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1995

REGULATIONS CONCERNING THE ADMINISTRATION OF THE WORK FOR THE PROTECTION OF UNDERWATER CULTURAL RELICS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-10-20 Effective Date  1989-10-20  


Regulations of the People’s Republic of China Concerning the Administration of the Work for the Protection of Underwater Cultural
Relics



(Promulgated by Decree No. 42 of the State Council of the People’s

Republic of China on October 20, 1989 and effective as of the date of
promulgation)

    Article 1  These Regulations are formulated in accordance with the
pertinent provisions of the Law of the People’s Republic of China for the
Protection of Cultural Relics for the purpose of strengthening the
administration of the work for the protection of underwater cultural relics.

    Article 2  The term “underwater cultural relics” referred to in these
Regulations denotes the human cultural heritage that has historic, artistic
and scientific values and that remains in the following waters:

    (1) all the cultural relics of Chinese origin, or of unidentified origin,
or of foreign origin that remain in the Chinese inland waters and territorial
waters;

    (2) cultural relics that are of Chinese origin or of unidentified origin
that remain in sea areas outside the Chinese territorial waters but under
Chinese jurisdiction according to the Chinese law;

    (3) cultural relics of Chinese origin that remain in sea areas outside the
territorial waters of any foreign country but under the jurisdiction of a
certain country, or in the high seas.

    The provisions in the preceding paragraph shall not cover objects that
have remained underwater since 1911 that have nothing to do with important
historical events, revolutionary movements or renowned personages.

    Article 3  The ownership of the underwater cultural relics specified in
Items (1) and (2) of Paragraph 1 of Article 2 of these Regulations shall
reside in the state and the state shall exercise jurisdiction over them; with
respect to underwater cultural relics specified in Item (3) of Paragraph 1 of
Article 2 of these Regulations, the state shall have the right to identify
the owners of the objects.

    Article 4  The State Administration for Protection of Cultural Relics
shall be the competent authority in charge of the registration of underwater
cultural relics, of the administration of the protection thereof, and of the
work of examination and approval concerning the archaeological exploration and
excavation activities with respect to underwater cultural relics.

    Administrative departments for cultural relics at various levels in the
localities shall be in charge of the protection of the underwater cultural
relics in their respective administrative regions and shall, in conjunction
with the archaeological and research institutions for cultural relics, be in
charge of the work to identify and assess the value of underwater cultural
relics. With respect to underwater cultural relics in sea waters, the State
Administration for Protection of Cultural Relics may designate the
administrative departments for cultural relics in the localities to be in
charge of the administration of the work for the protection of underwater
cultural relics.

    Article 5  On the basis of the value of underwater cultural relics, the
State Council and the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government may in
accordance with the pertinent procedures specified in the provisions in
Chapter II of the Law of the People’s Republic of China for the Protection of
Cultural Relics, determine the underwater cultural relics protection units and
underwater cultural relics reserves at the national or provincial levels and
publicly announce them.

    Within the limits of the underwater cultural relics protection units and
underwater cultural relics reserves, any activities that may jeopardize the
safety of the underwater cultural relics, such as fishing and demolitions,
shall be prohibited.

    Article 6  Any units or individuals that have discovered by any means
underwater cultural relics specified in Items (1) and (2) of Paragraph 1 of
Article 2 of these Regulations shall report promptly to the State
Administration for Protection of Cultural Relics or to the administrative
departments for cultural relics in the localities and those that have been
fished up shall be handed over promptly to the State Administration for
Protection of Cultural Relics or to the administrative departments for
cultural relics in the localities to be properly dealt with.

    Any units or individuals that have discovered by any means underwater
cultural relics specified in Item (3) of Paragraph 1 of Article 2 of these
Regulations shall report promptly to the State Administration for Protection
of Cultural Relics or to the administrative departments for cultural relics in
the localities and those that have been fished up shall be turned in promptly
to the State Administration for Protection of Cultural Relics or to the
administrative departments for cultural relics in the localities to be
identified and assessed.

    Article 7  Archaeological exploration and excavation activities with
respect to underwater cultural relics shall have, as their objective, the
protection of cultural relics and scientific research.

    Any units or individuals that intend to conduct in the waters under
Chinese jurisdiction archaeological exploration or excavation activities with
respect to underwater cultural relics shall apply to the State Administration
for Protection of Cultural Relics and submit the relevant data. Without
approval by the State Administration for Protection of Cultural Relics, no
units or individuals may conduct by any means unauthorized exploration or
excavation.

    Foreign countries, international organizations and foreign legal persons
or natural persons that are to conduct in the waters under Chinese
jurisdiction archaeological exploration or excavation activities shall do so
in cooperation with the Chinese side and shall submit their application
therefor to the State Administration for Protection of Cultural Relics, which
shall further submit it to the State Council of the People’s Republic of China
for special approval.

    Article 8  With respect to any units or individuals that have been
permitted to effect archaeological exploration or excavation activities with
respect to underwater cultural relics, if the range of their activities covers
water under the jurisdiction of the harbour superintendancy, the case shall be
reported to the harbour superintendancy for verification and approval and the
harbour superintendancy shall, upon verification and approval, delineate the
safe operation area(s) and put out a navigation notice.

    Article 9  Any units or individuals that are effecting archaeological
exploration or excavation activities with respect to underwater cultural
relics shall, in addition to complying with these Regulations, abide by other
laws and regulations of China and accept the administration by the departments
concerned, shall observe rules concerning underwater archaeological
activities, diving and navigation and ensure the safety of the personnel and
the underwater cultural relics, shall prevent the water from environmental
pollution and protect the underwater biological resources and other natural
resources from damage, shall protect all the surface and underwater facilities
and may not obstruct communication and transportation, fishery production,
military drills and other normal surface and underwater operations and
activities.

