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1998

REGULATIONS FOR THE IMPLEMENTATION OF THE IMPORT AND EXPORT COMMODITY INSPECTION

Category  INSPECTION OF IMPORT AND EXPORT COMMODITIES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-10-23 Effective Date  1992-10-23  


Regulations for the Implementation of the Law of the People’s Republic of China on Import and Export Commodity Inspection

Chapter I  General Provisions
Chapter II  Inspection of Import Commodities
Chapter III  Inspection of Export Commodities
Chapter IV  Survey of Import and Export Commodities
Chapter V  Supervision and Control
Chapter VI  Legal Responsibility
Chapter VII  Supplementary Provisions

(Approved by the State Council on October 7, 1992 and promulgated by

Decree No. 5 of the State Administration for Import and Export Commodity
Inspection on October 23, 1992)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with the Law of
the People’s Republic of China on Import and Export Commodity Inspection
(hereinafter referred to as the Law of Commodity Inspection).

    Article 2  The State Administration for Import and Export Commodity
Inspection of the People’s Republic of China (hereinafter referred to as the
State Administration for Commodity Inspection) shall be in charge of the
inspection work of import and export commodities throughout the country.

    Article 3  The import and export commodity inspection bureaux and their
branches (hereinafter referred to as the commodity inspection authorities) set
up by the State Administration for Commodity Inspection in the provinces,
autonomous regions and municipalities directly under the Central Government,
as well as at ports and concentrating and distributing centres of import and
export commodities shall be in charge of the inspection work of import and
export commodities in the regions under their jurisdiction. The commodity
inspection authorities are held responsible for inspection and surveying of
the import and export commodities, administration and supervision over the
quality and inspection work of import and export commodities.

    Article 4  In the light of the need in the development of foreign trade,
the State Administration for Commodity Inspection shall formulate, adjust and
publish a List of Import and Export Commodities Subject to Inspection Enforced
by the Commodities Inspection Authorities (hereinafter referred to as the List
of Commodities) for those commodities which involve social and public
interests.

    Article 5  The statutory inspection on imports and exports by the
commodity inspection authorities or inspection agencies designated by the
State Administration for Commodity Inspection or commodity inspection
authorities covers:  

    (1) inspection of import and export commodities included in the List of
Commodities;

    (2) hygiene inspection on the foods for export;

    (3) testing and inspection on the performance and employment of the
packages and containers for dangerous export goods;

    (4) cargo worthiness inspection on such means of transportation as
vessels’ holds and containers for carrying perishable foods and frozen goods
for export;

    (5) inspection of imports and exports to be conducted by the commodity
inspection authorities according to relevant international treaties; and

    (6) inspection of imports and exports to be carried out by the commodity
inspection authorities as stipulated in other laws and administrative
regulations.

    Article 6  Hygiene inspection of imported and exported medicine,
calibration of weighing and measuring instruments, supervision and inspection
on the safety of imported and exported boilers and pressure vessels, survey of
the ships (including offshore platform, main equipments and materials for the
ships) and containers, inspection on airworthiness of aeroplanes (including
the plane’s engine and equipment) and safety inspection on nuclear
pressurebearing equipment are to be undertaken by other inspection
organizations according to the provisions of relevant laws and administrative
regulations.

    Article 7  The commodity inspection authorities may conduct random
inspection of and exercise supervision and control over the import and export
commodities other than those subject to statutory inspection.  

    With regard to the import and export commodities other than those subject
to statutory inspection for which the commodity inspection authorities have
issued inspection certificates as provided for in the foreign trade contract
or as applied for by the consignees and consignors of the commodities, the
commodity inspection authorities shall undertake inspection accordingly.

    Article 8  Samples of imports and exports, gifts, non-trade exhibits and
other non-trade articles may be exempted from inspection, unless otherwise
stipulated by the State or specified in the foreign trade contract.  

    Those import and export commodities included in the List of Commodities
having been found consistent in quality through inspection by the commodity
inspection authorities, or having been certified in quality by the relevant
foreign organizations approved by the State Administration for Commodity
Inspection may be exempted from inspection upon application by the consignees,
consignors or manufacturers of the goods and the approval by the State
Administration for Commodity Inspection.

    The specific measures for the exemption of import and export commodities
from inspection shall be formulated by the State Administration for Commodity
Inspection.

    Article 9  The inspection on import and export commodities by the
commodity inspection authorities covers quality, specifications, quantity,
weight, packages, as well as safety and hygiene requirements.

    Article 10  The commodity inspection authorities shall conduct inspection
on import and export commodities according to the following standards:  

    (1) If the compulsory standards or other inspection standards which must
be complied with are specified by laws or administrative regulations, the
inspection shall be performed according to the standards as specified by laws
and administrative regulations;  

    (2) In the absence of the compulsory standards or other inspection
standards which must be complied with as specified by laws or administrative
regulations, the inspection shall be performed according to the standards
agreed upon in the foreign trade contracts; if the trade is conducted against
the sample, the inspection shall be performed simultaneously according to the
sample provided;  

    (3) In case the compulsory standards or other inspection standards which
must be complied with as specified by laws or administrative regulations are
lower than the standards agreed upon in the foreign trade contract, the
inspection shall be conducted according to the standards agreed upon in the
foreign trade contract. If the trade is conducted against the sample, the
inspection shall be performed simultaneously according to the sample provided;
and  

    (4) In the absence of compulsory standards or other inspection standards
which must be complied with as specified by laws or administrative
regulations, and in case inspection standards are either not agreed upon or
agreed upon unclearly in the contract, the inspection shall be conducted
according to the standards of the manufacturing country, or relevant
international standards or the standards designated by the State
Administration for Commodity Inspection.

    Article 11  Based on the need of foreign trade and inspection work, the
State Administration for Commodity Inspection may formulate the sector
standards for the methods in the inspection of import and export commodities.

    Article 12  The inspection personnel of the commodity inspection
authorities are allowed to undertake inspection assignments after they pass
the qualification test and obtain certificates.  

    While performing their duties according to law, the inspection personnel
shall be free from any illegal interference or obstruction.
Chapter II  Inspection of Import Commodities

    Article 13  For import commodities subject to statutory inspection, the
consignees must make registration for the import commodities with the
commodity inspection authorities located at the port of discharge or the
station of arrival, which shall affix a stamp indicating “registration
accepted” on the Customs declarations. The commodities shall be checked and
released by the Customs against that stamp on the Customs declaration.

    Article 14  For the import commodities of which the inspection sites are
agreed upon in the foreign trade contracts or shipping contracts, the
inspection shall be conducted at the said sites; in the absence of such
agreement, the inspection shall be conducted at the port of discharge or the
station of arrival or at the sites designated by the commodity inspection
authorities.

    For large-volumed commodities in bulk and perishable goods or for those
commodities found damaged or deficient in quantity or weight during discharge,
the inspection must be performed at the port of discharge or the station of
arrival.  

    For the complete sets of equipment, machinery, electrical equipment and
meters and instruments of which inspection must go along with their
installations and trial performance and for the commodities which are
difficult to be repacked after opening up for inspection, the inspection may
be conducted at the sites of the consignees.

    Article 15  For the import commodities subject to statutory inspection,
the consignees, having made the registration, must apply to the commodity
inspection authorities for inspection by presenting the contracts, invoices,
packing lists, bills of lading and other necessary documents at the inspection
sites designated within the specified time limits and the commodity inspection
authorities shall conduct the inspection or organize the conduct of the
inspection. Those commodities that have not undergone application and
inspection are not permitted to be marketed or otherwise put to use.

    For the import commodities other than those subject to statutory
inspection which, however, shall be inspected by the commodity inspection
authorities as agreed upon in the foreign trade contract, the procedures for
application and inspection shall be followed as stipulated in the preceding
paragraph.

    Article 16  For the import commodities which already have been applied for
inspection, the commodity inspection authorities shall complete the inspection
within the time limit of claim. For those found up to standard, notices shall
be issued about the results of inspection; for those found substandard or for
those subject to inspection results by the commodities inspection authorities
according to the agreement in the foreign trade contract, the inspection
certificates should be issued respectively.

    Article 17  The import commodities that are found not in compliance with
the compulsory standards as stipulated by laws and administrative regulations
or other inspection standards that must be complied with by the commodity
inspection authorities shall undergo technical treatment under the supervision
of the commodity inspection authorities; only those proved up to standard
through reinspection are permitted to be marketed or put to use. As for those
which cannot undergo technical treatment or those found still not up to
standard through reinspection even after technical treatment, the commodity
inspection authorities shall order the consignees to return or destroy the
commodities.

    Article 18  For complete sets of equipment and accessories found not up to
standard through inspection, the commodity inspection authorities shall issue
notices indicating “installation and use not allowed”. Those found up to
standard through re-inspection by the commodity inspection authorities after
technical treatment may be installed and used.

    Article 19  Upon the arrival of import mobile vehicles, the consignees
shall procure license-plates from the traffic control office on the strength
of the inspection certificate for import vehicles issued by the commodity
inspection authorities, and report to the commodity inspection authorities the
vehicle’s condition 30 days prior to the expiration of the validity date of
quality warranty for record.

    Article 20  As to the import commodities subject to neither statutory
inspection nor to that by commodity inspection authorities as agreed upon in
the foreign trade contracts, the consignees shall receive the commodities
through their own inspection in a way as stipulated in the contract. The
commodity inspection authorities may supervise and urge the
inspection-receiving of the consignees and conduct random and check-up
inspection. In case the commodities are found substandard through inspection,
for which a claim is to be lodged on the strength of the inspection
certificate, the consignees shall apply in time to the commodity inspection
authority at the locality for inspection and certification.

    Article 21  For the import commodities found substandard through
inspection or random and check-up inspection by the commodity inspection
authorities with a claim already lodged with the foreign party for
compensation, a sufficient quantity of the goods or samples shall be retained
by the consignees provided that the commodities are not to be replaced or
returned; while the commodities intended for replacement by or return to the
foreign party must be well kept and may not be used until the settlement of
the compensation case.

    Article 22  If the import commodities are found damaged or short in
quantity or weight during discharge at the port for which a claim for
compensation is to be lodged, the consignees shall apply in time to the
commodity inspection authority at the port for inspection and certification.
The unloading unit shall discharge and store damaged goods separately.

    Article 23  For those important import commodities and large sized
complete sets of equipment involving the interests of the State and the
people, or of fairly high value and technical sophistication, the consignees
shall stipulate in the foreign trade contracts the clause to conduct initial
inspection and supervise the manufacturing or loading in the exporting
countries before shipment; and shall reserve the right of final inspection
after the arrival of goods and the right for lodging a claim in the contract,
and shall carry out the initial inspection and supervision over the
manufacturing or loading as agreed upon in the contracts.  

    The competent departments of the consignees shall strengthen the
supervision over the initial inspection, supervision of manufacturing or
loading of imported commodities before shipment. The commodity inspection
authorities, when necessary, may dispatch inspection personnel to take part
in, or may organize the conduct of, the initial inspection and supervision
over the manufacturing or loading before shipment.
Chapter III  Inspection of Export Commodities

    Article 24  For export commodities subject to statutory inspection, the
consignors shall apply to the commodity inspection authorities for inspection
by presenting the contract and other relevant documents at the site and within
the time limit specified by the commodity inspection authorities. The
commodity inspection authorities shall conduct inspection or organize the
conduct of the inspection.  

    For export commodities that are not subject to statutory inspection, but
subject to inspection by the commodity inspection authorities as agreed upon
in the foreign trade contract, the procedures for application and inspection
shall be followed as stipulated in the preceding paragraph.

    Article 25  For the export commodities already applied for inspection, the
commodity inspection authorities shall complete the inspection within the time
limit of not delaying the shipment. For those found up to standard through
inspection, the commodity inspection authorities shall issue inspection
certificates or releasing notices or shall affix stamps for releasing on the
Customs declaration as specified.  

    With regard to the export commodities to be inspected at the production
site while requiring a change of certification at the outbound port for
export, the commodity inspection authority at the production site shall issue
a certificate for the change of inspection certification as specified. The
consignor shall apply to the commodity inspection authority at the port for
checkup by presenting the said certificate and relevant documents within the
specified time limit. For those up to standard through inspection, the
commodity inspection authority at the port shall issue its inspection
certificates instead and the releasing notice or affix a releasing stamp on
the Customs declaration.

    Article 26  For export commodities other than those subject to statutory
inspection, the commodity inspection authorities may carry out random
inspection at regular  or  irregular intervals on the basis of the inspection
by manufacturers and trade units.

    Article 27  For the export commodities found up to standard through
inspection by the commodity inspection authorities, the consignors shall apply
for outbound shipping within 60 days from the date of issuance of the
inspection certificates or releasing notices; for outbound fresh and live
export goods, the consignors shall apply for shipping within the specified
time limit. Any deferment in export requires the consignors to apply to the
commodity inspection authorities for re-inspection.

    Article 28  Enterprises manufacturing packing containers for dangerous
goods for export must apply to the commodity inspection authorities for
performance testing of the packing containers. Only those packing containers
meeting the requirements through testing by the commodity inspection
authorities with performance testing certificates procured shall be permitted
for carrying dangerous goods.  

    Enterprises producing dangerous goods for export must apply to the
commodity inspection authorities for employment testing of the packing
containers. Only those packing containers for dangerous goods meeting the
requirements through testing by the commodity inspection authorities with
employment testing certificates procured shall be permitted to be employed for
carrying dangerous goods for export.

    Article 29  For such means of transportation as vessels’ holds and
containers for carrying perishable foods and frozen goods for export, the
carriers and stuffing units or their agents must, before shipment, apply to
the commodity inspection authorities for inspection on fitness for carrying
the goods in respect to conditions like cleanliness, hygiene, freezing
efficiency, and sealing and tightness. Only those found up to the requirements
with certificates procured shall be allowed for shipment.

    Article 30  Export commodities subject to statutory inspection shall be
released by the Customs against the certificates, notices or the releasing
stamps affixed on the Customs declarations as prescribed in Articles 25, 28,
and 29 of these Regulations.

    Article 31  No commodities for export that are found substandard through
inspection, check-up at the port or random inspection by the commodity
inspection authorities shall be permitted for export.
Chapter IV  Survey of Import and Export Commodities

    Article 32  The commodity inspection authorities, and the inspection
agencies designated by the State Administration for Commodity Inspection or by
the commodity inspection authorities and other inspection agencies approved by
the State Administration for Commodity Inspection may accept the entrustment
of the foreign trade interested parties, relevant units at home and abroad or
foreign inspection agencies for surveying services of import and export
commodities within the specified scope and may issue certificates of survey.

