be directly handed over to the
consignee by transport departments of the civil aviation administrations, the
departments shall send three notices of pressing for Customs clearance within
two months of the arrival of the goods.

8. In order to find out the real situation to facilitate the Customs
clearance, in case that goods imported by air are not cleared through the
Customs two months after the day when the means of transport were declared for
entry, transport departments of the civil aviation administration, foreign
trade transport companies or other agent transport departments may send
separate applications to the Customs for opening the packing of the goods. The
opening of the packing shall be conducted under the supervision of the
Customs, which shall sign and issue the relevant certificates.

9. Under no excuses may consignees refuse to go through the formalities
concerning Customs clearance and refuse to take delivery of their goods. When
there are good reasons, they should promptly explain to the Customs, transport
departments of the civil aviation administrations, foreign trade transport
companies or other agent transport departments, and complete the job within
three months. During this period, the consignees may declare to the Customs
that they abandon the relevant advertisement material, samples, presents and
those documents of claims for damages which have exceeded the prescribed
period of validity. The goods imported through contracts and those documents
of claims for damages which have not exceeded the prescribed period of
validity may not be abandoned in principle. When there are good reasons for
the abandonment, approval must be obtained from the competent department.

10. The Customs should simplify the formalities and speed up the
examination and clearance of imported goods in the spirit of providing good
service but with strict examination. The imported goods with documents of
approval issued by the State shall be cleared according to the relevant
regulations.

The goods for which damages have been claimed shall be examined and
cleared in accordance with the Stipulations Concerning Imposition of or
Exemption from duties on Imported and Exported Goods Compensated at No Costs
formulated by the General Administration of Customs. If it is difficult for
the consignees to produce the certificates of claims for the examination on
the spot, the Customs may clear the goods first after the consignees provide
necessary guarantee and promise to go through the formalities within the time
limit. With respect to the samples and presents which do not belong to the
category of imported goods restricted by the State but are not supported by
receipts, upon the application of the consignees, the Customs may open the
packing for examination, offer an appraised price and clear the goods with or
without taxes according to the regulations.

11. If consignees fail to declare to the Customs within three months of
the declaration for entry by the means of transport, their imported goods
shall be transferred to the Customs for sale by the transport departments of
the civil aviation administration, foreign trade transport companies or other
agent transport department. The goods should be sold in the principle of
economy and making the best use of everything. Instruments and machinery
equipment should be sold as far as possible to the relevant units.

The money from the sale of such goods, after the deduction of the expenses
for transport, loading and unloading and storage as well as the duties, shall
be returned by the Customs to the consignees upon their applications within
one year of selling. The money shall be turned over to the State treasury if
no one applies for it.

12. Units importing goods, foreign trade companies, industrial trade
companies, foreign trade transport companies and other agent transport
departments as well as the Customs at the airports must all strictly implement
these Measures and should, in accordance with these Measures, establish and
amplify their rules and regulations and clarify post responsibilities.

13. The commissions (or offices) in charge of port affairs in various
regions shall, in accordance with the Interim Provisions for the Scope of
Competence of Local Administrative Organs for Port Affairs issued by the
General Office of the State Council, organize various relevant units at the
ports to jointly check the implementation of these Measures and solve
contradictions promptly through coordinated efforts.

In case that goods have gone bad, documents claiming for damages have
exceeded the prescribed period, or owners of the goods cannot be found because
of clogged airports caused by violations of these Measures, investigations
shall be carried out to pursue the economic and administrative liabilities of
the responsible units or persons.

14. The Leading Group for Port Affairs of the State Council shall, in
conjunction with the Ministry of Foreign Economic Relations and Trade, the
General Administration of Customs, the Civil Aviation Administration of China
and other relevant departments, conduct regular checkups and promptly review
and solve existing problems.

REGULATIONS ON ADMINISTRATIVE PENALTIES FOR PUBLIC SECURITY

Regulations of the PRC on Administrative Penalties for Public Security

(Adopted at the 17th Meeting of the Standing Committee of the Sixth National People’s Congress and promulgated by Order
No. 43 of the President of the People’s Republic of China on September 5, 1986, and effective as of January 1, 1987)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II TYPES AND APPLICATION OF PENALTIES

CHAPTER III ACTS VIOLATING THE ADMINISTRATION OF PUBLIC SECURITY AND

PENALTIES

CHAPTER IV RULING AND ENFORCEMENT

CHAPTER V SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. These Regulations are formulated for the purpose of strengthening the administration of public security, maintaining
social order and public safety, protecting the lawful rights of citizens and guaranteeing the smooth progress of
the socialist modernization.

Article 2. Whoever disturbs social order, endangers public safety, infringes upon a citizen’s rights of the person and encroaches
upon public or private property, if such acts constitute a crime according to the Criminal Law of the People’s
Republic of China, shall be investigated for criminal responsibility; if such acts are not serious enough for criminal punishment
but should be given administrative penalties for public security, penalties shall be given according to these Regulations.

Article 3. These Regulations shall apply to acts violating the administration of public security within the territory
of the People’s Republic of China, except when otherwise stipulated by law.

These Regulations shall also apply to acts violating the administration of public security aboard ships or airborne
vehicles of the People’s Republic of China.

Article 4. In dealing with those who violate the administration of public security, public security organs shall adhere
to the principle of combining education with punishment.

Article 5. Acts caused by civil disputes which violate the administration of public security, such as brawling and
damaging or destroying another person’s property, if the adverse effects are minor, may be handled by public security organs
through mediation.

CHAPTER II TYPES AND APPLICATION OF PENALTIES

Article 6. Penalties for acts violating the administration of public security are divided into three types as follows:

(1) warning;

(2) fine, ranging from a minimum of one yuan to a maximum of two hundred yuan. In cases where Articles 30, 31 and
32 in these Regulations stipulate otherwise, such provisions shall be observed; or

(3) detention, ranging from a minimum of one day to a maximum of fifteen days.

Article 7. Property obtained and contraband seized through acts violating the administration of public security shall be
returned to the owner or confiscated according to relevant provisions. Instruments belonging to the offender
used in acts violating the administration of public security may be confiscated according to relevant provisions.
Detailed measures shall be stipulated separately by the Ministry of Public Security.

Article 8. When losses or injuries are caused by acts violating the administration of public security, the offender shall compensate
for the loss or bear the medical expenses; if the offender is not an able person or is a person of limited ability, unable
to compensate for the loss or bear the medical expenses, his guardian shall make the compensation or bear the medical
expenses according to law.

Article 9. Acts violating the administration of public security committed by a person between fourteen and eighteen years of
age shall be given relatively light penalties; acts violating the administration of public security committed by
a person under fourteen shall be exempted from penalties, but a reprimand may be given and his guardian shall be instructed
to subject the offender to strict discipline.

Article 10. A mentally disordered person who violates the administration of public security at the time when he is
unable to recognize or to control his own conduct shall not be penalized, but his guardian shall be instructed
to keep a strict guard on him and subject him to medical treatment. An intermittently insane person who violates
the administration of public security while in normal mental condition shall be punished.

Article 11. A deaf-mute or blind person who violates the administration of public security due to his physiological defects shall
not be penalized.

Article 12. An intoxicated person who violates the administration of public security shall be penalized.

An intoxicated person who may cause danger to himself or who threatens the safety of others due to his drunken
state shall be restrained until he returns to a sober state.

Article 13. If a person commits two or more acts violating the administration of public security, rulings shall be made
separately but executed concurrently.

Article 14. When acts violating the administration of public security are committed jointly by two or more persons, they shall
be penalized separately according to the seriousness of each person’s case.

