Article 1 These Rules for the Implementation are formulated in accordance with the Law of the People’s Republic of China on Protection of Cultural Relics (hereinafter referred to as Law on Protection of Cultural Relics).
Article 2 The cultural relics such as sites related to revolutionary history, memorial buildings, sites of ancient culture, ancient tombs, ancient architectural structures, cave temples and stone carvings are classified into major sites to be protected for their historical and cultural value at the national level, sites to be protected for their historical and cultural value at the level of provinces, autonomous regions, municipalities directly under the Central Government and sites to be protected for their historical and cultural value at the level of counties, autonomous counties and cities.
Cultural relics such as memorial objects, works of art, handicraft articles, revolutionary documents, manuscripts, ancient or old books and materials, and typical material objects are classified into valuable cultural relics and ordinary cultural relics. Valuable cultural relics are classified into Grades One, Two, and Three.
Article 3 The State department for cultural administration in charge of the work concerning cultural relics throughout the country specified in Article 3 of the Law on Protection of Cultural Relics refers to the State Bureau of Cultural Relics. The State Bureau of Cultural Relics shall administer, supervise and guide the work concerning protection of cultural relics throughout the country according to law.
Local people’s governments at various levels shall place under their protection cultural relics in their respective administrative areas.
The organs for protection and control of cultural relics set up by the local people’s governments at the level of county and at various levels higher than it are the administrative departments of cultural relics; where there are no organs for protection and control of cultural relics, the departments for cultural administration are the administrative departments of cultural relics. The administrative departments of cultural relics at various levels administer the work concerning the cultural relics within their respective administrative areas.
Article 4 The public security organs, the administrative departments for industry and commerce, the departments in charge of urban and rural planning and the Customs at various levels shall, in accordance with the provisions of the Law on the Protection of Cultural Relics, and within their respective competence, see to it that the work concerning protection of cultural relics be well done.
Article 5 The operating expenses for cultural relics undertakings and the capital construction for cultural relics shall be listed in the respective financial budgets of the financial departments of the people’s governments at the level of county and at the various levels higher than it and administered in a unified manner by the administrative departments of cultural relics at the same level. The expenditure of capital construction for cultural relics, the expenses for repair and maintenance and the expenses for archaeological excavations shall be earmarked as special funds for such specified purposes only and be controlled strictly. All the incomes of the cultural relics institutions and enterprises which belong to the administrative departments of cultural relics at various levels shall be used for cultural relics undertakings only as supplementary funds for protection and control of cultural relics, and may not be used for any other purposes. Chapter II Sites to Be Protected for Their Historical and Cultural Value
Article 6 Sites to be protected for their historical and cultural value at different levels shall be approved and publicly announced in accordance with the procedures specified in Article 7 of the Law on Protection of Cultural Relics. Cultural relics which face under those listed in paragraph 1 of Article 7 of the Law on Protection of Cultural Relics but are not yet publicly announced as sites to be protected for their historical and cultural value shall be registered and protected by the people’s governments of the relevant counties, autonomous counties or cities.
Article 7 The protective scope of sites to be protected for their historical and cultural value at various levels shall, in accordance with the provisions of Article 9 of the Law on Protection of Cultural Relics, be delimited and signs and notices be put up within a year from the date of approval and announcement.
The protective scope of major sites to be protected for their historical and cultural value at the national level and sites to be protected for their historical and cultural value at the level of provinces, autonomous regions, and municipalities directly under the Central Government shall be delimited and announced by the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government.
The protective scope of sites to be protected for their historical and cultural value at the level of counties, autonomous counties and cities shall be delimited and announced by the people’s governments at the same level.
Article 8 The local people’s governments at the level of county or above shall prescribe the concrete protective measures for historical and cultural sites to be protected in accordance with the different needs for protection of cultural relics, and promulgate them for implementation.
The protective measures for major sites to be protected for their historical and cultural value at national level and at the level of provinces, autonomous regions and municipalities directly under the Central Government shall be prescribed by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.
The protective measures for the historical cultural sites to be protected at the level of counties, autonomous counties and cities shall be prescribed by the people’s governments of counties, autonomous counties and cities.
Article 9 Special administrative institutes for protection, such as preservation institutes of cultural relics or museums, may be set up for memorial buildings and ancient architectural structures owned by the State at the places designated as sites to be protected for their historical and cultural value by the administrative departments for cultural relics, the units which use them or their administrative departments at higher levels, and shall take charge of the protection. Where there are no special administrative institutes for protection, the relevant people’s governments at the levels of county or above shall instruct the units which use sites to be protected for their historical and cultural value or the relevant departments to take charge of the protection or invite guardians for the protection of cultural relics to take charge thereof.
Article 10 The units which use cultural relics listed in paragraph 1 in Article 7 of the Law on Protection of Cultural Relics shall set up mass protective organizations for cultural relics; where there are no using units, villager’s committees or resident’s committees nearby may set up mass protective organizations for cultural relics to protect the cultural relics. The administrative departments for cultural relics shall give guidance to such mass protective organizations in their activities.
Article 11 The opening of a site to be protected for its historical and cultural value to the public shall be in conformity with the requirements prescribed by the State Bureau of Cultural Relics and reported to the administrative department for cultural relics at the level corresponding the relic level for approval.
Article 12 On the basis of the actual needs for the protection of cultural relics, an area for the control of construction may be delimited and announced around a site to be protected for its historical and cultural value.
The area for the control of construction around a major site to be protected at the national level or a site to be protected at the level of province, autonomous region or municipality directly under the Central Government shall be delimited by the administrative department for cultural relics of the people’s government of the relevant province, autonomous region or municipality directly under the Central Government in conjunction with the departments for urban and rural planning and reported to the people’s government of the province, autonomous region or municipality directly under the Central Government for approval.
The area for the control of construction around a site to be protected at the level of county, autonomous county or city shall be delimited by the administrative department for cultural relics of the people’s government of the relevant county, autonomous county or city in conjunction with the departments for urban and rural planning and reported to the people’s government of the province, autonomous region or municipality directly under the Central Government for approval or to the people’s government of the county, autonomous county or city authorized by the people’s government of the province, autonomous region or municipality directly under the Central Government for approval.
Article 13 In an area for the control of construction, the installation of any device which endanger the safety of cultural relics or the construction of any building or structure of which the style, height, size and colour are out of harmony with the environmental features of historical and cultural site shall be impermissible.
The design for the construction of new buildings or structures in an area for the control of construction shall be, on the basis of the level of the site to be protected for its historical and cultural value, agreed to by the administrative department for cultural relics at the same level before it is submitted to the departments of urban and rural planning at that level for approval.
Article 14 Totally ruined cultural relics such as ruined memorial buildings and ancient architectural structures may not be reconstructed. Where the reconstruction of such sites is necessary at other places or at the original places owing to special needs, consent must be obtained from the original verifying and approving departments, according to the level of sites to be protected for their historical and cultural value.
Article 15 The repairing plans and the designing and working programs for the major sites to be protected for their historical and cultural value at the national level and those for the sites to be protected at the level of provinces, autonomous regions and municipalities directly under the Central Government, which the State Bureau of Cultural Relics deems it necessary to be examined and approved by the Bureau itself shall be examined and approved by the State Bureau of Cultural Relics.
The repairing plans and the designing and working programs for the sites to be protected at the level of provinces, autonomous regions, and municipalities directly under the Central Government and at the level of counties, autonomous counties and cities shall be examined and approved by the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.
The repair and protection projects for cultural relics shall be subjected to the supervision and guidance of the examining and approving department. The completion of the projects shall be reported to the same department for check and acceptance.
Article 16 The units for exploration and designing and the units of construction in charge of the repair and protection projects for cultural relics shall observe the relevant regulations of the State and ensure the quality of the projects.
Article 17 The concrete measures on control of the repair and protection projects for cultural relics shall be formulated by the State Bureau of Cultural Relics. Chapter III Archaeological Excavations
Article 18 A procedure of submitting applications for approval must be fulfilled for all archaeological excavations. The archaeological excavation units shall submit their respective archaeological excavation applications to the State Bureau of Cultural Relics through the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government or directly to the State Bureau of Cultural Relics for examination and approval in accordance with the provisions in Article 17 or Article 19 of the Law on Protection of Cultural Relics. The State Bureau of Cultural Relics, in approving the archaeological excavation plans directly submitted to it, shall solicit opinions from the administrative departments for cultural relics of the people’s governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government.
Article 19 The archaeological excavation units shall submit their archaeological excavation plans for each year to the State Bureau of Cultural Relics in the first quarter of the year. The archaeological excavation plans to be carried out in coordination with construction projects may be submitted to the State Bureau of Cultural Relics 30 days before the excavation.
In a case where the pressing time limit for the completion of a construction project or an imminent danger of natural damage requires urgent excavation, it is permissible to start with the approval of the administrative department for cultural relics of the people’s government of the relevant province, autonomous region or municipality directly under the Central Government and then submit a retroactive excavation plan within 15 days as of the date of the excavation.
Article 20 In the course of archaeological excavation, the archaeological excavation units and their staff members shall strictly abide by the rules of archaeological work and ensure the quality of excavation.
When submitting their applications for excavation, the archaeological excavation units shall set forth protective measures to ensure the security of cultural relics unearthed and the historical remains, and shall strictly carry out them while engaging in the work of excavation.
Article 21 The work concerning the investigation and prospecting of cultural relics to be carried out in coordination with a construction project shall be organized and conducted by the administrative department for cultural relics of the people’s government of the relevant province, autonomous region or municipality directly under the Central Government. The work with respect to the investigation and prospecting of cultural relics involving two or more provinces, autonomous regions and municipalities directly under the Central Government shall be jointly organized and conducted by the administrative departments for cultural relics of the people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government where the cultural relics are located or by the State Bureau of Cultural Relics.
Article 22 Where sites of ancient culture and ancient tombs are found during the construction and require timely excavation, the administrative department of the relevant province, autonomous region or municipality directly under the Central Government shall organize the forces to conduct the excavation without delay. The work concerning archaeological excavation within the scope of an especially important construction project or a construction project involving two or more provinces, autonomous regions and municipalities directly under the Central Government shall be organized and conducted by the State Bureau of Cultural Relics, and the construction shall not proceed until the completion of the excavation.
Article 23 In the course of an archaeological excavation engaged in coordination with a construction project, the building units and the construction units shall coorperate with the archaeological excavation units in protecting the security of the unearthed cultural relics or sites.
Article 24 The qualifications of an archaeological excavation unit or team|head in charge of an archaeological excavation item shall be examined and acknowledged by the State Bureau of Cultural Relics and a certificate shall be issued.
The qualifications of an archaeological prospecting unit or team|head in charge of an archaeological prospecting shall be examined and acknowledged by the administrative department for cultural relics of the people’s government of the relevant province, autonomous region or municipality directly under the Central Government and a certificate shall thereby be issued.
Article 25 Upon completion of an excavation, the archaeological excavation unit shall timely write out a report on the excavation and work out a list of the unearthed cultural relics.
The State Bureau of Cultural Relics or the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, on the basis of condition of protection and control and the actual needs, designate museums, libraries or other institutions under ownership by the whole people (hereinafter referred to as collection units of cultural relics under ownership by the whole people) to store up the cultural relics unearthed. An approval from the State Bureau of Cultural Relics or the administrative department for cultural relics of the people’s government of the relevant province, autonomous region or municipality directly under the Central Government is required, where an archaeological excavation unit has the need to keep cultural relics as specimens. Chapter IV Cultural Relics in the Collection of Cultural Institutions
Article 26 Cultural relics collected by the collection units of cultural relics under ownership of the whole people shall be registered with the relevant administrative department of cultural relics. The administrative departments for cultural relics of the people’s governments of counties, autonomous counties and cities shall report the files of the registered valuable cultural relics to the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government for the record. The files of Grade One cultural relics registered by the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall be reported to the State Bureau of Cultural Relics for the record. The specific measures shall be formulated by the State Bureau of Cultural Relics.
Article 27 The collection units of cultural relics under ownership by the whole people shall be equipped with the facilities and means needed to ensure the security of cultural relics, and shall set up files for the cultural relics according to the relevant regulations of the State and take care of the cultural relics according to their categories and grades.
Article 28 Where the collection units of cultural relics under ownership by the whole people are to reproduce or restore any collected Grade One cultural relics, they shall report to the State Bureau of Cultural Relics for approval.
Article 29 The administrative departments for cultural relics at higher levels may allocate, transfer or borrow the cultural relics controlled by the administrative departments for cultural relics at lower levels. The collection units of cultural relics under ownership by the whole people may exchange or borrow their collected cultural relics among them, with the approval of the relevant administrative departments for cultural relics.
The allocation, transfer, exchange and borrowing of Grade One cultural relics shall be submitted to the State Bureau of Cultural Relics for approval.
The allocation, transfer, exchange and borrowing of Grades Two and Three cultural relics and ordinary cultural relics shall be submitted to the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government for approval. Chapter V Cultural Relics in Private Collections
Article 30 Cultural relics in citizens’ private collections may be registered with the administrative departments for cultural relics. The administrative department for cultural relics and their staff members shall keep the cultural relics registered by the citizen secret.
Article 31 Citizens may ask the administrative department for cultural relics for technological advice and help concerning the expertise, preservation and restoration of cultural relics in their private collections.
Article 32 Cultural relics in private collections may be sold to collection units of cultural relics or purchasing units of cultural relics under ownership by the whole people designated by the State Bureau of Cultural Relics or by the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.
The State encourages citizens to contribute their cultural relics in private collections to collection units of cultural relics under ownership by the whole people.
Article 33 The business of purchase and sale of cultural relics to be conducted by cultural relics marketing units shall be approved by the State Bureau of Cultural Relics or the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government and be registered with the administrative departments for industry and commerce. The business of cultural relics sales to foreigners shall be transacted with approval of the State Bureau of Cultural Relics.
Article 34 The cultural relics marketing units shall record their business activities for eventual check and examination.
The valuable cultural relics purchased or preserved by cultural relics marketing units shall be reported to the administrative departments for cultural relics which have approved the cultural relics marketing business of such units for the record. Those belonging to Grade One cultural relics shall be reported to the State Bureau of Cultural Relics for the record.
The cultural relics to be sold by cultural relics marketing units shall be subjected to expertise in accordance with the relevant regulations of the State before the sale.
Article 35 Banks, smelteries, papermills and units for the recovery of old and waste materials, in sorting out cultural relics, shall receive the guidance of the administrative departments for cultural relics and shall well preserve the cultural relics sorted out and turn them over to the administrative departments for cultural relics as soon as possible.
Article 36 The prices of the cultural relics turned over to the administrative departments for cultural relics shall be reasonably assessed on the basis of the expenses paid by banks, smelteries, papermills or units for the recovery of old and waste materials on purchasing the said cultural relics plus a certain proportion of expenses for sorting them out. If the administrative departments for cultural relics which are to accept the turned over cultural relics have difficulty in paying the needed sum, the problem shall be solved by the administrative departments for cultural relics at higher levels.
Article 37 Cultural relics which are confiscated and recovered according to law by public security organs, administrative departments for industry and commerce and customs establishments in dealing with law|breaking or criminal activities, shall be turned over to administrative departments for cultural relics as soon as possible after the settlement of the cases according to the relevant regulations. The measures for turning over shall be formulated by the State Bureau of Cultural Relics in conjunction with the departments concerned.
Article 38 Cultural relics turned over shall be subjected to expertise by the administrative departments for cultural relics. Grade One cultural relics shall be reported to the State Bureau of Cultural Relics for the record by the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.
Article 39 The State Bureau of Cultural Relics or the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in accordance with the needs of the protection for cultural relics, designate qualified collection units of cultural relics under ownership by the whole people to store up the turned over cultural relics.
Banks that intend to keep sorted out coins and other kinds of currency of past ages for scientific research shall ask for agreement from the State Bureau of Cultural Relics or the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. Chapter VI Taking Cultural Relics out of China
Article 40 Cultural relics to be taken out of the country shall be subjected to expertise by the administrative departments for cultural relics of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government designated by the State Bureau of Cultural Relics. The expertizing standards for cultural relics leaving the country shall be formulated by the State Bureau of Cultural Relics.
Article 41 For those cultural relics that are permitted to be taken out of the country after expertise, certificates for such permit shall be granted by the expertizing departments. The Customs shall verify and release the cultural relics against the permit certificates and according to the relevant regulations of the State.
Article 42 Cultural relics in private collections to be taken out of the country by individuals which, after expertise, are not permitted to be taken out, shall be registered and then returned or purchased by the administrative departments for cultural relics or even requisitioned through purchase if necessary.
CHAPTER I GENERAL PROVISIONS CHAPTER II PLANTATION, PURCHASE AND ALLOCATION OF LEAF TOBACCO CHAPTER III PRODUCTION OF TOBACCO PRODUCTS
CHAPTER IV SALE AND TRANSPORTATION OF TOBACCO PRODUCTS CHAPTER V PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER ROD, CIGARETTE TOW
AND CIGARETTE MANUFACTURING EQUIPMENT CHAPTER VI IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNOLOGICAL CO-OPERATION CHAPTER
VII LEGAL RESPONSIBILITY CHAPTER VIII SUPPLEMENTARY PROVISIONS
Article 1 This Law is enacted with a view to exercising tobacco monopoly administration, organizing the production and management of tobacco
monopoly commodities in a planned way, improving the quality of tobacco products, safeguarding consumers’ interests and ensuring
the national revenue.
