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1996

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.

    





ORGANIC LAW OF THE URBAN RESIDENTS COMMITTEES OF THE PEOPLE’S REPUBLIC OF CHINA

Organic Law of the Urban Residents Committees 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 and promulgated by Order No.21 of the President of the People’s Republic of China on December 26, 1989) 

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  fulfillment 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 promises 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 go into effect as of 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.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE STATE ADMINISTRATION FOR IMPORT AND EXPORT COMMODITY INSPECTION ON THE CERTIFICATION OF THE COMMODITY INSPECTION BUREAUS FOR THE MACHINES AND EQUIPMENTS WHICH ARE EVALUATED AS INVESTMENT BY THE FOREIGN-CAPITAL ENTERPRISES

The State Administration for Import and Export Commodity Inspection

Circular of the State Administration for Import and Export Commodity Inspection on the Certification of the Commodity Inspection Bureaus
for the Machines and Equipments which are Evaluated as Investment by the Foreign-capital Enterprises

GuoJianWu [1990] No.467

December 31, 1990

All the local bureaus of commodity inspection:

With regards to Article 29 of the Rules for the Implementation of Foreign-capital Enterprises Law of the Peopl’s Republic of China
which is distributed by the Decree No.1 of the Ministry of Foreign Economic Relations and Trade with approval of the State Council,
the machinery and equipments invested by the foreign-capital enterprises should be applied the local bureau of commodity inspection
for inspection and given the inspection report by it when they are arrived at Chinese port. The commodity listed in this provision
that belongs to “the import and export commodity inspected by the commodity inspection institutions prescribed by the other laws
and administrative regulations” under the Law of Commodity Inspection should be inspected and granted the certificate as the legal
commodity.



 
The State Administration for Import and Export Commodity Inspection
1990-12-31

 






OUTLINE OF STATE INDUSTRIAL POLICIES FOR THE S

Outline of State Industrial Policies for the 1990s

     (Effective Date:1994.03.25–Ineffective Date:)

CHAPTER I VIGOROUSLY DEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS CHAPTER II CONSCIENTIOUSLY STRENGTHEN
THE CONSTRUCTION OF INFRASTRUCTURAL FACILITIES AND BASIC INDUSTRIES CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES CHAPTER V VIGOROUSLY
DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE CHAPTER VI ORGANIZATION, TECHNOLOGY AND SETUP OF INDUSTRIES CHAPTER VII PROCEDURES FOR
FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

The formulation of industrial policies is to work as one of the important means of the State in its strive to strengthen and improve
macro-economic control, effectively adjust and optimize the industrial structure, improve the quality of industries and promote a
sustainable, fast and healthy development of the national economy and under the guidelines of the 14th National Party Congress and
the decisions adopted at the third plenary session of the 14th Party Central Committee, the present “Outline of State Industrial
Policies for the 1990s” is worked out in the light of the current situation and trend of development in the national economy as a
guide and basis for formulating policies for various industries in the near future.

In formulating State industrial policies, the following principles must be observed: (1) Such policies must be able to combine the
universal way of industrialization and modernization with the special conditions and industrial structure of our country; (2) Such
policies must be able to help establish a socialist market economic system in our country so as to give a basic role to the market
for the allocation of resources under the macro-economic control by the State; (3) Such policies must be able to help concentrate
the efforts of the country to solve the major problems that are of vital importance to the overall situation of the national economy;
(4) Such policies must be able to become fully operational mainly through economic and legal means and properly supplemented with
necessary administrative means to support the development of industries and products in short-term demand and curtail those in long-term
demand.

For the 1990s the major objects of the State industrial policies are: constantly strengthen the basic status of agriculture to develop
the rural economy in an all-round manner; devote great efforts to step up the development of the basic industries, striving to ease
the heavy drawback of infrastructure and basic industries; accelerate the development of pillar industries to bring about an all-round
revitalization of the national economy; rationally readjust the foreign economic and trade structure to enhance the competitiveness
of Chinese industries on the international market; step up the development of high and new tech industries and support the development
of newly emerging industries and new products; and continue to develop the tertiary industry in a big way. Meanwhile, it is necessary
to optimize the structure of industries, raise their technical levels and rationalize their distribution.

