1996

PROCEDURE OF THE CONCLUSION OF TREATIES

Law of the People’s Republic of China on the Procedure of the Conclusion of Treaties

     Important Notice:

This English document is coming from “LAWS AND REGULATIONS OF THEPEOPLE’S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED
MATTERS” (1991.7)which is compiled by the Brueau of Legislative Affairs of the StateCouncil of the People’s Republic of
China, and is published by the ChinaLegal System Publishing House.In case of discrepancy, the original version in Chinese shall prevail.

Whole Document LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PROCEDURE OF THECONCLUSION OF TREATIES(Adopted at the 17th
Meeting of the Standing Committee of theSeventh National People’s Congress on December 28, 1990, promulgated byOrder No.
37 of the President of the People’s Republic of China onDecember 28, 1990, and effective as of the same date)Article 1The
present Law is enacted in accordance with the Constitution of thePeople’s Republic of China.Article 2This Law shall be applicable
to bilateral or multilateral treaties andagreements and other instruments of the nature of a treaty or agreementconcluded
between the People’s Republic of China and foreign states.Article 3The State Council, that is, the Central People’s Government,
of thePeople’s Republic of China shall conclude treaties and agreements withforeign states.The Standing Committee of the National
People’s Congress of the People’sRepublic of China shall decide on the ratification and abrogation oftreaties and important
agreements concluded with foreign states.The President of the People’s Republic of China shall, in accordance withdecisions of the
Standing Committee of the National People’s Congress,ratify and abrogate treaties and important agreements concluded withforeign
states.The Ministry of Foreign Affairs of the People’s Republic of China shall,under the leadership of the State Council, administer
the specific affairsconcerning the conclusion of treaties and agreements with foreign states.Article 4The People’s Republic of China
shall conclude treaties and agreements withother states in the name of:(1) the People’s Republic of China;(2) the Government of the
People’s Republic of China;(3) the governmental departments of the People’s Republic of China.Article 5The decision to negotiate
and sign treaties and agreements shall be madeaccording to the following procedures:(1) in the case of a treaty or agreement to
be negotiated and signed inthe name of the People’s Republic of China, the Ministry of ForeignAffairs or the department
concerned under the State Council in conjunctionwith the Ministry of Foreign Affairs shall make a recommendation and drawup a draft
treaty or agreement of the Chinese side and submit it to theState Council for examination and decision;(2) in the case of a treaty
or agreement to be negotiated and signed inthe name of the Government of the People’s Republic of China, the Ministryof Foreign
Affairs or the department concerned under the State Councilshall make a recommendation and draw up a draft treaty or agreement
of theChinese side and, after consultation with the Ministry of Foreign Affairs,submit it to the State Council for examination and
decision. In the caseof an agreement concerning a specific line of business, its Chinese draftshall, with the consent of the State
Council, be examined and decided uponby the department concerned under the State Council or when necessary inconsultation with
the Ministry of Foreign Affairs;(3) agreements to be negotiated and signed in the name of a governmentaldepartment of the People’s
Republic of China concerning matters within thescope of functions and powers of the department concerned shall be decidedupon by
the department itself or after consultation with the Ministry ofForeign Affairs. In the case of an agreement relating to matters
of majorimportance or matters falling within the functions and powers of otherdepartments under the State Council, the department
concerned shall submitit by itself or after consultation with the other departments concernedunder the State Council, to the State
Council for decision. The draftagreement of the Chinese side shall be examined and decided upon by thedepartment concerned
or when necessary in consultation with the Ministryof Foreign Affairs.When major modification in the Chinese draft of a treaty
or agreementalready examined and decided upon by the State Council are necessary as aresult of negotiation, the revised draft
shall be submitted to the StateCouncil for examination and decision.Article 6Representatives for negotiating and signing treaties
or agreements shallbe appointed according to the following procedures:(1) In the case of a treaty or agreement to be concluded
in the name ofthe People’s Republic of China or the Government of the People’s Republicof China, the Ministry of Foreign Affairs
or the department concernedunder the State Council shall submit a report to the State Council for theappointment of a representative.
The full powers of the representativeshall be signed by the Premier of the State Council, but may also besigned by the
Minister of Foreign Affairs.(2) In the case of an agreement to be concluded in the name of agovernmental department of
the People’s Republic of China, arepresentative shall be appointed by the head of the department concerned.The letter
of authorization for the representative shall be signed by thehead of the department. Where the head of a department signs an agreementconcluded
in the name of the governmental department, and where thecontracting parties agree that it is necessary for the head
of thedepartment to produce full powers, the full powers shall be signed by thePremier of the State Council, but may also be signed
by the Minister ofForeign Affairs.The following persons shall dispense with full powers for negotiating andsigning treaties and
agreements:(1) the Premier of the State Council, the Minister of Foreign Affairs;(2) the head of a diplomatic mission of the People’s
Republic of China whonegotiates and signs treaties and agreements concluded between China andthe state to which he is accredited,
unless it is otherwise agreed by thecontracting parties;(3) the head of a governmental department of the People’s Republic
ofChina who negotiates and signs the agreements concluded in the name of hisdepartment, unless it is otherwise agreed by the contracting
parties;(4) the person, dispatched to an international conference or accredited toan international organization by the People’s Republic
of China, who is atthe same time the representative for negotiating treaties or agreements inthat conference or organization, unless
it is otherwise agreed by theconference or otherwise provided for in the constitution of theorganization.Article
7The ratification of treaties and important agreements shall be decidedupon by the Standing Committee of the National People’s
Congress.The treaties and important agreements referred to in the precedingparagraph are as follows:(1) treaties of friendship
and cooperation, treaties of peace and similartreaties of a political nature;(2) treaties and agreements relating to territory
and delimitation ofboundary lines;(3) treaties and agreements relating to judicial assistance andextradition;(4) treaties
and agreements which contain stipulations inconsistent withthe laws of the People’s Republic of China;(5) treaties and agreements
which are subject to ratification as agreed bythe contracting parties; and(6) other treaties and agreements subject to ratification.After
the signing of a treaty or an important agreement, the Ministry ofForeign Affairs or the department concerned under the State
Council inconjunction with the Ministry of Foreign Affairs shall submit it to theState Council for examination and verification;
the State Council shallthen refer it to the Standing Committee of the National People’s Congressfor decision on ratification;
the President of the People’s Republic ofChina shall ratify it in accordance with the decision of the StandingCommittee of
the National People’s Congress.After the ratification of a bilateral treaty or an important bilateralagreement, the Ministry
of Foreign Affairs shall execute the formalitiesfor the exchange of the instruments of ratification with the othercontracting
party. After the ratification of a multilateral treaty or animportant multilateral agreement, the Ministry of Foreign Affairs
shallexecute the formalities for the deposit of the instrument of ratificationwith the depositary state or international organization.
The instrument ofratification shall be signed by the President of the People’s Republic ofChina and countersigned by the Minister
of Foreign Affairs.Article 8After the signing of the agreements and other instruments of the nature ofa treaty which do not fall
under paragraph 2, Article 7 of this Law andwhich are subject to approval as prescribed by the State Council or asagreed by
the contracting parties, the Ministry of Foreign Affairs or thedepartments concerned under the State Council in conjunction
with theMinistry of Foreign Affairs shall submit them to the State Council forapproval. After the approval of agreements and
other instruments of thenature of a treaty, in the case of a bilateral one, the Ministry ofForeign Affairs shall execute
the formalities for the exchange of theinstruments of approval with the other contracting party or for mutualnotification
of the approval by diplomatic notes. In the case of amultilateral one, the Ministry of Foreign Affairs shall execute
theformalities for the deposit of the instrument of approval with thedepositary state or international organization concerned.
The instrumentof approval shall be signed by the Premier of the State Council, but mayalso be signed by the Minister of Foreign
Affairs.Article 9After the signing of the agreements which need no decision on ratificationby the Standing Committee of the National
People’s Congress or approval bythe State Council, the agreements shall be submitted by the departmentsconcerned under the State
Council to the State Council for the record,except those agreements concluded in the name of the governmentaldepartments
of the People’s Republic of China which are to be submitted bythese departments to the Ministry of Foreign Affairs for registration.Article
10If the two contracting parties need to go through different domestic legalprocedures for the entry into force of the same treaty
or agreement, thesaid treaty or agreement shall enter into force after the accomplishmentby the two parties of their respective
legal procedures and the mutualnotification by diplomatic notes.After the signing of the treaties and agreements listed in the
precedingparagraph, the formalities of ratification, approval, entry on the recordor registration shall be executed as the case
requires in accordance withArticles 7, 8 or 9 of this Law. The formalities of notification by noteshall be completed by the Ministry
of Foreign Affairs.Article 11The decision to accede to multilateral treaties or agreements shall bemade by the Standing Committee
of the National People’s Congress or theState Council as the case requires. The procedures for acceding tomultilateral
treaties and agreements shall be as follows:(1) to accede to a multilateral treaty or an important multilateralagreement listed
in Paragraph 2, Article 7 of this Law, the Ministry ofForeign Affairs or the department concerned under the State Council
inconjunction with the Ministry of Foreign Affairs shall make arecommendation after examination and submit it to the
State Council forexamination and verification; the State Council shall then refer it to theStanding Committee of the National
People’s Congress for decision onaccession. The instrument of accession shall be signed by the Minister ofForeign Affairs,
and the specific formalities executed by the Ministry ofForeign Affairs;(2) to accede to a multilateral treaty or agreement
other than thoselisted in Paragraph 2, Article 7 of this Law, the Ministry of ForeignAffairs or the department concerned under
the State Council in conjunctionwith the Ministry of Foreign Affairs shall make a recommendation afterexamination and submit
it to the State Council for decision on accession.The instrument of accession shall be signed by the Minister of ForeignAffairs,
and the specific formalities executed by the Ministry of ForeignAffairs.Article 12The decision to accept a multilateral treaty or
an agreement shall be madeby the State Council.In the case of a multilateral treaty or agreement containing clauses ofacceptance
which is signed by the Chinese representative or does notrequire any signature, the Ministry of Foreign Affairs or the departmentconcerned
under the State Council in conjunction with the Ministry ofForeign Affairs shall make a recommendation after examination and
submitit to the State Council for decision on acceptance. The instrument ofacceptance shall be signed by the Minister of Foreign
Affairs, and thespecific formalities executed by the Ministry of Foreign Affairs.Article 13A bilateral treaty or agreement concluded
by the People’s Republic ofChina with a foreign state shall be done in the Chinese language and theofficial language of the
other contracting party, both texts being equallyauthentic. When necessary, a text in the language of a third state agreedupon by
the two contracting parties may be executed in addition as athird, equally authentic, official text or an unofficial
text forreference. It may be stipulated by agreement of the two contractingparties that the third text shall prevail
in case of divergence ofinterpretation of the treaty or agreement.For agreements on specific lines of business and treaties
and agreementsconcluded with international organizations, a single language fairlycommonly used internationally may also
be used by agreement of the twocontracting parties or in accordance with the provisions of theconstitutions of the
international organizations concerned.Article 14Signed originals of bilateral treaties and agreements concluded in thename of
the People’s Republic of China or the Government of the People’sRepublic of China and copies of multilateral treaties and
agreementscertified as true by the depositary states or international organizationsconcerned shall be deposited with the Ministry
of Foreign Affairs. Signedoriginals of bilateral agreements concluded in the name of thegovernmental departments of
the People’s Republic of China shall bedeposited with these departments.Article 15A treaty or an important agreement of which
the Standing Committee of theNational People’s Congress has decided on ratification or accession shallbe published in the bulletin
of the Standing Committee of the NationalPeople’s Congress. The measures for publishing other treaties andagreements
shall be made by the State Council.Article 16Treaties and agreements concluded by the People’s Republic of China shallbe compiled
by the Ministry of Foreign Affairs into a collection of theTreaties of the People’s Republic of China.Article 17Treaties and agreements
concluded by the People’s Republic of China shallbe registered with the Secretariat of the United Nations by the Ministryof Foreign
Affairs in accordance with the relevant provisions of theUnited Nations Charter. Treaties and agreements concluded by the
People’sRepublic of China that require registration with other internationalorganizations shall be registered by the Ministry
of Foreign Affairs orthe departments concerned under the State Council in accordance with therespective constitutions of the
international organizations.Article 18The procedures for the conclusion of a treaty or an agreement with aninternational organization
by the People’s Republic of China shall followthis Law and the constitution of the relevant international organization.Article 19The
procedures for amendment to, abrogation of and withdrawal fromtreaties and agreements concluded by the People’s Republic
of China shallfollow mutatis mutandis the procedures for the conclusion of the treatiesand agreements in question.Article 20The
State Council may make regulations in accordance with this Law for itsimplementation.Article 21This Law shall enter into force as
of the date of promulgation.

    






INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ASSIGNMENT AND TRANSFER OF THE USE RIGHT OF THE STATE-OWNED LAND IN CITIES AND TOWNS

State Council

Interim Regulations of the People’s Republic of China concerning the Assignment and Transfer of the Use Right of the State-owned Land
in Cities and Towns

No.55 Order of the State Council

May 19,1990

Chapter I General Provisions

Article 1 .

These Regulations are formulated in order to reform the system of using the State-owned land in the cities and towns, rationally
develop, utilize and manage the land, strengthen the land administration and promote the urban construction and economic development.

Article 2 .

The State, in accordance with the principle of separating the ownership right and the use right, , implements the system of assignment
and transfer the use right of the State-owned land in the cities and towns,, but the underground resources, the objects buried underground,
and the municipal public facilities shall be excluded .

