1994

PROVISIONS ON ADMINISTRATION OF BUY AND SALE OF SPOT AND FORWARD FOREIGN EXCHANGE BY FINANCIAL INSTITUTES ON CLIENTS’ BEHALF

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-03-05 Effective Date  1988-03-05  


Provisions on Administration of Buy and Sale of Spot and Forward Foreign Exchange by Financial Institutes on Clients’ Behalf



(Approved by the State Council on December 13, 1987, promulgated by the

State Administration of Foreign Exchange Control on March 5, 1988)

    Article 1  These Provisions are formulated in order to guard against the
risks of foreign exchange rate, stabilize the costs of import and export trade
(including other foreign economic activities) and develop the businesses of
buy and sale of spot and forward foreign exchange.

    Article 2 The Bank of China may be entrusted to buy and sell spot and
forward foreign exchange by departments, organizations, enterprises,
institutions and other units (hereinafter referred to as the client) in the
territory of China.

    Other financial institutions intending to conduct the businesses mentioned
in the preceding paragraph shall be approved by the State Administration of
Foreign Exchange Control.

    Article 3  Buy and Sale of foreign exchange referred to in these
Provisions means the buy and sale conducted among various convertible
currencies.

    Article 4  The client intending to entrust the Bank of China or other
financial institutions approved by the State Administration of Foreign
Exchange Control (hereinafter referred to as the designated financial agency)
on its behalf to buy and sell spot and forward foreign exchange shall be
approved by the State Administration of Foreign Exchange Control or its local
departments except for the following two situations:

    1) Specialized banks, financial institutions and foreign invested
enterprises with foreign investment with approval to conduct foreign exchange
businesses, for their self-owned or self-raised capitals of foreign exchange,
may buy and sell spot or forward foreign exchange by themselves in the
international financial market or entrust the designated financial agencies
to handle such businesses.

    2) Other clients not stipulated in the above paragraph who borrow foreign
exchange in cash within or out of China and receive, with permission,
donated foreign exchange, upon the approval to open cash account of foreign
exchange in financial institutions within China, may entrust the designated
financial agencies to buy and sell on their behalf spot or forward foreign
exchange according to the foreign trade contracts or other economic agreements.

    Article 5  The principle of voluntariness shall be adhered to in the
transactions of buy and sale of spot and forward foreign exchange.

    Article 6  The designated financial agency which is entrusted by a client
to buy and sell spot and forward foreign exchange shall base the transaction
on the foreign trade contracts or economic agreements signed by the client,
but transactions entrusted by the financial institutions with approval to
conduct foreign exchange and enterprises with foreign investment are excepted.

    Article 7  When the designated financial agency is entrusted by a client
to buy and sell spot or forward foreign exchange, the client shall provide
performance guarantee. Mortgage of foreign exchange quota or advance payment
of performance bond in cash may be used as the performance guarantee.

    The letter of guarantee for RMB at equal value issued by the deposit
bank shall be simultaneously provided in case the foreign exchange quota is
mortgaged as guarantee.

    In case the foreign exchange quota is settled ahead of time into foreign
exchange in cash to pay the performance bond in advance, the settlement is
limited to using US dollar.

    Article 8  When a client buys and sells forward foreign exchange,
application and copies of trade contracts or other economic agreements shall
be submitted to the local department of foreign exchange control in accordance
with the stipulation of Article 6. After being examined and approved by the
department of foreign exchange control, the client may entrust the designated
financial agency to buy forward foreign exchange by presenting the approval
documents of the department of foreign exchange control.

    Article 9  In case the foreign exchange quota is settled ahead of time
into foreign exchange in cash to pay the performance bond in advance, the
department of foreign exchange control shall endorse the payment notice of
foreign exchange quota issued by the client with the date and its stamp and
shall deduct the foreign exchange ration. The client in the same city shall
within 3 working days after the date of the endorsement (7 working days for
the client in a different city) buy US dollars from the quota and deposit
them into the account of “specific guarantee deposit” in the designated
financial agency.

    In case the foreign exchange quota is mortgaged, the department of foreign
exchange control shall transfer the foreign exchange quota mortgaged by the
client to the account of foreign exchange quota in the designated financial
agency.

    In case the option transaction is entrusted by the client, only foreign
exchange quota can be mortgaged as guarantee, but the insurance premium of
option which should be paid upon conclusion of the transaction may be settled
in advance into foreign exchange in cash.

    Article 10  When the designated financial agency is entrusted to buy
and sell spot and forward foreign exchange, if the client uses the foreign
exchange quota to settle ahead of time into foreign exchange in cash and pay
the performance bond in advance for the transaction of forward foreign
exchange, the designated financial agency shall check and calculate through
the account of “specific guarantee deposit”; but if the client uses the cash
of foreign exchange originally owned to pay the performances bond in advance
for the transaction of forward foreign exchange, the designated financial
agency shall still check and calculate through the account of “guarantee
deposit”.

    Article 11  In case the date of import payment is behind the date of
delivery, if the foreign exchange quota is settled ahead of time into foreign
exchange in cash, designated financial agency shall re-deposit temporarily
the cash position derived from the delivery into the account of “specific
guarantee deposit”; and if the cash of foreign exchange originally owned
is used, the designated financial agency shall re-deposit the cash position
derived from the delivery into the account of “guarantee deposit”.

