RULES FOR THE IMPLEMENTATION OF THE POSTAL LAW

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

    Article 2  The Ministry of Post and Telecommunications of the People’s
Republic of China (hereinafter referred to as the Ministry of Post and
Telecommunications) shall be the competent department of postal services under
the State Council and shall administer postal services throughout the country.

    The administrative bureaus of post and telecommunications of various
provinces, autonomous regions, and municipalities directly under the Central
Government (hereinafter referred to as the administrative bureaus of post and
telecommunications) shall be the regional administrative organs of postal
services, which shall administer postal services of respective regions.

    Article 3  The municipality or county bureaus of post and
telecommunications (including the post offices, – the same below) shall be
public enterprises owned by the whole people that operate postal business
(hereinafter referred to as “Postal enterprises”), and, after being
authorized by the administrative bureaus of post and telecommunications, shall
be responsible for the administration of postal services of the respective
localities.

    The branch post and telecommunications bureaus, the post and
telecommunications offices, the branch post bureaus, and the postal offices
shall be the branch offices that handle postal business (hereinafter referred
to as “the branch office”); the postal kiosks and newspaper and periodical
stands shall be the service points of postal enterprises.

    The post and telecommunications agencies shall be considered as branch
offices of postal enterprises.

    Article 4  Without the entrustment by the postal enterprises, no unit or
individual may operate posting and delivery of letters, postcards or other
articles with characteristics of mail, except as otherwise provided by the
State Council.

    The letters refer to those carriers which transmit information by using
sealed envelopes. The other articles with characteristics of mail refer to
those carriers which transmit information by using such forms as symbols,
images, or sounds. The specific contents thereof shall be stipulated by the
Ministry of Post and Telecommunications.

    Article 5  In case that a postal enterprise entrusts other units or
individuals with the handling of postal business, they shall reach an
agreement through consultation and sign entrustment contracts.

    Article 6  All units and individuals that make use of the postal services
of China shall be generally called postal users (hereinafter referred to as
users).

    Article 7  A postal enterprise shall provide users with fast, accurate,
safe and convenient postal services, and protect the lawful rights and
interests of users in making use of postal services.

    Any unit or individual shall have the obligations to protect freedom and
privacy of correspondence, and the safety of postal materials; no unit or
individual may use postal services for activities forbidden by laws,
regulations and policies.

    In the course of transportation and delivery of postal materials, no unit
or individual shall inspect or detain the postal materials under any pretext,
except when the inspectation of correspondence according to law by public
security organs, state security organs, or procuratorial organs is necessary
for the state security or the investigation of criminal offences.

    Article 8  In the event that a public security organ, a state security
organ, or a procuratorial organ inspects or detains postal materials or
freezes remittances or savings deposits out of the necessity for the state
security or the investigation of a criminal offence, it is imperative for the
aforesaid organs to issue according to law notifications of the relevant
inspection, detention, or freezing to the postal enterprise or the
administrative bureau of post and telecommunications concerned at or above the
county level, and to make out a list of the specific items of postal
materials, remittances, or savings deposits; after going through the
procedures for inspection, detention or freezing, the postal enterprise shall
appoint specially-designated persons to be responsible for sorting out the
items in question, register them one by one, and then go through the hand-over
procedures; with respect to those postal materials, remittances or savings
deposits which need no further inspection, detention or freezing, or which
have been proved through investigation to have nothing to do with the case
concerned, they shall be returned to the postal enterprise without delay. In
case that in the course of inspection, detention or freezing the postal
materials, remittances or savings deposits are lost or damaged, the relevant
public security, state security, or procuratorial organ shall be responsible
for compensation.

    Article 9  In case that a people’s court, or a procuratorial organ
confiscates domestic postal materials, remittances or savings deposits, it
must present relevant legal documents, and go through the relevant procedures
with the postal enterprise and administrative bureau of post and
telecommunications at or above the county level. The decision on the
confiscation of incoming or outgoing international postal articles shall be
made by the Customs, which shall also complete the relevant procedures.

    Article 10  In case that a unit concerned has the necessity to collect or
obtain evidence or consult the postal business archives, according to law,
it must obtain a written certificate issued by the public security organ, the
state security organ, the procuratorial organ, or the people’s court, in the
place where the postal enterprise concerned is 1ocated, make a list of the
specific items of postal materials, and then go through the relevant
procedures with the postal enterprise and the administrative bureau of post
and telecommunications at or above the county level.