The term “State-owned land in the cities and towns as used in preceding paragraph refers to the land owned by the whole people (hereinafter
referred to as the land) within the boundaries of cities, county towns, towns/bases operated under an organizational system and industrial
and mining districts .

Article 3 .

Any company, enterprise, other organization and individual of the People’s Republic of China within or outside the territory may,
unless otherwise provided by law, obtain the land use right and engage in land development, utilization and management in accordance
with the provisions of these Regulations.

Article 4 .

Users of the land who have obtained the land use right in accordance with these Regulations may, within the term of land use, transfer,
lease, or mortgage the land use right or use it for other economic activities, and their lawful rights and interests shall be protected
by the laws of the State.

Article 5 .

Users of the land shall, in their activities to develop, utilize and manage the land, abide by the laws and regulations of the state
and may not jeopardize the interests of the society and the public.

Article 6 .

The land administrative departments under the people’s governments at or above the county level shall conduct supervision and inspection,
according to law, over the assignment, transfer, lease, mortgage and termination of the land use right.

Article 7 .

The registration of the assignment, transfer, lease, mortgage and termination of the use right and the registration of the relevant
above-ground buildings and other attached objects shall be handled by the land administration department and house property administration
departments of the government in accordance with the law and pertinent regulations of the State Council.

THE registration documents shall be made available for public reference.

Chapter II The Assignment of the Land Use Right

Article 8 .

The assignment of the land use right refers to the action that the State as the owner of the land , within the term of a certain
number of years, assigns the land use right to the land users, and the land user pay the assignment fees for the land use right
to the State.

An assignment contract shall be signed for assigning the land use right.

Article 9 .

People’s governments at the municipal and county levels shall be in charge of assignment for the land use right , which shall be effected
in a planned, step-by-step way.

Article 10 .

The land administration departments under the people’s governments at the municipal and county levels shall, in conjunction with the
administrative departments for urban planning and construction and the housing property administration departments, draw up a plan
concerning the size and location, the purposes, the term, and other conditions with respect to the assigning the land use right .
After the plan is approved in accordance with the limits of approval authority stipulated by the State Council the land administration
departments shall be responsible for the implementation. .

Article 11 .

The contract for assigning the land use right shall be signed between the land administration departments under the people’s governments
at the municipal and county levels (hereinafter referred to as “the assigning party~) and the land users in accordance with the principle
of equality, voluntariness and compensation for use.

Article 12 .

The maximum term with respect to the assigned land use right shall be determined respectively in the light of the purposes listed
below:

(1)

70 years for residential purposes;

(2)

50 years for industrial purposes;

(3)

50 years for the purposes of education, science, culture, public health and physical education;

(4)

40 years for commercial, tourist and recreational purposes; and

(5)

50 years for comprehensive utilization or other purposes.

Article 13 .

The assignment of the land use right may be carried out by the following means:

(1)

by reaching an agreement through consultations;

(2)

by invitation to bid; or

(3)

by auction.

(4)

The specific procedures and steps for assigning the land use right by the means stipulated in preceding paragraphs shall be formulated
by the people’s government of relevant province, autonomous region, or municipality directly under the Central Government.

Article 14 .

The land user shall, within 60 days after signing the contract for the assignment of the land use right , pay the total amount of
the assignment fee thereof, failing to pay the total amount exceed the time limit, the assigning party shall have the right to terminate
the contract and may claim compensation for breach of contract.

Article 15 .

The assigning party shall, in compliance with the stipulations of the contract, provide the assigned land use right , failing to provide
the land use right according to contract , the land user shall have the right to terminate the contract and may claim compensation
for breach of contract.

Article 16 .

After paying the total amount of the assignment fee for the land use right , the land user shall, in accordance with the relevant
provisions, go through the registration thereof, obtain the certificate for land use and accordingly get the land use right .

Article 17 .

The land user shall, in conformity with the stipulations of the contract for the assignment of the land use right and the requirements
of city planning, develop, utilize and manage the land.

Should any land user fail to develop and utilize the land in accordance with the period of time specified in the contract and the
conditions therein, the land administration departments under the people’s governments at the municipal and county levels shall make
corrections and, in light of the seriousness of the case, give such penalties as a warning, a fine or, in an extreme case, with drawing
the land use right without compensation.

Article 18 .

If the land user needs to alter the use purposes of the land as stipulated in the contract for assigning the land use right , he
shall obtain the consent of the assigning party and the approval of the land administration department and the urban planning department
and shall, in accordance with the relevant provisions in this Chapter, sign a new contract for assigning the land use right , readjust
amount of the assignment fee thereof, and undertake registration anew.

Chapter III The Transfer of the Land Use Right

Article 19 .

The transfer of the land use right refers to the land user’s action of re-assigning the land use rights , including the sale, exchange,
and donation thereof.

If the land has not been developed and utilized in accordance with the period of time specified in the assignment contract and the
conditions therein, the land use right thereof may not be transferred.

Article 20 .

A transfer contract shall be sighed for the transfer of the land use right .

Article 21 .

With the transfer of the land use right , the rights and obligations specified in the contract for assigning the land use right and
in the registration documents shall be transferred accordingly.

Article 22 .

The land user who has acquired the land use right by means of the transfer thereof shall have a term of use which is the remainder
of the term specified in the contract for assigning the land use right minus the number of the years in which the original land
user has used the land.

Article 23 .

With the transfer of the land use right , the ownership of the above-ground buildings and other attached objects shall be transferred
accordingly.

Article 24 .

The owners or joint owners of the above-ground buildings and other attached objects shall have the land use right within use scope
of the said buildings and objects.

With the transfer of the ownership of the above-ground buildings and other attached objects by the land users, the land use right
within use scope of the said buildings and objects shall be transferred accordingly, but except the transfer of the above-ground
buildings and other attached objects as the chattel. .

Article 25 .

With respect to the transfer of the land use right and the ownership of the above-ground buildings and other attached objects, registration
for the transfer shall be undertaken in accordance with the relevant provisions.

Divided transfer of the land use right and the ownership of the above-ground buildings and other attached objects shall be subject
to the approval of the land administration department and the housing property administration departments under the people’s governments
at the municipal and country levels, and registration for the divided transfer shall be undertaken in accordance with the relevant
provisions.

Article 26 .

When the price for transfer of the land use right is obviously lower than the prevailing market price, the people’s governments
at the municipal and county levels shall have the priority of the purchase right thereof.

When the market price for the transfer of the land use right rises to an unreasonable extent, the people’s governments at the municipal
and county levels may take necessary measures to cope with it.

Article 27 .

If, after the transfer of the land use right , necessity arises for altering the use purposes of the land as stipulated in the contract
for assigning the land use right , it shall be handled in accordance with the provisions in Article 18 of these Regulations.

Chapter IV The Lease of the Land Use Right

Article 28 .

The lease of the land use right refers to the action of the land user as the lessor to lease the land use right together with the
above-ground buildings and other attached objects to the lessee for use who shall in turn pay lease rentals to the lessor.

If the land has not been developed and utilized in accordance with the period of time specified in the assignment contract and the
conditions therein, the land use right may not be leased.

Article 29 .

A lease contract shall be signed for leasing the land use right between the lessor and the lessee.

The lease contract shall not run counter to the laws and regulations of the State and the stipulations of the contract for assigning
the land use right .

Article 30 .

After leasing the land use right , the lessor must continue to perform the contract for assigning the land use right .

Article 31 .

With respect to the lease of the land use right together with the above-ground buildings and other attached objects, the lessor shall
undertake registration in accordance with the relevant provisions.

Chapter V The Mortgage of the Land Use Right

Article 32 .

The land use right may be mortgaged.

Article 33 .

With the mortgage of the land use right , the above-ground buildings and other attached objects thereon shall be mortgaged accordingly.

With the mortgage of above-ground buildings and other attached objects, the land use right within the use scope s shall be mortgaged
accordingly.

Article 34 .

A mortgage contract shall be signed for mortgaging the land use right between the mortgagor and the mortgagee.

The mortgage contract shall not run counter to the laws and regulations of the State and the stipulations of the contract for assigning
the land use right .

Article 35 .

With respect to the mortgage of the land use right together with the above-ground buildings and other attached objects, registration
for the mortgage shall be undertaken in accordance with the relevant provisions.

Article 36 .

If the mortgagor fails to fulfil the liabilities within the prescribed period of time or declares dissolution or bankruptcy within
the term of the mortgage contract, the mortgagee shall have the right to dispose the mortgaged property in accordance with the laws
and regulations of the State and the stipulations of the mortgage contract.

With respect to the land use right and the ownership of the above-ground buildings and other attached objects acquired as a result
of the dispose the mortgaged property, the transfer registration shall be undertaken in accordance with the relevant provisions.

Article 37 .

The mortgagee shall have the priority right of compensation with respect to the receipts resulting from the disposal of the mortgaged
property.

Article 38 .

If the mortgage right is eliminated as a result of the liquidation of liabilities or for other reasons, the procedures shall be undertaken
to cancel the mortgage registration.

Chapter VI The Termination of the Land Use Right

Article 39 .

The land use right shall be terminated for such reasons as the expiration of the term of the land use right as stipulated in the
contract for assigning the land use right , the withdrawal of the right before the expiration, or the loss of the land.

Article 40 .

Upon expiration of the term of the land use right, the land use right and the ownership of the above-ground buildings and other attached
objects thereon shall be acquired by the State without compensation. The land user shall surrender the certificate for land use and
undertake procedures to nullify the registration.

Article 41 .

Upon expiration of the term of the land use right, the land user may apply for its renewal of term. Where such a renewal is necessary,
a new contract shall be signed in accordance with the provisions in Chapter II of these Regulations and the land user shall pay the
assignment fee for the land use right and undertake the formalities of registration.

Article 42 .

The State shall not, before the expiration of the term, withdraw the land use right which the land user acquired in accordance with
the law. Under special circumstances, the State may, based on the requirements of social public interests, withdraw the land use
right before the expiration of the term according to the relevant legal procedures and shall based on the number of years in which
the land user has used the land and the actual state of affairs with respect to the development and utilization of the land, offer
corresponding compensation.

Chapter VII The Allocated Land Use Right

Article 43 .

The allocated land use right refers to the land use right which the land user acquires in accordance with the law, by various means,
and without compensation.

The land user referred to in the preceding paragraph shall pay the land use tax in accordance with the provisions of the Interim
Regulations of the People’s Republic of China Concerning the Land Use Tax in the Cities and Towns.

Article 44 .

The allocated land use right may not be transferred, leased, or mortgaged, with the exception of cases as specified in Article 45
of these Regulations.

Article 45 .

On condition that the following requirements are satisfied, the allocated land use right and the ownership of the above-ground buildings
and other attached objects may, subject to the approval of the land administration departments and the housing property administration
departments under the people’s governments at the municipal and county levels, be transferred, leased or mortgaged:

(1)

The land users are companies, enterprises, or other economic organizations, or individuals;

(2)

A certificate for the use of state-owned land had been obtained;

(3)

Possessing legitimate certificates of property rights to the above-ground buildings and other attached objects; and

(4)

A contract for assigning the land use right is signed in accordance with the provisions in Chapter II of these Regulations and the
land user makes up for the payment of the assignment fee to the local municipal or county people’s government or uses the proceeds
resulting from the transfer, lease or mortgage to pay the assignment fee.

The transfer, lease or mortgage of the allocated land use right referred to in preceding paragraphs shall be handled respectively
in accordance with the provisions in Chapters III, IV and V of these Regulations.

Article 46 .

Any units or individuals that transfer, lease or mortgage the allocated land use right without authorization shall have their illegal
incomes thus secured confiscated by the land administration departments under the people’s governments at the municipal and county
levels and shall be fined in accordance with the seriousness of the case.

Article 47 .

If the land user who has acquired the allocated land use right without compensation stops the use thereof as a result of moving to
another site, dissolution, disbandment, or bankruptcy or for other reasons, the municipal or county people’s government shall withdraw
the allocated land use right without compensation and may assign it in accordance with the relevant provisions of these Regulations.

The municipal or county people’s government may, based on the needs of urban construction and development and the requirements of
urban planning, withdraw the allocated land use right without compensation and may assign it in accordance with the relevant provisions
of these Regulations.

When the allocated land use right is withdrawn without compensation, the municipal or county people’s government shall, in the light
of the actual state of affairs, give proper compensation for the above-ground buildings and other attached objects thereon.

Chapter VIII Supplementary Provisions

Article 48 .

The land use right may be inherited if it is acquired by individuals in accordance with the provisions of these Regulations.

Article 49 .

The land user shall pay tax in accordance with the provisions of the taxation laws and regulations of the State.

Article 50 .

Fees collected by assigning the land use right in accordance with these Regulations shall be included in the fiscal budget and managed
as a special fund, which shall be used mainly for urban construction and land development. The specific measures for the use and
management of the fund shall be separately prescribed by the Ministry of Finance.

Article 51 .

The people’s governments of various provinces, autonomous regions and municipalities directly under the Central Government shall,
in accordance with the Provisions of these Regulations and with the actual state of affairs in their respective localities, select
some cities or towns where the conditions are relatively ripe as their pilot testing grounds.

Article 52 .

With respect to foreign investors engaging in developing and managing tracts of land, the administration of the land use right shall
be effected in accordance with the relevant provisions of the State Council.

Article 53 .

The State Administration for Land Uses shall be responsible for the interpretation of these Regulations; the measures for the implementation
thereof shall be formulated by the people’s governments of the provinces, autonomous regions and municipalities directly under the
Central Government.

Article 54 .

These Regulations shall be implemented as of the date of promulgation.



