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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.

    





REGULATIONS ON ENCOURAGEMENT OF FOREIGN INVESTMENT OF HUNAN PROVINCE

Regulations on Encouragement of Foreign Investment of Hunan Province

     (Effective Date:1992.02.15–Ineffective Date:)

   Article 1. With a view to improve investment environment, absorb more investment from foreign corporations, enterprises and other economic organizations
and individuals (hereinafter referred to as foreign investors) and promote the province’s economic development, these regulations
are formulated in accordance with relevant laws and administrative regulations and with reference to the concrete conditions of the
province.

   Article 2. These regulations are to be put into effect by governments at the county level or higher.

The foreign economic relations and trade departments of governments at the county level or higher are in charge of the work of absorbing
foreign investment in areas under their jurisdiction. All departments concerned including those of planning, economic, taxation,
industrial and commerce administration, banks, foreign exchange control, customs, commodity inspections and insurance shall try their
best to help promote such a work within their assigned duties.

   Article 3. Apart from State-formulated preferential treatments, foreign investors shall enjoy additional preferences in the province in accordance
with these regulations and their legal rights and interests shall be protected by Chinese law.

Foreign investors in the province shall abide by Chinese laws.

   Article 4. Foreign investors may invest in all parts of the province.

Foreign investments are especially encouraged in:

economic and technical development zones and high and new technological development zones;

basic industries and infrastructure such as energy, communications and raw materials and development-oriented projects in agriculture,
forestry and animal husbandry in line with the national industrial policy;

export-oriented and technically advanced enterprises and technical renovations of existing productive firms.

   Article 5. Foreign investors may take the following forms in their investment:

a. To establish fully foreign-funded enterprises;

b. To establish Sino-foreign joint-equity or Sino-foreign cooperative enterprises;

c. To engage in processing and assembling with customer’s materials and parts and compensatory trade; and

d. To engage in State-permitted land development, enterprise leasing operation and other forms.

   Article 6. Foreign investors may contribute their respective investments in cash, kind, industrial property rights, proprietary technology and
other property rights.

   Article 7. Formalities for foreign investment application shall be simplified and such application shall be examined and approved timely. The
authority and procedures for such examination and approval are to be defined by the provincial people’s government.

   Article 8. Foreign-funded, Sino-foreign joint-equity and Sino-foreign cooperative enterprises (hereinafter referred to as foreign-funded enterprises)
which comply with Chinese regulations for legal person, upon approval by administrations of industry and commerce, shall obtain the
status of Chinese legal person.

   Article 9. Foreign investors may appoint their relatives or friends in China as their agents.

Foreign investors may recommend that their relatives or friends in China be employed in the enterprises where they invest.

   Article 10. Relevant departments shall preferentially arrange water and power supply, transport and telecommunications facilities needed by foreign-funded
enterprises for operation and charge them on a par with local State-owned enterprises. Fuel and raw materials which need to be supplied
by the Chinese partner will be preferentially provided by goods and materials departments.

   Article 11. Chinese partner of Sino-foreign joint-equity and Sino-foreign cooperative enterprises may apply for bank loans to make up for the
deficiency between its pledged investment and self-raised funds.

Short-term circulating loans and other necessary credits needed by foreign-funded enterprises in the process of production and circulation,
upon approval banks, may be extended in priority.

   Article 12. Machines, equipment, parts, vehicles for productive purposes and other goods and materials imported by foreign-funded enterprises
as investment are exempted from Customs duty and consolidated industrial and commercial tax in accordance with Chinese regulations.

Machinery, vehicles for productive purposes, raw materials, fuel, loose parts, parts, elements and components and supplementary parts
imported by foreign-funded enterprises to fulfill product export contracts are exempted from import licences, Customs duty and consolidated
industrial and commercial tax.

Apart from those controlled by the State, export products produced by foreign-funded enterprises are exempted from Customs duty and
consolidated industrial and commercial tax.

   Article 13. Productive foreign-funded enterprises with operational terms of more than ten years are exempted from local taxes for ten years and
non-productive ones for five years.

Enterprises engaged in energy, transport infrastructure and raw materials and enterprises established in economic and technical development
zones and high and new technological development zones are exempted from local taxes.

   Article 14. Export-oriented enterprises after the period of exemption of income tax in accordance with Chinese regulations, whose exports account
from more than 70% of the total output value in the year, may pay the enterprise income tax at half the going rate.

Technically advanced enterprises after the period of exemption of enterprise income tax in accordance with Chinese regulations may
enjoy reduction of half of their enterprise income tax in the ensuing three years.

   Article 15. Foreign-funded enterprises which invest in agriculture, forestry and animal husbandry or in less-developed outlying districts, after
the period of exemption of enterprise income tax in accordance with Chinese regulations, upon approval by national taxation departments,
may continue to enjoy a 15%-30% tax reduction for another ten years.

   Article 16. Foreign investors reinvest their profits made from the venture involving their investment to directly boost its registered capital
or start other enterprises for an operational term of no less than five years, upon application by the investors and approval by
the taxation departments, shall be returned 40% of the income tax payment on the amount reinvested. Those who reinvest in export-oriented
or technically advanced enterprises for an operational period of five years or more, upon application by the investors and approval
by taxation departments, shall be returned all income tax payment on the amount reinvested. Those who withdraw before the five years
term shall hand in the returned income tax.

