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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.

    





CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-03-09 Effective Date  1992-03-09  


Circular of the State Council Concerning the Further Opening up of Heihe City and Three Other Frontier Cities



(March 9, 1992)

    The State Council has decided to further open to the outside world the
following four frontier cities: Heihe City and Suifenhe City in Heilongjiang
Province, Hunchun City in Jilin Province and Manzhouli City in the Inner
Mongolia Autonomous Region.

    After the further opening of the aforesaid four frontier cities, they are
expected to expand actively frontier trade and local trade with Russia and
other countries in the Commonwealth of Independent States; to develop economic
cooperation in various forms such as investment cooperation, technical
exchange, service cooperation and so on; and to make reasonable use of local
advantages to develop manufacturing industries and tertiary industries so as
to promote the prosperity and stability of frontier areas.

    The four frontier cities shall carry out following policies:

    1. With respect to the frontier trades and foreign economic cooperation,
the aforesaid four cities shall implement the “Suggestions Concerning the
Vigorous Development of Frontier Trades and Economic Cooperation for Promoting
the Prosperity and Stability of Frontier Areas” which was approved by the
State Council in 1991, and other related stipulations of the state. The
provinces and the autonomous region may, within the limits of their own
authorities, vest the people’s governments of those four cities with certain
authority in administering frontier trade and economic cooperation. Within
these delegated authorities, contracts including frontier trade, manufacturing
and service cooperation and so on, may be examined and approved by these four
cities themselves. The four cities may establish, after being ratified by the
Ministry of Foreign Trade and Economic Cooperation, one or two more frontier
trade companies at the city level.

    2. Encouraging the development of manufacturing trade and foreign
exchange-making agriculture. During the Eighth Five-Year Plan period, import
custom duties and product taxes (or value-added taxes) shall be exempted for
seeds, seed plants, feed and other related technical equipment imported for
developing export-oriented agricultural products, as well as for machinery and
other goods and materials imported by enterprises for manufacturing
export-oriented products or for technical improvement.

    3. The four cities shall actively absorb domestic and foreign investments
so as to accelerate economic development. At present, the first stage is to
lay stress on absorbing investments from the Commonwealth of Independent
States and those from domestic enterprises so as to promote the development of
export trade; and is meanwhile to actively create favorable conditions to
expand the absorption of foreign investment from other countries or areas. The
people’s governments of the related provinces and autonomous region may
extend, within the limit of their respective authority, the limits of power
vested in the people’s governments of the four cities for examining and
approving foreign investment programs. After being approved by local tax
authorities, the enterprise income tax may be levied at the reduced rate of 24
percent for foreign-invested enterprises.

    The investors from the Commonwealth of Independent States are permitted to
include within their total investment value capital goods and other goods or
equipment as contributing investments. These goods may be sold in accordance
with the frontier trade bartering stipulations and shall be granted a 50
percent reduction in import custom duties and consolidated industrial and
commercial tax.

    4. The aforesaid four cities may set aside certain areas within the
administrative region of each city so as to set up frontier economic
cooperation zones. With the intent of attracting investment from inland
enterprises, each city may establish manufacturing enterprises and relevant
tertiary industries, whose products are to be exported to countries within the
Commonwealth of Independent States. The specific limits of the frontier
economic cooperation zones shall be examined and decided by the Office for
Specific Economic Zones under the State Council in conjunction with other
departments concerned.

    5. Those industrial enterprises in the frontier economic cooperation zones
which have a cooperation agreement with other domestic industrial enterprises
and which have a production capacity and export figures over certain amounts,
may be granted licenses for engaging in import from and export to the
Commonwealth of Independent States after the approval by the Ministry of
Foreign Trade and Economic Cooperation. The specific standards of permitted
import and export amounts shall be decided by the Ministry of Foreign Trade
and Economic Cooperation after a study. Enterprise income tax for the
aforesaid enterprises shall be levied at a reduced rate of 24 percent locally.
Investors in the aforesaid enterprises who bring their share of profits back
to other inland regions, shall have 9 percent more income tax collected by the
tax authorities of those inland regions. The investment direction adjustment
tax shall be exempted within the period of the Eighth Five-Year Plan of the
national economy.

    6. Goods which are obtained by the aforesaid enterprises and the
foreign-invested enterprises located in the frontier economic cooperation
zones through barter trade with countries in the Commonwealth of Independent
States may be sold without authorization, and a 50 percent reduction of
customs duties and consolidated industrial and commercial taxes shall be
granted at the time of their importation. As to those commodities whose
imports are limited by the State, the enterprises shall go through the
examination and approval procedures in accordance with related stipulations by
the State.

    7. With respect to machinery, equipment and other construction goods which
must be imported for the construction of the necessary infrastructure within
the frontier economic cooperation zones, import customs duties and product
taxes (or value-added taxes) may be exempted. Within the period of the Eighth
Five-Year Plan, the newly increased fiscal revenue in the frontier economic
cooperation zones may be left with the localities and used for the
construction of the necessary infrastructure.

    8. Within the period of the Eighth Five-Year Plan, the People’s Bank of
China shall arrange forty million yuan (ten million yuan for each city) in
special fixed assets loans each year, which shall be used for the development
of the frontier economic cooperation zones. This shall be listed in the state
credit and investment plan.

    The people’s governments of Heilongjiang Province, Jilin Province and the
Inner Mongolia Autonomous Region shall strengthen their leadership role
towards the four cities, and shall help them to perfect overall planning of
development. The scale of construction in the four cities must be appropriate
to the feasibility of development, and over-ambitious development plans must
be abandoned. While expanding the opening to the outside world and speeding up
economic construction, the four cities shall strengthen the building of a
socialist society with an advanced culture and ideology, strengthen economic
management and control, and ensure the security and stability in frontier
areas as well as the healthy development of various undertakings.





REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

Regulations of the PRC on Control of Outbound and Inbound Luggage and Articles Carried by Chinese Citizens

     (Effective Date:1992.06.01–Ineffective Date:)

   Article 1. These regulations are formulated in accordance with relevant provisions of “The Customs Law of the People’s Republic of China” and
“Procedures of the Customs of the People’s Republic of China for Controlling Inbound and Outbound Luggage and Articles Carried by
Passengers”.