    Article 12  The authority to interpret these Provisions resides in the
State Administration of Foreign Exchange Control.

    Article 13  These Provisions shall enter into force as of the date of
promulgation.






CIRCULAR OF THE STATE COUNCIL CONCERNING THE ANNULMENT OF A PART OF REGULATIONS GOVERNING FOREIGN-RELATED MATTERS

Category  CATALOGUE OF INVALIDATED LAWS AND ADMINISTRATIVE REGULATIONS GOVERNING FOREIGN-RELATED MATTERS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-06-18 Effective Date  1988-06-18  


Circular of the State Council Concerning the Annulment of a Part of Regulations Governing Foreign-related Matters


Annex I  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING
Annex II  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING

(June 18, 1988)

    In order to speed up the implementation of the strategy for economic
development in the coastal areas, and to promote the development of
export-oriented economy in the coastal areas of our country, the departments
concerned under the State Council, in accordance with the planning and
requirements of the State Council for the sorting out of regulations governing
foreign-related matters, have undertaken the sorting out of the existing
administrative regulations as well as other regulatory documents (hereinafter
referred to as “the regulations”, for short), promulgated by the State Council
or promulgated with the approval of the State Council. At present, the first
batch of seventeen regulations, which have been sorted out and should be
annulled, have been re-examined, piece by piece, by the Leading Group under
the State Council for the Sorting Out of Regulations jointly with the Bureau
of Legislative Affairs of the State Council and by the State Council; and it
is decided to announce the annulment of the aforesaid regulations (See Annex I
for the post_titles of the aforesaid regulations).

    At the same time, the first batch of eleven regulations, which have become
invalid automatically, have also been sorted out and re-examined, piece by
piece, by the Leading Group under the State Council for the Sorting Out of
Regulations jointly with the Bureau of Legislative Affairs of the State
Council; and now these eleven invalid regulations (See Annex II for their
post_titles) are also included here as Annex II in order to help various regions
and departments concerned obtain an overall understanding of the condition of
those invalid regulations governing foreign-related matters, thereby
facilitating their work.

    Annex I: A Catalogue of the First Batch of Regulations Governing
Foreign-Related Matters Which Should Be Annulled (17 pieces)

    Annex II: A Catalogue of the First Batch of Regulations Governing
Foreign-Related Matters Which Have Become Invalid Automatically (11 pieces)

Annex I  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING
FOREIGN-RELATED MATTERS WHICH SHOULD BE ANNULLED


—————————————————————————
|Serial|   The post_title of      | Organ  | Serial  |                        
|
|Number|                     |
and    | Number  |  Reasons for Annulment  |
|      |  the Regulations    | date of|  of    
|                        
|
|      |                    
| promul-| Outgoing|                        
|
|      |                    
| gation | Document|                        
|
|——|———————|——–|———|————————-|
|  1   | Interim Provisions  | Promul-| (1965)  | Relaced by “Approval    |
|      | of the State Council| gated  | State   | and Transmission by the |
|      | Concerning the      | on     | Council,|
State Council Concern-  |
|      | Unified Procedure   |November| No. 394 | ing a Report Submitted  |
|      | for the Price-making| 11,    |        
| by the State Administra-|
|      | of Export           | 1965   |        
| tion for Commodity      |
|      | Commodities         |        |        
| Prices Requesting In-   |
|      |                    
|        |         | structions on Several  
|
|      |                    
|        |         | Problems Concerning the |
|      |                    
|        |         | Price-making of Export  |
|      |                    
|        |         | Commodities” promulgated|
|      |                    
|        |         | by Document (1979)      |
|      |                    
|        |         | No.206 of the State    
|  
|      |                    
|        |         | Council on August 21,  
|
|      |                    
|        |         | 1979, and “Notice      
|
|      |                    
|        |         | Concerning the          |
|      |                    
|        |         | Strengthening of Control|
|      |                    
|        |         | of Purchasing Prices of |
|      |                    
|        |         | Export Commodities”    
|
|      |                    
|        |         | issued by Document      |

|      |                    
|        |         | (1987) No.492 of the    |
|      |                    
|        |         | Ministry of Foreign    
|
|      |                    
|        |         | Economic Relations and  |
|      |                    
|        |         | Trade and the State Ad- |
|      |                    
|        |         | ministration for Com-  
|
|      |                    
|        |         | modity Prices          
|
|——|———————|——–|———|————————-|
|  2   | Interim Provisions  | Promul-| (1974)  | Replaced by “The Law of |
|      | of the People’s     | gated  | State   | the People’s
Republic of|
|      | Republic of China   | by the | Council,| China Concerning the    |
|      | Concerning the      | State  | No. 11  |
Protection of Marine En-|
|      | Prevention of       | Council|        
| vironment”, promulgated |
|      | Pollution in the    | on     |        
| by the Standing         |
|      | Coastals Waters     | January|        
| Committee of the        |
|      |                    
| 30,1974|         | National People’s       |
|      |                    
|        |         | Congress on August 23,  |
|      |                    
|        |         | 1982                    |
|——|———————|——–|———|————————-|
|  3   | Provisions on       | Promul-| (1979)  | Replaced by “Provisions
|
|      | Several Ploblems    | gated  | State   | of the State
Council    |
|      | Concerning Vigorous | by the | Council,| Concerning the speeding |
|      | Development of      | State  | No. 202 | up and deepening
of the |
|      | Foreign Trade and   | Council|         |
Reform in the Systems   |
|      | Increase in Foreign | on     |        
| of Foreign Trade”, pro- |
|      | Exchange Earnings   | August |         |
mulgated by Document    |
|      |                    
|13, 1979|         | (1988) No. 12 of the    |
|      |                    
|        |         |  State Council on      
|
|      |                    
|        |         | February 26, 1988, and  |
|      |                    
|        |         | by other documents      |
|——|———————|——–|———|————————-|
|  4   | Trial Procedures    | Promul-| (1979)  | Replaced by “Procedures |
|      | for the Retention   | gated  | State   | for the Retention of
a  |    
|      | of a Portion of     | by the | Council,| Portion of Foreign      |