   Article 17. Vehicles needed to be imported by foreign investors into the province for operations of processing with customer’s raw materials
are exempted from import licences; machinery for compensatory trade is exempted from import tax.

   Article 18. Export-oriented and technically advanced foreign-funded enterprises are exempted from land utility fees for five to ten years as
of the date of establishment and are charged at half the rates after the period of exemption.

Foreign-funded enterprises engaged in agriculture and animal husbandry are exempted from land utility fees for ten to fifteen years
as of the date of approval on use of the land; enterprises in forestry, for twenty to thirty years.

   Article 19. Export-oriented and technically advanced foreign-funded enterprises, except for paying labor insurance premiums, welfare expenses
and subsidiary housing fund for Chinese workers, are exempted from payment of other State subsidies for Chinese workers.

   Article 20. Foreign-funded enterprises which need to transfer forex into or out of the enterprises may do so through the provincial forex swapping
center. The forex transferred into the enterprises may be used to repay capital with interest, buy equipment and raw materials, remit
profits out of the country and pay the legitimate income of foreign staff.

Forex may be swapped among foreign-funded enterprises or between foreign-funded and Chinese enterprises under the supervision of forex
control departments.

   Article 21. Products of foreign-funded enterprises as imports-substitutes to be sold in China may be paid in forex upon approval.

Sino-foreign joint-equity and Sino-foreign cooperative productive enterprises, upon approval, may purchase Chinese products for export
to balance their forex earnings and expenditures in the year in accordance with Chinese regulations.

   Article 22. Foreign-funded enterprises have the right to work out their production and operational plans, collect and use funds, buy capital
goods and market their products within approval contracts.

Foreign-funded enterprises may, in accordance with the need of production and operations as well as with regulations of the State
and the provincial people’s government, independently determine the structure of offices and management, employment and dismissal
of staff, commendation and punishment, standards and forms of wages, bonuses and subsidies.

   Article 23. Boards of directors or joint administrative organizations of foreign-funded enterprises exercise their authority in accordance with
law. Chinese staff on the boards of directors or joint administrative organizations of Sino-foreign joint ventures or foreign-funded
cooperative enterprises shall not be changed at will in their terms of office.

   Article 24. Foreign-funded enterprises have the right to own, use, benefit from and dispose of the property of the enterprises in question in
accordance with law.

   Article 25. Foreign investors may remit overseas the profits and other legal income from their investment in the province in accordance with
law.

   Article 26. No organization shall be allowed to apportion expenses among foreign-funded enterprises or collect fees from them apart from taxes
and charges sanctioned by laws and regulations. Foreign-funded enterprises may refuse to pay charges outside of laws and regulations.

   Article 27. Those (excluding government staff who engage in attracting foreign funds) who introduce foreign investors to the province with success
will be awarded a bonus proportionate to the amount of foreign investment. Detailed rules are to be formulated by the provincial
people’s government.

   Article 28. Foreign investors or foreign-funded enterprises have the right to appeal to people’s governments and relevant departments against
acts that encroach on their legal rights and interests or take legal proceedings to people’s courts against such acts.

   Article 29. For investments in the province by compatriots from Hong Kong, Macao and Taiwan and overseas Chinese, these regulations serve as
a reference, in addition to “Regulations on Encouraging Investment by Overseas Chinese and Hong Kong and Macao Compatriots” and “Regulations
on Encouraging Investment by Taiwan Compatriots” promulgated by the State Council.

   Article 30. These regulations shall come into effect as of the date of promulgation.

These regulations shall apply where previous regulations of the province are not in accord with these regulations.

    





DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS AND TO THE LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

Law of the PRC on Deputies to the National People’s Congress and to the Local People’s Congresses at Various Levels

    

(Adopted at the Fifth Session of the Seventh National People’s Congress on April 3, 1992, promulgated by Order No. 56 of the President
of the People’s Republic of China on April 3, 1992, and effective as of the same date)

CHAPTER I GENERAL PROVISIONS

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS
A DEPUTY AND DISQUALIFICATION OF A DEPUTY

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 1 This Law is formulated in accordance with the Constitution to ensure that deputies to the National People’s Congress and deputies
to the local people’s congresses at various levels exercise their functions and powers, fulfill their duties and play their
roles, according to law and in their capacity as deputies.

   Article 2 Deputies to the National People’s Congress and to the local people’s congresses at various levels shall be elected according
to law.

Deputies to the National People’s Congress are component members of the highest organ of State power, and deputies to the
local people’s congresses at various levels are component members of the organs of State power at the corresponding levels.

Deputies to the National People’s Congress and to the local people’s congresses at various levels shall, representing the interests
and will of the people, participate in the exercise of State power in accordance with the functions and powers vested in the
people’s congresses at the corresponding levels by the Constitution and relevant laws.

   Article 3 Deputies must play an exemplary role in abiding by the Constitution and the law and keeping State secrets and,
in the production, work or public activities that they take part in, assist the enforcement of the Constitution and the law.

   Article 4 Deputies shall maintain close contacts with the voters of the electoral districts or the electoral units that elected them and
with the masses of the people, listen to and convey their opinions and demands, and strive to serve the people.