    Article 10  Those who have made outstanding contributions to the
protection of underwater cultural relics, if the circumstances are in
conformity with those specified in the provisions in Article 29 of the Law of
the People’s Republic of China for the Protection of Cultural Relics, shall be
commended or rewarded.

    Those who, in violation of the provisions in Articles 5, 6 and 7 of these
Regulations, damage underwater cultural relics, or explore, excavate or dredge
up underwater cultural relics without authorization, or hide, share secretly,
traffic in, illicitly sell or illicitly export underwater cultural relics, if
the circumstances are found to be those specified in the provisions in
Articles 30 and 31 of the Law of the People’s Republic of China for the
Protection of Cultural Relics, shall be given administrative sanctions or have
their criminal liability investigated in accordance with the law.

    With respect to those who violate the provisions in Articles 8 and 9 of
these Regulations, if the violation has resulted in serious consequences, the
administrative department for cultural relics shall, in conjunction with the
departments concerned, order the operation to be suspended and set a deadline
for correction or shall give such administrative sanctions as withdrawing the
approval granted, with an additional imposition of a fine ranging from
Renminbi 1,000 yuan to 10,000 yuan.

    Article 11  The State Administration for Protection of Cultural Relics
shall be responsible for the interpretation of these Regulations.

    Article 12  The rules for the implementation of these Regulations shall be
formulated by the State Administration for Protection of Cultural Relics.

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





REGULATIONS ON THE COMPOSITION OF GROSS WAGES

Regulations on the composition of gross wages

     (Ratified by the State Council on September 30th, 1989 and promulgated as the No. 1 Instruction of the National Bureau of Statistics
on January 1st, 1990)

Chapter 1 General Rules

   Article 1 The regulations are formulated in order to unify the coverage of gross wages, to guarantee unified statistical and fiscal accounting
of wages by the state, to be in favor of compilation and examination of plans and wage administration and to reflect wage income
of employees correctly.

   Article 2 As to enterprises and institutions owned by the whole people or by collectives, different kinds of jointly-operated units and all
levels of state organs, party organs and social organizations, these regulations must be observed for computation related to the
scope of gross wages in planning, statistics and accounting.

   Article 3 Gross wages refer to the total labor rewards paid directly to the total work force by each unit during a given period.

The computation of gross wages should be based on the total labor rewards paid directly to employees.

Chapter 2 the Composition of Gross Wages

   Article 4 Gross wages are composed of the following six parts:

(1) Hourly wages;

(2) Piece wages;

(3) Bonuses;

(4) Allowances and subsidies;

(5) Overtime wages;

(6) Wages paid in particular cases.

   Article 5 Hourly wages refers to labor rewards paid to individuals according to the time rate (regional subsistence allowance included) and
working hours, which include:

(1) Wages paid for finished works according to the time rate;

(2) Basic wages and job (post) classification wages paid to employees by units that exercise the composite wage system;

(3) The probation wages of employees who join work newly ( living expenses of apprentices);

(4) Physical allowances of athletes.

   Article 6 Piece wages refer to labor rewards paid to finished works by the unit price of piecework, which include

(1) Wages paid to individuals by exercising excess progression piece-rate system, direct infinite piece-rate system, norm piece-rate
system or over standard piece-rate system according to the ration and unit price of piecework approved by labor departments or competent
authorities;

(2) Wages paid to individuals in the way of assignments’ contracts;

(3) Wages paid to individuals in the way of turnover drawing or profit drawing.

   Article 7 Bonuses refer to labor rewards paid to employees for their excess works or their increased profits and saved spending, which include

(1) Production awards;

(2) Saving awards;

(3) Labor emulation incentives

(4) Incentive wages of government units and institutions;

(5) Other bonuses.

   Article 8 Allowances and subsidies refer to allowances paid to employees to compensate their particular or extra labor expenditure or due
to other specific reasons and price subsidies paid to employees to guarantee that their wage level is not affected by the general
price.

(1) Allowances that include allowances for compensating particular or extra labor expenditure, allowances for health protection,
technical allowances, allowances as annual awards or other allowances.

(2) Price subsidies that include different kinds of subsidies paid to guarantee that the wage level of employees is not affected
by the inflation of prices or fluctuations.

   Article 9 Overtime job wages refers to wages paid for extra works as required.

   Article 10 Wages paid in particular cases, which include

(1) Wages paid in the light of the time rate or piece rate for reasons of sick leave, work injury leave, maternity leave, family
planning leave, wedding leave, leave for arranging funeral, private affair leave, home leave, regular leave, out-of-service study,
implementation of state or social duties according to regulations of the state laws, rules and policies.

(2) Supplementary wages and retained wages

Chapter 3 Items not Included in Gross Wages

   Article 11 The following is not included in gross wages:

(1) Invention-innovation awards, natural science awards, technological progress awards, rationalized proposal and technical advance
awards and bonuses paid to athletes and coaches;

(2) General expenses related to labor insurance and employees’ benefits;

(3) Expenditures related to the treatment of retired personnel;

(4) Expenditures related to labor protection;

(5) Copy money, lecture money and other specific business considerations;

(6) Food allowances and food delay allowances on business trips, traveling expenses for work transfers and family steadied allowances;

(7) Compensation cost paid for instrument or livestock brought by employees to enterprises;

(8) Risk offsetting receipts of leaseholders of units that exercise business operations under lease;

(9) Dividends (profit sharing of share capital) and interests paid to employees who purchase stocks or bonds of principal enterprises;

(10) Medical allowances and living allowances paid by enterprises to employees under the system of labor contract when labor
contracts are released;

(11) Commission charges or overhead cost besides wages paid to units that offer work force as seasonal workers;

(12) Processing charges paid to household workers and contract award expenses paid to contracting agencies according to the processing
ordering method;

(13) Allowances paid to students who take part in works in enterprises;

(14) Single child allowances required by family planning.