|      | Foreign Exchange    | State  | No. 202 | Exchange from Export    |
|      | from Export         | Council|        
| Commodities”, promul-   |
|      | Commodities         | on     |        
| gated by Document       |
|      |                    
| August |         | (1985) No. 43 of the    |
|      |                    
|13, 1979|         | State Council on        |  

|      |                    
|        |         | March 29, 1985          |

|——|———————|——–|———|————————-|
|  5   | Approval and Trans- |December| (1979)  | Replaced by “Notice of  |
|      | mission by the State| 21,    | State   | the State Council Con-  |
|      | Council Concerning  | 1979   | Council,| cerning the Approval and|
|      | the Procedures for  |        | No. 297 |
Transmission of Interim |
|      | the Handling of     |        |        
| Provisions of the State |
|      | Cases of Using      |        |        
| Planning Commission     |
|      | Foreign Loans in    |        |        
| Concerning the Improve- |
|      | the Introduction    |        |        
| ment of the Planning    |
|      | of Technology and   |        |        
| System”, promulgated    |
|      | the Importation of  |        |        
| by Document No. 138,    |
|      | Equipment for       |        |        
| (1984) of the State     |
|      | Carrying Out        |        |        
| Council on October 4,   |
|      | Capital Construction|        |        
| 1984, and also by       |
|      | Projects by Such    |        |        
| “Approval and           |
|      | Departments as      |        |        
| Transmission by the     |  
|      | Foreign Exchange,   |        |        
| State Council Concern-  |
|      | Finance, and        |        |        
| ing Suggestions Raised  |
|      | Planning  for       |        |        
| by the State Planning   |
|      | Capital Construction|        |        
| Comission on the        |
|      |                    
|        |         | Exploitation of        
|
|      |                    
|        |         | Foreign Loans”, promul- |
|      |                    
|        |         | gated by Document      
|
|      |                    
|        |         | No. 83 (1986) of the    |
|      |                    
|        |         | State Council on        |
|      |                    
|        |         | August 16, 1986        
|
|——|———————|——–|———|————————-|
|   6  | Approval and Trans- | June   | (1980)  | Replaced by “Notice of  |
|      | mission by the      | 30,    | State  
| the State Bureau of     |
|      | State Council       | 1980   | Council,| Foreign Expert
Affairs  |
|      | Concerning the      |        |
No. 151 | Concerning the Publica- |
|      | Summary of a        |        |        
| tion of `A Summary of a |
|      | National Forum on   |        |        
| National Conference on  |
|      | the Work of         |        |        
| the Work of Foreign Ex- |
|      | Foreign Experts in  |        |        
| perts in Culture and    |
|      | Cultural and        |        |        
| Education'” promulgated |
|      | Educational Work    |        |        
| by Document No. 78      |
|      |                    
|        |         | (1987) of the State    
|
|      |                    
|        |         | Bureau of Foreign Expert|
|      |                    
|        |         | Affairs on April 10,    |
|      |                    
|        |         | 1987                    |
|——|———————|——–|———|————————-|
|  7   | Notice of the State | June   | (1981)  | Replaced by “Notice of  |
|      | Council Concerning  | 3,     | State   | the State
Council       |
|      | Its Approval and    | 1981   | Council,| Concerning its Approval
|
|      | Transmission of “A  |        | No.97  
| and Transmission of the |
|      | Report Concerning   |        |        
| Suggestions Raised by   |
|      | How the present     |        |        
| the State planning      |
|      | Foreign Economic    |        |        
| Commission, the Economic|
|      | Relations and       |        |        
| Commission and the      |
|      | Trade Can Serve     |        |        
| Ministry of Foreign     |
|      | the Readjustment    |        |        
| Economic Relations and  |  
|      | of National         |        |        
| Trade Concerning        |
|      | Economy”, Submitted |        |        
| Division of Labour in   |
|      | by the State        |        |        
| the Work of Foreign     |
|      | Commission for      |        |        
| Economic Relations and  |
|      | Imports and Exports |        |        
| Trade”, Promulgated     |
|      |                    
|        |         | by Document No. 13      |
|      |                    
|        |         | (1983) of the State    
|
|      |      &n

MEASURES FOR MANAGEMENT OF FOUNDATIONS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-09-27 Effective Date  1988-09-27  


Measures for Management of Foundations



(Adopted at the 21st Executive Meeting of the State Council

on September 9, 1988, promulgated by Decree No.18 of the State
Council of the People’s Republic of China on September 27, 1988)

    Article 1  These Measures are formulated in order to
strengthen the management of foundations so as to ensure their
healthy development.