 
State Council
1990-05-19

 







PROTECTION OF MILITARY INSTALLATIONS

Law of the People’s Republic of China on the Protection of Military Installations

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II DESIGNATION OF THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

CHAPTER III PROTECTION OF THE MILITARY RESTRICTED ZONES

CHAPTER IV PROTECTION OF THE MILITARY ADMINISTRATIVE ZONES

CHAPTER V PROTECTION OF MILITARY INSTALLATIONS NOT INCLUDED IN THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

CHAPTER VI ADMINISTRATIVE DUTY

CHAPTER VII LEGAL RESPONSIBILITY CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 1 This Law is formulated in accordance with the Constitution of the People’s Republic of China for the purpose of protecting the safety
of military installations, ensuring the effective utilization of military installations and normal performance of military activities,
promoting modernization of national defence, strengthening national defence and resisting aggression.

   Article 2 The term “military installations” referred to in this Law denotes the following buildings, sites and equipment used by the State
directly for military purposes:

(1) Command organs, ground and underground command structures and operations structures;

(2) Military airfields, harbours and docks;

(3) Barracks, training grounds and testing grounds;

(4) Military cave storehouses and warehouses;

(5) Military communication stations, reconnaissance stations, navigation stations, observation posts, survey markers, navigation markers
and navigation aid markers;

(6) Special military highways and railways, military communication lines and transmission lines, military oil and water pipelines;
and

(7) Other military installations as prescribed by the State Council and the Central Military Commission.

   Article 3 People’s governments and military organs at all levels shall, in the interests of national security, jointly protect military installations
and safeguard the interests of national defence.

The Headquarters of the General Staff of the People’s Liberation Army shall, under the leadership of the State Council and the Central
Military Commission, be in charge of the protection of military installations throughout the country. The headquarters of military
area commands shall be responsible for the work of protecting the army, navy and air force military installations in their respective
areas.

In places where there are military installations, the military organs concerned and the people’s governments at or above the county
level shall cooperate with each other in coordinating, supervising and inspecting the work of protecting military installations.

   Article 4 All organizations and citizens of the People’s Republic of China shall have the duty to protect military installations.

The damaging or endangering of military installations by any organization or individual shall be prohibited.

Any organization or individual shall have the right to report on, and make charges against, any act that damages or endangers military
installations.

   Article 5 The State shall implement a policy of giving protection to military installations according to their categories and with emphasis
on key projects.

   Article 6 Where military installations are to be converted to civilian use, or where military airfields, harbours and docks are to be jointly
used for military and civilian purposes, any such change shall be subject to the approval of the State Council and the Central Military
Commission.

CHAPTER II DESIGNATION OF THE MILITARY RESTRICTED ZONES AND THE MILITARY

   Article 7 The State shall designate military restricted zones and military administrative zones respectively in accordance with the nature,
the function, the security requirements and the requirements for effective utilization of military installations. Measures shall
also be taken for the protection of the military installations not included in the military restricted zones and the military administrative
zones.

   Article 8 The military restricted zones and the military administrative zones shall be determined by the State Council and the Central Military
Commission, or by military area commands in accordance with the stipulations of the State Council and the Central Military Commission.

   Article 9 The limits of the land and water military restricted zones and military administrative zones shall be jointly designated by military
area commands and people’s governments of provinces, autonomous regions and municipalities directly under the Central Government,
or by military area commands and people’s governments of provinces, autonomous regions, municipalities directly under the Central
Government and the relevant departments of the State Council. The limits of the military restricted airspace and the land and water
military restricted zones of utmost importance shall be designated by the State Council and the Central Military Commission.

The military restricted zones and the military administrative zones jointly designated by the armed forces and local people’s governments
prior to the implementation of this Law need not be redesignated if they are in conformity with the relevant stipulations of the
State Council and the Central Military Commission.

   Article 10 Any cancellation or change of the military restricted zones and the military administrative zones shall be handled according to the
procedures prescribed in Article 8 of this Law.

Any adjustment of the limits of the military restricted zones and the military administrative zones shall be handled according to
the procedures prescribed in paragraph 1, Article 9 of this Law.

   Article 11 The designation and adjustment of the limits of the military restricted zones and the military administrative zones shall, on the
premise of ensuring the security and effective utilization of military installations, take account of economic construction, protection
of natural environment and the production and livelihood of the local population.

   Article 12 Where it is necessary to requisition land, woodland, grassland, water surface and beaches for the designation or expansion of the
limits of the military restricted zones and the military administrative zones, it shall be handled in accordance with the provisions
of relevant laws and regulations.

   Article 13 When drawing up programmes for economic and social development, the local people’s governments at or above the county level shall
take into account the requirements for the protection of military installations and solicit opinions from the military organs concerned.
When planning construction projects or developing new tourist attractions, the same shall see that they are not located in the vicinity
of military installations. If it is not possible to do so and it is necessary to dismantle military installations or to convert them
to civilian use, the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
shall consult with military authorities at the military area command level and submit a report to the State Council and the Central
Military Commission for approval.

CHAPTER III PROTECTION OF THE MILITARY RESTRICTED ZONES

   Article 14 The units in charge of the military restricted zones shall, on the basis of specific conditions and in accordance with the designated
limits of the zones, put up enclosing walls and barbed wire fences for the land military restricted zones and set up barriers or
boundary markers for the military restricted waters.

   Article 15 Entry into the land and water military restricted zones by personnel, vehicles and vessels other than those belonging to the units
in charge of the zones shall be prohibited. No photographing, video- taping, recording, reconnoitering, surveying, drawing or describing
of the restricted zones shall be allowed, except with the approval of the military organs at or above the military area command level.

Entry into the military restricted airspace by airborne devices shall be prohibitied, except as otherwise authorized by relevant state
provisions.

Use of materials from photographing, video-taping, recording, reconnoitering, surveying, drawing and describing of the military restricted
zones shall be subject to examination and approval by the military authorities at or above the military area command level.

   Article 16 In accordance with the requirements for protecting military installations in a restricted zone, a security control area, when necessary,
may be jointly designated in a specific area surrounding the restricted zone at the time of the joint designation of the zone itself
by military area commands and people’s governments of provinces, autonomous regions and municipalities directly under the Central
Government, or by military area commands and people’s governments of provinces, autonomous regions, municipalities directly under
the Central Government and the relevant departments of the State Council, and security warning markers may be set up at the perimeter
of the security control area. The sites for setting up security warning markers shall be determined by the unit in charge of the
military restricted zone and the local people’s government at or above the county level.

   Article 17 In the security control areas surrounding the military restricted zones, the local people may carry on their normal life and productive
activities, but may not engage in demolishing, shooting and other activities that endanger the safety and effective utilization of
military installations.

CHAPTER IV PROTECTION OF THE MILITARY ADMINISTRATIVE ZONES

   Article 18 The units in charge of the military administrative zones shall, in accordance with the designated limits of the zones, put up enclosing
walls, barbed wire fences or boundary markers for the military administrative zones.

   Article 19 No personnel, vehicles and vessels other than those belonging to the unit in charge of the military administrative zone may enter
the military administrative zone without permission of the unit in charge.

   Article 20 Measures for the administration of the airfields, harbours and docks that are designated as military administrative zones and jointly
used for military and civilian purposes shall be formulated by the State Council and the Central Military Commission.

CHAPTER V PROTECTION OF MILITARY INSTALLATIONS NOT INCLUDED IN THE MILITARY RESTRICTED ZONES AND THE MILITARY ADMINISTRATIVE ZONES

   Article 21 The units in charge of military installations shall adopt measures for the protection of the military installations not included
in the military restricted zones and the military administrative zones. The administrative units of the armed forces at or above
the regimental level may entrust local people’s governments with the protection of the military installations.

   Article 22 Stone-quarrying, earth-gathering and demolishing carried out within a certain distance of the military installations not included
in the military restricted zones and the military administrative zones may not endanger the safety and effective utilization of the
military installations.

   Article 23 The units in charge of military installations and the local people’s governments at or above the county level shall formulate specific
measures for the protection of the military installations in the military restricted zones and the military administrative zones
as well as the installations not included in the military restricted zones and the military administrative zones. Such specific measures
may be publicly announced for enforcement.

   Article 24 Military organs at all levels shall strictly perform their functions and duties to protect military installations, educate the armymen
to take good care of military installations, guard secrets about military installations, formulate rules and regulations for the
protection of military installations, supervise and inspect the protection work of military installations and settle any problems
arising therefrom.

   Article 25 The authorities in charge of military installations shall strictly implement the relevant rules and regulations for the protection
of military installations, set up files on military installations and carry out inspections and ensure the maintenance of military
installations.

   Article 26 The units in charge of the military restricted zones and the military administrative zones shall, in accordance with the provisions
of relevant laws and regulations, protect the natural resources and cultural relics in the military restricted zones and the military
administrative zones.

   Article 27 The units in charge of military installations shall, when necessary, provide the local people’s governments at or above the county
level with the data on the location of the military underground and underwater cables and pipelines. The local people’s governments
shall protect the military underground and underwater cables and pipelines when undertaking construction.

   Article 28 People’s governments at all levels shall strengthen education in national defence among the citizens, heighten their sense of national
defence and educate them to protect military installations, guard secrets about military installations and stop any acts that damage
or endanger military installations.

   Article 29 Where it is necessary for the public security organs to assist in the maintenance of security and administrative order in the military
restricted zones and the military administrative zones, public security organizations may be set up by the decision of the State
Council and the Central Military Commission or with approval by the public security departments of provinces, autonomous regions
and municipalities directly under the Central Government following application submitted by the relevant military organs.

   Article 30 The personnel on duty of the unit in charge of military installations shall stop any person who commits any of the following acts
in violation of the provisions of this Law:

(1) Illegally entering the military restricted zone;

(2) Illegally photographing, video-taping, recording, reconnoitering, surveying, drawing or describing within the military restricted
zone or the security control area surrounding the restricted zone;

(3) Engaging in activities that damage or endanger military installations.

For persons who commit any act listed in the preceding paragraph and refuse to be stopped, the personnel on duty of the unit in charge
of military installations may, in accordance with relevant regulations of the State, use necessary compulsory means to stop them,
or, in emergency cases where the security of military installations or the lives of the personnel on duty are endangered, resort
to arms.

   Article 31 Any person who commits any of the following acts shall be investigated for criminal responsibility in accordance with the relevant
provisions of the Criminal Law:

(1) Damaging military installations;

(2) Stealing, seizing or robbing equipment, goods or materials of military installations;

(3) Divulging the secrets of military installations, or stealing, spying on, buying or illegally providing secrets on military installations
for agencies, organizations or individuals abroad.

   Article 32 Any person who commits any of the following acts shall be punished in the light of the stipulations of Article 19 of the Regulations
on Administrative Penalties for Public Security:

(1) Illegally entering the military restricted zone and refusing to be stopped;

(2) Engaging in activities that endanger the security and effective utilization of military installations in the security control
area surrounding the military restricted zone or within a certain distance of the military installations not included in the military
restricted zone or the military administrative zone, and refusing to be stopped;

(3) Destroying the enclosing walls, barbed wire fences or boundary markers of the military restricted zone or the military administrative
zone.

   Article 33 In case of disturbance of the administrative order in the military restricted zones and the military administrative zones, the principal
culprits and persons held directly responsible shall, when the case is serious, be investigated for criminal responsibility in the
light of the stipulations of Article 158 of the Criminal Law, or when the case is not so serious as to be considered as a penal offence,
be punished in the light of the stipulations of Article 19 of the Regulations on Administrative Penalties for Public Security.

   Article 34 Persons who engage in illegal photographing, video-taping, recording, reconnoitering, surveying, drawing or describing in the military
restricted zones and refuse to be stopped shall either be punished in the light of the stipulations of Article 19 of the Regulations
on Administrative Penalties for Public Security or have their equipment and instrument confiscated. When the case is serious, they
shall be investigated for criminal responsibility in the light of the stipulations of Article 158 of the Criminal Law.

   Article 35 Servicemen and permanent workers and staff of the armed forces who commit any of the following acts shall be investigated for criminal
responsibility in accordance with the relevant stipulations of the Interim Regulations on Punishment for Offences in Violation of
Duties by Military Personnel; if the case is not so serious as to be considered a penal offence, they shall be subjected to military
disciplinary sanctions:

(1) Damaging military installations;

(2) Stealing the equipment, goods and materials of military installations;

(3) Divulging the secrets of military installations;

(4) Leaving post without permission or committing dereliction that causes damage to military installations or other consequences.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

   Article 36 Measures for implementation shall be formulated in accordance with this Law by the State Council and the Central Military Commission.

   Article 37 This law shall go into effect on August 1, 1990.

    






CITY PLANNING LAW

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, promulgated
by order No.23 of the President of the People’s Republic of China on December 26, 1989, and effective as of April 1, 1990)

CONTENTS

CHAPTER 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 hierachical 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 hierachical 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.

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, promulgated
by order No.23 of the President of the People’s Republic of China on December 26, 1989, and effective as of April 1, 1990)

CONTENTS

CHAPTER 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 hierachical 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 hierachical urb

ORGANIC LAW OF THE URBAN RESIDENTS COMMITTEES

Organic Law of the Urban Residents Committees of the PRC

    

   Article 1. Pursuant to the Constitution, this Law is formulated with a view to improving the urban residents committees as an institution,
enabling urban residents to administer their own affairs in accordance with the law, promoting socialist democracy at the grassroots
level in the cities, and furthering socialist material development and the building of an advanced socialist culture and ideology
in urban areas.

   Article 2. An urban residents committee shall be a mass organization for self government at the grassroots level, in which the residents manage
their own affairs, educate themselves, and serve their own needs.