    Article 11  No unit or individual may commit the following acts that
hamper the normal operations of postal services:

    (1) to damage postal installations;

    (2) to set up stalls or to stack up things in front of the entrance to, or
in the in-and-out passage ways of postal enterprises or their branch offices,
thereby hampering users to make use of postal services or blocking the passage
of postal vehicles;

    (3) to make trouble willfully or disturb the normal order at the sites
where postal business is conducted;

    (4) to hamper postal staff from executing their duties according to law,
or to seek a quarrel;

    (5) to intercept postal means of transport, to hamper illegally the
transportation and delivery of postal materials, or force their way to get on
postal means of transport;

    (6) to inspect or detain postal materials illegally;

    Article 12  The standards for the establishment of postal enterprises and
their branch offices shall be stipulated by the Ministry of Post and
Telecommnunications; the establishment and abolition of post enterprises shall
be approved by the Ministry of Post and Telecommunications; the establishment
and abolition of branch offices shall be approved by the administrative
bureaus of post and telecommunications and be reported to the Ministry of Post
and Telecommunications for the record.

    Article 13  The local people’s governments at various levels shall
incorporate the establishment of postal enterprises and their branch offices
as well as the construction of various postal installations into their urban
and rural construction plans.

    Article 14  While constructing new districts in cities, isolated
industrial and mining areas and residential districts, as well as transforming
large expanse of old urban districts, the planning and establishment of the
matching postal enterprises and their branch offices as well as the various
postal installations shall be carried out simultaneously.

    Article 15  When postal enterprises establish postal kiosks, newspaper and
periodical stands, pillar boxes, mail boxes or conduct mobile services
according to law, the units and individuals concerned shall provide
conveniences.

    Article 16  Letter and newspaper boxes for receiving postal materials are
the matching facilities in residential buildings, and designing units shall
include them in the standard designs of the construction of residential
buildings.

    Every construction unit of a residential building shall be installed, on
the ground floor, with letter and newspaper boxes corresponding to the room
numbers of the residents; or letter and newspaper boxes shall be installed in
a place or room with easy access in the midst of buildings, for the residents
to receive postal materials.

    The property right owners of residential buildings, or the administrative
units shall be responsible for the maintenance and change of letter and
newspaper boxes; the maintenance and change of letter and newspaper boxes may
also entrusted to the local postal enterprises or their branch offices, and
the expenses necessary for labour and materials shall be paid by the
entrusting units.

    Article 17  Places for handling postal business, conveniently accessible
to passengers, shall be provided in relatively larger railway stations,
airports, ports and hotels; the postal enterprises shall provide various
postal services.

    Article 19  Postal enterprises shall handle the posting and delivery of
domestic and international postal materials as well as the express delivery of
postal materials.

    Domestic postal materials refer to the postal materials exchanged within
the territory of the People’s Republic of China; those posted to or from the
regions of Hong Kong, Macao, and Taiwan are called postal materials of the
regions of Hong Kong, Macao and Taiwan; international postal materials refer
to the postal materials exchanged between the People’s Republic of China and
other countries or regions, and postal materials transmitted by way of the
territory of China.

    Article 20  Distribution business of domestic newspapers and magazines
refers to the business of distributing newspapers and magazines entrusted by
newspaper and magazine offices to the postal enterprises.

    Article 21  When newspaper and magazine offices entrust the postal
enterprises with the distribution of newspapers and magazines, they shall, in
accordance with the scope of the distribution of newspapers and magazines,
present to the appointed postal enterprises or the bureaus for distribution of
postal newspapers and magazines, certifications of having obtanied the
approval for publication by the competent department concerned and the
registration certificate for newspapers and periodicals. The postal
enterprises, which have the capacity for handling distribution business, shall
sign contracts for the distribution of newspapers and magazines with the
newspaper and magazine offices concerned in accordancc with the pertinent
provisions of the State, and in conformity with the principles of equality and
mutual benefit, of achieving unanimity through consultation, and of equal
prices and non-gratuitousness.

    Article 22  Postal savings and postal remittances, which are financial
businesses handled by postal enterprises for the purpose of accumulating funds
for the State and facilitating economic transactions, shall be under the
unified administration of the Ministry of Post and Telecommunications and
shall, in accordance with the pertinent provisions of the State, accept the
guidance of the People’s Bank of China in financial businesses. All relevant
banks shall provide conveniences for the businesses of postal savings and
postal remittances conducted by the postal enterprises.

    Article 24  The basic postal rates of postal services refer to the postal
rates for the domestic ordinary letters and postcards; the non-basic postal
rates refer to the postal rates of postal services other than the basic postal
rates.

    The basic postal rates of postal services shall be stipulated by the
competent department for the administration of commodity prices under thc
State Council, and then be submitted to the State Council for approval; the
non-basic postal rates shall be stipulated by the Ministry of Post and
Telecommunications.