    Article 2  “Foundations”, as referred to in these Measures,
means non-governmental and non-profit organizations which
conduct management of funds donated voluntarily by social
organizations or other organizations or individuals either
at home or abroad and which are legal person social
organizations.

    The purpose of foundations is to promote the development of
scientific research, cultural education, social welfare and
other public welfare undertakings through financial assistance.

    These Measures shall not apply to foundations established
with government appropriations for scientific research, nor to
organizations managing other types of special funds.

    Article 3  Foundations to be established must satisfy the
following requirements:

    (1) The nature and aim of the foundation and the source of
funds accord with the provisions of Article 2 of these Measures;

    (2) Have a registered capital of at least 100,000 RMB yuan
(or at least the equivalent of 200,000 RMB yuan in foreign
exchange);

    (3) Have a foundation constitution, management organization
and necessary financial personnel; and

    (4) Have a fixed working place.

    Article 4  Foundations may raise funds by soliciting
contributions from enterprises, institutions, social
organizations or other organizations or individuals either at
home or abroad who support the aims of the foundation, provided
that the contributions are made on a voluntary basis.
Apportionment is strictly prohibited.

    Article 5  The leading position of a foundation may not be
concurrently held by any active government personnel.

    Foundations shall carry out democratic management, institute
a strict system for the raising, use and management of funds and
publish a balance sheet regularly.

    Article 6  Foundation funds shall be used for those
activities and undertakings which accord with the aim of the
foundation and may not be appropriated for other purposes.
Foundations may not operate or manage enterprises.

    Article 7  Foundations may place their funds in interest-
bearing financial institutions, or may purchase bonds, stocks or
other securities provided that the amount of stocks purchased
from an enterprise shall not exceed 20 percent of the total stock
of the enterprise.

    Article 8  Foundations are enpost_titled to supervise those
accepting an offering of funds with regards to the use of the
funds. In the event that the foundation discovers that the use of
donated funds violates the agreement reached, the foundation is
enpost_titled to reduce or stop the offering of such funds, or to
recall funds already offered.

    Article 9  The salaries of personnel and the administrative
expenses of a foundation shall come from the interest income of
the foundations assets or the like.

    Article 10  Foreign exchange donated to a foundation from
abroad shall be owned by the foundation. Foundations are allowed
to open foreign exchange deposit accounts.

    Goods and materials donated to a foundation from abroad are
exempted from customs duty and shall be owned by the foundation;
foundations are enpost_titled to transfer those goods and materials
free of charge to assist organizations or individuals who are
associated with the aim of the foundation. Such goods and
materials may not be sold.

    Article 11  Application for the establishment of a foundation
shall be submitted to the People’s Bank of China for examination
and approval by the authoritative administrative department.
After examination and approval by the People’s Bank, the
foundation shall register with and obtain a license from the
civil administration department. Only after obtaining qualification
as a body corporate by going through the above procedures may a
foundation begin its activities.

    Application for the establishment of national foundations
shall be submitted to the People’s Bank of China for examination
and approval and shall apply to the Ministry of Civil Affairs for
registration, and then be submitted to the State Council for
filing. Application for the establishment of local foundations
shall be submitted to the local provincial, regional or municipal
branch of the People’s Bank of China for examination and approval
and shall apply for registration to the civil administration
department of the people’s government of that province,
autonomous region or municipality directly under the central
government, and then be submitted for filing to the people’s
government of that province, autonomous region or municipality
directly under the central government.

    Changes in name, merging or rescission of foundations shall
be handled in accordance with the procedures prescribed for their
establishment.

    Article 12  Foundations shall submit annual reports to the
People’s Bank of China and civil administration departments
concerning their revenues, expenditures and activities.
Foundations are subject to the supervision of the People’s Bank
and civil administration departments.

    If any foundation’s activities violate these Measures, the
People’s Bank is enpost_titled to stop payment, freeze foundation
funds and order a rectification; the civil administration
departments are authorized to issue penalties such as warnings
or revocation of the operational license.

    Article 13  The People’s Bank of China and the Ministry of
Civil Affairs shall implement these Measures. They may draw up
the necessary rules for implementation.

    Article 14  These Measures shall go into effect as of the
date of promulgation.






RULES FOR THE IMPLEMENTATION OF THE TRADEMARK LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1988-01-13 Effective Date  1988-01-13  


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

Chapter I  General Provisions
Chapter II  Application for Trademark Registration
Chapter III  Examination of Trademark Registration
Chapter IV  Change, Assignment and Renewal of and Determination of
Chapter V  Administrative Control of the Use of Trademark
Chapter VI  Protection of the Right to Exclusive Use of a Registered
Chapter VII  Supplementary Provisions

(Approved by the State Council for amendments on January 3, 1988,

promulgated by the State Administration for Industry and Commerce on
January 13, 1988) (Editor’s Note: For the revised text, see Rules for
Implementation of the Trademark Law of the People’s Republic of China
promulgated on July 28, 1993)
Chapter I  General Provisions

    Article 1  These Rules are formulated in accordance with the provisions of
Article 42 of the Trademark Law of the People’s Republic of China (hereinafter
referred to as the “Trademark Law”).