Article 2 As used in this Law, “tobacco monopoly commodities” refer to cigarettes, cigars, cut tobacco, redried leaf tobacco, leaf tobacco,
cigarette paper, filter rods, cigarette tow and cigarette manufacturing equipment.
Cigarettes, cigars, cut tobacco and redried leaf tobacco are generally referred to as tobacco products.
Article 3 The State shall, according to law, exercise monopoly administration over the production, sale, import and export of tobacco monopoly
commodities, and production sale, import and export of tobacco monopoly commodities, and practice a tobacco monopoly license system.
Article 4 The department of tobacco monopoly administration under the State Council shall be responsible for the nation-wide tobacco monopoly.
The departments of tobacco monopoly administration in the provinces, autonomous regions and municipalities directly under the Central
Government shall be responsible for the tobacco monopoly within the areas under their respective jurisdiction, and shall be under
the dual leadership of the department of tobacco monopoly administration under the State Council and the people’s governments of
the relevant provinces, autonomous regions and municipalities directly under the Central Government, with the leadership of the department
of tobacco monopoly administration under the State Council as the main leading authority.
Article 5 The State shall strengthen the scientific research and technical development of tobacco monopoly commodities, so as to improve the
quality of tobacco products and reduce the content of tar and other hazardous ingredients in such products.
The State and society shall intensify the publicity of and education in the fact that smoking is hazardous to health, forbid or restrict
smoking on public traffic vehicles and in public places, dissuade teen-agers and youngsters from smoking, and forbid primary school
pupils and middle school students from smoking.
Article 6 The State shall exercise administration of tobacco monopoly in national autonomous areas, and shall, according to the relevant provisions
of this Law and the Law on Regional National Autonomy, take the interests of national autonomous areas into account and give preferential
treatment to the plantation of leaf tobacco and the production of tobacco products in such areas.
CHAPTER II PLANTATION, PURCHASE AND ALLOCATION OF LEAF TOBACCO
Article 7 For the purpose of this Law, the term “leaf tobacco” means flue-cured tobacco and selected air- and sun-cured tobacco needed for
the production of tobacco products. The catalogue of selected air-and sun-cured tobacco items shall be determined by the department
of tobacco monopoly administration under the State Council.
Other air- and sun-cured tobacco items which are not included in the above mentioned catalogue may be sold at rural or urban trade
markets.
Article 8 In growing tobacco, good varieties of tobacco shall be cultivated and popularized in line with the local conditions. Good varieties
of tobacco shall, after examination and approval by the national or provincial tobacco evaluation committees, be supplied by local
tobacco companies.
Article 9 Leaf tobacco purchasing plans shall be assigned by the planning departments of the local people’s governments at or above the county
level on the basis of the plans assigned by the planning department under the State Council. No other organizations or individuals
shall make any modifications thereto.
Tobacco companies or their authorized agencies shall conclude leaf tobacco purchasing contracts with tobacco growers. Any leaf tobacco
purchasing contract shall specify the agreed area for leaf tobacco plantation.
The purchasing prices of leaf tobacco shall be set, on a grading basis, by the pricing authorities under the State Council in conjunction
with the department of tobacco monopoly administration under the State Council.
Article 10 A unified purchase of leaf tobacco shall be effected by tobacco companies or their authorized agencies in accordance with the standards
and prices set by the State. No other organizations or individuals may effect any leaf tobacco purchase.
Tobacco companies or their authorized agencies shall, after setting price on a grading basis and according to the State-prescribed
standards, purchase all the leaf tobacco grown by leaf tobacco growers within the plantation areas specified in the leaf tobacco
purchasing contracts. The grades and prices thereof shall not be forced down, and disputes arising from leaf tobacco purchasing shall
be dealt with properly.
Article 11 The plans for allocating leaf tobacco and redried leaf tobacco among the provinces, autonomous regions and municipalities directly
under the Central Government shall be assigned by the planning department under the State Council; the plans for allocating leaf
tobacco and redried leaf tobacco within areas under the jurisdiction of each province, autonomous region or municipality directly
under the Central Government shall be assigned by the planning department of the relevant province, autonomous region or municipality
directly under the Central Government. No other organizations or individuals may make any modifications thereto.
A contract must be concluded for any allocation of leaf tobacco or redried leaf tobacco.
CHAPTER III PRODUCTION OF TOBACCO PRODUCTS
Article 12 The establishment of an enterprise producing tobacco products shall be subject to the approval of the department of tobacco monopoly
administration under the State Council and the acquisition of a license for the tobacco monopoly production enterprise, and then
to the registration upon its examination and approval by the administrative department for industry and commerce; the split-up, merger
or dissolution of an enterprise producing tobacco products shall be subject to the approval of the department of tobacco monopoly
administration under the State Council and go through formalities for the change and cancellation of the registration with the administrative
department for industry and commerce. The administrative department for industry and commerces shall not approve and register an
enterprise that has not obtained a license for the tobacco monopoly production enterprise.
Article 13 Capital construction or technological innovation to be conducted by an enterprise producing tobacco products for expanding production
capacity shall be subject to the approval by the department of tobacco monopoly administration under the State Council.
Article 14 The total annual production plans for cigarettes and cigars of the provinces, autonomous regions and municipalities directly under
the Central Government shall be assigned by the planning department under the State Council. The total annual production plans for
cigarettes and cigars of an enterprise producing tobacco products shall be assigned by the department of tobacco monopoly administration
at the provincial level on the basis of the plans assigned by the planning department under the State Council and in light of the
marketing conditions. Local people’s governments shall not assign additional production quotas to an enterprise producing tobacco
products. If an enterprise producing tobacco products, in light of the marketing conditions, finds it necessary to manufacture cigarettes
and cigars exceeding the total annual production plans, it must obtain the approval of the department of tobacco monopoly administration
under the State Council.
The national tobacco company shall, on the basis of the total annual production plans set by the planning department under the State
Council, assign cigarette output targets with grading and classification specifications to the tobacco companies at the provincial
level, which shall, on the basis of the cigarette output targets with grading and classification specifications set by the national
tobacco company and in light of the marketing conditions, assign cigarette output targets with grading and classification specifications
to the enterprise producing tobacco products. An enterprise producing tobacco products may, in light of the marketing conditions,
make appropriate adjustments to the cigarette output targets with grading and classification specifications, within the scope of
the total annual production plans of the enterprise.
CHAPTER IV SALE AND TRANSPORTATION OF TOBACCO PRODUCTS
Article 15 Any enterprise which is to engage in the wholesale trade of tobacco products shall be subject to the approval of the department of
tobacco monopoly administration under the State Council or the department of tobacco monopoly administration at the provincial level,
and the acquisition of a license for the tobacco monopoly wholesale enterprise, and then to the approval and registration by the
administrative department for industry and commerce.
Article 16 Any enterprise or individual that is to engage in the retail trade of tobacco products shall be subject to the examination and approval
of, before the issuance of a license for tobacco monopoly retail trade by, the administrative department for industry and commerce
under the people’s government at the county level on the commission of the department of tobacco monopoly administration at the next
higher level. In areas where departments of tobacco monopoly administration at the county level have been set up, such departments
may, after their examination and approval, also issue tobacco monopoly retail licenses.
Article 17 The department of tobacco monopoly administration under the State Council shall, together with the pricing authorities under the
State Council, select on a grading basis cigarettes of certain brands as indicators. The prices of such indicators shall be set by
the pricing authorities under the State Council together with the department of tobacco monopoly administration under the State Council.
The prices of non-indicator cigarettes, of cigars and cut tobacco shall be fixed by the department of tobacco monopoly administration
under the State Council or by the departments of tobacco monopoly administration of the provinces, autonomous regions and municipalities
directly under the Central Government, as authorized by the department of tobacco monopoly administration under the State Council,
and shall be submitted for the record to the pricing authorities under the State Council or to the pricing authorities under the
people’s governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government.
Article 18 The State shall lay down the tar content grading standards for cigarettes and cigars. The packages of cigarettes and cigars shall
indicate the grade of tar content and that smoking is hazardous to your health.
Article 19 Advertising for tobacco products shall be banned on broadcasting stations, television stations, or in newspapers or periodicals.
Article 20 Applications must be made for the registration of trade marks of cigarettes, cigars and packed cut tobacco, which shall not be manufactured
and marketed before the trade mark is registered upon approval.
The production and sale of tobacco products with counterfeit trade marks shall be forbidden.
Article 21 Trade mark labels for tobacco products must be printed by enterprises designated by the administrative department for industry and
commerce at the provincial level. Non-designated enterprises may not print trade mark labels for tobacco products.
Article 22 Whoever consigns the transportation of tobacco monopoly commodities to others or undertakes the transportation thereof by himself
must hold a transportation permit signed and issued by the department of tobacco monopoly administration or its authorized agency;
consignees may not undertake the transportation for any consignor who does not hold a transportation permit.
Article 23 Whoever sends by post or brings from another place leaf tobacco or tobacco products shall not exceed the quantity limits prescribed
by the competent department under the State Council.
Article 24 Any individual who enters the territory of China shall not carry tobacco products more than the quantity limits prescribed by the
competent department under the State Council.
CHAPTER V PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER ROD, CIGARETTE TOW AND CIGARETTE MANUFACTURING EQUIPMENT
Article 25 Any enterprise which is to engage in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment
must apply to the department of tobacco monopoly administration under the State Council for approval and obtain a license for the
tobacco monopoly production enterprise.
As used in this Law, the term “cigarette manufacturing equipment” means a complete set of equipment for cigarette manufacturing.
Article 26 Any enterprise engaged in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment shall
organize production in accordance with the plans assigned by the department of tobacco monopoly administration under the State Council
and the order contracts concluded with the enterprises producing tobacco products.
Article 27 Any enterprise engaged in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment may
shall its products only to tobacco companies or enterprises producing tobacco products with the license for tobacco monopoly production
enterprises.
CHAPTER VI IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNOLOGICAL CO-OPERATION
Article 28 The department of tobacco monopoly administration under the State Council shall, in accordance with the relevant regulations of the
State Council, exercise control over tobacco industry’s import and export trade and its foreign economic and technological co-operation.
Article 29 Any enterprise engaged in the import and export of tobacco monopoly commodities, the consignment for sale of foreign tobacco products
or the purchase and sale of duty-free foreign tobacco products within a customs surveillance zone shall be subject to the approval
of the department of tobacco monopoly administration under the State Council or the department of tobacco monopoly administration
at the provincial level and must obtain a special license for the tobacco monopoly operation enterprise.
Any enterprise with a special license for the tobacco monopoly operation enterprise must, in accordance with the relevant regulations
of the department of tobacco monopoly administration under the State Council, submit to the department the plans and statements about
its purchases, sales and stock.
Article 30 Whoever, in violation of this Law, purchases leaf tobacco without authorization shall be fined by the department of tobacco monopoly
administration, and the leaf tobacco illegally purchased shall be repurchased by the said department at the price set by the State;
if the illegal purchase involves large quantities, the leaf tobacco purchased and the illegal income derived therefrom shall be confiscated.
Article 31 Whoever transports or consigns to others the transportation of tobacco monopoly commodities without a transportation permit, or in
excess of the quantity specified in the transportation permit, shall be fined by the department of tobacco monopoly administration,
and the tobacco monopoly commodities thus involved may be purchased by the said department at the price set by the State; if the
circumstances are serious, the tobacco monopoly commodities illegally transported and the illegal income derived therefrom shall
be confiscated.
A consignee who, knowing that the goods to be transported are tobacco monopoly commodities, undertakes the transportation thereof
for units or individuals that do not hold transportation permits, shall be confiscated of the illegal income derived therefrom by
the department of tobacco monopoly administration, with the concurrent punishment of a fine.
Whoever brings from another place leaf tobacco or tobacco products far in excess of the quantity limits prescribed by the State shall
be dealt with in accordance with the provisions of the first paragraph of this Article.
Article 32 Where an enterprise that does not hold a license for the tobacco monopoly production enterprise produces tobacco products, the department
of tobacco monopoly administration shall order it to close down, confiscate the illegal income derived therefrom and concurrently
impose a fine.
Where an enterprise that does not hold a license for the tobacco monopoly production enterprise produces cigarette paper, filter rods,
cigarette tow or cigarette manufacturing equipment, the department of tobacco monopoly administration shall order it to stop the
production of the said products, confiscate the illegal income derived therefrom and may concurrently impose a fine.
Article 33 Where an enterprise that does not hold a license for the tobacco monopoly wholesale enterprise engages in the wholesale trade of
tobacco products, the department of tobacco monopoly administration shall order it to close down or to stop the wholesale trade of
tobacco products, confiscate the illegal income derived therefrom and concurrently impose a fine.
Article 34 Where an enterprise that does not hold a special license for the tobacco monopoly operation enterprise engages in the import and
export of tobacco monopoly commodities, the consignment for sale of foreign tobacco products, or the purchase and sale of duty-free
foreign tobacco products, the department of tobacco monopoly administration shall order it to stop the aforesaid operations, confiscate
the illegal income derived therefrom and concurrently impose a fine.
Article 35 Where an enterprise or individual that does not hold a tobacco monopoly retail license engages in the retail sale of tobacco products,
the administrative department for industry and commerce shall order it or him/her to stop retail business, confiscate the illegal
income derived therefrom and concurrently impose a fine.
Article 36 Where an enterprise or individual produces or sells cigarettes, cigars or packed cut tobacco without registered trade marks, the
administrative department for industry and commerce shall order it or him/her to stop the production and sales thereof and shall
concurrently impose a fine. Where an enterprise or individual produces or sells tobacco products with counterfeit trade marks, the
administrative department for industry and commerce shall order it or him/her to stop the infringing act and to compensate the losses
of the infringed, and may concurrently impose a fine; if the infringement constitutes a crime, the offender’s criminal responsibility
shall be investigated according to law.
Article 37 Where an enterprise or individual, in violation of the provisions of Article 21 of this Law, illegally prints trade mark labels for
tobacco products, the administrative department for industry and commerce shall destroy the printed trade mark labels, confiscate
the illegal income derived therefrom and concurrently impose a fine.
Article 38 Where an enterprise or individual profiteers in tobacco monopoly commodities and the profiteering constitutes a crime of illicit
speculation, such profiteer’s criminal responsibility shall be investigated according to law; if the circumstances are not so serious
as to constitute a crime, the administrative department for industry and commerce shall confiscate the profiteered tobacco monopoly
commodities as well as the illegal income derived therefrom and may concurrently impose a fine.
Personnel of a department of tobacco monopoly administration or of a tobacco company, who, by taking advantage of their office, commit
the crime specified in the preceding paragraph, shall be subjected to heavier punishments according to law.
Article 39 Any enterprise or individual that forges or alters the licenses prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits, shall be investigated for criminal responsibility according
to law.
Any enterprise or individual that purchases or sells the licenses prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits, shall be investigated for criminal responsibility by applying
mutatis mutandis the provisions of Article 117 of the Criminal Law.
Personnel of a department of tobacco monopoly administration or of a tobacco company who, by taking advantage of their office, commit
the crimes specified in the preceding two paragraphs shall be subjected to heavier punishments according to law.
Article 40 Where the smuggling of tobacco monopoly commodities constitutes the crime of smuggling, the smuggler’s criminal responsibility shall
be investigated in accordance with the Supplementary Provisions Concerning the Punishment of the Crimes of Smuggling; if the smuggling
does not involve tobacco monopoly commodities in large quantities, thus not constituting the crime of smuggling, the smuggled commodities
and articles as well as the illegal income derived therefrom shall be confiscated by the Customs, and as a fine may concurrently
be imposed.
Personnel of a department of tobacco monopoly administration or of a tobacco company who, by taking advantage of their office, commit
the crime specified in the preceding paragraph shall be subjected to heavier punishments according to law.
Article 41 The department of tobacco monopoly administration shall have the right to carry out inspection on the implementation of this Law.
Whoever by means of violence or threat obstructs such inspectors from carrying out their duties according to law shall be investigated
for criminal responsibility according to law; whoever refuses or obstructs such inspectors from carrying out their duties according
to law, but without resorting to violence or threat, shall be punished by the public security organs in accordance with the Regulations
on the Administrative Penalties for Public Security.
Article 42 Personnel from a people’s court or a relevant department dealing with law breaking cases who share out the confiscated tobacco products
shall be investigated for criminal responsibility in accordance with the provisions of Article 1 and Article 2 of the Supplementary
Provisions Concerning the Punishment of the Crimes of Embezzlement and Bribery.
Personnel from a people’s court or a relevant department dealing with law breaking cases who purchase the confiscated tobacco products
shall be ordered to return the products and may be subjected to administrative sanctions.
Article 43 Personnel from the department of tobacco monopoly administration or from a tobacco company who abuse their power, seek personal interests
and commit malpractice or neglect their duties shall be subjected to administrative sanctions; if the circumstances are so serious
as to constitute a crime, the offender shall be investigated for criminal responsibility according to law.