The people’s government of a city not divided into districts or of a municipal district or an agency of such a people’s government
shall provide guidance, support and help for the residents committees in their work. The residents committees shall, on their part,
assist the above people’s government or agency in its work.

   Article 3. The tasks of a residents committee shall include:

(1) publicizing the Constitution, the laws, the regulations and the state policies, safeguarding the lawful rights and interests of
the residents, educating the residents for the fulfilment of their statutory obligations and for the protection of public property,
and conducting various forms of activities for the development of an advanced socialist culture and ideology;

(2) handling the public affairs and public welfare services of the residents in the local residential area;

(3) mediating disputes among the residents;

(4) assisting in the maintenance of public security;

(5) assisting the local people’s government or its agency in its work related to the interests of the residents, such as public health,
family planning, special care for disabled servicemen and for family members of revolutionary martyrs and servicemen, social relief,
and juvenile education; and

(6) conveying the residents’ opinions and demands and making suggestions to the local people’s government or its agency.

   Article 4. A residents committee shall develop community service activities for the convenience and benefit of the residents and may also run
relevant services.

A residents committee shall manage its own property; no department or unit may infringe upon its right of ownership of property.

   Article 5. In an area where people from more than one nationality live, the residents committee shall educate the residents for mutual assistance
and mutual respect to enhance unity between different nationalities.

   Article 6. A residents committee shall generally be established for an area inhabited by 100-700 households on the basis of the distribution
of residents and on the principle of facilitating their self government.

The establishment or dissolution of a residents committee or a readjustment in the area covered by it shall be decided by the people’s
government of a city not divided into districts or of a municipal district.

   Article 7. A residents committee shall be composed of 5-9 members, including the chairman, the vice-chairman (vice-chairmen) and the members.
In an area where people from more than one nationality live, the residents committee shall include a member or members from the
nationality or nationalities with a smaller population.

   Article 8. The chairman, vice-chairman (vice-chairmen) and members of a residents committee shall be elected by all the residents of a residential
area who have the right to elect or by the representatives from all the households; on the basis of the opinions of the residents,
they may also be elected by the elected representatives of residents groups numbering 2-3 from each. The term of office of the residents
committee shall be three years, and its members may continue to hold office when reelected.

Any resident of an residential area who has reached the age of 18 shall have the right to elect and stand for election, regardless
of his ethnic status, race, sex, occupation, family background, religious belief, education, property status and length of residence,
with the exception of persons who have been deprived of political rights in accordance with the law.

   Article 9. The residents assembly shall be composed of residents at or above the age of 18.

The residents assembly may be attended by all the residents at or above the age of 18 or by a representative or representatives of
each household; it may also be attended by the elected representatives of residents groups numbering 2-3 from each.

The residents assembly shall be held only when it is attended by over half of the total number of the residents at or above the age
of 18, or of the representatives of the households, or of the representatives elected by the residents groups. Decisions of the
residents assembly shall be adopted by a simple majority of all the people present.

   Article 10. The residents committee shall be responsible to the residents assembly and report on its work to the latter.

The residents assembly shall be convened and presided over by the residents committee. It shall be convened when proposed by over
one-fifth of the residents at or above the age of 18, by over one-fifth of the number of households, or by over one-third of the
number of residents groups. When important matters involving the interests of all the residents arise, the residents committee must
refer them to the residents assembly for decision through discussion.

The residents assembly shall have the power to recall members of the residents committee and hold a by-election.

   Article 11. In making decisions, a residents committee shall apply the principle whereby the minority is subordinate to the majority.

In its work a residents committee shall adopt a democratic approach and shall not resort to coercion or commandism.

   Article 12. Members of a residents committee shall observe the Constitution, the laws, the regulations and the state policies, be fair in handling
matters and serve the residents warmheartedly.

   Article 13. A residents committee shall, when necessary, establish sub-committees for people’s mediation, public security, public health and
other matters. Members of the residents committee may concurrently be members of the sub-committees. A residents committee with
a smaller population in its area may dispense with the sub-committees; instead, members of the residents committee shall have a division
of responsibilities for various types of work.

   Article 14. The residents committee may set up residents groups, the heads of which shall be elected by these groups.

   Article 15. Joint pledges of the residents shall be drawn up by the residents assembly through discussion, reported to the people’s government
of a city not divided into districts or of a municipal district or to an agency of either of them for the record, and implemented
under the supervision of the residents committee. The residents shall observe the decisions of the residents assembly and the joint
pledges of the residents.

The joint pledges of the residents shall not contravene the Constitution, the laws, the regulations and the state policies.

   Article 16. The funds needed by a residents committee for managing public welfare services in the residential area, upon decision of the residents
assembly through discussion, may be raised from the residents on a voluntary basis, and may also be raised from beneficiary units
in the residential area, subject to approval by such units; the accounts of revenues and expenditures shall be made public without
delay for supervision by the residents.

   Article 17. The funds needed for the work of a residents committee and their sources, and the scope, standards and sources of the financial
subsidies for members of the residents committee shall be specified by the people’s government of a city not divided into districts
or of a municipal district, or by the people’s government at a higher level, and the money shall be provided by it. With the approval
of the residents assembly, appropriate subsidies may be granted by using some of the residents committee’s financial revenues.

The office premises for a residents committee shall be made available by the local people’s government through overall planning.

   Article 18. Persons who have been deprived of political rights in accordance with the law shall be included in residents groups. The residents
committee shall exercise supervision over them and give them ideological education.

   Article 19. State organs, public organizations, units of the armed forces, enterprises and institutions shall not join the organizations of
the residents committees in their localities, but they shall support the work of these residents committees. When the residents committees
in their localities discuss problems related to them and their presence becomes necessary, these units shall send representatives
to the meetings. In the meantime, these units shall abide by the relevant decisions of the residents committees and the joint pledges
of the residents.

The staff and workers of the units specified in the preceding paragraph and their family members, and servicemen and dependents living
with them shall join the residents committees in their residential areas; in areas where such families live in compact communities,
dependents committees may be established separately to assume the responsibilities of the residents committees and conduct their
work under the guidance of the people’s governments of cities not divided into districts or of municipal districts, their agencies
or the units they belong to. The funds needed for the work of the dependents committees, the financial subsidies for their members
and their office premises shall be provided by the units they belong to.

   Article 20. If a relevant department under the people’s government of a municipality or a municipal district, in its work, needs the cooperation
of a residents committee or one of its sub-committees, it shall seek the approval of the people’s government of the municipality
or of the municipal district or an agency of either of them, which shall make unified arrangements. The relevant departments under
the people’s government of a municipality or a municipal district may give professional guidance to the relevant sub-committees of
the residents committees.

   Article 21. This Law shall apply to the residents committees established in the localities under the people’s governments of townships, nationality
townships or towns.

   Article 22. Measures for the implementation of this Law shall be formulated, in accordance with this Law, by the standing committees of the
people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government.

   Article 23. This Law shall enter into force on January 1, 1990. The Organic Regulations of the Urban Residents Committees, adopted by the Standing
Committee of the National People’s Congress on December 31, 1954, shall be abrogated as of the same date.

    






MEASURES FOR THE ADMINISTRATION OF THE COLLECTION VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-12-18 Effective Date  1991-01-01  


Measures for the Administration of the Collection Verification and Writing-off of Export Proceeds in Foreign Exchange



(Approved by the State Council on December 9, 1990, and promulgated

jointly by the People’s Bank of China, the State Administration of Foreign
Exchange Control, the Ministry of Foreign Economic Relations and Trade, the
General Customs Administration, and the Bank of China on December 18, 1990)

    Article 1  These Measures arc formulated in order to strengthen the
administration of the collecting of export proceeds in foreign exchange in
accordance with the provision in Interim Regulations on Foreign Exchange
Control of the People’s Republic of China and with the requirements of the
State Council concerning the strengthening and perfecting of the system of
the collecting, verifying and writing-off of export proceeds in foreign
exchange.

    Article 2  Definitions

    (1) “Departments for foreign exchange control” refers to the State
Administration of Foreign Exchange Control and its branch offices;

    (2) “Trustee banks” refers to those banks (including foreign-capital
financial institutions set up within the territory of China, and
Chinese-foreign equity joint financial institutions) or non-banking financial
institutions which are approved by the State Administration of Foreign
Exchange Control to have the right to accept the entrustment of export
units for tendering documents to and claiming reimbursements from foreign
firms abroad.

    (3) “Paying banks” refers to those banks (including foreign-capital
financial institutions established within the territory of China, and
Chinese-foreign equity joint financial institutions), or those non-banking
financial institutions which are approved by the State Administration of
Foreign Exchange Control to have the right to accept the entrustment of
export units for tendering documents to and claiming reimbursements from
foreign firms abroad, and which can deliver payments for goods to exporters
in either RMB yuan or foreign exchange;

    (4) “Exporters” refers to those companies which have been approved by
the Ministry of Foreign Economic Relations and Trade or by its authorized
units to have the right to handle export business, and also to those
enterprises as well as enterprises with foreign investment which have the
right to handle foreign trade.

    (5) “Instrument for the collecting, verifying and writing-off of export
proceeds in foreign exchange” (also referred to as “verifying and writing-off
instrument” for short) refers to vouchers with serial numbers, printed and
issued by the State Administration of Foreign Exchange Control, filled in by
exporters, trustee banks and paying banks, accepted by the Customs as
documents for clearance of goods, and used by departments for foreign
exchange control for verifying and writing-off export proceeds in foreign
exchange; and the said instrument has counterfoil attached to it;

    (6) “The deadline for the collecting” refers to the deadlines, as stipulated in Article 9 of these Measures,
for the settlement or the
collection of export proceeds in foreign exchange;

    (7) “The overdue uncollected foreign exchange” refers to the non-settled
or uncollected export proceeds in foreign exchange, after the deadline for
the collection.

    Article 3  These Measures shall apply to all cases concerning the
collection of foreign exchange under the heading of export trade done in all
forms.

    Article 4  Exporters shall apply to the local department for foreign
exchange control for the verifying and writing-off instrument, which is
affixed with a stamp – with the inscription “COLLECTING OF FOREIGN EXCHANGE
UNDER SUPERVISION” – by the department for foreign exchange control. When
applying to the Customs for clearance of goods, an exporter must present to
the Customs the relevant verifying and writing-off instrument, and go through
the procedures for declaration at the Customs with a declaration form marked
with the serial number of the relevant verifying and writing-off instrument;
otherwise, the Customs shall not accept the application for Customs clearance.
After the completion of the procedures for Customs clearance of goods, the
Customs shall affix the stamp – with the inscription “CLEARED” – to the
verifying and writing-off instrument and to the declaration form marked with
the serial number of the said verifying and writing-off instrument.

    Article 5  In case that goods cannot be exported for one reason or another
after the exporter concerned has filled in the verifying and writing-off
instrument, the said exporter shall go through the procedures for the
cancellation of the verifying and writing-off instrument at the department for
foreign exchange control.

    Article 6  After going through the procedures for Customs declaration of
goods, the exporter concerned must, in good time, submit the relevant
declaration forms, the duplicates of drafts for remittance, invoices and the
counterfoils of verifying and writing-off instruments to the local department
for foreign exchange control for the verifying and writing-off of export
proceeds.

    Article 7  When an exporter tenders documents to a trustee bank, the
trustee bank must, on the strength of the verifying and writing-off instrument
affixed with the “CLEARED” stamp, accept the relevant export documents.
The trustee bank shall not be permitted to accept those export documents,
to which no verifying and writing-off instrument is attached. An exporter,
which handles export business either on its own or per procurationem, must
use its own verifying and writing-off instrument when applying to the Customs
for clearance of goods. A unit undertaking declaration at the Customs per
procurationem must return, in good time, the verifying and writing-off
instrument and the relevant Customs declaration forms to the consignor as soon
as it has gone through the Customs declaration procedures for the exporter.

    Article 8  An exporter, after using up the verifying and writing-off
instruments it has, may apply to the local department of foreign exchange
control for obtaining new verifying and writing-off instruments.

    Article 9  All the export proceeds in foreign exchange of an exporter
must be collected or settled, before the following deadlines for collection:

    (1) With respect to payments for goods through spot letter of credit or
through spot collection, it is stipulated that export proceeds in foreign
exchange must be settled or collected, within 20 days for region of Hong Kong
and Macao and other offshore areas, and 30 days for the areas beyond the
oceans, beginning from the day the relevant export documents are mailed.

    (2) With respect to payments for goods through forward letter of credit
or through forward collection, it is stipulated that export proceeds in foreign exchange must be settled or collected, within 30 days
for region of
Hong Kong and Macao and other offshore areas, and 40 days for the areas beyond
the oceans, beginning from the day specified in the drafts of remittance for
payment.

    (3) With respect to payments for goods through consignment sales, the
exporter must indicate the deadline for the collection on the counterfoil
of the verifying and writing-off instrument, and the deadline shall not exceed
the time limit of 360 days beginning from the day when the procedures for
Customs declaration are completed.

    (4) With respect to payments for goods through the sending of documents
by the exporter itself – an operation not included in the scope of consignment
sales (This refers to the procedures of tendering documents and collecting
foreign exchange without the assistance of a bank), the exporter must settle
or collect export proceeds in foreign exchange within 50 working days beginning
from the day when the procedures for Customs declaration are completed.

    Article 10  An exporter, no matter what forms of export proceeds
collection it may adopt, must, within 30 working days immediately after the
deadline for the collection, go through the procedures at the local department
of foreign exchange control for the collecting, verifying and writing-off
of export proceeds in foreign exchange, on the strength of the verifying and
writing-off instrument signed by the paying bank, the foreign exchange
settlement voucher or the collection advice, as well as other relevant
certifying documents.