   Article 5 Deputies shall be subject to the supervision of the voters of the electoral districts or the electoral units that elected them.
The voters or the electoral units have the right to recall according to law the deputies they elected. The deputies to be recalled
have the right to attend the meetings for recalling them to state their opinions or present a written statement of their
opinions.

   Article 6 Deputies’ work carried out according to the provisions of this Law, when the people’s congresses at the corresponding levels
are in session, and their activities conducted according to the provisions of this Law, when the people’s congresses at
the corresponding levels are not in session, shall all constitute the performance of their functions as deputies.

The State and society shall provide guarantees for deputies in their performance of functions as deputies.

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

   Article 7 Deputies shall attend sessions of the people’s congress at the corresponding level and exercise the functions and powers as
deputies according to law.

   Article 8 Deputies shall attend plenary meetings of a session, general meetings and group meetings of the delegation, deliberate on the
bills or proposals and reports that have been placed on the agenda of a session.

Deputies may attend, upon recommendation or invitation, and as nonvoting participants, meetings of the Presidium or meetings
of the special committees and advance their opinions.

   Article 9 Deputies have the right, in accordance with procedures prescribed by law, to submit to the people’s congress at
the corresponding level bills and proposals within the scope of its functions and powers. Bills and proposals submitted
shall consist of subjects, grounds and schemes.

Deliberations on a bill or proposal already placed on the agenda of a session shall be terminated upon approval by the Presidium
of a request made by the sponsor deputy for its withdrawal before it is put to vote at the session.

   Article 10 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by the Constitution, to
submit to the National People’s Congress bills on the amendment to the Constitution.

   Article 11 Deputies shall participate in the elections conducted by the people’s congress at the corresponding level.

Deputies to the National People’s Congress have the right to advance opinions on candidates nominated by the Presidium for
the component members of the Standing Committee of the National People’s Congress, President and Vice-President of the
People’s Republic of China, Chairman of the Central Military Commission, President of the Supreme People’s Court and Procurator-General
of the Supreme People’s Procuratorate and candidates for the various special committees of the National People’s Congress.

Deputies to the local people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to nominate candidates for the component members of the standing committees of the people’s congresses, leading members
of the people’s governments, presidents of the people’s courts and procurators-general of the people’s procuratorates
at the corresponding levels, as well as candidates for the deputies to the people’s congresses at the next higher
levels, and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to nominate candidates for the leading members of the people’s governments at the corresponding levels,
and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses at various levels have the right to advance opinions on the candidates for the presidiums
of the people’s congresses at the corresponding levels.

With respect to a candidate that has been determined, deputies may vote for or against, or vote another person instead, or abstain
from voting.

   Article 12 Deputies to the National People’s Congress shall participate in deciding on the choice of the component members of the State Council,
and Vice-Chairmen and members of the Central Military Commission.

Deputies to the National People’s Congress and to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures and cities divided into districts shall participate in
the vote for determining the component members of various special committees of the people’s congresses at the
corresponding levels.

   Article 13 During deliberations on a bill or proposal, or a report, deputies may make inquiries to the relevant State organ at
the corresponding level, and such organ shall send its leading cadre or a person in charge to answer the inquiries.

   Article 14 During a session of the National People’s Congress, a delegation or a group of thirty or more deputies have the right to
make a proposal in writing for addressing inquiries to the State Council, ministries and commissions under the State Council,
the Supreme People’s Court and the Supreme People’s Procuratorate.

Deputies to the people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to make proposals for addressing inquiries to the people’s governments and governmental departments, the people’s
courts and the people’s procuratorates at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to make proposals for addressing inquiries to the people’s governments at the corresponding levels.

In a proposal for addressing inquiries, the person to be inquired and the subject and content to be inquired about shall be clearly
stated.

A proposal for addressing inquiries shall, according to a decision of the Presidium, be replied by the State organ inquiried.
If half or more of the deputies who made the proposal for addressing inquiries are not satisfied with the reply, they may
demand another reply from the organ in question.

   Article 15 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by law, to make a proposal
for the removal from office of a member of the Standing Committee of the National People’s Congress, the President or
Vice-President of the People’s Republic of China, a component member of the State Council, a component member of the Central
Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate.

Deputies to a local people’s congress at or above the county level have the right, in accordance with the procedures prescribed
by law, to make a proposal for the removal from office of a component member of the standing committee of the people’s
congress, a component member of the people’s government, the president of the people’s court or the procurator-general
of the people’s procuratorate at the corresponding level.

Deputies to the people’s congress of a township, nationality township or town have the right, in accordance with the procedures
prescribed by law, to submit a proposal for the removal from office of a leading member of the people’s government at
the corresponding level.

In a proposal for removal from office, the reasons for the removal shall be clearly stated.

   Article 16 Deputies to a people’s congress at or above the county level have the right to put forward, according to law, a proposal for
setting up a committee for the investigation of a specific question.

   Article 17 Deputies may, in a vote conducted by the people’s congress at the corresponding level, cast an affirmative vote or a negative vote
or abstain from voting.