Whoever instigates, coerces or induces others to violate the administration of public security shall be penalized
according to the seriousness of the acts he instigates, coerces or induces.

Article 15. For acts violating the administration of public security committed by government offices, organizations, enterprises or institutions,
penalties shall be given to the persons directly responsible; if the acts are committed at the order of persons
in charge of units, such persons shall be penalized at the same time.

Article 16. Penalties for acts violating the administration of public security shall be mitigated or exempted under any of the
following circumstances:

(1) the adverse effects are extremely minor;

(2) when those responsible voluntarily admit their mistakes and correct them in time;

(3) when those responsible were coerced or induced by others.

Article 17. Heavier penalties shall be given for acts violating the administration of public security under any of the following
circumstances:

(1) when acts have caused relatively serious consequences;

(2) when those responsible coerce or induce others or instigate persons under the age of eighteen to violate the administration
of public security;

(3) when those responsible take revenge on the informants or witnesses;

(4) when those responsible have been repeatedly punished and refuse to amend.

Article 18. Acts violating the administration of public security shall not be penalized if they have not been discovered by the
public security organs within six months.

The period of time mentioned in the paragraph above shall be counted from the day the acts violating the administration
of public security are committed or from the day the acts stopped if they are continuous or continuing acts.

CHAPTER III ACTS VIOLATING THE ADMINISTRATION OF PUBLIC SECURITY AND PENALTIES

Article 19. Whoever commits one of the following acts disturbing public order, if it is not serious enough for criminal punishment,
shall be detained for a maximum of fifteen days, fined a maximum of two hundred yuan or given a warning.

(1) disturbing the public order of government offices, organizations, enterprises or institutions, making it
impossible for the work, productive or business operations, medical care, teaching or scientific research to go on smoothly
but not having caused serious losses.

(2) disturbing the public order of stations, wharves, civil airports, markets, bazaars, parks, theatres, entertainment
centers, sports grounds, exhibition halls or other public places;

(3) disturbing the public order of buses, trolleybuses, trains, ships and other public transit vehicles;

(4) gang-fighting, instigating quarrels, taking liberties with women or other indecent behavior;

(5) spreading disruptive rumours and inciting disturbances;

(6) making false reports of dangerous situations and fomenting chaos;

(7) refusing or obstructing state personnel who are carrying out their functions according to law, without resorting
to violence and threat.

Article 20. Whoever commits one of the following acts impairing public security shall be detained for a maximum of fifteen days, fined
a maximum of two hundred yuan or given a warning:

(1) carrying or keeping firearms or ammunition, or committing other acts in violation of firearms control regulations,
but not serious enough for criminal punishment;

(2) making, storing, transporting or using dangerous objects, in violation of regulations concerning the control
of dangerous objects such as explosives, deadly poisons, combustibles and radioactive elements, but not having caused
serious consequences;

(3) illegally manufacturing, selling or carrying daggers, knives with three edges, switchblades or other types of controlled knives;

(4) running hotels, restaurants, theatres, entertainment centers, sports grounds, exhibition halls or other public
places for mass gatherings in violation of safety provisions and refusing to improve after notification by the public security
organs;

(5) organizing mass gatherings, exhibitions, fairs, or other public activities in the fields of culture, entertainment,
or sports without appropriate safety precautions and refusing to improve after notification by the public security
organs;

(6) violating safety regulations concerning ferry boats and ferries and refusing to improve after notification
by the public security organs;

(7) rushing to board a ferry despite dissuasion, causing the ferry boat to be overloaded or forcing the pilot to
navigate under dangerous conditions in violation of safety regulations, when circumstances are not serious enough for
criminal punishment;

(8) digging holes, placing obstacles, damaging, destroying or removing markers on railways, highways, navigation
routes or dams which may affect safe traffic and transportation, when circumstances are not serious enough for criminal punishment.

Article 21. Whoever commits one of the following acts impairing public security shall be fined a maximum of two hundred yuan or given a warning:

(1) establishing or using a civilian shooting range not in accordance with safety regulations;

(2) installing or using electrified wire-nettings without approval, or not in accordance with safety regulations,
without having caused grave consequences;

(3) when setting up a construction site in a place where vehicles and pedestrians pass, installing no covers,
signs or fences for pits, wells, ridges and holes, or intentionally damaging, destroying, or removing covers, signs and fences.

Article 22. Whoever commits one of the following acts infringing upon a citizen’s rights of the person, but not serious enough for
criminal punishment, shall be detained for a maximum of fifteen days, fined a maximum of two hundred yuan or given
a warning:

(1) striking another person, causing slight injury;

(2) illegally limiting others’ personal freedom or illegally breaking into others’ houses;

(3) openly insulting other persons or fabricating stories to slander other persons;

(4) maltreating family members, when the victims thereof ask for disposition;

(5) threatening others’ safety or disturbing others’ normal lives by writing letters of intimidation or by other methods;

(6) coercing or inveigling a person under the age of eighteen to give frightening or cruel performances, ruining
the person’s physical and mental health;

(7) hiding, destroying, discarding or illegally opening another person’s postal articles or telegrams.

Article 23. Whoever commits one of the following acts encroaching upon public or private property, but not serious enough for
criminal punishment, shall be detained for a maximum of fifteen days, given a warning or fined simply or concurrently a maximum
of two hundred yuan:

(1) stealing, swindling or seizing a small amount of public or private property;

(2) starting a riot to seize state-owned, collective-owned and private property;

(3) extorting or demanding with menace public or private property;

(4) intentionally damaging public or private property.

Article 24. Whoever commits one of the following acts impairing the administration of social order shall be detained for a maximum
of fifteen days, fined a maximum of two hundred yuan or given a warning:

(1) knowingly buying stolen goods;

(2) illegally dealing in train tickets, ship tickets, admission tickets for theatrical performances or sports games
or other tickets or certificates, when circumstances are not serious enough for criminal punishment;

(3) taking opium or injecting morphine and other drugs in violation of the government’s prohibition;

(4) disturbing public order or swindling money by way of feudal superstition, when circumstances are not
serious enough for criminal punishment;

(5) driving others’ motor vehicles without permission.

Article 25. Whoever commits one of the following acts, from item one to item three, impairing the administration of social order, shall
be fined a maximum of two hundred yuan or given a warning; anyone committing acts covered in items four through seven
shall be fined a maximum of fifty yuan or given a warning:

(1) hiding, not reporting, and not handing in to the state cultural relics discovered underground, in internal waters,
in territorial waters or other places;

(2) accepting orders to engrave official seals in violation of administrative provisions, but not having
caused serious consequences;

(3) deliberately defacing and damaging cultural relics, scenic spots or historic relics, under protection of the state,
and damaging or destroying sculptures in public places, when circumstances are not serious enough for criminal punishment;

(4) deliberately damaging, destroying or removing without approval street nameplates or traffic markers;

(5) deliberately damaging or destroying street lamps, postboxes, public telephone booths or other public facilities,
when circumstances are not serious enough for criminal punishment;

(6) damaging lawns, flowers, shrubs and trees in violation of relevant regulations;

(7) operating acoustic equipment in cities and towns at too high a volume in violation of the relevant regulations,
disturbing the neighbouring residents work or rest, and refusing to stop such acts.