   Article 12 Items listed in the last article are accounted separately according to state regulations.

Chapter 4 Additional Rules

   Article 13 Calculations related to the scope of gross wages of privately operated units, units operated by overseas Chinese or industrialists
and businessmen from Hong Kong, Macao and Taiwan and units operated by foreign businessmen shall follow these regulations.

   Article 14 These regulations shall be interpreted by the State Statistical Bureau.

   Article 15 Regulations on specific scope of gross wages compositions shall be established by each region and each department based on these
regulations.

   Article 16 These regulations go into effect since the date of issuance and the ” Provisional Rules on Gross Wages Composition” issued by the
State Council on May 21st, 1955 shall be abolished at the same time.

    

National Bureau of Statistics of China





PROCEDURES FOR THE ADMINISTRATION OF THE FOREIGN EXCHANGE INVOLVED IN INVESTMENT ABROAD

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-03-06 Effective Date  1989-03-06  


Procedures for the Administration of the Foreign Exchange Involved in Investment Abroad



(Approved by the State Council of the People’s Republic of China on

February 5, 1989 and promulgated by the State Administration of Foreign
Exchange Control on March 6, 1989)

    Article 1  These Procedures are formulated for the purpose of promoting
economic and technological co-operation with foreign countries, strengthening
the administration of the foreign exchange involved in investment abroad and
facilitating the achievement of a balance of international payments.

    Article 2  The terms “investment abroad” referred to in these Procedures
means the establishment of various kinds of enterprises abroad or the purchase
of and holding shares abroad (hereinafter collectively referred to as
“Chinese-invested enterprises abroad”) by corporations, enterprises and other
economic organizations registered inside China (not including enterprises
with foreign investment) to engage in production and business activities.
Matters related to the foreign exchange involved in investment abroad shall
be governed by these Procedures.

    Article 3  Corporations, enterprises or other economic organizations that
intend to make investment abroad shall, prior to going through the procedures
of application, examination and approval of investment abroad with the
competent State authorities, provide the department for control of foreign
exchange with the information on the administration exercised by the countries
(or regions) where their investment is to be over the foreign exchange
involved in investigated by foreign countries and the relevant data, and
submit to the department the certifying documents on the source(s) of the
funds in foreign exchange earmarked for investment abroad. The department for
control of foreign exchange shall be responsible for the risk examination of
the foreign exchange earmarked for investment abroad and for the examination
of the source(s) of the funds in foreign exchange and shall present within 30
days the conclusions in writing drawn from the examinations.

    Article 4  Corporations, enterprises or other economic organizations
(hereinafter referred to as “domestic investors”) that have been permitted to
make investment abroad shall handle with the department for control of
foreign exchange the procedures of registration and of remitting abroad the
funds in foreign exchange earmarked for investment abroad by presenting the
following materials:

    1. the documents of approval issued by the competent State authorities;

    2. the conclusions in writing drawn by the department for control of
foreign exchange from the risk examination of the foreign exchange earmarked
for investment abroad and the examination of the source(s) of the funds in
foreign exchange; and

    3. the contract of the investment project or other document(s)that may
serve to certify the amount of the funds in foreign exchange that the domestic
investors shall remit abroad.

    In handling the procedures of registration and of remitting abroad the
funds in foreign exchange earmarked for investment abroad as prescribed in
the first paragraph of this Article, the department for control of foreign
exchange shall re-examine the source(s) of the funds in foreign exchange of
the domestic investors.

    Article 5  In going through the procedures of registration, the domestic
investors shall place a deposit as a guarantee that they shall remit the profit
back to China (hereinafter referred to as “guarantee deposit”) which is equal
to 5 percent of the amount of funds in foreign exchange to be sent abroad.
The guarantee deposit shall be placed in a special account in a bank
designated by the department for control of foreign exchange. The guarantee
deposit shall be refunded when the total amount of profit remitted back to
China is equal to the amount of funds in foreign exchange sent abroad. The
interest on the guarantee deposit shall be paid to the domestic investors in
accordance with the standard rate prescribed by the State.

    If the domestic investors experience real difficulty in placing the
guarantee deposit, they may give a written commitment to the department for
control of foreign exchange that the enterprise abroad in which they invest
shall remit regularly the profit or other incomes in foreign exchange back to
China.

    Article 6  The profit or other incomes in foreign exchange derived by
domestic investors from their investment abroad shall be repatriated within
6 months as of the end of the local accounting year and settled as foreign
exchange or retained as spot exchange in accordance with the pertinent
provisions of the State. Without the approval by the department for control of
foreign exchange, they may not be diverted to other uses or kept abroad.

    Article 7  The share of profit or other incomes in foreign exchange that
domestic investors receive from the enterprise abroad in which they invest
shall be retained in full in the first five years as of the date of the
establishment of the enterprise and shall be retained at a percentage
calculated in accordance with the pertinent provisions of the State as of the
end of the first five years.

    Article 8  A Chinese-invested enterprise abroad may, on the basis of the
need of its business operations, raise funds on its own. But without approval
by the State Administration of Foreign Exchange Control, its domestic investors
may not provide guarantee for it by any means.

    Article 9  The annual accounting statements of a Chinese-invested
enterprise abroad, including the statement of assets and liabilities and the
statement of loss and profit, shall, within 6 months as of the end of the
local accounting year, be submitted by its domestic investors to the
department for control of foreign exchange.

    Article 10  If a Chinese-invested enterprise abroad is to make changes in
its capital, its domestic investors shall apply in advance to the original
examining and approving authorities for approval and the changes shall be
reported to the department for control of foreign exchange for the record.