    Article 11  In case that export proceeds have not been collected within
the prescribed time limit, the exporter must promptly submit a written report
to the department of foreign exchange control, giving an account of the case,
and it is up to the department for foreign exchange control to handle the
case at its discretion.

    Article 12  The trustee bank and the paying bank shall strengthen their
supervision over the overdue export proceeds of exporter, and shall also, in
good time, press foreign banks for payment. The trustee bank and the paying
bank must, within the first ten days of each quarter, submit a report to the
local department for foreign exchange control concerning the uncollected
overdue export proceeds.

    Article 13  With respect to those who have violated the provisions of
these Measures, the department for foreign exchange control has the power to
impose on the violators such penalties as an administrative warning,
circulation of a notice of criticism, a fine, or a temporary suspension of
the use of a foreign exchange account. In case that the violators concerned
refuse to comply with the aforesaid penalty decision, the case may be handled
in accordance with Implementing Rules on Punishment of Violation of Foreign
Exchange Control adopted by the State Council on March 25, 1985 and
promulgated by the State Administration of Foreign Exchange Control on April
5, 1985.

    Article 14  The Measures for the supervision and control of the collection
of export proceeds in foreign exchange formulated by the various localities
and departments prior to the promulgation of these Measures shall cease to
be effective.

    Article 15  The right to interpret these Measures resides in the State
Administration of Foreign Exchange Control; and the relevant rules for
implementation shall be formulated by the State Administration of Foreign
Exchange Control in conjunction with other departments concerned.

    Article 16  These Measures shall go into effect as of January 1, 1991.






INTERIM REGULATIONS CONCERNING THE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNED LAND IN THE URBAN AREAS

Category  LAND ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-05-19 Effective Date  1990-05-19  


Interim Regulations of the People’s Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-owned
Land in the Urban Areas

Chapter I  General Provisions
Chapter II  The Assignment of the Right to the Use of the Land
Chapter III  The Transfer of the Right to the Use of the Land
Chapter IV  The Lease of the Right of the Use of the Land
Chapter V  The Mortgage of the Right to the Use of the Land
Chapter VI  The Termination of the Right to the Use of the Land
Chapter VII  The Allocated Right to the Use of the Land
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 55 of the State Council of the People’s

Republic of China on May 19, 1990 and effective as of the date of
promulgation)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in order to reform the system
of using the State-owned land in the urban areas, rationally develop, utilize
and manage the land, strengthen land administration and promote urban
construction and economic development.

    Article 2  The State, in accordance with the principle of the ownership
being separated from the right to the use of the land, implements the system
whereby the right to the use of the State-owned land in the urban areas may be
assigned and transferred, with the exclusion of the underground resources, the
objects buried underground, and the public works.

    The term “State-owned land in the urban areas” as used in the preceding
paragraph refers to the land owned by the whole people (hereinafter referred
to as “the land”) within the limits of cities, county sites, administrative
towns and industrial and mining areas.

    Article 3  Any company, enterprise, other organization and individual
within or outside the People’s Republic of China may, unless otherwise
provided by law, obtain the right to the use of the land and engage in land
development, utilization and management in accordance with the provisions of
these Regulations.

    Article 4  Users of the land who have obtained the right to the use of the
land in accordance with these Regulations may, within the term of land use,
transfer, lease, or mortgage the right to the use of the land or use it for
other economic activities, and their lawful rights and interests shall be
protected by the laws of the State.

    Article 5  Users of the land shall, in their activities to develop,
utilize and manage the land, abide by the laws and regulations of the State
and may not jeopardize the interests of the society and the public.

    Article 6  The land administrative departments under the people’s
governments at or above the county level shall conduct supervision and
inspection, according to law, over the assignment, transfer, lease, mortgage
and termination of the right to the use of the land.

    Article 7  The registration of the assignment, transfer, lease, mortgage
and termination of the right to the use of the land and the registration of
the above-ground buildings and other attached objects shall be handled by the
land administration department and housing administration departments of the
government in accordance with the law and the pertinent regulations of the
State Council.

    The registration documents shall be made available for public reference.
Chapter II  The Assignment of the Right to the Use of the Land

    Article 8   The assignment of the right to the use of the land refers to
the act of the State as the owner of the land who, within the term of a
certain number of years, assigns the right to the use of the land to land
users, who shall in turn pay fees for the assignment thereof to the State.

    An assignment contract shall be signed for assigning the right to the use
of the land.

    Article 9  People’s governments at the municipal and county levels shall
be in charge of assigning the right to the use of land, which shall be
effected in a planned, step-by-step way.

    Article 10  The land administration departments under the people’s
governments at the municipal and county levels shall, in conjunction with the
administrative departments for urban planning and construction and the housing
administration departments, draw up a plan concerning the size and location,
the purposes, the term, and other conditions with respect to the assigning of
the right to the use of the land. The plan shall be submitted for approval in
accordance with the limits of authority for approval as stipulated by the
State Council and shall then be implemented by the land administration
departments.

    Article 11  The contract for assigning the right to the use of the land
shall be signed by and between the land administration departments under the
people’s governments at the municipal and county levels (hereinafter referred
to as “the assigning party”) and the land users in accordance with the
principle of equality, voluntariness and compensation for use.

    Article 12  The maximum term with respect to the assigned right to the use
of the land shall be determined respectively in the light of the purposes
listed below:

    (1) 70 years for residential purposes;

    (2) 50 years for industrial purposes;

    (3) 50 years for the purposes of education, science, culture, public
health and physical education;

    (4) 40 years for commercial, tourist and recreational purposes; and

    (5) 50 years for comprehensive utilization or other purposes.

    Article 13  The assignment of the right to the use of the land may be
carried out by the following means:

    (1) by reaching an agreement through consultations;

    (2) by invitation to bid; or

    (3) by auction.

    The specific procedures and steps for assigning the right to the use of
the land by the means stipulated in the proceding paragraphs shall be
formulated by the people’s government of the relevant province, automonous
region, or municipality directly under the Central Government.

    Article 14  The land user shall, within 60 days of the signing of the
contract for the assignment of the right to the use of the land, pay the total
amount of the assignment fee thereof, failing which, the assigning party shall
have the right to terminate the contract and may claim compensation for breach
of contract.

    Article 15  Thc assigning party shall, in compliance with the stipulations
of the contract, provide the right to the use of the land thus assigned,
failing which, the land user shall have the right to terminate the contract
and may claim compensation for breach of contract.

    Article 16  After paying the total amount of the fee for the assignment
of the right to the use of the land, the land user shall, in accordance with
the relevant provisions, go through the registration thereof, obtain the
certificate for land use and accordingly the right to the use of the land.

    Article 17  The land user shall, in conformity with the stipulations of
the contract for the assignment of the right to the use of laud and the
requirements of city planning, develop, utilize and manage the land.

    Should any land user fail to develop and utilize the land in accordance
with the period of time specified in the contract and the conditions therein,
the land administration department under the people’s government at the
municipal or county level shall make corrections and, in light of the
seriousness of the case, give such penalties as a warning, a fine or, in an
extreme case, withdrawing the right to the use of the land without
compensation.

    Article 18  If the land user needs to alter the purposes of land use as
stipulated in the contract for assigning the right to the use of land, he
shall obtain the consent of the assigning party and the approval of the land
administration department and the urban planning department and shall, in
accordance with the relevant provisions in this Chapter, sign a new contract
for assigning the right to the use of the land, readjust the amount of the
assignment fee thereof, and undertake registration anew.
Chapter III  The Transfer of the Right to the Use of the Land

    Article 19  The transfer of the right to the use of the land refers to the
land user’s act of re-assigning the right to the use of the land, including
the sale, exchange, and donation thereof.

    If the land has not been developed and utilized in accordance with the
period of time specified in the contract and the conditions therein, the right
to the use thereof may not be transferred.

    Article 20  A transfer contract shall be signed for the transfer of the
right to the use of the land.

    Article 21  With the transfer of the right to the use of the land, the
rights and obligations specified in the contract for assigning the right to
the use of the land and in the registration documents shall be transferred
accordingly.

    Article 22  The land user who has acquired the right to the use of the
land by means of the transfer thereof shall have a term of use which is the
remainder of the term specified in the contract for assigning the right to the
use of the land minus the number of the years in which the original land user
has used the land.

    Article 23  With the transfer of the right to the use of the land, the
ownership of the above-ground buildings and other attached objects shall be
transferred accordingly.

    Article 24  The owners or joint owners of the above-ground buildings and
other atttached objects shall have the right to the use of the land within the
limits of use of the said buildings and objects.

    With the transfer of the ownership of the above-ground buildings and other
attached objects by the land users, the right to the use of the land within
the limits of use of the said buildings and objects shall be transferred
accordingly, with the exception of the movables.

    Article 25  With respect to the transfer of the right to the use of the
land and of the ownership of the above-ground buildings and other attached
objects, registration for the transfer shall be undertaken in accordance with
the relevant provisions.

    Divided transfer of the right to the use of the land and of the ownership
of the above-ground buildings and other attached objects shall be subject to
the approval of the land administration department and the housing
administration department under the people’s government at the municipal or
county level, and registration for the divided transfer shall be undertaken
in accordance with the relevant provisions.

    Article 26  When the transfer of the right to the use of the land is
priced at a level obviously lower than the prevailing market price, the
people’s government at the municipal or county level shall have the
priority of the purchase thereof.

    When the market price for the transfer of the right to the use of the land
rises to an unreasonable extent, the people’s government at the municipal or
county level may take necessary measures to cope with it.

    Article 27  If, after the transfer of the right to the use of the land,
necessity arises for altering the purposes of land use as stipulated in the
contract for assigning the right to the use of the land, it shall be handled
in accordance with the provisions in Article 18 of these Regulations.
Chapter IV  The Lease of the Right of the Use of the Land

    Article 28  The lease of the right to the use of the land refers to the
act of the land user as the lessor to lease the right to the use of the land
together with the above-ground buildings and other attached objects to the
lessee for use who shall in turn pay lease rentals to the lessor.

    If the land has not been developed and utilized in accordance with the
period of time specified in the contract and the conditions therein, the right
to the use thereof may not be leased.

    Article 29  A lease contract shall be signed for leasing the right to the
use of the land by and between the lessor and the lessee.

    The lease contract shall not run counter to the laws and regulations of
the State or the stipulations of the contract for assigning the right to the
use of the land.

    Article 30  After leasing the right to the use of the land, the lessee
must continue to perform the contract for assigning the right to the use of
the land.

    Article 31  With respect to the lease of the right to the use of the land
together with the above-ground buildings and other attached objects, the
lessee shall undertake registration in accordance with the relevant provisions.
Chapter V  The Mortgage of the Right to the Use of the Land

    Article 32  The right to the use of the land may be mortgaged.

    Article 33  With the mortgage of the right to the use of the land, the
above-ground buildings and other attached objects thereon shall be mortgaged
accordingly.

    With the mortgage of above-ground buildings and other attached objects,
the right to the use of the land within the limits of use of the said
buildings and objects shall be mortgaged accordingly.

    Article 34  Amortgage contract shall be signed for mortgaging the right to
the use of the land by and between the mortgagor and the mortgagee.

    The mortgage contract shall not run counter to the laws and regulations
of the State or the stipulations of the contract for assigning the right to
the use of the land.

    Article 35  With respect to the mortgage of the right to the use of the
land together with the above-ground buildings and other attached objects,
registration for the mortgage shall be undertaken in accordance with the
relevant provisions.

    Article 36  If the mortgagor fails to fulfil liabilities within the
prescribed period of time or declares dissolution or bankruptcy within the
term of the mortgage contract, the mortgatee shall have the right to dispose
of the mortgaged property in accordance with the laws and regulations of the
State and the stipulations of the mortgage contract.

    With respect to the right to the use of the land and the ownership of the
above-ground buildings and other attached objects acquired as a result of the
disposal of the mortgaged property, transfer registration shall be undertaken
in accordance with the relevant provisions.

    Article 37  The mortgagee shall have the priority of compensation with
respect to the receipts resulting from the disposal of the mortgaged property.

    Article 38  If the mortgage is eliminated as a result of the liquidation
of liabilities or for other reasons, procedures shall be undertaken to nullify
the mortgage registration.
Chapter VI  The Termination of the Right to the Use of the Land

    Article 39  The right to the use of the land terminate for such reasons as
the expiration of the term of use as stipulated in the contract for assigning
the right to the use of the land, the withdrawal of the right before the
expiration, or the loss of the land.

    Article 40  Upon expiration of the term of use, the right to the use of
the land and the ownership of the above-ground buildings and other attached
objects thereon shall be acquired by the State without compensation. The land
user shall surrender the certificate for land use and undertake procedures to
nullify the registration.

    Article 41  Upon expiration of the term of use, the land user may apply
for its renewal. Where such a renewal is necessary, a new contract shall be
signed in accordance with the provisions in Chapter II of these Regulations
and the land user shall pay the fee for the assignment of the right to the use
of the land and undertake registration.

    Article 42  The State shall not withdraw before the expiration of the term
of use the right to the use of the land which the land user acquired in
accordance with the law. Under special circumstances, the State may, based on
the requirements of social public interests, withdraw the right before the
expiration of the term of use in line with the relevant legal procedures and
shall, based on the number of years in which the land user has used the land
and actual state of affairs with respect to the development and utilization of
the land, offer corresponding compensation.
Chapter VII  The Allocated Right to the Use of the Land

    Article 43  The allocated right to the use of the land refers to the right
to the use of the land which the land user acquires in accordance with the
law, by various means, and without compensation.