Article 26. Whoever commits one of the following acts, from item one to item four, violating fire control shall be detained for a maximum
of ten days, fined a maximum of one hundred yuan or given a warning; anyone committing acts in items five
to eight shall be fined a maximum of one hundred yuan or given a warning:

(1) smoking and using open fire in places where there are combustibles and explosive devices, in violation of the prohibitions;

(2) deliberately blocking the passing of fire engines or fire boats, or disturbing order at the scene of a fire, when
circumstances are not serious enough for criminal punishment;

(3) refusing to follow the instructions of the commander at the scene of a fire and hindering fire fighting and rescue work;

(4) causing fire by negligence, but not having caused serious damages or injury;

(5) instigating or coercing others to work at risk of causing fire in violation of safety measures against
fire, but not having resulted in serious consequences;

(6) occupying fire prevention belts, putting up shelters, building houses, digging trenches or building walls blocking
the passage of fire engines in violation of the safety measures against fire;

(7) burying, enclosing or damaging and destroying fire-fighting facilities such as fire hydrants, water pumps,
water towers, cisterns, or using such instruments and equipment for other purposes, and refusing to correct such acts
after being informed by the public security organs;

(8) being in serious potential danger of fire, but refusing to take corrective measures after notification by the
public security organs.

Article 27. Whoever commits one of the following acts, from item one to item six, in violation of traffic regulations shall be detained
for a maximum of fifteen days, fined a maximum of two hundred yuan or given a warning; anyone committing acts
in items seven to eleven shall be fined a maximum of fifty yuan or given a warning:

(1) misappropriating, borrowing or lending vehicle license plates or a driver’s license;

(2) driving a motor vehicle without a license or in an intoxicated condition, or lending a vehicle to a person
who drives without a driving license;

(3) blocking traffic by rallying or demonstrating in cities, violating relevant regulations in disregard of police directions;

(4) deliberately intercepting or boarding vehicles by force or impeding the normal operation of vehicles in disregard of
dissuasion;

(5) deliberately passing through an area when passage is forbidden in express terms by public security organs
at or above the county level, in disregard of dissuasion;

(6) violating traffic regulations so as to cause traffic accidents, when circumstances are not serious enough for criminal
punishment;

(7) driving motor vehicles not examined or sanctioned by traffic administration organs;

(8) driving motor vehicles with parts not up to safety requirements;

(9) driving motor vehicles after drinking alcoholic liquor;

(10) instigating or coercing drivers to violate traffic regulations;

(11) blocking traffic by putting up shelters, building houses, setting up stalls, piling up goods or conducting
other operations without approval of the appropriate department.

Article 28. Whoever commits one of the following acts in violation of traffic regulations shall be fined a maximum of five
yuan or given a warning:

(1) driving a motor vehicle in violation of stipulations concerning loading and speed or in violation of directions
indicated by traffic signs and signals;

(2) breaking of traffic regulations by non-motorized vehicle users or pedestrians;

(3) parking vehicles in places where parking is forbidden in express terms by traffic administration organs;

(4) illegally installing or using special sirens or signal light equipment in motor vehicles.

Article 29. Whoever commits one of the following acts, from item one to item three, in violation of residence control or administration of
resident cards shall be fined a maximum of fifty yuan or given a warning; whoever commits an act in item four or item
five shall be fined a maximum of one hundred yuan or fined:

(1) failing to register for residence or apply for a resident card according to regulations, in disregard
of the notice of the public security organs;

(2) faking a residence registration or assuming another person’s residence registration or resident card;

(3) deliberately altering a residence certificate;

(4) failing to register hotel guests according to regulations;

(5) failing to report and register lodgers according to regulations in letting a house or bed to another person.

Article 30. Prostitution, whoring, pandering or housing prostitution or whoring with a prostitute is strictly forbidden. Whoever
breaks the above ban shall be detained for a maximum of fifteen days, given a warning, made to sign a statement
of repentance or given re-education through labour according to regulations, and may be concurrently fined a maximum
of five thousand yuan. Criminal responsibility shall be investigated if the actions constitute a crime.

Whoring with a girl under the age of fourteen shall be dealt with as rape according to the provisions of Article139 of the
Criminal Law.

Article 31. Planting opium poppy and other raw narcotics in violation of government decrees is strictly forbidden. Whoever violates
the above decree shall be detained for a maximum of fifteen days and may be fined simply or concurrently a maximum
of three thousand yuan, in addition to having his opium poppy and other narcotic plants rooted out; criminal responsibility
shall be investigated if the actions constitute a crime.

Article 32. The following acts are strictly forbidden:

(1) gambling or facilitating gambling;

(2) making, duplicating, selling, lending or distributing pornographic books, pictures, video tapes or other pornographic
objects.

Whoever commits one of the above acts shall be detained for a maximum of fifteen days, fined simply or concurrently
a maximum commits one of the above acts shall be detained for a maximum of fifteen days, fined simply or concurrently
a maximum of three thousand yuan or given re-education through labour according to regulations. Criminal
responsibility shall be investigated if the actions constitute a crime.

CHAPTER IV RULING AND ENFORCEMENT

Article 33. Penalties for acts violating the administration of public security shall be ruled on by the city or county public security
bureaus or sub-bureaus or public security organs equivalent to the county level.

Warnings and fines of a maximum of fifty yuan can be ruled on by local police stations; in rural areas where there is
no local police station, the people’s government of a township or town can be entrusted with the ruling.

Article 34. Warnings and fines of a maximum of fifty yuan involving persons who violate the administration of public security,
or fines exceeding fifty yuan with no objections from the offenders, may be imposed on the spot by the public security officials.

Other penalties for persons who violate the administration of public security shall follow the following procedures:

(1) Summons. A summoning warrant shall be issued by a public security organ when it is necessary to summon an offender. A person
discovered committing an offense may be summoned verbally. Whoever refuses to be summoned or avoids summons without good
reasons shall be summoned compulsorily.

(2) Interrogation. Whoever violates the administration of public security should honestly answer to the interrogation
by public security organs. A written record of the interrogation should be made. After checking the record and finding
no mistake, the person interrogated shall sign or seal the written statement, and the in record and finding no mistake,
the person interrogated shall sign or seal the written statement, and the interrogator shall also sign the same document.

(3) Obtaining evidence. Active support and cooperation shall be rendered by the departments and citizens concerned
to the public security organs in the course of obtaining evidence. Honest statements shall be given by witnesses during
the inquiry, and written statements should be made which shall be signed or sealed by the witnesses after checking
and finding no error.

(4) Ruling. A ruling shall be made according to relevant provisions of these Regulations if the facts
of violating the administration of public security are obvious and evidence is confirmed after interrogation and investigation.

A written ruling on the punishment should be made and declared to the offender immediately. Three copies of such
a ruling shall be made and distributed among the offender himself, his work unit and the local police station of his
permanent abode. The enforcement of the ruling shall be assisted by his work unit and the local police station.

(5) After being summoned to the public security organ, the offender should be interrogated and investigated promptly.
The time of interrogation and investigation shall not exceed twenty-four hours in complicated cases subject to
detainment according to these Regulations.

Article 35. Whoever shall be detained should receive the penalty in a specified detention house over a specified time. Compulsory
detainment shall be used against one who resists enforcement of the punishment.

During the time of detention the detainee’s food costs shall be paid by himself.

Article 36. A fine shall be paid by the offender on the spot to the public security officials or paid to the appointed public security
organs within five days after receiving the notice of fine or written ruling. Failure to pay a fine in time without
good cause shall be punished by an addition of one to five yuan per day. Whoever refuses to pay a fine shall be detained
for a maximum of fifteen days and shall still be subject to the fine.

Receipt for payment of a fine shall be given to the offender by the public security organ or officials as soon as the fine is
received.

The entire fine shall be delivered to the state treasury.

Article 37. A receipt shall be given to the offender after the penalty of confiscation is enforced by the ruling organs. All the
property confiscated shall be delivered to the state treasury. Property stolen, robbed, defrauded or extorted,
with the exception of contraband, shall be returned according to law to the original owners, to be located within six months.

