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1995

CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF THE SUGGESTIONS OF THE MINISTRY OF COMMERCE, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE MINISTRY OF MATERIAL SUPPLIES REGARDING THE FURTHER CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF COMMERCIAL WHOLESALE COMPANIES, FOREIGN ECONOMIC RELATIONS AND TRADE COMPANIES, AND MATERIAL SUPPLY COMPANIES

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-10-18 Effective Date  1989-10-18  


Circular of the State Council Concerning the Approval and Transmission of the Suggestions of the Ministry of Commerce, the Ministry
of Foreign Economic Relations and Trade, and the Ministry of Material Supplies Regarding the Further Checking up and Rectification
of Various Types of Commercial Wholesale Companies, Foreign Economic Relations and Trade Companies, and Material Supply Companies

Circular
SUGGESTIONS OF THE MINISTRY OF COMMERCE CONCERNING THE FURTHER CHECKING UP
SUGGESTIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE
SUGGESTIONS OF THE MINISTRY OF MATERIAL SUPPLIES CONCERNING THE FURTHER

(October 18, 1989)

Circular

    In accordance with the requirements of the “Decision Concerning the Further
Checking Up and Rectification of Companies” of the Central Committee of the
Communist Party of China and the State Council, the suggestions of the Ministry
of Commerce, the Ministry of Foreign Economic Relations and Trade, and the
Ministry of Material Supplies Regarding the Further Checking Up and
Rectification of Various Types of Wholesale Commercial Companies, Foreign
Economic Relations and Trade Companies, and Material Supply Companies, are
hereby transmitted to you, and you are requested to implement accordingly.
SUGGESTIONS OF THE MINISTRY OF COMMERCE CONCERNING THE FURTHER CHECKING UP
AND RECTIFICATION OF VARIOUS TYPES OF WHOLESALE COMMERCIAL COMPANIES (Omitted)
SUGGESTIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE
CONCERNING THE FURTHER CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF
FOREIGN ECONOMIC RELATIONS AND TRADE COMPANIES

    In accordance with the “Decision of the Central Committee of the Communist
Party of China and the State Council Concerning the Further Checking Up and
Rectification of Companies”, and on the basis of the “Circular of the State
Council Concerning the Further Checking Up and Rectification of Various Foreign
Economic Relations and Trade Companies”, suggestions are hereby put forward
concerning the further checking up and rectification of various foreign
economic relations and trade companies (hereinafter referred to as “the foreign
trade companies”):

    1. Foreign trade companies at various levels and of various types attached
to the provinces, autonomous regions, municipalities directly under the Central
Government, and municipalities under separate planning (hereinafter referred
to as “the various localities), as well as those attached to the various
departments under the Central Government, must all conduct the checking up and
rectification strictly. Those foreign trade companies at various levels and of
various types that are not in conformity with the prescribed requirements shall
resolutely be abolished or merged, or their right to handle import and export
trade shall be revoked, strictly in accordance with the provisios of “the
Suggestions Concerning the Abolition or Merger of Companies Attached to the
Various Departments Under the Central Government” put forward by the National
Leading Group for the Checking up and Rectification of Companies. The emphasis
of the checking up and rectification is laid on the foreign trade companies at
various levels and of various types that have been established since 1988;
after the checking up and rectification, if it is really necessary to retain
one or two of them, the case shall be submitted to the Ministry of Foreign
Economic Relations and Trade for re-examination and confirmation strictly in
accordance with the six prerequisites for the establishment of foreign trade
enterprises, as prescribed by the aforesaid Ministry.

    2. Foreign trade companies that fall under one of the following
circumstances shall resolutely be abolished or merged, or their right to handle
import and export trade shall be revoked:

    (1) companies that do not settle their foreign exchange with the Bank of
China or with other banks designated by the State Administration for Foreign
Exchange Control, and have evaded foreign exchange control seriously;

    (2) companies that have colluded with external businessmen and helped them
purchase export goods directly from the inland or handle export business,
thereby helping them evade foreign exchange control;

    (3) companies that have been established in the same department or in the
same region, handling the same or similar business, so they are just
reduplicate setups;

    (4) companies that do not have the necessary conditions for handling
foreign trade, or lack external marketing channels for handling export trade
but do so chiefly by entrusting other companies;

    (5) the branch offices set up by local foreign trade companies outside the
provinces (autonomous regions, or municipalities directly under the Central
Government) for handling import and export business.