    Article 33  The surveying services of import and export commodities
include:

    (1) quality inspection, quantity and weight survey, packaging survey and
evaluation of weight tonnage of import and export commodities;

    (2) supervision over loading and unloading of import and export
commodities;

    (3) stowage survey, damage survey, cargo damage survey, and average survey
of import and export commodities;

    (4) survey of the cargo worthiness of such means of transportation as
vessels, wagons, vehicles, aeroplanes and containers for the shipping of
export commodities;

    (5) sealing of the vessels’ holds or tanks, hatch survey and ullage
measurement for the shipping of import and export commodities;

    (6) survey of containers and containerized goods;

    (7) estimation and determination of the value, classifications, quality,
quantity and loss of the assets invested by the foreign business bodies
relevant to import and export commodities;

    (8) drawing and sealing of various kinds of samples;

    (9) issuance of certificates of value and other surveying and inspection
certificates; and

    (10) other surveying services for import and export commodities.

    Article 34  Upon the application of foreign trade interested parties, the
commodity inspection authorities may undertake issuance of certificates of
origin in connection with the General System of Preferences (G.S.P) and
general certificates  of  origin according to relevant laws and administrative
regulations.

    Article 35  When foreign trade interested parties intend to apply to the
commodity inspection authorities for  survey services, they shall provide
contracts, letters of credit and other relevant documents.
Chapter V  Supervision and Control

    Article 36  The State Administration for Commodity Inspection and
commodity inspection authorities shall exercise supervision and control over
the inspection work conducted by the inspection agencies and personnel
designated or accredited by the consignees, consignors, manufacturers,  
trading units,  storage and transport units of the import and export
commodities, the State Administration for Commodity Inspection and commodity
inspection authorities.

    Article 37  The State Administration for Commodity Inspection shall, in
the light of the need, conclude quality certification agreements on import and
export commodities with relevant foreign bodies. The commodity inspection
authorities shall conduct quality certification for import and export
commodities according to the relevant agreements or upon entrustment by
relevant foreign bodies. For those import and export commodities and their
manufacturers found qualified through certification, due certificates shall be
issued, and the use of quality certification marks for import and export
commodities shall be allowed. The specific measures shall be formulated by the
State Administration for Commodity Inspection.

    Article 38  In the light of the need, the State shall implement an import
safety license and export quality license system for important import and
export commodities involving safety and hygiene and their manufacturers. The
specific measures shall be formulated by the State Administration for
Commodity Inspection in conjunction with the relevant competent departments
under State Council.  

    No import commodities subject to the import safety license system shall be
allowed for import unless they have been granted an import safety license by
the State Administration for Commodity Inspection.  

    No export commodities subject to the export quality license system shall
be allowed for export unless they have been granted an export quality license
by the State Administration for Commodity Inspection or granted jointly by the
State Administration for Commodity Inspection and the relevant departments
under the State Council.

    Article 39  The State shall implement a hygiene registration system for
the foods for export and their manufacturers (including processing plant,
slaughter-houses, storehouses and cold storage, similarly hereinafter). The
specific measures shall be formulated by the State Administration for
Commodity Inspection in conjunction with the relevant competent departments
under the State Council.  

    Manufacturers of foods for export which are subject to a hygiene
registration system shall apply to the commodity inspection authorities for
hygiene registration; they shall not be allowed to produce, process or store
foods for export unless they have obtained the approval from the State
Administration for Commodity Inspection.  

    Manufacturers of foods for export which need overseas registration shall
apply to the State Administration for Commodity Inspection for unified
handling of the matter after they have gone through registration as stipulated
in the preceding paragraph.

    Article 40  Upon the application of manufacturers of goods for export or
at the request of foreign parties, the commodity inspection authorities shall
assess their quality assurance system. The specific measures shall be
formulated by the State Administration for Commodity Inspection.  

    Article 41  In case the manufacturers of import and export commodities
which have been approved to use certification marks or granted the import
safety license, export quality license or certificates of hygiene registration
are found not up to the specified requirements through re-examination, the
commodity inspection authorities shall instruct them to make improvements
within the specified time limit. If they still fail to meet the specified
requirements beyond the time limit, their qualification for using the
certification marks shall be canceled or their import safety license, export
quality license or certificates of hygiene registration shall be rescinded
subject to the approval by the State Administration for Commodity Inspection.

    Article 42  In the light of the need of inspection work, the commodity
inspection authorities may dispatch inspectors to the manufacturers of export
commodities subject to statutory inspection to undertake supervision over the
quality inspection of the export commodities before their release from the
factories, to conduct examination and supervision over the production and
testing conditions and quality assurance system of the manufacturers, and to
conduct random inspection on raw materials, parts and finished products,
packaging, marking, etc., used for the export commodities.

    Article 43  The commodity inspection authorities may, in the light of the
need, affix commodity inspection marks on the import and export commodities
found up to standard through inspection; and carry out the sealing for the
import and export commodities found up to standard or those that must be
sealed. The making and issuance of the commodity inspection marks and seals
shall be regulated by the State Administration for Commodity Inspection.

    Article 44  The commodity inspection authorities or the inspection
agencies designated or accredited by the State Administration for Commodity
Inspection or commodity inspection authorities shall conduct sampling
inspection of import and export commodities according to relevant
stipulations. The relevant

INTERIM PROVISIONS OF THE MINISTRY OF JUSTICE,THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE ESTABLISHMENT OF OFFICES WITHIN THE TERRITORY OF CHINA BY FOREIGN LAW FIRMS

The Ministry of Justice, the State Administration for Industry and Commerce

Interim Provisions of the Ministry of Justice,the State Administration for Industry and Commerce on the Establishment of Offices within
the Territory of China by Foreign Law Firms

the Ministry of Justice, the State Administration for Industry and Commerce

May 26, 1992

Chapter I General Provisions

Article 1

These Provisions are formulated for the purposes of promoting the foreign economic and trade development and legal affairs exchange
and administering the establishment of offices within the territory of China by foreign law firms.

Article 2

Upon approval of the Ministry of Justice of the People’s Republic of China and with registration at the State Administration for Industry
and Commerce of the People’s Republic of China, foreign law firms may establish their offices within the territory of China.

Article 3

Without approval and registration, no foreign law firm may establish any office within the territory of China and carry out any business
activity permitted by these Provisions. No foreign law firm may engage in a legal service activity in the name of consulting company
or commercial company or any other name.

Article 4

Offices established within the territory of China by foreign law firms (hereinafter referred to as offices of foreign law firms) and
their members must comply with China’s laws and may not harm the State security and social public interests of China and the lawful
rights and interests of Chinese citizens and legal persons.

Article 5

Business activities engaged in by the offices of foreign law firms and their members within the scope of these Provisions are protected
by China’s laws.

Article 6

According to the principle of mutual benefits, if a country to which the foreign law firm belongs allows Chinese law firms establish
offices within its territory, foreign law firms of the said country may establish offices within the territory of China according
to these Provisions.

Chapter II Establishment and Termination

Article 7

A foreign law firm which desires to establish an office within the territory of China shall submit its written application directly
to the Ministry of Justice of the People’s Republic of China or to the department (bureau) of justice in the place where the office
is located for transferring to the Ministry of Justice. The Ministry of justice of the People’s Republic of China examines the application,
makes a decision of approval or disapproval and issues a notice to the applicant within 60 days.

Article 8

A foreign law firm applying to establish an office within the territory of China shall submit the following materials (one original
and two duplicate copies) to the Ministry of Justice of the People’s Republic of China:

(1)

a written application signed by the legal representative or the major partner of the said foreign law firm, which contains:

a.

the name of the firm;

b.

reasons for establishing the office;

c.

basic information about the said foreign law firm;

d.

profiles of the chief representative and other members of the office;

e.

the scope of business;

f.

term and location of the office.

(2)

the legal certificate of business (duplicate) and letter of recommendation issued by the competent organ or organization of the country
to which the foreign law firm belongs;

(3)

power of attorney on the appointment of the chief representative of the office by the said law firm;

(4)

qualification certificates (duplicates) of lawyers dispatched to the office;

(5)

a letter of guarantee for complying with China’s laws and accepting supervision and administration from the relevant departments of
China; and

(6)

laws or documents of the country to which the said law firm belongs on allowing foreign law firms to establish offices in the said
country.

The written application specified in the preceding paragraph must be written in Chinese language, and other materials must be accompanied
with Chinese translations; the documents specified in sub-paragraphs (2), (3) and (4) of the preceding paragraph must be notarized
by the notary organizations of the country to which the foreign law firm belongs, and certified by the embassy or consulate of the
People’s Republic of China in the said country.

Article 9

An applicant shall, within 60 days after receiving the notice of approval, acquire a certificate of approval at the time and place
designated by the Ministry of Justice of the People’s Republic of China.

The applicant shall, within 30 days from the date of issuing the certificate of approval, apply for registration to the State Administration
for Industry and Commerce of the People’s Republic of China, and if no application for registration is filed as scheduled, the certificate
of approval becomes invalid automatically.

Article 10

The name of the office of a foreign law firm shall be called XX Law Firm XX (the city name) Office.

Article 11

The term of the office of a foreign law firm is five years, and upon approval, may be extended after the expiration of the term. The
term is computed from the date of issuing the certificate of registration.

Article 12

If the office of a foreign law firm changes its name, business scope, office location or chief representative, it shall submit a written
application to the organ originally approving its establishment, and after approval, apply to the original registration organ for
change registration within 30 days by presenting the document of approval.

Article 13

If the term of an office of a foreign law firm expires or its business activities are terminated in advance, it shall, 60 days in
advance, submit a written report to the original approval organ and registration organ, and after completing the settlement of its
taxes, debts and other matters, go through cancellation registration at the original registration organ.

Article 14

Foreign law firms assume direct responsibility for taxes and debts of their offices established within the territory of China.

Chapter III Business

Article 15

Offices of foreign law firms and their members may engage in the following business activities:

(1)

to provide consultancy to their clients on laws of the countries approving the lawyers of the said law firms to practice lawyer’s
business and on related international treaties, international commercial laws and international practice;

(2)

to accept authorization from their clients or China s law firms to handle legal affairs in the countries which have approved the lawyers
of the said law firms; and

(3)

to represent for foreign clients and to entrust China’s law firms to handle legal affairs within the territory of China.

Article 16

Offices of foreign law firms and their members may not engage in the following business activities:

(1)

to act as agent on Chinese legal affairs;

(2)

to interpret China s laws to their clients; or

(3)

other business activities not allowed by China’s laws for foreigners to engage in.

Article 17

Hiring of employees by offices of foreign law firms are handled with reference to the relevant provisions on the administration of
employees of permanent representative organizations of foreign enterprises.

Offices of foreign law firms may not employ Chinese lawyers.

Article 18

When engaging in business activities, offices of foreign law firms may charge fees from their clients. Fees charged from business
activities within the territory of China shall be settled within the territory of China. Their charging methods and standards must
be reported to the approval organ and registration organ for the record.

Chapter IV Administration

Article 19

The Ministry of Justice of the People’s Republic of China is the government department in charge of the administration of offices
of foreign law firms, exercises unified administration, supervision and inspection of business activities of offices established
in China by foreign law firms.

The Ministry of justice of the People’s Republic of China authorizes the departments (bureaus) of Justice of provinces, autonomous
regions and municipalities directly under the Central Government in the places where the offices of foreign law firms are located
to administer, supervise and inspect business activities of offices of foreign law firms according to these Interim Provisions.

Article 20

Offices of foreign law firms and their members shall follow China’s laws in carrying out their activities of entry and exit, residence,
taxation, foreign exchange, financial accounting and other fields, and accept the administration and supervision from the competent
organs of the Chinese government.

Article 21

Foreign law firms shall pay application fees to the approval organs when applying to establish offices within the territory of China,
and shall pay registration fees to the registration organs when applying for registration.

Article 22

Offices of foreign law firms must, prior to January 30 each year, submit their reports in Chinese language on their business activities,
financial revenues and expenditures, tax payment and other related information in the preceding year (in three copies) to the local
departments (bureaus) of justice.

The office of a foreign law firm must, 30 days prior to the expiration of the Registration Certificate issued by the registration
organ, apply to the State Administration for Industry and Commerce for a replacement of certificate.

Article 23

If an office of a foreign law firm violates these Provisions, the Ministry of Justice of the People’s Republic of China or its authorized
department (bureau) of justice of the province, autonomous region or municipality directly under the Central Government may give
such sanctions as warning, order for suspension of business or revocation of the approval according to the seriousness of the circumstance;
and the State Administration for Industry and Commerce of the People’s Republic of China or its authorized local administrative organ
for industry and commerce may give such sanctions as fine, confiscation of illegal gains or revocation of its registration in accordance
with laws and regulations governing the administration for industry and commerce.

Chapter V Supplementary Provisions

Article 24

The establishment of permanent representatives within China by foreign law firms is governed by applying mutatis mutandis these Interim
Provisions.

Article 25

The establishment of offices or permanent representatives in the Chinese mainland by law firms from Hong Kong and Macao is governed
by reference to these Interim Provisions for the time being.

Article 26

The Ministry of Justice of the People’s Republic of China is responsible for the interpretation of these Interim Provisions.

Article 27

These Interim Provisions shall enter into force as of the date of promulgation.



 
The Ministry of Justice, the State Administration for Industry and Commerce
1992-05-26

 






PROTECTION OF MINORS

Law of the People’s Republic of China on the Protection of Minors

    

(Adopted at the 21st Meeting of the Standing Committee of the Seventh National People’s Congress on September 4, 1991, promulgated
by Order No. 50 of the President of the People’s Republic of China on September 4, 1991 and effective as of January 1, 1992)

CHAPTER I GENERAL PROVISIONS

CHAPTER II PROTECTION BY THE FAMILY

CHAPTER III PROTECTION BY THE SCHOOL

CHAPTER IV PROTECTION BY THE SOCIETY

CHAPTER V JUDICIAL PROTECTION

CHAPTER VI LEGAL RESPONSIBILITY

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 1 This Law is enacted in accordance with the Constitution for the purpose of protecting the physical and mental health of
minors, safeguarding their lawful rights and interests, promoting their all- round development-morally, intellectually and
physically, and training them into successors to the socialist cause with lofty ideals, sound morality, better education
and a good sense of discipline.

   Article 2 Minors as used in this Law refer to citizens under the age of eighteen.

   Article 3 The State, society, schools and families shall educate minors in ideals, morality, culture, discipline and legal system as well
as in patriotism, collectivism, internationalism and communism, foster among them the social ethics of loving the motherland,
the people, labour, science and socialism, and fight against the corrosive influences of bourgeois, feudal and other decadent
ideologies.

   Article 4 The protection of minors shall follow the following principles:

(1) Safeguarding the lawful rights and interests of minors;

(2) Respecting the personal dignity of minors;

(3) Fitting in with the characteristics of minors’ physical and mental development; and

(4) Combining education with protection.