    The land user referred to in the preceding paragraph shall pay tax for the
use of the land in accordance with the provisions of the Interim Regulations
of the People’s Republic of China Concerning the Tax for the Use of the Land
in the Urban Areas.

    Article 44  The allocated right to the use of the land may not be
transferred, leased, or mortgaged, with the exception of cases as specified in
Article 45 of these Regulations.

    Article 45  On condition that the following requirements are satisfied,
the allocated right to the use of the land and the ownership of the
above-ground buildings and other attached objects may, subject to the approval
of the land administration departments and the housing administration
departments under the people’s governments at the municipal or county level,
be transferred, leased or mortgaged:

    (1) the land users are companies, enterprises, or other economic
organizations, or individuals;

    (2) a certificate for the use of state-owned land has been obtained;

    (3) possessing legitimate certificates of property rights to the
above-ground buildings and other attached objects; and

    (4) a contract for assigning the right to the use of land is signed in
accordance with the provisions in Chapter II of these Regulations and the land
user makes up for the payment of the assignment fee to the local municipal or
county people’s government or uses the profits resulting from the transfer,
lease or mortgage to pay the assignment fee.

    The transfer, lease or mortgage of the allocated right to the use of the
land referred to in the preceding paragraphs shall be handled respectively in
accordance with the provisions in Chapters III, IV and V of these Regulations.

    Article 46  Any units or individuals that transfer, lease or mortgage the
allocated right to the use of the land without authorization shall have their
illegal incomes thus secured confiscated by the land administration
departments under the people’s governments at the municipal or county level
and shall be fined in accordance with the seriousness of the case.

    Article 47  If the land user who has acquired the allocated right to the
use of the land without compensation stops the use thereof as a result of
moving to another site, dissolution, disbandment, or bankruptcy or for other
reasons, the municipal or county people’s government shall withdraw the
allocated right to the use of the land without compensation and may assign it
in accordance with the relevant provisions of these Regulations.

    The municipal or county people’s government may, based on the needs of
urban construction and development and the requirements of urban planning,
withdraw the allocated right to the use of the land without compensation and
may assign it in accordance with the relevant provisions of these Regulations.

    When the allocated right to the use of the land is withdrawn without
compensation,the municipal or county people’s government shall, in the light
of the actual state of affairs, give due compensation for the above-ground
buildings and other attached objects thereon.
Chapter VIII  Supplementary Provisions

    Article 48  The right to the use of the land may be inherited if it is
acquired by individuals in accordance with the provisions of these Regulations.

    Article 49  The land user shall pay tax in accordance with the provisions
of the tax laws and regulations of the State.

    Article 50  Fees collected by assigning the right to the use of the land
in accordance with these Regulations shall be included in the fiscal budget
and managed as a special fund, which shall be used mainly for urban
constrction and land development. The specific measures for the use and
management of the fund shall be separately prescribed by the Ministry of
Finance.

    Article 51  The people’s governments of various provinces, autonomous
regions and municipalities directly under the Central Government shall, in
accordance with the provisions of these Regulations and with the actual state
of affairs in their respective localities, select as their pilot testing
grounds some of the cities or towns where conditions are relatively ripe.

    Article 52  With respect to foreign investors engaging in developing and
managing tracts of land, the administration of the right to the use of the
land shall be effected in accordance with the relevant provisions of the State
Council.

    Article 53  The State Administration for Land Uses shall be responsible
for the interpretation of these Regulations; the measures for the
implementation thereof shall be formulated by the people’s government of the
provinces, autonomous regions and municipalities directly under the Central
Government.

    Article 54  These Regulations shall go into effect as of the date of
promulgation.






RULES FOR THE IMPLEMENTATION OF THE FOREIGN-CAPITAL ENTERPRISES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-12-12 Effective Date  1990-12-12  


Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises

Contents
Chapter I  General Provisions
Chapter II  Procedures for Establishment
Chapter III  Form of Organization and Registered Capital
Chapter IV  Methods of Contributing Investment and the Time Limit
Chapter V  Use of Site and the Site Use Fees
Chapter VI  Purchasing and Marketing
Chapter VII Taxation
Chapter VIII  Control of Foreign Exchange
Chapter IX  Financial Affairs and Accounting
Chapter X  Workers and Staff Members
Chapter XI  Trade Union
Chapter XII  Term of Operations, Termination and Liquidation
Chapter XIII  Supplementary Provisions

(Approved by the State Council on October 28, 1990, and promulgated by

Decree No. 1 of the Ministry of Foreign Economic Relations and Trade on
December 12, 1990)
Contents

    Chapter I     General Provisions

    Chapter II    Procedures for Establishment

    Chapter III   Form of Organization and Registered Capital

    Chapter IV    Methods of Contributing Investments and the Time Limit

    Chapter V     Use of Site and the Site Use Fees

    Chapter VI    Purchasing and Marketing

    Chapter VII   Taxation

    Chapter VIII  Control of Foreign Exchange

    Chapter IX    Financial Affairs and Accounting

    Chapter X     Workers and Staff Members

    Chapter XI    Trade Union

    Chapter XII   Term of Operations, Termination and Liquidation

    Chapter XIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  These Rules are formulated in accordance with the provisions in
Article 23 of The Law of the People’s Republic of China on Foreign-Capital
Enterprises.

    Article 2  Foreign-capital enterprises shall be under the jurisdiction of
and protection by China’s laws.

    Foreign-capital enterprises, while engaged in business operational
activities within the territory of China, must abide by Chinese laws and
regulations and must not jeopardize the social and public interests of China.

    Article 3  A foreign-capital enterprise to be established in China must be
conducive to the development of China’s national economy, be capable of gaining
remarkable economic results and shall meet at least one of the following
conditions:

    (1) the enterprise is to adopt advanced technology and equipment, engage in
the development of new products, conserve energy and raw materials, and
realize the upgrading of products and the replacement of old products with new
ones which can be used for placing similar Imported goods;

    (2) its annual output value of export products accounts for more than 50%
of the annual output value of all products, thereby realizing the balance
between revenues and expenditures in foreign exchange or with a surplus.

    Article 4  No foreign-capital enterprise shall be established in the
following trades:

    (1) the press, publication, broadcasting, television, and movies;

    (2) domestic commerce, foreign trade, and insurance;

    (3) post and telecommunications;

    (4) other trades in which the establishment of foreign-capital enterprises
is forbidden, as prescribed by the Chinese government.

    Article 5  The establishment of foreign-capital enterprises shall be
restricted in the following trades:

    (1) public utilities;

    (2) communications and transportation;

    (3) real estate;

    (4) trust investment;

    (5) leasing.

    The application for the establishment of a foreign-capital enterprise in
the trades mentioned in the preceding paragraph shall be submitted to the
Ministry of Foreign Economic Relations and Trade of the People’s Republic of
China (hereinafter referred to the Ministry of Foreign Economic Relations and
Trade) for approval, except as otherwise provided by Chinese laws and
regulations.

    Article 6  Application for the establishment of a foreign-capital
enterprise shall not be approved if the proposed enterprise would involve one
of the following circumstances:

    (1) injury to China’s sovereignty or to social and public interests;

    (2) impairment of China’s national security;

    (3) violation of Chinese laws and regulations;

    (4) incompatibility with the requirements of China’s national economic
development; or

    (5) possible creation of environmental pollution.

    Article 7  A foreign-capital enterprise shall make its own managerial
decisions within the approved scope of business operations and shall not be
subject to intervention.
Chapter II  Procedures for Establishment

    Article 8  The application for the establishment of a foreign-capital
enterprise shall be submitted to the Ministry of Foreign Economic Relations and
Trade, and after examination and approval, a certificate of approval shall be
issued by the Ministry.

    With respect to the application for the establishment of a foreign-capital
enterprise that comes under one of the following circumstances, the State
Council shall authorize the people’s government of the relevant province,
autonomous region, municipality directly under the Central Government,
municipality separately listed on the state plan, or the special economic zone,
to issue the certificate of approval after examining and approving the
application:

    (1) the total amount of investment is within the limits of powers for the
examination and approval of investments stipulated by the State Council;

    (2) the proposed enterprises does not need the raw and processed materials
to be allocated by the State, or does not influence unfavourably the national
comprehensive balance of energy resources, communications and transportation,
as well as export quotas for foreign trade.

    Where the people’s government of the province, autonomous region,
municipality directly under the Central Government, municipality separately
listed on the state plan, or the special economic zone has approved the
establishment of a foreign-capital enterprise within its limits of powers
granted by the State Council, it shall, within 15 days after the approval,
submit a report to the Ministry of Foreign Economic Relations and Trade for the
record (hereinafter the Ministry of Foreign Economic Relations and Trade, and
the people’s government of the province, autonomous region, municipality,
directly under the Central Government, municipality separately listed on the
state plan, and the special economic zone shall be called generally as the
examining and approving organ).

    Article 9  With respect to a foreign-capital enterprise, the establishment
of which has been applied for, if its products are subject to export licence,
export quota, or import licenee, or are under restrictions by the State, prior
consent of the department of foreign economic relations and trade shall be
obtained in accordance with the limits of powers for administration.

    Article 10  A foreign investor shall, prior to the filing of an application
for the establishment of a foreign-capital enterprise, submit a report to the
local people’s government at or above the county level at the place where the
proposed enterprise is to be established. The report shall include: the aim of
the establishment of the proposed enterprise; the scope and scale of business
operation; the products to be produced; the technology and equipment to be
adopted and used; the proportion of the sales of products between the domestic
market and the foreign market; the area of land to be used and the related
requirements; the conditions and quantities of water, electricity, coal, coal
gas and other forms of energy resources required; and the requirement of public
facilities.

    The local people’s government at or above the county level shall within 30
days after receiving the report submitted by the foreign investor, give a reply
in writing to the said foreign investor.

    Article 11  In case that a foreign investor wishes to establish a
foreign-capital enterprise, an application shall be submitted to the examining
and approving organ through the local people’s government at or above the
county level at the place where the enterprise is to be established, together
with the following documents.

    (1) the written application for the establishment of a foreign-capital
enterprise;

    (2) a feasibility study report;

    (3) the articles of association of the foreign-capital enterprise;

    (4) the name-list of the legal representatives (or the candidates for
members of the board of directors) of the foreign-capital enterprise;

    (5) the legal certifying documents and the credit position certifying
documents of the foreign investor;

    (6) the written reply given by the people’s government at or above the
county level at the place, where the enterprise is to be established;

    (7) an inventory of goods and materials needed to be imported;

    (8) other documents that are required to be submitted.

    The documents mentioned in Items(1) and (3) in the preceding paragraph must
be written in the Chinese language; while the documents mentioned in Items
(2), (4) and (5) in the preceding paragraph may be written in a foreign
language, but a corresponding Chinese translation shall be attached.

    In the event that two or more foreign investors jointly file an application
for the establishment of a foreign-capital enterprise, they shall submit a
duplicate of the contract concluded and signed between them to the examining
and approving organ for the record.

    Article 12  The examining and approving organ shall, within 90 days after
receiving all the required documents with respect to an application for the
establishment of foreign-capital enterprise, make a decision whether to approve
or disapprove the application. In the event that the examining and approving
organ has found that the documents mentioned above are not complete, or that
some of them are inappropriate, it may call on the applicant to make up the
incomplete documents, or to make necessary revisions, within a prescribed time
limit.

    Artricle 13  After the approval of the application for the establishment of a foreign-capital
enterprise by the examining and approving organ, the foreign
investor shall, within 30 days after receiving the certificate of approval,
file an application with the relevant administrative department for industry
and commerce for registration, and obtain a business licence. The date on which
the business licence is issued shall be the date of the establishment of the
said enterprise.

    In the event that the foreign investor fails to file an application with
the administrative department for industry and commerce for registration on the
expiration of the 30 days after receiving the certificate of approval, the
certificate of approval for the establishment of the proposed enterprise shall
become invalid automatically,

    A foreign-capital enterprise shall, within 30 days after its establishment,
go through the procedures for taxation registration with the tax authorities.

    Article 14  Foreign investors may appoint a Chinese service agency for
enterprises with foreign investment or other economic organizations to handle,
on their behalf, the affairs stipulated in Article 9, the first paragraph of
Article 10 and Article 11 of these Rules, but a contract of entrustment shall
be concluded and signed between them.

    Article 15  The written application for the establishment of a
foreign-capital enterprise shall include the following contents:

    (1) the name or designation, the residence and the place of registration of the foreign investor, and the
name, nationality, and position of the legal
representative;

    (2) the name and residence of the foreign-capital enterprise;

    (3) the scope of business operations, the varieties of products, and the
scale of production;

    (4) the total amount of investment, the registered capital, the source of
funds, and the method of investment contribution and the operation period;

    (5) the organizational form and organs, and the legal representative of the
foreign-capital enterprise;

    (6) the primary production equipment to be used and the degrees of
depreciation, production technology, technological level and their sources;

    (7) the sales orientation and areas, the sales channels and methods, and
the sales proportion between China’s market and foreign markets;

    (8) the arrangements for the revenues and expenditures in foreign exchange;

    (9) the arrangements for the establishment of relevant organs and the
authorized size of working personnel, the engagement and use of workers and
staff members, their training, salaries and wages, material benefits,
insurance, and labour protection;

    (10) the degrees of probable environmental pollution and the measures for
tackling pollution;

    (11) the selection of sites and the area of land to be used;

    (12) the funds, energy resources, raw and processed materials needed in
capital construction and in production and business operations and the
solutions thereof;

    (13) the progress plan for the construction of the project; and

    (14) the period of business operations of the foreign-capital enterprise to
be established.