Article 38. Whoever is required by a ruling to make reparations for loss or to bear medical cost shall deliver the cost to the
organ making the ruling for transmission within five days after receiving the written ruling. Payments by instalments
may be accepted if the amount is large. In case the offender denies responsibility, the organs making the ruling
shall notify his work unit to deduct the reparations from his salary or retain his property to be converted into payment.

Article 39. If an offender or victim protests the ruling of the public security organ or the people’s governments of townships or towns,
he may petition to the public security organs at the next higher level within five days after receiving the notice,
and the public security organs at the next higher level shall make a new ruling within five days after receiving
the petition. Whoever protests the ruling of the public security organ at the next higher level may file suit with
the local people’s court within five days after the notice.

Article 40. The original ruling shall continue to be executed during the time a petition or suit against the penalty for violating
the administration of public security is taking place.

In case a guarantor can be found or bail has been paid according to regulations by the detainee or his
family, the original ruling can be suspended temporarily during the time a petition or suit is taking place. When
the ruling is revoked or starts to be enforced, the bail shall be returned according to regulations.

Article 41. In implementing these Regulations, the public security officials should strictly abide by laws and disciplines and
impartially implement the provisions, allowing no favouritism and fraudulent practices. It is forbidden to beat or abuse,
mistreat or insult the offender. An administrative disciplinary sanction shall be incurred against those who break
the above mentioned provision. If such actions constitute a crime, criminal responsibility shall be investigated.

Article 42. The public security organs shall admit their mistakes to those who are punished by mistake and return fines and
the confiscated property; in case the legal rights and interests of those who are so punished have been infringed
upon, the loss shall be compensated for.

CHAPTER V SUPPLEMENTARY PROVISIONS

Article 43. In numerical phrases containing the words ” for a minimum of, ” ” for a maximum of ” or ” within ” used in these Regulations,
the indicated numbers are understood to be included in the time limit.

Article 44. The enforcement measures for dealing with acts of violating traffic regulations shall be formulated separately by the State
Council.

Article 45. These Regulations shall go into effect on January 1, 1987. On the same day, the Regulations of the People’s
Republic of China Concerning Administrative Penalties for Public security, promulgated on October 22, 1957, shall be invalidated.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON TECHNOLOGY CONTRACTS

PROVISIONS CONCERNING STRICT FORBIDDANCE ON ACCEPTANCE OF REBATES AND TIPS IN HANDLING TOURIST BUSINESS

Category	TOURISM	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-08-17	Effective Date	1987-08-17

Provisions Concerning Strict Forbiddance on Acceptance of Rebates and Tips in Handling Tourist Business

(Approved by the State Council on August 2, 1987 and promulgated by the

National Tourism Administration on August 17, 1987)

Article 1 These Provisions are formulated in order to promote cultural
and ideological progress of the contingent of workers and staff members in the
tourist industry, to fight against the improper acts of accepting, without
permission, rebates and tips in handling tourist business, to defend the
reputation of our tourist industry so as to ensure its further development.

Article 2 Workers and staff members in the tourist industry shall not ask
for, or accept, without permission, rebates (including various negotiable
securities, material objects and other remuneration).

With respect to those who have committed one of the following acts in
violation of the provisions in the preceding paragraph, the tourism
administration department shall impose punishments depending on the
seriousness of the cases:

(1) In case that the amount of rebates the violator has privately asked
for or accepted is 500 yuan or less, the illegal gain shall be confiscated,
and a fine equal to the illegal gain, or less, may concurrently be imposed;
and, at the same time, an administrative warning shall be given, or a demerit
be recorded.

(2) In case that the amount of rebates the violator has privately asked
for or accepted is above 500 and below 1,000 yuan, the illegal gain shall be
confiscated, and a fine equal to two times as much, or less, as the illegal
gain may concurrently be imposed, and, at the same time, the punishment of
probation on job shall be imposed.

(3) In case that the amount of rebates the violator has privately asked
for or accepted is above 1,000 yuan, the illegal gain shall be confiscated,
and, at the same time, the punishment of dismissal from office shall be
imposed.

Article 3 Business operating units that receive tourists, such as stores,
restaurants and automobile companies, shall not pay rebates to individuals in
business operations.

With respect to those who have committed one of the following acts in
violation of the provisions in the preceding paragraph, the tourism
administration department, shall, in consultation with the competent
authorities, impose punishments depending on the seriousness of the cases:

(l) In case that the amount of rebates a violator has paid on his/her own
initiative to an individual is 1,000 yuan or less, a fine equal to two times
as much, or less, as the amount of rebates shall be imposed on the violator;
and the competent authorities shall impose disciplinary sanction on the
violator, and also on the person who is in charge of the business operating
unit.

(2) in case that the amount of rebates a violator has paid on his/her own
initiative to an individual is above 1,000 and below 2,000, a fine equal to
three times as much, or less, as the amount of rebates shall be imposed; and
the competent authorities shall impose disciplinary sanction on the violator,
and also on the person who is in charge of the business operating unit.

(3) In case that the amount of rebates a violator has paid on his/her own
initiative to an individual is above 2,000 yuan, the tourism administration
department may, in addition to imposing punishment in accordance with the
provisions in item (2) of this Article, order the business operating unit to
cease business operations for rectification, or, the administrative department
for industry and commerce shall revoke the violator’s business licence in
accordance with the law.

Article 4 Workers and staff members in the tourist industry shall not ask
for, or accept, tips from tourists; and they shall not accept any tips given
by tourists on the latter’s own initiative, either.

In case that tourists present gifts on their own initiative, the gifts
should be declined; gifts that are difficult to be declined shall be handled
in accordance with the provisions of the State concerning gifts.

Article 5 With respect to those who have committed one of the following
acts in violation of the provisions of Article 4 of these Provisions, the
tourism administration department shall impose punishment:

(1) In case that the violator has accepted tips without asking for them on
his/her own initiative, he/she shall be criticized, and the tips he/she has
accepted shall be confiscated.

(2) In case that the violator has asked for tips on his/her own
initiative, or has so hinted by deliberately making things difficult for
tourists and has thus produced very bad effect, the tourism administration
department shall impose disciplinary sanction on the violator, and, at the
same time, impose a fine equal to three times as much, or less, as the tips
that the violator has accepted; if the case is extremely abominable and has
caused grave consequences, the punishment of probation on job or even
dismissal from office may be imposed on the violator, depending on the
seriousness of the case.

Article 6 With respect to those who have violated the provisions in
Articles 2, 3, and 4, if the case is so serious as to constitute a crime, the
violator’s criminal responsibility shall be investigated by judicial organs in
accordance with the law.

Article 7 Those who have been discharged from office on account of having
privately asked for or accepted rebates or tips, shall not be reemployed as
staff members or workers in the entire tourist industry.

Article 8 Those who have observed the disciplines, declined rebates and
tips, and served tourists warm-heartedly and have thus been praised by
tourists, shall be given moral encouragement and material rewards.

Article 9 Fines, and illegal gains and objects confiscated, shall be
handled in accordance with the pertinent provisions of the State.

Article 10 The tourism administration department shall be responsible for
supervising the implementation of these Provisions. The administrative
department for industry and commerce, the department of finance and the
auditing department shall, within their respective scope of functions,
strengthen their coordination.

Article 11 These Provisions shall apply to all units in the tourist
industry, and also to other business operating units with relevance to tourist
business, such as stores, restaurants, and automobile companies.

Article 12 The expression “above…” referred to in these Provisions
includes the figure itself.

Article 13 These Provisions shall go into effect as of the date of
promulgation.