   Article 18 Deputies have the right to put forward proposals, criticisms or opinions to the people’s congress at the corresponding
level concerning any sphere of work. The State organs or institutions concerned must make study and disposition thereof
and be responsible for giving a reply.

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

   Article 19 The standing committee of a people’s congress at or above the county level shall organize deputies to the people’s congress
at the corresponding level to carry out activities when the people’s congress at the corresponding level is not in session.

The standing committee of a local people’s congress at or above the county level shall, upon the commission of the standing
committee of the people’s congress at the next higher level, organize the deputies to the people’s congress at the next higher
level who are elected by the people’s congress at the corresponding level to carry out activities when the people’s congress
at the next higher level is not in session.

   Article 20 Deputies to the people’s congresses at or above the county level may, with the assistance of the standing committees of
the people’s congresses at the corresponding levels or lower levels, form themselves into deputy groups in the light
of the principle of facilitating the organization and conduct of their activities.

Deputies to the people’s congresses at or above the county level may take part in the group activities of deputies to the people’s
congresses at lower levels.

   Article 21 Deputies to the people’s congresses at or above the county level may, in line with the unified arrangements made by the standing
committees of the people’s congresses at the corresponding levels, carry out inspections on the work of the State organs and
relevant units at the corresponding levels or lower levels.

Deputies may, during inspections conducted in accordance with the provisions of the preceding paragraph, suggest an interview
with the responsible personnel of the relevant State organs at the corresponding or lower levels. The responsible personnel
to be interviewed of the State organs concerned or the persons in charge entrusted by them shall listen to the proposals,
criticisms or opinions of the deputies.

Deputies may conduct on-the-spot inspections in their respective localities on the strength of their deputy cards.
The standing committees of the local people’s congresses at or above the county level shall, upon requests by deputies, make
arrangements for deputies to the people’s congresses at the corresponding or higher levels to conduct on- the-spot inspections
in their respective localities on the strength of their deputy cards.

Deputies may, during their inspections, put forward proposals, criticisms or opinions to the units inspected, but shall
not deal with the problems directly.

   Article 22 Deputies have the right, in accordance with the procedures prescribed by law, to propose the convening of an interim session
of the people’s congress at the corresponding level.

   Article 23 Deputies to the people’s congresses at or above the county level may attend, upon invitation, and as nonvoting participants,
meetings of the standing committees of the people’s congresses at the corresponding levels. Deputies to the National People’s
Congress and those to the people’s congresses of provinces, autonomous regions, municipalities directly under the
Central Government, autonomous prefectures or cities divided into districts may attend, upon invitation and as nonvoting
participants, meetings of the special committees of the people’s congresses at the corresponding levels.

   Article 24 Deputies to the National People’s Congress and those to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures or cities divided into districts may attend, as nonvoting participants,
meetings of the people’s congresses of the electoral units that elected them, and may also attend, upon invitation and as nonvoting
participants, meetings of the standing committees of the people’s congresses of the electoral units that elected them.

   Article 25 Deputies shall, through various ways, constantly listen to the opinions of the masses of the people, answer inquiries of voters
of the electoral district or of the electoral unit that elected them about their work and activities as deputies and assist
the people’s government at the corresponding level in its work.

   Article 26 Deputies to the people’s congresses at or above the county level shall, according to decisions of the people’s congresses at
the corresponding levels or of their standing committees, join the committees for the investigation of specific questions.

   Article 27 Deputies to a people’s congress at or above the county level have the right to put forward proposals, criticisms or opinions
concerning any sphere of work to the standing committee of the people’s congress at the corresponding level. State organs
or institutions concerned must make study and disposition thereof and be responsible for giving a reply.

   Article 28 Deputies to the people’s congress of a township, nationality township or town shall have division of labour in their contacts
with the voters, form themselves into deputy groups according to law, reflect the opinions and demands of the masses and
assist the work of the people’s government at the corresponding level.

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES

   Article 29 Deputies shall hold no legal liability for their speeches or votes at various meetings of the people’s congresses.

   Article 30 No deputy to a people’s congress at or above the county level may be arrested or placed on criminal trial without the consent
of the Presidium of the people’s congress at the corresponding level, or without the consent of its standing committee
when the people’s congress is not in session. If a deputy is caught in the act and detained, the organ executing the detention
shall immediately report the matter to the Presidium or the standing committee of the people’s congress at the corresponding
level.

If any other restriction of personal freedom prescribed by law is imposed on a deputy to a people’s congress at or above
the county level, it shall be subject to the approval of the Presidium or the standing committee of the people’s congress
at the corresponding level.

If a deputy to the people’s congress of a township, nationality township or town is arrested or placed on criminal trial, or subjected
to any other restrictions of personal freedom prescribed by law, the executing organ shall immediately report the matter
to the people’s congress of the township, nationality township or town.

   Article 31 Where a deputy participates in activities as deputy arranged by the people’s congress at the corresponding level or its standing
committee when the people’s congress is not in session, The unit to which the deputy belongs must ensure him the needed
time.

   Article 32 The performance by a deputy of his or her functions as deputy in accordance with the provisions of Article 31 of this Law shall
be regarded as normal attendance by his or her unit and the wage and other benefits of the unit shall be duly enjoyed by the
deputy.