    (6) subcompanies of the second or third rank with the right to handle
import and export trade, established by comprehensive foreign trade companies
attached to various local governments.

    3. After the completion of the strict checking up and rectification,
foreign trade companies at various levels and of various types shall be
established in accordance with the following provisions:

    (1) With the exception or the Ministry of Foreign Economic Relations and
Trade, from among the foreign trade companies attached to the various
departments under the Central Government, one company for each of the aforesaid
departments may be retained, depending on their respective needs; where one or
two departments really need(s) to set up companies for specialized products,
the case shall be examined and confirmed by the Ministry of Foreign Economic
Relations and Trade separately; as to the other companies, they shall all be
abolished or merged, or their right to handle import and export business shall
be revoked.

    (2) From among the comprehensive foreign trade companies attached to
provinces (autonomous regions, or municipalities directly under the Central
Government), only one or two shall be retained; as to the other companies, they
shall all be abolished or merged, or their right to handle import and export
business shall be revoked.

    (3) For those localities (including the municipalities at the prefectural
level, the same below) that have already been vested with the right to handle
import and export business, only one or two companies shall be retained with
their right to handle import and export, on condition that they meet the actual
needs and the prescribed requirements; as to the other companies, they shall
all be abolished or merged, or their right to handle import and export business
shall be revoked (with the exception of those companies in Guangdong and
Fujian Provinces which were established before the end of 1987).

    (4) For those economic and technological development zones that have been
approved by the State Council, only one foreign trade company with the right to
handle import and export business shall be retained; as to the other
companies, they shall all be abolished or merged, or their right to handle
import and export business shall be revoked.

    (5) The right to handle import and export trade of those foreign trade
companies attached to the counties (including municipalities at the county
level, the same below) shall be revoked (with the exception of those companies
in Guangdong and Fujian Provinces which were established before the end of
1987). As to one or two special cases where the foreign trade companies meet
the prescribed requirements and handle only the local specialties of their
counties, that is, the third category of export commodities promising a bright
prospect of export sales, and thus it is necessary to retain their right to
handle import and export business, such cases shall be submitted to the
Ministry of Foreign Economic Relations and Trade for approval.

    (6) From among the foreign trade companies, attached to various provinces,
autonomous regions, municipalities directly under the Central Government,
municipalities under separate planning, and special economic zones that handle
barter transactions with the Soviet Union and the East European countries, only
one or two companies shall be retained; as to the other companies, they shall
all be abolished or merged, or their right to handle import or export business
shall be revoked.

    (7) From among the trading companies, attached to counties adjacent to
border ports which are established with the approval of the State Council and
handle petty barter trade in the border areas, only one company shall be
retained for each of the aforesaid counties; where a port county does not meet
the prescribed requirements, a tradeing company at the region (or prefecture,
municipality) level, over the port may be retained; as to the other companies,
they shall all be abolished or merged, or their right to handle petty barter
trade in the border areas shall be revoked.

    4. All international economic and technological cooperation companies
established without the approval by the State Council or by the Ministry of
Foreign Economic Relations and Trade shall all be abolished. With respect to
those international economic and technological cooperation companies (including
those companies which handle economic and technological cooperation business
with the Soviet Union and the East European countries that have been approved
by the State Council or by the Ministry of Foreign Economic Relations and
Trade, and those international economic and technological cooperation companies
that engage in the expansion of business contacts for external economic and
technological cooperation or in the trial management of the exportation of
export commodities of the third category, all the localities and departments
shall, in accordance with the seven prerequisites for the establishment of
companies of the aforesaid type as formulated by the Ministry of Foreign
Economic Relations and Trade, carry out a strict checking up and rectification
on the aforesaid companies, and then submit the cases to the Ministry of
Foreign Economic Relations and Trade for re-examination and confirmation.

    5. It is necessary to re-verify and confirm the business scope of foreign
trade companies at various levels and of various types.