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING TRANSMISSION OF THE INTERIM PROVISIONS OF THE LEADING GROUP FOR PORT AFFAIRS ON THE SCOPE OF FUNCTIONS OF LOCAL ADMINISTRATIVE ORGANS FOR PORT AFFAIRS

Category	PORT ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-04-15	Effective Date	1987-04-15

Circular of the General Office of the State Council Concerning Transmission of the Interim Provisions of the Leading Group for Port Affairs on the Scope of Functions of Local Administrative Organs for Port Affairs

The Circular
INTERIM PROVISIONS FOR THE SCOPE OF FUNCTIONS OF LOCAL ADMINISTRATIVE

(April 15, 1987)

The Circular

The State Council has approved the Interim Provisions for the Scope of
Functions of Local Administrative Organs for Port Affairs submitted by the
Leading Group for Port Affairs. It is hereby transmitted to you for
implementation.

There are a considerable number of units involving in handling external
matters at ports, which are gateways of China to foreign countries. Under
different systems of subordination and with their own rules and regulations,
contradictions often occur among these units. If each acts in his own way, the
work will inevitably be hindered and harmful effects on foreign relations will
be caused. Facts have proved that it is necessary to establish streamlined
administrative organs for port affairs at various levels and it is an
effective measure in raising the comprehensive capacity of the ports.

In order to strengthen the administration of ports, the relevant people’s
governments at the provincial (regional) and the municipal level shall each
appoint a vice governor (vice chairman) and a vice mayor to be directly
responsible for the administration of port affairs so that the work will
gradually become regularized, systematized, standardized and modernized to
meet the needs of the development of the national economy and the growing
foreign trade, scientific and technical exchanges and personnel interflow.
INTERIM PROVISIONS FOR THE SCOPE OF FUNCTIONS OF LOCAL ADMINISTRATIVE
ORGANS FOR PORT AFFAIRS

In order to improve the administration of port affairs, the following
provisions are made on the scope of functions of local administrative
commissions for port affairs and offices in charge of port affairs in
accordance with the spirit of the Circular of the State Council Concerning
Further Strengthening Leadership over Port Affairs:

1. Local administrative commissions for port affairs and offices in charge
of port affairs are the administrative organs for port affairs under the
direct leadership of the relevant provincial (regional) or municipal people’s
governments and are responsible for the administration and coordination of
port affairs at the marine, land and aerial ports in their respective areas.

2. They shall be responsible for implementing the principles, policies,
and stipulations of the State concerning port work and shall formulate rules
for their implementation according to the actual conditions in the ports of
their areas.

3. They shall be responsible for balancing the foreign trade transport
plans for the ports under their jurisdiction, checking and ensuring the
implementation of the transport plans balanced and issued by the Central
Government, and enhancing projection and prediction.

4. They shall be responsible for organizing the inward and outward
transportation of goods, organizing the relevant parties in signing economic
agreements, coordinating the work of the departments in charge of railways,
harbours and trade, strengthening the loading and unloading of goods for
vehicle and vessels, speeding up the turnover of vehicle and vessels and the
transportation of goods and ensuring the smooth flow of goods at the ports.

5. They shall be responsible for supervising and checking the work of the
units in charge of inspection and examination at the ports, which shall,
within their respective functions and according to their respective
regulations, conduct supervision and administration of the personnel, means of
transport, goods, luggage and other objects that enter or leave the country,
and fulfil their duties concerning inspection, examination, quarantine, etc..

6. They shall be responsible for coordinating the work of and handling the
contradictions among the various units at the ports (including units that are
in charge of foreign trade transport, and that handle cargo for other units or
other countries, loading, unloading and tallying of goods, storage and
transhipment, inspection and examination, notarization and appraisal, claims
from foreign countries, supply and services, reception and publicity, etc.),
functioning as arbitration organs. The following principles should be observed
in coordinating the work of and handling the contradictions among the various
units at the ports:

(1) the stipulations which have been jointly formulated and issued by
several departments under the State Council should be implemented by all the
relevant units. Local administrative organs for port affairs have the right to
refuse to implement those stipulations which have been altered unilaterally by
any one department without the agreement of the original departments that
issued them;

(2) if disputes arise due to discrepancies among the rules and regulations
of different competent departments under the State Council, local
administrative organs for port affairs shall promptly report the case to the
Leading Group for Port Affairs of the State Council, with proposals for the
possible solutions;

(3) local administrative organs for port affairs must handle
foreign-related matters in strict accordance with the rule of reports for
instructions. Ordinary foreign-related matters which cannot be coped with by
the units at the ports shall be reported to the relevant units in the
provinces (autonomous regions or municipalities directly under the Central
Government) for consideration and decision. Important foreign-related matters
shall be reported, together with the opinions of the relevant units of the
provinces (autonomous regions or municipalities directly under the Central
Government), to the competent department under the State Council for
consideration and decision. Foreign-related matters of great importance and
urgency may be directly reported to the competent department under the State
Council for instructions and reports shall be sent to the relevant units in
the provinces (autonomous regions or municipalities directly under the Central
Government);

(4) in case differences of opinion appear in their work, the units at the
ports should observe the relevant stipulations of the State and give priority
to settling the issues concerning external affairs through consultation. If
agreement cannot be reached through consultation, decisions shall be made by
the local administrative organs for port affairs or the local people’s
governments as requested by these organs;

(5) local administrative organs for port affairs shall promptly organize
the relevant units in solving the contradictions and disputes that arise in
their coordination, and are empowered to made arbitrations in emergency cases.

The various units at the ports must carry out the decisions made by the
local administrative organs for port affairs in the light of the
above-mentioned principles.

7. They shall be responsible for organizing the various units at the ports
in giving publicity to and carrying out education on foreign-related policies,
disciplines and strengthening public security and shall, in conjunction with
the relevant departments, examine important foreign-related matters at the
ports and cases of serious violation of the disciplines and put forward
suggestions concerning the penalties.

8. They shall be responsible for checking and supervising the organization
and implementation of the port plans, their construction and systemized
technical innovations, and for promoting their synchronic progress.

9. They shall be responsible for examining the applications for the
opening or closing of category-1 and category-2 ports, reporting the
applications for approval, and organizing the detailed work in the
implementation, in accordance with the various policies and regulations of the
state concerning the opening of ports.

10. They shall be responsible for carrying out investigations and studies,
summing up and exchanging experience, reporting to the relevant departments
at higher levels the major contradictions and problems which have emerged in
their work, and putting forward proposals for their solution.

11. They shall be responsible for fulfilling other tasks assigned by
leading departments at higher levels.

12. These Provisions shall apply to the administrative committees for port
affairs or offices for port affairs of the provinces or municipalities where
there are category-1 ports. The scope of functions of the administrative
organs at category-2 ports may be provided by the people’s governments in the
relevant provinces (autonomous regions or municipalities directly under the
Central Government) according to the actual conditions of the local ports.

REGULATIONS FOR THE ADMINISTRATION OF WATER TRANSPORT

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	With An Amendment Existing
Date of Promulgation	1987-05-12	Effective Date	1987-10-01

Regulations of the People’s Republic of China for the Administration of Water Transport

Chapter I  General Provisions
Chapter II  Administration of Profit-Making Water Transport
Chapter III  Penalty Provisions
Chapter IV  Supplementary Provisions

(Promulgated by the State Council on May 12, 1987 and amended in

accordance with the Decision of the State Council on Amending the Regulations
of the People’s Republic of China for the Administration of Water Transport,
promulgated on December 3, 1997) (Editor’s Note: For the revision, see
Decision of the State Council on Amending the Regulations of the People’s
Republic of China for the Administration of Water Transport promulgated on
December 3, 1997, and effective as of the same date)
Chapter I  General Provisions

Article 1 These Regulations are formulated with a view to improving
administration of water transport, maintaining transportation order, and
raising transportation efficiency.