Deputies with no fixed income of wages or salaries shall, for the performance of their functions as deputies, be appropriately
subsidized by the governmental finance at the corresponding level in light of the specific circumstances.

   Article 33 Funds for deputy activities shall be included in the financial budget of the governments at the corresponding levels.

   Article 34 The standing committees of the people’s congresses at or above the county level shall, through various ways, maintain contacts
with deputies to the people’s congresses at the corresponding levels.

   Article 35 The standing committees of the local people’s congresses at or above the county level shall provide necessary conditions
for deputies within their respective administrative areas to perform their functions as deputies.

   Article 36 The offices of the standing committees of the people’s congresses at or above the county level shall provide services
for deputies in their performance of functions as deputies.

   Article 37 For the convenience of deputies’ performance of their functions as deputies, the people’s congresses at various levels
may make and issue deputy cards to deputies to the people’s congresses at the corresponding levels.

   Article 38 When deputies of minority nationalities perform their functions as deputies, the departments concerned shall provide them
with necessary help and give special considerations in such aspects as languages, both spoken and written, habits and
customs.

   Article 39 All organizations and individuals must respect the rights of deputies and support them in their performance of functions as deputies.

Whoever has the duty to assist deputies in their performance of functions as deputies but refuses to do so shall
be admonished, criticized, even subjected to administrative sanctions by the unit concerned.

Whoever obstructs deputies from performing their functions as deputies according to law shall be subjected to administrative
sanctions by the unit to which he or she belongs or by the department at the higher level, or shall be punished in accordance
with the provisions of Article 19 of the Regulations on Administrative Penalties for Public Security. Whoever obstructs,
by means of violence or threat, deputies from performing their functions as deputies according to law shall be
investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law.

CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS A DEPUTY AND

   Article 40 Where a deputy is involved in either of the following circumstances, the performance of his or her functions as deputy
shall be temporarily suspended:

(1) being held in custody and subjected to investigation, prosecution and trial for criminal cases; or

(2) being sentenced to public surveillance, criminal detention or fixed- term imprisonment without the supplementary punishment of
deprivation of political rights and now serving the sentence.

As soon as the circumstances specified in the preceding paragraph no longer exist during the term of the deputy in question,
the performance of his or her functions as deputy shall be restored, except for the one who is disqualified as deputy.

   Article 41 A deputy involved in any of the following circumstances shall be disqualified as a deputy:

(1) a deputy to a local people’s congress at any level who has moved or is transferred away from the corresponding administrative
area;

(2) his or her resignation as a deputy being accepted;

(3) being absent, without approval, from two sessions of the people’s congress at the corresponding level;

(4) being recalled;

(5) having forfeited the nationality of the People’s Republic of China;

(6) being deprived of political rights in accordance with the law.

   Article 42 The disqualification of a deputy to a people’s congress at or above the county level shall be reported by the credential committee
to the standing committee of the people’s congress at the corresponding level for its announcement.

The disqualification of a deputy to the people’s congress of a township, nationality township or town shall be reported by
the credential committee to the people’s congress at the corresponding level for its announcement.

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 43 The people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government and their standing
committees may, in accordance with this Law and in light of the actual conditions of their respective administrative areas,
formulate measures for implementation.

   Article 44 This Law shall enter into force as of the date of promulgation.

    





DECISION OF THE STANDING COMMITTEE OF NPC ON AUTHORIZING THE PEOPLE’S CONGRESS OF SHENZHEN CITY AND ITS STANDING COMMITTEE AND THE PEOPLE’S GOVERNMENT OF SHENZHEN CITY TO FORMULATE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION IN SHENZHEN

Decision of the Standing Committee of NPC on Authorizing the People’s Congress of ShenZhen City and Its Standing Committee and the
People’s Government of ShenZhen City to Formulate Regulations and Rules Respectively for Implementation in ShenZhen

     DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE PEOPLE’S CONGRESS OF SHENZHEN CITY AND ITS
STANDING COMMITTEE AND THE PEOPLE’S GOVERNMENT OF SHENZHEN CITY TO FORMULATE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION
IN THE SHENZHEN SPECIAL ECONOMIC ZONE

(Adopted on July 1, 1992)

In accordance with the Decision of the Second Session of the Seventh National People’s Congress Regarding the Proposal
Submitted for Deliberation by the State Council on Authorizing Shenzhen City to Formulate Regulations and Rules for
the Shenzhen Special Economic Zone, the 26th Meeting of the Standing Committee of the Seventh National People’s Congress,
having considered the proposal submitted by the State Council for authorizing the People’s Congress of Shenzhen City and its
Standing Committee and the People’s Government of Shenzhen City to formulate respectively regulations and rules for the
Shenzhen Special Economic Zone, decides that the People’s Congress of Shenzhen City and its Standing Committee are authorized
to formulate, in light of the specific conditions and actual needs and pursuant to the provisions of the Constitution
and the basic principles laid down in laws and administrative regulations and rules, regulations to be implemented in
the Shenzhen Special Economic Zone which shall be submitted to the Standing Committee of the National People’s Congress,
the State Council and the Standing Committee of the People’s Congress of Guangdong Province for the record, and that
the People’s Government of Shenzhen City is authorized to formulate rules and is responsible for their implementation in
the Shenzhen Special Economic zone.