    The first category or exptort commodities, as prescribed by the State,
shall be handled by the national foreign trade corporations, or the national
industry and trade import and export corporations as well as by their branch
offices and subsidiaries in accordance with the approved business scope, and
the aforesaid corporations shall also undertake to fulfil the export plan
transmitted by the State, and the tasks to turn over a definite amount of
foreign exchange earnings to the Central Government. All the other foreign
trade companies are not permitted to handle export commodities of the first
category; where the aforesaid provisions are violated, the foreign exchange
earnings obtained shall all be confiscated and be turned over to the Central
Government, and the responsibilities of the persons in charge shall be
investigated. A strict control should be exercised over the business scope of
foreign trade companies for handling export commodities of the second category.
The foreign trade companies attached to various departments under the Central
Government shall handle products of their own industries in accordance with the
business scope approved by the Ministry of Foreign Economic Relations and
Trade, or handle export commodities of the second or third category in
accordance with the approved business scope; the specialized foreign trade
companies attached to provinces (autonomous regions, municipalities directly
under the Central Government) shall handle export commodities of the second or
third category in accordance with the appraised and confirmed business scope;
as to those comprehensive foreign trade companies attached to provinces
(autonomous regions, or municipalities directly under the Central Government),
the foreign trade companies that are attached to prefectures and have retained
their right to handle import and export business, and the foreign trade
companies in the economic and technological development zones, they shall be
permitted to handle only export commodities of the third category. The various
categories of foreign trade companies that handle export commodities of the
second and third categories shall all undertake to fulfil the export plans and
the tasks to turn over a definite amount of foreign exchange earnings to the
Central Government or to the local governments.

    The import business of foreign trade companies at various levels and of
various types shall be handled in accordance with the business scope of import
commodities approved by the Ministry of Foreign Economic Relations and Trade
and also with the existing pertinent provisions.

    6. The foreign trade companies with their business scope, which are
attached to various localities and various government organs and have been
retained after the checking up and rectification, shall be submitted to the
Ministry of Foreign Economic Relations and Trade for examination and approval;
with respect to the foreign trade companies at various levels and of various
types in Guangdong and Fuiian Provinces that were established after examination
and approval, the framework for the abolishment and merger of these companies
formulated in the process of the checking up and rectification shall also be
submitted to the Ministry of Foreign Economic Relations and Trade for
examination and approval. The foreign trade companies that have been retained
after verification and confirmation shall present the examination and
confirmation certificate issued by the Ministry Foreign Economic Relations and
Trade to the administrative departments for industry and commerce for
examination and approval, and then go through the procedures for registration.

    The foreign trade companies at various levels and of various types located
in Hainan Province and in the special economic zones shall be checked up and
rectified in accordance with the pertinent provisions and the unified
arrangement. The foreign trade companies at various levels and of various types
have been retained after the checking up and rectification shall be submitted
by their respective competent departments for foreign economic relations and
trade to the Ministry of Foreign Economic Relations and Trade for the record.

    In the event that a company has been discovered not in conformity with the
aforesaid provisions, the Ministry of Foreign Relations and Trade has the right
to abolish it, or revoke its right to handle external business, or to readjust
its business scope.

    7. In accordance with the decision of the Central Committee of the
Communist Party of China and the State Council that henceforth government
organs from the State Council down to the people’s governments at various
levels shall, in principle, not directly manage any companies, foreign trade
companies at various levels and of various types as well as companies that
chiefly handle import and export business shall all be placed under the
leadership and administration, in their line of industry and business
operations, by the Ministry of Foreign Economic Relations and Trade and by the
local competent departments for foreign economic relations and trade in
accordance with the unified policies formulated by the State.

    8. After the completion of the checking up and rectification, the import
and export business related to their own products, as conducted by large and
medium-sized technology-intensive production enterprises and conglomerates of
the closely-knit type, shall be examined and approved by the local competent
departments for foreign economic relations and trade, and then submitted to the
Ministry of Foreign Economic Relations and Trade for the record; in the event
that a production enterprise or conglomerate is discovered to be short of the
prescribed qualifications for handling import and export business, the Ministry
of Foreign Economic Relations and Trade has the right to overrule it. An
application, which is filed by a national or transprovincial conglomerate for
handling import and export business, shall be examined and approved by the
Ministry of Foreign Economic Relations and Trade.
SUGGESTIONS OF THE MINISTRY OF MATERIAL SUPPLIES CONCERNING THE FURTHER
CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF MATERIAL SUPPLY
COMPANIES (Omitted)?