   Article 2. Chinese citizens mentioned in these regulations refer to Chinese who reside in China and enter and exit of China through passports
for private affairs signed and issued by Chinese public security departments.

   Article 3. Clearance shall be given by the Customs, upon duty levying or exemption according to Customs provisions, to items and amounts of
inbound luggage and articles within limits as prescribed in the attached “Table of Limits on Articles Carried into China by Chinese
Citizens (Referred hereafter as “Table of Limits”, see Appendix 1) if they are carried by Chinese citizens who have resided continuously
outside China for a year or more before the date of entry.

For articles beyond the limit of duty exemption as prescribed in Items 4 and 5 of the Table of Limits, clearance shall be given to
only one article upon examination and approval by the Customs.

   Article 4. Clearance and exemption shall be given by the Customs to articles within limits as prescribed in Items 1, 2 and 3 of the Table of
Limits which are carried into China by Chinese citizens having resided outside China continuously for less than one year before the
current entry. For articles in Items 4 and 5 of the Table of Limits, clearance shall be given to only one article chosen from among
them after duty payment if Chinese citizens enter China for the first time in each Gregorian-calendar year.

Articles beyond the limit of those taxed and permitted to enter shall not be allowed to come into Chinese territories. Travellers
shall go through procedures to claim and send them out of China on their own within the time limit set by the Customs. The Customs
shall dispose of the articles beyond the time limit.

   Article 5. For travellers under the age of 16 full years, clearance shall be given only to articles necessary for travelling.

   Article 6. Except articles the exit of which is prohibited or restricted by the State, a reasonable amount of luggage and articles carried by
Chinese residents for their own use are allowed to leave Chinese territories.

   Article 7. Articles listed in “Table of Articles Prohibited to Enter or Leave the People’s Republic of China” shall not be carried by Chinese
citizens into or outside of China.

   Article 8. Inbound and outbound luggage and articles carried by personnel holding passports for private affairs or valid passes issued by competent
Chinese departments in charge of Hongkong, Macro and Taiwan affairs shall be processed by the Customs pursuant to other related regulations.

Clearance is given only to inbound and outbound luggage and articles necessary for travelling of personnel who hold the above-mentioned
documents and cross Chinese borders with neighbouring countries.

   Article 9. Matters not provided for in these regulations are handled according to related Customs laws and regulations.

   Article 10. The regulations shall come into force as of June 1, 1992.

Appendix 1

TABLE OF LIMITS ON ARTICLES CARRIED INTO CHINA BY CHINESE CITIZENS

Amount

Residing abroad Residing abroad

Item continuously continuously

for more than for less than

one year one year

1. Foodstuffs, clothing

material, clothing, arts

and crafts, ordinary

watches and other

    





CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE COMPLETION OF FORMALITIES CONCERNING RATIFICATION AND APPROVAL OF INTERNATIONAL TREATIES AND AGREEMENTS

Category  FOREIGN AFFAIRS Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1992-08-12 Effective Date  1992-08-12  


Circular of the General Office of the State Council Concerning the Completion of Formalities Concerning Ratification and Approval
of International Treaties and Agreements



(August 12, 1992)

    The conclusion or accession of international treaties and agreements
constitutes serious work and must strictly conform with the Law of the
People’s Republic of China regarding the Procedure of the Conclusion of
Treaties. To facilitate and ensure the timely completion of formalities
associated with ratification, approval, accession and acceptance of
international treaties and agreements and in conformance with the State
Council’s directives, the following circular requires that:

    1. Concerning international treaties or agreements that are statutorily
required to be submitted to the Standing Committee of the National People’s
Congress for ratification or to the State Council for approval, the relevant
department shall submit these documents within three months of the date of
their signature to the State Council. In the event that the existence of
special circumstances requires a choice of a proper opportunity for
ratification of the Standing Committee of the National People’s Congress or
for approval of the State Council, the documents may be submitted at a later
date to the State Council provided that the relevant department include with
these documents the reasons for such delay.

    2. Concerning international treaties or agreements that are to be
submitted to the Standing Committee of the National People’s Congress for
ratification or accession at a date as promised to a foreign party(s), the
relevant department shall submit the documents to the State Council no later
than two and a half months prior to the promised date. Concerning
international treaties or agreements that are to be submitted to the State
Council for approval, accession or acceptance at a date as promised to a
foreign party(s), the relevant department shall submit the documents to the
State Council no later than one and a half months prior to the promised date.
In either case, if by reason of special circumstances or urgent requirements,
submission of these documents within these time period is made impossible, the
relevant department shall consider them as urgent documents by providing
reasons at the time of their submission to the State Council.





LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SAFETY IN MINES

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.65

The Law of the People’s Republic of China on Safety in Mines which has benn adopted at 28th session of the Standing Committee of the
7th National People’s Congress on November 7, 1992 is promulgated now, and shall enter into force as of May 1, 1993.

President of the People’s Republic of China: Yang Shangkun

November 7, 1992

Law of the People’s Republic of China on Safety in Mines ContentsChapter I General Provisions

Chapter II Guarantees for Satefy in Mine Construction

Chapter III Guarantees for Safety in Exploitation of Mines

Chapter IV Safety Managment of Mining Enterprises

Chapter V Supervision and Control over Safety inMines

Chapter VI Disposition of Accidents in Mines

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of ensuring safety in production in mines, preventing accidents and protecting personal safety
of workers and staff at mines and promoting the development of mining industry.

Article 2

All activities relating to exploitation of mineral resources conducted within the boundaries of the People’s Republic of China, as
well as in other sea areas under its jurisdiction must comply with this Law.

Article 3

Mining enterprises must possess facilities that ensure safety in production, establish and perfect the system of safety management,
take effective measures to improve the working conditions for workers and staff and strengthen the work of safety control in mines
in order to ensure safe production.

Article 4

The competent departments of labour administration under the State Council shall exercise unified supervision over the work of safety
control throughout the country.