Article 44 A party, if not satisfied with the decision on administrative sanctions made by the department of tobacco monopoly administration
or the administrative department for industry and commerce, may, within 15 days after receiving the notice about the decision on
punishment, apply for reconsideration to the authorities at the next higher level over the authorities that made the decision on
punishment; the party may also, within 15 days after receiving the notice about the decision on punishment, directly bring a suit
in a people’s court.
The reconsideration department shall, within 60 days after receiving the application for reconsideration, make a reconsideration decision.
The party, if not satisfied with the reconsideration decision, may, within 15 days after receiving the reconsideration decision,
bring a suit in a people’s court; if the reconsideration department fails to make a reconsideration decision within the time limit,
the party may, within 15 days after the expiration of the time limit for reconsideration, bring a suit in a people’s court.
If a party has not applied for reconsideration, nor brought a suit in a people’s court within the time limit, nor complied with the
decision on punishment, the department that has made the decision may apply to a people’s court for compulsory execution.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 45 The State Council shall formulate implementing regulations on the basis of this Law.
Article 46 This Law shall enter into force on January 1, 1992. The Regulations on Tobacco Monopoly promulgated by the State Council on September
23, 1983 shall be annulled simultaneously.
Official Reply of the State Council Concerning the Amending of the Provisions of the People’s Republic of China Concerning the Administration
of Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River
(June 6, 1992) (Editor’s Note: For the revised text, see Official
Reply of the State Council Concerning the Amending of the Provisions of the People’s Republic of China Concerning the Administration of Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River (Appendix: The Third Revised Text) promulgated on May 26, 1997, and effective as of August 1, 1997)
The Ministry of Communications:
We are in receipt of your request concerning the amending of the Provisions of the People’s Republic of China for the Administration of Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River. The official reply is hereby given according to the decision of the Standing Committee of the National People’s Congress concerning the approval of opening the Wuhan Port, Jiujiang Port and Wuhu Port to vessels of foreign nationality:
1. Article 3 of the Provisions of the People’s Republic of China for the Administration of Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River shall be amended as: “The Yangtze River waters as mentioned in these Provisions refer to the main course waters west of the line between Liuheiwu in the lower reaches of the mouth of the Liuhe River (31 degrees 30 minutes north latitude, 121 degrees 18 minutes east longitude) and Shixingan in the lower reaches of the mouth of the Shiqiao River on the Chongming Island (31 degrees 37 minutes north latitude, 121 degrees 22 minutes east longitude) and east of the line between the Southern Tower of the Dunkoujiakongdielan in Wuhan (30 degrees 26 minutes north latitude, 114 degrees 12 minutes east latitude) and the Northern Tower (30 degrees 27 minutes north latitude, 114 degrees 11 minutes east longitude).
The ports as mentioned in these Provisions refer to the ports along the Yangtze River waters which are open to vessels of foreign nationality according to the provisions of the preceding paragraph.”
Article 1 The Yangtze River is an inland waterway of the People’s Republic of China. These Provisions have, in accordance with the Rules of the People’s Republic of China Concerning the Administration of Vessels of Foreign Nationality, been formulated with a view to safeguarding the sovereignty of the People’s Republic of China, ensuring the safety of vessels and maintaining the order of traffic in the Yangtze River waters and its ports.
Article 2 All motorized and non-motorized vessels and other water-borne vehicles of transport of foreign nationality (hereinafter referred to as “vessels”) sailing in, or berthing at, waters or ports of the Yangtze River of the People’s Republic of China shall comply with these Provisions and all relevant laws, administrative regulations and rules of the People’s Republic of China.
Article 3 The Yangtze River waters as mentioned in these Provisions refer to the main course waters west of the line between Liuheiwu in the lower reaches of the mouth of the Liuhe River (31 degrees 30 minutes north latitude, 121 degrees 18 minutes east longitude) and Shixingan in the lower reaches of the mouth of the Shiqiao River on the Chongming Island (31 degrees 37 minutes north latitude, 121 degrees 22 minutes east longitude) and east of the line between the Southern Tower of the Dunkoujiakongdielan in Wuhan (30 degrees 26 minutes north latitude, 114 degrees 12 minutes east latitude) and the Northern Tower (30 degrees 27 minutes north latitude, 114 degrees 11 minutes east longitude).
The ports as mentioned in these Provisions refer to the ports along the Yangtze River waters which are open to vessels of foreign nationality according to the provisions of the preceding paragraph.
Article 4 These Provisions shall be enforced by the Harbour Superintendency Administration of the People’s Republic of China, and all vessels shall subject themselves to its supervision and control.
Article 5 No vessels may enter the Yangtze River waters or its ports without the approval of the Harbour Superintendency Administration of the People’s Republic of China. Those permitted to enter the Yangtze River waters shall be subject to inspection of the Health Quarantine Office, the Harbour Superintendency Administration, the Border Inspection Office, the Customs and the Animal and Plant Quarantine Office, and complete all relevant formalities. The abovementioned authorities are enpost_titled to exercise on board supervision, if and when they deem it necessary.
Article 6 Vessels entering the Yangtze River waters shall not engage in shipping business between the various ports along the Yangtze River and between these ports and the port of Shanghai, nor shall they engage in other unauthorized operations.
Article 7 A vessel entering the Yangtze River ports shall comply with the following stipulations:
(1) One week prior to its scheduled passage through the port of Shanghai, appoint the port agent company for foreign vessels to complete entry formalities and seek approval from the Harbour Superintendency Administration at the next port of call on the Yangtze River.
(2) 24 hours prior to passing through the port of Shanghai (or upon departure from the last port of call if the voyage takes less than 24 hours), report such information as the estimated time for passing through the port of Shanghai and arrival at the port on the Yangtze River, the size of the vessel, its fore and aft drafts, and maximum height above the actual waterline, to the Harbour Superintendency Administration through the port agent for foreign vessels.
(3) Shall duly advise any alteration in the time reported as required under this Article.
Article 8 Vessels sailing in the Yangtze River waters or shifting berths at its ports shall apply to the Harbour Superintendency Administration at the port of arrival along the Yangtze River for pilotage, and for passing through the port of Shanghai, shall apply to the Shanghai Harbour Superintendency Administration for pilotage.
Article 9 Upon arrival at the port, vessels shall immediately submit the entry report and other relevant forms and statements, ship’s papers and relevant documents for examination and subject themselves to inspection. Before leaving the port, vessels shall report the time of departure and the port of destination to the Harbour Superintendency Administration and complete the departure formalities through the port agency for foreign vessels and may leave the port only after port clearance has been obtained.
Article 10 Vessels sailing in the Yangtze River waters or berthing at its ports shall during the day fly the national flag of the People’s Republic of China at the top of the front mast and the national flag of the country of registry at the stern; an “H” flag shall in addition be flown when there is a pilot on board. On entering or leaving ports or shifting berths, vessels shall also display signal-letters and other prescribed signals.
Article 11 Vessels making use of their VHF radio-telephone in the Yangtze River waters or its ports shall comply with the Interim Measures Governing the Use of VHF Radio-Telephone by Foreign Vessels promulgated by the Ministry of Communications of the People’s Republic of China.
Article 12 In the Yangtze River waters, a vessel’s radio-telegraph and radio-telephone transmitters can only be used for communications with the riverside and coastal radio-stations of the People’s Republic of China, and they can only be used in ports in case of emergency, and reports shall be made to the Harbour Superintendency Administration immediately thereafter.
In the Yangtze River waters and its ports, a vessel’s signal rockets, flame signals or signal guns can only be used in case of emergency, and reports shall be made to the Harbour Superintendency Administration immediately thereafter.
Article 13 Vessels sailing in the Yangtze River waters or berthing at its ports are prohibited from conducting the following activities:
(1) taking photographs or drawing sketches of military installations and military vessels, or videotaping or surveying the same;
(2) shooting, swimming, fishing and setting off firecrackers or fireworks; or
(3) other activities endangering the national security, rights and interests, safety and order of the People’s Republic of China.
Article 14 Vessels sailing in the Yangtze River waters shall anchor as near to the outer limit of the fairway as possible, and shall not occupy the main channel of navigation under extraordinary circumstances such as inclement weather and flood peaks, when temporary anchoring is required, and shall promptly report the time and position of anchoring and the time of departure to the nearest Harbour Superintendency Administration, and no crew member shall go ashore without the permission of the local public security organs.
Article 15 Vessels sailing in the Yangtze River waters shall not proceed at a speed that may endanger the safety of other vessels and installations on the river banks.
Article 16 Matters concerning navigation, berthing and prevention of collisions of vessels sailing in the Yangtze River waters or berthing at its ports shall be carried out in accordance with the Rules Governing Prevention of Collision in Inland Waterways promulgated by the Ministry of Communications of the People’s Republic of China.
Article 17 While using signals, vessels shall comply with the Rules Governing Prevention of Collisions in Inland Waterways and other relevant signal regulations promulgated by the Ministry of Communications of the People’s Republic of China; signals not specified therein shall be displayed in accordance with the relevant international regulations.
Article 18 No vessels sailing in the Yangtze River waters or berthing at its ports shall discharge or dispose of oils, oily mixtures or other pollutants or refuse into the water.
Article 19 Matters provided for in these Provisions shall be handled in accordance therewith, while those not set forth herein shall be dealt with in accordance with the Rules of the People’s Republic of China Concerning the Administration of Vessels of Foreign Nationality and other relevant stipulations.
Article 20 These Provisions shall come into effect as of the date of promulgation.
Rules of the People’s Republic of China on the Origin of Export Commodities
(Adopted at the 99th Executive Meeting of the State Council on February
28, 1992, promulgated by Decree No. 94 of the State Council of the People’s Republic of China on March 8, 1992, and effective as of May 1, 1992)
Article 1 These Rules are formulated to strengthen the control on the work of origin of export commodities and to promote the development of foreign economic relations and trade.
Article 2 The People’s Republic of China Export Commodity Origin Certificate (hereinafter referred to as the Certificate of Origin) shall be a certificate testifying that the People’s Republic of China is the origin of the export commodity.
Article 3 The State competent department in charge of foreign economic relations and trade shall be responsible for the unified supervision and control on the work of origin of export commodities conducted throughout China.
The competent departments in charge of foreign economic relations and trade under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for coordinating the work of origin of export commodities within their respective administrative regions.
Article 4 Import and export commodity inspection organs established locally by the State administrations for import and export commodity inspection, China Council for the Promotion of International Trade and its sub-councils, as well as other authorities designated by the State competent department in charge of foreign economic relations and trade shall sign and issue Certificates of Origin in accordance with the provisions of the State competent department in charge of foreign economic relations and trade.
Article 5 Enterprises established according to law within the territory of the People’s Republic of China which are authorized to conduct foreign trade operations, enterprises engaging in “commission processing,” “sample processing,” “commissioned parts assembly” and “compensation trade” and enterprises with foreign investment may, pursuant to their requirements, apply to the certificateissuing authorities stipulated in Article 4 of these Rules to obtain Certificates of Origin.
Article 6 The People’s Republic of China shall be the origin of these export commodities complying with one of the following standards:
1. Products produced or manufactured entirely within the territory of the People’s Republic of China, including:
(1) mineral products extracted from within the territory and the continental shelf of the People’s Republic of China;
(2) plants and plant products harvested or gathered from within the territory of the People’s Republic of China;
(3) animals and animal products bred and raised within the territory of the People’s Republic of China;
(4) products obtained through hunting and fishing within the territory of the People’s Republic of China;
(5) marine products and other products, as well as their processed products, obtained from the ocean by vessels or other means of the People’s Republic of China;
(6) waste and waste materials resulting from manufacturing and processing work undertaken within the territory of the People’s Republic of China, as well as other waste and used items collected within the territory of the People’s Republic of China;
(7) products processed within the territory of the People’s Republic of China entirely with the use of the aforesaid products and other non-imported raw materials.
2. Those products the raw materials and parts used for which are partly or entirely imported and the main and final manufacturing and processing stages of which are conducted within the territory of the People’s Republic of China, causing thus substantive change in the products’ appearance, properties, form or usage. The State competent department in charge of foreign economic relations and trade shall, in consultation with the relevant departments under the State Council, formulate and adjust a detailed list of manufacturing and processing procedures, pursuant to the principle of manufacturing and processing processes as the main part, while the composition ratio as the supplementary part.
Article 7 An export commodity under application for a Certificate of Origin must comply with the origin standards. If a commodity fails to comply with these standards, the certificate-issuing authority shall refuse to sign and issue a Certificate of Origin.
Article 8 The procedures for the application for and the issuing of Certificates of Origin shall be stipulated by the State competent department in charge of foreign economic relations and trade.
Article 9 The State competent department in charge of foreign economic relations and trade may, on its own or according to the proposals of the competent departments in charge of foreign economic relations and trade under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government depending on the circumstances, circulate a notice of criticism, suspend or even disqualify an enterprise from applying for a Certificate of Origin if the enterprise violates these Rules in any of the following ways:
(1) providing false materials in order to fraudulently obtain a Certificate of Origin;
(2) forging or altering a Certificate of Origin;
(3) illegally assigning a Certificate of Origin.
The persons in charge of the enterprise involved in any of the aforesaid acts and the persons directly responsible for such acts shall be the subject of administrative sanctions; if circumstances are serious enough to constitute a crime, criminal responsibility shall be investigated in accordance with the law.
Article 10 If a certificateissuing authority, violating provisions, issues or refuses to issue a Certificate of Origin, the State competent department in charge of foreign economic relations and trade may, on its own or according to the proposals of the competent departments in charge of foreign economic relations and trade under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government, depending on the circumstances, circulate a notice of criticism or suspend the authority’s right to issue Certificates of Origin.
Personnel of certificateissuing authorities who practise graft, abuse their powers of office or neglect their duties shall be the subject of administrative sanctions; if circumstances are serious enough to constitute a crime, criminal responsibility shall be investigated in accordance with the law.
Article 11 Generalized System of Preference Certificates of Origin shall be handled in accordance with the origin rules of the Generalized System of Preference giving country.
If a bilateral agreement concluded between the governments of the People’s Republic of China and a foreign country stipulates special provisions on the issuing of Certificates of Origin, matters shall be handled pursuant to the provisions of the agreement.
Article 12 The State competent department in charge of foreign economic relations and trade shall formulate implementing measures in accordance with these Rules.
Article 13 The State competent department in charge of foreign economic relations and trade shall be responsible for the interpretation of these Rules.
Article 14 These Rules shall enter into effect as of May 1, 1992.
(Adopted at the 28th Meeting of the Standing Committee of the Seventh
National People’s Congress on November 7, 1992, promulgated by Order No. 64 of the President of the People’s Republic of China on November 7, 1992, and effective as of July 1, 1993) Contents
Chapter I General Provisions
Chapter II Ships
Section 1 Ownership of Ships
Section 2 Mortgage of Ships
Section 3 Maritime Liens
Chapter III Crew
Section 1 Basic Principles
Section 2 The Master
Chapter IV Contract of Carriage of Goods by Sea
Section 1 Basic Principles
Section 2 Carrier’s Responsibilities
Section 3 Shipper’s Responsibilities
Section 4 Transport Documents
Section 5 Delivery of Goods
Section 6 Cancellation of Contract
Section 7 Special Provisions Regarding Voyage Charter Party
Section 8 Special Provisions Regarding Multimodal Transport Contract
Chapter V Contract of Carriage of Passengers by Sea
Chapter VI Charter Parties
Section 1 Basic Principles
Section 2 Time Charter Party
Section 3 Bareboat Charter Party
Chapter VII Contract of Sea Towage
Chapter VIII Collision of Ships
Chapter IX Salvage at Sea
Chapter X General Average
Chapter XI Limitation of Liability for Maritime Claims
Chapter XII Contract of Marine Insurance
Section 1 Basic Principles
Section 2 Conclusion, Termination and Assignment of Contract
Section 3 Obligations of the Insured
Section 4 Liability of the Insurer
Section 5 Loss of or Damage to the Subject Matter Insured and Abandonment
Section 6 Payment of Indemnity
Chapter XIII Limitation of Time
Chapter XIV Application of Law in Relation to Foreignrelated Matters
Article 1 This Code is enacted with a view to regulating the relations arising from maritime transport and those pertaining to ships, to securing and protecting the legitimate rights and interests of the parties concerned, and to promoting the development of maritime transport, economy and trade.
Article 2 “Maritime transport” as referred to in this Code means the carriage of goods and passengers by sea, including the sea-river and river-sea direct transport.
The provisions concerning contracts of carriage of goods by sea as contained in Chapter IV of this Code shall not be applicable to the maritime transport of goods between the ports of the People’s Republic of China.
Article 3 “Ship” as referred to in this Code means sea-going ships and other mobile units, but does not include ships or craft to be used for military or public service purposes, nor small ships of less than 20 tons gross tonnage.
The term “ship” as referred to in the preceding paragraph shall also include ship’s apparel.
Article 4 Maritime transport and towage services between the ports of the People’s Republic of China shall be undertaken by ships flying the national flag of the People’s Republic of China, except as otherwise provided for by laws or administrative rules and regulations.
No foreign ships may engage in the maritime transport or towage services between the ports of the People’s Republic of China unless permitted by the competent authorities of transport and communications under the State Council.
Article 5 Ships are allowed to sail under the national flag of the People’s Republic of China after being registered, as required by law, and granted the nationality of the People’s Republic of China.
Ships illegally flying the national flag of the People’s Republic of China shall be prohibited and fined by the authorities concerned.