    Article 11  If domestic investors are to transfer the shares of stock
of the enterprise abroad in which they invest, they shall submit to the local
department for control of foreign exchange, a report for the transfer thereof
and shall repatriate the incomes in foreign exchange thus obtained within 30
days after the completion of the transfer.

    Article 12  If a Chinese-invested enterprise abroad terminates its
business operations or is dissolved in accordance with the laws of the country
(or region) in which it is located, its domestic investors shall repatriate
the assets in foreign exchange that they are enpost_titled to obtain and may not
divert them to other uses or keep them abroad without authorization.

    Article 13  If a Chinese-invested enterprise abroad fails to remit back
to China their profit or other incomes in foreign exchange in accordance with
their profit plan, its domestic investors shall submit to the department for
control of foreign exchange a report on their failure to fulfil their profit
plan on schedule or on the losses sustained in business operations. If they
fail to offer sufficient justification, the department for control of foreign
exchange may deduct from their guarantee deposit a corresponding proportion
of foreign exchange and sell it to the State. If the domestic investors have
not opened a guarantee deposit account, the department for control of foreign
exchange shall deduct from their retained foreign exchange a corresponding
amount and turn it over to the State, but the total amount deducted shall not
exceed 20 percent of the amount of the funds in foreign exchange that has
been remitted abroad.

    Article 14  If domestic investors violate the provisions in Articles 6,11
and 12, the department for control of foreign exchange shall order them to
repatriate the foreign exchange involved within a prescribed period of time
and may impose a fine amounting from 10 percent up to 20 percent of the amount
that should be repatriated.

    If domestic investors violate the provisions in Articles 9 and 10 to a
serious extent, the department for control of foreign exchange may impose
on them a fine of Renminbi 100,000 yuan or less.

    Violators of the other provisions of these Procedures shall be dealt with
in accordance with the provisions of the Rules for the Implementation of
Penalties on Violations of Foreign Exchange Control.

    Article 15  The domestic investors of the Chinese-invested enterprise
abroad established before these Procedures go into effect shall, within 60
days starting from the day on which these Procedures go into effect and in
accordance with the relevant provisions of these Procedures, approach the
department for control of foreign exchange to make up for the submission of
the relevant materials and go through the procedures of registration and
shall repatriate their incomes in foreign exchange in accordance with the
relevant provisions.

    Article 16  The State Administration of Foreign Exchange Control shall be
responsible for the interpretation of these Procedures.

    Article 17  These Procedures shall go into effect as of the date of
promulgation.





REGULATIONS ON THE PAYMENT OF ROYALTY FOR THE EXPLOITATION OF OFFSHORE PETROLEUM RESOURCES

Regulations on the Payment of Royalty for the Exploitation of Offshore Petroleum Resources

     (Effective Date:1989.01.01–Ineffective Date:)

   Article 1. In the interest of developing the national economy, expanding international economic and technological cooperation and encouraging
the exploitation of offshore petroleum resources in China, these Regulations are formulated in accordance with the “Regulations of
the People’s Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises”.

   Article 2. Any Chinese and foreign enterprises engaging, in accordance with the laws, in exploitation of offshore petroleum resources within
the inland water, territorial sea and continental shelf of the People’s Republic of China and in all sea area within the limits of
national jurisdiction of the People’s Republic of China shall pay royalty in accordance with these Regulations.

   Article 3. Royalty shall be computed and paid on the basis of the Annual Gross Production of Crude Oil or Natural Gas of each oil or gas field
at the following rates:

1. Crude Oil:

Royalty shall be exempted on the portion of the Annual Gross Production of Crude Oil not exceeding one million tonnes;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within one million tonnes to 1.5 million tonnes shall be
4%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 1.5 million tonnes to 2 million tonnes shall be 6%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 2 million tonnes to 3 million tonnes shall be 8%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 3 million tonnes to 4 million tonnes shall be 10%;
and

Royalty rate for the portion of the Annual Gross Production of Crude Oil exceeding four million tonnes shall be 12.5%.

2. Natural Gas

Royalty shall be exempted on the portion of the Annual Gross Production of Natural Gas not exceeding 2 billion cubic meters;

Royalty rate for the portion of the Annual Gross Production of Natural Gas within 2 billion cubic meters to 3.5 billion cubic meters
shall be 1%;

Royalty rate for the portion of the Annual Gross Production of Natural Gas within 3.5 Billion cubic meters to 5 billion cubic meters
shall be 2%; and

Royalty rate for the portion of the Annual Gross Production of Natural Gas exceeding five billion cubic meters shall be 3%.

   Article 4. Royalty for both Crude Oil and Natural Gas shall be paid in kind.

   Article 5. Royalty of Crude Oil and Natural Gas shall be collected and administered by the tax authorities.

Royalty for the Sino-foreign cooperative oil and/or gas field shall be first withheld by the operator of such oil and/or gas field
and handed over to the China National Offshore Oil Corporation which will be responsible for the royalty payment.

   Article 6. Royalty shall be calculated on annual basis and pre-payable periodically or on the basis of operation. The final settlement shall
be made after the end of each year. The timing for prepayment and settlement shall be determined by the tax authorities.

   Article 7. The operator of each oil and/or gas field shall provide to the tax authorities the production data of the said oil and/or gas field
and other related information required by the tax authorities within 10 days after the end of each quarter.

   Article 8. The withholding agent and paying agent shall make the royalty payment within the time limit prescribed by the tax authorities. The
tax authorities shall impose a late payment penalty of 1:1000 per day on the amount of the royalty in arrears, counting from the
first day on which the payment becomes overdue.

   Article 9. The tax authorities may, acting at their discretion, impose a penalty of less than Rmb5,000 on any operator of oil and/or gas field
who has violated the provisions of Article 7 hereof, by not submitting the royalty, the actual production data of the oil and/ or
gas field or relevant information required to the tax authorities in time. A penalty of less than five times of the royalty otherwise
payable shall be imposed on those who make false report on the actual production.