REGULATIONS ON PREVENTION AND CURE OF AMBIENT NOISE POLLUTION

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1989-09-26 Effective Date  1989-12-01 Date of Invalidation  1997-03-01


Regulations of the People’s Republic of China on Prevention and Cure of Ambient Noise Pollution

Chapter I  General Provisions
Chapter II  Standards of Ambient Noise and Monitor and Measure of Ambient
Chapter III  Provention and Cure of Industrial Noise
Chapter IV  Provention and Cure of Noise Pollution out of Construction
Chapter V  Provention and Cure of Noise Pollution from Communications
Chapter VI  Provention and Cure of Noise Pollution from Social Lives
Chapter VII  Legal Liabilities
Chapter VIII  Supplementary Provisions

(Adopted by the 47th Executive Meeting of the State Council on September

1, 1989, promulgated by Decree No.40 of the State Council of the People’s
Republic of China on September 26, 1989)(Editor’s Note: These Regulations
have been annulled by Law of the People’s Republic of China on the Prevention
and Control of Environmental Noise Pollution promulgated on October 29, 1996)
Chapter I  General Provisions

    Article 1  With a view to preventing and curing ambient  noise pollution,
ensuring for people a good living environment and safeguarding health of
people, the present Regulations are hereby formulated.

    Article 2  The term “ambient noise” mentioned in the present Regulations
refers to any sound that is produced in industrial production, construction,
transportation, and other social lives and that affects living environment
thereabout.

    The term “ambient noise pollution” mentioned in the present Regulations
refers to emission of the undesired ambient sound to such an extent that
exceeds the state prescribed standards of ambient sound and disturbs people’s
working, studying, living and other normal activities.

    Article 3  Any unit or individual whoever emits undesired ambient sound
within the territory of the People’s Republic of China shall comply with the
present Regulations.

    Article 4  The State Council and local people’s governments at different
levels shall include prevention and cure of ambient noise pollution in their
plans for state economy and society development and shall adopt countermoves
and measures to prevent and cure ambient noise pollution.

    Article 5  Local governments at different levels when formulating
construction programmes for cities, towns and villiages shall properly design
different functional areas and location of constructions, structions and roads
in such a way that prevents the future ambient noise from polluting the
environment and safeguards peace of the living environment.

    Article 6  Environmental protection departments of local governments at
different levels shall be responsible for unified supervision and
administration of prevention and cure of ambient noise pollution.

    Departments at different levels in charge of social security,
transportation, railway and civil aviation shall be responsible for
supervision and control of ambient noise emitted by motor- driven
vehicles, trains, ships and aircrafts respectively.

    Public security organs at different levels shall be resposible for
supervision and control of ambient noise emitted in social lives.

    Article 7  Any unit or individual shall have the duty to protect the
environment from noise pollution and shall have the right to report and charge
against any unit or individual who creates ambient noise pollution.

    Any unit or individual who is directly affected by ambient noise pollution
shall have the right to claim for alleviation and elimination of the harm of
ambient noise pollution.

    Article 8  The State shall encourage scientific research on provention
and cure of ambient noise pollution, spread advanced technology thereof and
improve science and technology on provention and cure of ambient noise
pollution.

    Article 9  The people’s government shall extend praise and reward to those
units and individuals who have made outstanding achivements in provention and
cure of ambient noise pollution.
Chapter II  Standards of Ambient Noise and Monitor and Measure of Ambient
Noise

    Article 10  The environment protection department of the State Council
shall formulate the national quality standards governing ambient noise.

    Local people’s governments at and above the county level shall, according
to prescriptions of diffenent national ambient noise quality standards
applicable to different districts, designate different environmental districts
within their own administrative regions.

    Article 11  The environment protection department of the State Council
shall formulate the national standards governing ambient noise emission
in accordance with the national ambient noise quality standards and in
light of economic and technological conditions.

    The people’s government of province, profecture or autonomous region may
in consideration of local needs formulate local standards governing ambient
noise emission of items which are not covered by the national standards; or
where necessity so arises and where economic and technological conditions so
permit formulate stricter local standards than the national ones on items
already included in the national standards. Local standards governing ambient
noise emission shall be submitted to the environment protection department of
the State Council for record.

    Whenever ambient noise is emitted in the living areas where local
standards governing ambient noise emission are available, the local standards
shall be complied with.