The competent departments of labour administration of the local people’s governments at or above the county level shall exercise unified
supervision over the work of safety control in mines within their respective administrative regions.

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall administer safety
work in mines.

Article 5

The State shall encourage research in science and technology relating to safety in mines, popularize advanced technology, improve
safety facilities and enhance the level of safe production in mines.

Article 6

Units and individuals that have make outstanding achievements in persistent safe production in mines, prevention of accidents, participation
in rescue work at mines and scientific and technological research relating to safety in mines shall be awarded.

Chapter II Guarantees for Satefy in Mine Construction

Article 7

Safety facilities in mine construction projects must be designed, constructed and put into operation and use at the same time with
the principal parts of the projects.

Article 8

The design papers for mine construction projects must comply with the safety rules and technological standards for mining industry
and shall, according to regulations of the State, be subject to the approval of the authorities in charge of mining enterprises;
those failing to comply with the safety rules and technological standards for mining industry may not be approved.

The designs of safety facilities in mine construction projects must be examined with the participation of the competent department
of labour administration.

The safety rules and technological standards for mining industry shall be formulated by the authorities in charge of mining enterprises
under the State Council.

Article 9

The following items in mining designs must comply with the safety rules and technological standards for mining industry:

(1)

ventilation system of the shaft, and quantity, quality and speed of underground air;

(2)

slope angles of an opencast mine and the width and height of its steps;

(3)

electricity supply system;

(4)

hoisting and transportation systems;

(5)

water control and drainage systems and fire control and fire- extinguishing systems;

(6)

gas control system and dust control system;

(7)

other items concerning safety in mines.

Article 10

Each underground mine must have at least two walkable safety outlets and the direct horizontal distance between such outlets must
comply with the safety rules and technological standards for mining industry.

Article 11

Mines must have transportation and communication facilities that link the mines with the outside and meet safety requirements.

Article 12

Mine construction projects must be constructed in accordance with the design papers approved by the authorities in charge of mining
enterprises.

Upon completion, the safety facilities in mine construction projects shall be subject to inspection for acceptance by the authorities
in charge of mining enterprises, with participation of the competent department of labour administration; those failing to comply
with the safety rules and technological standards for mining industry may not pass inspection for acceptance, and may not be put
into operation.

Chapter III Guarantees for Safety in Exploitation of Mines

Article 13

For exploitation of mines, requirements that ensure safe production must be met, and the safety rules and technological standards
for mining industry corresponding to the exploitation of different types of minerals must be observed.

Article 14

Mine pillars and rock pillars to be preserved as specified in the mining designs shall, within the prescribed period of time, be protected
and may not be exploited or damaged.

Article 15

Equipments, apparatus, protective appliances and safety testing instruments used in mines with special safety requirements must comply
with the national safety standards or safety standards of the mining industry; those failing to comply with the national safety standards
or safety standards of the mining industry shall not be put into use.

Article 16

Mining enterprises must regularly carry out inspection, maintenance and repair of mechanical and electrical equipments and protective
installations thereof, as well as safety testing instruments, so as to ensure safe operation.

Article 17

Mining enterprises inspect the poisonous and harmful substances at the work sites and the percentage of oxygen in underground air
to ensure that they meet safety requirements.

Article 18

Mining enterprises must adopt preventive measures against the following hidden dangers of accidents that jeopardize safety:

(1)

roof falling, slabbing, slope sliding, and surface collapsing;

(2)

gas blast and coal dust explosion;

(3)

bumps, gas outburst and blowout;

(4)

fire and flood on surface and underground;

(5)

perils arising from demolition apparatus and demolition operations;

(6)

perils caused by dust, poisonous and harmful gases, radioactive and other harmful substances; and

(7)

other perils.

Article 19

Mining enterprises shall take preventive measures against perils that may arise out of using mechanical and electrical equipment,
soil tips, mine tips, dams and lagoons, as well as from disused mine pits.

Chapter IV Safety Managment of Mining Enterprises

Article 20

Mining enterprises must establish and improve the safe production responsibility system.

Managers of mines shall be responsible for the safe production in their respective enterprises.

Article 21

Managers of mines shall, on a regular basis, report their work on safe production to the corresponding congresses of workers and staff
or assemblies of workers and staff, thus bringing into play the supervisory role of the congresses of workers and staff.

Article 22

Workers and staff of mining enterprises must observe the laws, regulations and enterprise rules concerning safety in mines.

Workers and staff of mining enterprises have the right to make criticisms, reports and charges against any conduct that endangers
safety.

Article 23

Trade unions of mining enterprises shall safeguard, in accordance with the law, the lawful rights and interests of the workers and
staff in relation to safe production, organize the workers and staff to carry out supervision over the safety work of the mines.

Article 24

If a mining enterprise violates any laws or regulations concerning safety, the trade union is enpost_titled to demand that the management
of the enterprise or the department concerned deal with the case seriously.

Meetings held by mining enterprises to discuss matters concerning safe production shall be attended by representatives of trade unions,
and trade unions have the right to advance their opinions and proposals.

Article 25

Where the management of an enterprise gives a command contrary to the established rules and compels workers to operate under unsafe
conditions, or, major hidden dangers of accidents and occupational hazards are found in the course of production the trade union
has the right to put forward proposals for a solution; where the life of the workers and staff is in danger, the trade union has
the right to propose to the management that the workers and staff be evacuated from the dangerous site in an organized manner, and
the management must make a decision without delay.

Article 26

Mining enterprises must give safety education and training to their workers and staff; those who have not received safety education
and training may not take up a post of duty.

Special operators in charge of safe production in mining enterprises must receive special training; they may take up a post of such
duty only after they have obtained a certificate of operation qualification after passing due examination and verification.

Article 27

Managers of mines must prove, through examination, to have special knowledge of safety and the capability of leading safe production
and disposing of accidents in mines.

Personnel in charge of safety work in mining enterprises must possess necessary specialized knowledge of safety and experience in
safety work in mines.

Article 28

Mining enterprises must distribute to their workers and staff labour protective gadgets necessary for guaranteeing safe production.

Article 29

Mining enterprises may not recruit adolescents to engage in underground work.