   Article 5 The State shall protect the rights of the person and property as well as other lawful rights and interests of minors from violation.

To protect minors is the common responsibility of State organs, armed forces, political parties, social organizations,
enterprises and institutions, self-governing organizations of mass character at grass- roots levels in urban and rural areas,
guardians of minors and other adult citizens.

Any organization or individual shall have the right to dissuade or stop any act encroaching upon the lawful rights and interests
of minors, or report to or complain before a department concerned thereagainst.

The State, society, schools and families shall educate and help minors to safeguard their lawful rights and interests by legal
means.

   Article 6 State organs at the central and local levels shall, within the scope of their functions and responsibilities, ensure the protection
of minors.

The State Council and the people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government shall adopt organizational measures according to needs to coordinate the departments concerned
in their efforts to ensure the protection of minors.

The Communist Youth League organs, women’s federations, trade unions, youth federations, students’ federations, young pioneers’
organizations and other social organizations shall assist the people’s governments at various levels in ensuring the protection
of minors and safeguarding their lawful rights and interests.

   Article 7 The people’s governments at various levels and departments concerned shall give awards to organizations and individuals that
have made outstanding achievements in the protection of minors.

CHAPTER II PROTECTION BY THE FAMILY

   Article 8 The parents or other guardians of minors shall fulfil their responsibility of guardianship and their obligations according to
law to bring up the minors. They shall not maltreat or forsake the minors, nor shall they discriminate against female
or handicapped minors. Infanticide and infant-abandoning shall be forbidden.

   Article 9 The parents or other guardians of minors shall respect the minors’ right to receive education, must ensure to the minors of
school age the compulsory education as provided by relevant regulations, and shall not make minors receiving compulsory
education at school discontinue their schooling.

   Article 10 The parents or other guardians of minors shall cultivate the minors in sound ideology and conduct by appropriate methods, guide
them to undertake activities that are conducive to their physical and mental development, prevent and stop them from smoking,
excessive drinking, leading a vagrant life, gambling, drug-taking or prostitution.

   Article 11 The parents or other guardians of minors may not permit or force the minors to marry, nor may they undertake an engagement for
the minors.

   Article 12 The parents or other guardians of minors who refuse to perform their duties as guardians or encroach upon the lawful rights
and interests of the minors under their guardianship shall bear the responsibility therefor according to law.

Where the parents or other guardians of minors commit any act specified in the preceding paragraph and refuse to mend their
ways after education, the people’s court may, upon application by the person(s) or unit(s) concerned, disqualify them as guardians
and designate guardians anew in accordance with the provisions in Article 16 of the General Principles of the Civil Law.

CHAPTER III PROTECTION BY THE SCHOOL

   Article 13 Schools shall comprehensively implement the State policy for education and conduct moral, intellectual, physical, aesthetic
and labour education among the minor students, and give them guidance in social life as well as education in puberty knowledge.

Schools shall show concern for and take good care of the minor students; with respect to those who have shortcomings in conduct
or difficulties in study, schools shall give patient education and help, and may not discriminate against them.

   Article 14 Schools shall respect the minor students’ right to receive education and may not arbitrarily expel any minor students from schools.

   Article 15 Teaching and administrative staff in schools and kindergartens shall respect the personal dignity of the minors, and
may not enforce corporal punishment or corporal punishment in disguised forms, or any other act that humiliates the personal
dignity of the minors.

   Article 16 Schools may not let the minor students engage in any activity in school buildings or in any other educational and teaching facilities
that are dangerous to their personal safety and health.

No organization or individual may disrupt the order of teaching in schools, occupy or damage school ground, housing and installations.

   Article 17 Collective activities organized by schools and kindergartens for minor students and children, such as taking part in rallies,
recreational activities and social practices, shall be conductive to the sound growth of minors; accidents endangering personal
safety shall be prevented.

   Article 18 In respect of minors who are sent to work-and-study schools to receive compulsory education pursuant to relevant regulations of
the State, the work-and-study schools shall conduct among such minors ideological, cultural, labour skill and vocational
education.

Teaching and administrative staff in work-and-study schools shall show concern for, take good care of and respect the students
and may not discriminate against or detest such students.

   Article 19 Kindergartens shall do a good job in nursing care and education so as to promote the harmonious development of the children
in physique, intellectual ability and moral values.

CHAPTER IV PROTECTION BY THE SOCIETY

   Article 20 The State shall encourage social organizations, enterprises, institutions and other organizations and citizens to hold various
forms of social activities that are conducive to the sound growth of minors.

   Article 21 People’s governments at various levels shall create conditions to establish and improve places and facilities suited to
the needs of minors for cultural life.

   Article 22 Museums, memorial halls, scientific and technological centres, cultural centres, cinemas and theatres, stadiums
and gymnasiums, zoos, parks and other similar places shall be open to secondary school students and primary school
pupils on preferential basis.

   Article 23 In respect of places, such as commercial dancing halls that are not appropriate for minors to take part in the activities therein,
the competent departments and business managers shall take measures to ensure that no admission shall be given to minors.

   Article 24 The State shall encourage units of the press, publication, broadcasting, film and television, art and literature, as well
as writers, scientists, artists and other citizens to create or provide works beneficial to the sound growth of minors.
The State shall render support to the publication of books, newspapers, magazines and audio- visual products specially catering
to minors.

   Article 25 It shall be strictly prohibited for any organization or individual to sell, rent, or disseminate by any other means to minors,
books, newspapers, magazines or audio-visual products of pornography, violence, wanton killing and terror that are pernicious
to minors.

   Article 26 Food, toys, utensils and amusement facilities for children may not be harmful to children’s safety and health.

   Article 27 No person may smoke in the classrooms, dormitories and recreational rooms of secondary and primary schools, kindergartens,
as well as any other indoor places where minors gather for activities.

   Article 28 No organization or individual may hire any minor under the age of sixteen, except as otherwise provided by the State.

Any organization or individual that recruits according to relevant regulations of the State minors over the age of sixteen
but under eighteen shall, in respect of the types of jobs, duration of time and intensity of labour as well as protective
measures, follow the relevant regulations of the State and may not assign them to any overstrenuous, poisonous or harmful labour
or any dangerous operation.

   Article 29 In respect of minors who wander about and go begging or those who flee from their homes, the civil affairs departments or
other departments concerned shall take the responsibility to send them back to their parents or other guardians; with regard
to those whose parents or guardians cannot be ascertained for the time being, the welfare organizations for children
established by the civil affairs departments shall accept and take care of them.

   Article 30 No organization or individual may disclose the personal secrets of minors.

   Article 31 No organization or individual may conceal, destroy or discard mail of any minor. Except when the inspection of mail in accordance
with legal procedures by the public security organs or the people’s procuratorates is necessary for the investigation
of a criminal offence, or when the opening of mail of a minor without capacity is done on his or her behalf by the parents
or other guardians, no organization or individual may open mail of any minor.

   Article 32 Departments of public health and schools shall provide minors with necessary sanitary and health-care conditions and make efforts
to prevent diseases.

   Article 33 Local people’s governments at various levels shall make efforts to develop child-care undertakings and strive to run nurseries
and kindergartens well, encourage and support State organs, social organizations, enterprises and institutions as well
as other sectors of society to establish nursing rooms, nurseries and kindergartens, advocate and support the establishment
of household nurseries.

   Article 34 Departments of public health shall, in relation to children, establish a preventive inoculation certificate system, make efforts
to prevent common and frequently-occurring diseases among children, strengthen supervision and control over the prevention
and treatment of infectious diseases and give more effective professional guidance to sanitation and health-care work in nurseries
and kindergartens.

   Article 35 People’s governments at various levels and departments concerned shall, through various forms, foster and train child-care
and teaching staff in nurseries and kindergartens, and strengthen political, ideological and professional education thereto.

   Article 36 The State shall protect according to law the intellectual achievements and the right of honour of minors from encroachment.

For minors who have shown unusual talent or made outstanding achievements, the State, society, families and schools
shall create conditions favourable to their sound development.

   Article 37 In respect of minors who have completed the prescribed length of schooling in terms of compulsory education and will not
receive education at a higher level, the relevant governmental departments, social organizations, enterprises and institutions
shall, in line with the actual conditions, train them in vocational skills and create conditions for their engagement
in labour or employment.

   Article 38 In respect of delinquent minors, the policy of education, persuasion and redemption shall be implemented and the principle
of taking education as the main method and punishment as the subsidiary shall be upheld.

   Article 39 In respect of minors reaching the age of fourteen who have committed crimes but are not subject to criminal punishment because
they have not yet reached the age of sixteen, their parents or other guardians shall be ordered to subject them
to discipline; when necessary, such minors may also be taken in for rehabilitation by the government.

   Article 40 Public security organs, people’s procuratorates and people’s courts shall, in dealing with cases involving crimes committed
by minors, take their physical and mental characteristics into consideration, and may, in line with needs, set
up special organs or designate special persons to handle such cases.

Public security organs, people’s procuratorates, people’s courts and reformatories for juvenile delinquents shall respect
the personal dignity of the delinquent minors and safeguard their lawful rights and interests.

   Article 41 Public security organs, people’s procuratorates and people’s courts shall guard minors under custody, pending trial, separately
from adults under custody.

Minors who are sentenced to fixed-term imprisonment by the people’s courts shall be housed and guarded separately from adults
serving their sentences.

   Article 42 All cases involving crimes committed by minors over fourteen years old but under sixteen shall not be tried publicly. Cases involving
crimes committed by minors over sixteen years old but under eighteen shall, in general, not be tried publicly.

With regard to cases involving crimes committed by minors, the names, home addresses and photos of such minors as well as other
information which can be used to deduce who they are, may not be disclosed, before the judgment, in news reports, films,
TV programmes and in any other openly circulated publications.

   Article 43 The families, schools and other units concerned shall coordinate, in educating and redeeming the delinquent minors, with
the reformatories for juvenile delinquents and other similar units where the delinquent minors are held.

   Article 44 Minors who are exempt from prosecution by the people’s procuratorates, from criminal punishment by the people’s courts, or
the execution of whose sentence is announced suspended by the people’s court, and minors who have been released from
reformatory custody or have served their terms of imprisonment shall not be discriminated against in respect of resuming
schooling, entering a higher school or employment.

   Article 45 The people’s courts shall, in handling cases concerning inheritance, protect the minors’ right of inheritance according to
law.

In handling cases of divorce, if disputes arise between the two parties concerned over the support of the minor child or
children and no agreement can be reached, the people’s courts shall make judgment in accordance with the principle of
safeguarding the rights and interests of the child or children and in light of the specific conditions of the two parties concerned.

   Article 46 Where the lawful rights and interests of a minor is infringed, the infringed or his or her guardians shall have the right
to request the department concerned to deal with the matter or bring a suit in a people’s court according to law.

   Article 47 Whoever has encroached upon the lawful rights and interests of a minor and caused him or her losses in property or other losses
or harms shall compensate for the losses or bear other civil liabilities according to law.

   Article 48 Where teaching and administrative staff in schools, nurseries or kindergartens subject minor students or children to corporal
punishment or corporal punishment in disguised forms, and if the circumstances are serious, disciplinary sanctions
shall be given by their units or the authorities at higher levels.

   Article 49 Where enterprises, institutions or individual industrialists and businessmen illegally hire minors who have not reached the
age of sixteen, the relevant labour departments shall order such units or individuals to make corrections and shall impose
fines on them; if the circumstances are serious, the relevant administrative departments for industry and commerce shall revoke
their business licenses.

   Article 50 Where commercial dancing halls or other similar places not appropriate for minors to participate in the activities therein
give admission to minors, the competent departments shall order such units to make corrections, and may impose fines on them.

   Article 51 Whoever sells, rents or disseminates by any other means to minors pornographic books, newspapers, magazines or audio-visual
products shall be given heavier punishment according to law.

   Article 52 Where an encroachment upon the right of the person or other lawful rights of a minor constitutes a crime, criminal responsibility
shall be investigated according to law.

Whoever maltreats a minor family member in a vicious manner shall be investigated for criminal responsibility in accordance
with the provisions in Article 182 of the Criminal Law.

Judicial personnel who, in violation of the rules or regulations on prison management, subject imprisoned minors to corporal
punishment or maltreatment, shall be investigated for criminal responsibility in accordance with the provisions in Article
189 of the Criminal Law.

Where a person has the obligation to support a minor but refuses to do so, and if the circumstances are flagrant, criminal responsibility
shall be investigated in accordance with the provisions in Article 183 of the Criminal Law.

Whoever commits infanticide shall be investigated for criminal responsibility in accordance with the provisions in Article
132 of the Criminal Law.

Whoever, while fully aware of the school buildings being in danger of collapse, does not take any measures, thus resulting in
the collapse of the said buildings and causing injuries or death, shall be investigated for criminal responsibility in accordance
with the provisions in Article 187 of the Criminal Law.

   Article 53 Whoever instigates a minor to break law or commit criminal offences shall be given heavier punishment according to law.

Whoever lures, instigates or forces a minor to take or inject drugs or engage in prostitution shall be given heavier punishment
according to law.

   Article 54 A party concerned, if not satisfied with the decision on administrative sanctions made according to this Law, may first apply
for reconsideration to an administrative organ at a higher level or to an administrative organ prescribed by relevant laws
or regulations. If still not satisfied with the reconsideration decision, the party may bring a suit in a people’s court.
The party may also directly bring a suit in a people’s court. Where the relevant laws or regulations prescribe that
the party concerned shall first apply to the administrative organ for reconsideration, and, if not satisfied with the
reconsideration decision, then bring a suit in a people’s court, such laws or regulations shall be complied with.

If a party, within the prescribed period, neither applies for reconsideration of the decision on administrative sanctions,
nor brings a suit in a people’s court, nor complies with the decision, the organ which has made the punitive decision may
either apply to a people’s court for compulsory execution, or enforce the decision according to law.

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 55 Departments concerned under the State Council may formulate on the basis of this Law relevant regulations, which shall be submitted
to the State Council for approval before implementation.

The standing committees of the people’s congresses of the provinces, autonomous regions and municipalities directly under
the Central Government may, on the basis of this Law, formulate measures for implementation.

   Article 56 this law shall enter into force as of January ,1, 1992.

    





PROVISIONAL RULES ON ADMINISTRATION OF ALLOCATED LAND USE RIGHT

Provisional Rules on Administration of Allocated Land Use Right

     (Effective Date:1992.03.08–Ineffective Date:)

   Article 1. With a view to implementing “PRC Regulations on Leasing and Transferring of the Right to Use State-owned Urban and Rural Land” (hereinafter
referred to as “Regulations”) and strengthening the administration of allocated land use right, these rules are formulated.