    Article 2  An applicant for trademark registration must be an enterprise
or a self-employed industrialist or businessman that is registered in
accordance with the law and capable of independently undertaking civil
responsibilities and an institution having qualification of a legal person, or
a foreigner or foreign enterprise referred to in Article 9 of the Trademark
Law.

    Article 3  Any application for trademark registration, assignment of
registration, renewal of registration, change of name or address of the
registrant, replacement of certificate of trademark registration or other
related matters shall be examined and transmitted by a local administrative
department for industry and commerce above the county level of the place where
the applicant is located (hereinafter referred to as the “department for
examination and transmission”) or handled by an agency designated by the State
Administration for Industry and Commerce.

    Where a foreigner or foreign enterprise is to apply for trademark
registration in China or to deal with other trademark matters in China, the
application or matters shall be handled by an agency designated by the State
Administration for Industry and Commerce.

    Article 4  A fee must be paid according to relevant stipulations for an
application for trademark registration, assignment of registration, renewal of
registration, change of name or address of the registrant, replacement of
certificate of trademark registration, examination and other related matters.

    Article 5  The Trademark Office under the State Administration for
Industry and Commerce (hereinafter referred to as “the Trademark Office”)
shall establish and maintain the “Trademark Register” which shall record
registered trademarks and relevant registration matters.

    The Trademark Office shall edit and issue the “Trademark Gazette” which
shall announce trademark registrations and other related matters.

    Article 6  The names of administrative divisions above the county level
(county names included) and those of wellknown foreign localities may not be
used as trademarks.

    Those trademarks already registered and approved under the names mentioned
above shall continue to be valid.

    Article 7  Registered trademarks must be used on pharmaceuticals for human
use and tobacco products which have been prescribed by the State and
established by the State Administration for Industry and Commerce.

    The other goods on which registered trademarks are to be used according to
state prescriptions shall be published by the State Administration for
Industry and Commerce.

    Article 8  The State Administration for Industry and Commerce shall set up
the Trademark Review and Adjudication Board, which shall make final decisions
and rulings on matters submitted for reexamination in accordance with the
provisions of Articles 21,22,27 and 35 of the Trademark Law and of Article 23
of these Rules.
Chapter II  Application for Trademark Registration

    Article 9  A trademark registration shall be applied for separately
according to the class of goods as specified in the table for the
classification of goods. For each trademark registration, the applicant shall
submit to the Trademark Office an Application Form for Trademark Registration,
10 specimens of the trademark (in case of a specifically colored trademark
the specimens submitted must be coloured accordingly) and one copy of its
design in black and white.

    The specimens of the trademark must be clear, easy to stick and printed on
durable paper with a smooth finish or in form of photos. Their length or width
shall be no more than 10 centimetres and no less than 5 centimetres.

    Article 10  An application form for trademark registration and related
papers shall be filled out or written in pen and ink or writing brush and ink
or typed. The writing or typing shall be neat and clear.

    The name, stamp or seal of the applicant for trademark registration shall
be the same as those approved or registered. The reported goods shall not go
beyond the approved or registered scope of business. The designation of the
goods shall be filled in according to the table for the classification of
goods; if not listed in the tables, a description of the goods must be
attached.

    Article 11  In applying for trademark registration on pharmaceuticals for
human use, the license for Enterprises of Pharmaceutical Production or the
Licence for Enterprises of Pharmaceutical Management issued by the
administrative department for public health shall be attached to the
application.

    In applying for trademark registration on cigarettes, cigars or packed cut
tobacco, papers certifying production approval by the competent authorities
for tobacco of the State shall be attached to the application.

    In applying for trademark registration on other goods on which registered
trademarks are to be used according to the relevant state prescriptions,
papers certifying approval by the relevant competent departments shall be
attached to the applications.

    Article 12  The date of application for registration of a trademark shall
be the date of the receipt of the application form and related papers by the
Trademark Office. If the applicant has gone through all the necessary
application procedures and has filled out the application form and related
papers in accordance with the relevant stipulations, the application form
shall be numbered. If the applicant fails to go through the necessary
procedures and to fill out the application form and related papers in
accordance with relevant stipulations, the application form shall be returned
to the applicant, and no date of application shall be reserved.

    Article 13  If two or more applicants apply on the same day for
registration of the identical or a similar trademark for the same or similar
goods, they shall furnish, within a specified period notified by the Trademark
Office, proof of the dates on which they started using their respective
trademarks. If their use started on the same date, or none is yet in use,
the applicants shall settle the matter by consultations. If no agreement is
reached after 30 days of consultations, the Trademark Office shall determine
the matter.

    Article 14  In applying for trademark registration or handling other
trademark matters, a foreigner or foreign enterprises shall use the Chinese
language and issue a power of attorney for his(its) agent. The power of
attorney shall specify the scope of powers of the agent and the nationality of
the applicant.

    Procedures of notarization and authentication for power of attorney and
relevant certificates shall be completed in light of the principle of
reciprocity. Chinese translations shall be attached to the application form
filled out and related papers written in foreign languages.