CHAPTER I VIGOROUSLY dEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS

To develop vigorously agriculture and the rural economy and increase the income of peasants are the first and foremost task of economic
development in the 1990s. It is imperative to foster the broadest sense of agricultural development which includes an all-round development
of agriculture, forestry, animal husbandry, sidelines and fisheries and a vigorous development of high-yield, high-quality and high-efficiency
and high foreign exchange earning agricultural products so as to be able to turn out a sufficient amount of agricultural products
to both cater a well-being living at home and meet the demand of the international market in terms of quality, variety and quality.
For such an undertaking, it is necessary to restructure the rural industrial structure, energetically develop the secondary and tertiary
industries in the rural areas, gradually transfer the rural surplus labor to bring the comprehensive production capacity and economic
efficiency of the rural areas onto a new level.

In developing agriculture and the rural economy, it is essential to implement in real terms the series of policies and measures formulated
by the Party central committee and the State Council and the present “Outline Program for the Development of China’s Agriculture
in the 1990s”. For that, it must: extend the contracted terms for the arable land to stabilize and improve the household responsibility
system which ties up the income with output and the two-tier managing system which integrates the contralized and scattered management
in an effective way; rationally readjust the organization of agricultural production to introduce new production systems of integrating
cropping, breeding and processing and also agriculture, trade, and industry; cultivate energetically the rural market by establishing
sound grain protective prices, a grain venture fund system, and a grain reserve system; establish and improve the rural collective
service system to make it a vast network consisting of services run by the State, collectives and individuals; dedicate real effort
to protect the arable land including the step by step establishment of basic farmland protection zones and formulation of corresponding
measures of management; increase input in agriculture including the increase of financing by central and local governments on an
annual basic, support the development of agro-serving industries, encourage peasants own inputs, and attracting more foreign capital
to the development of agriculture; energetic efforts must be made to use and spread new techniques and lightening the burdens on
peasants and earnestly protecting their legitimate rights and interests.

With the increase of rural productivity, the rational transfer of rural surplus labor will acquire an important relevance in the strive
of further developing the agriculture and the rural economy and increasing the income of the peasants So, further efforts must be
made to accelerate the development of township enterprises, especially in the central and western parts of the country. In such a
context, planning and policy guidance should be enhanced to lead the township enterprises develop in a concentrated manner. Meanwhile,
it is necessary to transform and make full use of the existing small towns and step up the building of new ones.

CHAPTER II CONSCIENTIOUSLY STRENGTHEN THE CONSTRUCTION OF INFRASTRUTUAL FACILITIES AND BASIC INDUSTRIES

The development of infrastructural facilities and basic industries must be accelerated so as to keep pace with that of the national
economy as a whole. The efforts must be made basing on the principles of “unified planning, rational distribution, banding force
on key areas, doing one’s best within one’s might and keeping an eye at efficiency”.

For transportation, major efforts must by put to increase the carrying capacity of railways. While giving special effort to develop
the thoroughfares, roads, waterways, air, pipelines and other ways of transportation must also be developed in a full scope to form
a comprehensive transport system. For telecommunications, great efforts must be paid to develop a comprehensive but concentrated
information disseminating network basing on high speed, high quality and high capacity communication means and advanced technologies
and equipment of international standard at the same time of increasing the portion of home-made devices. For energy, equal emphasis
must be given to development and conservation so as to achieve a well-coordinated development of energy, economy and environment.
In coal industry, construction of State-owned key mines must be accelerated and efforts must be made to promote the transformation
and improvement of local mines and mines operated by townships. In the petroleum industry, while stabilize the output in the eastern
part, more reserves in the western part must be verified and international resources rationally utilized. In the power industry,
the principle is to develop both thermal and hydroelectric power in light of actual conditions and expand nuclear power properly.
It is necessary to consolidate and improve the existing water conservancy facilities and carry out comprehensive control of large
rivers and lakes with clear emphasis in order to prevent water loss and soil erosion, protect and rationally allocate water resources
and raise the capabilities against drought and floods and gradually solve the drinking water supply problem in water short areas
and in cities. The development of urban municipal utilies should be accelerated according to the principle of “unified planning,
rational distribution and comprehensive development.”