   Article 2. Allocated land use right denotes the right to use State-owned land procured by land users through means other than land-use right
transference.

   Article 3. These rules are applicable to the transferring, leasing and mortgaging of the right to use allocated land (hereinafter referred to
as land use right).

   Article 4. The land administrations of the people’s governments above the county level shall control and supervise in accordance with law the
transferring, leasing and mortgaging of land use right.

   Article 5. Land users who have not got approval from land administrations of municipal or county people’s governments and fail to go through
procedures for the leasing of land use right and pay lease fees shall not transfer, lease or mortgage land use right.

   Article 6. Land users conforming to the following conditions may transfer, lease and mortgage land use right upon approval by land administrations
of municipal or county people’s governments:

a. They are corporations, enterprises, other economic entities and individuals;

b. Bearer of State-owned land use right certificate;

c. Bearer of legal documents of premises and other attached structures and properties on land; and

d. Those who sign land use right leasing contract in accordance with the “Regulations” and these rules and pay lease fees to municipal
or county people’s governments or turn over benefits from the transfer, leasing or mortgaging of rights in lieu of lease fees.

   Article 7. The transfer of land use right denotes the transfer to others of land use right or the right along with the premises and other attached
structures and properties on the land in question by land users.

The original owner of the land use right is the transferor and the party that receives the land use right is the transferee.

   Article 8. Ways of land use right transfer cover sales, exchange, donations, etc.

Sale means that the transferor trades land use right for given benefits.

Exchange means the exchange of land use rights among land users.

Donation means that the transferor transfers land use right gratis to the transferee.

   Article 9. Leasing of land use right means that land users lease land use right or the right along with the premises and other attached structures
and properties on the land in question to others for rents.

The original owner of land use right is the lessor and the party that rents the right is the lessee.

   Article 10. Mortgaging of land use right means that land users mortgage mortgageable land use rights as a guarantee for clearance of debts.

The original owner of the land use right is the mortgagor and the mortgage holder is the mortgagee.

   Article 11. In transferring and mortgaging land use right, ownership of the premises and attached structures and properties on the land in question
is correspondingly transferred and mortgaged; in transferring and mortgaging ownership of the premises and attached structures and
properties, the land use right covered by their use is correspondingly transferred and mortgaged. The transfer of premises and other
attached structures as movable estate is an exception.

In leasing land use right, the use right of the premises and attached structures on land is correspondingly leased; in leasing the
use right of the premises and attached structures, the land use right covered by their use is correspondingly leased.

   Article 12. Land users who transfer, lease or mortgage land use right must bear State-owned land use certificate and legal documents of the premises
and attached structures and properties and apply in written form to land administrations of local municipal or county people’s governments.

   Article 13. Land administrations of municipal or county people’s governments must give a reply in 15 days as of the date of receipt of written
applications for transferring, leasing or mortgaging land use right.

   Article 14. Land administrations of municipal or county people’s governments, through negotiations, sign land use right transfer contract with
the applicant.

   Article 15. Both parties involved in transfer, leasing or mortgaging of land use right shall, in accordance with relevant laws, decrees and the
land use right leasing contract, sign a contract on transfer, leasing or mortgaging of land use right.

   Article 16. Land users shall, within 60 days after the signing of land use right leasing contracts, pay lease fees to local municipal or county
people’s governments and have the land use right leasing registered at the land administrations of the municipal or county people’s
governments.

   Article 17. Both parties shall, within 15 days after the registration of a land use right lease, go to land administrations of municipal or county
people’s governments to have the transfer, leasing or mortgaging of land use right registered.

To get them registered, it is necessary to present the following documents and materials:

a. Certificate of State-owned land use;

b. Land use right leasing contract;

c. Contract on transfer, leasing and mortgaging of land use right; and

d. Other documents and materials deemed necessary by the land administrations of the municipal or county people’s governments.

   Article 18. When land use right is transferred, the rights and obligations recorded in the land use right leasing contract and the registration
documents are correspondingly transferred.

   Article 19. In leasing and mortgaging land use right, the lessor or mortgagor must continue to implement the land use right leasing contract.

   Article 20. After land use right is transferred, if the lessee has the need to change the contents as defined in the land use right leasing contract,
must get consent from the land administrations of the local municipal or county people’s governments and, in accordance with the
approving authority, the approval of the land administrations and urban planning departments and, in accordance with “Regulations”
and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration formalities.

   Article 21. After land use right is leased, the lessee must not add permanent premises and structures. If it is necessary to build interim premises
and structures, the lessee must get consent from the lessor and go through relevant approval formalities in accordance with relevant
laws and regulations.

After land use right is leased, if the lessee has the need to change the content as defined in the land use right leasing contract,
the lessee must get consent from the lessor and approval from the land administrations and urban planning departments in accordance
with “Regulations” and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration
formalities.

   Article 22. After the termination of the land use right leasing contract, the lessor shall, within 15 days as of the date of termination of the
contract, go to the original registration office to cancel the land use right leasing registration.

   Article 23. After the termination of the land use right mortgaging contract, the mortgagor shall, within 15 days as of the date of termination
of the contract, go to the original registration office to cancel the land use right mortgaging registration.

   Article 24. If the mortgagor fails to honor his debt due, or the mortgagor is disbanded or goes bankrupt during the effective period of the mortgaging
contract, the mortgagee has the right, in accordance with State laws and decrees and the mortgaging contract, to dispose of the mortgaged
properties.

Land users who procure land use right through disposing of mortgaged properties must, within 15 days of the date of procurement of
the right, go through formalities to change land registration at the land administrations of the local municipal or county people’s
governments.

   Article 25. When land users who are transferring, leasing or mortgaging the land use right are going through procedures to lease land use right,
the land use right leasing period must be clearly determined through negotiations between the land administrations of the local municipal
or county people’s governments and land users and recorded in the land use right leasing contract and must not exceed the maximum
length of period as defined in the “Regulations”.

   Article 26. Land use right leasing fees are charged in accordance with different means of transferring, leasing or mortgaging to a given proportion
of the listed land price, with the lowest no less than 40% of the listed land price. The listed land price is determined by the land
administrations of the local municipal or county people’s governments by referring to the basic land price, the term of transferring,
leasing or mortgaging the land use right and land conditions.

   Article 27. Land use right fees are collected and managed in accordance with relevant State regulations by land administrations of local municipal
or county people’s governments on behalf of the government.

   Article 28. When the lease term of the land use right is due, land users must, with 15 days as of the date of maturity of the term, bear the
State land use certificate and land use right leasing contract and go to the original registration office to cancel the leasing registration.

   Article 29. After the lease term of the land use right is due, if land users transfer, lease or mortgage the land use right again, they shall,
in accordance with these rules, re-sign land use right leasing contract, pay lease fees and go through formalities to change land
registration.

   Article 30. During the period of land use right leasing, the State, under special circumstances and in accordance with the public interest, may
recover through legal procedures the land use right and pay corresponding compensations according to the length of use and the degree
of development and utilization by land users.

   Article 31. If land users fail to pay all lease fees within the period as prescribed in the land use right leasing contract, the lessor has the
right to cancel the contract and may ask the violator of the contract to compensate.

   Article 32. If a land user fails to go through formalities for land registration in transferring, leasing and mortgaging land use right, his
deed shall be invalid and unprotected by law.

   Article 33. Units and individuals who transfer, lease or mortgage land use right without approval shall be dealt with by land administrations
of local municipal or county people’s governments according to Article 46 of the “Regulations”.

   Article 34. If an involved party does not agree with administrative punitive decisions by land administrations, it may bring a suit to the local
people’s court in accordance with “PRC Administrative Procedural Law”.

   Article 35. Land administrations of people’s governments above the county level should strengthen supervision over and examination of the transferring,
leasing and mortgaging of land use right and handle in time violations of law.

   Article 36. When land administrations are checking or examining the transferring, leasing or mortgaging of land use right, the units or individuals
under examination shall cooperate, report factually and present relevant documents and materials and must not obstruct the execution
of such examinations.

   Article 37. In supervision and examination, land administrations may take the following measures:

a. To check or copy documents or materials;

b. To ask the units or individuals under supervision or examination to present or send documents and materials and other information
relating to supervision and examination; and

c. To order the units or individuals to stop land-related acts underway that violate the law.

   Article 38. The expenses of land administrations in handling leasing of land use right are covered according to relevant State regulations.

   Article 39. Organizations other than economic entities engaged in transferring leasing or mortgaging land use right are handled in the light
of these rules.

   Article 40. Collaboration with others in building houses and running joint ventures with land use right as the condition is deemed as transfer
of land use right and handled according to these rules.

   Article 41. Land administrations of municipal or county people’s governments should organize task forces to check up on the unauthorized acts
of transferring, leasing or mortgaging land use right executed in the period after the “Regulations” was put into force and before
these rules come into effect and have them go through formalities for leasing as a complementary measure after being punished according
to “Regulations”.

   Article 42. The right to interpret these rules rests with the State Land Administration.

   Article 43. These rules come into force as of the date of promulgation.

    





DECISION OF THE CENTRAL COMMITTEE OF THE COMMUNIST PARTY OF CHINA AND THE STATE COUNCIL ON ACCELERATING DEVELOPMENT OF TERTIARY INDUSTRY

Category  GENERAL Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-06-16 Effective Date  1992-06-16  


Decision of the Central Committee of the Communist Party of China and the State Council on Accelerating Development of Tertiary Industry


I. Accelerating Development of the Tertiary Industry is of Great Strategic
II. The Goal and Key Areas of the Tertiary Industry to be Quickly
III. Main Policies and Measures for Development of the Tertiary Industry

(June 16, 1992)

    With a view to taking advantage of the present opportunity, speeding up
steps of reform and opening up, concentrating efforts to facilitate
economic construction and in accordance with the Ten-Year Programme and Eighth
Five-Year Plan on National Economic Development and Social Progress, the
tertiary industry should be developed comprehensively and swiftly.
I. Accelerating Development of the Tertiary Industry is of Great Strategic
Significance

    1. Speedy development of the tertiary industry is the necessary result of
the growth of productivity and social progress. The situation of the tertiary
industry is an important indicator by which economic development is
measured in a modern society. The tertiary industry of our country suffers
slow and backward development which falls short of demands of national
economic development. The law of economic development observed in many
countries indicates that when an economy is developed to certain level,
the tertiary industry normally enjoys more speedy development than the first
and secondary industries and obviously plays a role of impetus to the overall
growth of national economy. Our country has just entered that stage. With a
view to smoothly realizing the gigantic objectives of socialist modernization,
we must catch up with the opportunity and promote development of the tertiary
industry to a new level.

    2. Acceleration of the development of the tertiary industry can facilitate
the forthcoming of a fully developed market, improve socialization and
standardization of service industry, strengthen social security and be
beneficial to smooth implementation of a series of reforms in respect to
labour, wage, price, operational mechanism in enterprises and the
circulation system, and be beneficial to further opening up, attraction of
larger foreign investment, institutional simplification, efficiency growth
and to gradual change of the undesirable status quo that government
agencies, institutions and enterprises take on what ought to be done by
the society. Consequently the tertiary industrial development can create
better conditions for development of reform and opening up in a broader and
in-depth area.

    3. Our country suffers low industrial economic efficiency, low
commercialization of agricultural products, retarded circulation and
financial difficulties which has severely impeded further development of
the national economy. One of the important reasons for which those problems
arise is the ill structure of the whole economy, which can be indicated by
the fact that the tertiary industry falls short of demands of the first and
secondary industries. Even low investment in the tertiary industry can
create immediate efficiency and good social effect. To quicken development of
the tertiary industry can, on one hand, readjust ratio of three
industries and optimize the overall structure of national economy and, on the
other hand, effectively alleviate in-depth structural contradictions of the
economic life and promote faster economic growth.

    4. The 1990s sees large number of new grown-up labour and those labour
that are removed from the first and secondary industries waiting for
reemployment. The tertiary industry has particular advantages in recruitment
of labour; variety of trades and occupations; co-existence of labour;
technology and knowledge concentrated professions which can recruit large
number of various personnel of different levels, especially large number of
technological and specialized talents. To accelerate development of the
tertiary industry is a major solution to alleviation of employment pressure
which is becoming more and more serious in our country.

    5. Towards the end of this century our people’s lives will become fairly
better off. Compared with the living standard of sufficient food and
clothing, the level of well-to-do livelihood does not only mean certain
standards of income already satisfied, but more importantly it should be
measured in terms of commercialization of services and living quality of
residents. Along with economic development and increase of income, the
people are asking for more and higher demands not only upon material life in
respect to clothing, food, housing, transportation, communication, hygiene and
living environment, but also upon cultural life in respect to cultural
entertainment, broadcasting, movies and TV programmes, publications, physical
training and recuperation, and tourism. Only when the tertiary industry is
quickly developed could the ever increasing material and cultural demands of
the people be satisfied and the construction of the socialist material and
cultural, ethical civilization be advanced.
II. The Goal and Key Areas of the Tertiary Industry to be Quickly
Developed

    6. In the light of national circumstances, we have categorized national
economy into three productive industries with agriculture being the first
productive industry, manufacture and construction the secondary industry
and all trades other than the abovementioned being categorized as the
tertiary industry including circulation departments, departments that
serve production and livelihood and departments that provide services for
improvement of science and culture awareness and quality of citizens.

    7. The goal of accelerating the tertiary industry development is to
gradually establish, in about ten years or longer times, an integrated
socialist market system, a comprehensive socialized service system in both
cities and countryside and a social security system, all of which are adapted
to circumstances of our country. In 1990s, development of the tertiary
industry should enjoy higher speed than before along with development of the
first and secondary industries so that the overall national economy could be
brought to a new stage every couple of years. For this purpose, the tertiary
industry should enjoy development at higher speed than the first and secondary
industries. The proportion of the tertiary industry value to GNP and the
proportion of the employment in the tertiary industry to the total social
labour should be brought up to or nearly to the average level of that
proportion in developing countries.