Mining enterprises shall in accordance with regulations of the State practise special labour protection with respect to women workers
and staff, and may not assign women workers any underground work.

Article 30

Mining enterprises must adopt preventive measures against accidents in mines, and be responsible for their implementation.

Article 31

Mining enterprises shall establish rescue and first-aid groups composed of full-time or part-time personnel and equipped with necessary
equipment and medicine.

Article 32

Mining enterprises must, in accordance with regulations of the State, draw special funds for safety technical measures from the amount
of sales of their mineral products. The special funds for safety technical measures must be used exclusively to improve conditions
of safe production in mines and may not be diverted to any other purposes.

Chapter V Supervision and Control over Safety inMines

Article 33

Competent departments of labour administration of the people’s governments at or above the county level shall exercise the following
supervisory functions and responsibilities with respect to safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises and the authorities in charge of mining
enterprises;

(2)

to participate in the examination of designs of safety facilities in mine construction projects as well as the inspection for acceptance
upon completion of such projects;

(3)

to inspect the working conditions and state of safety in mines;

(4)

to inspect the work of giving education and training in safety to workers and staff by mining enterprises;

(5)

to supervise the allocation and use of the special funds for safety technical measures by mining enterprises;

(6)

to participate in and supervise investigation and disposition of accidents in mines;

(7)

other supervisory functions and responsibilities provided for in laws and administrative rules and regulations.

Article 34

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall exercise the following
functions and responsibilities with respect to the control of safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises;

(2)

to examine and approve designs of safety facilities in mine construction projects;

(3)

to be responsible for the inspection for acceptance upon completion of safety facilities in mine construction projects;

(4)

to organize the training of managers of mines and personnel in charge of safety work in mining enterprises;

(5)

to investigate and deal with serious accidents in mines; and

(6)

other controlling functions and responsibilities provided for in laws and administrative rules and regulations.

Article 35

The personnel in charge of mine safety supervision under the competent department of labour administration are enpost_titled to enter mining
enterprises and make on-the-spot inspections on the state of safety; when circumstances of emergency threatening the safety of workers
and staff are discovered, they shall demand a prompt action thereof by the mining enterprise involved.

Chapter VI Disposition of Accidents in Mines

Article 36

In case an accident occurs in a mine, the mining enterprise concerned must organize rescue work immediately so as to prevent the spreading
of the accident and reduce casualties and property losses, and must immediately and truthfully report any accident involving causalities
to the competent department of labour administration and the authorities in charge of mining enterprises.

Article 37

In the case of an ordinary mine accident, the mining enterprise concerned shall be responsible for the investigation and the disposition
thereof.

In the case of a serious mine accident, the relevant government, together with its competent department, the trade union and the mining
enterprise concerned, shall investigate and deal with the case in accordance with the provisions of administrative rules and regulations.

Article 38

Mining enterprises shall, in accordance with regulations of the State, give pensions or compensations for workers and staff members
who died or were injured in accidents in mines.

Article 39

After the occurrence of a mine accident, dangers at the scene shall immediately be eliminated, causes of the accident promptly ascertained
and preventive measures timely devised. Production may be resumed only after dangers at the scene have been eliminated.

Chapter VII Legal Responsibilities

Article 40

Whoever commits any of the acts enumerated below in violation of this Law shall be ordered by the competent department of labour administration
to make a rectification and may concurrently be punished by a fine; if the circumstances are serious, the case shall be submitted
to the people’s government at or above the county level for a decision ordering the suspension of production for a cleaning up; the
person in charge and the person directly responsible shall be subjected to administrative sanctions by the unit to which they belong
or by the competent authorities at higher levels:

(1)

assigning any worker or staff member to a post of duty without due education and training in safety;

(2)

using equipment, apparatus, protective appliances and safety examination and testing instruments manufactured not in compliance with
the national safety standards or safety standards of the industry;

(3)

failing to allocate or use the special funds for safety technical measures in compliance with relevant regulations;

(4)

refusing personnel in charge of safety in mines to make on-the-spot inspections, or concealing hidden dangers of accidents or failing
to truthfully report the situations when being inspected;

(5)

failing to make timely and truthful reports, as prescribed, on accidents at mines.

Article 41

Mine mangers without special knowledge of safety, or specialized operators in charge of safe production taking up a post of duty without
certificates of operation qualifications shall be ordered by the competent department of labour administration to make a rectification
within a fixed period of time; where rectifications are not made upon expiration of the period, the matter shall be submitted to
the relevant people’s government at or above the county level for a decision ordering the suspension of production, and production
may not be resumed until qualified personnel are assigned to such posts after readjustment.

Article 42

Where a mine construction project is started without having the designs of its safety facilities approved, the mining enterprise concerned
shall be ordered by the authorities in charge of mining enterprises to stop the construction; with respect to the mining enterprise
refusing to carry out the order, the matter shall be submitted by the authorities in charge of mining enterprises to the relevant
people’s government at or above the county level for a decision on the rescission of its mining permit and business license by the
competent authorities.

Article 43

Where the safety facilities in a mine construction project are put into operation without having been inspected for acceptance or
without having passed inspection for acceptance, the mining enterprise concerned shall be ordered to stop production by the competent
department of labour administration in conjunction with the authorities in charge of mining enterprises, and shall also be fined
by the competent department of labour administration; with respect to the mining enterprise refusing to stop production, the matter
shall be submitted by the competent department of labour administration to the relevant people’s government at or above the county
level for a decision on the rescission of its mining permit and business license by the competent authorities.

Article 44

Where a mining enterprise already put into operation but without the due conditions for safe production insists on forced exploitation,
it shall be ordered by the competent authorities of labour administration in conjunction with the authorities in charge of mining
enterprises to make improvement within a fixed period of time; with respect to the mining enterprise that still fails to meet the
conditions for safe production upon expiration of the period, the matter shall be submitted by the competent department of labour
administration to the relevant people’s government at or above the county level for a decision on the suspension of production for
the purpose of readjustment or on the rescission of its mining permit and business license by the competent authorities.