   Article 10. The definitions of the following terms as used in these Regulations are:

1. “Crude Oil” means solid and liquid hydrocarbons in their natural state, including any liquid hydrocarbons extracted from natural
gas except for methane (CH4).

2. “Natural Gas” means non-associated natural gas and associated natural gas in their natural state.

“Non-associated Natural Gas” means all gaseous hydrocarbons produced from gas reservoirs, including wet gas, dry gas and residue gas
remaining after the extraction of liquid hydrocarbons from wet gas.

“Associated Natural Gas” means all gaseous hydrocarbons produced in association with Crude Oil from oil reservoirs, including residue
gas remaining after the extraction of liquid hydrocarbons therefrom.

3. “Annual Gross Production of Crude Oil” means the total amount of Crude Oil produced from each oil field within the contract area
in each calendar year less the amount of crude oil used for petroleum operations and the amount of losses.

4. “Annual Gross Production of Natural Gas” means the total amount of natural gas produced from each oil field and/or gas field within
the contract area in each calendar year less the amount of natural gas used for petroleum operations and the amount of losses.

   Article 11. These Regulations shall go into effect from January 1, 1989.

    





CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF SUGGESTIONS SUBMITTED BY THE STATE TAXATION ADMINISTRATION CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF TAX REDUCTIONS AND EXEMPTIONS

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-01-03 Effective Date  1989-01-03  


Circular of the General Office of the State Council Concerning the Approval and Transmission of Suggestions Submitted by the State
Taxation Administration Concerning the Appraisal, Rectification, and Strict Control of Tax Reductions and Exemptions


SUGGESTIONS CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF

(January 3, 1989)

    The report “Suggestions Concerning the Appraisal, Rectification, and
Strict Control of Tax Reductions and Exemptions” submitted by the State
Taxation Administration has been approved by the State Council, and is now
hereby transmitted for implementation. Please report the results of appraisal
and rectification to the State Council by the end of March, 1989.
SUGGESTIONS CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF
TAX REDUCTIONS OR EXEMPTIONS

    Last year, after the promulgation of “Decisions Concerning the Better
Enforcement of Taxation Laws and Discipline and the Improvement of Tax
Collection” by the State Council, each locality investigated and appraised
cases where excessive authority was used to grant tax reductions or exemptions
and rectified some of them. Definite positive effects have been achieved as a
result. However, because some localities have placed undue emphasis on partial
and local interests, this issue has not been thoroughly investigated and
rectified, and those cases that should be corrected remain uncorrected. Since
this year, some localities have been continuously exceeding their authority to
reduce or exempt taxes on new items. This has seriously affected the
macro-control of the national economy and the stable increase of fiscal
revenue. In conformity with the requirements of the State Council on the
prohibition of the downward spread of the power of tax collection and the
strict control of tax reductions and exemptions, the whole-hearted
rectification of reduced and exempted taxes, suggestions concerning the
appraisal, rectification, and strict control of tax reduction and exemption
are hereby put forward as follows:

    1. In order to strictly control the blind development of some special
kinds of consumer goods and goods in over-supply, no locality may reduce or
exempt product taxes or value-added taxes on tobacco, alcoholic beverages,
firecrackers, fireworks, clocks, watches, bicycles, sewing machines, electric
fans, refrigerators, motorcycles, washing machines, vacuum cleaners, air
conditioners, electronic keyboards, pianos, TV sets, tape recorders, cassette
players, video cassette recorders, electronic video games, pull-top cans,
canned beverages, aluminum doors or windows, architectural decorations,
kilowatt-hour meters, saccharin, adhesive clay bricks or tiles, cosmetics for
the skin and hair, and articles for use in a memorial ceremony, which are
produced or marketed in that locality, regardless of the ownership or type of
enterprise. No product tax, value-added tax, or income tax may be reduced or
exempted for small scale wool mills, cotton mills, silk mills, oil refineries,
lacquer factories, metal rolling factories, cigarette factories, or alcoholic
beverage factories.

    The reduction or exemption of taxes on all aforesaid items that have
already been approved shall be suspended and normal collection resumed as of
January 1, 1989. From now on, in order to meet the demands of state
macro-control, the State Taxation Administration is authorized, when
necessary, to list additional items that may not be subjected to tax
reductions or exemptions.

    2. For importing market-saturated goods, consumer goods for which market
prices have been freed, and state-restricted imports, product taxes and
value-added taxes on the importation of these goods may not be reduced or
exempted. For export products manufactured by enterprises, a complete tax
refund will be given at the time of export, and therefore no product tax or
value-added tax on the production of export products manufactured by
enterprises may be reduced or exempted.

    3. Appraisal and rectification of tax reductions or exemptions for various
companies. Taxes on comprehensive companies, banking companies and companies
in service industries should be collected according to stipulations and
regulations. No product tax, value-added tax, or business tax which should be
paid may be reduced or exempted, and such reductions or exemptions which have
been approved should be suspended immediately. In the event of true
difficulties in paying income taxes during the early stage of operation, the
period of the reduction of or exemption from income tax shall be less than one
year; reductions or exemptions from income tax that have already been approved
to exceed one year shall be enforced according to the above regulations.