    

MOFTEC P.R.C.

EDITOR:Victor





CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF SHAOGUAN AND OTHER CITIES

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-08-29 Effective Date  1992-08-29  


Circular of the State Council Regarding the Further Opening of Shaoguan and Other Cities

(August 29, 1992)

    The People’s Government of Guangdong Province:

    The State Council has resolved to include three cities–Shaoguan, Heyuan,
and Meizhou into the list of coastal economic open zones and implement the
same policies as the state has done in other costal economic open zones.





REPLY TO THE LETTER ON THE ISSUE ARISING FROM SHEN CANXIONG V. KUNMING PHOSPHATE FACTORY CONTRACT DISPUTE CONCERNING THE ORIGINAL CONTRACT SHALL BE DEEMED DISSOLVED AFTER ESTABLISHMENT OF THE EQUITY JOINT VENTURE KUNMING YUNTONG PHOSPHATE FACTORY

the Economic Tribunal of the Supreme People’s Court

Reply to the Letter on the Issue Arising from Shen Canxiong v. Kunming Phosphate Factory Contract Dispute Concerning the Original
Contract Shall be Deemed Dissolved after Establishment of the Equity Joint Venture Kunming Yuntong Phosphate Factory

Fa Jing [1992] No. 210

To the Higher People’s Court of Yunnan Province:

The Request from Your Court on the Issue Arising from the Shen Canxiong vs. Kunming Phosphate Factory Dispute Case on the Contract
Concerning the Original Contract Shall be Deemed to be Dissolved in Fact after the Establishment of the Equity Joint Venture Kunming
Yuntong Phosphate Factory (Yun Gao Fa [1992] No. 59), has been received. After deliberation, the reply is hereby given as follows:

In accordance with the Provisions on the Township Enterprises Contracted Operation Responsibility System, the enterprise under the
contract operation responsibility system remains its nature of collective ownership by the socialist working people. The whole property
(including the newly accumulated property after the enterprise being contracted) of the enterprise is still collectively owned by
the whole working people who establish the enterprise concerned. Therefore, the contractor, within the contracting period, shall
not establish an equity joint venture with foreign businessmen by means of investing total property of the enterprise of Chinese
part, nor can it obtain the status of a shareholder. We agree on your court’s opinion, namely, it can be confirmed that, after the
establishment of the equity joint venture, the contract between Shen Canxiong and Kunming Yuntong Phosphate Factory is deemed to
have been dissolved in fact. But the other rights and obligations in the course of the contract shall be dealt with appropriately
in the way of seeking truth from facts, so as to fairly protect the lawful rights and interests of employer and the contractor.

Economic Tribunal of the Supreme People’s Court

December 17, 1992



 
the Economic Tribunal of the Supreme People’s Court
1992-12-17

 






REGULATIONS ON THE ADMINISTRATION OF SAVINGS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-12-11 Effective Date  1993-03-01  


Regulations on the Administration of Savings

Chapter I  General Provisions
Chapter II  Savings Institutions
Chapter III  Savings Services
Chapter IV  Rates and Calculation of Interests on Saving Deposits
Chapter V  Withdrawing Ahead of Time, Registration of Loss, Inquiry and
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

(Adopted at the 97th Executive Meeting of the State Council, promulgated

by Decree No. 107 of the State Council of the People’s Republic of China on
December 11, 1992, and effective as of March 1, 1993)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purposes of developing
savings, protecting the legitimate rights and interests of depositors, and
strengthening the administration of savings.

    Article 2  Any savings institution handling savings as a business and any
individual participating in savings within the territory of China must observe
the provisions of these Regulations.

    Article 3  “Savings” mentioned in these Regulations refer to those
activities in which an individual deposits his own RMB or foreign currency in
a savings institution while the savings institution issues a bankbook or
deposit certificate in return; and when the individual withdraws the principal
and interest on his deposits against his bankbook or deposit certificate, the
savings institution will pay him the principal and interest according to
provisions.

    No unit or individual may convert public funds into savings deposited on
an individual’s behalf.

    Article 4  “Savings institution” mentioned in these Regulations refers to
those institutions under banks or credit cooperatives which handle savings
services with the approval of the People’s Bank of China or one of its
branches, and those under postal enterprises which handle savings services
statutorily.

    Article 5  The State protects the ownership, other legitimate rights and
interests over legal savings deposits of individuals and encourages
individuals’ participation in savings.

    In handling savings businesses, savings institutions shall observe the
principles of voluntariness in depositing, freedom of withdrawal, interest on
every deposit and keeping secret for depositors.

    Article 6  The People’s Bank of China shall be responsible for the
administration of savings throughout the country.

    The People’s Bank of China and its branches shall be responsible for the
approval of savings institutions and savings services, for the coordination of
various savings institutions in their savings businesses and for the mediation
of their disputes, for the supervision and auditing of savings services, and
for correction and punishment of violations of the State laws, regulations and
policies governing savings.

    Article 7  The People’s Bank of China may, with the approval of the State
Council, take proper actions in the interest of depositors for the stability
of savings.