    Article 12  The environment protection department of the State Council
shall establish a system for monitoring and measuring ambient noise, organise
a net for monitoring and measuring ambient noise and formulate unified
methodology for monitoring and measuring ambient noise.

    Article 13  Wherever the ambient noise emission standards are exceeded,
effective measures shall be taken to bring the situation under control and a
fee shall be levied for pollution emission above nomal standards according to
corresponding state provisions. The fees so levied shall be used for the
purpose of provention and cure of ambient noise pollution.

    Article 14  Environment protection departments and other concerned
supervisory and administrative organs shall within their own territory
administration have the power to conduct on- the- spot investigations with any
unit or individual who has ambient noise imitted. The concerned unit and
individual shall report the true situation and supplyy necessary materials.
The investigator shall have the duty to keep confidential technological and
business secrets for the benefit of concerned unit or individual.
Chapter III  Provention and Cure of Industrial Noise

    Article 15  Any new construction, reconstruction or extension shall be
subject to corresponding state provisions regarding environment protection
with construction.

    The report of environmental implications of construction shall include
assessment of possible ambient noise emitted in the construction, provisions
on provention and cure measures and shall be submitted to environment
protection department for approval in accordance with prescribed procedures.

    Finished construction before being used for production or other purposes
shall have its facilities for proventing and curing noise pollution be subject
to the check- up of environment protection department and be deemed up to the
standard.

    Article 16  Wherever industrial noise is emitted to ambient living
environment, a report shall be submited to the environment protection
department of the local government for registration of all facilities that
emits noise, facilities for cure of noise pollution, types, number of noise
sources and intensity of the noise emitted under normal operation conditions;
and relevant materials concerning provention and cure of noise pollution
shall be supplied.

    In case there is a great change concerning the type, number of noise
sources and intensity of noise, it shall be reported in time. Dismantlement or
idling of facilities for cure of noise pollution shall be subject to approval
of environment protection department of the local people’s government.

    Article 17  Enterprises and institutions whenever having noise emitted
into ambient living environment shall comply with corresponding state
prescriptions of standards governing emission of ambient noise within limited
boundary.

    Article 18  Any enterprise or institution who has noise emitted in excess
of the state prescribed standards governing emission of ambient noise within
limited boundary and consequently creates serious environmental pollution
shall cure the situation within a limited time.

    The cure of noise pollution within a limited time by an enterprise or
institution under the auspices of the people’s government at or below the
municipal or county level shall be proposed by the environment protection
department of the municipal or county people’s government. The proposal shall
be submitted for approval to the people’s government at the same level. The
cure of noise pollution within a limited time by an enterprise or institution
under the direct auspices of relevant departments of the State Council or the
people’s government of province, autonomou regions or municipality under the
direct leadership of the central government shall be proprosed by the
environment protection department of the people’s government of province,
autonomous regions or municipality under the direct leadership of the central
government. The proposal shall be submitted for approval the people’s
government at the same level.

    Article 19  In case an enterprise which produces products of urgent
necessity to the national economy is unable to eliminate ambient noise
pollution through controll of noise sources due to actual economical or
technological restrictions, the enterprise shall adopt effect measures to
reduce the harm of noise pollution to a minimum and shall make an agreement
through negotiation with the organisation of suffered residents and other
relevant units opon other arrangements for protection of the rights and
interests of the victims subject to the approval of the local people’s
government.

    Article 20  Any unit who engages in activities with occasional emission of
strong noise shall in advance file an application with the environment
protection department of the local people’s government and the public security
organ, only after the obtainment of approval from which can such activities
be conducted.

    In advance to the occassional emission of strong noise the environment
protection department of the local people’s government and the public security
organ shall make a joint declaration to notify the public.
Chapter IV  Provention and Cure of Noise Pollution out of Construction

    Article 21  Any unit in charge of construction who has noise emitted into
ambient living environment shall comply with state prescribed standards
governing emission of ambient noise within limited boundary of construction.

    Article 22  In case facilities, equipments or other apparatus when used
in construction may create noise in excess to state prescribed standards
governing emission of ambient noise within limited boundary of construction,
a report shall be made 15 days prior to the beginning of construction to
environment protection department of the local people’s government upon the
name of the construction project, the name of the unit in charge of
construction, location and length of construction, intensity of noise possibly
emitted within the construction boundary and measures to be adopted for
prevention and control of noise pollution.