Article 2 These Regulations shall apply to all units and individuals
that are engaged in water transport and the related services in the coastal
waters, rivers, lakes and other navigable waters in the People’s Republic of
China.

Article 3 Water transport is categorized into profit-making transport
and non-profit-making transport.

The term of profit-making transport refers to passenger transport
(including tourist transport, the same hereafter) and freight transport which
serve the society and involve settling accounts of fees.

The term of non-profit-making transport refers to transport which serves
the units and individuals themselves and does not involve settling accounts of
fees.

Article 4 The Ministry of Communications shall be the competent
department responsible for water transport throughout the country. Local
competent departments for communications shall be responsible for the water
transport in their respective regions.

Local competent departments for communications may set up administrative
agencies for water transport according to actual conditions of water transport
administration.

Article 5 The principle of multiple operation and management of water
transport by various regions, trades and departments shall be implemented
under the guidance of state plans. Legitimate competition shall be protected
and illegal operation checked.

Article 6 The units and individuals who are engaged in water transport
and the related services must observe the relevant laws and regulations of
the state as well as the rules concerning water transport promulgated by the
Ministry of Communications.

Article 7 Before permission is obtained from the Ministry of
Communications of the People’s Republic of China, foreign-capital enterprises,
Chinese-foreign equity joint ventures and Chinese-foreign contractual joint
ventures shall not engage in the operation and management of water transport
in the coastal waters, rivers, lakes and other navigable waters in the
People’s Republic of China.
Chapter II Administration of Profit-Making Water Transport

Article 8 The establishment of water transport enterprises and
enterprises for the related services and the engagement in profit-making water
transport by units and individuals other than water transport enterprises
shall be examined and approved by the competent departments for communications
according to the relevant provisions of these Regulations, and based on the
overall balancing conditions of the society’s transportation capacity and
freight volume. The procedures of examination and approval shall be stipulated
by the Ministry of Communications.

The measures for examining and approving non-profit-making transport by
boats and ships which are likely to have a fairly great bearing on the
administration of water transport shall be separately formulated by the
Ministry of Communications in conjunction with the departments concerned.

Article 9 Water transport enterprises must meet the following
requirements:

(1) possessing transport vessels compatible with their scope of business;

(2) possessing relatively stable source of customers or freight;

(3) having along the shipping lines for their passenger ships or boats
regular ports (stations) of call with corresponding service facilities, as is
required of passenger-transporters;

(4) having structural institutions and persons in charge of management;

(5) possessing their own circulating capital compatible with their
transport business.

Article 10 To establish water transport service enterprises, it is
necessary to meet the requirement provided for in the fourth paragraph,
Article 9 and possess their own circulating capital compatible with water
transport services.

Article 11 Units and individuals other than water transport enterprises
that want to engage in profit-making transport must meet the requirements
provided for in the first, second, third and fifth paragraphs of Article 9 and
have definite persons in charge of the work.

Article 12 Competent departments for communications shall examine and
approve the scope of business of water transport enterprises and other units
and individuals engaged in profit-making transport according to their level of
management, transport capacity and source of customers and freight.

Article 13 Competent departments for communications shall issue transport
licences to the approved water transport enterprises and other units and
individuals engaged in profit-making transport and shall issue transport
service licences to the approved water transport service enterprises.

Article 14 The units and individuals that have obtained transport
licences and transport service licences shall apply on the strength of the
licences to the local administrative departments for industry and commerce
for business registration. They may start business only after the applications
have been checked and approved and the business licences issued.

Article 15 Water transport enterprises, water transport service
enterprises and other units and individuals engaged in profit-making
transport that want to wind up their businesses, shall go through the
necessary formalities at the competent departments for communications and the
administrative departments for industry and commerce.

Article 16 The Ministry of Communications and the competent departments
for communications of the provinces, autonomous regions and municipalities
directly under the Central Government shall be responsible for the overall
balancing of water transport plans at their respective levels.

The Ministry of Communications shall, according to state plans, organize
overall balancing of national transport plans for those important materials,
through transport materials and foreign trade materials for which overall
balancing need be conducted. If the plans concern trans-provinces water
transport along the main waterways of the river systems of the Yangtze River,
the Zhujiang River and the Heilongjiang River, the administrative agencies in
charge of water transport sent to these provinces by the Ministry of
Communications shall organize the overall balancing. If the plans concern
water transport within the jurisdiction of the provinces, autonomous regions
and municipalities directly under the Central Government, the competent
departments for communications of these provinces, autonomous regions and
municipalities shall organize the overall balancing.

Article 17 Water transport enterprises and other units and individuals
engaged in profit-making transport may, in their approved scope of business,
undertake and organize transport of freight and customers outside the
transport plans worked out through overall balancing. No units or individuals
shall maintain regional and departmental blockade to monopolize sources of
customers and freight.

Article 18 Carriers and consigners of profit-making water freight
transport must conclude transport contracts in accordance with the provisions
of the Economic Contract Law of the People’s Republic of China and Rules for
the Implementation of Contracts for Water Freight Transport.

Article 19 Water transport enterprises and other units and individuals
engaged in profit-making transport must observe the relevant stipulations of
the state in collecting shipping and additional charges and use the vouchers
and receipts prescribed by the Ministry of Communications.

Article 20 Self-employed operators (including partnerships, the same
hereafter) engaged in profit-making water transport shall cover vessel
insurance according to the relevant provisions of the state.

Article 21 Water transport enterprises and other units and individuals
engaged in profit-making transport as well as departments for petroleum,
coal, metallurgy, commerce, supply and marketing, foreign trade, forestry,
electric power, chemical industry and aquatic products must, according to
relevant provisions, provide statistical information concerning profit-making
and non-profit-making transport to competent departments for communications
and departments in charge of statistics.

Article 22 Water transport service enterprises shall not monopolize
sources of freight to force services on others, neither shall service charges
go beyond the prescribed standards.

Article 23 Civil seaports or civil river ports shall provide harbour
facilities and related services to transport vessels in accordance with the
state provisions and plans concerning administration of harbours.

Vessels entering and leaving harbours must observe harbour regulations and
subject themselves to harbour administration.

Water transport enterprises and other units and individuals engaged in
profit-making transport may, on voluntary basis, conclude business procuration
contracts with harbour enterprises according to relevant provisions.

Article 24 Water transport enterprises and other units and individuals
engaged in profit-making transport must pay taxes, prescribed fees
(harbour-dues, vessel berthage, navigational lane tolls) and transport
management fees. Units and individuals engaged in non-profit-making transport
must pay the necessary fees prescribed by the state.

The procedures for calculation and collection of prescribed fees and
transport management fees shall be formulated by the Ministry of
Communications in conjunction with the relevant competent departments under
the State Council.

Article 25 Units owned by the whole people and units owned by collectives
and self-employed boatmen that are engaged in water transport enjoy the
protection of state laws over their legitimate rights and interests. No units
and individuals shall illegally collect fees from or apportion expenses among
them.
Chapter III Penalty Provisions

Article 26 When these Regulations are violated in any of the following
manners, the competent departments for communications of people’s governments
at or above the county level shall impose penalties respectively according to
the following provisions:

(1) In cases of establishment of water transport enterprises or water
transport service enterprises without approval, or engagement in profit-making
transport by units and individuals other than water transport enterprises
without approval, the offender shall be confiscated of the illegal gains and
concurrently imposed a fine not less than 100% and not more than three times
the amount of the illegal gains; where there are no illegal gains, a fine of
not less than RMB 30,000 yuan and not more than RMB 250,000 yuan shall be
imposed.