    8. Key areas of the tertiary industry to be developed at high speed are
specified as the following:

    — Firstly, trades which require small investment but generate immediate
result and high efficiency, have large capacity of labour recruitment and
direct relevance to economic development and people’s livelihood. Such trades
mainly refer to those in commerce, goods and materials, external trade,
banking, insurance, tourism, real estate, storehousing, neighborhood services,
catering, entertainment, hygiene, etc.;

    — Secondly, those newly developed trades related to scientific and
technological progress, which mainly consist of consultancy (including
consultancy in science and technology, law, accounting and auditing, etc.),
information and various technical services, etc.;

    — Thirdly, the tertiary industry in countryside, which mainly refer to
those trades that provide services before, during and after harvest or offer
services for improvement of farmers quality and living standards;

    — Fourthly, those basic trades that have comprehensive influence upon
and guiding significance for development of national economy, including
communication and transportation, posts and telecommunications, scientific
research, education and other public undertakings, etc..
III. Main Policies and Measures for Development of the Tertiary Industry

    9. All positive factors including the state, collectives and individuals
should be fully mobilized. Economic collectives, private-run enterprises
and individuals in both cities and countryside should be given free rein to
develop those trades which are small in investment, quick in result,
concentrated with labour and directly serve production and livelihood. The
trades that have comprehensive influence upon and guiding significance
to national economic development should be mainly run by the state, but
competition should be introduced so that under uniform planning and
management localities, departments and economic collectives could also be
mobilized to establish such trades. The acceleration of the tertiary industry
development should principally depend on social forces subject to the
principle of “whoever invest will hold the ownership and be the beneficiary”.
The state should not be dependent upon too much for investment.

    10. Acceleration of steps for development of the tertiary industry should
depend upon deepening reform and further opening up. Reforms and trials in
different forms should be conducted actively. Overseas funds, technologies
and marketing channels should be utilized boldly. Multiple approaches and
methods such as issue of stocks and bonds should be adopted to collect
funds. The form of business groups should be promoted actively so that
limits of departmental, regional or trade ownership could be broken through
and national and regional enterprise groups in the tertiary industry could
be established to the benefit of accelerated development of the tertiary
industry. All practices that are proved by reality to be effective should
be spread as soon as possible. Those that do not bring forth obvious
result should be tried continuously. Those practices that are proved really
unsuccessful should be changed to other forms.

    11. A vital self-development mechanism oriented to industrialization
should be established for the tertiary industry progress. Most of the tertiary
industry organizations should be transformed to business entities or
operated in business manner and try to be independent in operation and
responsible for both wins and losses. Most of the present tertiary industry
organizations which are charity like or public welfare or public undertaking
like should be gradually transformed into business entities under corporate
management.

    12. Where conditions permit, present information, consultancy
institutions and internal service installments and transport vehicles
attached to state organs or enterprises and public institutions should, to
the direction of socialization, be open, in an active manner, to the society
for paid services subject to confidential and safety requirements. Conditions
should be created to make those institutions to be divorced from their
original units, to be independent in operation and accounting. At the same
time social service organizations should be encouraged to contract rear
services, management of retired personnel and other routine work of state
organs, enterprises and public institutions. The close self-service systems
which are often ” big and complete” or “small but complete” should be broken.
Abovementioned services should be socialized gradually.

    13. Enterprises of the tertiary industry should be encouraged to attempt
transdepartmental, transregional or conglomerate merger of other industrial
enterprises that should be closed, suspended, merged or changed in line of
production, and should be rendered preferential support in terms of assets
transfer, liability settlement, credit and taxation. This should be an
important measure for readjustment of industrial structure.

    14. Part of administrative personnel should be actively encouraged to be
separated from administration and to enter trades of services. Those people
that have been separated should be divorced from the administrations. Those
trades that serve production and people’s lives should be developed
vigorously and should recruit as many personnel separated from
administration as possible so that conditions could be created for smooth
progressing of government organizational reform and staff reduction.

    15. To advance reform in labour and personnel system, the tertiary
industry enterprises should be offered discretion with labour employment. The
practice of discharge and resignation should be institutionalized gradually
so as to realize mutual selection in employment. Those institutions that
are operated in business manner and no longer need financial allocation
should be given freedom in recruitment of personnel and independence in
determination of staff size. Those institutions that only partially
depend upon financial allocation should be given more freedom in expansion
of staff size. Surplus labour with industrial enterprises, especially those
skilled personnel, should be encouraged to move to the tertiary industry.
Graduates from colleges and training schools and armymen to be transferred to
civilian work should be encouraged to work in units of the tertiary industry.

    16. Price system should be reformed according to the law of value so that
the long standing problem of insufficient value compensation for the
tertiary industry could be solved. Except for a few items for which it is
really necessary for the state to set the prices and fee collection
standards, most of the prices and service fee standards in the tertiary
industry should be open, subject to floating prices, negotiated prices and
self-quoted prices so that a reasonable price parity could be established.

    17. International business should be encouraged. Some large and medium
sized state-run commercial and materials enterprises should be authorized
with the power to import and export business. Where condition permits
external business development should be promoted energetically and active
efforts should be made to establish China-run enterprises overseas. Subject
to approval, large and medium-sized state-run external enterprises can be
authorized the right to enter domestic market so that business could be
operated in a uniform manner within both domestic and global markets.
Procedures regarding examination and approval of overseas business
development should be further simplified.

    18. Banking, taxation and other economic measures should be adopted for
development of the tertiary industry. Demand for loans by key trades should be
satisfied through arrangements under credit planning. Banks and both city and
township credit cooperatives can issue small loans, for maintenance of
fixed assets and simple equipment, to those collective and private
enterprises, individual industrial and commercial households who have good
efficiency and repayable capacity. When it is really necessary, taxation
upon newly established tertiary industry enterprises may, according to
industrial policies, be delayed or deducted over certain period of time.

    19. Procedures regarding examination and approval should be simplified
so as to alleviate business opening difficulties with establishments of the
tertiary industry. Business autonomy of the tertiary industry enterprises
should be set free. Such enterprises should be permitted to adopt more
flexible operations and expand business scope while their administration
and supervision should be strengthened effectively.

    20. Legal systems governing the tertiary industry should be strengthened.
Relevant laws and regulations regarding corporate and market behavious should
be formulate more speedily. Enterprises should operate according to law
while administrative authorities and economic superintendent departments
should exercise administration and supervision according to law so that the
tertiary industry could enjoy healthy development in a legal approach.

    21. Planning and administration of the tertiary industry should be
strengthened. Different regions have different economic structure and
development level. Their tertiary industry development should also be
different in development focus and speed. Development focus should be
determined in the light of local circumstances and in accordance with state
industrial policies. Investment, credit, employment and land use in the
interest of the tertiary industry should be placed under the overall
development planning and general arrangements of cities and townships. All
regions and departments should formulate programmes for implementation of
the present Decision and revise at the soonest possible time those policies
or regulations that run counter to the present Decision.

    The Party Central Committee and the State Council call for close
attention of the whole party and governments at different levels to the
development of the tertiary industry. All party and government officials
at different levels should unify ideology, renew conception, broaden
thinking, give play to creativity and mobilize the cadres and the people to
work strenuously for realization of the important strategic tasks of the
tertiary industry development.





CIRCULAR OF THE STATE COUNCIL CONCERNING THE PILOT PROJECT FOR NATIONAL TOURIST VACATION AREAS

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-08-17 Effective Date  1992-08-17  


Circular of the State Council Concerning the Pilot Project for National Tourist Vacation Areas



(August 17, 1992)

    For the purpose of further expanding the opening up of our country,
developing and exploiting our country’s rich tourist resources, promoting the
transformation of the sightseeing industry into a sightseeing and vacationing
industry in our country, and expediting the development of tourism, the State
Council has decided to launch a pilot project for national tourist vacation
areas in the places where the conditions are ripe, in which enterprises and/or
individuals from abroad and/or Taiwan, Hong Kong and Macau (hereinafter
referred to as the foreign investors) are encouraged to invest in the
development of tourist facilities and tourist businesses. A circular is hereby
promulgated as follows:

    1. National tourist vacation areas refer to comprehensive tourist areas
established in conformity with international requirements for vacation tours
and mainly open to overseas tourists. The areas shall be bounded clearly and
shall be located in the places which are suitable for concentrating complete
sets of tourist facilities, abundant with tourist vacation resources and
source of tourists, convenient for communications and have relatively firm
foundations of foreign relations.

    2. The State encourages the development of tourism and treats it as a key
industry for earning foreign exchange. National tourist vacation areas shall
be granted the following preferential policies:

    (1) The income tax on the enterprises with foreign investment established
within the areas shall be levied at a reduced rate of twenty-four percent.
Among them, enterprises with foreign investment of a productive nature
scheduled to operate for a period of not less than ten years shall, from the
first year of beginning to make a profit, be exempted from income tax in the
first and second years and allowed a fifty percent reduction in the third to
fifth years.

    (2) Building materials, production and management equipment,
transportation equipment and office supplies imported for enterprise use and
included in the total amount of investment by enterprises with foreign
investment established within the areas, as well as settling-in articles and
transportation equipment imported in reasonable quantities by foreign
investors or technicians or other personnel residing in the areas, shall be
exempted from customs duties and consolidated industrial and commercial taxes.
Raw materials, spare parts, components, fittings, auxiliary materials and
packaging materials imported for the production of tourist export goods shall
be treated as bonded goods by Customs.

    (3) Machinery, equipment and other materials for capital construction
required by the construction of infrastructure within vacation areas shall be
exempted from customs duties and product taxes (or value-added taxes).

    (4) Foreign exchange payment shops may be established within the areas.
The examination and approval of these shops shall be handled according to the
relevant State provisions.

    (5) Tourist automobile companies with Chinese-made automobiles and in
co-operation with foreign investors may be established within the areas.
Chinese-made automobiles purchased by the companies within a verified quantity
shall be exempted from the horizontal supporting fees, surcharges for
purchases of motor vehicles and extra consumption taxes. Tourist automobile
companies established by domestic enterprises within the areas may be treated
in reference with the above-mentioned policies. Such automobiles shall be used
only by tourist automobile companies established within the areas, and shall
not be transferred to others for sale. These policies shall be put into effect
by the State Planning Commission in consultation with other relevant
departments.

    (6) Tourist agencies of Category 1 in co-operation with foreign investors
may be established within the areas for overseas tourist services. The
National Tourism Administration shall be in charge of the examination and
administration of the tourist agencies.

    (7) The development of land for the construction within the areas shall be
handled according to the Interim Regulations of the People’s Republic of China
Concerning the Assignment and Transfer of the Right to Use of State-Owned Land
in the Urban Areas. Fees for the assignment of land use rights shall, within
five years from the approval date of the establishment of the areas, be
reserved within the areas for the construction of infrastructure.

    (8) Tourist foreign exchange earnings derived from the areas shall, within
five years from the approval date of the establishment of the areas, be
reserved in full as foreign exchange quotas for the sustained development of
the areas.

    3. Projects for tourist facilities built with foreign investment within
national tourist vacation areas shall, if the amount of investment falls
within the limit of powers for approval laid down by the State Council, be
examined and decided by the provinces, autonomous regions and municipalities
directly under the Central Government, and cities separately listed under the
national plan; those of projects for tourist lodging facilities shall be
submitted to the National Tourism Administration, the State Planning
Commission and the Ministry of Economic Relations and Foreign Trade for the
record. If the amount of investment exceeds the limit of powers for approval
laid down by the State Council, the projects shall be decided according to the
relevant State provisions. For enterprises established for projects of tourist
lodging facilities built with foreign investment, their term of operation
shall not exceed thirty years in principle.

    4. The pilot project for national tourist vacation areas shall be
submitted by local people’s governments to the State Council for examination
and approval.

    5. The pilot project for national tourist vacation areas is an important
arrangement in order to deepen the reform, expand the opening of the tourist
industry, change the structure of tourist products in our country, upgrade the
tourist products and improve their competitive power in the international
market. Departments concerned under the State Council and local governments
concerned shall make proper planning in real earnest and do a good job for
this pilot project. It’s inadvisable to establish too large-scale national
tourist vacation areas in the opening stages. They should gradually develop
from small to large.





CIRCULAR OF THE STATE SCIENCE AND TECHNOLOGY COMMISSION, THE STATE ECONOMIC RESTRUCTURING COMMISSION ON PRINTING AND ISSUING THE INTERIM PROVISIONS ON SEVERAL ISSUES CONCERNING THE ESTABLISHMENT OF HIGH AND NEW TECHNOLOGY INCORPORATED COMPANIES WITHIN NATIONAL HIGH AND NEW TECHNOLOGY INDUSTRY DEVELOPMENT ZONES

The State Science and Technology Commission, the State Economic Restructuring Commission

Circular of the State Science and Technology Commission, the State Economic Restructuring Commission on Printing and Issuing the Interim
Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National High
and New Technology Industry Development Zones

GuoKeFaGaiZi [1992] No.796

November 19,1992

All the people’s governments of provinces, autonomous regions, municipalitie directly under the Central Government, ministries, commissions
and directly subordinate institutions of the State Council:

“Interim Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National
High and New Technology Industry Development Zones” drafted by the Commission of Science Technology and the commission for economic
restructuring is hereby issued to you for the earnest implementation. Attachment:Interim Provisions on Several Issues Concerning the Establishment of High and New Technology Incorporated Companies within National
High and New Technology Industry Development Zones

Article 1

These Provisions are formulated in accordance with the Opinions on the Standardization of Incorporated Companies issued by the State
Economic Restructuring Commission and in consideration of the actual conditions of high and new technology industry development zones
and for the purposes of promoting the optimal combination of high and new technologies with other production factors and advancing
the development of high and new technology industry.

Article 2

These Provisions apply to the establishment of incorporated companies with a high and new technology nature within high and new technology
industry development zones which are approved by the State Council.

Article 3

High and new technology incorporated companies (hereinafter referred to as the company) mean the enterprise legal persons which are
established according to the Opinions on the Standardization of Incorporated Companies of the State Economic Restructuring Commission
(hereinafter referred to as the Opinions on the Standardization) and these Provisions and meet the requirements issued by the State
Science and for acknowledging high and new technology enterprises Technology Commission.

Article 4

The place of registration of a company is its residence. Both the company’s place of registration and its main working offices must
be located within the prescribed high and new technology industry development zone.

Article 5

When a former high and new technology enterprise is restructured into a company, its initiator may be one person if it is acknowledged
by the State Science and Technology Commission as a large or medium-sized high and new enterprise and is approved by the examination
and approval organ.

Article 6

If an enterprise legal person outside the territory or a foreign-capital enterprise legal person within the territory transferring
a high and new technology published by the State Science and Technology Commission or using the said technology as the share in the
company is to be an initiator of the company, it must be reported to the State Economic Restructuring Commission and the State Science
and Technology Commission for special examination and approval, however, the total number thereof may not exceed one-third of the
initiators.

Article 7

When a former high and new technology enterprise is transformed into a company, the property rights of the enterprise’s original net
assets must be defined. Assets of which property rights are difficult to be defined may be invested into the company and managed
in the form of legal person shares.

Article 8

The administrative departments of high and new technology industry development zones are the competent business departments for the
companies, and are responsible for examining the establishment of the companies within high and new technology development zones.

Article 9

The commissions (offices) for restructuring economic system of provinces, autonomous regions and municipalities directly under the
Central Government in the places where the companies are located or the organs authorized by the government are the examination and
approval organs for the companies.