    Article 15  The Trademark Office may entertain claims for priority in the
application for trademark registration. Specific procedures shall be followed,
as prescribed and promulgated by the State Administration for Industry and
Commerce.
Chapter III  Examination of Trademark Registration

    Article 16  The Trademark Office shall examine the applications which have
been numbered. A trademark that has been given preliminary examination and
approval shall be published in the Trademark Gazette. For a rejected
application, a written notification of rejection shall be issued to the
applicant, and a copy thereof sent to the department for examination and
transmission.

    Article 17  When a trademark application is rejected, the applicant may,
within 15 days after receiving the notification of rejection, send an
Application Form for Reexamination of Rejected Trademarks to the Trademark
Review and Adjudication Board to apply for a reexamination, with the original
Application Form for Trademark Registration, 10 specimens of the original
trademark, one copy of its design in black and white and the notification of
rejection attached as enclosure. A copy of the Application Form for
Reexamination shall also be sent to the department for examination and
transmission. The Trademark Review and Adjudication Board shall make a final
decision and notify the applicant in writing and a copy of the notification
shall also be sent to the department for examination and transmission. The
trademark which ought to be given preliminary examination and approval as a
result of the final decision shall be transferred to the Trademark Office for
handling.

    Article 18  In filing an opposition against a trademark that has been
given preliminary examination and approval and has been publicly announced by
the Trademark Office, the opponent shall send in duplicate a Trademark
Opposition Form to the Trademark Office. The Trademark Opposition Form shall
specify the issue number of the Trademark Gazette in which the opposed
trademark was announced, its page number as well as the number of the
preliminary examination and approval. The Trademark Office shall send the
Trademark Opposition Form to the applicant, who shall give a reply within a
specified period, and the Trademark Office shall determine the matter
according to the facts and reasons stated by the parties concerned. If no
reply is given within the time limit, the Trademark Office shall make a
decision on the matter.

    The Trademark Office shall notify, the parties concerned of the decision
made on the trademark opposition, and a copy of the notification shall be sent
to the department for examination and transmission.

    Article 19  If a party disagrees with the decision made by the Trademark
Office on the trademark opposition it may, within 15 days after receiving
notification of the decision, send in duplicate the Application Form for
Reexamination of Trademark Opposition to the Trademark Review and Adjudication
Board to apply for reexamination, and a copy of the Form must be sent to the
department for examination and transmission.

    The Trademark Review and Adjudication Board shall make a final decision,
notify the parties concerned in writing, send a copy of the notification to
the department, for examination and transmission and transfer the matter to
the Trademark Office.
Chapter IV  Change, Assignment and Renewal of and Determination of
Disputes over Registrated Trademarks

    Article 20  In applying for change of the name of a registrant, the
applicant shall file, for each trademark registered, an Application Form for
Change of Name of Registrant of a Registered Trademark and a Certificate of
Change of Name of Registrant with the Trademark Office and the original
Certificate of Trademark Registration shall be turned in therewith. After
examination and approval by the Trademark Office, the original Certificate of
Trademark Registration shall be returned with due notation, and the change
shall be announced publicly.

    In applying for change of the address of a registrant or other registered
matters, the applicant shall file, for each trademark registered, an
Application Form for Change of Address of Registrant of a Registered
Trademark or an Application Form for Change of Other Registered Matters, and a
Certificate of Change of Address of Registrant or a Certificate of Change of
Other Registered Matters with the Trademark Office, and the original
Certificate of Trademark Registration shall be turned in therewith. After
examination and approval by the Trademark Office, the original Certificate
of Trademark Registration shall be returned with due notation, and the change
shall be announced publicly.

    In applying for change of the name or address of a registrant, the
registrant shall go through the above formalities simultaneously for all its
(his) registered trademarks.

    Article 21  In applying for the assignment of registered trademarks, the
assignor shall file, for each registered trademark to be assigned, an
Application Form for Assignment of Registered Trademark with the Trademark
Office and the original Certificate of Trademark Registration shall be turned
in therewith. The matter shall be examined and transmitted by the department
for examination and transmission at the place where the assignee is located.
The assignee shall meet the requirements provided for in Article 2 of these
Rules. After examination and approval by the Trademark Office, the original
Certificate of Trademark Registration shall be given to the assignee with due
notation, and the assignment shall be publicly announced.

    In applying for the assignment of registered trademarks, the registrant
shall go through the above formalities simultaneously for all its (his)
identical or similar trademarks registered for the same or similar goods. When
the trademarks of the goods provided for in Article 7 of these Rules are to be
assigned, the assignee shall present the certificates issued by the competent
departments in accordance with the provisions of Article 11 of these Rules.

    Article 22  In applying for the renewal of trademark registration, the
applicant shall submit, for each trademark registered, an Application Form for
Renewal of Trademark Registration and five specimens of the trademark to the
Trademark Office, and the original Certificate of Trademark Registration shall
be turned in therewith. After examination and approval by the Trademark
Office, the original Certificate of Trademark Registration shall be returned
with due notation, and the renewal shall be publicly announced.