    Article 25  The basis for the formulation and adjustment of postal rates
of postal services shall be follows:

    (1) to meet the social needs, on the condition that the cost expenses of
enterprises of postal correspondence and their capacity for development are
guaranteed;

    (2) to adjust postal rates of domestic postal services in the light of the
changes in defrayment;

    (3) to adjust postal rates of international postal sevices in accordance
with the provisions of the Universal Postal Union, the international and
domestic cost expenses, and the changes in exchange rates for Renminbi (RMB).

    Article 26  Postage certificates issued by the Ministry of Post and
Telecommunications and used as securities indicating that the charges or fees
for postal materials have already been paid shall include postage stamps, the
postage stamp patterns printed on stamped envelopes, stamped postcards,
stamped aerograms, and the “postage-paid” marking printed with a checking
machine.

    Article 27  The international reply-coupons issued by the Universal Postal
Union may, in accordance with the international unified provisions, be
converted into postage stamps equal to a specific category of postal rates for
a specific class of weight; however, such international reply-coupons shall
not be converted into cash.

    Article 28  Where the making of facsimiles of stamp patterns is
necessitated by work, it must be submitted, in accordance with the pertinent
provisions for the making of facsimiles of postage stamp patterns, to the
competent department for postage stamps under the Ministry of Post and
Telecommunications, or to the administrative bureau of post and
telecommunications concerned, for examination and approval.

    No printing unit may undertake the printing of unapproved facsimiles of
stamp patterns or matters similar to postage stamps.

    Article 29  Envelopes to be printed for use in correspondence must conform
to the standards stipulated by the State, and the printing of such envelopes
shall be supervised by the local administrative bureaus of post and
telecommunications.

    Article 30  Postcards to be printed must conform with the specification
standards stipulated by the Ministry of Post and Telecommunications.

    Article 31  Ordinary letters to be sent by compulsory service-men from
places where they are stationed shall be posted and delivered free of charge,
but other armymen shall not post letters free of charge. Measures for the
administration of affairs concerning the posting and delivery of ordinary
letters by compulsory service-men shall be formulated by the Ministry of Post
and Telecommunications in conjunction with the department concerned of the
Chinese People’s Liberation Army.

    Article 32  Users shall, in handling in or posting postal materials,
comply with the provisions stipulated by the Ministry of Post and
Telecommunications concerning the contents of postal materials, the
specifications for packaging and sealing, the writing forms, and the correct
writing of postcodes; especially the envelopes used by users for letters to be
posted must meet the standards stipulated by the State; the surface or cover
of postal materials and also the vouchers of postal services shall not be
printed (written) or stuck with any words or any other objects which have
nothing to do with the postal materials; the facade of postage certificates
shall not be smeared, or covered with any other objects; no forged,
facsimiled, cut and pieced together, or processed for decontamination postal
certificates may be used.

    Article 33  It shall be forbidden to post and deliver or to insert in
postal materials the following objects:

    (1) articles forbidden by law to be put in circulation or to be posted and
delivered;

    (2) reactionary newspapers, magazines, and propaganda materials, or
pornographic articles;

    (3) explosive, combustible, corrosive, radioactive, poisonous, or any
other dangerous articles;

    (4) articles that are harmful to public sanitation;

    (5) perishables;

    (6) various species of live animals;

    (7) various currencies;

    (8) articles that are not fit for delivery by post;

    (9) articles that are not properly packed so that they might jeopardize
personal safety, or contaminate or damage other postal materials or equipment.

    The articles mentioned in the preceding paragraph, which meet the
provisions of the Ministry of Post and Telecommunications for delivery with
special approval, may be accepted and posted on the condition that safety is
guaranteed.

    Article 34  Articles to be posted and delivered in the country with
restricted quantities shall be stipulated by the Ministry of Post and
Telecommunications in conjunction with the departments concerned under the
State Council.

    Article 35  With respect to articles posted or delivered in violation of
the pertinent provisions for forbidding or restricting their posting and
delivery, the postal enterprises or their branch offices shall, in accordance
with their categories, natures, or quantities, handle them respectively in the
following ways:

    (1) to withdraw the articles in question from delivery;

    (2) to notify the sender to take back the articles within a prescribed
period of time, and, if the sender fails to do so when the prescribed time
limit expires, the said articles shall be disposed of right on the spot;

    (3) to transfer the articles to the department concerned to be disposed of
according to law;

    (4) with respect to articles which have jeopardized personal safety, or
have contaminated or damaged other postal materials, the sender shall hold the
liability for compensation.

    The expenses entailed from the handling of the cases mentioned in items
(2) and (3) in the preceding paragraph shall be borne by the sender.