Article 45

If any party is not satisfied with the decision on administrative sanctions, it may, within 15 days from receiving the notification
of the decision, apply for reconsideration to the higher authorities next to the one that has made the decision; the party also may
directly bring a suit before a people’s court within 15 days from receiving the notification of the decision.

The authorities responsible for shall make a decision within 60 days from receiving the application for reconsideration. If the party
is not satisfied with the decision, it may bring a suit before a people’s court within 15 days from receiving the decision. If upon
expiration of the time limit, the authorities fail to make a decision, the party may bring a suit before the people’s court within
15 days upon expiration of the period for reconsideration.

If upon expiration of the time period, the party concerned has not applied for reconsideration, nor brought a suit before the people’s
court, nor complied with the decision, the authorities that has made the decision may apply to the people’s court for compulsory
execution.

Article 46

Any responsible person of a mining enterprise who gives command in violation to established regulations and compels workers to carry
out operations at risks, thus causing accidents involving serious causalities, shall be investigated for criminal responsibilities
in accordance with the provisions of Article 114 of the Criminal Law.

Article 47

Any responsible person who fails to take measures with respect to hidden dangers of accidents in a mine, thereby causing accidents
involving serious causalities, shall be investigated for criminal responsibilities by applying mutatis mutandis the provisions of
Article 187 of the Criminal Law.

Article 48

Where any person in charge of safety supervision or safety control in a mine abuses his power, neglects his duty, or practices favoritism
and irregularities, and if the act constitutes a crime, the person concerned shall be investigated for criminal responsibilities
in accordance with the law; if the act does not constitute a crime, administrative sanctions shall be given.

Chapter VIII Supplementary Provisions

Article 49

Regulations for implementation shall be formulated by the competent department of labour administration under the State Council in
accordance with this Law, and the regulations formulated shall be submitted to the State Council for approval before implementation.

The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may, in accordance with this Law and in light of the actual conditions of their respective areas, draw up measures of
implementation.

Article 50

This Law shall enter into force as of May 1, 1993.



 
The Standing Committee of the National People’s Congress
1992-11-07

 






OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ABSORPTION OF FOREIGN INVESTMENT FOR THE DEVELOPMENT OF THE YANGPU AREA IN HAINAN PROVINCE

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-03-09 Effective Date  1992-03-09  


Official Reply of the State Council Concerning the Absorption of Foreign Investment for the Development of the Yangpu Area in Hainan
Province



(March 9, 1992)

    People’s Government of Hainan Province:

    The Report on the Project Proposal for the Foreign-Invested Development
and Management of Thirty Square Kilometers of Land in the Yangpu Development
Zone, submitted by your Province, has been received. An official reply is
hereby made as follows:

    1. We have agreed in principle with your Province to absorb foreign
investment for the development and management of about thirty kilometers of
land in the Yangpu area and build the area into the Yangpu Economic
Development Zone. You are allowed to negotiate with foreign investors
according to the provisions of the Interim Measures for the Administration of
the Foreign-Invested Development and Management of Tracts of Land.

    2. We have agreed in principle that your Province may assign to foreign
developers the right to the use of all about thirty square kilometers of land
in the Yangpu area at a time. You are allowed to negotiate with foreign
investors and conclude contracts for the assignment of land use rights under
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. The contracts shall expressly provide detailed conditions and terms of
development and exploitation of land, assignment, lease and mortgage of land
use rights, and land-use fees. The contracts shall take effect with the
approval of the State Council.

    After the right to the use of State-owned land has been assigned, the
ownership of resources and objects buried thereunder shall be reserved by the
State. If it is necessary to exploit and utilize them, the relevant laws and
administrative regulations of the State shall apply. The exploitation of
underground water resources in the Yangpu area shall be planned and controlled
in a rational way.

    3. The development of land may be conducted by a single foreign investor,
or jointly by several foreign investors, or by a Sino-foreign joint venture.
For the purpose of the development and management of land, development
enterprises shall be established according to the laws. Under the jurisdiction
and protection of laws of the State, such enterprises must observe laws and
regulations of the State in engaging in any activity.

    4. The Yangpu Economic Development Zone should be built into an
export-oriented industrial area, with advanced technology industries as its
leading sector and with the third industry developed correspondingly.
Development enterprises shall, according to this principle, draw up their
overall planning for the development and construction in the Yangpu Economic
Development Zone, which shall specify the main targets of the development and
construction, and its respective targets in different stages, the details and
requirements for achieving the development target, as well as the plans for
using the developed land.

    5. The projects for the construction in the Yangpu Economic Development
Zone shall reflect the State industrial policies and meet the requirements for
economic development in Hainan, and shall be subject to the approval of the
Chinese Government. With regard to the authorities for examination and
approval of these projects, the relevant provisions of the Circular Concerning
the Summary of a Forum on Further Opening up and Quickening Economic
Development and Construction on Hainan Island, approved and transmitted by the
State Council in 1988, shall apply. Projects with foreign investment within
the Development Zone shall, if they don’t depend on the domestic market in
terms of finance, energy resources, raw materials and the sale of products, be
subject to the examination and approval of your Province. However, for those
of them beyond the approved quota, the project proposals shall obtain the
consent of the State Planning Commission before you examine and approve them.
Projects for infrastructure constructed within the Development Zone according
to planning may be examined and approved by your Province.

    With the approval of the People’s Bank of China, banks or other financial
institutions with foreign investment may be established within the Development
Zone.

    6. We have agreed in principle that the Yangpu Economic Development Zone
shall be administered as a closed or separate area. The detailed separation
and supervision measures shall be formulated by the General Customs
Administration and the Special Economic Zone Office under the State Council in
consultation with other relevant departments, and shall be enforced upon
approval.

    7. Subject to the effective separation and supervision measures, policies
for bonded areas shall apply in the Yangpu Economic Development Zone to the
import and export control, collection and exemption of import and export
duties, product tax and value-added tax levied on behalf of the tax
authorities, but not to the administration of consumer goods imported for
market supplies. Before the enforcement of such measures, policies and
measures described in the Circular Concerning the Summary of a Forum on
Further Opening up and Quickening Economic Development and Construction on
Hainan Island, approved and transmitted by the State Council in 1988, and the
Provisions of the State Council Concerning the Encouragement of Investment in
Developing Hainan Island in 1988, shall continue to apply in the Yangpu area.