    Article 23  In case the emission of construciton noise exceeds the state
prescribed standards governing emission of ambient noise within limited
construction boundary to the detriment of the ambient living environment,
environment protection department of the local people’s government may impose
restriction upon the time of construction subject to approval of the people’s
government at or above the county level.

    Article 24  It shall be prohibited to conduct construction at night that
creates noise pollution and disturbs the rest of residents in residential
districts, cultural and educaional districts or convalescent districts except
for urgent repairs or emergency. If technology or special necessity requires
continuous construciton, it shall be subject to approval of environment
department of the people’s government at or above the county level.

    Article 25  In case the emission of construction noise into ambient living
environment exceeds state prescribed standards governing emission of ambient
noise within limited construction boundary and is unable to be eliminated
through controll of noise sources due to actual economical or technological
restrictions, effect measures shall be adopted to reduce noise pollution to a
minimum and an agreement shall be made through negotiation with the
organisation of the affected residents and other relevant units opon other
arrangements for protection of the rights and interests of the victims subject
to the approval of the local people’s government.
Chapter V  Provention and Cure of Noise Pollution from Communications

    Article 26  Moving motor vehicles shall have equipped with them silencers
and whistles complying with prescriptions and shall keep effective
technological functions. The whole vehicle shall not emit noise in excess of
prescribed standards governing emission of noise by motor vehicles. Those
which can not reach the standards in terms of noise emission shall not be
licensed.

    Equipment of alarms on fire trucks, ambulances, construction
emergency trucks and security trucks shall comply with corresponding
provisions of the security department. Alarms shall not be used when it
is not an urgent situation and where such use is prohibited.

    Article 27  Different motor-driven ships including hovercrafts shall
use sound signals according to corresponding provisions.

    Article 28  Public security departments and communications
administration departments of the people’s governemnts at or above the
county level may, with a view to preventing and controlling of traffic
noise pollution and reaching the quality standards governing ambient
noise, make their prescriptions as to where and when motor- driven
vehicles and ships are prohibited from moving.

    Article 29  Trains passing or arriving in urban district of a city,
convalescent district or scenic spot shall use only air whistle.

    Article 30  Aircrafts which emit noise when taking off or landing shall
conform to the standards governing emission of noise by aircrafts. Aircrafts
shall be prohibited from exercising hedgehopping in the air over urban
district of a city.

    Article 31  Bus or railway stations, marshalling stations, harbour,
wharfs, airports and other hubs of communications where loudspeakers are used
shall bring the volume of loudspeakers under control so as to reduce the
influence of noise upon ambient environment.
Chapter VI  Provention and Cure of Noise Pollution from Social Lives

    Article 32  Loudspeakers of strong power and propaganda cars with
loudspeakers of strong power shall be banned to be used in public
districts such as streets, squares, parks and convalescent districts
and scenic spots without prior approval of the people’s government at
or above the county level.

    Article 33  It shall be prohibited to make loud noise to canvassing
customer in commercial districts.

    Article 34  Managers of entertainment places, sports gymnasiums and
stadiums shall adopt effective measures to lessen or eliminate the
influence of noise upon ambient environment.

    Article 35  Anyone who uses household appliances or organise indoor
entertainment activities shall control the volume of sound to avoid
disturbing other residents.
Chapter VII  Legal Liabilities

    Article 36  For committing of any of the following offences in
violation of the present Regulations, environment protection department
or other supervisory and administrative organ may, besides charging
the offender to make correction, give him a warning or fine punishement
in light of the seriousness of the offence:

    1) refusal of or lying in report for registration of matters concering
emission of noise as are required by environment protection department
of the State Council;

    2) arbitrarily dismantling or idling facilities for prevention and
cure of noise pollution or having noise emitted in excess of prescribed
standards governing noise  emission without prior approval of
environment protection department;

    3) refusal to accept on-spot investigation of environment protection
department or other supervisory and administrative organ or practicing
fraud during the investigation;

    4) disobey of the provisions of the people’s government regarding
restriction on time of construction or continuing construction without
prior approval at night in residential districts, cultural and
educational districs, convalescent districts which disturbs the rest of
resident;

    5) vehicles emitting noise in excess of prescribed standards governing
emission of noise by motor-driven vehicles;

    6) trains using air whistles when passing or arriving in urban
district of cities, convalescent districts or scenic spots;

    Article 37  In case the fee for emission of pollution fails to be paid, a
fine may be imposed in addition to pursuing the payment of the fee or
the fee for emission of pollution in excess of prescribed standards and
overdue fine.