    Article 8  With the exception of savings institutions, no other unit or
individual may handle savings services.
Chapter II  Savings Institutions

    Article 9  To establish a savings institution, the principles of unified
planning, convenience for the masses, focusing on efficiency and ensuring
security shall be abided by.

    Article 10  To establish a savings institution, a report shall be
submitted to the People’s Bank of China or one of its branches for approval
according to the relevant State provisions, and a Permit for Financial
Business be applied for, unless otherwise provided for by the State laws and
administrative regulations.

    Article 11  To establish a savings institution, the following requirements
must be met:

    (1) having its own name, organizational structure and place of business;

    (2) having no less than four workers qualified for savings services; and

    (3) having necessary security and protective equipment.

    Article 12  A savings institution may establish its agency with the
approval of the local branch of the People’s Bank of China. Measures for the
administration of savings agencies shall be formulated by the People’s Bank of
China.

    Article 13  A savings institution shall conduct its business during its
fixed business hours and shall not suspend business or shorten its business
hours at will.

    Article 14  Savings institutions shall ensure the payment of the principal
and interest on savings deposits and shall not illegally refuse payment.

    Article 15  Savings institutions shall not resort to unfair means to
absorb savings deposits.
Chapter III  Savings Services

    Article 16  A savings institution may handle the following RMB savings
services:

    (1) current deposits;

    (2) time deposits by which a fixed sum may be put in and withdrawn when it
becomes due;

    (3) time deposits by which odd money may be put in as savings and a round
sum made up and withdrawn when it becomes due;

    (4) time deposits by which the interest may be withdrawn and the principal
remaining till it becomes due;

    (5) time deposits by which a round sum may be put in and petty cash be
withdrawn within a fixed time period;

    (6) deposits with a current or fixed account at the depositor’s
convenience;

    (7) time deposits for a fixed sum of overseas Chinese RMB; and

    (8) savings deposits of other kinds approved by the People’s Bank of China.

    Article 17  With the approval of foreign exchange control departments, a
savings institution may handle the following foreign currency savings services:

    (1) current deposits;

    (2) time deposits by which a fixed sum may be put in and withdrawn when it
becomes due; and

    (3) foreign currency savings deposits of other kinds approved by the
People’s Bank of China.

    The principle and interest on foreign currency savings deposits shall be
paid in foreign currency.

    Article 18  In handling a time deposit service, a savings institution may,
at the request of the depositor, handle the automatic renewing of the time
deposit account when it becomes due.

    Article 19  Based on the State policies regarding housing reform and
actual needs and with the approval of the local branch of the People’s Bank of
China, a savings institution may handle personal housing savings services.

    Article 20  With the approval of the People’s Bank of China or one of its
branches, a savings institution may handle the following financial services:

    (1) distributing and cashing securities offered to individual residents
such as State treasury bonds, financial bonds and enterprise bonds;

    (2) extending small secured loans on personal time deposit certificates;
and

    (3) other financial services.

    Article 21  A savings institution may act as an agent issuing wages,
collecting house rents, water and electricity charges, and providing other
services.
Chapter IV  Rates and Calculation of Interests on Saving Deposits

    Article 22  Rates of interests on savings deposits shall be proposed by
the People’s Bank of China and published with the approval of the State
Council, or shall be fixed and published by the People’s Bank of China with
the authorization of the State Council.

    Article 23  Savings institutions shall openly list interest rates of
savings deposits and shall not change them without approval.

    Article 24  For an undue time deposit the whole of which is to be
withdrawn ahead of time, the interest shall be calculated at the rate
of current deposits listed openly on the date of withdrawal. If only part of
an undue deposit is to be withdrawn ahead of time, the interest on this part
withdrawn ahead of time shall be calculated at the rate of current deposits
listed openly on the date of withdrawal, and the interest on the remaining
shall, when it becomes due, be calculated at the rate of time deposits listed
openly on the date of the opening of the account.

    Article 25  For an overdue time deposit, the interest during the
overdue period shall be calculated at the rate of current deposits listed
openly on the date of withdrawal unless a renewal of the time deposit has been
handled as agreed upon between parties.

    Article 26  For a time deposit of which the interest rate has changed
before it becomes due, the interest shall be calculated at the rate of
the time deposit listed openly on the date of the opening of the account.

    Article 27  For a current deposit of which the interest rate has changed
during the period in which it was deposited, the interest shall be calculated
at the rate of current deposits listed openly on the date of the settlement of
the interest. If the whole of a current deposit is to be withdrawn, the
interest shall be calculated at the rate of current deposits listed openly on
the date of the closing of the account.

    Article 28  Any depositor who thinks the payment of the interest on his
savings deposits is in error shall be enpost_titled to apply for a review by the
savings institution concerned, which shall accept the application and review
the calculation of the interest in time.
Chapter V  Withdrawing Ahead of Time, Registration of Loss, Inquiry and
Transfer of Ownership

    Article 29  A depositor must hold his deposit certificate and his own
identity certificate when withdrawing ahead of time his undue time deposits.
If another person acts as an agent withdrawing the deposits for the depositor,
the person must hold his own identity certificate.

    Article 30  Bankbooks or deposit certificates shall be in the form of
nominated or unnominated certificates. The loss of nominated certificates may
be registered and the loss of unnominated ones may not be registered.