(2) In cases of exceeding the scope of business by water transport
enterprises or water transport service enterprises engaged in profit-making
activities, the offender shall be confiscated of the illegal gains and
concurrently imposed a fine not less than 100% and not more than three times
the amount of the illegal gains; where there are no illegal gains, a fine of
not less than RMB 20,000 yuan and not more than RMB 200,000 yuan shall be
imposed.

(3) In cases of violation of relevant state provisions in collecting
freight or service charges, the violator shall be confiscated of the money
collected in violation of the provisions and concurrently imposed a fine not
less than RMB 20,000 yuan and not more than RMB 150,000 yuan.

(4) In cases of failure to use prescribed transport vouchers and receipts
in carrying out profit-making transport, the offender shall be administered a
warning or imposed a fine not more than RMB 10,000 yuan according to the
seriousness of circumstances.

(5) In cases of failure to pay the state prescribed fees according to
provisions, the offender shall be ordered to pay the fees within a time limit;
if he/she doesn’t do so within the time limit, the offender shall, in addition
to being ordered to pay the fees unpaid, be imposed a fine not less than 100%
and not more than three times the amount of the fees unpaid; if the
circumstances are serious, the licence may be concurrently suspended.

(6) In cases of monopolizing sources of freight to force services on
others, the offender shall be imposed a fine not less than RMB 10,000 yuan and
not more than RMB 100,000 yuan; if the circumstances are serious, the licence
may be concurrently suspended or revoked.

Article 27 If a party does not accept the penalty decision made by the
competent departments for communications, he may apply to the competent
departments for communications at higher levels for consideration. If he still
does not accept the consideration decision made by the competent departments
for communications at higher levels, he may, within 15 days of receipt of the
written consideration decision, bring a suit before people’s courts. If he
does not bring a suit nor comply with the penalty within this period, the
competent departments for communications may apply to the people’s courts for
compel enforcement.

Article 28 Violations of these Regulations punishable in accordance
with the provisions concerning administration of public security shall be
handled by public security organs. If crimes are committed, the judicial
organs shall pursue the criminal liabilities according to law.

Article 29 If administrative personnel for water transport violate these
Regulations, the competent departments for communications shall give
administrative sanctions or economic penalties.
Chapter IV Supplementary Provisions

Article 30 The following terms used in these Regulations are defined as
follows:

“Water transport enterprises” refers to the enterprises which are
specially engaged in profit-making water transport.

“Water transport service enterprises” refers to the enterprises which go
through formalities concerning transport, handle transfer of goods and
organize sources of freight on behalf of customers; through transport service
enterprises which serve mixed means of transport are not included.

Article 31 These Regulations shall not apply to international water
transport and water transport by raft.

Article 32 The water transport enterprises, water transport service
enterprises and other units and individuals engaged in profit-making
transport that already started business before the promulgation of these
Regulations shall, within 180 days of the promulgation, make a deferred
application for approval. The competent departments for communications
shall order those that fall short of the necessary requirements for starting
business to cease or to get reorganized within a certain time limit. If the
reorganization proves ineffective, their business licences shall be revoked
by the competent departments for industry and commerce.

Article 33 The Ministry of Communication shall be responsible for the
interpretation of these Regulations. It may, in accordance with these
Regulations, formulate rules for the implementation.

Article 34 These Regulations shall go into effect on October 1, 1987.

REPLY OF THE DEPARTMENT OF ENTERPRISE REGISTRATION OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE REQUEST FOR INSTRUCTIONS ON WHETHER A CHINESE ENTERPRISE MAY RETAIN ITS CAPACITY AS AN INDEPENDENT BUSINESS ENTITY IN CASE OF FULL INVESTMENT IN AN ENTERPRISE WITH FOREIGN INVESTMENT

The State Administration for Industry and Commerce

Reply of the Department of Enterprise Registration of the State Administration for Industry and Commerce on the Request for Instructions
on Whether a Chinese Enterprise May Retain its Capacity as an Independent Business Entity in Case of Full Investment in an Enterprise
with Foreign Investment

QiWaiZi [1987] No.60

October 21, 1987

Wuhan Administration for Industry and Commerce:

We have studied your Request for Instructions on your Administration on Whether a Chinese Enterprise May Retain its Capacity as an
Independent Business Entity in Case of Full Investment in an Enterprise with Foreign Investment (GongShangWaiZi[1987] No.67) and
now reply as follows:

In view of the fact that a Chinese enterprise making full investment in a Chinese-foreign equity joint venture still needs to execute
contracts and statutes, share profits and bear risks as an independent business entity, therefore it should retain its corporate
capacity as an independent business entity and be examined and punished for any lawbreaking misconduct.

In future, the name of the newly-established Chinese-foreign equity joint venture should be distinguishable (avoid identical, similar
or confusing names) from that of the Chinese enterprise with full investment in the former.

As in the case of Wuhan Jianghan Hotel Co., ltd. under your administration, since the name of the newly-established joint venture
is identical with that of its Chinese investor, we agree to the principle your administration proposed for handling this case in.
The case should be properly settled after arbitration.

The State Administration for Industry and Commerce
1987-10-21

INTERIM PROVISIONS ON THE POLITICAL IDEOLOGICAL ACTIVITIES FOR CHINESE EMPLOYEES OF CHINESE-FOREIGN EQUITY AND CONTRACTUAL JOINT VENTURES

The State Economic Commission, the Propaganda Department of the Central Committee, the Organisation Department of the Central Committee,
the All-China Federation of Trade Unions, the Communist Youth League

Interim Provisions on the Political Ideological Activities for Chinese Employees of Chinese-foreign Equity and Contractual Joint Ventures

August 11, 1987

(Jointly Promulgated on August 11, 1987 by the State Economic Commission, the Propaganda Department of the Central Committee, the
Organisation Department of the Central Committee, the All-China Federation of Trade Unions and the Communist Youth League)

Article 1

These Provisions are formulated in order to implement the open door policy of the Party and the State, to enhance and improve political
ideological activities for Chinese employees of Chinese-foreign equity and contractual joint ventures to arouse the enthusiasm and
creativity of Chinese employees to its greatest extent, to strengthen the operational management of enterprises and to accelerate
the development of enterprises.

Article 2

The fundamental task of political and ideological activities for Chinese employees of Chinese-foreign equity and contractual joint
ventures shall be: To publicise the implementation of the four basic principles and the open door policy and to ensure the correct
fulfilment of the direction, policies, laws and statutory regulations of the Party and the State; To continuously improve the quality
of the political thought and scientific and cultural understanding of Chinese employees and to create one contingent of employees
which embodies uniform ideals, ethics, culture and discipline; To encourage Chinese and foreign personnel to co-operate and work
together for the good of the enterprise.