    Article 38  Committing of any of the following offence in violation of
the present Regulations shall be punished by the public security organs
according to the Regulations of the People’s Republic of China
Regarding Security Administration and Penalties:

    1) using loudspeakers of strong power or propaganda cars with strong
power loudspeakers in public places such as streets, squares, parkes or
in convalescent districts or scenic spots without prior approval of the
people’s government at or above the county level;

    2) resorting to methods with loud noise to canvass customers;

    3) making noise that disturbs others indoors or in public places;

    4) failure to equip or use alarms for vehicles of special purposes in
accordance with correponding provisions;

    5) driving motor vehicles or sailing ships when and where it is
banned to do so;

    Article 39  In case a construction is used for production or other
purposes when facilities for provention and cure of noise pollution
are not finished or up to the corresponding state provisions regarding
environment protection with constructions, the original environment
protection department who reviewed and approved the report of
environment implications of the construction shall order to stop
production or use and may impose a fine as well.

    Article 40  In case an enterprise or institution fails to complete the
ordered treatment of noise within a limited time, a fine may be imposed
in light of the conscequent damages or a charge may be issued to
suspend production or shut down in addition to payment of certain fee
for emission of pollution according to corresponding state provisions.

    The punishment of fine shall be decided by environment protection
department or other supervisory and administrative department. The
charge to suspend production or shut down shall be issued by the
people’s government who ordered the treatment of noise within a limited
time. If the charge to stop production or shut down is to be issued to
an enterprise or institution under the direct auspices of relevant
department of the State Council, it shall be submitted for approval to
the revelant department.

    Article 41  If an offence in violation of the present Regulations
causes serious damages in consequence of noise pollution, the unit to
which the offender is attached or the responible organ at the higher
level shall impose an administrative disciplinary sanction, or in case
a crime is constituted, the criminal liabilities shall be assessed.

    Article 42  If the person concerned refuses to accept the disciplinary
sanction, the person may within 15 days upon receipt of the notice of
sanction apply for reconsideration with the authority of a level
immediately above the organ who decided the sanction. If the person
concerned again refuses to accept the decision after reconsideration,
the person may within 15 days upon receipt of notice of decision after
reconsideration bring a suit with the people’s court. Alternatively the
person concerned may within 15 days upon receipt of the notice of sanction
directly go to the people’s court for legal proceedings. If the deadline for
such actions has been passed with the person concerned neither applying for
reconsideration or sueing with the people’s court nor carrying out the
decision of sanction, the organ who made the decision of sanction shall apply
with the people’s court for enforced implementation of the decision.

    Any refusal to accept punishment of security administration shall be
handled according to the regulations regarding security administration
and penalties.

    Article 43  Any unit or individual who have caused emission of noise
pollution shall have the liabilities to eliminate the consequent harms
and compensate the units or individuals for the losses they directly
suffers.

    Disputes aring from compensation liabilities and volume of damages
shall be handled by environment protection department upon request of
the concerned parties. The concerned party who refuses to accept the
decision upon the disputes may sue with the  people’s court. Alternatively
concerned parties may directly go to the people’s court for a suit.

    Article 44  Any occurrence of abuse of power, favoritism or negligence
by the environment protection or supervision staff shall be punished by
way of disciplinary sanction or where a crime is constituted the
criminal liabilities shall be assessed.
Chapter VIII  Supplementary Provisions

    Article 45  The environment protection department of the State Council
shall be responsible for interpretation of the present Regulations.

    Article 46  Provinces, autonomous regions and municipalities under the
direct leadership of the Central Government may formulate more
detailed provisions for implementation of the present Regulations in
light of their own circumstances.

    Regulations regarding prevention and cure of noise pollution from
military activities shall be seperately formulated by the military.

    Article 47  The present Regulation shall come into effect as of the
date of December 1, 1989.