Article 10

When intangible assets are priced as shares, the total amount of intangible assets priced may not, with special approval of the examination
and approval department for the company, exceed 30% of the company’s registered capital if the intangible assets include high and
new technologies. However, such a high and new technology included must meet the following requirements:

(1)

to be the core technology for the company’s main products;

(2)

to meet the requirements issued by the State Science and Technology Commission for acknowledging the high and new technology ;

(3)

to produce by the share subscriber the documentary evidence of post_title to the technology invested as shares, and to guarantee that the
company’s right over the said technology, within the scope or terms agreed upon, may challenge any third party; and

(4)

to have evaluation certificates issued by the technology evaluation organization approved by the State Science and Technology Commission
or its authorized department and a qualified certified public accountant firm.

Article 11

When a former high and new technology enterprise is transformed into a company, the enterprise may, after examination and approval
by the enterprise’s competent department and unanimous resolution of the active employees’ meeting of the former enterprise, give
reward in the form of personal shares to the scientific and technological personnel of the company who have made outstanding contributions
in creating the former enterprise in order to continue to ensure and promote the company’s consolidation and development and to bring
the advantage of intellectual resources into play.

Article 12

The Opinions on the Standardization apply to any matters not included in these Provisions.

Article 13

The science and technology commissions and the commissions for restructuring economic system of provinces, autonomous regions and
municipalities directly under the Central Government may formulate the rules for implementation in accordance with these Provisions.

Article 14

The State Science and Technology Commission is responsible for the interpretation of these Provisions.

Article 15

These Provisions shall enter into force as of the date of promulgation.



 
The State Science and Technology Commission, the State Economic Restructuring Commission
1992-11-19

 






PROVISIONS FOR ENCOURAGING DOMESTIC AND FOREIGN INVESTMENTS IN TIBET

Provisions for Encouraging Domestic and Foreign Investments in Tibet

     (Effective Date:1992.07.14–Ineffective Date:)

These Provisions are formulated for attracting domestic and foreign investments to speed up economic development in Tibet.

   Article 1. The Autonomous Region encourages domestic and foreign businesses, companies, other economic organizations, or individuals (hereinafter
referred to as “businessmen”) to make investments in Tibet to start economic entities or various economic and social undertakings.

   Article 2. The Autonomous Region shall protect the legitimate rights and interests of businessmen according to law. Assets set up by businessmen
shall not be nationalized. When the assets are to be conceded to the State by the businessmen, or have to be expropriated by the
State according to public interests, legal procedures shall be followed with corresponding compensation given.

   Article 3. Investments to Tibet can be made in the following forms without any restriction in areas, departments and trades:

(1) Joint equity, cooperative, solely funded ventures or other types of businesses allowed by law.

Terms of operation, proportions of investment, and the form of joint operation shall be determined in contracts of both sides approval
by departments in charge.

(2) Purchases of stocks and bonds.

(3) Participation in operation by sharing of capital, contracting or leasing.

(4) Technical cooperation, transfer, and contracting.

(5) Compensation trade, processing and assembling with supplied materials, and co-production.

(6) Purchase of real estates and development of land through land leasing.

(7) Coop with businesses of the Autonomous Region to run joint equity or cooperative ventures in China’s special economic zones, open
cities, economic and technological development areas, and inland provinces and cities, as well as in places abroad.

(8) Other conventional forms of business at home and abroad.

   Article 4. Projects funded by domestic and foreign businessmen in Tibet shall be given priority for planning approval, supporting funds, starting
construction, setting up of enterprises, and registration.

   Article 5. On the principle of separating the ownership of land from the right to use land, the Region shall sell the land-use right to businessmen,
who can also use State land in the Region in other ways.

(1) The term of land use is 50-70 years. Prices for land-use shall be set at preferential terms.

(2) The Tibetan partner in a joint equity or cooperative venture, or in other joint operation can use their original right of land
use as investment or share.

(3) Solely-funded enterprises in the Region with an operation term of 10 years or more use State land in the Region, shall be exempted
from urban land-use tax or farmland-occupation tax in the construction period approved. The enterprises shall pay half the land-use
tax in the eight years after their starting operation. Enterprises that have an operation term of less than 10 years shall be exempted
from land-use tax for use of farmland and, in the construction period, from urban land-use tax.

(4) When joint equity or cooperative ventures or other joint operations use the site of a business in the Region to build a project
or use new State land with approval to do so, it shall be exempted from urban land-use tax and farmland-occupation tax in the construction
period approved. They shall be exempted from land-use tax for eight years after their starting operation.

(5) Enterprises funded by businessmen to engage in production shall enjoy preferential treatment in land-use charges.

   Article 6. Businessmen can develop mineral resources in the Region with payment according to law. Except for special mineral resources stipulated
by the State, businessmen can establish joint equity, cooperative or solely-funded ventures to explore and exploit mineral resources
in the Region with the approval of the Regional People’s Government.

   Article 7. Beginning from the profit-making year, industrial enterprises funded by businessmen shall pay 10% income tax for their operation.
They shall be exempted from local income tax. Enterprises that engage in the following operations shall enjoy further preference:

(1) Enterprises with an operation term of 10 years or more that engage in energy, transportation, agriculture or animal husbandry
shall be exempted from income tax in the first five profit-making years and pay half the income tax in the following three years.

(2) Enterprises with an operation term of 10 years or more that engage in processing animal by-products and native and special produce,
or in national handicrafts, or tourist merchandise, or other processing industries, shall be exempted from income tax in the first
four profit-making years and pay half the income tax in the following two years.

(3) Enterprises engaging in tourism that have an investment topping US$5 million or RMB30 million each and an operation term of 10
years or more shall be exempted from income tax in the first three profit-making years and pay half the income tax in the fourth
year. Those that are not up to the above standards shall be exempted from income tax in the first two profit-making years and pay
half the income tax in the third year.

   Article 8. Businessmen who do not set up any entity in the Region but receive dividends, interests, rent, charges of using special rights, or
other income from the Region shall pay income tax at a rate of 20%, except those who are exempted from income tax according to law.

   Article 9. Businessmen who earn profits from enterprises in the Region but make new investment in other projects or in expanded reproduction
with an operation term of not less than five years, shall have all their income tax already paid for that part of profit that is
used as new investment refunded.

   Article 10. For other taxes other than income tax businessmen shall pay as or according to similar trade in the Region. They are allowed to pay
taxes in RMB.

   Article 11. When businessmen remit their profits from China or when foreign workers and staff members remit their personal income, they shall
be exempted from tax for the remittance.

   Article 12. All joint equity or cooperative ventures or other joint operations shall enjoy the above-mentioned tax-reduction and tax-free treatment,
Besides, those enterprises that export 50% of their annual output (sales amount) or more shall pay half the income tax that year.

   Article 13. Joint equity or cooperative ventures or other joint operations shall first receive their profits, then pay tax. In the final distribution,
the share of profit by the businessmen can be higher than their share of investment. The specific proportions of sharing shall be
clearly defined in their contracts. This principle holds true for the distribution of profits in foreign exchange.

   Article 14. For joint ventures established in the Region by businesses in other parts of China, gross output values shared by such businesses
can be accounted for by the localities where they come from. In the case, the businesses shall pay their income tax on their profits
to the people’s government of the localities concerned. According to negotiations between various parties or mutual-benefit contracts
between provinces, the financial department of the Region can refund a proportion of the circulation tax on the businessmen to the
financial department of their original localities.

   Article 15. Productive enterprises in Tibet established by businessmen and enterprises specified by Article 3 (7) of these provisions shall enjoy
same preference of similar enterprises in the Region.

(1) They shall obtain loans from banks in the Region according to same conditions. They shall enjoy the unified interest rate of the
Region.

(2) They shall be given equal priority for the supply for fuel, power, raw and semi-finished materials, and subsidiary materials and
for prices.

(3) The related department shall provide convenience for the sale of their products inside and outside the Region. They can also entrust
commercial departments in the Region with the sales.

(4) When they export their products, they shall enjoy foreign trade preferential treatment as do similar enterprises in the Region,
except for products specially stipulated by the State.

(5) Solely-funded and joint operated enterprises can take part in border trade between Tibet and neighboring countries and enjoy relevant
preferential treatment.

(6) Business operators shall enjoy full decision-making power in operation.

(7) They shall enjoy other preferential treatment in production and operation.

   Article 16. When businessmen import machinery, equipment, building materials, spare parts, components, and devices within the total investment
for the construction of their enterprises, they shall be exempted from import duty and industrial and commercial consolidated tax.

When businessmen import a reasonable amount of articles, for office or home use, or self-use motor vehicles, they shall be exempted
from import duty and industrial and commercial consolidated tax. Under the supervision of the Customs, they need not apply for an
import permit.

When businessmen import raw and semi-finished materials, subsidiary materials, packaging materials, spare parts, components, and devices
(hereinafter referred to as “materials and devices”) for production and export all the processed products, they shall be exempted
from import duty and industrial and commercial tax. Those who export part of their products shall be exempted from the import duty
and industrial and commercial tax imposed on the materials and devices involved. For the products sold at home, they shall pay half
the import duty and industrial and commercial tax on materials and devices.

   Article 17. Businessmen can entrust the assets of their solely-funded or joint operated in Tibet to their relative or friends in China who hold
a trust deed of legal validity. Or they can transfer or bequeath their assets and assign 3-5 relatives to work in the business, who
are allowed to move their residence from rural areas and settle in the area where the enterprise is.

   Article 18. The depreciation rate of fixed assets of enterprises in Tibet funded by businessmen can be increased by 5-10% on the current basis
stipulated by the State, with the approval of the local financial departments.

   Article 19. Businessmen can make a choice from among projects published by the related departments of the Regional government or government at
lower levels, then invest in them. Or they can propose other projects and apply to the related departments of the local government.

   Article 20. Overseas technical and managerial personnel employed by businessmen can apply for multiple entry and exit permits.

   Article 21. Should disputed arise about contracts or in execution of contracts, the disputing parties shall try to settle the disputes through
consultation. If the disputing parties do not want to consult or consultation fails, businessmen can apply to the Regional Trade
Arbitration Commission for a settlement. Or, with the agreement of all parties, they can apply to an arbitration organ outside the
Region, or a national arbitration organ, or an international arbitration organization.

   Article 22. Those who recommend investors to Tibet shall be awarded, no matter they are Chinese citizens, overseas Chinese (including Tibetans
abroad), Hong Kong and Macao compatriots, or foreign friends, provided they are not investors, project decision-makers, or assigned
introducers who are awarded introducing charges. The benefited unit shall award the recommender 3% of an investment of less than
RMB1,000,000 or US$200,000 and 5% of an investment more than that. The recommender shall be exempted from personal income tax for
the reward.

   Article 23. Chinese and foreign personages who help Tibet develop its economy and social undertakings free of charge shall receive an honorary
certificate from the People’s Government of the Tibet Autonomous Region. For those who help build major projects, the Regional government
shall report to the Chinese State Council and obtain its approval for the State to award them an honorary certificate and for establishing
a permanent memorial symbol in Tibet.

    





REGULATIONS FOR IMPLEMENTATION OF THE ASSEMBLIES, PROCESSIONS AND DEMONSTRATIONS

Category  PROTECTION OF CITIZENS’ RIGHTS AND INTERESTS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-06-16 Effective Date  1992-06-16  


Regulations for Implementation of the Law of the People’s Republic of China on Assemblies, Processions and Demonstrations

Chapter I  General Provisions
Chapter II  Application and Permission for Assemblies, Processions and
Chapter III  The Holding of Assemblies, Processions and Demonstrations
Chapter IV  Legal Responsibility
Chapter V  Supplementary Provisions

(Approved by the State Council on May 12, 1992, promulgated by Decree

No.8 of the Ministry of Public Security on June 16, 1992)
Chapter I  General Provisions

    Article 1  These Regulations are formulated according to the Law of the
People’s Republic of China on Assemblies, Processions and Demonstrations
(hereinafter referred to as the Law on Assemblies, Processions and
Demonstrations).

    Article 2  The people’s governments at various levels shall, in
accordance with the law, safeguard citizens’ exercise of their rights to
assembly, procession and demonstration, maintain social stability and public
order, and protect assemblies, processions and demonstrations held in
compliance with law from disturbance, attack or disruption by anybody by
violence, coercion or any other illegal means.

    Article 3  Public places in the open air mentioned in Article 2 of the
Law on Assemblies, Processions and Demonstrations mean open-air public places
that the public may enter freely or by ticket, not including interior open-air
places administrated by state organs, public organizations, enterprises or
institutions; public roads mean those on both land and water except interior
roads specially used by state organs, public organizations, enterprises or
institutions.

    Article 4  Recreational or sports activities, normal religious activities
and traditional folk events shall be subject to the administration by the
people’s governments at various levels or relevant competent departments in
accordance with relevant laws, regulations and other relevant state
provisions.

    Article 5  Weapons as mentioned in the Law on Assemblies, Processions and
Demonstrations mean various firearms and ammunition and other weapons which
may be used to do personal injury; controlled cutting tools mean daggers,
triangular swords, spring swords and other swords controlled in accordance
with law; explosives mean all explosive substances with explosive force and
destructiveness that may cause personal injuries or deaths or property
damages in a flash.

    No weapons, controlled cutting tools or explosives as mentioned in the
preceding paragraph shall be carried on in assemblies, processions or
demonstrations, or transported to the localities where assemblies,
processions or demonstrations are held.

    Article 6  If any activities are held without prior applications under
Paragraph 2, Article 7 of the Law on Assemblies, Processions and
Demonstrations, the traffic and social order shall be maintained.

    Article 7  Assemblies, processions and demonstrations shall be governed
by the municipal public security bureaus, county public security bureaus or
municipal public security sub-bureaus in the localities where the assemblies,
processions or demonstrations are held.

    If the route of a procession or demonstration covers two or more
districts or counties within a same municipality directly under the central
government, a same municipality under the provincial or autonomous regional
government, or a same prefecture under the provincial or autonomous regional
government, the procession or demonstration shall be governed by the
municipal public security bureau or the prefecture public security
department; if the route of a procession or demonstration covers two or more
municipalities under the provincial government, municipalities under the
autonomous regional government, or prefectures, within a same province or
autonomous region, the procession or demonstration shall be governed by the
provincial or autonomous regional public security department; if the route of
a procession or demonstration covers two or more provinces, autonomous
regions or municipalities directly under the central government, the
procession or demonstration shall be governed by the Ministry of Public
Security or the public security department of the province, autonomous
region or municipality directly under the central government authorized by
the Ministry of Public Security.
Chapter II  Application and Permission for Assemblies, Processions and
Demonstrations

    Article 8  There must be a person(s) responsible for the holding of an
assembly, procession or demonstration.