    4. The unified preferential policy of tax reductions or exemptions for
township enterprises stipulated by the state shall continue to be implemented,
and within the limits of their respective authorities over tax administration,
all localities shall strictly control the reduction of or exemption from
product taxes, value-added taxes, and business taxes. Approvals of tax
reduction or exemption by any locality which exceeds its respective authority
shall cease immediately. After strict verification, a special consideration of
one year reduction of or exemption from income tax may be granted to a small
number of enterprises that have authentic difficulties in paying taxes in the
early stage of operation. Any alteration of income tax rates or any collection
at a reduced portion of the tax rate by any locality must be corrected and
normal collection resumed. The range of itemized expenditures before income
tax payment shall be implemented strictly in accordance with the provisions
uniformly stipulated by the state, and may not be extended without
authorization. The examination and approval of reductions or exemptions for
township enterprises should be handled strictly in accordance with the
stipulations by present administrative systems, and the power of examination
and approval may not be transferred to lower levels of authority. After the
period for tax reduction or exemption for enterprises comes to an end, no
enterprise may obtain further tax reductions or exemptions by changing factory
names, product names, or the trademarks thereof, nor through other fraudulent
means. The discovery of such acts shall be treated and prosecuted as tax
evasion.

    5. All localities and departments must strictly implement the uniform
national policies governing foreign-related taxation, and may not exceed their
respective authorities to determine preferential treatment on foreign-related
taxation. All unauthorized decisions on reduction of or exemption from taxes,
which are in violation of uniform national taxation laws and administrative
regulations promulgated by the State Council, are invalid and should be
publicly repealed and corrected.

    6. In order to make greater efforts to cut down the scale of
infrastructure construction, the macro-control role of the construction tax
should be fully brought into play, and a construction tax on construction
investments made outside the state plan shall be strictly imposed. No locality
or department may reduce or exempt taxes without authorization, with the
exception of those tax reductions or exemptions stipulated uniformly in
taxation laws and regulations.

    7. The tax authorities at various levels shall strengthen their
supervision and control on tax reductions or exemptions and rigorously enforce
procedures of examination and approval. In handling tax reductions or
exemptions, all tax authorities at various levels shall implement laws and
regulations impartially, and may not abuse their authority for selfish
benefits. With respect to those items of tax reduction or exemption of very
large amounts or widespread influence, the tax authorities shall carry out
specific investigations, examine them collectively, and report to higher
authorities level by level for approval. No individual may make decisions
regarding tax reductions or exemptions, and those who are in violation of this
stipulation shall be severely punished.

    8. The appraisal and rectification of tax reductions or exemptions is a
policy-oriented task. It involves the economic interests of all localities,
departments, and units. The local people’s governments at various levels shall
strengthen their leadership and make earnest appraisals and rectifications
from the perspective of the general public interest and macro-scopic demands.
We suggest one leader from each province, autonomous region, and municipality
directly under the Central Government be appointed to take charge of this task.





CITY PLANNING LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.23

The City Planning Law of the People’s Republic of China, adopted at the 11th Meeting of the Standing Committee of the Seventh National
People’s Congress on December 26, 1989, is promulgated now, and shall enter into force as of April 1, 1990.

President of the People’s Republic of China Yang ShangKun

December 26, 1989

City Planning Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Formulation of the Plan for a City

Chapter III Development of New Urban Areas and Redevelopment of Existing Urban Areas

Chapter IV Implementation of City Planning

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated to determine the size of a city, define the orientation of its development, realize the goals of its economic
and social development, and map out its plan and carry out its construction on a rational basis in order to meet the needs in socialist
modernization.

Article 2

This Law shall be observed when the plan for a city is being formulated or implemented, or when construction is being carried out
within a planned urban area.

Article 3

The term ” city ” used in this Law applies to a municipality directly under the Central Government, a city or a town established as
one of the administrative divisions of the state.

The term ” a planned urban area ” used in this Law applies to an urban district, an inner suburban district or an area needed for
urban development and construction as one of the administrative divisions of a city. The scope of a planned urban area shall be determined
by the people’s government of a city, while compiling a comprehensive plan for the city.

Article 4

The state shall guide itself by the principle of strictly controlling the size of large cities and developing medium-sized and small
cities to an appropriate extent in the interest of a rational distribution of productive forces and of the population.

A ” large city ” means one which has a non-agricultural population of 500, 000 or more in its urban and inner suburban districts.

A ” medium-sized city ” means one which has a non-agricultural population of over 200,000 but less than 500,000 in its urban and inner
suburban districts.

A ” small city ” means one which has a non-agricultural population of less than 200,000 in its urban and inner suburban districts.

Article 5

City planning must suit the specific conditions of our country and embody a correct handling of the relationship between short-term
and long-term development.

The principle of usefulness and economy and of building the country through thrift and hard work must be adhered to in construction
in a planned urban area.

Article 6

The compilation of the plan for a city shall be based on the plan for national economic and social development as well as the natural
environment, resources, historical conditions and present characteristics of the city. The plan shall be a comprehensive one which
gives balanced consideration to all factors.

The construction of items of urban infrastructure as defined in the plan for a city shall be incorporated into the plan for national
economic and social development in accordance with the specified procedure for national capital construction, and shall be carried
out step by step in a planned way.

Article 7

The comprehensive plan for a city shall be coordinated with territorial planning, regional planning, water space planning and comprehensive
planning for the use of land.

Article 8

The state shall encourage scientific and technical research in city planning and shall popularize advanced technology in order to
raise the scientific and technical level of city planning.

Article 9

The competent department of city planning administration under the State Council shall be responsible for city planning throughout
the country.

The competent departments of city planning administration of the people’s governments at or above the county level shall be responsible
for city planning in the administrative areas under their jurisdiction.

Article 10

All units and individuals shall have the obligation to abide by the plan for a city and shall have the right to report and bring charges
against any action that runs counter to such a plan.

Chapter II Formulation of the Plan for a City

Article 11

The competent department of city planning administration under the State Council and the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall organize the compilation of hierarchical urban plan for the
whole nation and for the provinces, the autonomous regions and the municipalities directly under the Central Government respectively
in order to provide guidance for the compilation of the plans for the cities.

Article 12

The people’s government of a city shall be responsible for seeing to the compilation of the plan for the same city. The compilation
of the plan for a town which is the seat of the people’s government of a county shall be taken care of by the same people’s government.