In order to accelerate the development of infrastructure facilities and basic industries, the State will adopt the following principal
policies: fully use the initiatives of both the central and localities under clarified division of work among the governments at
all levels; clearly define the plans for the development of infrastructure facilities and basic industries to acquire a sound development
of both; well establish and improve a policy-based long-term investment and financing system to provide appropriate financial support
to construction projects encouraged by the State; channelling funds into the construction of infrastructure facilities and basic
industries from various sectors with priority giving to issue of stocks and bonds to cater to the development of such facilities
and industries; encouraging foreign investment to construction of infrastructural facilities and basic industries to extend the use
of foreign funds in the sectors both in scale and areas; further smoothing out the pricing system to give full scope to the regulatory
roles of the price mechanism and intensify the control over the prices of products and services provided by highly monopoly industries;
continuing to requisite lands in low prices for the construction of infrastructure facilities and basic industries; using incomes
of the government from leasing of land resources for the construction of infrastructure facilities; and permitting under approval
procedure investors in transport facilities in obtain the right to develop real estate along the transporting lines, port areas and
around airports as comprehensive economic compensation.

CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES

Efforts should be made to accelerate the development of machine- building, electronic, petro-chemical, automobile and construction
industries to make them the pillar industries of the national economy.

For machine-building industry focus should be put on the making of elementary machinery, basic parts and complete sets of major technical
equipment so as to promote the optimization of product structure and raise the technical level and competitiveness of the industry.
For electronic industry, microelectronics should serve as the base for the development of telecommunications, computers and other
emerging information industries to accelerate the pace of modernization. For the petrochemical industry, energetic efforts should
be made to enlarge production scales, improve technical levels and depth of processing. For automotive industry, a production system
of fewer production sites and economic scale of production should be undertaken as soon as possible to strive for a bigger share
in the domestic market and a better competitiveness in the world market for domestic products. For construction industry, emphasis
should be put to the building of residential houses in cities, key State construction projects and the construction of cities and
towns to strive to establish a unified and open market with orderly competition and improve the quality of products for construction.

The State will promote the development of the pillar industries by adopting the following measures: to formulate and publish unified
industrial policies and ensure their implementation by legal means; to gradually establish an investment and financing system and
standard enterprises financing mechanism to facilitate the development of the pillar industries, including arrangement given by the
State for prior issue of pillar industry related stocks and bonds; direct support should be given by the government in funds and
materials to prop up the technical development of certain major areas in the pillar industries such as under approval of the State
Council, granting power to some large enterprise groups to directly raise funds abroad commensurate with the their own capital and
gains. Meanwhile, according to common international practice and articles of relevant agreements, the State will treat part of the
products of the pillar industries as infant industrial products and protect them properly and within a certain limit of time. At
the same time, the government will allow the conditional opening of part of the home market in order to obtain key technology and
equipment.

CHAPTER V VIGOROUSLY DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE

The government will continue to encourage the expansion of foreign trade, actively readjust the trade structure so as to display the
country’s own advantages in the trade, improve its export efficiency, promote the restructuring and optimizing of industrial structure,
enchance the international competitiveness and maintain the balance of international payments.

The State encourages export of the following products; agricultural and sideline products with comparative advantages, light industrial
goods and textiles; household electrical appliances and other machinery and electronic products with mature production technology;
products with high added value and international competitiveness; and high and new technology products, but discourages the bulk
export of resources products, and strives for gradual reduction in the export of primary products and products with high energy contents,
with some even restricted or forbidden for export.

The State encourages the import of new technology and relevant key equipment, key and spare parts; appropriately increases the import
of some primary products in short supply at home, supports the efforts by infant industries to introduct, assimilate and absorb new
technologies, new production equipment and their key and spare parts. Meanwhile, the State discourages the import of high and consumer
goods.

For such an end, the State will fully use the function of the import and export banks to encourage enterprises to increase their export
of complete sets of equipment and machinery and electronic products; strengthen the control on the import quantity of a few products,
through the granting of quotas by means of tenders, auction or regulations based on the principal of “efficiency, fairness and openness”;
strengthen the policies for promoting the export of deep-processed products, high value added manufactured goods and complete sets
of equipment; give the power of handling foreign trade to various kinds of qualified enterprises and particularly encourage large
enterprises (groups) to open direct sales channels overseas; and rationally adjust the tariff rates according to the State industrial
policies.