Article 6 All matters pertaining to maritime transport shall be administered by the competent authorities of transport and communications under the State Council. The specific measures governing such administration shall be worked out by such authorities and implemented after being submitted to and approved by the State Council. Chapter II Ships
Section I Ownership of Ships
Article 7 The ownership of a ship means the shipowner’s rights to lawfully possess, utilize, profit from and dispose of the ship in his ownership.
Article 8 With respect to a State-owned ship operated by an enterprise owned by the whole people having a legal person status granted by the State, the provisions of this Code regarding the shipowner shall apply to that legal person.
Article 9 The acquisition, transference or extinction of the ownership of a ship shall be registered at the ship registration authorities; no acquisition, transference or extinction of the ship’s ownership shall act against a third party unless registered.
The transference of the ownership of a ship shall be made by a contract in writing.
Article 10 Where a ship is jointly owned by two or more legal persons or individuals, the joint ownership thereof shall be registered at the ship registration authorities. The joint ownership of the ship shall not act against a third party unless registered.
Section 2 Mortgage of Ships
Article 11 The right of mortgage with respect to a ship is the right of preferred compensation enjoyed by the mortgagee of that ship from the proceeds of the auction sale made in accordance with law where and when the mortgagor fails to pay his debt to the mortgagee secured by the mortgage of that ship.
Article 12 The owner of a ship or those authorized thereby may establish the mortgage of the ship.
The mortgage of a ship shall be established by a contract in writing.
Article 13 The mortgage of a ship shall be established by registering the mortgage of the ship with the ship registration authorities jointly by the mortgagee and the mortgagor. No mortgage may act against a third party unless registered.
The main items for the registration of the mortgage of a ship shall be:
(1) Name or designation and address of the mortgagee and the name or designation and address of the mortgagor of the ship;
(2) Name and nationality of the mortgaged ship and the authorities that issued the certificate of ownership and the certificate number thereof;
(3) Amount of debt secured, the interest rate and the period for the repayment of the debt.
Information about the registration of mortgage of ships shall be accessible to the public for enquiry.
Article 14 Mortgage may be established on a ship under construction.
In registering the mortgage of a ship under construction, the building contract of the ship shall as well be submitted to the ship registration authorities.
Article 15 The mortgaged ship shall be insured by the mortgagor unless the contract provides otherwise. In case the ship is not insured, the mortgagee has the right to place the ship under insurance coverage and the mortgagor shall pay for the premium thereof.
Article 16 The establishment of mortgage by the joint owners of a ship shall, unless otherwise agreed upon among the joint owners, be subject to the agreement of those joint owners who have more than two-thirds of the shares thereof.
The mortgage established by the joint owners of a ship shall not be affected by virtue of the division of ownership thereof.
Article 17 Once a mortgage is established on a ship, the ownership of the mortgaged ship shall not be transferred without the consent of the mortgagee.
Article 18 In case the mortgagee has transferred all or part of his right to debt secured by the mortgaged ship to another person, the mortgage shall be transferred accordingly.
Article 19 Two or more mortgages may be established on the same ship. The ranking of the mortgages shall be determined according to the dates of their respective registrations.
In case two or more mortgages are established, the mortgagees shall be paid out of the proceeds of the auction sale of the ship in the order of registration of their respective mortgages. The mortgages registered on the same date shall rank equally for payment.
Article 20 The mortgages shall be extinguished when the mortgaged ship is lost. With respect to the compensation paid from the insurance coverage on account of the loss of the ship, the mortgagee shall be enpost_titled to enjoy priority in compensation over other creditors.
Section 3 Maritime Liens
Article 21 A maritime lien is the right of the claimant, subject to the provisions of Article 22 of this Code, to take priority in compensation against shipowners, bareboat charterers or ship operators with respect to the ship which gave rise to the said claim.
Article 22 The following maritime claims shall be enpost_titled to maritime liens:
(1) Payment claims for wages, other remuneration, crew repatriation and social insurance costs made by the Master, crew members and other members of the complement in accordance with the relevant labour laws, administrative rules and regulations or labour contracts;
(2) Claims in respect of loss of life or personal injury occurred in the operation of the ship;
(3) Payment claims for ship’s tonnage dues, pilotage dues, harbour dues and other port charges;
(4) Payment claims for salvage payment;
(5) Compensation claims for loss of or damage to property resulting from tortious act in the course of the operation of the ship.
Compensation claims for oil pollution damage caused by a ship carrying more than 2,000 tons of oil in bulk as cargo that has a valid certificate attesting that the ship has oil pollution liability insurance coverage or other appropriate financial security are not within the scope of sub-paragraph (5) of the preceding paragraph.
Article 23 The maritime claims set out in paragraph 1 of Article 22 shall be satisfied in the order listed. However, any of the maritime claims set out in sub-paragraph(4) arising later than those under sub-paragraph (1) through (3) shall have priority over those under sub-paragraph (1) through (3). In case there are more than two maritime claims under sub-paragraphs (1),(2),(3) or (5) of paragraph 1 of Article 22, they shall be satisfied at the same time regardless of their respective occurrences; where they could not be paid in full, they shall be paid in proportion. Should there be more than two maritime claims under subparagraph (4), those arising later shall be satisfied first.
Article 24 The legal costs for enforcing the maritime liens, the expenses for preserving and selling the ship, the expenses for distribution of the proceeds of sale and other expenses incurred for the common interests of the claimants, shall be deducted and paid first from the proceeds of the auction sale of the ship.
Article 25 A maritime lien shall have priority over a possessory lien, and a possessory lien shall have priority over ship mortgage.
The possessory lien referred to in the preceding paragraph means the right of the ship builder or repairer to secure the building or repairing cost of the ship by means of detaining the ship in his possession when the other party to the contract fails in the performance thereof. The possessory lien shall be extinguished when the ship builder or repairer no longer possesses the ship he has built or repaired.
Article 26 Maritime liens shall not be extinguished by virtue of the transfer of the ownership of the ship, except those that have not been enforced within 60 days of a public notice on the transfer of the ownership of the ship made by a court at the request of the transferee when the transfer was effected.
Article 27 In case the maritime claims provided for in Article 22 of this Code are transferred, the maritime liens attached thereto shall be transferred accordingly.
Article 28 A maritime lien shall be enforced by the court by arresting the ship that gave rise to the said maritime lien.
Article 29 A maritime lien shall, except as provided for in Article 26 of this Code, be extinguished under one of the following circumstances:
(1) The maritime claim attached by a maritime lien has not been enforced within one year of the existence of such maritime lien;
(2) The ship in question has been the subject of a forced sale by the court;
(3) The ship has been lost.
The period of one year specified in sub-paragraph (1) of the preceding paragraph shall not be suspended or interrupted.
Article 30 The provisions of this Section shall not affect the implementation of the limitation of liability for maritime claims provided for in Chapter XI of this Code. Chapter III Crew
Section 1 Basic Principles
Article 31 The term “crew” means the entire complement of the ship, including the Master.
Article 32 The Master, deck officers, chief engineer, engineers, electrical engineer and radio operator must be those in possession of appropriate certificates of competency.
Article 33 Chinese “crew” engaged in international voyages must possess Seaman’s Book and other relevant certificates issued by the harbour superintendency authorities of the People’s Republic of China.
Article 34 In the absence of specific stipulations in this Code as regards the employment of the crew as well as their labour-related rights and obligations, the provisions of the relevant laws and administrative rules and regulations shall apply.
Section 2 The Master
Article 35 The Master shall be responsible for the management and navigation of the ship.
Orders given by the Master within the scope of his functions and powers must be carried out by other members of the crew, the passengers and all persons on board.
The Master shall take necessary measures to protect the ship and all persons on board, the documents, postal matters, the goods as well as other property carried.
Article 36 To ensure the safety of the ship and all persons on board, the Master shall be enpost_titled to confine or take other necessary measures against those who have committed crimes or violated laws or regulations on board, and to guard against their concealment, destruction or forging of evidence.
The Master, having taken actions as referred to in the preceding paragraph of this Article, shall make a written report of the case, which shall bear the signature of the Master himself and those of two or more others on board, and shall be handed over, together with the offender, to the authorities concerned for disposition.
Article 37 The Master shall make entries in the log book of any occurrence of birth or death on board and shall issue a certificate to that effect in the presence of two witnesses. The death certificate shall be attached with a list of personal belongings of the deceased, and attestation shall be given by the Master to the will, if any, of the deceased. Both the death certificate and the will shall be taken into safe keeping by the Master and handed over to the family members of the deceased or the organizations concerned.
Article 38 Where a sea casualty has occurred to a ship and the life and property on board have thus been threatened, the Master shall, with crew members and other persons on board under his command, make best efforts to run to the rescue. Should the foundering and loss of the ship have become inevitable, the Master may decide to abandon the ship. However, such abandonment shall be reported to the shipowner for approval except in case of emergency.
Upon abandoning the ship, the Master must take all measures first to evacuate the passengers safely from the ship in an orderly way, then make arrangements for crew members to evacuate, while the Master shall be the last to evacuate. Before leaving the ship, the Master shall direct the crew members to do their utmost to rescue the deck log book, the engine log book, the oil record book, the radio log book, the charts, documents and papers used in the current voyage, as well as valuables, postal matters and cash money.
Article 39 The duty of the Master in the management and navigation of the ship shall not be absolved even with the presence of a pilot piloting the ship.
Article 40 Should death occur to the Master or the Master be unable to perform his duties for whatever reason, the deck officer with the highest rank shall act as the Master; before the ship sails from its next port of call, the shipowner shall appoint a new Master to take command. Chapter IV Contract of Carriage of Goods by Sea
Section 1 Basic Principles
Article 41 A contract of carriage of goods by sea is a contract under which the carrier, against payment of freight, undertakes to carry by sea the goods contracted for shipment by the shipper from one port to another.
Article 42 For the purposes of this Chapter:
(1) “Carrier” means the person by whom or in whose name a contract of carriage of goods by sea has been concluded with a shipper;
(2) “Actual carrier” means the person to whom the performance of carriage of goods, or of part of the carriage, has been entrusted by the carrier, and includes any other person to whom such performance has been entrusted under a sub-contract;
(3) “Shipper” means:
a) The person by whom or in whose name or on whose behalf a contract of carriage of goods by sea has been concluded with a carrier;
b) The person by whom or in whose name or on whose behalf the goods have been delivered to the carrier involved in the contract of carriage of goods by sea;
(4) “Consignee” means the person who is enpost_titled to take delivery of the goods;
(5) “Goods” includes live animals and containers, pallets or similar articles of transport supplied by the shipper for consolidating the goods.
Article 43 The carrier or the shipper may demand confirmation of the contract of carriage of goods by sea in writing. However, voyage charter shall be done in writing. Telegrams, telexes and telefaxes have the effect of written documents.
Article 44 Any stipulation in a contract of carriage of goods by sea or a bill of lading or other similar documents evidencing such contract that derogates from the provisions of this Chapter shall be null and void. However, such nullity and voidness shall not affect the validity of other provisions of the contract or the bill of lading or other similar documents. A clause assigning the benefit of insurance of the goods in favour of the carrier or any similar clause shall be null and void.
Article 45 The provisions of Article 44 of this Code shall not prejudice the increase of duties and obligations by the carrier besides those set out in this Chapter.
Section 2 Carrier’s Responsibilities
Article 46 The responsibilities of the carrier with regard to the goods carried in containers covers the entire period during which the carrier is in charge of the goods, starting from the time the carrier has taken over the goods at the port of loading, until the goods have been delivered at the port of discharge. The responsibility of the carrier with respect to non-containerized goods covers the period during which the carrier is in charge of the goods, starting from the time of loading of the goods onto the ship until the time the goods are discharged therefrom. During the period the carrier is in charge of the goods, the carrier shall be liable for the loss of or damage to the goods, except as otherwise provided for in this Section.
The provisions of the preceding paragraph shall not prevent the carrier from entering into any agreement concerning carrier’s responsibilities with regard to non-containerized goods prior to loading onto and after discharging from the ship.
Article 47 The carrier shall, before and at the beginning of the voyage, exercise due diligence to make the ship seaworthy, properly man, equip and supply the ship and to make the holds, refrigerating and cool chambers and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation.
Article 48 The carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried.
Article 49 The carrier shall carry the goods to the port of discharge on the agreed or customary or geographically direct route.
Any deviation in saving or attempting to save life or property at sea or any reasonable deviation shall not be deemed to be an act deviating from the provisions of the preceding paragraph.
Article 50 Delay in delivery occurs when the goods have not been delivered at the designated port of discharge within the time expressly agreed upon.
The carrier shall be liable for the loss of or damage to the goods caused by delay in delivery due to the fault of the carrier, except those arising or resulting from causes for which the carrier is not liable as provided for in the relevant Articles of this Chapter.
The carrier shall be liable for the economic losses caused by delay in delivery of the goods due to the fault of the carrier, even if no loss of or damage to the goods had actually occurred, unless such economic losses had occurred from causes for which the carrier is not liable as provided for in the relevant Articles of this Chapter.
The person enpost_titled to make a claim for the loss of goods may treat the goods as lost when the carrier has not delivered the goods within 60 days from the expiry of the time for delivery specified in paragraph 1 of this Article.
Article 51 The carrier shall not be liable for the loss of or damage to the goods occurred during the period of carrier’s responsibility arising or resulting from any of the following causes:
(1) Fault of the Master, crew members, pilot or servant of the carrier in the navigation or management of the ship;
(2) Fire, unless caused by the actual fault of the carrier;
(3) Force majeure and perils, dangers and accidents of the sea or other navigable waters;
(4) War or armed conflict;
(5) Act of the government or competent authorities, quarantine restrictions or seizure under legal process;
(6) Strikes, stoppages or restraint of labour;
(7) Saving or attempting to save life or property at sea;
(8) Act of the shipper, owner of the goods or their agents;
(9) Nature or inherent vice of the goods;
(10) Inadequacy of packing or insufficiency or illegibility of marks;
(11) Latent defect of the ship not discoverable by due diligence;
(12) Any other causes arising without the fault of the carrier or his servant or agent.
The carrier who is enpost_titled to exoneration from the liability for compensation as provided for in the preceding paragraph shall, with the exception of the causes given in sub-paragraph (2), bear the burden of proof.
Article 52 The carrier shall not be liable for the loss of or damage to the live animals arising or resulting from the special risks inherent in the carriage thereof. However, the carrier shall be bound to prove that he has fulfilled the special requirements of the shipper with regard to the carriage of the live animals and that under the circumstances of the sea carriage, the loss or damage has occurred due to the special risks inherent therein.
Article 53 In case the carrier intends to ship the goods on deck, he shall come into an agreement with the shipper or comply with the custom of the trade or the relevant laws or administrative rules and regulations.
When the goods have been shipped on deck in accordance with the provisions of the preceding paragraph, the carrier shall not be liable for the loss of or damage to the goods caused by the special risks involved in such carriage.
If the carrier, in breach of the provisions of the first paragraph of this Article, has shipped the goods on deck and the goods have consequently suffered loss or damage, the
Circular of the State Administration of Taxation Concerning the Ascertaining of the Explanation of Productive Enterprises with Foreign
Investment in other Industries
GuoShuiFa [1992] No.109
April 29, 1992
The tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan:
According to Subparagraph 10 of Paragraph 1 of Article 72 of the Rules for the Implementation of the Law of Income Tax of Enterprises
with Foreign Investment and Foreign Enterprises (hereafter as “the Rules for the Implementation”), the ascertaining of the explanation
of productive enterprises with foreign investment in other industries is as follows:
1.
The enterprises with foreign investment that involve in the following business may be regarded as productive enterprises with foreign
investment:
(1)
Involving in designing of construction, installation, assembling projects or providing services for projects (including consulting
services);
Consulting services include reforming the project construction or the existing productive technique, improving the management of production
and operation, technique choosing or providing technique assistance or technique instruction in promoting or increasing function,
efficiency, quality of existing productive facilities or products;
(2)
Involving in rearing, breeding (including aquatic products breeding), planting (including flower planting), feeding livestock and
flocks, and animal like dogs, cats;
(3)
Involving in scientific research and development of productive technology;
(4)
Providing storage, transportation services for clients by self-owned conveyance or storing facilities.
2.
Those who specialized in following business shall not be treated as productive enterprises with foreign investment:
(1)
Involving in fitment, upholster in and out room or installation and adjustment of inner room facilities;
(2)
Involving in business of making advertisement, business card, pictures or book issuing;
(3)
Involving in food processing and making, mainly for sales in self-established restaurants or shops;
(4)
Involving household appliances repairing or living apparatus repairing.
3.
“The repairing service in productive facilities, precision instruments ” referred in Subparagraph 9 of Paragraph 1 of Article 72
of the Rules for the Implementation, doesn’t include the repairing of vehicles, electric instruments, computer supervision system
or common instruments, meters.