INTERIM PROVISIONS GOVERNING NON-SCHEDULED FLIGHTS IN CIVIL AIR TRANSPORT

Category  CIVIL AVIATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-03-02 Effective Date  1989-03-02  


Interim Provisions Governing Non-scheduled Flights in Civil Air Transport



(Adopted at the 31st Executive Meeting of the State Council on January 3,

1989, promulgated by Decree No. 29 of the State Council of the People’s
Republic of China on March 2, 1989 and effective as of the date of
promulgation)

    Article 1  These Provisions are formulated for the purpose of safeguarding
the rights and interests of the State in aviation, ensuring safety in air
transport and promoting the development of civil air transport.

    Article 2  These Provisions shall apply to the non-scheduled flights of
Chinese and foreign aircraft engaged in carrying passengers, baggage, cargoes
and mail within the territorial spheres of the People’s Republic of China and
between the People’s Republic of China and foreign countries.

    Article 3  The term “non-scheduled flights” referred to in these
Provisions denotes civil air transport flight other than scheduled air
services.

    Article 4  The operation of non-scheduled flights shall be subject to the
submission on an application to the Civil Aviation Administration of China
(CAAC) for its approval. The application and approval procedures shall be
formulated by the CAAC.

    Article 5  The operation of non-scheduled flights shall abide by the
transport regulations formulated by the CAAC and may not affect the normal
operations of scheduled flights.

    Article 6  Air crew and aircraft engaged in non-scheduled flights shall
meet the criteria or be up to the technical standards stipulated by the CAAC
and possess and bear a Crew Licence, the Aircraft Registration Certificate,
the Aircraft Airworthiness Certificate and other certificates and documents
as required to be on board in accordance with the relevant provisions.

    Article 7  The operation of non-scheduled flights for commercial
transportation into or out of the territorial spheres of the People’s
Republic of China by a foreign civil air carrier shall be handled in
accordance with the relevant provisions in the air transport agreement entered
into by the Government of the People’s Republic of China and the Government
of the foreign country to which the said carrier belongs.

    Article 8  No foreign civil air carrier may operate non-scheduled flights
for commercial transportation between any two points within the territorial
spheres of the People’s Republic of China.

    Article 9  To remunerated non-scheduled flights for commercial
transportation operated by foreign civil air carrier, the Chinese authorities
shall have the right to levy compensation for the grant of air traffic right.

    Article 10  Chinese civil air carriers shall have the priority to operate
non-scheduled flights originating in the People’s Republic of China and
destined for foreign countries, for carrying passengers, baggage, cargoes and
mail.

    Article 11  The tariffs and the terms and conditions as well as the
measures for the administration for non-scheduled flights in civil air
transport shall be formulated by the CAAC in conjunction with the State
Administration of Commodity Prices.

    Article 12  Unless otherwise specially approved by the CAAC, a foreign
aircraft engaged in non-remunerated non-scheduled flights may only land at
designated point within the territorial spheres of the People’s Republic of
China and may not carry out of the territorial spheres of the People’s
Republic of China any people or cargoes other than those the aircraft has
originally carried on board, nor may it leave within the territorial spheres
of the People’s Republic of China any people and cargoes it has originally
carried on board.

    Article 13  Aircraft engaged in non-scheduled flights for international
transport shall complete such procedures as border inspection, Customs
clearance, quarantine and security examination and pay the fees in accordance
with the relevant provisions.

    Article 14  Foreign aircraft engaged in non-scheduled flights and their
crew members, and the passengers, baggage, cargoes and mail that they carry on
board, whether entering, or leaving, or remaining within the territorial
spheres of the People’s Republic of China, shall abide by the relevant laws,
regulations and rules of the People’s Republic of China and pay various fees
in accordance with relevant provisions.

    Article 15  Operators of foreign aircraft engaged in non-scheduled flights
must cover liability insurance against damage that the aircraft may incur to
the third party on the ground while flying within the territorial spheres of
the People’s Republic of China and they must also cover the statutory
liability insurance if they operate non-scheduled flights for carrying
passengers, baggage, cargoes and mail.

    Article 16  The CAAC shall have the power to impose such penalties upon
those units and individuals that violate these Provisions, as warning, fine,
compulsory suspension of flights or revocation of relevant certificates. If
the violation constitutes a crime, the judicial organs shall investigate the
criminal liability of those responsible.

    Article 17  The CAAC shall be responsible for the interpretation of these
Provisions.

    Article 18  These Provisions shall become effective as of the date of
promulgation.





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.





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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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