Article 13

In the compilation of the plan for a city, it shall be necessary to proceed from actual conditions and make a scientific forecast
of the needs arising from its long-term development. The size of the city, the standards, norms and criteria for the various items
of development, and the development procedure shall conform with the national and local levels of economic and technological development.

Article 14

In the compilation of the plan for a city, attention shall be paid to the protection and improvement of the city’s ecological environment,
the prevention of pollution and other public hazards, the development of greenery and afforestation, the improvement of the appearance
and environmental sanitation of urban areas, the preservation of historic and cultural sites, the traditional cityscape, the local
characteristics and the natural landscape.

In the compilation of the plan for a city in a national autonomous area, attention shall be paid to the preservation of ethnic traditions
and local characteristics.

Article 15

In the compilation of the plan for a city, the principle of facilitating production, benefiting the people’s everyday life, promoting
commodity circulation, enriching the economy and promoting advances in science, technology, culture and education shall be adhered
to.

City planning shall conform with the city’s needs for fire-fighting, the prevention of explosions, the mitigation of earthquakes,
the prevention of floods and of mud-rock flows, public security, traffic control and civil air defence construction. In areas where
strong earthquakes and serious floods are likely to occur, measures for earthquake mitigation and flood prevention must be specified
in the plan for a city.

Article 16

In the compilation of the plan for a city, the principle of optimal utilization and conservation of land shall be observed.

Article 17

For the compilation of the plan for a city, data on exploration and surveying and other necessary basic information shall be made
available.

Article 18

The plan for a city shall, as a rule, be worked out in two stages, i.e. comprehensive planning and detailed planning. For large and
medium-sized cities, district planning may be conducted on the basis of comprehensive planning in order to further control and define
the use of land and determine the scope and capacity of each plot and to coordinate the construction of various items of infrastructure
and public facilities.

Article 19

The comprehensive plan for a city shall cover the designated function of the city, the goals of its development and its projected
size, the standards, norms and criteria for its main building structures, the distribution of land used for various construction
purposes, the functions of different zones, the overall arrangement for construction, the comprehensive urban transportation system,
the system of water spaces and green spaces, the plan for specialized sectors and the plan for immediate construction.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government shall include
a hierarchical urban plan for the administrative divisions of the city or county.

Article 20

The detailed plan for a city shall, on the basis of the comprehensive plan for the city or the plan for its different zones, include
a concrete plan for the various construction projects to be undertaken in the immediate development area of the city.

The detailed plan for a city shall define the scope for the use of land for each construction project within the planned plot and
provide the control indexes for building density and building height, the general layout, the comprehensive plan for utilities engineering
and the plan for site engineering.

Article 21

Plans for cities shall be examined and approved at different levels.

The comprehensive plan for a municipality directly under the Central Government shall be submitted by the people’s government of the
municipality to the State Council for examination and approval.

The comprehensive plan for a city which is the seat of the people’s government of a province or of an autonomous region, or for a
city which has a population of 1,000,000 or more, or for a city otherwise designated by the State Council shall first be examined
and approved by the people’s government of the province or the autonomous region and then submitted to the State Council for examination
and approval.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government other than
those defined in Paragraphs 2 and 3 of this Article shall be submitted to the people’s government of the province, the autonomous
region or the municipality directly under the Central Government for examination and approval. The comprehensive plan for a town
which is the seat of the people’s government of a county administered by a municipality shall be submitted to the relevant municipal
people’s government for examination and approval.

The comprehensive plan for a town with an administrative status other than that defined in the preceding paragraph shall be submitted
to the people’s government of the relevant county for examination and approval.

The people’s government of a city or of a county must submit the comprehensive plan for a city to the people’s congress at the corresponding
level or its standing committee for examination and approval before submitting it to the people’s government at a higher level for
examination and approval.

The plan for a district of a city shall be examined and approved by the people’s government of the city.

The detailed plan for a city shall be examined and approved by the people ‘s government of the city. The detailed plan for a city
which has a district plan shall be submitted to the competent department of city planning administration of the people’s government
of the city for examination and approval, with the exception of important detailed plans which shall be submitted to the people’s
government of the city for examination and approval.

Article 22

The people’s government of a city may make partial readjustments in the comprehensive plan for the city according to needs arising
from the city’s economic and social development, and the comprehensive plan thus readjusted shall be submitted to the standing committee
of the people’s congress at the corresponding level and to the authority which originally approved the plan for the record. Major
readjustments which involve the designated function of the city, its size, the orientation of its development or its overall layout
shall be examined and approved by the people’s congress at the corresponding level or its standing committee before they are submitted
to the authority which originally approved the plan for examination and approval.

Chapter III Development of New Urban Areas and Redevelopment of Existing Urban Areas

Article 23

In the development of new urban areas and the redevelopment of existing urban areas, the principles of unified planning, a rational
layout, consideration of local conditions, comprehensive development and the coordinated construction of support facilities must
be adhered to. The selection and determination of sites for construction projects may not hinder the development of a city, endanger
its safety, cause pollution or a deterioration of its environment or affect the coordination of its various functions.

Article 24

The marshalling yards for newly built railways, trunk lines for freight trains, transit highways, airports and important military
establishments shall be built away from the urban districts.

In the construction of harbours, consideration shall be given to the rational allocation and utilization of a city’s water front,
and the availability of a section of the water front for activities other than production shall be guaranteed.

Article 25

The development of new urban areas shall be carried out in localities where there are conditions for construction like ample water
and energy resources, transportation facilities and means of preventing disasters. Mineral reserves and underground cultural relics
and historical sites shall be avoided.

Article 26

In the development of new urban areas, rational use shall be made of the existing facilities of a city.