Interim Procedures of Tianjin Municipality for the Leasing and Subleasing of State-owned Land
(Effective Date:1992.06.19–Ineffective Date:)
CONTENTS
CHAPTER I GENERAL PRINCIPLES CHAPTER II LAND LEASING CHAPTER III SUBLEASING OF LAND-USE RIGHTS CHAPTER IV RENTING OF LAND-USE RIGHTS
CHAPTER V MORTGAGE OF LAND-USE RIGHTS CHAPTER VI TERMINATION OF LAND-USE RIGHTS CHAPTER VII ALLOTMENT OF LAND-USE RIGHTS CHAPTER
VIII SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PRINCIPLES
Article 1. These Procedures are formulated in accordance with the Provisional Regulations of the People’s Republic of China on the Leasing and
Subleasing of Urban State-owned Land under suitable consideration of the actual conditions of the city for the purpose of developing,
utilizing and managing the State-owned land in a rational way and strengthening the administration of the land to further the construction
and economic development of the city.
Article 2. These Procedures apply to land owned by the whole people within the administrative areas of the city (hereinafter referred to as
land), but excepting underground resources and treasure troves and public utility installations.
Article 3. All corporations, enterprises and other organizations and individuals in and out of the People’s Republic of China, except otherwise
regulated by law, can acquire land-use rights and engage in land development, utilization and management according to stipulations
of the present Procedures.
Article 4. Land-use rights acquired by the land users in accordance with these Procedures can be subleased, rented out, mortgaged or used for
other economic purposes within the term of the lease and the legitimate rights and interests of the users are protected by law.
Article 5. The development, utilization and management of land by the lessees should be carried out in observance of State laws and regulations
and relevant rules of this city and shall not be in any way in counter to public interests.
Article 6. The city land administration bureau (hereinafter referred to as city land bureau) is in charge of leasing and termination of land-use
rights, and management of the properties subleasing, renting out and mortgage. The city real estate administration bureau (hereinafter
referred to as city estate bureau) is in charge of subleasing, renting out and mortgaging of landuse rights.
The land and estate offices of the districts and counties participate in various activities of land leasing and subleasing, and administer
such activities in accordance with their functions and powers.
The city land bureau, and the district and county land administration offices exercise supervision and inspection of the leasing,
subleasing, renting out, mortgaging and termination of land-use rights according to law and their respective responsibilities.
CHAPTER II LAND LEASING
Article 7. Land leasing denotes a transference of land-use rights for a price and set term by the municipal people’s government in the capacity
of landowner to the users.
Article 8. The city land bureau, in joint efforts of the city planning bureau, estate bureau and other offices in charge of construction, shall
work out plans regarding the locations, areas, present uses and planned uses of the tracts of land for lease. The plans shall be
reported to the city people’s government for approval and carried out by the city land bureau.
Article 9. A land lease shall be effected through the signing of a contract.
The contract shall be signed between the city land bureau and the lessee on the principle of equality, volunteering and non-gratuitousness.
Article 10. The lease of a cultivated land of more than 1, 0 mu (15 mu to 1 hectare) or other land more than 2,000 mu is subject to approval
by the State Council and that of a cultivated land of less than 1,000 mu or other land of less than 2,000 mu is subject to the approval
by the city people’s government.
Article 11. The city land bureau should provide the prospective lessees with the following information:
1. Location, boundaries, area, present ground condition and infrastructures of the land;
2. Topographic map of the land;
3. City planning requirements of the land including uses, construction density, volume rate and headroom limits;
4. Requirements for environmental protection, greening of the environment, sanitation and disease prevention, communications, anti-seismic
measures and fire prevention; 5. Term of the lease and form of leasing;
6. Standard forms of the lease contract;
7. Other rules and procedures for the land leasing.
Article 12. The prospective lessee shall submit to the city land bureau the following papers for qualification examination:
1. Certificate of registered legal persons or identity papers;
2. Latest statement of assets and liabilities verified by the registered accountant and letter of credit standing issued by the financial
institution that has routine business connection with the intending lessee;
3. Credentials of a legal representative or certificate of entrustment.
The aforesaid papers submitted by the prospective lessee from a foreign country (region) should be verified by a notary office of
his country of residence and certified by the Chinese diplomatic (consular) mission in that country.
Prospective lessees from regions of Hong Kong, Macao and Taiwan can proceed with reference to above stipulations.
Article 13. The longest terms of land lease are:
1. 70 years for land used for residences;
2. 50 years for land used for industries;
3. 50 years for land used for education, science and technology, culture, health and sports;
4. 40 years for land used for commerce, tourism and recreation;
5. 50 years for land used for comprehensive or other uses.
Article 14. The leasing of land-use rights can be carried out through the following forms:
1. By agreement;
2. Public tender;
3. Auction.
Article 15. Procedures for land leasing by agreement:
1. The prospective lessee shall submit an application for use of land to the city land bureau;
2. The city land bureau shall provide the prospective lessee with information and regulations concerning the land to be leased;
3. The prospective lessee shall submit to the city land bureau within a specified time documents on land development and construction
projects as well as methods of payment of the lease price;
4. After reaching agreement through negotiation, the city land bureau and the lessee shall sign the lease contract and the lessee
shall pay 20% of the lease price as earnest money to the city land bureau. Only after a full payment of the lease price by the lessee
for the right to use the land and obtain the land-use certificate.
Article 16. Procedures for land leasing through public tender:
1. The city land bureau shall make public announcement on or invitation for the tender;
2. The prospective bidder shall go to a designated place to buy the rules on use of land, directions for bidding, the bid document,
the standard form of the contract for land use and other documents;
3. The city land bureau shall be responsible for explanation of questions related to tenders;
4. The bidder shall pay the bid bond (bearing no interest) and put his sealed bid document in the tender box before the deadline for
putting in tenders;
5. The city land bureau shall invite relevant departments to form a tender appraisal committee which will be in charge of the opening,
evaluation and awarding of the winners;
6. After an appraisal of the effective bid documents, the city land bureau shall issue to the bid winner a certificate on his winning
the bid and refund to the unsuccessful bidders with their bid bonds;
Land administration offices have the right to reject all the bid documents if they do not meet the basic conditions for bidding;
7. The bid winner, upon presenting the certificate on his winning the bid, shall sign the land lease contract with the city land bureau
within a set period of time and pay 20% of the lease price as earnest money (the bid bond can be calculated as part of the earnest
money);
8. After a full payment of the lease price as stipulated in the contract, the bid winner shall go to the city land bureau to register
for his land-use rights and get the land-use certificate.
Article 17. Procedures for land leasing by auction:
1. The city land bureau shall make public announcement on land leasing by auction;
2. The city land bureau shall supply the bidders with the standard form of the land-use contract, rules on uses of the land and other
relevant documents;
3. The city land bureau shall certify the qualifications of the bidders;
4. The city land bureau shall be responsible for explanation of questions related to the auction;
5. The city land bureau shall issue bidding placards to the bidders;
6. The city land bureau shall preside over the whole auction; the auctioneer shall strike the gong to accept the highest bid; the
auctioneer shall have the right to terminate the auction activities upon finding the prices offered by the bidders are on the low
side;
7. The city land bureau and the lessee shall sign the lease contract on the spot and the lessee shall pay 20% of the lease price as
earnest money;
8. After a full payment of the lease price to the city land bureau as stipulated in the contract, the lessee shall go to land administration
offices to register for his land-use rights and get the land-use certificate; if the lessee does not sign the lease contract with
the lessor before the specified date, his right to the lease shall be withdrawn and his earnest money shall not be refunded.
Article 18. The lessee shall pay up the lease price (the earnest money can be calculated as part of the lease price payment) within 60 days of
signing the lease contract. The land user shall bear responsibility for the breach of contract upon failing to pay in full the lease
price before the specified time, and the city land bureau shall have the right to rescind the contract in which case the earnest
money shall not be refunded.
Article 19. The city land bureau shall transfer the use-rights of the leased land according to stipulations of the contract. The city land bureau
shall bear the responsibility for the breach of contract if it should fail to transfer the land-use rights as stipulated in the contract,
and the land user shall have the right to rescind the contract and demand a refunding of double amount the earnest money.
Article 20. The land user shall develop, utilize and manage the land in accordance with stipulations of the contract and requirements of city
planning. If the user fails to do so as required, the city land bureau shall ask for correction and, if necessary, shall give out
a warning or resort to a fine of 5-30% of the lease price, and in serious cases, up to a withdrawal of the land-use rights without
compensation.
The city land bureau will withdraw the land-use rights from the land user without compensation should the latter fail to develop or
utilize the land within two years of the coming into force of the contract.
Article 21. If the lessee wishes to change in the uses of the land stipulated in the contract, he shall seek approval by the city land bureau
and the city planning bureau, and if succeed, renew the lease contract in accordance with these Procedures,readjust the lease prices,
and perform the formalities of registration again.
CHAPTER III SUBLEASING OF LAND-USE RIGHTS
Article 22. Subleasing of land-use rights denotes an act of further transference of land-use rights by a leaseholder to a sublessee, including
a sale, exchange or donation.
The leaseholder in this case is referred to as sublessor and the party receiving the sublease is referred to as sublessee.
Article 23. A land sublease shall be effected by signing a contract.
Article 24. The rights and obligations specified in the land lease contract and registration document are transferred with the sublease.
Article 25. The actual term of a sublease shall equal to the original lease term minus the years in which the land having been used by the sublessor.
Article 26. Subleasing of land shall not be made under following conditions: 1. No investment has been made in the development and utilization
of the land within the stipulated period of time and according to conditions laid down in the contract;
2. The user of allotted land has not made up the procedures for the leasing of the land and the payment of lease price in accordance
with these Procedures.
3. No certificates have been acquired according to law for the land-use rights and property rights to the buildings and other attached
installations on the ground;
4. Land-use rights and property rights to buildings and other attached installations on the ground are uncertain or in dispute;
5. The city people’s government deems it unsuitable for the land to be subleased.
Article 27. Buildings and other attached installations on the ground are transferred with the sublease of the land or with the sublease of property
rights of the buildings and other attached installations on the land, the use right of the land underneath shall also be transferred,
except in sublease of chattels.
Article 28. The owners of units in a building shall have a proportion of rights to the use of the land which can be subleased with a sublease
of the units. But the right to the use of land occupied by the same building are indivisible.
Article 29. When the value of the land increases at the time of its sublease, the sublessor shall pay added value of the land according to stipulations
of the city people’s government. The city estate bureau is in charge of collecting added value of lands.
Article 30. Procedures for land subleasing are:
1. The sublessor shall apply, with the legal lease contract, the land-use certificate and certificates of property rights to the buildings
and other attached installations on the ground or other relevant documents of certification, to the city estate bureau for the sublease
which shall be examined and approved by the bureau in conjunction with the land administration and other relevant offices;
2. The city estate bureau, acting in conjunction with the city land, finance, price and other offices concerned, shall then make a
land price appraisal;
3. The two parties to the sublease shall sign a contract on the sublease;
4. The two parties to the sublease shall, within 30 days of their signing the sublease contract, go to change the certificate of land-use
at the city land bureau and the property rights certificate of the buildings and other attached installations at the estate bureau
with the sublease contract.
The contracting parties can also entrust their proxies with legitimate letters of entrustment to complete the aforesaid procedures.
Article 31. After a sublease of the land-use rights, a request for changes in the conditions and uses of land stipulated in the lease contract
is to be handled according to regulations of Article 21 of these Procedures.
CHAPTER IV RENTING OF LAND-USE RIGHTS
Article 32. Renting of land-use rights denotes the renting out of land-use right with the buildings and other attached installations on the ground
by the owner to a tenant to collect a certain amount of rental.
The use-rights to the land shall not be rented out in case no investment has been made in the development and utilization of the land
before a set time limit or in accordance with stipulations of the lease contract.
Article 33. The renter and the tenant should sign a rental contract on the renting of land-use rights, which shall not contravene State laws
and regulations and the land lease contract.
After a renting out of the land-use rights, the renter shall continue to carry out the lease contract.
Article 34. The renter shall register for the renting out of land-use rights and the buildings and other attached installations on the ground
according to rules.
CHAPTER V MORTGAGE OF LAND-USE RIGHTS
Article 35. Land-use rights acquired through land leasing or subleasing can be mortgaged.
Article 36. The buildings and other attached installations on the ground are mortgaged with a mortgage of the use-rights to the land they are
on.
The use-rights to that part of the land used by buildings and other attached installations on the ground is mortgaged with a mortgage
of the buildings and installations.
Article 37. The mortgagor and the mortgagee shall sign a mortgage contract, which shall not contravene State laws and regulations and the land
lease contract.
Article 38. The mortgage of land-use rights and buildings and other attached installations on the ground shall be registered according to regulations.
Article 39. In case of the mortgagor failing to clear his debts due or declaring a dissolution or bankruptcy during the contract term, the mortgagee
shall have the right to dispose of the mortgaged property. Article 40. The mortgagee shall have first priority in getting compensation
from the proceeds of a disposal of the mortgaged property.
Article 41. Upon the termination of a mortgage due to debt clearance or for other reasons, the mortgage registration shall be cancelled according
to regulations.
CHAPTER VI TERMINATION OF LAND-USE RIGHTS
Article 42. Land-use rights shall terminate with the expiry of the term for the use of the land as stipulated in the lease contract, or as a
result of their withdrawal before the expiry of their term or extermination of the land.
Article 43. At the expiry of land-use rights, the land-use rights and property rights to the buildings and other attached installations on the
ground shall be acquired by the city people’s government without compensation. The land user shall return the land-use certificate
and other related documents and cancel the lease registration according to regulations.
The lessee shall dismantle and move out the technical equipment and non-general use buildings in the time limit as stipulated in the
lease contract which requires their dismantling and moving out, or pay the expenses for their dismantling and moving out.
Article 44. The land user can apply for an extension of the lease term upon its expiry. The application shall be made to the city land bureau
six months before the expiry. A new contract shall be signed in accordance with stipulations of Chapter Two of these Procedures.
The land price shall be paid and registration completed accordingly.
Article 45. The city people’s government shall not withdraw the land-use right of the land user before the expiry of the lease term. In special
circumstances and acting in the interest of public welfare, the city government can withdraw the land-use rights before the expiry
of their lease through legal procedure and make due compensations with consideration of the period of the use of the land and the
actual development and utilization of the land. The city land bureau shall inform the land user and make a public notice six months
before the withdrawal of the land-use right on the reasons of the withdrawal, the location of the land affected and the date of the
withdrawal. The city land bureau shall be in charge of the withdrawal of the land-use rights and the property rights of the buildings
and other attached installations on the ground.
Article 46. The amount of compensation for a withdrawal before the expiry of the set term of the land-use rights to the land user shall be assessed
by the city land bureau together with the city estate bureau and city finance bureau and determined with the land user through negotiation.
In case of a dispute over the negotiation, either party can bring that before the court. But a dispute over the amount of compensation
shall not affect the early withdrawal of the land-use rights.
Article 47. With a negotiated agreement with the land user, an early withdrawal of land-use rights can be effected through giving the land user
the land-use rights of another tract of land for exchange. The negotiated amount of compensation and the lease price shall offset
each other during the exchange.
The city land bureau and the land user shall sign a new land lease contract for the exchange of land-use rights, and the land user
shall perform the formalities for registration and change of land-use certificates.
Article 48. With an extermination of land and cessation of land-use rights, the land user’s rights and obligations thereon come to an end. Cancellation
of the registration should be made according to regulations.
CHAPTER VII ALLOTMENT OF LAND-USE RIGHTS
Article 49. The allotment of land-use rights denotes an acquisition by the land users of land-use rights through various forms free of charge
according to law.
Article 50. Allotted land shall not be subleased, rented out or mortgaged except when the land user meets the requirements stipulated in Article
1.
In the case of arbitrary subleasing, renting and mortgaging of allotted land, the land users shall be subject to punishment of confiscation
of the illegal proceeds from the act and withdrawal of the rights to use the land by the city land bureau and to a fine of less than
50% of the illegal proceeds or the value of the mortgage according to the actual circumstances of the case.
Article 51. Under the following conditions and with approval form the city land and estate bureaus, a land user can sublease, rent or mortgage
his allotted land and property rights to the buildings and other attached installations on the ground:
1. The land user is a corporation, enterprise or some other economic organization or an individual;
2. The land user possesses the certificate for the use of Stateowned land;
3. The land user possesses legal post_title deeds for the buildings and other attached installations on the ground;
4. The land user signs a land lease contract and pays up the lease price to the city land bureau according to stipulations of Chapter
Two of these Procedures, or uses his proceeds from the sublease, rent or mortgage to offset the lease price.
The authorized subleasing, renting or mortgaging of land acquired in accordance with the preceding paragraph shall be effected according
to respective stipulations of Chapters Three, Four and Five of these Procedures.
Article 52. In the case when an user of allotted land ceases his use of the land owing to a removal, dissolution, cancellation, bankruptcy or
other reasons, the city people’s government shall withdraw his right to use the land without compensation, and the land can be leased
out in accordance with these Procedures.
Acting on the needs of city construction and development and city planning, the city people’s government can withdraw the use-right
to an allotted land without compensation and the land can be leased out in accordance with these Procedures.
In the withdrawal of the use-right to an allotted land without compensation, the city people’s government shall make appropriate compensations
for the take-over of the buildings and other attached installations on the ground with consideration of the actual situation.
CHAPTER VIII SUPPLEMENTARY PROVISIONS
Article 53. The land-use rights acquired by individuals in accordance with these Procedures can be inherited.
The inheritor shall go to the city land bureau to register for a change of the post_title with the certificate of his right of inheritance.