    Article 16  The articles of association of a foreign-capital enterprise
shall include the following contents:

    (1) the name and the residence;

    (2) the aim and the scope of business operations;

    (3) the total amount of investments, the registered capital, and the time
limit for contributing investment;

    (4) the form of organization;

    (5) the internal organizational structures and their functions and powers
as well as their rules of procedures; the functions, duties and limits of
powers of the legal representative as well as of the general manager, chief
engineer, chief accountant and other staff members;

    (6) the principles and system of financial affairs, accounting and
auditing;

    (7) labour administration;

    (8) the term of business operations, termination, and liquidation; and

    (9) the procedures for the amendment of the articles of association.

    Article 17  The articles of association of a foreign-capital enterprise
shall become effective after the approval by the examining and approving organ.
The same procedure shall apply when amendments are made.

    Article 18  The division or merge of foreign-capital enterprises, and the
significant change in capital resulting from other causes, shall be subject to
the approval by the examining and approving organ; in addition, the said
enterprises shall engage a Chinese registered acountant to carry out
verification, and to submit a report on the verification of capital; after the
approval by the examining and approving organ, the enterprises concerned shall
go through the procedures for the change of the registration with the relevant
administative department for industry and commerce.
Chapter III  Form of Organization and Registered Capital

    Article 19  The organizational form of a foreign-capital enterprise shall
be a limited liability company.

    With approval, the enterprise may also take any other liability form.

    With respect to a foreign-capital enterprise which is a limited liability
company, the liability of the foreign investor to the enterprise shall be
limited to the amount of investment subscribed and contributed to the
enterprise by the investor.

    With respect to a foreign-capital enterprise which takes any other
liability form, the liability of the foreign investor to the enterprise shall
be dealt with in accordance with the provisions of Chinese laws and regulations.

    Article 20  The total amount of investment of a foreign-capital enterprise
refers to the total amount of funds needed for the establishment of the
enterprises, i.e. the sum total of the funds invested in capital construction
in accordance with the scope of production and the circulating funds for
production.

    Article 21  The registered capital of a foreign-capital enterprise refers
to the total amount of capital registered with the administrative department
for industry and commerce for the purpose of establishing the foreign-capital
enterprise, i.e. the total amount of investment the foreign investor undertakes
to contribute.

    The registered capital of a foreign-capital enterprise shall fit in with
the enterprise’s scope of business operations; and the proportion between the
registereed capital and the total amount of investment shall conform with the
provisions of the relevant Chinese laws and regulations.

    Article 22  A foreign-capital enterprise shall not reduce the registered
capital during the term of business operations.

    Article 23  The increase or assignment of the registered capital of a
foreign-capital enterprise shall be subject to the approval by the examining
and approving organ; in addition, the said enterprise shall go through the
procedures for the change of the registration with the administrative
department for industry and commerce.

    Article 24  In case that a foreign-capital enterprise intends to mortgage
or assign its assets or rights and interests to a foreign unit, the case shall
be submitted to the examining and approving organ for approval, and then to the
administrative department for industry and commerce for the record.

    Article 25  The legal representative of a foreign-capital enterprise shall
be the person-in-charge who, in accordance with the stipulations in the
enterprise’s articles of association, executes his/her functions and powers on
behalf of the enterprise.

    In the event that the legal representative is unable to execute his/her
functions and powers, he/she shall entrust in writing an agent with the
execution of his/her functions and powers.
Chapter IV  Methods of Contributing Investment and the Time Limit

    Article 26  Foreign investors may use convertible foreign currencies for
the contribution of investment, or use as their investment machinery and
equipment, industrial property rights, and proprietary technology that are
assigned a fixed price.

    Foreign investors may, after approval by the examining and approving organ,
use, as their investment, their profits in Renminbi (RMB) earned from other
enterprises with foreign investment established within the territory of China.

    Article 27  In case that foreign investors intend to use machinery and
equipment, being assigned a fixed price, as their investment, the said
machinery and equipment must meet the following requirements:

    (1) those that are needed for the production of the foreign-capital
enterprise;

    (2) those that cannot be produced in China, or that can be produced in
China but cannot be guaranted to meet the needs in terms of technical
performance or time of supply.

    The price fixed for the aforesaid machinery and equipment shall not be
higher than the normal price for similar machinery and equipment sold on the
international market at the time.

    With respect to the machinery and equipment, being assigned a fixed price
and used as contributing investment, an inventory listing in detail the
assigning of fixed prices as contributing investment, including the names,
categories, quantities, and the assignment of prices, shall be made and
submitted to the examining and approval organ as an appendix to the application
for the establishment of the foreign-capital enterprise.

    Article 28  In case that foreign investors intend to use industrial
property rights and proprietary technology, being assigned a fixed price, as
their investment, the said industrial property rights and proprietary
technology must meet the following requirements:

    (1) owned by the foreign investors themselves;

    (2) capable of producing new products that are urgently needed by China, or
that are suitable for export and marketable abroad.

    The assigning of a fixed price for the aforesaid industrial property rights
and proprietary technology shall be in conformity with the general pricing
principles of the international market, and the amount of pricing thereof shall
not exceed 20% of the registered capital of the foreign-capital enterprise.

    With respect to those industrial property rights and proprietary
technology, being assigned a fixed price for contributing investment, a
detailed inventory of relevant data, including a duplcate of the proprietary
rights certificate, the effective condition, technological performance, the
practical value, the basis and standard for the calculation of pricing, shall
be prepared and submitted to the examining and approving organ as an appendix
to the application for the establishment of the foreign-capital enterprise.

    Article 29  When the machinery and equipment, being assigned a fixed price
and used as contributing investment, have arrived at China’s port, the
foreign-capital enterprise shall apply to China’s commodity inspection
authorities for inspection, which shall then issue an inspection report.

    In the event that the variety, quality and quantity of the machinery and
equipment, being assigned a fixed price and used as contributing investment,
are not in conformity with the variety, quality and quantity of the machinery
and equipment, being assigned a fixed price as contributing investment and
listed in the inventory submitted to the examining and approving organ, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

    Article 30  After the industrial property rights and proprietary technology
priced as contributing investment have been put to use, the examining and
approving organ has the power to carry out inspection. In the event that the
said industrial property rights and proprietary technology are not in
conformity with the data originally provided by the foreign investors, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

    Article 31  The time limit for a foreign investor to make the investment
contributions shall be clearly stipulated in the written application for the
establishment of the foreign-capital enterprise and also in the articles of
association of the enterprise. A foreign investor may make the investment
contribution by instalments, but the last instalment of the contribution shall
be made within the period of three years beginning from the day when the
business licenee is issued. The first instalment of investment contribution
shall not be less than 15% of the total amount of investment contribution that
the foreign investor undertakes to make, and shall be made in full within a
period of 90 days beginning from the day when the business licenee is issued.

    In the event that a foreign investor fails to make in full the first
instalment of the investment contribution within the time limit stipulated in
the preceding paragraph, the certificate of approval for the establishment of
the proposed foreign-capital enterprise shall become invalid automatically. The
foreign-capital enterprise in question shall go through the procedure for
registration cancellation with the relevant administrative department for
industry and commerce, and hand in its business licence for cancellation.

    In the event of the failure to go through the procedure for registration
cancellation and to hand in the business licence for cancellation, the
administrative department for industry and commerce shall revoke the business
licence and announce the case publicly.

    Article 32  After making the first instalment of investment contribution,
the foreign investor shall make the remaining instalments of contribution
strictly as scheduled. In the event that a foreign investor is in arrears with
the contribution for 30 days without any justification, the case shall be
handled in accordance with the provisions of paragraph 2 of Article 31 of these
Rules.

    In the event that a foreign investor has proper reasons for requesting the
postponement of investment contribution, prior consent of the examining and
approving organ shall be obtained, and the case shall also be reported to the
administrative department for industry and commerce for the record.

    Article 33  After the foreign investor’s each instalment of investment
contribution, the foreign-capital enterprise shall engage a Chinese registered
accountant to carry out verification, and to prepare a report on the
verification of capital, which shall be submitted to the examining and
approving organ and the administrative department for industry and commerce for
the record.
Chapter V  Use of Site and the Site Use Fees

    Article 34  With espect to the site to be used by a foreign-capital
enterprise, the local people’s government at or above the county level in the
place where the enterprise is to be located, shall make arrangements after
examination and verification in the light of the local conditions.

    Article 35  A foreign-capital enterprise shall, within 30 days from the day
the business licence is issued, go through the procedure for the use of land
and obtain the land certificate by presenting the certificate of approval and
the business licence to the land administration department under the local
people’s government at or above the county level in the place where the
enterprise is to be located.

    Article 36  The land certificate shall be the legal instrument for the
foreign-capital enterprise to use land. The foreign-capital enterprise within
its term of operations, may not assign its land-use right without permission.

    Article 37  A foreign-capital enterprise shall, when obtaining the land
certificate, pay its land use fee to the land administrative department in the
place where the enterprise is located.

    Article 38  In case that a foreign-capital enterprise uses land that has
already been developed, it shall pay the land development fee.

    The land development fee, as mentioned in the preceding paragraph, includes
the expense for the requisition of land, the expense for the pulling down of
houses and the settlement allowance, and the expense for the

MEASURES OF THE CUSTOMS CONCERNING THE ADMINISTRATION OF THE GOODS, MEANS OF TRANSPORT, AND ARTICLES CARRIED BY INDIVIDUALS TO BE BROUGHT INTO OR OUT OF THE BONDED AREA OF OUTER GAOQIAO IN SHANGHAI

Category  CUSTOMS Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1990-09-09 Effective Date  1990-09-09 Date of Invalidation  1997-08-01


Measures of the Customs of the People’s Republic of China Concerning the Administration of the Goods, Means of Transport, and Articles
Carried by Individuals to Be Brought Into or out of the Bonded Area of Outer Gaoqiao in Shanghai (Note 1)

Chapter I  General Provisions
Chapter II The Basis for the Inspection and Clearance of Imported and
Chapter III  The Administration of the Import and Export Commodities of
Chapter IV  Administration of Commodities Imported and Exported by Foreign
Chapter V  Administration of Warehousing and Storing Enterprises for
Chapter VI Administration of Means of Transport and Articles Carried
Chapter VII  Supplementary Provisions
Note:

(Approved by the State Council on September 8, 1990 and promulgated by

Decree No. 13 of the General Customs Administration on September 9, 1990)
(Editor’s Note: This Measures has been annulled by Measures for Customs
Supervision and Control of the Bonded Areas promulgated on August 1, 1997,
and effective as of the same date)
Chapter I  General Provisions

    Article 1  The Measures are formulated in accordance with the Customs
Law of the People’s Republic of China and the provisions of other pertinent
laws and regulation promulgated by the State in order to promote the
construction in the bonded area of Outer Gaoqiao in Shanghai and develop the
export-oriented economy.

    Article 2  The bonded area of Outer Gaoqiao in Shanghai (hereinafter
referred to as “the bonded area”) is under the supervision and administration
of the Customs, and the Customs shall carry out the task of supervision and
administration in the bonded area according to Law. On the demarcation line
between the bonded area and the non-bonded areas (i.e., the other areas within
the territory of China, the same below shall be established well equipped
separation installation.

    Article 3  Goods, means of transport, or articles carried by individuals
entering or leaving the bonded area must go through the entrance and exit of
the Customs establishments. They shall be declared at the Customs truthfully
and accept the inspection of the Customs. Enterprises engaged in import and
export business and enterprises engaged in production and storage business in
the bonded area, shall present document of approval, issued by the Shanghai
People’s Government or by the competent authorities designated by it, to the
Customs for registration.

    Article 4  With respect to import and export commodities in the bonded
area, the consignee, the consignor, or their agent shall fill in the
declaration form for import and export commodities, and present the relevant
documents in accordance with provisions.

    Article 5  Within the confines of the bonded area, only the competent
administrative organs and relevant enterprises are to be established.

    With the exception of the security personnel, no other personnel shall
be permitted to reside in the bonded area.

    Article 6  Within the confines of the bonded area, goods imported by the
competent administrative organs or enterprises for their own use shall be
used only in the bonded are; these goods are strictly forbidden to be
transferred or sold in the non-bonded areas without approval. The bonded
goods must be re-transported out of the territory, or be re-transported
after being processed out of the territory.

    If, under special circumstances, the aforesaid goods must be transferred
to, or sold in non-bonded areas, they shall be regarded as imported goods,
and the persons concerned shall present import licence as prescribed by the
State, and pay import duty and product tax in the link of import (i.e. tax on
added value) or consolidated industrial and commercial tax.

    Article 7  The establishment of production of projects, in the bonded
area, which are restricted and controlled by the State, shall be approved by
the competent authorities prescribed by the State.

    Article 8  Goods and articles, whose import and export are forbidden
by the State, shall not be brought into or out of the bonded area.

    Goods intended to be sold in the non-bonded areas shall not be transported
into the bonded area.

    Article 9  The Customs has the right to inspect, according to the
provisions of the Customs Law of the People’s Republic of China, goods
imported into or exported from the bonded area and the sites connected with
them.
Chapter II The Basis for the Inspection and Clearance of Imported and
Exported Goods and the Preferential Treatment in Taxation

    Article 10  Import or export licence shall be exempted in the following
cases; the importation into the bonded area of machinery, equipment, goods
and materials for capital construction, motor vehicles for production, means
of transport, and articles for office use, which are to be used within the
bonded area; the importation of raw and processed materials, spare and
component parts, primacy parts, fuels, and packaging supplies needed to
processing export products; the transit goods for storage; and the products
processed in the bonded areas and destined for export.