    Article 36  With respect to newly-established enterprises or institutions,
or newly-built residential buildings, the units concerned or the competent
departments of residential buildings shall go through the registration
procedures for the delivery of postal materials with the local postal
enterprises or their branch offices; in the event that a unit is to change its
name, or a recipient is to change his/her address, it/he/she shall notify the
local postal enterprise or its branch office of the change in advance, or go
through the procedures for the change to a new address of the recipient. The
postal enterprise shall make known to the public the place for registration
and the telephone number.

    The postal enterprises concerned or their branch offices shall permit
units or individuals with following the conditions to go through the
procedures for registration, and shall within 90 days from the date of
registration, make arrangements for delivery:

    (1) possessing the conditions for passage of postal vehicles and postal
staff to execute their duties;

    (2) having the house numbers arranged in a unified way by the public
security organs;

    (3) having installed letter and newspaper boxes or having set up offices
for incoming and outgoing mail; or

    (4) having completed due formalities where procedures for registration of
both the Chinese and foreign names are required according to relevant
regulations.

    Article 37  Postal materials shall be delivered in the following ways,
except as otherwise provided by the Ministry of Post and Telecommunications:

    (1) delivery by address:

    Postal materials of urban and rural residents shall be delivered in
accordance with the addresses of the recipients to the mailboxes or to the
offices for incoming and outgoing mail installed at the entrances to the
courtyards of single-storey houses or on the ground floors of the storeyed
buildings. Postal materials of units, of the affiliated institutions to the
units and individuals of the units, as well as of users living in the
dormitories within the courtyards shall be delivered to the offices for
incoming and outgoing mail of the units. The office for incoming and outgoing
mail shall be set up on the ground floor of storeyed building; if two or more
separate units share a same place, they shall decide through consultation on a
single site for receiving postal materials in a unified way. If it is necessary
to deliver postal materials and newspapers and magazines upstairs, the users
shall consult with the postal enterprise concerned or its branch office, and,
in accordance with pertinent provisions, pay charges for such special services.

    Postal materials of the rural and pastoral areas shall, in the light of
specific conditions of communications and the quantities of postal materials,
be delivered generally to a fixed place at a township or an administrative
village; with respect to postal materials of places under a township or an
administrative village, the people’s government of the township or the
villagers committee shall consult with the postal enterprise concerned or its
branch office to find a proper way of delivering postal materials to the
recipients.

    Postal materials to be delivered to vessels shall be delivered to the
office for incoming and outgoing mail of a department to which the said
vessels are subordinate.

    (2) collection by users:

    Postal materials that must be collected by going through the procedures
with the postal enterprise or its branch office by presenting the written
notice for receiving them, postal materials addressed to the number of a post
office box (a mailbox used exclusively by a particular user), postal materials
deposited at the post office for collection, postal materials which have
exceeded the prescribed weight for delivery by address and postal materials in
a large quantity shall be collected by users.

    Article 38  In case that recipients receive vouchered postal materials, or
remittees receive remittances, they shall present their valid certifying
documents to the postal enterprise concerned or to its branch office, and
shall also affix their seals to, or sign their names on, the relevant vouchers.

    In case that an acting recipient is entrusted, by a recipient (or by a
remittee), with the receiving of vouchered postal materials (or remittances),
the said acting recipient shall present the valid certifying documents of the
recipient (or the remittee) and of the acting recipient; and, after the postal
enterprise, or its branch office, has verified and confirmed the documents,
the acting recipient shall receive the postal materials (or remittances) by
affixing his/her seal to, or signing his/her name on, the relevant voucher.

    The valid certifying documents shall include the resident’s identification
card, the residence booklet, and the employee’s card.

    Article 39  In the event that a recipient, in receiving vouchered postal
materials, has discovered that the wrapper (of postal materials) has been torn
or damaged, he/she shall announce this on the spot and check the contents. If
the shortage or danmage of the contents has been definitely caused by the
negligence of the postal enterprise or its branch office, or if the negligence
of the postal enterprise or its branch office has caused the loss or damage of
vouchered postal materials, the postal enterprise or its branch office shall
make compensation in accordance with the pertinent provisions. In the event
that the loss, damage of postal matters or shortage of contents has resulted
from the fault of the personnel in charge of the incoming and outgoing mail in
the recipient’s work unit, such personnel shall hold the prescribed liability
for compensation.                                    

    The specific requirements for the transportation and delivery of postal
materials shall be stipulated by the Ministry of Post and Telecommunications,
and shall be made known to the public. If the transportation and delivery of
postal materials have violated the provisions formulated by the Ministry of
Post and Telecommunications, the postal enterprise or its branch office
concerned shall make compensations to the users; and the specific measures
for making the compensation shall be stipulated by the Ministry of Post and
Telecommunications.

    Article 40&nb