    Article 23  If a registrant disagrees with the rejection by the Trademark
Office of its (his) application for assignment or renewal, the registrant may,
within 15 days after receiving notification of rejection, send an Application
Form for Reexamination of Rejected Assignment or Application Form for
Reexamination of Rejected Renewal to the Trademark Review and Adjudication
Board for reexamination, with the original Application form for Assignment
of Registered Trademark or Application Form for Renewal of Trademark
Registration and the notification of rejection attached as enclosure.

    The Trademark Review and Adjudication Board shall make a final decision
and notify the registrant in writing and a copy of the notification shall be
sent to the department for examination and transmission. If the application
for registration assignment or renewal ought to be given examination and
approval as a result of the final decision, the matter shall be transferred to
the Trademark Office for handling.

    Article 24  If a registrant raises a dispute over a trademark that has
already been registered under the name of another registrant, the disputant
shall, within one year from the day the trademark was announced in the
Trademark Gazette, file in duplicate an Application Form for a Ruling of
Dispute over Trademarks with the Trademark Review and Adjudication Board for a
ruling.

    If a registered trademark in dispute is revoked as a result of the final
ruling of the Trademark Review and Adjudication Board, the Trademark Office
shall take over the matter, publicly announce the revocation and send a copy
of the notification of ruling to the department for examination and
transmission. The original registrant of the revoked trademarks shall, within
15 days after receiving the notification of the final ruling on the dispute,
surrender the original Certificate of Trademark Registration of the local
department for examination and transmission to be sent back to the Trademark
Office.

    Article 25  Any person may file an Application Form for the Final Ruling
Revoking an Inappropriately Registered Trademark with the Trademark Review
and Adjudication Board for a final ruling. The clause shall not include those
trademarks which were once in dispute but have been upheld by the ruling.

    If a trademark is thereby revoked by the final ruling of the Trademark
Review and Adjudication Board, the Trademark Office shall take over the
matter, publicly announce the revocation and send a copy of the notification
or ruling to the original department for examination and transmission. The
original registrant shall, within 15 days after receiving notification of the
final ruling on revocation, surrender the original Certificate of Trademark
Registration to the local department for examination and transmission to be
sent back to the Trademark Office.
Chapter V  Administrative Control of the Use of Trademark

    Article 26  A registered trademark shall be used with the indication in
characters “*” or with the mark * or *. If it is not convenient for a
commodity to bear such indication or mark, its packing or description and
its other attachments shall be so marked.(*: the Chinese form, for which,
see <FOREIGN-RELATED MATTERS>>, China Legal System Publishing House, July, 1991,
page 1181, Volume II — The Editor)

    Article 27  An application for replacement is required for a lost or
mutilated Certificate of Trademark Registration. The applicant shall file an
Application Form for Replacement of Certificate of Trademark Registration,
together with five specimens of the trademark, with the Trademark Office. In
case of the loss of a Certificate of Trademark Registration, it is necessary
to have a loss announcement carried in a newspaper at or above the provincial
level and a copy of the newspaper shall be sent to the Trademark Office. In
case of mutilation, the mutilated Certificate of Trademark Registration shall
be sent back to the Trademark Office.

    Article 28  In the event of any of the acts concerning the use of a
registered trademark as specified in Paragraphs (1), (2) and (3) of Article 30
of the Trademark Law, the administrative department for industry and commerce
shall order the registrant to rectify the situation within a specified period.
If the registrant refuses to rectify the situation, the local administrative
department for industry and commerce shall report the matter to the Trademark
Office for revocation of the registered trademark in question.

    Article 29  In the event of the act specified in Paragraph (4) of Article
30 of the Trademark Law, any person may apply to the Trademark Office for the
revocation of the registered trademark in question. The Trademark Office shall
notify the registrant and order the latter to afford proof of use within a
specified period. If no proof is afforded within the time limit or the proof
produced is invalid, the Trademark Office shall revoke the registered
trademark in question.

    The use of a trademark mentioned above implies also its use for
advertisement or exhibition.

    Article 30  An application for registration of a trademark to be used on
the same or similar goods and which is identical or similar to the trademark
revoked according to the provisions Article 29 of these Rules shall not be
restricted by the provisions of Article 32 of the Trademark Law.

    Article 31  In the event of any of the acts specified in Article 31 and
Paragraph (3) of Article 34 of the Trademark Law, the relevant administrative
department for industry and commerce shall order the registrant to rectify the
situation within a specified period. If the circumstances are serious, self-
examination shall be ordered, a notice on the case shall be circulated and a
fine of not more than 20% of the illegal volume of business or not more than
two times that of the illegal gains shall be imposed. Poisonous, harmful and
useless goods shall be destroyed, and the registered trademark used thereon
shall be revoked in accordance with the provisions of the Trademark Law.

    Article 32  In the event of any of the acts specified in Paragraphs (1)
and (2) of Article 34 of the Trademark Law and Article 6 of these Rules, the
relevant administrative department for industry and commerce shall prohibit the
advertising publicity, seal up or seize the remaining presentations of the
trademark, and order rectification of the situation within a specified period.
A notice on the case may be circulated, or a fine of not more than 20% of the
illegal volume of business may be imposed in addition, in accordance with
the circumstances.