CHAPTER VI Organization, Technology and Setup of Industries

(1) The objectives of the policies toward industrial organizations are: promoting fair competition among enterprises and realizing
economic scale of production and specialized cooperation to form an industrial organizational structure to adapt to the characteristics
of industrial technical economy and the stages of development of the national economy. For industries with marked efficiency of an
economic scale, a market structure should be formed with a few large enterprises (groups) as the main competitors; for industries
with products composed of large amounts of parts and accessories, there should be a market structure of an appropriate scale that
facilitate the rational division of labor and coordination among large, medium-sized and small enterprises; for industries without
market efficiency of economic scale, efforts should be made to encourage the development of small enterprises to form market structure
comprising a large number of large, medium-size and small enterprises which will develop simultaneously and compete freely.

To realize the objectives, the government will; gradually introduce market mechanism into industries which are of monopoly in nature
in specific regions to encourage fair competition among them; set minimum scale for industries and products which are of efficiency
in economic scale. At the same time, barriers to separate departments, and regions will be broken down to stop the setting up of
projects that fail to meet the standards of economic scale so as to promote the realization of scale economy. Enterprises are also
encouraged to form transregions, departments, ownerships or even nations associations or enterprises groups by way of equal competition,
merging, amalgamation, or holding each other’s shares. The government will step up the building of the legal system concerning market
competition so as to create a good external environment for enterprises to compete on an equal footing and readjust their organizational
setups.

(2) The key objects of industrial technology policy are to: promote the development of applied technologies, encourage the integration
of research and production, accelerate the application of research results, promote the introduction and assimiliation of advanced
foreign technologies to markedly improve the quality and technical function and reduce the energy, material consumptions and production
cost of Chinese products and strive to improve the technical levels of Chinese industries.

The government will adopt the following measures to promote technological progress: To increase input in scientific research and development
through multiple channels and in a variety of forms so as to gradually increase its proportion in the GNP; to map out research and
development programs for key technologies that are of importance in the development of various industries, support and encourage
the absorption and creation of advanced technologies; to strengthen planning of high and new technology industries, do well in the
construction of the State approved high and new technology development zones; to promote the process of standardization and serialization,
encourage the adoption of international standards and advanced foreign standards and more strict internal standards of enterprises;
to enhance the capabilities of enterprises to develop new products independently, encourage enterprises to strengthen their ties
with research institutions and universities and colleges in order to accelerate the speed of commercializations of research results;
and to publish regularly with the force of law or decrees the backward production technology and equipment that must be disbanded.

(3) The main principles of the industrial distribution policies: while continuing to display the advantages of economically developed
areas and accelerating their development, energetic efforts must be made to support the economic development of less developed regions
so as to gradually narrow the spread between the economically developed and less developed regions; the government supports the development
of industrial belts that can give full advantages of natural resources and economy and dedicate to the efficient division of labor
and cooperation among different regions.

It should gradually form rational distribution of industries along the seas, rivers, roads and borders, with large cities along the
transporting trunk lines as the centres to bring up the development of economic regions. The eastern coastal areas must make great
efforts to develop an export-oriented economy, with emphasis on industries and products that have high added values, are capable
of earning great foreign exchange, contain more technology and consume less energy and raw materials. More foreign funds and resources
should be used in order to achieve a sustainable and fast development and better efficiency of the economy. The central and western
regions should give full advantages of their resources and geographical locations as border areas to develop their own unique industries
and products. The State will gradually shift its policy biased toward regions to the policy biased toward industries in terms of
investment, loans, project distribution utilization of foreign capital and other related economic policies and give necessary support
to the major projects in the development and construction of the central and western parts of the country. The State should encourage
economically developed regions to engage in joint development, technical cooperation, partnership assistance and personnel exchange
with the less developed areas in the central and western parts of the country.

The government will make the best use of the situation to guide urbanizations toward a healthy development so as to form an urban
construction system with a good harmony in structure and rational distribution of large, medium-sized and small cities.

CHAPTER VII PROCEDURES FOR FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

Industrial policies include industrial structure policies, industrial organizational policies, industrial technology policies, industrial
distribution policies and other policies and laws and regulations that will have a great bearing on the industrial development. In
order to give the industrial policies a full scientific nature and authority and faciliate their implementation, the following provisions
are hereby made concerning the formulation and implementation of industrial policies:

(1) The State industrial policies shall be determined by the State Council and the formulated under the initial of the State Planning
Commission which is responsible for the study, formulation and coordination of the policies with the help of relevant departments.
The industrial policies with the help of relevant departments. The industrial policies thus formulated shall be carried out by departments
in charge of various industries and services under the coordination by the State Planning Commission.