    Persons coming under any of the following categories shall not be a
person responsible for the holding of an assembly, procession or
demonstration:

    (1) persons having no capacity for legal conduct or persons with limited
capacity for legal conduct;

    (2) convicted persons serving their sentences;

    (3) persons undergoing rehabilitation through labor; or

    (4) persons under criminal compulsory measures or other legal measures
restricting personal freedom.

    Article 9  For holding of an assembly, a procession or a demonstration,
the person responsible must personally submit an application in writing to
the competent public security organ stipulated in Article 7 of these
Regulations. The competent public security organ shall not entertain an
application if it is not submitted personally by the person responsible.

    When submitting an application in writing, the person responsible for the
holding of the assembly, procession or demonstration shall produce his
identity card or other valid certificates, and fill in the application and
registration form truthfully.

    Article 10  Upon the receipt of an application for assembly, procession
or demonstration, the competent public security organ shall make timely
examination and, within the stipulated period, render a decision in writing
to grant or not to grant permission. The permitted matters or reasons why no
permission is given shall be stated in the decision.

    The decision shall be served on the person responsible two days before
the date of assembly, procession or demonstration, with the person
responsible signing the receipt. If the person responsible refuses to receipt
the decision, the person serving the decision shall ask representatives from
the grass-roots organization in location of the person responsible or other
persons as witnesses to appear on the scene, explain the situation to them,
and record on the receipt the reasons for refusal and the date of it. After
the person serving the decision and the witnesses have affixed their
signatures to the receipt, the decision shall be left at the place of the
person responsible and the service shall be deemed completed.

    If there is a prior appointment on the serving time and place, and the
service cannot be completed because the person responsible fail to appear at
the appointed place within the appointed time limits, it shall be deemed that
the application has been withdrawn; failure by the competent public security
organ to make service at the appointed place within the appointed time limits
shall be deemed as the granting of permission.

    Article 11  If an application is made for an assembly, procession or
demonstration which will press for the settlement of specific issues, the
competent public security organ shall, within two days of receiving the
application, issue a Notice of Consultation on Specific Issues respectively
to the person responsible for the assembly, procession or demonstration and
the departments or units concerned and, if necessary, to the competent
authority to the departments or units concerned. The departments or units
concerned and the person responsible for the assembly, procession or
demonstration shall conduct consultation within two days from the next day of
the day on which the Notice of Consultation on Specific Issues issued by the
public security organ is received. If an agreement is reached through
consultation, the agreement signed by the persons responsible of the two
sides shall be submitted in time by the departments or units concerned to the
competent public security organ; if no agreement is reached or no
consultation has been taken within two days from the next day of the day on
which the Notice of Consultation on Specific Issues is received, and the
applicant insists on the holding of assembly, procession or demonstration,
the departments or units concerned shall inform the competent public security
organ of the situation in good time, and the latter shall, in accordance with
the provisions of Article 10 of these Regulations, make a decision to grant
or not to grant permission without delay.

    If one or both parties notified by the competent public security organ to
conduct consultation on specific issues are in towns or cities other than
where the competent public security organ is, the stipulated period for
serving or sending a Notice of Consultation on Specific Issues, an agreement
reached through consultation or a notice that no agreement has been reached,
shall not include the starting day of the serving or sending nor the period
within which the notice or the agreement is on the way.

    Article 12  Pursuant to the provisions of Article 15 of the Law on
Assemblies, Processions and Demonstrations, no citizens shall, in a city
other than his place of residence, start, organize or participate in an
assembly, procession or demonstration of local citizens. The place of
residence in that article means a place where a citizen has his permanent
residence registration or a place where a citizen has his preliminary
residence registration and has been residing for six months or more without
interruption.

    Article 13  If it decides to grant permission after receiving an
application for an assembly, procession or demonstration, the competent
public security organ may, under any of the following circumstances, make
changes to the time, place or route of the assembly, procession or
demonstration, and inform the person responsible thereof in good time:

    (1) the time for the holding of the assembly, procession or demonstration
applied for falls on traffic rush hours, and a serious and long-time traffic
jam may be caused;

    (2) the place or route for the assembly, procession or demonstration
applied for is under construction and without traffic capacity;

    (3) the place for the assembly, procession or demonstration applied for
is a ferry crossing or a railway-road junction, or near the country’s
boundaries(borders);

    (4) the motor-vehicles to be used are not in compliance with provisions
concerning road maintenance;

    (5) at the time and place for the assembly, procession or demonstration
applied for, there will be important activities of national affairs; or

    (6) with regard to the time, place and route for the assembly, procession
or demonstration applied for, a permission has been granted to other people
applying for an assembly, procession or demonstration.

    If the competent public security organ decides to grant permission and
considers that it is necessary to make changes to the time, place or route of
the assembly, procession or demonstration, it shall state the changes in its
decision.

    If, after permission has been granted, at the place for the assembly,
procession or demonstration applied for or along the route thereof, natural
or public security calamity has occurred, the relief work is being
undertaken, and it is impossible to resume normal order before the date on
which the assembly, procession or demonstration is to be held, the competent
public security organ may make changes to the time, place or route for the
assembly, procession or demonstration, and shall, before the date applied
for, service a Decision on Changing Matters Related to Assembly, Procession
or Demonstration on the person responsible for the assembly, procession or
demonstration.

    Article 14  If the person responsible for the assembly, procession or
demonstration refuses to accept the competent public security organ’s
no-permission decision, he may apply to the people’s government at the same
level for reconsideration within three days of receiving the decision. The
people’s government shall, within three days of receiving the reconsideration
application, make a reconsideration decision to affirm or annul the competent
public security organ’s decision, and service an Reconsideration Decision on
Assembly, Procession or Demonstration on the person responsible for the
assembly, procession or demonstration as well as the competent public
security organ who make the original decision. The competent public security
organ and the person responsible for the assembly, procession or
demonstration must implement the reconsideration decision made by the
people’s government.

    Article 15  If the person responsible for an assembly, procession or
demonstration withdraws his application after submitting it and before
receiving a notice of the competent public security organ, he shall go
through the withdrawal procedure in good time with the competent public
security organ entertaining the application.

    If, after receiving the competent public security organ’s decision
granting permission or the people’s government’s reconsideration decision
granting permission, the person responsible for an assembly, procession or
demonstration decides not to hold the assembly, procession or demonstration,
he shall, before the date on which the assembly, procession or demonstration
is originally to be held, return the decision or reconsideration decision to
the relevant competent public security organ or people’s government.

    Article 16  If an assembly, procession or demonstration is held or
participated in in the name of a state organ, a public organization, an
enterprise or an institution, the person responsible must, submit a
certification with the signature of the leader of the state organ, public
organization, enterprise or institution and the official seal affixed,
in addition to an application.
 Chapter III  The Holding of Assemblies, Processions and Demonstrations

    Article 17  With respect to an assembly held in compliance with law,
the public security organ shall, in the light of the actual needs, dispatch
the people’s police to maintain order and ensure the smooth progress of the
assembly.

    With respect to a procession or demonstration held in compliance with
law, the people’s police responsible for maintaining order shall, along the
route or at the location of the procession or demonstration as permitted by
the competent public security organ, relieve traffic congestion, protect the
procession or demonstration order from any disturbance or disruption and, if
necessary, may temporarily exercise flexibility in their execution of the
relevant provisions of traffic regulations, and ensure the smooth progress of
the procession or demonstration.

    Article 18  The people’s police responsible for maintaining traffic and
social order shall be unifiedly commanded by the on-the-spot person in charge
appointed by the competent public security organ. The on-the-spot person in
charge of the people’s police shall keep in touch with the person responsible
for the assembly, procession or demonstration.

    Article 19  If it becomes impossible for a procession on the march to
follow the permitted route because of the occurrence of natural calamity,
traffic accident or other public security calamity on the way ahead, the
occurrence of serious conflicts and chaos between the marchers or the marchers
and the onlookers, or the occurrence of any other unexpected circumstances,
the on-the-spot person in charge of the people’s police shall have the
authority to change the route of the procession.

    Article 20  There shall be clear marks for the temporary security lines
established by the competent public security organ and, if necessary,
barriers may be placed.

    Article 21  The peripheral distance from a place within which no
assembly, procession or demonstration may be held as mentioned in Article 23
of the Law on Assemblies, Processions and Demonstrations means the radiate
distance from the periphery of the building at that place; in the case of
enclosing walls or railings, the peripheral distance shall be measured from
the periphery of the enclosing walls or railings. The specific peripheral
distance from a place within which no assembly, procession or demonstration
may be held shall be stipulated and published by the people’s government of
the province, autonomous region or municipality directly under the central
government.

    When determining a peripheral distance from a place within which no
assembly, procession or demonstration may be held, the people’s governments
of province, autonomous region or municipality directly under the central
government shall take consideration of both the security and order of the
place and the convenience for the holding of the assembly, procession or
demonstration.

    Article 22  The person responsible for an assembly, procession or
demonstration must be responsible for keeping the order of the assembly,
procession or demonstration, and shall dissuade other persons from joining
the assembly, procession or demonstration; in case of failure of dissuasion,
he shall promptly report it to the on-the-spot people’s police responsible
for maintaining order. The people’s police shall make those persons stop
upon receipt of the report.

    If the person responsible for an assembly, procession or demonstration
appoints persons to assist the people’s police in keeping order, he shall,
before the holding date, submit a model of the identification mark to be worn
by persons appointed to the competent public security organ for record.

    Article 23  Pursuant to the provisions of Article 27 of the Law on
Assemblies, Processions and Demonstrations, the people’s police has the
authority to stop an assembly, procession or demonstration that is being
held, if it is illegally held or a situation which endangers public security
or seriously undermines public order emerges in the course of the activity.
In case of failure of dissuasion and it is necessary to order a dismissal,
the people’s police shall, through broadcast, shouting propaganda or by other
clear methods, tell people on the spot to leave the spot through the
designated passage within the specified time limits. If someone refuses to
leave within the specified time limits, the on-the-spot person in charge of
the people’s police shall have the authority to order, in accordance with
relevant state provisions, the adoption of police weapons or other police
instruments to force a dismissal; those continuing to stay on the spot may
be taken away from the spot be force or be detained at once.
Chapter IV  Legal Responsibility

    Article 24  Those refusing or obstructing the people’s police who are
carrying out their functions of maintaining traffic and social order
according to law shall be given an administrative penalty in accordance with
relevant provisions of the Regulations on Administrative Penalties for Public
Security; if a crime is constituted, the criminal responsibility shall be
investigated.

    If someone violates Article 5 of these Regulations but the circumstances
are not serious enough to constitute a crime, he shall be given an
administrative penalty in accordance with relevant provisions of the
Regulations on Administrative Penalties for Public Security.

    Article 25  Those whose criminal responsibilities shall be investigated
under Article 29 or 30 of the Law on Assemblies, Processions and
Demonstrations shall be handled by the competent public security organ
of the holding place in accordance with the procedures stipulated by the
Criminal Procedure Law.

    Article 26  With respect to those being detained under Article 33 of the
Law on Assemblies, Processions and Demonstrations, the public security organ
shall make interrogation within twenty-four hours; for those who should be
sent back, the competent public security organ of the place of action shall
make a Decision on Sending back by Force, and assign a policeman(men) to
carry out the decision. The policeman(men) assigned shall take the person in
question back to his place of residence and turn them together with the
Decision on Sending back by Force over to the public security organ of the
residence place of the person for handling according to law.

    Article 27  If someone should be given an administrative penalty for
public security in accordance with Article 28 or 30 of the Law on Assemblies,
Processions and Demonstrations or Article 24 of these Regulations, the
penalty shall be decided and carried out by the public security organ of
place of action in accordance with the procedures stipulated in the
Regulations on Administrative Penalties for Public Security. If the penalized
person refuses to accept the penalty decision, he may apply for
reconsideration; if he refuses to accept the reconsideration decision made by
the public security organ at higher level, he may institute a law suit with
the people’s court in accordance with relevant provisions of law.

    Article 28  With respect to those who are taken away from the spot by
force or those who are detained at once under Article 27 of the Law on
Assemblies, Processions and Demonstrations, the public security organ shall
make interrogation within twenty-four hours. If no legal responsibility is to
be investigated, the person in question shall be ordered to make statement of
repentance and then be released; if legal responsibility is to be
investigated, matters shall be handled in accordance with relevant provisions
of law.

    Article 29  If, in an assembly, procession or demonstration, someone
destroys private or public property or infringes upon other persons’ privacy
resulting in personal injuries or deaths, he shall bear the compensation
responsibility in accordance with law. In the case of administrative penalty
for public security, the public security organ of the place of action shall,
in accordance with relevant provisions of the Regulations on Administrative
Penalties for Public Security, rule on the amount of compensation and the
bearing of expenses for medical treatment; in the case of crime, an
incidental civil action shall be instituted.
Chapter V  Supplementary Provisions

    Article 30  These Regulations shall be applicable to assemblies,
processions and demonstrations held by foreigners within the territory of
China.

    If there is a foreigner(s) wishing to participate in an assembly,
procession or demonstration held by Chinese citizens within the territory of
China, the person responsible for the assembly, procession or demonstration
shall state the matters in the application; foreigners may not participate
without approval by the competent public security organ.

    Article 31  Measures formulated by the standing committee of the people’s
congress of a province, autonomous region or municipality directly under the
central government for implementation of the Law on Assemblies, Processions
and Demonstrations shall be applicable within its own administrative region;
in case of any discrepancy between those measures and these Regulations,
these regulations shall prevail.

    Article 32  The Ministry of Public Security shall be responsible for
interpreting issues arising from the implementation of these Regulations.

    Article 33  These Regulations shall enter into force on the date of
promulgation.





MEASURES OF THE CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA ON THE CONTROL OVER AND THE LEVY AND EXEMPTION OF TAX FOR IMPORT AND EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

The General Administration of Customs

Decree of the General Administration of Customs

No.29

Measures of the Customs of People’s Republic of China on the Control over and the Levy and Exemption of Tax for Import and Export
Goods of Enterprises with Foreign Investment is hereby promulgated, and will come into force as of September 1,1992.

Provisions on Control over and the Levy and Exemption of Tax for Import and Export Goods of of Chinese-foreign Contractual Joint Ventures,
Provisions on Control over and the Levy and Exemption of Tax for Import and Export Goods of Chinese-foreign Equity Joint Ventures,
Measures of the Customs of People’s Republic of China on Administration of Import Materials Needed to Implement the Product Export
Contracts by Enterprises with Foreign Investment is nullified at the same time.