    Article 11  Goods (including raw materials, spare parts and components,
primary parts, and packaging supplies for the production of export products),
transported from the non-bonded areas into the bonded area, shall be regarded
as export goods, and the Customs procedures shall be completed in accordance
with the pertinent provisions promulgated by the State.

    Article 12  With respect to the domestically manufactured machinery,
equipment and articles for daily use, which are transported into the bonded
area from the non-bonded areas and are for the use by administrative
departments, enterprises and their personnel in the area, the interested
units shall declare at the Customs, which shall give clearance after
inspection. As regards those imported goods and articles transported into
the bonded area from the non-bonded areas and which have been cleared after
going through import procedures, the Customs duties already paid shall not
be refunded.

    Article 13  Customs duty and consolidated industrial and commercial tax
(tax on products, or tax on added value) on the import and export goods of
the bonded area shall be handled in accordance with the following provisions:

    (1) the machinery, equipment, and other goods and materials for capital
construction needed for the construction of basic installations and facilities
in the bonded area shall be exempted from duty;

    (2) the building materials, the equipment for production and administration,
the fuels for production, motor vehicles within reasonable quantities for
production, means of transport, articles for office use, and the spare parts
and fittings needed for the maintenance of the aforesaid machinery, equipment
and motor vehicles, which are imported by enterprises in the bonded area for
their own use, shall be exempted from duty;

    (3) the means of transport within reasonable quantities, articles for
office use, equipment for administration, imported by administrative
departments in the bonded are for their own use, shall be handled by applying
mutatis mutandis the provisions of Item (2) of this Article;

    (4) the raw and processed materials, spare and components parts, primary
parts, and packaging supplies, imported by the enterprises in the bonded
area to be used for production of export products, shall be held in bond;

    (5) transit goods shall be treated as bonded goods, and shall be exempted
from duty if they are to be re-exported;

    (6) the importation of articles other than those within the scope as
prescribed in Items (1) through (5) of this Article, shall be taxed in
accordance with relevant regulations;

    (7) the exportation of products processed by enterprises in the bonded
area shall be exempted from export duty and consolidated industrial and
commercial tax in the production link (tax on products, or tax on added
value).
Chapter III  The Administration of the Import and Export Commodities of
Production Enterprises

    Article 14  Enterprises destined for production in the bonded area shall
register at the Customs for the record, and obtain a “registration handbook”.

    The aforesaid enterprises shall set up specialized account books to keep
separate records of the importation, storage, exportation, and marketing
conditions of raw and processed materials, spare and component parts, primary
parts and finished goods; and submit periodical statements to the Customs for
future reference and for verification and cancellation.

    Article 15  The finished products manufactured with imported raw materials
and spare parts by production enterprises shall all be sold abroad. If, under
special circumstances, it is necessary to sell finished products, substandard
products, and leftover bits and pieces of raw materials in the non-bonded
areas, such products shall be regarded as imported products, the procedures
for importation shall be completed in accordance with the pertinent provisions
of the State and duties be paid according to regulations. The Customs shall,
in accordance with the quantities of the imported raw materials and spare and
component parts of which the finished products consist, levy duties on them.
In the event that the consignors or their agents cannot submit an accurate
report on the names, quantities and value of such raw materials and spare and
component parts, the Customs shall take the finished products as imported and
levy duties as such.

    Article 16  The imported raw materials and spare and component parts
shall, within the period of one year after their importation, be processed into
finished products and sold outside the Chinese territory; and the enterprise
concerned shall, within the period of one month after the completion of the
execution of the contract, approach the Customs for verification and
cancellation be presenting the “registration handbook” and the declaration
form for export commodities endorsed by the Customs.

    In case the imported raw materials and spare and component parts are not
processed into finished products within one year, with the exception of
special approval for an extension, due procedures for obtaining a licence and
paying the duty as import goods shall be completed.
Chapter IV  Administration of Commodities Imported and Exported by Foreign
Trade Enterprises

    Article 17  A foreign trade enterprise in the bonded area, which is
approved by the State competent authorities to conduct import and export
business, may transact transit trade and act as an agent for other enterprises
in the bonded area to import raw and processed material and spare and
component parts for production, or to export products. However, it may not
purchase goods manufactured by enterprises in the non-bonded area; nor may it
act as an agent for enterprises in the non-bonded area to import goods.

    Article 18  When a foreign trade enterprise in the bonded area conducts
import and export of goods, the Customs shall give clearance after verifying
the import and export agency contract signed between the foreign trade
enterprise and the interested production enterprise, and other relevant
documents.

    Article 19  Goods imported by a foreign trade enterprise in the bonded
area shall be stored in the warehouses and sites designated by the Customs
within the bonded area, and the aforesaid enterprise shall keep specialized
account books, and submit periodical statements to the Customs for
verification.

    Article 20  When a foreign trade enterprise delivers goods, imported by
it as an agent, to a production enterprise for processing, or exports goods
as an agent for the production enterprise, both buying and selling parties
shall, by presenting the import and export agency contract to the Customs,
go through the procedures for Customs declaration, carrying-over of accounts,
and verification and cancellation.

    With respect to the aforesaid goods carried over by the production
enterprise the Customs shall handle the matter in accordance with the
provisions in Chapter III of these Measures.

    Article 21  Goods imported through the agency of a foreign trade
enterprise shall not be transferred or sold to the non-bonded areas without
authorization.
Chapter V  Administration of Warehousing and Storing Enterprises for
Transit Goods

    Article 22  Transit goods imported from abroad into the bonded area shall
be stored in warehouses and sites, designated by the Customs, in the bonded
area. Without the approval of the Customs, the aforesaid goods shall not be
transferred or sold.

    Article 23  Transit goods, with the approval of the Customs, may undergo
simple processing in warehouses, such as grading, selecting, pasting trademark
tags, and changing the packing. The warehousing and storing enterprises
shall keep specialized account books for import, storage, transit, and
marketing, and submit periodical statements to the Customs for verification.

    Article 24  The time limit for the storage of transit goods in the bonded
area shall be one year. If, under special circumstances, there is a need to
extend the time limit, an application shall be filed with the Customs for
an extension, which shall in no way exceed one year. In the event that the
transit goods are not transported out of the bonded area within the time
limit, the Customs shall handle the case in accordance with the provisions of
Article 21 of The Customs Law of the People’s Republic of China.
Chapter VI Administration of Means of Transport and Articles Carried
Along by Individuals

    Article 25  The persons in charge or the owners of the means of transport
entering or leaving the bonded area, or their agents, shall present the
certification, approved by Shanghai People’s Government or the competent
organs designated by it, for going through the procedures of registration for
the record.

    Article 26  Means of transport, on entering or leaving the bonded area,
shall declare at the Customs, and accept the inspection by the Customs.

    Article 27  Means of transport and personnel, while going from the
bonded area to a non-bonded area, shall not, without approval, transport or
carry out of the bonded area bonded goods or products made from bonded raw
and processed materials and spare and component parts.
Chapter VII  Supplementary Provisions

    Article 28  Cases concerning the supervision charges for goods with
Customs duties reduced or exempted, or for bonded goods imported into the
bonded area, shall be handled in accordance with Measures of the Customs of
the People’s Republic of China Concerning the Collection of Customs
Supervision Charges for Goods Imported with Reduction of or Exemption from
Customs Duty, and for Bonded Goods.

    Article 29  It is strictly prohibited to engage in illegal activities of
smuggling by taking advantage of the preferential treatment and conveniences
granted by the State to the bonded area. The Customs shall handle the
smuggling activities which occur in the bonded area in accordance with the
provisions of The Customs Law of the People’s Republic of China.

    Article 30  The right to interpret these Measures resides in the General
Customs Administration. Rules for the implementation of these Measures may be
formulated by the Shanghai Customs in accordance with these Measures. The
implementation rules shall be put into effect after its approval by the
General Customs Administration.

    Article 31  These Measures shall be promulgated and put into effect by
the General Customs Administration.
Note:

    Note 1  In the Reply to the Measures of the Customs of the People’s
Republic of China Concerning the Administration of the Goods, Means of
Transport, and Articles Carried by Individuals to be Brought into or out
of the Bonded Area of Outer Gaoqiao in Shanghai, The State Council gave
the following instruction: “A special, colsed channel shall be constructed
in between the bonded area of Outer Gaoquao in Shanghai and the wharf. The
Measures shall be put into effect after the separation installations in the
bonded area have been completed, and checked strictly and accepted by the
Customs.” –The Editor






ADMINISTRATIVE RULES ON ESTABLISHMENT OF PERMANENT REPRESENTATIVE OFFICES OF FOREIGN WATERWAY AND HIGHWAY TRANSPORT ENTERPRISES

Administrative Rules on Establishment of Permanent Representative Offices of Foreign Waterway and Highway Transport Enterprises

     (Effective Date:1991.03.01–Ineffective Date:)

   Article 1. To strengthen the administration over the permanent representative offices set up by foreign waterway and highway transport enterprises
and other organizations in China, the rules hereof are formulated in accordance with “the Provisional Regulations of the State Council
of the People’s Republic of China Concerning the Administration over Permanent Representative Offices of Foreign Enterprises” and
in the light of the concrete situation in the waterway and highway transport.

   Article 2. When foreign waterway and highway transport enterprises, including those engaged in harbor business, harbor and navigational channel
construction, highway construction, transport agencies and other transport-related organizations and enterprises (hereinafter referred
to as foreign transport enterprises) need to apply for establishment of permanent offices in China because of business needs, the
applications have to be approved by the Chinese Ministry of Communications and Transport (MCT).

   Article 3. When the foreign transport enterprises apply for establishing permanent representative offices in China, they should present the
following documents and materials:

a. An application signed by the enterprise’s chairman of board of directors or general manager, covering the name of the permanent
representative office to be set up, its responsible members, line of business, period for resident operation and location;

b. Legal business license or duplicate copy of business registration issued by the governing authorities of the foreign country or
region the enterprise is domiciled;

c. Capital credibility certificate issued by financial organizations that have business relations with the enterprise;

d. Letters from the enterprise appointing the office bearers of the permanent representative office and their resumes and photos (two
copies).

   Article 4. When the application is ratified by MCT, “the Document of Ratification for Establishment of Permanent Representative Office of Foreign
Transport Enterprises in China” will be issued.

   Article 5. After the foreign transport enterprise’s application for establishment of permanent representative office in China is ratified, the
enterprise must, within 30 days as of the date of ratification, take the document of ratification to go through the procedures for
registration and residence at the provincial, autonomous regional or municipal administration of industry and commerce and local
public security organs and obtain the registration certificate for permanent representative offices of foreign enterprises and certificates
of residence before they start business. If they fail to go through the necessary procedures within the specified period, the document
of ratification is automatically cancelled.

   Article 6. The number of representatives of the permanent representative offices is to be examined and decided by MCT in the light of the need
of their business. In each ratification of the establishment of a permanent representative office, the longest resident period given
will be three years. If the representative office needs to continue the resident operation after the expiry of the period, it must,
within 30 days before the expiry of the period, present to MCT an application signed by the chairman of the board of directors or
the general manger of the foreign transport enterprise. When the application is approved by MCT, it will be granted “the Document
of Ratification for Prolonging Resident Period of Permanent Representative Offices of Foreign Transport Enterprises.” Each prolonging
period shall not exceed three years.

   Article 7. If a foreign transport enterprise wants to change the name of its permanent representative office, responsible members or representatives,
line of business, resident period and location, it must apply to MCT for such a change. The application for such a change must be
signed by the chairman of the board of directors or general manager of the foreign transport enterprise. Upon approval by MCT, it
is granted “the Document of Approval for Change”. If the application involves the change of responsible members or representatives
of the permanent representative office, the letters of appointment, resumes and photos (two copies) of the new persons representing
the office must be attached.

   Article 8. When a permanent representative office of a foreign transport enterprise intends to employ a Chinese citizen to work for it, it must
entrust the department appointed by the local government to manage the employment and report in time to MCT about such employment
and/or change of such employment.

   Article 9. The proper business activities of the permanent representative offices and their representatives of the foreign transport enterprises
are protected by the laws of the People’s Republic of China. The permanent offices and their staff must abide by Chinese laws and
decrees and the rules hereof and carry out proper business activities within their business scope.

   Article 10. The permanent representative offices of foreign transport enterprises can only engage in indirect business activities. Should there
be agreements between the Chinese and foreign governments in this regard, things should be done according to governmental agreements.

Without the ratification by MCT, foreign transport enterprises are not allowed to establish permanent representative offices in China,
nor use the name of permanent representative offices, their business cards and seals; nor to engage in any of the business activities
of a permanent representative office.

   Article 11. MCT has the authority to supervise and control the work of the permanent representative offices of foreign transport enterprises
and may ask them to report their annual business activities.

   Article 12. When permanent representative offices of foreign transport enterprises intend to terminate their business upon or before the expiry
of their resident period, they should report to MCT in written form within 30 days before such a termination.

   Article 13. When permanent representative offices of foreign transport enterprises violate the rules hereof, MCT may warn, fine or punish them
according to the seriousness of the cases and may, if it is of a serious nature, cancel the Document of Ratification for Establishment
of Permanent Representative Offices and notify the administration of industry and commerce.

   Article 14. When transport enterprises invested by overseas Chinese, Hong Kong and Macao compatriots or Sino-foreign transport joint ventures
set up outside the Chinese boundary apply to establish permanent representative offices in China, the case is handled in the light
of the rules hereof.

   Article 15. The right to interpret the rules hereof rests with MCT.

   Article 16. The rules hereof comes into effect as of March 1, 1990.

    






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...