(2) A system shall be created by State for the examination and review of the State industrial policies. The concrete industrial policies
and policies that will have a major influence on the industrial development drafted by relevant departments shall be examined and
coordinated by the State Planning Commission and subject to scientific studies and democratic examination by relevant departments
under the State Council, industrial circles, academic circles and consumer groups organized by the State Planning Commission before
they are submitted by the State Planning Commission and relevant departments to the State Council for approval and published for
implementation.

(3) A system must be created to ensure the real implementation of the State industrial policies by various economic administration
departments of planning, finance, banks, taxation, domestic and foreign trade, tariffs, securities, industry and commerce and the
State property, which must coordinate with the State Planning Commission to formulate major procedures for the implementation of
the policies.

(4) A system must be created for the supervision, examination and assessment of the State industrial policies. The State Planning
Commission shall, together with relevant departments, undertake the work of supervision, examination and analysis on the execution
of the State industrial policies and report the results to the State Council regularly with proposals for amendment of the policies
in the light of the changes in the economic situation and industrial structure.

(5) Provincial level people’s governments shall, according to the requirements of the present outline, formulate detailed rules for
its implementation in the light of their actual circumstances and submit them to the State Planning Commission for the record.

(6) The government shall, in the near future, draft industrial policies for transport, telecommunications, construction, electronics,
machine building, petro-chemical industries and foreign investment, foreign trade, technology and industrial organizational readjustment.
The work shall be coordinated and organized by the State Planning Commission.

(7) The document shall be interpreted by the State Planning Commission.

The outline of the State industrial policies for the 1990s shall be implemented starting from the date of publication.

    





MEASURES FOR EXEMPTION FROM INSPECTION OF IMPORT AND EXPORT COMMODITIES

REGULATIONS ON THE PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-06-22 Effective Date  1990-08-01  


Regulations of the People’s Republic of China on the Prevention of Pollution Damage to the Marine Environment by Land-sourced Pollutants



(Adopted at the 61st Executive Meeting of the State Council on May 25,

1990, promulgated by Decree No.61 of the State Council of the People’s
Republic of China on June 22, 1990 and effective as of August 1, 1990)

    Article 1  These Regulations are formulated in accordance with the Marine
Environment Protection Law of the People’s Republic of China and for the
purposes of strengthening the supervision and administration of land pollution
sources and preventing pollution damage to the marine environment by
land-sourced pollutants.

    Article 2  “Land pollution sources” (hereinafter referred to as “land
sources”) mentioned in these Regulations refer to places or installations in
or by which to discharge pollutants from the land into the sea thereby causes
or may cause pollution damage to the marine environment.

    “Land-sourced pollutants” mentioned in these Regulations refer to
pollutants discharged from “land sources” stipulated in the preceding
paragraph.

    Article 3  These Regulations apply to all organizations and individuals
who discharge land-sourced pollutants into the sea within the territory of
the People’s Republic of China.

    With respect to the prevention of pollution damage to the marine
environment by ship scrapping, the Regulations on the Prevention of
Environmental Pollution by Ship Scrapping shall apply.

    Article 4  The environmental protection department under the State Council
shall be in charge of the prevention of pollution damage to the marine
environment by land-sourced pollutants of the whole country.

    The environmental protection departments of the coastal local people’s
governments at county level and above shall be in charge of the prevention of
pollution damage to the marine environment by land-sourced pollutants in their
respective administrative areas.

    Article 5  The discharge of land-sourced pollutants into the sea by any
organization or individual must be conducted in compliance with the standards
for discharge of pollutants and the relevant regulations promulgated by the
state or the localities.

    Article 6  Any organization or individual who has to discharge
land-sourced pollutants into the sea must report to and register with the
environmental protection department in the place where it or he is located
with respect to the pollutant discharging and treating facilities that it or
he possesses and the kind(s), quantity and density of the pollutants to be
discharged under normal operational conditions, and must provide with
materials regarding the prevention of pollution damage to the marine
environment by land-sourced pollutants. A copy of registrations and materials
mentioned above shall be sent to the administrative department of marine
affairs.