Director of the General Administration of Customs: Dai Jie

July 25, 1992

Measures of the Customs of People’s Republic of China on the Control over and the Levy and Exemption of Tax for Import and Export
Goods of Enterprises with Foreign Investment

Chapter 1 General Provisions

Article 1

In order to encourage foreign companies, enterprises and other economic organizations or individuals to come to China and set up Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint enterprises and foreign enterprises (hereinafter referred to as enterprises
with foreign investment), implement the state industrial policy, develop the national economy, simplify procedures for legal import
and export and strengthen customs supervision and control, these Measures are hereby formulated in accordance with the stipulations
of the Customs Law of the People’s Republic of China and related laws and regulations.

Article 2

Enterprises with foreign investment shall perform their various duties in accordance with the stipulations of the laws, regulations
and measures of the People’s Republic of China. They shall accurately declare at Customs their import and export goods, accept customs
supervision and control and enjoy relevant preferential treatment.

Article 3

For enterprises with foreign investment considered to properly comply with the stipulations of Customs, upon examination, Customs
will grant the post_title “Enterprises with a Good Reputation”, and provide with relevant conveniences in the performance of customs formalities.

Article 4

Enterprises with foreign investment, which meet the conditions of customs supervision and control, may be allowed to set up bonded
warehouses and bonded factories. When considered to be necessary, Customs may send customs personnel to be stationed in enterprises
with foreign investment to carry out the supervision and control and handle customs procedures. Relevant enterprises should provide
necessary conveniences.

Article 5

Goods imported by enterprises with foreign investment, which come under the supervision and control of Customs according to the stipulations
of the Customs Law of People’s Republic of China, shall not be sold, transferred, mortgaged or diverted to other purposes without
authorization or permission of Customs.

Chapter 2 Procedures for the Recording of Customs Clearance Basis

Article 6

Enterprises with foreign investment shall bring with the copies or duplicates of the documents of ratification issued by the Department
in charge of foreign economic relations and trade of the People’s Republic of China, or the organization it authorized, and the copies
or duplicates of the business license issued by the State Administration for Industry and Commerce, or the department it authorized,
as well as the articles of association and contracts of enterprises’, to go through the formalities of registration with local Customs
for the record.

Article 7

Each party of enterprises with foreign investment shall pay the required funds in accordance with the stipulations of contracts, articles
of association and relevant State regulations and, within 1 month after the funds are verified, hand in the report of verified funds
to Customs.

Article 8

When declaring their import and export goods at Customs, enterprises with foreign investment shall fill in a bill of entry specially
provided for enterprises with foreign investment and declare to Customs and hand in all goods invoices, packing lists and other related
documents for examination. They shall also hand in import or export licenses for commodities needing to no license according to State
regulation, Customs will check and give clearance in accordance with the documents approving the establishment of the enterprises
or with the import and export contract.

Enterprises with foreign investment are not required to apply for approval and to obtain import licenses for a reasonable amount of
goods imported for their own use.

Article 9

When a enterprise with foreign investment purchases goods that are not products of the enterprises for export in order to obtain a
balance of foreign exchange income and expenditure, Customs shall check the document of ratification issued by the economic and trade
department in charge. For commodities which come under state export license control, the enterprise shall apply for export license
in accordance with the document of ratification, and Customs shall check and issue clearance.

Article 10

A enterprise with foreign investment shall, before importing goods, bring with its approved contract and equipment detailed lists
and other documents to perform the Customs in charge. After examination and approval, the Customs shall issue the “Tax Levy and Exemption
Certificate of the Customs of the People’s Republic of China for the Import Goods of Enterprise with Foreign Investment” (hereinafter
referred to as Tax Levy and Exemption Certificate). When the goods are imported, the enterprise shall bring the “Tax Levy and Exemption
Certificate” to perform the procedures of declaration at Customs.

The period of validity of the “Tax Levy and Exemption Certificate” is 3 months. The period can be extended upon the approval of the
Customs in charge under special circumstances. The longest additional extension period is 3 months.

For the above-mentioned tax levy and exemption, the examination formalities can either be performed by the Customs in charge or by
Customs in the entry area. The triplicate form of the “Tax Levy and Exemption Certificate” shall be returned to the Customs in charge
for record and examination within 1 month after the goods are given clearance.

Article 11

The Customs shall verify and issue to the enterprises with foreign investment, which implement the product export contract, the “Registration
Handbook of the Customs of the People’s Republic of China on Processing for Reexport of Imported Materials Needed to Implement the
Product Export Contracts by Enterprises with Foreign Investment” (hereinafter referred to as Registration Handbook).

Raw materials, fuel, bulk parts, spare parts, components, auxiliary parts, semi-finished materials and packing materials imported
by enterprises with foreign investment in order to implement product export contract shall be placed under the supervision and control
of Customs as bonded goods. When these goods are imported, no import license is required. Customs shall give clearance in accordance
with the enterprises contract or import and export contract.

Products processed for export by an enterprise with foreign investment, which come under the states export license control, are given
clearance for export in accordance with their export license.

Chapter 3 Provisions on Taxing Import and Export Goods

Article 12

A enterprise with foreign investment, which import goods within the amount of total investment and approved additional investment,
can enjoy preferential tax reduction or exemption treatment. Tax shall be levied, according to regulations, on goods imported over
the amount of investment.

Article 13

No customs duties or industrial and commercial consolidated tax shall be levied on the following goods imported by a Chinese-foreign
equity joint venture:

(1)

machinery and equipment, spare parts and components, and other materials (other materials refer to materials needed for the construction
of a factory and the installation and reinforcing of machinery) contributed as investment by the foreign partner in accordance with
the stipulations of the contract;

(2)

machinery, equipment, spare parts, components and other materials imported with funds within the total investment;

(3)

machinery, equipment, spare parts, components and other materials imported with added capital, the production and supply of which
cannot be guaranteed in China.

Article 14

Goods prescribed in Article 13 as well as production and management equipment imported by a enterprise with foreign investment are
exempted from import duties and industrial and commercial consolidated tax.

Article 15

Machinery, equipment, spare parts and materials directly used in prospecting and development work by Chinese-foreign cooperative exploitation
of offshore petroleum, imported spare parts, components and materials necessary for the manufacture of machinery and equipment used
in exploitation work as well as projects imported with foreign-investment for energy development, the infrastructure of railways,
highways and ports, as well as in industry, scientific research education, and medical and health services, and machinery and equipment
imported in accordance with the stipulations of contracts and materials needed for the construction of factories and sites and for
installing and reinforcing machinery and equipment, are all exempted from import duties and the industrial and commercial consolidated
tax.

Article 16

Goods imported for Chinese-foreign cooperatively managed commerce, catering, photo studios, and other service trades, maintenance
centres, worker training operation, passenger and cargo vehicle transportations, offshore fishing as well as other trades, shall
be levied on import duties and industrial and commercial consolidated tax according to regulations, unless there are separate stipulations
of the State.

Article 17

A reasonable amount of communication equipment, vehicles used in production, office articles (equipment) imported for self-use by
an enterprise with foreign investment within the total amount of investment are exempted from import duties and the industrial and
commercial consolidated tax according to the stipulations of the State.

Article 18

For imported goods enjoying preferential tax reduction and exemption treatment as listed in Articles 13, 14, 15 and 17, the term for
supervision control shall be regulated by Customs. The term is counted from the day the tax-free imported goods are given customs
clearance.

Term of imported goods enjoying preferential tax-free treatment are as follows:

(1)

ships, aircrafts and building materials (including rolled steel, timber, plywood, artificial board and glass) for 8 years

(2)

motor-driven vehicles and house-hold electrical appliances for 6 years

(3)

machinery, equipment and other materials for 5 years

For tax-reduced and exempted goods that exceed the term of customs supervision and control, the enterprise may apply to Customs to
lift supervision and control. Upon ratification, the Customs in charge shall issue a “Certificate of the Customs of People’s Republic
of China on Lifting Supervision and Control over Tax-Reduced and Exempted Imported Goods of Enterprises with Foreign Investment”.

For the tax reduction and exemption of imported goods within the term of customs supervision and control which are resold or sold
in China upon the approval of the original examination and approval department, the Customs shall make an appraisal of depreciation
according to the time of use of these goods and re-levy the import duties.

With regard to tax-reduced or exempted imported goods not included in the term of customs supervision and control, Customs shall make
a price appraisal according to the use of the goods and re-collect the import duties.

Article 19

A reasonable amount of catalytic agents, grinding materials and fuel consumed in production which are imported by the enterprise with
foreign investment in order to perform the product export contract and are directly used in processing export products shall be exempted
from import duties and industrial and commercial consolidated tax.

Article 20

When by-products, substandard products, and leftover industrial surplus generated in the process of production are converted to domestic
sales by the enterprise with foreign investment in order to perform the product export contract, after being verified and according
to the circumstances. Wastes proved really worthless can be exempted from repayment tax.

Materials imported by an enterprise with foreign investment for trial run shall be levied on duties according to regulations when
they are imported.

Article 21

Materials and parts imported by an enterprise with foreign investment for processing products for domestic sales, with the approval
of the economic and trade department in charge, shall be levied on duties when they are imported.

Article 22

Products produced by the enterprise with foreign investment for export, except those commodities which are restricted for export or
except there are separate provisions of the State, are exempted from export duties.

Chapter 4 Management, Verification and Cancellation of Bonded Imported Materials and Parts

Article 23

Enterprises with foreign investment shall set up special account books meeting all customs requirements and state in form of the import,
storage, drawing, using and processing at another factory of bonded imported materials and parts (hereinafter referred to as materials
and parts), as well as the storage, export and internal sales of processed products, and regularly report them to Customs for verification.

Article 24

Materials and parts imported by an enterprise with foreign investment shall be, except due to special reasons and with the approval
of Customs, processed to finished products to perform related export contracts within 1 year from the date of imported.

When imported materials, parts and processed products are changed to internal sales for some reasons, the enterprise with foreign
investment shall have the approval of the economic and trade department concerned, and repay duties and the industrial and commercial
consolidated tax on the imported materials and parts before they are allowed to be sold in the domestic market. For materials and
parts under license management, the import licenses shall be submitted for check.

Article 25

Materials and parts imported by an enterprise with foreign investment are not allowed to be processed directly at another factory.
If they have to be processed at another factory due to special circumstances, the enterprise with foreign investment shall report
to Customs in advance for approval. Within the term of the customs approval, the finished and semi-finished products processed at
another factory must be transferred to the original enterprise. When imported materials and parts of an enterprise with foreign investment
processed into finished or semi-finished products are not directly exported, but instead are sold or transferred to another processing
and exporting enterprise for re-processing and assembling, the enterprise with the imported materials and parts shall, together with
the original enterprise, bring with them the purchasing and sale contract, or production and processing contracts and other related
documents signed by both parties to Customs to perform the carry-over, verification and writing off procedures.

Article 26

For materials and parts under an import contract, an enterprise with foreign investment must, within 1 month from the day of the export
of the last batch of finished products, bring in the “Registration Handbook” and the declaration of export goods and other related
documents to the Customs to perform the verification and writing off procedures.

Article 27

After an enterprise with foreign investment imports materials and parts, if there are changes, transfer and termination of the contract,
it shall immediately perform relevant procedures at Customs.

Chapter 5 Mortgage, Bankruptcy and Liquidation

Article 28

When an enterprise with foreign investment uses goods under customs supervision and control as a loan mortgage to domestic and foreign
financial institutions, it shall apply in advance to the customs department in charge and perform mortgage procedures upon approval.

When the above-mentioned collaterals are being actually handled, the enterprise shall depreciate them according to their used years,
repay duties and complete the customs procedures.

Article 29

When an enterprise with foreign investment terminates or cancels a contract, it shall, within 15 days from the date of approval of
liquidation by examination and approval department, or within 15 days from the date of enforcement of the bankruptcy is decided by
the court, bring with it duplicates of the documents of ratification issued by the examination and approval organization, detailed
statements of the duty levy or exemption on imported materials, the “Tax Levy or Exemption Certificates” and the “Registration Handbooks”
issued by Customs, to apply to the customs in charge and perform the procedures for cancelling the tax reduction and exemption on
imported materials. The enterprise shall return the “Customs Declaration Registration Certificate”, the “Declarant Certificate” and
other related certificates.

Before Customs completes the procedures for cancelling the case of the above-mentioned enterprises duty reduction and exemption of
imported materials, it shall seal the related imported materials for safekeeping.

Article 30

Before a bankrupt enterprise with foreign investment clears off its property, it shall perform the procedures of paying duties for
the supervised and managed goods enjoying preferential customs duty treatment according to State regulations.

Article 31

With regard to the duty reduction or exemption of imported goods of an enterprise with foreign investment which terminates or cancels
a contract within the term of customs supervision and control, Customs shall handle the goods according to the following provisions:

(1)

When the imported goods are left to the Chinese partner of the joint venture for its continued use, or transferred or sold to domestic
units, Customs shall depreciate and re-levy duties on them according to the duration of their usage;

(2)

Imported goods transferred to another domestic enterprise with foreign investment enjoying equal preferential treatment, after approval
of the examination and approval department and completion of the carry-over procedures at Customs, can continue to have duty reduction
and exemption treatment;

(3)

Upon approval from Customs, the foreign partner to a joint venture is allowed to ship the original duty-free imported goods out of
China.

Article 32

For the above-mentioned enterprise with foreign investment which has completed customs procedures, Customs shall issue it the “Notice
for the Enterprise Completing Customs Procedures”.

Chapter 6 Supplementary Provisions

Article 33

Enterprises with foreign investment set up in the special economic zones, economic and technological development areas, free-trade
zones, high-tech development areas, coastal open cities, coastal open areas as well as other regions practising special preferential
policies, shall handle their imported and exported goods in accordance with the Measures. In addition, they shall also implement
the related policies granted by the State to the enterprise with foreign investment in the above-mentioned areas.

Article 34

Enterprises invested by compatriots from Taiwan, Hong Kong and Macao and overseas Chinese, besides carrying out the relevant stipulations
of the Provisions of the State Council on Encouraging Investment of Taiwan Compatriots, and the Provisions of the State Council on
Encouraging Investment of Overseas Chinese and Hong Kong and Macao Compatriots, shall also implement the stipulations of the Measures.

Article 35

With regard to actions violating the Measures, Customs shall deal with them according to the Customs Law of the People’s Republic
of China, and the Rules for the Implementation of the Customs Administrative Law of the People’s Republic of China on Punishment.
For those who violate the Criminal Law, the judicial organ shall affix on them the criminal responsibility according to the Law.

Article 36

When provisions contravene the Measures, the Measures shall be followed as the criterion.

Article 37

The General Administration of Customs is responsible for the interpretation of the Measures.

Article 38

The Measures shall enter into force as of September 1, 1992.

Attachment:(omitted)



 
The General Administration of Customs
1992-08-22

 






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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

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CONSTITUTION ACT, 1982 – page 18

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