    Article 33  In the event of a violation of the provisions of Article 5 of
the Trademark Law, the relevant administrative department of industry and
commerce shall prohibit the sale of the goods on the market, stop the
advertising publicity, seal up or seize the representations of the trademark,
and may, in accordance with the circumstances, impose concurrently a fine of
not more than 10% of the illegal volume of business.

    Article 34  No one shall be allowed to illegally manufacture, sell or buy
trademark representations. In the event of a violation of the above provisions,
the relevant administrative department for industry and commerce shall stop
the manufacturing or the sale, seize the trademark representations and may,
depending on circumstances, impose concurrently a fine of not more than 20%
of the illegal volume of business. In case where a registrant sells its own
trademark representations, the Trademark Office may revoke its registered
trademark. However, if the case is an infringement of the right to exclusive
use of a registered trademark, it shall be dealt with in accordance with the
provisions of Article 43 of these Rules.

    Article 35  If a registrant authorizes another person to use its
registered trademark, a trademark licensing contract must be concluded.

    The licensor shall, within a specified period, submit copies of the
trademark licensing contract to the local administrative department for
industry and commerce at the county level, which shall in turn transmit a copy
of the contract to the Trademark Office for the record.

    In the event of a violation of the above provisions, the relevant
administrative department for industry and commerce shall order the licensor
to rectify the situation within a specified period. In case of a refusal to
rectify the situation, the administrative department for industry and commerce
in the place where the licensor is located shall report the matter to the
Trademark Office for revocation of the licensor’s registered trademark and
seize the trademark representations.

    Article 36  If a registrant authorizes another person to use its registered
trademark, the licensee must meet the requirements provided for in Article 2
of these Rules.

    If a registrant authorizes another person to use the trademarks for those
goods listed in Article 7 of these Rules, the licensee’s due certification
issued by the relevant departments in accordance with the provisions of
Article 11 of these Rules shall be attached to the submitted copy of the
trademark licensing contract.

    Article 37  The Trademark Office shall notify the registrant in writing
if the decision is to revoke the registered trademark in accordance with the
provisions of Articles 30 and 31 of the Trademark Law and Articles 34 and 35
of these Rules, and a copy of the notification shall be sent to the original
department for examination and transmission. The latter shall recall the
Certificate of Trademark Registration and send it back to the Trademark Office.

    The Trademark Office shall publicly announce the revocation or
cancellation of the trademark.

    Article 38  In the event a registrant applies for the cancellation of its
registered trademark, an Application Form for Cancellation of Trademarks shall
be filed with the Trademark Office and the original Certificate of Trademark
Registration be returned.

    Article 39  If a registrant is not satisfied with the decision of the
Trademark Office to revoke its registered trademark, it shall, within 15 days
after receiving notification of revocation, file an Application Form for
Reexamination of Registered Trademark Revocation with the Trademark Review and
Adjudication Board for reexamination.

    The Trademark Review and Adjudication Board shall make a final decision
and notify the registrant in writing, and a copy of the notification shall be
sent to the original department for examination and transmission. If the
original revocation decision is cancelled as a result of the final decision,
the matter shall be transferred to the Trademark Office for handling.

    Article 40  If a party is not satisfied with a decision (that on
revocation of a registered trademark excepted) made by an administrative
department for industry and commerce in accordance with the provisions of
Articles 31,32,33,34 and 35 of these Rules, it may, within 15 days after
receiving the relevant notification, appeal to the administrative department
for industry and commerce at the next higher level for reexamination. The
administrative department for industry and commerce at the next higher level
shall make a decision after reexamination within 45 days after the receipt of
the appeal. If the party is not satisfied with the decision made after
reexamination concerning the fine party is not satisfied with the decision
made after reexamination concerning the fine made by the department at the
next higher level in accordance with the provisions of Articles 31,32,33 and
34 of these Rules, it may bring a suit in a people’s court within 15 days
after receiving notification of decision. If at the expiration of such a
period, the party has neither complied with the decision nor applied for
reexamination or brought a lawsuit, the relevant administrative department for
industry and commerce shall request the people’s court for enforced execution.
Chapter VI  Protection of the Right to Exclusive Use of a Registered
Trademark

    Article 41  Any of the following acts shall be an infringement of the
right to exclusive use of a registered trademark referred to in Paragraph (3)
of Article 38 of the Trademark Law:

    (1) marketing goods in a way infringing upon another person’s right to
exclusive use of a registered trademark;

    (2) using words and designs which are identical or similar to another
person’s registered trademark as the designation or decoration on the same
kind of goods or similar goods, and which may sufficiently mislead the public.

    (3) intentionally providing facilities for storage, transport, mailing or
concealing in favour of an infringement of another person’s right to exclusive
use of a registered trademark.

    Article 42  Where the right to exclusive use of a registered trademark is
infringed, any person may lodge a charge of the infringement with or report

REGULATIONS OF FINANCIAL INSTITUTIONS ON SPOT AND FORWARD FOREIGN CURRENCY TRANSACTIONS ON BEHALF OF CLIENTS

THE STATE COUNCIL’S OFFICIAL REPLY CONCERNING THE RENAMING OF THE FOREIGN ECONOMIC AND TRADE ARBITRATION COMMISSION AS THE CHINA INTERNATIONAL ECONOMIC AND TRADE ARBITRATION COMMISSION AND THE AMENDMENT OF ITS ARBITRATION RULES