    If major changes have taken place in the kind(s), quantity and density of
the pollutants to be discharged, or pollutant treating facilities are
dismantled or left idle, prior approval shall be obtained from the
environmental protection department in the locality as well as the original
examining and approving department.

    Article 7  Any organization or individual discharging land-sourced
pollutants into the sea in excess of the national or local discharge standards
shall pay a fee for excessive discharge and shall assume responsibility for
eliminating and controlling the pollution.

    Article 8  No organization or individual may establish outlets for
discharging sewage within special marine reserves, marine sanctuaries,
seashore scenic and tourist areas, saltworks reserves, bathing beaches,
important fishing areas and other areas which need special protection.

    Those outlets already established within the areas stipulated in the
preceding paragraph, where the discharge of pollutants is in excess of the
national or local discharge standards, shall be improved within a prescribed
period of time.

    Article 9  If an enterprise or institution discharges land-sourced
pollutants into the sea and has thereby caused severe environmental pollution,
it shall be required to eliminate and control the pollution within a
prescribed period of time.

    Article 10  For enterprises and institutions directly under the
jurisdiction of a department under the State Council or a people’s government
of a province, an autonomous region, or a municipality directly under the
central government, the proposal for a deadline for the elimination or control
of pollution shall be made by the environmental protection department of the
people’s government of the province, autonomous region, or municipality
directly under the central government, and shall be reported to the people’s
government at the same level for the decision. For enterprises and
institutions under the jurisdiction of a people’s government at city or county
level or below, such proposal shall be made by the environmental protection
department of the people’s government of the city or county, and shall be
reported to the people’s government at the same level. Such enterprises and
institutions shall accomplish the elimination or control of pollution within
the prescribed period of time.

    Article 11  It is prohibited to pile up, discard, or dispose of solid
wastes along seashores and beaches without approval. If it is really necessary
to pile up or dispose of solid wastes for the time being, a written
application shall be submitted according to the examining and approving
procedures stipulated by the environmental protection departments of the
coastal provinces, autonomous regions, and municipalities directly under the
central government. The application shall mainly include the following
contents:

    (1) the name and address of the applicant;

    (2) the place and covering area of solid wastes to be piled up and
disposed of;

    (3) the types and composition of solid wastes, amount of solid wastes to
be piled up and disposed of per year, total amount of solid wastes to be
stockpiled up and disposed of and the height of solid wastes to be piled up;

    (4) the time of period within which to pile up and dispose of solid wastes
and final means of disposal of them;

    (5) the pollution damage to the marine environment possibly caused by
piling up and disposing of solid wastes;

    (6) technology and measures for preventing the marine environment from
pollution damage caused by piling up and disposing of solid wastes; and

    (7) other matters required to be explained by the examining and approving
organ.

    The environmental protection department of the local people’s government
at county level or above shall order the completion of the examining and
approving procedures within a time limit for those existing sites in which
solid wastes are temporarily piled up and disposed of without its approval.

    Article 12  Any organization or individual who has been approved to set up
waste yards and treatment facilities shall build dikes and facilities against
raising dust and leakage of wastes. Prior to their use, the dikes and
facilities shall pass the inspection by the environmental protection
department that approved the establishment of the waste yards and treatment
facilities.

    It is prohibited to pile up and discard wastes of other types which have
not been approved in the waste yards and treatment facilities which have been
used with approval. It is prohibited to pile up wastes containing hypertoxic,
radioactive, soluble or volatile substance out of doors. Piling up not out of
doors shall not be carried out as final means of disposal of the
above-mentioned wastes.

    Article 13  It is prohibited to discharge toxic and harmful waste water
along seashores and beaches by improper means of dilution or permeation.

    Article 14  It is prohibited to discharge waste water containing
high-level or meddle-level radioactive substance into the sea.

    Any discharge of waste water containing low-level radioactive substance
into the sea shall be carried out in strict compliance with the state
provisions and standards concerning radioactive protection.

    Article 15  It is prohibited to discharge oils, acid liquid, alkaline
liquid or toxic liquid into the sea.

    No oil-polluted water, waste water containing harmful heavy metals or
industrial waste water of other types may be discharged into the sea before it
has been properly treated and conforms to the standards for discharge of
pollutants and the relevant regulations stipulated by the state or the
localities. Residual dregs after treatment shall not be cast off into the sea.