Article 3

The main content and requirements of political and ideological activities for Chinese employees of Chinese-foreign equity and contractual
joint ventures shall be:

(1)

Teaching which upholds the four basic principles and the love of one’s country, people, work, science and socialism and which raises
national self-esteem, national confidence and national pride;

(2)

Teaching of the open door policy and use of foreign investment, in order to allow employees to understand fully the nature and objectives
of policies which promote the use of foreign capital by a socialist country for the establishment of Chinese-foreign equity and contractual
joint ventures , to understand correctly and to implement the open door policy of the Party and the State and to work in co-operation
with personnel from the foreign party;

(3)

Teaching of common ideals and the concept of the working class as master, in order to encourage employees to cultivate a sense of
honour and responsibility towards their work with a Chinese-foreign equity and contractual joint ventures , to co-ordinate the desire
to do one’s own job well with the implementation of common ideals, to adopt the role of masters of the State and to actively contribute
to the State’s modernisation;

(4)

Teaching of the legal system and discipline in order to heighten employees’ concepts of the legal system and discipline so that they
strictly abide by State laws, statutory regulations and foreign related discipline, observe the various laws and regulations of the
enterprise, fulfil the labour contract, submit to control and guidance from both Chinese and foreign administrative leaders of the
enterprise and acquire proper work ethics;

(5)

Education of employees to study conscientiously science, culture and professional knowledge and to master the advanced technology
and management experience of the foreign party and all other relevant advanced knowhow;

(6)

Launching of mass-based spiritual and cultural development activities, encouragement of a civilised, healthy, scientific knowledge
based lifestyle, promotion of cultural, sport and recreational activities beneficial to the physical and mental health of employees,
enrichment of their spiritual lives, moulding of their thoughts and values and allowing employees to develop themselves fully morally,
mentally and physically;

(7)

Concern for employee livelihood, co-ordination of the relevant areas so that the democratic rights and material benefits of employees
are protected in accordance with the law and aiding of employees to resolve actual issues relating work, study or general living;

(8)

Encouragement of employees to hold labour emulation drives and to propose rational suggestions, frequent praising of good people and
good deeds, assistance where relevant in the selection of advanced production workers and model workers and provision of moral and
material encouragement;

(9)

Education of Chinese administrative leaders and management personnel at the various levels to conscientiously implement the direction,
policies, laws and statutory regulations of the Party, and the State, to fulfil the contract and articles of association signed by
the Chinese and foreign parties, to safeguard the interests of the State and employees in accordance with the law, to respect the
legal rights and interests of foreign investors and to resolve appropriately and conflicts between the Chinese and foreign parties.

Article 4

Political and ideological activities for Chinese employees of Chinese-foreign equity and contractual joint ventures shall be factually
based, closely centred on the economic activities of the enterprise and uphold the principles of combining political ideological
activities with economic business operations, ideological teaching with strict control, spiritual encouragement with material encouragement
and the resolution of ideological issues with the resolution of actual issues, Special attention shall be paid to giving a free rein
to those leading cadres of the Chinese party and Party and League members who play an exemplary role so that teaching by example
is carried out in coordination with teaching by word of mouth.

Article 5

A Chinese-foreign equity and contractual joint ventures shall adopt flexible and varied methods and forms of ideological education
for its Chinese employees and direct such activities in line with the different targets so the teaching is lively and strives for
practical results. Mass educational activities shall be conducted after work hours. If it is necessary for these activities to occupy
work time, the approval of the administrative leaders of the enterprise shall first be obtained.

Article 6

Political and ideological activities for Chinese employees of a Chinese-foreign equity and contractual joint ventures enterprise shall
be conducted under the leadership of the Party organisation of the enterprise. The trade union and the Communist Youth League organisation
shall work in collaboration and develop political ideological activities in line with their own special characteristics. The Party
organisation of the enterprise shall pay attention to giving full play to the functions of the trade union and the Communist Youth
League organisation. If an enterprise has yet to establish a Party organisation, the trade union organisation shall be responsible
for properly implementing political ideological activities.

Chinese leading administrative cadres of Chinese-foreign equity and contractual joint ventures shall uphold the policy of keeping
a tight grasp on the socialist construction operations with the implementation of political and ideological activities for employees,
as well as actively supporting the developmental activities of the Party, trade union and Communist Youth league organisations, assisting
them to resolve any difficulties and providing the necessary conditions to facilitate their development.

Article 7

All Chinese-foreign equity and contractual joint ventures shall establish complete Party organisations and trade unions and communist
Youth League organisations in accordance with the relevant documents of the Organisational Department of the Central Committee of
the Chinese Communist Party, the All-China Federation of trade Unions and the Communist Youth league and the provisions of the relevant
laws and statutory regulations. The jurisdictional relationship of Party and Youth League organisations in general shall be identical
to their administrative jurisdictional relationship. Party and Youth League organisations in general shall not have full-time personnel.
When appropriate, the leading cadres of an enterprise, persons in charge of enterprise departments or trade union officials may also
be responsible for the Party or Youth League organisation. An enterprise with a comparatively large number of employees may, subject
to obtaining the understanding and support of the foreign Party and in line with the Principle of personnel being small in number
but very capable, provide the necessary number of full-time administrative cadres.

Article 8

The cadres responsible for political and ideological activities in Chinese-foreign equity and contractual joint ventures shall meet
the requirements of the “Four Modernisations, understand the relevant policies and business operations, have moral integrity, observe
discipline and be adept at fostering collaboration with the personnel of the foreign party. The administrative leaders of an enterprise
and its relevant higher level departments, encourage them to continually improve their ideology and work standards and those who
attain outstanding achievements shall be commended.

Article 9

Departments in charge of enterprises and political affairs departments at the various levels shall conscientiously enhance their leadership
of political and ideological activities for Chinese employees of Chinese-foreign equity joint venture and grass-roots units to conduct
investigation and research, constantly summarising and exchanging experience, using model directives and assisting in the resolution
of existing problems. When organising the deployment of personnel, the special characteristics of the particular enterprise shall
be considered fully so as to avoid treating all situations similarly as if “cutting each with the same knife”, An enterprise shall,
through practice, progressively seek and create a set of work experiences and methods appropriate to its special needs.

Article 10

These Provisions shall apply in principle to foreign investment enterprises.

Article 11

The administration of enterprises invested in and established by Hong Kong, Macao and Taiwanese companies and enterprises and their
economic organisations or individuals shall be implemented with reference to these Provisions.

The State Economic Commission, the Propaganda Department of the Central Committee, the Organisation Department of the
Central Committee, the All-China Federation of Trade Unions, the Communist Youth League
1987-08-11

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1993

MEASURES FOR THE CONTROL OF THE SUBSTITUTION OF MACHINERY AND ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND...

CERTAIN REGULATIONS ON THE MONITORING AND CONTROL OF AIDS

REGUALATIONS ON THE MANAGEMENT OF EMPLOYMENT OF FOREIGNERS IN CHINA

REGULATIONS OF BANK OF CHINA ON PROVIDING LOANS TO ENTERPRISES WITH FOREIGN INVESTMENT

INTERIM MEASURES CONCERNING STRENGTHENING ADMINISTRATION OF IMPORTS BY AIR

REGULATIONS ON ADMINISTRATIVE PENALTIES FOR PUBLIC SECURITY

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON TECHNOLOGY CONTRACTS

PROVISIONS CONCERNING STRICT FORBIDDANCE ON ACCEPTANCE OF REBATES AND TIPS IN HANDLING TOURIST BUSINESS

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING TRANSMISSION OF THE INTERIM PROVISIONS OF THE LEADING GROUP FOR PORT AFFAIRS ON THE SCOPE OF FUNCTIONS OF LOCAL ADMINISTRATIVE ORGANS FOR PORT AFFAIRS

REGULATIONS FOR THE ADMINISTRATION OF WATER TRANSPORT

REPLY OF THE DEPARTMENT OF ENTERPRISE REGISTRATION OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE REQUEST FOR INSTRUCTIONS ON WHETHER A CHINESE ENTERPRISE MAY RETAIN ITS CAPACITY AS AN INDEPENDENT BUSINESS ENTITY IN CASE OF FULL INVESTMENT IN AN ENTERPRISE WITH FOREIGN INVESTMENT

INTERIM PROVISIONS ON THE POLITICAL IDEOLOGICAL ACTIVITIES FOR CHINESE EMPLOYEES OF CHINESE-FOREIGN EQUITY AND CONTRACTUAL JOINT VENTURES

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