Article 27

In the redevelopment of existing urban areas, the principles of good maintenance, rational utilization, readjustment of the layout
and gradual improvement shall be adhered to. Redevelopment shall be carried out by stages on a unified plan. The residential and
transportation conditions in the existing urban areas shall be improved step by step, and special attention shall be given to the
construction of the infrastructure and public facilities so as to enhance the multiple functions of the city.

Chapter IV Implementation of City Planning

Article 28

The plan for a city shall be announced by the people’s government of the city after it is approved.

Article 29

The use of land and all development projects within a planned urban area must conform to the plan for a city and must be subjected
to planning administration.

Article 30

The location and layout of construction projects within a planned urban area must conform to the plan for a city. The design programme
submitted for approval must be accompanied by the statement of opinion on the location issued by the competent department of city
planning administration.

Article 31

When applying for the use of land for a construction project in a planned urban area, the unit or individual undertaking construction
must produce documents stating the approval of the project by the relevant government authorities and apply to the competent department
of city planning administration for the determination of a location for the construction project. The competent department of city
planning administration shall determine the site and its boundary, provide the facilities for planning and designing, and issue a
permit for the planned use of land for construction. Only after acquiring the permit for the planned use of land for construction,
may the unit or individual undertaking construction apply for the use of land to the land administration department of the local
people’s government at or above the county level. After the application is examined and approved by the people’s government at or
above the county level, land shall be allocated by the department of land administration.

Article 32

For the construction of a new building, structure, road, pipeline and cable or any other engineering works, its extension or its alteration
within a planned urban area, application shall be submitted to the competent department of the city planning administration together
with the related documents of approval. The competent department of city planning administration shall issue a permit for a planned
construction project according to the planning and design requirements defined in the plan for the city. The unit or individual undertaking
construction may not apply for the performance of the procedure for the beginning of construction until after acquiring the permit
for a planned construction project.

Article 33

A temporary structure erected within a planned urban area must be demolished within the approved period of time for its use. Measures
for the planning and administration of temporary structures and land for temporary use shall be formulated by the people’s governments
of the provinces, autonomous regions and municipalities directly under the Central Government.

The construction of permanent buildings, structures and other installations shall be banned on land granted for temporary use.

Article 34

All units and individuals must obey the decisions on readjustments in the use of land made by the people’s government of a city according
to the plan for the city.

Article 35

No unit or individual may undertake construction on a road or a public square, in a green space, in a high-voltage power supply corridor,
or by cutting into the space for underground pipelines and cables.

Article 36

The excavation of sand and gravel and of earth within a planned urban area shall be approved by the competent administrative authorities.
No such activity may cause damage to the urban environment or produce a negative effect on city planning.

Article 37

The competent department of city planning administration shall be empowered to inspect the construction projects in a planned urban
area to see if they conform to the requirements of the plan for a city. The party subject to inspection shall state the actual situation
and provide the necessary data. The party conducting inspection shall be obliged to keep technical and business secrets for the party
subject to inspection.

Article 38

The competent department of city planning administration may participate in the checking and acceptance of important development projects
within a planned urban area. The construction unit shall submit to the competent department of city planning administration documents
related to the completion of a development project within a planned urban area within six months of the checking and acceptance of
the project.

Chapter V Legal Liability

Article 39

If, within a planned urban area, land is occupied and used after the acquisition of documents of approval for the use of land for
construction but without the acquisition of a permit for the planned use of land for construction, such documents of approval shall
be declared invalid, and the land occupied shall be returned by order of a people’s government at or above the county level.

Article 40

Construction which is undertaken within a planned urban area without a permit for a planned construction project or not in line with
the requirements stated in the permit and which seriously affects city planning shall, by order of the competent department of city
planning administration of the local people’s government at or above the county level, be suspended, removed within a prescribed
period of time or be punishable by the confiscation of illegal buildings, structures or facilities; construction which affects city
planning but can still be remedied shall, by order of the competent department of city planning administration of the local people’s
government at or above the county level, be corrected within a prescribed period of time and be concurrently punishable by a fine.

Article 41

A person responsible for constructing a project without a permit for a planned construction project or not in line with the requirements
in the permit may be given administrative sanction by the organization where he works or by the competent authority at a higher level.

Article 42

A party refusing to accept the decision on administrative sanction may, within 15 days of receiving the notification on such a decision,
apply for reconsideration to the department next higher to the authorities that decided on the sanction; if the party refuses to
accept the decision of reconsideration, it may, within 15 days of receiving the reconsideration decision, bring a suit before a people’s
court. A party may also bring a suit directly before a people’s court within 15 days of receiving the notification on the sanction.
If, upon the expiration of this period, the party has not applied for reconsideration or has neither brought a suit before a people’s
court nor complied with the sanction, the authorities that decided on the sanction may apply to the people’s court for compulsory
enforcement.

Article 43

Any member of a competent department of city planning administration who neglects his duty, abuses his power or engages in malpractices
for personal gains shall be given administrative sanction by the unit to which he belongs or by the competent higher authorities;
if his act constitutes a crime, he shall be investigated for criminal responsibility according to law.

Chapter VI Supplementary Provisions

Article 44

This Law may be referred to for a residents’ community in an industrial or mining district without the administrative status of a
town.

Article 45

Rules for the implementation of this Law shall be formulated, pursuant to this Law, by the competent department of city planning administration
under the State Council, and shall be implemented after they are submitted to and approved by the State Council.

Measures for the implementation of this Law may be formulated, pursuant to this Law, by the standing committees of the people’s congresses
of the provinces, autonomous regions and municipalities directly under the Central Government.

Article 46

This Law shall enter into force as of April 1, 1990. The Regulations on City Planning promulgated by the State Council shall be abrogated
therefrom.



 
The Standing Committee of the National People’s Congress
1989-12-26

 






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CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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