Article 54. The land user is obliged to pay taxes according to the tax law.
Article 55. The Tianjin City Urban and Rural Construction Commission is responsible for explanations of these Procedures.
Article 56. These Procedures will come into force as of the date of promulgation.
Implementing Regulations of the Patent Law of the People’s Republic of China
(Promulgated by Decree No. 306 of the State Council of the People’s Republic of China on June 15, 2001, and effective as of July 1,
2001)
(Translated by the Patent Administration Department under the State Council of the People’s Republic of China. In case of discrepancy,
the original version shall prevail.)
Chapter I General Provisions
Rule 1. These Implementing Regulations are formulated in accordance with the Patent Law of the People’s Republic of China (hereinafter
referred to as the Patent Law).
Rule 2 “Invention” in the Patent Law means any new technical solution relating to a product, a process or improvement thereof.
“Utility model” in the Patent Law means any new technical solution relating to the shape, the structure, or their combination,
of a product, which is fit for practical use.
“Design” in the Patent Law means any new design of the shape, the pattern or their combination, or the combination of the color
with shape or pattern, of a product, which creates an aesthetic feeling and is fit for industrial application.
Rule 3 Any formalities prescribed by the Patent Law and these Implementing Regulations shall be complied with in a written form or
in any other form prescribed by the Patent Administration Department under the State Council .
Rule 4 Any document submitted in accordance with the provisions of the Patent Law and these Implementing Regulations shall be in
Chinese; the standard scientific and technical terms shall be used if there is a prescribed one set forth by the State; where no
generally accepted translation in Chinese can be found for a foreign name or scientific or technical term, the one in the original
language shall be also indicated.
Where any certificate or certifying document submitted in accordance with the provisions of the Patent Law and these Implementing
Regulations is in a foreign language, the Patent Administration Department under the State Council may, when it deems necessary,
request a Chinese translation of the certificate or the certifying document be submitted within a specified time limit; where the
translation is not submitted within the specified time limit, the certificate or certifying document shall be deemed not to have
been submitted.
Rule 5 Where any document is sent by mail to the Patent Administration Department under the State Council , the date of mailing
indicated by the postmark on the envelope shall be deemed to be the date of filing; where the date of mailing indicated by the postmark
on the envelope is illegible, the date on which the Patent Administration Department under the State Council receives the document
shall be the date of filing, except where the date of mailing is proved by the party concerned.
Any document of the Patent Administration Department under the State Council may be served by mail, by personal delivery or
by other forms. Where any party concerned appoints a patent agency, the document shall be sent to the patent agency; where no patent
agency is appointed, the document shall be sent to the liaison person named in the request.
Where any document is sent by mail by the Patent Administration Department under the State Council , the 16th day from the
date of mailing shall be presumed to be the date on which the party concerned receives the document.
Where any document is delivered personally in accordance with the provisions of the Patent Administration Department under the
State Council , the date of delivery is the date on which the party concerned receives the document.
Where the address of any document is not clear and it cannot be sent by mail, the document may be served by making an announcement.
At the expiration of one month from the date of the announcement, the document shall be deemed to be served.
Rule 6 The first day of any time limit prescribed in the Patent Law and these Implementing Regulations shall not be counted in the
time limit. Where the time limit is counted by year or by month, it shall expire on the corresponding day of the last month; if there
is no corresponding day in that month, the time limit shall expire on the last day of that month; if a time limit expires on an official
holiday, it shall expire on the first working day following that official holiday.
Rule 7 Where a time limit prescribed in the Patent Law or these Implementing Regulations or specified by the Patent Administration
Department under the State Council is not observed by a party concerned because of force majeure, resulting in loss of his or its
rights, he or it may, within two months from the date on which the impediment is removed, at the latest within two years immediately
following the expiration of that time limit, state the reasons, together with relevant supporting documents, and request the Patent
Administration Department under the State Council to restore his or its rights.
Where a time limit prescribed in the Patent Law or these Implementing Regulations or specified by the Patent Administration
Department under the State Council is not observed by a party concerned because of any justified reason, resulting in loss of his
or its rights, he or it may, within two months from the date of receipt of a notification from the Patent Administration Department
under the State Council , state the reasons and request the Patent Administration Department under the State Council to restore
his or its rights.
Where the party concerned makes a request for an extension of a time limit specified by the Patent Administration Department
under the State Council , he or it shall, before the time limit expires, state the reasons to the Patent Administration Department
under the State Council and go through the relevant formalities.
The provisions of paragraphs one and two of this Rule shall not be applicable to the time limit referred to in Articles 24,
29, 42 and 62 of the Patent Law.
Rule 8 Where an application for a patent for invention relates to the secrets of the State concerning national defense and requires
to be kept secret, the application for patent shall be filed with the patent department of national defense. Where any application
for patent for invention relating to the secrets of the State concerning national defense and requiring to be kept secret is received
by the Patent Administration Department under the State Council , the application shall be forwarded to the patent department of
national defense for examination, and the Patent Administration Department under the State Council shall make a decision on the
basis of the observations of the examination made by the patent department of national defense.
Subject to the preceding paragraph, the Patent Administration Department under the State Council shall, after receipt of an
application for patent for invention which is required to be examined for the purpose of security, send it to the relevant competent
department under the State Council for examination. The relevant competent department shall, within four months from the date of
receipt of the application, notify the Patent Administration Department under the State Council of the results of the examination.
Where the invention for which a patent is applied for is required to be kept secret, the Patent Administration Department under the
State Council shall handle it as an application for secret patent and notify the applicant accordingly.
Rule 9 Any invention-creation that is contrary to the laws of the State referred to in Article 5 of the Patent Law shall not include
the invention-creation merely because the exploitation of which is prohibited by the laws of the State.
Rule 10 The date of filing referred to in the Patent Law, except for those referred to in Articles 28 and 42, means the priority
date where priority is claimed.
The date of filing referred to in these Implementing Regulations, except as otherwise prescribed, means the date of filing prescribed
in Article 28 of the Patent Law.
Rule l1 “A service invention-creation made by a person in execution of the tasks of the entity to which he belongs” referred to in
Article 6 of the Patent Law means any invention-creation made:
(1) in the course of performing his own duty;
(2) in execution of any task, other than his own duty, which was entrusted to him by the entity to which he belongs;
(3) within one year from his resignation, retirement or change of work, where the invention-creation relates to his own duty
or the other task entrusted to him by the entity to which he previously belonged.
“The entity to which he belongs” referred to in Article 6 of the Patent Law includes the entity in which the person concerned
is a temporary staff member. “Material and technical means of the entity” referred to in Article 6 of the Patent Law mean the entity’s
money, equipment, spare parts, raw materials or technical materials which are not disclosed to the public.
Rule 12 “Inventor” or “creator” referred to in the Patent Law means any person who makes creative contributions to the substantive
features of an invention-creation. Any person who, during the course of accomplishing the invention-creation, is responsible only
for organizational work, or who offers facilities for making use of material and technical means, or who takes part in other auxiliary
functions, shall not be considered as inventor or creator.
Rule l3 For any identical invention-creation, only one patent right shall be granted.
Two or more applicants who respectively file, on the same day, applications for patent for the identical invention-creation,
as provided for in Article 9 of the Patent Law, shall, after receipt of a notification from the Patent Administration Department
under the State Council , hold consultations among themselves to decide the person or persons who shall be enpost_titled to file the
application.
Rule 14 Any assignment of the right to apply for a patent or of the patent right, by a Chinese entity or individual, to a foreigner
shall be approved by the competent department for foreign trade and economic affairs of the State Council in conjunction with the
science and technology administration department of the State Council.
Rule 15 Except for the assignment of the patent right in accordance with Article 10 of the Patent Law, where the patent right is transferred
because of any other reason, the person or persons concerned shall, accompanied by relevant certified documents or legal papers,
request the Patent Administration Department under the State Council to make a registration of change in the owner of the patent
right.
Any license contract for exploitation of the patent which has been concluded by the patentee with an entity or individual shall,
within three months from the date of entry into force of the contract, be submitted to the Patent Administration Department under
the State Council for the record.
Chapter II Application for Patent
Rule l6 Anyone who applies for a patent in written form shall file with the Patent Administration Department under the State Council
application documents in two copies.
Anyone who applies for a patent in other forms as provided by the Patent Administration Department under the State Council
shall comply with the relevant provisions.
Any applicant who appoints a patent agency for applying for a patent, or for having other patent matters to attend to before
the Patent Administration Department under the State Council , shall submit at the same time a power of attorney indicating the
scope of the power entrusted.
Where there are two or more applicants and no patent agency is appointed, unless otherwise stated in the request, the applicant
named first in the request shall be the representative.
Rule l7 “Other related matters” in the request referred to in Article 26, paragraph two of the Patent Law means:
(1) the nationality of the applicant;
(2) where the applicant is an enterprise or other organization, the name of the country in which the applicant has the principal
business office;
(3) where the applicant has appointed a patent agency, the relevant matters which shall be indicated; where no patent agency
is appointed, the name, address, postcode and telephone number of the liaison person;
(4) where the priority of an earlier application is claimed, the relevant matters which shall be indicated;
(5) the signature or seal of the applicant or the patent agency;
(6) a list of the documents constituting the application;
(7) a list of the documents appending the application; and
(8) any other related matter which needs to be indicated.
Rule l8 The description of an application for a patent for invention or utility model shall state the post_title of the invention or utility
model, which shall be the same as it appears in the request. The description shall include the following:
(1) technical field: specifying the technical field to which the technical solution for which protection is sought pertains;
(2) background art: indicating the background art which can be regarded as useful for the understanding, searching and examination
of the invention or utility model, and when possible, citing the documents reflecting such art;
(3) contents of the invention: disclosing the technical problem the invention or utility model aims to settle and the technical
solution adopted to resolve the problem; and stating, with reference to the prior art, the advantageous effects of the invention
or utility model;
(4) description of figures: briefly describing each figure in the drawings, if any;
(5) mode of carrying out the invention or utility model: describing in detail the optimally selected mode contemplated by the
applicant for carrying out the invention or utility model; where appropriate, this shall be done in terms of examples, and with reference
to the drawings, if any;
The manner and order referred to in the preceding paragraph shall be followed by the applicant for a patent for invention or
for utility model, and each of the parts shall be preceded by a heading, unless, because of the nature of the invention or utility
model, a different manner or order would result in a better understanding and a more economical presentation.
The description of the invention or utility model shall use standard terms and be in clear wording, and shall not contain such
references to the claims as: “as described in claim ?”, nor shall it contain commercial advertising.
Where an application for a patent for invention contains disclosure of one or more nucleotide and/or amino acid sequences, the
description shall contain a sequence listing in compliance with the standard prescribed by the Patent Administration Department under
the State Council . The sequence listing shall be submitted as a separate part of the description, and a copy of the said sequence
listing in machine-readable form shall also be submitted in accordance with the provisions of the Patent Administration Department
under the State Council .
Rule l9 The same sheet of drawings may contain several figures of the invention or utility model, and the figures shall be numbered
and arranged in numerical order consecutively as “Figure l, Figure 2, ?”.
The scale and the distinctness of the drawings shall be as such that a reproduction with a linear reduction in size to two-thirds
would still enable all details to be clearly distinguished.
Reference signs not mentioned in the text of the description of the invention or utility model shall not appear in the drawings.
Reference signs not mentioned in the drawings shall not appear in the text of the description. Reference signs for the same composite
part shall be used consistently throughout the application document.
The drawings shall not contain any other explanatory notes, except words which are indispensable.
Rule 20 The claims shall define clearly and concisely the matter for which protection is sought in terms of the technical features
of the invention or utility model.
If there are several claims, they shall be numbered consecutively in Arabic numerals.
The technical terminology used in the claims shall be consistent with that used in the description. The claims may contain chemical
or mathematical formulae but no drawings. They shall not, except where absolutely necessary, contain such references to the description
or drawings as: “as described in part ?of the description”, or “as illustrated in Figure ?of the drawings”.
The technical features mentioned in the claims may, in order to facilitate quicker understanding of the claim, make reference
to the corresponding reference signs in the drawings of the description. Such reference signs shall follow the corresponding technical
features and be placed in parentheses. They shall not be construed as limiting the claims.
Rule 2l The claims shall have an independent claim, and may also contain dependent claims.
The independent claim shall outline the technical solution of an invention or utility model and state the essential technical
features necessary for the solution of its technical problem.
The dependent claim shall, by additional technical features, further define the claim which it refers to.
Rule 22 An independent claim of an invention or utility model shall contain a preamble portion and a characterizing portion, and be
presented in the following form:
(1) a preamble portion: indicating the post_title of the claimed subject matter of the technical solution of the invention or utility
model, and those technical features which are necessary for the definition of the claimed subject matter but which, in combination,
are part of the most related prior art;
(2) a characterizing portion: stating, in such words as “characterized in that…” or in similar expressions, the technical
features of the invention or utility model, which distinguish it from the most related prior art. Those features, in combination
with the features stated in the preamble portion, serve to define the scope of protection of the invention or utility model.
Where the manner specified in the preceding paragraphs is not appropriate to be followed because of the nature of the invention
or utility model, an independent claim may be presented in a different manner.
An invention or utility model shall have only one independent claim, which shall precede all the dependent claims relating to
the same invention or utility model.
Rule 23 Any dependent claim of an invention or utility model shall contain a reference portion and a characterizing portion, and be
presented in the following manner:
(l) a reference portion: indicating the serial number(s) of the claim(s) referred to, and the post_title of the subject matter;
(2) a characterizing portion: stating the additional technical features of the invention or utility model.
Any dependent claim shall only refer to the preceding claim or claims. Any multiple dependent claims, which refers to two or
more claims, shall refer to the preceding one in the alternative only, and shall not serve as a basis for any other multiple dependent
claims.
Rule 24 The abstract shall consist of a summary of the disclosure as contained in the application for patent for invention or utility
model. The summary shall indicate the post_title of the invention or utility model, and the technical field to which the invention or
utility model pertains, and shall be drafted in a way which allows the clear understanding of the technical problem, the gist of
the technical solution of that problem, and the principal use or uses of the invention or utility model.
The abstract may contain the chemical formula which best characterizes the invention. In an application for a patent which contains
drawings, the applicant shall provide a figure which best characterizes the technical features of the invention or utility model.
The scale and the distinctness of the figure shall be as such that a reproduction with a linear reduction in size to 4cm x 6cm would
still enable all details to be clearly distinguished. The whole text of the abstract shall contain not more than 300 words. There
shall be no commercial advertising in the abstract.
Rule 25 Where an invention for which a patent is applied for concerns a new biological material which is not available to the public
and which cannot be described in the application in such a manner as to enable the invention to be carried out by a person skilled
in the art, the applicant shall, in addition to the other requirements provided for in the Patent Law and these Implementing Regulations,
go through the following formalities:
(1) depositing a sample of the biological material with a depositary institution designated by the Patent Administration Department
under the State Council before, or at the latest, on the date of filing (or the priority date where priority is claimed), and submit
at the time of filing or at the latest, within four months from the filing date, a receipt of deposit and the viability proof from
the depository institution; where they are not submitted within the specified time limit, the sample of the biological material shall
be deemed not to have been deposited;
(2) giving in the application document relevant information of the characteristics of the biological material;
(3) indicating, where the application relates to the deposit of the biological material, in the request and the description
the scientific name (with its Latin name) and the post_title and address of the depositary institution, the date on which the sample of
the biological material was deposited and the accession number of the deposit; where, at the time of filing, they are not indicated,
they shall be supplied within four months from the date of filing; where after the expiration of the time limit they are not supplied,
the sample of the biological material shall be deemed not to have been deposited.
Rule 26 Where the applicant for a patent for invention has deposited a sample of the biological material in accordance with the provisions
of Rule 25 of these Implementing Regulations, and after the application for patent for invention is published, any entity or individual
that intends to make use of the biological material to which the application relates, for the purpose of experiment, shall make a
request to the Patent Administration Department under the State Council , containing the following items:
(1) the name and address of the requesting person;
(2) an undertaking not to make the biological material available to any other person;
(3) an undertaking to use the biological material for experimental purpose only before the grant of the patent right.
Rule 27 The size of drawings or photographs of a design submitted in accordance with the provisions of Article 27 of the Patent Law
shall not be smaller than 3cm x 8cm, nor larger than l5cm x 22cm.
Where an application for a patent for design seeking concurrent protection of colors is filed, a drawing or photograph in color
shall be submitted in two copies.
The applicant shall, in respect of the subject matter of the product incorporating the design which is in need of protection,
submit the relevant views and stereoscopic drawings or photographs, so as to clearly show the subject matter for which protection
is sought.
Rule 28 Where an application for a patent for design is filed, a brief explanation of the design shall, when necessary, be made.
The brief explanation of the design shall include the essential portion of the design, the colors for which protection is sought
and the omission of the view of the product incorporating the design. The brief explanation shall not contain any commercial advertising
and shall not be used to indicate the function of the product.
Rule 29 Where the Patent Administration Department under the State Council deems necessary, it may require the applicant for a patent
for design to submit a sample or model of the product incorporating the design. The volume of the sample or model submitted shall
not exceed 30cm x 30cm x 30cm, and its weight shall not surpass l5 kilograms. Articles that are easy to get rotten or broken or articles
that are dangerous shall not be submitted as sample or model.