    Other tax policies in the Yangpu Economic Development Zone shall refer in
principle to the tax policies of the Hainan Special Economic Zone laid down by
the State. The reduction and exemption of taxes under the central authorities
shall be subject to the approval of the Ministry of Finance and the State
Administration of Taxation. Taxes under the local authorities shall be
adjusted in the light of the actual situations in different industries and
nobody may reduce and exempt all of them at a time.

    8. We have agreed in principle to your Province’s preliminary plan for
infrastructure construction with regard to facilities for water supply,
electricity supply, post and telecommunications, and means of transport in the
Yangpu Economic Development Zone. If the linking up of facilities and the
division of management work involves institutions outside the Development
Zone, you shall invite the institutions concerned to sign an agreement or a
contract with development enterprises so as to specify the detailed
requirements and measures. The issue on the building of a small-scale airstrip
in Yangpu shall be referred to the competent authority for special discussion.

    9. The overall planning for allocating shorelines for ports in Yangpu Bay
shall be drawn up by the traffic departments, in which consideration shall be
given to reserve the land extension in depth from shorelines according to the
actual needs for planned ports or piers. The contracts for the assignment of
land use rights and the overall planning for the development and construction
shall specify such consideration. Subject to the planning, Chinese and foreign
parties may jointly invest in the construction and management of ports and
piers, and foreign investors may build and operate piers for the use of
enterprises. Ports and navigation affairs shall be under the unified
administration of the traffic departments.

    10. We have agreed to your Province’s guideline on environmental
protection and measures for controlling the total quantity of pollutants
charged in the Yangpu Economic Development Zone. You should lose no time in
completing the assessment of regional environmental impact and doing other
preparatory work before the development and construction of the land is
started. Construction projects shall be in strict conformity with the
requirements of environmental protection. Facilities for the prevention and
control of pollution shall be designed, built and put into operation
simultaneously with the main project.

    11. We have agreed in principle to your Province’s conception about the
administrative organ to be set up in the Yangpu Economic Development Zone. You
must make the administrative staff simple and efficient, divide functions
among them clearly, and intensify the effective administration as a government
department.

                  





CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF NANNING, KUNMING, PINGXIANG AND OTHER FOUR BORDER CITIES (OR COUNTIES OR TOWNS)

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-06-09 Effective Date  1992-06-09  


Circular of the State Council Regarding the Further Opening of Nanning, Kunming, Pingxiang and Other Four Border Cities (or Counties
or Towns)



(June 9, 1992)

    The State Council has resolved to further open such places as
Nanning (city), Kunming (city), Pingxiang (city), Dongxing (town),
Wanting (city), Ruili (county) and Hekou (county).

    1. The policies for costal open cities shall be implemented in the cities
of Nanning and Kunming.

    2. The following policies shall be implemented in some cities (or counties
or towns)–Pingxiang, Dongxing, Wanting, Ruili, and Hekou:

    (1) Border trade and economic cooperation with foreign companies shall
be carried out in accordance with relevant regulations approved by the State
Council. The people’s governments of Guangxi Zhuang Autonomous Region and
Yunnan Province within the limit of their authority, may grant certain
authority to the governments of the five cities (or counties or towns)
concerning the administration of border trade and economic cooperation so
that they may have the right to examine and approve some economic contracts
concerning border trade, product processing, and labor service cooperation
without asking a superior department for instructions. The five cities (or
counties or towns) may, with the approval of the Ministry of Foreign Trade
and Economic Cooperation, increase the number of companies dealing with border
trade by one or two.      

    (2) The development of processing trades and foreign-exchange-earning
agriculture shall be encouraged in these regions. During the Eighth Five-Year
Plan period, the five cities (or counties or towns) shall be exempt from
import duties and product taxes (value-added taxes) for imported seeds, seed
plants, breeding stocks, fodder, related technical equipment for developing
the export of agricultural products, and imported machinery and other
materials for processing and export of agricultural products and for
technological reform of enterprises.

    (3) Both domestic and foreign investment should be actively absorbed to
promote development of the economy. The governments of Guangxi Zhuang
Autonomous Region and Yunnan Province, within the limit of their authority,
may extend the authority of the governments of the five cities (or counties or
towns) to examine and approve foreign-funded projects. Income taxes shall be
levied on foreign-funded enterprises in the five cities (or counties or towns)
at a reduced rate of 24 percent.

    (4) Investors from neighboring countries may include the means of
production or other materials and equipment in the total amount of their
investment. These goods may be sold in accordance with the regulations
concerned, and the import duties and the consolidated industrial and
commercial tax shall be reduced by half.

    (5) Qualified cities (or counties or towns) are allowed to establish
border economic cooperation zones, and set up export-oriented processing
enterprises and relevant tertiaries. The specific scope of border economic
cooperation zones shall be examined and approved by the Special Economic
Zones Office of the State Council in conjunction with relevant departments.
The imported machines, equipment, and other materials, as well as office
articles within a reasonable quantity, so long as they are used for
infrastructure construction of border economic cooperation zones, shall be
exempt from import duties and product taxes (value-added taxes). During the
Eighth Five-Year Plan period, the newly-earned financial income of the
economic cooperation zones should be reserved for the construction of local
infrastructure.

    (6) If the scale of production and export of export-oriented productive
enterprises which have links with the inland areas in the border economic
cooperation zones reaches a certain volume, they shall be granted the right
to import from and export to the neighboring countries with the approval of
the Ministry of Foreign Trade and Economic Cooperation. The income taxes of
the inland-associated enterprises shall be levied at a reduced rate of 24
percent supposing the profits remain in the locality, but an additional amount
of nine percent shall be collected by the region in which the inland investors
are if they transfer the profits to inland areas. Until the end of the Eighth
Five-Year Plan period, the above-mentioned enterprises shall be exempt from
regulation tax on investment orientation.