    Article 16  No waste water carrying pathogens may be discharged into the
sea before it has been properly treated and conforms to the standards for
discharge of pollutants and the relevant regulations stipulated by the state
or the localities.

    Article 17  In case of the discharge of heated waste water into the sea,
the water temperature shall be in compliance with the relevant provisions of
the state.

    Article 18  The discharge of industrial waste water and domestic sewage
containing organic and nutrient substance into sea areas with low capacities
of self-purification shall be controlled in scale. The outlets for discharging
sewage shall be set up in sea areas suitable for current exchange and rational
means of discharge shall be carried out to prevent eutrophication of the sea
water.

    Article 19  It is prohibited to discard medicines and medical instruments
having lost efficacy or use of which is prohibited along seashores and
beaches.

    Article 20  The environmental protection departments of provinces,
autonomous regions and municipalities directly under the central government in
the estuaries shall be in charge of the investigation and dealing with of
accidents of pollution damage to the marine environment by land-sourced
pollutants which occur in the estuaries and are conclusively proved to be
caused by river waters carrying pollutants. If the river flows across
different provinces, autonomous regions or municipalities directly under the
central government, the environmental protection department and the water
conservancy department of the people’s government at provincial, autonomous
regional and municipal level in the entuary shall cooperate with the
environmental protection department and water conservancy department of the
people’s government of involved provinces, autonomous regions and
municipalities and the river basin administrative department in investigating
and dealing with the accident.

    Article 21  With respect to those coastal regions adjacent or opposite to
one another discharging land-sourced pollutants into the same sea area, the
relevant local people’s governments shall jointly formulate measures for the
prevention of pollution damage to the marine environment by land-sourced
pollutants.

    Article 22  Any organization or individual who causes an accident of
pollution damage to the marine environment by land-sourced pollutants shall
promptly take measures to deal with the accident and shall, within 48 hours
after the happening of the accident, report to the environmental protect
department of the local people’s government on the time, place, type of the
accident, the amount of pollutants discharged, economic losses, victims and
other preliminary information and a copy of the preliminary report shall be
sent to each of the relevant departments. Upon the investigation of the
accident, a written report accompanied with relevant documentary evidence
shall be sent to the environmental protection department of the local people’s
government.

    The environmental protection department of the people’s government at
various levels shall, upon the receipt of the preliminary report on a accident
of pollution damage to the marine environment by land-sourced pollutants, take
measures promptly in consultation with the relevant departments to eliminate
or reduce the pollution. The accident shall be investigated and dealt with by
the environmental protection department of the people’s government at county
level or above together with the relevant departments, or by a department
authorized by the environmental protection department of the people’s
government at county level or above itself.

    Article 23  The environmental protection department of the people’s
government at county level or above together with the department in charge of
the project shall, according to its scope of powers to project administration,
conduct an on-the-spot inspection of the organization or individual
discharging land-sourced pollutants. The inspection receiver shall truthfully
report information and provide materials and the inspectors shall be
responsible for keeping technical and business secrets for the inspection
receiver. If otherwise provided for in the laws and regulations, the
provisions stipulated above in this article shall not apply.

    Article 24  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 300 yuan but not more than
3,000 yuan.

    (1) refusing to report or falsely reporting on registrations for discharge
of pollutants; or

    (2) refusing or obstructing the environmental protection department that
is conducting an on-the-spot inspection, or practising fraud in the
on-the-spot inspection.

    Article 25  Where anyone forces in use facilities against pollution set up
in waste yards and treatment facilities which have not been inspected and
accepted by the environmental protection department or have not passed the
inspection, the environmental protection department shall order the correction
and may concurrently fine an amount of not less than 5,000 yuan but not more
than 20,000 yuan.

    Article 26  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 5,000 yuan but not more than
100,000 yuan.

    (1) changing the kind(s) of pollutants to be discharged, or increasing the
quantity and density or dismantling or leaving idle pollutant treating
facilities without the approval of the environmental protection department in
the locality and the original examining and approving department; or

    (2) establishing outlets for discharging sewage within the areas
stipulated in the first paragraph of Article 8 of these Regulations.

    Article 27  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 1,000 yuan but not more than
20,000 yuan; if the circumstances are serious, a fine of not less than 20,000
yuan but not more than 100,000 yuan may be imposed upon.