Rule 30 The existing technology referred to in Article 22, paragraph three of the Patent Law means any technology which has been publicly
disclosed in publications in the country or abroad, or has been publicly used or made known to the public by any other means in the
country, before the date of filing (or the priority date where priority is claimed), that is, prior art.
Rule 3l The academic or technological meeting referred to in Article 24, subparagraph (2) of the Patent Law means any academic or
technological meeting organized by a competent department concerned of the State Council or by a national academic or technological
association.
Where any invention-creation for which a patent is applied falls under the provisions of Article 24, subparagraph (l) or (2)
of the Patent Law, the applicant shall, when filing the application, make a declaration and, within a time limit of two months from
the date of filing, submit certifying documents issued by the entity which organized the international exhibition or academic or
technological meeting, stating the fact that the invention-creation was exhibited or published and with the date of its exhibition
or publication.
Where any invention-creation for which a patent is applied falls under the provisions of Article 24, subparagraph (3) of the
Patent Law, the Patent Administration Department under the State Council may, when it deems necessary, require the applicant to
submit the relevant certifying documents within the specified time limit.
Where the applicant fails to make a declaration and submit certifying documents as required in paragraph two of this Rule, or
fails to submit certifying documents within the specified time limit as required in paragraph three of this Rule, the provisions
of Article 24 of the Patent Law shall not apply to the application.
Rule 32 Where any applicant goes through the formalities of claims priority in accordance with the provisions of Article 30 of the
Patent Law, he or it shall, in his or its written declaration, indicate the date and the number of the application which was first
filed (hereinafter referred to as the earlier application) and the country in which the application was filed. If the written declaration
does not contain the filing date of the earlier application and the name of the country in which the application was filed, the declaration
shall be deemed not to have been made.
Where the foreign priority is claimed, the copy of the earlier application documents submitted by the applicant shall be certified
by the competent authority of the foreign country in which the application was filed. Where in the certifying material submitted,
the name of the earlier applicant is not the same as that of the later one, the applicant shall submit document certifying the assignment
of priority. Where the domestic priority is claimed, the copy of the earlier application document shall be prepared by the Patent
Administration Department under the State Council .
Rule 33 An applicant may claim one or more priorities for an application for a patent; where multiple priorities are claimed, the
priority period for the application shall be calculated from the earliest priority date.
Where an applicant claims the right of domestic priority, if the earlier application is one for a patent for invention, he or
it may file an application for a patent for invention or utility model for the same subject matter; if the earlier application is
one for a patent for utility model, he or it may file an application for a patent for utility model or invention for the same subject
matter. However, when the later application is filed, if the subject matter of the earlier application falls under any of the following,
it may not be taken as the basis for claiming domestic priority:
(1) where the applicant has claimed foreign or domestic priority;
(2) where it has been granted a patent right;
(3) where it is the subject matter of a divisional application filed as prescribed.
Where the domestic priority is claimed, the earlier application shall be deemed to be withdrawn from the date on which the later
application is filed.
Rule 34 Where an application for a patent is filed or the right of foreign priority is claimed by an applicant having no habitual
residence or business office in China, the Patent Administration Department under the State Council may, when it deems necessary,
require the applicant to submit the following documents:
(1) a certificate concerning the nationality of the applicant;
(2) a document certifying the seat of the business office or the headquarters, if the applicant is an enterprise or other organization;
(3) a document certifying that the country, to which the foreigner, foreign enterprise or other foreign organization belongs,
recognizes that Chinese entities and individuals are, under the same conditions as those applied to its nationals, enpost_titled to the
patent right, the right of priority and other related rights in that country.
Rule 35 Two or more inventions or utility models belonging to a single general inventive concept which may be filed as one application
in accordance with the provision of Article 3l, paragraph one of the Patent Law shall be technically inter-related and contain one
or more of the same or corresponding special technical features. The expression “special technical features” shall mean those technical
features that define a contribution which each of those inventions or utility models, considered as a whole, makes over the prior
art.
Rule 36 The expression “the same class” referred to in Article 3l, paragraph two of the Patent Law means that the product incorporating
the designs belongs to the same subclass in the classification of products for designs. The expression “be sold or used in sets”
means that the products incorporating the designs have the same designing concept and are customarily sold and used at the same time.
Where two or more designs are filed as one application in accordance with the provision of Article 3l, paragraph two of the
Patent Law, they shall be numbered consecutively and the numbers shall precede the post_titles of the view of the product incorporating
the design.
Rule 37 When withdrawing an application for a patent, the applicant shall submit to the Patent Administration Department under the
State Council a declaration to that effect stating the post_title of the invention-creation, the filing number and the date of filing.
Where a declaration to withdraw an application for a patent is submitted after the preparations for the publication of the application
document has been completed by the Patent Administration Department under the State Council , the application document shall be
published as scheduled. However, the declaration withdrawing the application for patent shall be published in the next issue of the
Patent Gazette.
Chapter III Examination and Approval of Application for Patent
Rule 38 Where any of the following events occurs, a person who makes examination or hears a case in the procedures of preliminary
examination, examination as to substance, reexamination or invalidation shall, on his own initiative or upon the request of the parties
concerned or any other interested person, be excluded from excising his function:
(1) where he is a near relative of the party concerned or the agent of the
(Adopted at the Fifth Session of the Seventh National People’s Congress
on April 3, 1992, promulgated by Order No.57 of the President of the People’s Republic of China on April 3, 1992 and effective as of the same date) Contents
Chapter I General Provisions
Chapter II Trade Union Organizations
Chapter III Rights and Obligations of Trade Unions
Article 1 This Law is formulated in accordance with the Constitution of the People’s Republic of China with a view to ensuring the status of trade unions in the political, economic and social life of the State, defining their rights and obligations and bringing into play their role in the cause of socialist modernization.
Article 2 Trade unions are mass organizations of the working class formed by the workers and staff members on a voluntary basis.
Article 3 All manual or mental workers in enterprises, institutions or State organs within the territory of China who rely on wages or salaries as their main source of income, irrespective of their nationality, race, sex, occupation, religious belief or educational background, have the right to organize and join trade unions according to law.
Article 4 Trade unions shall observe and safeguard the Constitution, take it as the fundamental criterion for their activities and conduct their work in an independent and autonomous way in accordance with the Constitution of Trade Unions of the People’s Republic of China.
The National Congress of Trade Unions formulates or amends the Constitution of Trade Unions of the People’s Republic of China which shall not contravene the Constitution of the People’s Republic of China and Other laws.
The State protects the legitimate rights and interests of trade unions from violation.
Article 5 Trade Unions shall organize and educate the workers and staff members to exercise their democratic rights in accordance with the provisions of the Constitution of the People’s Republic of China and other laws, to give play to their role as masters of the country and to participate in various ways and forms in the administration of State affairs, management of economic and cultural undertakings and handling of social affairs; trade unions shall assist the people’s governments in their work and safeguard the socialist State power of the people’s democratic dictatorship led by the working class and based on the alliance of workers and peasants.
Article 6 While protecting the overall interests of the entire Chinese people, trade unions shall safeguard the legitimate rights and interests of the workers and staff members.
Trade unions must maintain close ties with the workers and staff members, solicit and voice their opinions and demands, show concern for their life, help them solve difficulties and serve them wholeheartedly.
Article 7 Trade unions in enterprises and institutions owned by the whole people or by the collective shall organize the workers and staff members to participate in the democratic management of and democratic supervision over their own work units according to provisions of the law.
Article 8 Trade unions shall mobilize and educate the workers and staff members to approach their work with the attitude of masters of the country, to safeguard the property of the State and the enterprise and to observe labour discipline; they shall call on and organize the workers and staff members to strive to fulfil their production targets and work.
Trade unions shall organize the workers and staff members in launching socialist labour emulation drive, encouraging mass rationalization proposals, and promoting technological innovations and technical cooperation, so as to raise labour productivity and economic returns and develop the social productive forces.
Article 9 Trade unions shall educate the workers and staff members in patriotism, collectivism and socialism, in democracy, legal system and labour discipline, and in science, culture and technology and raise their qualities in all aspects: ideological and ethical as well as scientific, cultural, technical and professional, so as to turn them into well-educated and self-disciplined labourers with lofty ideals and moral integrity.
Article 10 The All-China Federation of Trade Unions shall strengthen friendly and cooperative relations with trade union organizations of other countries on the basis of the principle of independence, equality, mutual respect and non-interference in each other’s internal affairs. Chapter II Trade Union Organizations
Article 11 Trade union organizations at various levels shall be established according to the principle of democratic centralism.
Trade union committees at various levels shall be democratically elected at members’ assemblies or members’ congresses.
Trade union committees at various levels shall be responsible, and report their work, to the members’ assemblies or members, congresses at their respective levels and be subjected to their supervision as well.
Trade union members, assemblies or congresses have the right to remove or recall the representatives or members of trade union committees they elected.
A trade union organization at a higher level shall exercise leadership over a trade union organization at a lower level.
Article 12 A basic-level trade union committee may be set up in an enterprise, an institution or a State organ with a membership of twenty-five or more. Where the membership is less than twenty-five, an organizer may be elected to organize the members in various activities.
Trade union federations shall be established at or above the county level.
Industrial trade unions may be formed, when needed, at national or local levels for a single industry or several industries of a similar nature.
The All-China Federation of Trade Unions shall be established as the unified national organization.
Article 13 The establishment of basic-level trade union organizations, local trade union federations, and national or local industrial trade union organizations shall be submitted to a higher-level trade union organization for approval.
A basic-level trade union organization shall be dissolved accordingly when the enterprise or institution or State organ to which it belongs terminates or is dissolved.
Article 14 The All-China Federation of Trade Unions. a local trade union federation or an industrial trade union enjoys the status of a legal person in the capacity of a social organization.
A basic-level trade union organization, which has acquired the qualifications of a legal person as prescribed in the General Principles of the Civil Law, shall be granted according to law the status of a legal person as a social organization.
Article 15 A trade union chairman or vice chairman shall not be arbitrarily transferred to another unit before the expiration of his tenure of office. When such a transfer is prompted by work necessity, approval shall be sought from the trade union committee at the corresponding level and the trade union at a higher level. Chapter III Rights and Obligations of Trade Unions
Article 16 If an enterprise or institution owned by the whole people or by the collective acts in contravention to the system of the congress of workers and staff members or other systems of democratic management, the trade union has the right to advance its opinions so as to ensure the workers and staff members the exercise of their right in democratic management as prescribed by law.
Trade unions may send representatives to investigate into any infringement of the lawful rights and interests of the workers and staff members by enterprises, institutions or State organs to which their affiliated trade union organizations belong, and the relevant units shall render them necessary assistance.
Article 17 If an enterprise or institution violates labour laws or regulations and encroaches upon the lawful rights and interests of the workers and staff members, the trade union has the right to demand that the management or the relevant department seriously handle the case.
If an enterprise or institution violates regulations of the State concerning labour (work) hours, the trade union has the right to demand a rectification by the management of the enterprise or institution.
If an enterprise or institution violates laws or regulations concerning the protection of the special rights and interests of female workers and staff members, the trade union and its female workers’ organization have the right to demand a rectification by the management.
Article 18 Trade unions shall help and guide the workers and staff members to sign labour contracts with the management of enterprises or institutions.
Trade unions may, on behalf of the workers and staff members, sign collective contracts with the management of enterprises or institutions. The draft collective contracts shall be submitted to the congresses of workers and staff members or all the workers and staff members for deliberation and approval.
Article 19 If an enterprise dismisses or punishes a worker or staff member in a manner that the trade union considers improper, the trade union has the right to advance its opinion.
An enterprise owned by the whole people or by the collective shall, when deciding to expel a worker or staff member or remove his name from the rolls, inform in advance the trade union of the reason for its decision; and, if the management of an enterprise violates laws, regulations or relevant contracts, the trade union has the right to demand a reconsideration of the decision.
If the worker or staff member in question does not accept the decision of the enterprise management to dismiss or expel him or remove his name from the rolls, he may request that his case be dealt with according to regulations of the State on handling labour disputes.
Article 20 Trade unions shall participate in the conciliation of labour disputes in enterprises. Local labour dispute arbitration bodies shall include representatives of trade unions at the corresponding levels.
Article 21 Trade unions may advance their opinions for the conciliation and settlement of labour disputes arising out of infringement of the rights and interests of the workers and staff members by enterprises. Trade unions shall give support and assistance where the workers and staff members bring a case before a people’s court.
Article 22 Trade union federations at or above the county level may provide legal advice for their affiliated trade unions and the workers and Staff members.
Article 23 Trade unions have the right to advance their opinions on the working conditions and safety and health facilities in newly-built or extended enterprises and in technological transformation projects, in accordance with regulations of the State. The enterprises or the departments in charge shall treat these opinions seriously.
Article 24 Where the management of an enterprise gives a command contrary to the established rules and compels workers to operate under unsafe conditions, or, major hidden dangers and occupational hazards are found in the course of production, the trade union has the right to put forward proposals for a solution; where the very life of the workers and staff members is in danger, the trade union has the right to make a proposal to the management that a withdrawal of the workers and staff members from the dangerous site be organized, and the management must make a decision without delay.
Trade unions have the right to participate in investigations into accidents causing death or bodily injury and into other matters seriously endangering the health of the workers and staff members, and to make proposals on solutions to the departments concerned, and they also have the right to demand that the directly responsible administrative leaders and other persons who are held responsible be investigated for their responsibilities.
Article 25 In case of work-stoppage or slow-down strike in an enterprise, the trade union shall, together with the management or the parties concerned, strive for a settlement through consultation of any demands, made by the workers and staff members, that are rational and can be met, so as to restore the normal order of production as soon as possible.
Article 26 Trade unions shall assist the management of enterprises, institutions and State organs in providing adequate collective welfare services for the workers and staff members and in properly dealing with matters concerning wages, labour protection and labour insurance.
Article 27 Trade unions shall join the management in organizing the workers and staff members in sparetime cultural and technical studies and vocational training so as to improve their educational level and professional qualifications, and also in organizing them in recreational and sports activities.
Article 28 When the people’s governments at or above the county level work out plans for national economic and social development, and when the people’s governments of cities where the people’s governments of provinces or autonomous regions are located as well as the people’s governments at or above the level of big cities, as approved by the State Council, study and draft laws, regulations or rules, opinions of the trade unions at the corresponding levels on major problems concerning the interests of the workers and staff members shall be listened to.
When the people’s governments and their relevant departments at or above the county level study and formulate important policies and measures on wages, prices, safety in production, as well as labour protection and labour insurance, the trade unions at the corresponding levels shall be invited to take part in the study and their opinions shall be listened to.
Article 29 The people’s governments at or above the county level may through appropriate ways inform trade unions at the corresponding levels of their important work programmes and administrative measures related to trade union work, study and settle the problems as reflected in the opinions and aspirations of the masses of workers and staff members conveyed by the trade unions. Chapter IV Basic-level Trade Union Organizations
Article 30 In an enterprise owned by the whole people, the congress of workers and statf members shall, as the basic form of democratic management of the enterprise and the organ by which the workers and staff members exercise their right to democratic management, discharge its functions and powers in accordance with the stipulations of the Law of the People’s Republic of China on Industrial Enterprises Owned by the Whole People.
The trade union committee of an enterprise owned by the whole people is the working body of the congress of workers and staff members and shall take care of the day-to-day work of the congress, check and supervise the implementation of its decisions.
Article 31 The trade union committee of a collectively-owned enterprise shall support and organize the participation of the workers and staff members in democratic management and democratic supervision, and defend their rights in electing, removing managerial personnel and deciding on major problems concerning operation and management.
Article 32 The trade union in an enterprise owned by the whole people shall be represented in the administrative committee of the enterprise.
The trade union in an enterprise owned by the whole people shall have its representative(s) attending any meetings held by the enterprise to discuss matters on wages, welfare, safety in production, labour protection and labour insurance and other problems related to the vital interests of the workers and staff members.
The director (manager) of an enterprise owned by the whole people shall support the trade union committee in carrying out its activities according to law, and the trade union committee shall support the director (manager) in exercising his functions and powers in accordance with the law.
Article 33 Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures, while making studies and decisions on issues of wages, welfare, safety in production, labour protection and labour insurance which affect the vital interests of the workers and staff members, shall listen to opinions of the trade unions.
The trade unions in foreign-capital enterprises may advance suggestions on problems affecting the workers’ wages, welfare, safety in production, labour protection and labour insurance, and settle such problems with the management through consultation.
Article 34 Basic-level trade union committees shall hold meetings or organize activities for the workers and staff members outside production- or work-hours; they shall seek prior consent from the management, where such meetings or activities are to take up production- or work-hours.
Trade union committee members, who are not released from production or regular work, in enterprises owned by the whole people or by the collective shall receive their normal wages if their meetings or activities organized by the trade unions take up production- or work-hours, and their other treatments shall remain unaffected.
Article 35 Full-time functionaries of trade union committees in enterprises and institutions owned by the whole people or by the collective and those in State organs shall have their wages, bonuses and subsidies paid by the management of their units. They shall enjoy the same treatment as other workers and staff members of their units as to labour insurance and other welfare. Chapter V Trade Union Fund and Property
Article 36 The sources of trade union funds are as follows:
(1) membership dues paid by union members;
(2) a contribution, equivalent to two percent of the workers’ monthly payroll, paid by the enterprise or institution owned by the whole people or by the collective or paid by the State organ where the trade union is established;
(3) incomes derived from enterprises and undertakings run by trade unions;
(4) subsidies provided by the people’s governments; and
(5) other incomes.
Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-capital enterprises where trade unions have been set up shall make contributions to the funds of the trade unions in accordance with regulations of the State.
Trade union funds shall mainly be used to finance education and other activities for the workers and staff members at the grassroots level sponsored by trade unions. Measures for the use of trade union funds shall be drawn up by the All-China Federation of Trade Unions.
Article 37 Trade unions shall establish budgets, final accounts and auditing and supervisory systems based on the principle of financial autonomy.
For trade unions at various levels, auditing commissions shall be set up.
Trade unions at various levels shall subject their incomes and expenditures to the examination by the auditing commissions at the corresponding levels, report them regularly to the members’ assemblies or congresses and receive their supervision. The trade union members’ assemblies or congresses have the right to express their opinions on the use of funds.
Article 38 The people’s governments at various levels and the enterprises, institutions and State organs shall make available such necessary material means as facilities and places for trade unions to function and develop their activities.
Article 39 Trade unions’ property, funds and immovable property allocated by the State may not be encroached upon, diverted to other uses or arbitrarily disposed of, by any organization or individual.
Article 40 Enterprises and institutions run by trade unions to serve the workers and staff members may not have their affiliation changed arbitrarily.
Article 41 Retired trade union functionaries at or above the county level shall enjoy the same treatment as retired functionaries of State organs. Chapter VI Supplementary Provisions
Article 42 This Law shall come into force as of the date of promulgation. The Trade Union Law of the People’s Republic of China, promulgated by the Central People’s Government on June 29, 1950, shall be nullified on the same date.
Article l These General Rules are formulated in order to normalize the financial behaviours of the enterprises, facilitate fair competition among enterprises and strengthen their financial management and economic calculation so as to meet the needs of the development of socialist market economy in our country.
Article 2 These General Rules shall be the principles and norms that must be observed by various enterprises established within the territory of the People’s Republic of China in conducting financial activities.
Article 3 An enterprise shall, within 30 days after completing business registration or its modification, submit to the competent finance department the duplicated copy of such documents or their modification as the approval certificate for the establishment of the enterprise, the business license and articles of association, etc.
Article 4 The fundamental principles guiding the enterprise’s financial management shall be to establish and improve the enterprise’s internal financial management system, effectively accomplish the basic work of financial management. truthfully reflect the enterprise’s financial position, calculate and turn over tax to the State according to the laws, and ensure the investors’ rights and interests from infringement.
Article 5 The basic tasks and methods of the enterprise’s financial management shall be to effectively accomplish the work relating to the plan, control, calculation, analysis and examination of the revenue and expenditure, reasonably raise fund according to the laws, effectively utilize the enterprise’s assets and actively improve economic efficiency. Chapter II Fund Raising
Article 6 A statutory capital shall be required for the establishment of an enterprise. The capital refers to the fund registered by an enterprise with the administrative department for industry and commerce.
In terms of the investors, the capital may be classified as the State capital, the capital of legal entity, the individual capital and the foreigner’s capital.
Article 7 An enterprise may, according to the laws and regulations of the State, adopt various measures to raise capital, such as seeking State investment, raising capital from various parties or issuing stocks. The investors may invest in the enterprise in such forms as cash, kinds or intangible assets.
The enterprise and the other investors may, according to the laws, claim compensation for the breach of contract with respect to investors who fail to contribute fund according to the investment contract or agreement.
Article 8 The difference of the fund contributed by the investors over the capital (including the stock premium) in the enterprise’s operations of raising the capital, the statutory increment of property value through revaluation and the donated property received shall be accounted into the capital reserve.
The capital reserve may be transferred into the capital according to the relevant stipulations.
Article 9 The enterprise shall enjoy, according to the laws, the right to manage over the capital it raised, and during the period of the enterprise’s operation, the investors may not withdraw their capital investment in any form except transferring to others according to the laws. Where the laws and administrative regulations stipulate otherwise, the provisions otberwise stipulated sball be observed.
Article 10 The liabilities of an enterprise include long-term liabilities and current liabilities.
The long-term liabilities refer to the debt, the maturity period of which is over one year or over an operating cycle longer than a year, including long-term borrowings, long-term bonds payable and long-term accounts payable, etc.
The current liabilities refer to the debt, the maturity period of which is within one year or within an operating cycle longer than a year, including short-term borrowings, short-term bonds payable, provision for expenses and the accounts payable or received in advance, etc.
Article 11 The accrued interest expenses of long-term liabilities incurred during the preparation period shall be accounted into the starting expenses; where incurred during the operation period, into the financial expenses; where incurred during the liquidation period, into the liquidation profit and loss. Among these, where the expenses are connected with building or purchasing the fixed asset or intangible asset, they shall be accounted into the value of the built or purchased asset before the asset is delivered and put into operation or before the final account of the completed project is made although the asset has been delivered and put into operation.
The accrued interest expenses of the current liabilities sball be accounted into financial expenses. Chapter III The Current Assets
Article 12 The current asset refers to the asset that will be realized into cash or utilized within one year or within an operating cycle longer than a year, including cash, various deposits, inventories, receivables and prepayments, etc.
Article 13 The enterprise may set up the provision for bad debts according to the stipulations of the State. The bad debt loss incurred shall be set off against the bad debt provision. If the bad debt provision is not set up, the bad debt loss incurred may be accounted the current expenses.
The bad debt loss refers to the account receivable that cannot be collected even after the liquidation is made with the bankrupt property or the legacy when the obligor goes bankrupt or is dead, or the account receivable that remains uncollectible after three years when lhe obligor failed to comply with debt-redeeming obligation.
Article 14 The inventory refers to the materials reserved by the enterprise for the purpose of sale or consumption in the process of production and operation, including supplies, fuels, low-value and perishable articles, goods in process, semi-finished goods, finished goods, outside-produced parts and merchandise, etc.
The low-value and perishable articles and the containers used for revolving purpose, after being put into use, may be accounted into expenses in one period or in deferred periods.
The net profit or loss deriving from the inventory overage, shortage or damage, shall be accounted into the current profit and loss. Among these, the extraordinary loss of inventory damage may be accounted into the current loss. Chapter IV The Fixed Assets
Article 15 The fixed assets refer to the assets, the service life of which is over one year, the unit value of which is above the prescribed standards, and the original physical form of which remains in the process of utilization, including building and structures, machinery equipment, transport equipment, tools and implements, etc.
Article 16 The difference between the revenue deriving from the sale of the fixed assets deducting the clearing expenditure and its book value, and the net profit or loss deriving from the inventory overage, shortage or damage of the fixed assets shall both be accounted into the current profit and loss.
Article 17 The expenditures of the construction in progress refer to the incurred expenditure for building or purchasing fixed assets or making technical innovation before the fixed assets are delivered and put into operation, including special materials such as equipment and supplies to be used for project construction, the project prepayments and the expenditures for the non-completed project.
The expenditure caused by the trial operation before the completion of the project and its related operational revenue are generally to be charged into or deducted from the cost of construction in progress.
Article 18 The fixed assets’ classified depreciation life and the depreciation methods as well as the scope of calculating depreciation shall be determined by the Ministry of Finance. The enterprise, according to the stipulations of the State, selects specific depreciation methods and determines the extent of accelerating depreciation.
Starting from the next month after its operation, the depreciation of the fixed assets are to be calculated on a monthly basis. Starting from the next month after the fixed assets are out of utilization, the calculation of the depreciation ceases.
Article 19 The repair expense for the fixed assets shall be accounted into the current cost or expenses. The repair expense, when being not regular or being relatively large, may be allocated either through amortization over different periods or through the accrual method, the case shall be filed with the compelent finance department for the record. Chapter V Intangible Assets, Deferred Assets and Other Assets
Article 20 Intangible assets refer to those assets which are used by enterprises for a long time but do not have concrete physical forms, including patents, trade-marks, copyrights, land-use rights, non-patented technology, goodwill and so on.
The costs of intangible assets shall be amortized periodically within the specified time limits starting from the day of being used. Those intangible assets without specified time limits shall be amortized according to the expected service life or within a period of no less than ten years.
Article 21 Deferred assets refer to those expenses that cannot be entirely accounted into the current year’s profit and loss, and need to be amortized in the following years, including starting expenses, amelioration expenses for rented fixed assets and so forth.
The starting expenses shall be amortized periodically within a period of no less than five years beginning from the day when the operation starts.
Article 23 The external investment refers to those investments in other enterprises carried out by an enterprise in the forms of cash, kinds and intangible assets or through buying such marketable securities as stocks and bonds including both short-term and long-term investments.
Short-term investments refer to the marketable securities that can be readily shifted into cash and held less than one year as well as other forms of investment no longer than one year.
Long-term investments refer to the marketable securities that are not intended to be shifted into cash in a short period and can be held more than one year as well as other forms of investment longer than one year.
Article 24 For those external investments which are made by enterprises in the form of physical property or intangible assets, the difference between the current value recognized by revaluation and the net book value shall be accounted into the capital reserve.
With regard to those external investment in the form of purchasing bonds, the differences between the actual payments and the bond’s face value shall be considered as the premiums or discounts of the bonds, and both of them shall be amortized or be set off after transferring them into other accounts periodically before maturity.
With regard to those external investments in the form of purchasing stocks, when the actual payments include announced dividends, difference of the actual payments after deducting the dividends receivable shall be considered as the actual value of the external investments.
Article 25 Both profit and dividends deriving from the enterprise’s external investment shall be accounted into investment returns and shall be subject to the payment of income taxes according to the stipulations of the State.
The difference between the value of the external investment realized by the enterprise and the book value of the investment shall be accounted into the current profit and loss. Chapter Vll Cost and Expenses
Article 26 All those payments of the enterprise for producing or dealing in commodities and providing services, including direct wages, direct materials, purchase price of commodities, and other direct payments, shall be accounted directly into production and operation costs. Those indirecl expenses for producing or dealing in commodities and providing services shall be proportionally allocated into production and operation cost.
Article 27 Selling, administrative and financial expenses incurred by enterprise shall be directly accounted into the current profit and loss.
The selling expenses include such expenses as transportation expense, loading and unloading expense, packing expense, insurance expense, exhibition expense, travel expense, advertisement charge, and the staff wages of specially established selling agencies, and other expenses, all of which the enterprise shall bear when selling products (commodities) or providing services.
The administrative expenses refer to the expenses that the enterprise shall unilaterally bear, including general office expense, labour union outlays, staff training expenses, labour insurance fee, unemployment insurance fee, board of directors meeting expense, consulting fee, litigation fee, tax paymenl, landuse fee, land deterioration recovery fee, technology transfer fee, technology innovation expense, amortization of intangible assets, amortization of starting expense, business reception expense, bad-debt loss, the administration fee handed over to higher level authorities, and other administrative expenses.
The financial expenses include the net expenditure for the interest payment, the net exchange loss and the bank’s service charge within the enterprise’s operational period.
Article 28 The following outlays by enterprises shall not be accounted into the cost or expense: expenses for purchasing and building fixed assets, payments for intangible assets and other assets, external investment outlays; coufiscated assets, various kinds of fines, sponsor contributions and donations, and some other outlays that may not be lined into cost or expense according to the State regulations. Chapter VIII Operating Revenues, Profits and Their Distribution
Article 29 Operating revenues refer to revenues the enterprise obtains from selling goods and providing services in its production and operation.
The sales return, sales allowance and sales discount shall be deducted fromm the current operating revenue of the enterprises.
Article 30 The total amount of enterprise’s profits include operating profit, net investment profit, and the net amount of non-operating income and expenses.
Operating profits refer to the amount of operating revenue after deducting costs, expenses, various kinds of turnover taxes, and surtaxes and fees.
Net investment profit refers to the remainder of investment profit after deducting investment loss.
The net non-operating income refers to the remainer of non-operating income after deducting non-operating expenses.
Article 31 The incurred current year’s loss of the enterprise may be covered with the next year’s profits; if the next year’s profits cannot make a full covering, the enterprise may use its pre-income-tax profits to do the covering continuously within a five-year period; if the loss still cannot be totally covered by pre-income-tax profit in five years, the enterprise can use its post-income-tax profit to cover.
Article 32 The enterprise shall pay the income tax according to the laws after adjusting the profits according to the State stipulations.
Unless otherwise stipulated by the State, the profit after the income tax shall be distributed in the following order:
(1) Loss incurred by confiscation, fine and penalty for delayed tax payment in violation of tax laws;
(2) Coverage for enterprise loss of previous years;
(3) Retention for statutory reserve fund earmarked for loss coverage or capital increase in accordance with State regulations;
(4) Retention for public welfare fund earmarked for expenditures on welfare facilities for the enterprise employees;
(5) Profit distribution to the investors. The undistributed profit of the previous years may be incorporated into distribution in the current year. Chapter IX Foreign Currency Transactions
Article 33 Foreign currency transactions refer to all the transactions conducted in currencies other than the bookkeeping base currency, such as receipts and payments of money, settlement of current account, and pricing.
The Renminbi shall be the bookkeeping base currency for an enterprise. Those enterprises conducting operational receipts and payments mainly in foreign currencies may choose one foreign currency as the bookkeeping base currency.
Article 34 The ending balance of various foreign currency items (excluding those recorded separately at the exchange rates in the foreign exchange swap centres) shall be converted into bookkeeping base currency at the official exchange rate prevailing at the end-of-period, unless otherwise stipulated by the State. The difference between the amount of the bookkeeping base currency converted from foreign currency at the official exchange rate and the book amount shown in bookkeeping base currency shall be accounted into the current profit and loss as profit and loss on exchange.
Article 35 The net profit and loss on exchange incurred by an enterprise during the preparation and construction period shall be accounted into starting expenses and amortized in a period no less than five years starting from the operation of the enterprise, or to be retained to cover the loss incurred by the enterprise during the operation period, or to be retained and incorporated into liquidation profit and loss. The exchange profit and loss incurred during the production and operation period shall be accounted into financial expenses, and during the liquidation period, into liquidation profit and loss. The exchange profit and loss associated with purchase and construction of fixed assets and intangible assets shall be accounted into the value of the purchased and constructed assets prior to the delivery to their users or prior to the final account for completed project after the delivery to the users.
Article 36 In case of foreign exchange swap transactions of an enterprise, the difference between the amount of bookkeeping base currency converted from the foreign currency at the swap rate and the book amount shown in bookkeeping base currency shall be accounted into the current profit and loss as profit ancl loss. Chapter X Enterprise Liquidation
Article 37 When an enterprise is disbanded or goes bankrupt in accordance with its Articles of Association, or is closed because of other reasons, a liquidating organ shall be established to clear its assets, claims and obligations in a thorough manner, to formulate balance sheet, general inventory and statement of claims and debts, to work out the measures for asset valuation and handling of claims and obligations, and to process appropriately all the remaining issues.
Article 38 The salaries, travelling expenses, office expenses and announcement fees of the liquidating organ during the liquidation period shall be accounted into liquidation expenses and be covered as the first priority by the enterprise with its current assets.
Inventory overage or shortage, disposal of property, insolvent obligations and non-recoverable claims, and operating income and loss incurred during the liquidation period shall be accounted into liquidation profit and loss.
Article 39 After the appropriation of liquidation expenses out of the euterprise’s property, the obligations shall be liquidated according to the following order:
(1) Staff wages and labour insurance payable and callable;
(2) Tax payment payable and callable;
(3) Other obligations payable and callable.
Where the enterprise is unable to liquidate all the items in the same order, the liquidation shall be made proportionately.
Article 40 Income tax shall be paid according to the laws on the net liquidation profit after the completion of the liquidation. The remaining after-tax property shall be distributed in proportion to the equity contributions of investors or in accordance with the provisions of contracts and Articles of Association. Chapter XI Financial Reports and Financial Assessment
Article 41 Financial reports, including balance sheet and income statement, statement of changes in financial position (Statement of Cash Flows), relative supporting schedules and explanatory statements on financial condition, shall be written documents summarizing and reflecting the financial position and operation resuits of an enterprise.
The enterprise is required to submit at regular intervals the financial reports to its investors and creditors, relevant government departments, and other users.
Article 42 The explanatory statements on financial condition shall mainly illustrate the status of production and operation of the enterprise, realization and allocation of profit, increase and decrease and turnover of fund, tax payment, changes in the condition of assets and properties; the issues which have key impact on the current and future financial position; the issues which may substantially affect the financial position of the enterprise after balance sheet date and prior to the submission of financial reports; and other issues which need to be explained.
Article 43 Financial indexes summarizing and assessing the financial position and operation results include liquidity ratio, quick ratio, accounts receivable turnover, turnover of inventories, assets-liabilities ratio, profit-costs ratio, profit and tax-operating revenue ratio and profit-costs ratio, etc. Chapter XII Supplementary Provisions
Article 44 The Ministry of Finance shall be responsible for the interpretation and organizing the implementation of these General Rules.
Article 45 The enterprise financial systems of different sectors shall be formulated by the Ministry of Finance in accordance with these General Rules.
Article 46 These General Rules shall be effective as of July 1, 1993.