    (7) The commodities received through barter by inland-associated
enterprises and foreign-funded enterprises in the border economic cooperation
zones may be sold by enterprises themselves, and import duties and
consolidated industrial and commercial tax shall be reduced by half for these
commodities. For importing commodities on which the state has placed
restrictions, the formalities of import examination and approval should be
handled in accordance with the relevant regulations of the state.

    (8) The state shall grant appropriate subsidies to assist construction of
customs and other port facilities in these five cities (or counties or towns).
The specific amount and means of subsidization shall be appraised and decided
by the Ministry of Finance.

    The five cities (or counties or towns) are allowed to collect managerial
fees (0.6 yuan/ton) on goods passing through the ports. These fees shall be
used for maintenance and construction of the port facilities and cities.

    (9) Every year during the Eighth Five-Year Plan period, the People’s Bank
shall allocate to Wanting and Ruili 10 million yuan each, and to Pingxiang,
Dongxing, and Hekou 20 million yuan each as credit for fixed assets. These
allocations shall be used for the construction of the border cities and the
border economic cooperation zones and shall be included in the state’s credit
and investment plan.

    (10) From this year to the end of the Eighth Five-Year Plan period, each
of the five cities (or counties or towns) shall be allowed to import 30 items
of transportation for their own use, which shall be exempt from import duties,
value-added taxes and special consumption taxes. These vehicles are to be used
only within the local region, and resale or conveyance outside is forbidden.
This shall be strictly supervised by the local customs offices. The authority
to check and issue import licences shall be granted to the department of
economy and trade of the Guangxi Zhuang Autonomous Region and Yunnan Province.

    (11) Investment and establishment of overseas enterprises in peripheral
countries shall be permitted. According to Document No.13 issued by the State
Council in 1991, the projects with a total investment volume below US$1
million shall be examined and approved by the Guangxi Zhuang Autonomous Region
and Yunnan Province, and licences shall be issued after authority is granted
by the Ministry of Foreign Trade and Economic Cooperation.

    The governments of the Guangxi Zhuang Autonomous Region and the Yunnan
Province should reinforce their leading role over the further-opened cities
and border towns and help them make overall plans for construction and
development. The scale of construction for land development should be suited
to the practical conditions of the localities. While expanding opening up and
speeding up economic construction, the two regions should strengthen
construction of the legal system and socialist spiritual civilization, tighten
macro-control over the economy, take strong measures against crimes such as
smuggling and narcotics trafficking so as to guarantee the security and
stability of the borders and the sound development of all undertakings.





MEASURES FOR THE ADMINISTRATION OF REGISTRATION OF ENTERPRISES FROM FOREIGN COUNTRIES (REGIONS) ENGAGING IN PRODUCTION AND BUSINESS WITHIN THE TERRITORY OF CHINA

Measures for the Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business
within the Territory of China

Decree No.10, 1992 of State Administration for Industry and Commerce
August 15, 1992

(Promulgated by Decree No. 10 of State Administration for Industry and Commerce on August, 15, 1992)

Article 1

These Measures are formulated in accordance with laws and regulations with a view to promoting economic cooperation with foreign
countries, strengthening administration of enterprises from foreign countries (regions) (hereinafter referred to as foreign enterprises)
that are engaged in production and business within the territory of China, protecting their legitimate rights and interests, and
maintaining economic order.

Article 2

According to relevant laws and regulations, foreign enterprises, approved by the State Council and administrative authorities authorized
by the State Council (hereinafter referred to as examination and approval authorities) and engaged in production and business with
the territory of China, shall register with the State Administration for Industry and Commerce or the local administrations for industry
and commerce authorized by the State Administration for Industry and Commerce (hereinafter referred to as the administrative departments
of registration). Foreign enterprises may start production and business only when their applications for registration have been examined
and approved by administrative departments of registration and they are given Business Licenses of People Republic of China (hereinafter
referred to as Business Licenses. Foreign enterprises, who fail to be approved by the examination and approval authorities and whose
applications for registration fail to be examined and approved by administrative departments of registration, may not be engaged
in production and business within the territory of China.

Article 3

According to the state’s laws and regulations in force, foreign enterprises shall apply for registration if they are engaged in the
following production and business:

(1)

Exploration and exploitation of onshore and offshore oil and other mineral resources,

(2)

Contract projects for the construction and decoration of houses and civil engineering, or the installation of circuit pipelines and
equipment,

(3)

Operation and management of foreign-invested enterprises by contracts or authorization,

(4)

Branches established in China by foreign banks, and

(5)

Other production and business permitted by the State.

Article 4

When the projects for production and business conducted by foreign enterprises are approved by the examination and approval authorities,
the foreign enterprises shall register with the administration departments of registration within 30 days of approval.

Article 5

When the foreign enterprises apply for registration, they shall submit the following documents or certificates:

(1)

Applications signed by the chairperson of the board of directors or general manager, and

(2)

Documents and certificates approved by the examination and approval authorities.

Those engaged in the exploration and exploitation of onshore and offshore oil and other mineral resources shall submit documents approved
by the Ministry of Foreign Trade and Economic Cooperation; those engaged in contract projects for offshore oil shall submit approval
letter issued by China National Offshore Oil Corporation; those engaged in contract projects for onshore oil shall submit approval
letter issued by China National Petroleum Corporation or the entities authorized by it; those foreign banks that establish branches
shall submit approval documents issued by People’s Bank of China; those engaged in contract projects for the construction and decoration
of houses and civil engineering, or the installation of circuit pipelines and equipment shall submit Qualification Certificate for
Foreign-Owned Enterprises to Contract Projects issued by the Ministry of Construction; those engaged in operation and management
of foreign-invested enterprises by contracts or authorization shall submit approval document issued by authorities in charge of the
examination and approval of the contracts and articles of association of the foreign enterprises; those engaged in other production
and business shall submit approval documents issued by administrative authorities concerned in accordance with the industry which
their production and business belong to.

(3)

Contract for the production and business that foreign enterprises are engaged in (branches established in China by foreign banks are
not subject to this item).