    (1) discharging toxic and harmful waste water along seashores and beaches
by improper means of dilution or permeation;

    (2) discharging waste water containing high-level or meddle-level
radioactive substance into the sea;

    (3) discharging oils, acid liquid, alkaline liquid or toxic liquid into
the sea;

    (4) discarding medicines and medical instruments having lost efficacy or
use of which is prohibited along seashores and beaches;

    (5) failing to comply with the standards for discharge of pollutants and
the relevant regulations stipulated by the state or the localities when
discharging oil-polluted water, waste water carrying pathogens, heated waste
water, waste water containing low-level radioactive substance, waste water
containing harmful heavy metals or industrial waste water of other types into
the sea, or casting off residual dregs after treatment into the sea; or

    (6) without the approval of the environmental protection department of the
local people’s government at county level or above, piling up, discarding, or
disposing of solid wastes along seashores and beaches, or piling up and
disposing of wastes of other types which have not been approved in the waste
yards and treatment facilities, or piling up wastes containing hypertoxic,
radioactive, soluble or volatile substance out of doors.

    Article 28  Where an enterprise or institution fail to eliminate and
control the pollution within a time limit as stipulated, it shall pay an
amount of two times the fee for excessive discharge, and may be concurrently
fined an amount of not less than 10,000 yuan but not more than 100,000 yuan
according to the seriousness of damage and loss, or be ordered the suspension
of business or closing down.

    The environmental protection department shall decide on a fine. The
people’s government that decides on a deadline for the elimination and control
of pollution shall decide on the suspension of business or closing down; the
suspension of business or closing down of an enterprise or institution
directly under the jurisdiction of a department under the State Council shall
be subject to the approval of the State Council.

    Article 29  Where anyone fails to pay the fee for excessive discharge
according to the provisions, the environmental protection department of the
people’s government at county level or above shall, in addition to recovering
the fee and a late payment fine, impose a fine of not less than 1,000 yuan but
not more than 10,000 yuan.

    Article 30  Where anyone causes an accident of pollution damage to the
marine environment by land-sourced pollutants and has thereby caused major
economic losses, the environmental protection department of the people’s
government at county level or above shall impose a fine of an amount of
percent 30 of the direct losses but not exceeding a maximum of 200,000 yuan.

    Article 31  The environmental protection department of the people’s
government at county level may decide on a fine of not more than 10,000 yuan
and shall report a fine exceeding 10,000 yuan to the higher level’s
environmental protection department for an approval.

    The environmental protection department of the people’s government at the
level analogous to a city directly under a provincial government may decide on
a fine of not more than 50,000 yuan and shall report a fine exceeding 50,000
yuan to the higher level’s environmental protection department for an approval.

    The environmental protection department of the people’s government at the
level of province, autonomous region and municipality directly under the
central government may decide on a fine of not more than 200,000 yuan.

    All fines shall be handed over to the national treasury and neither
organization nor individual may retain or divide them up.

    Article 32  An organization or individual who has paid a fee for excessive
discharge or has been imposed upon a fine shall not exempted from
responsibilities for eliminating pollution, removing damage and compensation.

    Article 33  If a party involved does not agree with a decision on
administrative penalty, he may, within 15 days as from the date of receiving
the notification on the penalty, apply for reconsideration according to law;
if he does not agree with the decision of consideration, he may, within 15
days as from the date of receiving the decision of consideration, bring a
lawsuit before a people’s court. A party may directly bring a lawsuit before a
people’s court within 15 days as from the date of receiving the notification
on the penalty. If, upon the expiration of the period, the party has not
applied for reconsideration or has neither brought a lawsuit before a people’s
lawsuit nor performed the decision on penalty, the department that imposed the
penalty shall apply to the people’s court for compulsory enforcement.

    Article 34  Where a staff member of the environmental protection
department abuses his powers, neglects his duties or engages in malpractice
for his personal interests, the department to which he belongs or the higher
level’s department shall impose disciplinary sanction upon him; if a crime has
been constituted, he shall be investigated for criminal responsibility
according to law.

    Article 35  The people’s governments of the coastal provinces, autonomous
regions and municipalities directly under the central government may
formulated measures for the implementation in accordance with these
Regulations.

    Article 36  The environmental protection department under the State
Council shall be responsible for the interpretation of these Regulations.

    Article 37  These Regulations shall come into force as of August 1, 1990.





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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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