(4)

Legitimate certificate of operation for enterprises issued by the governments of the countries (regions) where the foreign enterprises
are from,

(5)

Certificate of capital creditability of foreign enterprises,

(6)

Authorization letter issued by the China project person in-charge designated by the chairperson of the board of directors or the general
manager of the foreign enterprises, his/her resume, and ID card, and

(7)

Other relevant documents

Article 6

Main items about the registration of the foreign enterprises: name of enterprise, catalogue of enterprise, address, director, amount
of the fund, business scope, and period of business.

Name of enterprise refers to the name of the foreign enterprise stated in the legitimate certificate of operation, and it shall be
consistent with the name in the contract signed by the foreign enterprise for production and business. When foreign banks establish
branches in China, they shall name the branches after their own names with the name of the sites where the branches are located and
“branch”.

Catalogue of enterprise refers to divisions determined by the different elements of production and business that foreign enterprises
are engaged, and the types are: exploration and exploitation of mineral resources, contract projects, foreign-funded banks and contract
operation and management.

Address of enterprise refers to the sites where foreign enterprises are engaged in production and operation within the territory of
China. If the residences of the foreign enterprises within the territory of China are inconsistent with the sites of their business,
then they shall register both.

Director of enterprise refers to the project director designated by the chairperson of the board of directors or the general manager
of the foreign enterprise.

Amount of the fund refers to the total expense of the foreign enterprise for production and business, such as the total amount of
the contract, the accumulative expense of management of the foreign enterprise contracted or entrusted to operate and manage foreign-invested
enterprises during its period of management, the expense for exploration, exploitation, production and operation in the cooperation
of oil exploitation, operation funds of the branches of the foreign banks.

Business scope refers to the scope of production and business conducted by foreign enterprises within the territory of China. Period
of business refers to the period of production and business conducted by foreign enterprises within the territory of China.

Article 7

Administrative departments of registration shall decide whether or not they will approve the registration within 30 days upon their
acceptance of the applications submitted by foreign enterprises. Upon the approval, the administrative departments shall issue Business
licenses to them.

Article 8

Based on the different categories of production and operation foreign enterprises are engaged in, the term of validity of “Business
Licenses” shall be checked and ratified respectively in accordance with the following terms:

(1)

For foreign enterprises engaged in the exploration and exploitation of mineral resources, the term of validity of their Business Licenses
will be checked and ratified in line with the terms of exploration, exploitation and production.

(2)

For branches set up by foreign banks, the term of validity of their Business Licenses is 30 years, and the licenses shall be renewed
every 30 years. And

(3)

For foreign enterprises engaged in other production and business, the term of validity of their Business Licenses shall be checked
and ratified based on the term of operation specified in their contracts.

Article 9

Foreign enterprises shall conduct business within the scope of production and business checked and ratified by the administrative
departments of registration. Their legitimate rights and interests and business are protected by Chinese laws. Foreign enterprises
may not conduct production and business beyond the scope of production and business checked and ratified by the administrative departments
of registration.

Article 10

If foreign enterprises change their registration items, they shall apply to the administrative departments of registration for making
changes in their registration within 30 days.

The procedures for handling the changes in registration and the documents and the certificates required to be submitted shall follow
the provision in Article Five of these Measures.

Article 11

If foreign enterprises do not intend to apply for an extension of the registration at the expiration of the term of validity of the
Business Licenses, or if they discontinue their contracts or agreements ahead of time, they shall apply to the original administrative
departments of registration for cancellation of registration.

Article 12

When applying for cancellation of registration, foreign enterprises shall submit the following documents or certificates:

(1)

Applications for cancellation of registration signed by the chairperson of the board of directors or the general manager of the foreign
enterprises;

(2)

Business Licenses, their duplicates and official seals;

(3)

Certificates showing the completion of taxes issued by the customs and taxation departments; and

(4)

Documents of approval on the applications for foreign enterprises’ cancellation of registration issued by the competent departments
in charge of their projects.

When checking and ratifying the foreign enterprises’ cancellation of registration, the administrative departments of registration
shall recall Business Licenses, their duplicates, official seals, cancel the register numbers, and notify relevant banks, such departments
as taxation and customs and so on.

Article 13

Foreign enterprises shall pay registration fees when they register for business or for changes in registration. The fee standard
for registration shall follow the provisions stipulated in Notification of the fee standard for the registration of enterprises as
legal persons issued by the Ministry of Finance, the State Price Bureau and the State Administration for Industry and Commerce.

Article 14

Branches of foreign banks, foreign enterprises engaged in business management and that engaged in the exploration and exploitation
of mineral resources shall receive annual check-up in the original administrative departments of registration before May every year.
When receiving annual check-up, they shall submit Business Licenses, their duplicates, reports on last year’s production and business,
etc.

Article 15

Chinese enterprises that have signed contracts for production and business with foreign enterprises may notify timely the administration
departments of registration of cooperation projects, contents and time, and assist the foreign enterprises in going through business
registration, registration for changes, and cancellation of registration. If the Chinese enterprises fail to perform their duty,
they shall bear commensurate responsibilities.

Article 16

What the administrative departments of registration mainly supervise and administer the foreign enterprises are as follows:

(1)

To supervise the foreign enterprises in going through business registration, registration for changes, and cancellation of registration
according to these Measures;

(2)

To supervise the foreign enterprises in conducting production and business within the scope of business checked and ratified by the
administrative departments of registration;

(3)

To supervise the foreign enterprises to receive annual check-up; and

(4)

To supervise the foreign enterprises to conform with Chinese laws and regulations.

Article 17

If foreign enterprises violate these Measures, the administrative departments of registration shall investigate and punish them in
accordance with the articles concerning punishment of the Regulations of the People’s Republic of China for Controlling the Registration
of Enterprises as Legal Persons and Rules for Implementation thereof.

Article 18

Enterprises from Hong Kong, Macao, and Taiwan engaged in the above-mentioned production and business shall follow these Measures.
Foreign enterprises with contracts for business management over domestic enterprises shall follow these Measures.

Article 19

The State Administration for Industry and Commerce is responsible for the interpretation of these Measures.

Article 20

These Measures shall take effect from October 1, 1992.



 
The State Administration for Industry and Commerce
1992-08-15

 






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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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