    Article 31  A depositor must without delay apply to the savings
institution with which he opened his account to register the loss of his
deposit certificate, bankbook or his seal having its impression on record by
holding his own identity certificate and providing the relevant data such as
the depositor’s name and address, date of the opening of the account, category
and amount of the deposits, and account number. If special circumstances
exist, a depositor may register the loss orally or by letter or by telegram
provided that he complete the formality of registering the loss in writing
within five days.

    The savings institution must suspend payment on the savings deposits
concerned upon acceptance of the application for registration. If the savings
deposits has been withdrawn by another person before the acceptance of the
application, the savings institution shall be exempted from the liability for
compensation.

    Article 32  Savings institutions and their personnel shall have an
obligation to keep secret the depositors’ savings and relevant information.

    Savings institutions shall not inquire into, freeze or allocate savings
deposits on behalf of any unit or individual, unless otherwise provided for by
laws and administrative regulations of the State.

    Article 33  If a dispute arising from a savings deposit results in the
transfer of ownership, the savings institution shall handle the formality of
the transfer according to the legally effective written judgments or orders or
conciliation statements made by the people’s court.
Chapter VI  Legal Liability

    Article 34  If any unit or individual commits any of the following actions
in violation of the provisions of these Regulations, the People’s Bank of
China or one of its branches shall order it or him to make corrections, and
may impose a fine, or order it or him to suspend business operations for
rectification, or revoke the Permit for Financial Business according to the
seriousness of the circumstances. If the circumstances are serious enough to
constitute a crime, the offender shall be investigated for criminal liability.

    (1) handling savings services without approval;

    (2) establishing a savings institution without approval;

    (3) handling a new savings service by a savings institution without
approval;

    (4) handling financial businesses not described in these Regulations by a
savings institution without approval;

    (5) suspending business or shorten business hours without approval;

    (6) absorbing savings deposits by unfair means by a savings institution;

    (7) changing interest rates of savings deposits in violation of the State
provisions governing interest rates;

    (8) disclosing information concerning a depositor’s savings, or inquiring
into, freezing or allocating savings deposits on others’ behalf without
completing legal procedures; or

    (9) committing other actions violating the State laws, administrative
regulations or policies governing savings.

    Any violator of the provisions of the second paragraph of Article 3 in
these Regulations shall be punished according to the relevant State provisions.

    Article 35  Any party who refuses to accept a decision of punishment may
apply for reconsideration according to the provisions of the Administrative
Reconsideration Regulations. If he refuses to accept the reconsideration
decision, he may bring a lawsuit before a people’s court according to the
Administrative Procedure Law of the People’s Republic of China.

    Article 36  In a case where an applicant for reconsideration neither
brings a lawsuit nor performs the decision of reconsideration within a time
limit, the provisions of the Administrative Reconsideration Regulations shall
apply.

    Article 37  A savings institution that, in violation of the relevant State
provisions, infringes upon the legitimate rights and interests of depositors
and thereby causes losses to them shall be bear liability for compensation
according to law.
Chapter VII  Supplementary Provisions

    Article 38  For those time deposits with their accounts opened prior to
the implementation of these Regulations, the interest during the period in
which savings are deposited shall be calculated according to the previous
relevant provisions of the State.

    Article 39  The People’s Bank of China shall be responsible for the
interpretation of these Regulations and for the formulation of the
implementation rules.

    Article 40  These Regulations shall come into effect on March 1, 1993. The
Rules of the People’s Bank of China for Savings Deposits, promulgated by the
People’s Bank of China on May 28, 1980, shall be invalidated on the same date.





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE PEOPLE’S CONGRESS OF SHENZHEN CITY AND ITS STANDING COMMITTEE AND THE PEOPLE’S GOVERNMENT OF SHENZHEN CITY TO FORMULATE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION IN THE SHENZHEN SPECIAL ECONOMIC ZONE

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1992-07-01 Effective Date  1992-07-01  


Decision of the Standing Committee of the National People’s Congress on Authorizing the People’s Congress of Shenzhen City and Its
Standing Committee and the People’s Government of Shenzhen City to Formulate Regulations and Rules Respectively for Implementation
in the Shenzhen Special Economic Zone

(Adopted on July 1, 1992)

    In accordance with the Decision of the Second Session of the Seventh
National People’s Congress Regarding the Proposal Submitted for Deliberation
by the State Council on Authorizing Shenzhen City to Formulate Regulations
and Rules for the Shenzhen Special Economic Zone, the 26th Meeting of the
Standing Committee of the Seventh National People’s Congress, having
considered the proposal submitted by the State Council for authorizing the
People’s Congress of Shenzhen City and its Standing Committee and the People’s
Government of Shenzhen City to formulate respectively regulations and rules
for the Shenzhen Special Economic Zone, decides that the People’s Congress of
Shenzhen City and its Standing Committee are authorized to formulate, in light
of the specific conditions and actual needs and pursuant to the provisions of
the Constitution and the basic principles laid down in laws and administrative
regulations and rules, regulations to be implemented in the Shenzhen Special
Economic Zone which shall be submitted to the Standing Committee of the
National People’s Congress, the State Council and the Standing Committee of
the People’s Congress of Guangdong Province for the record, and that the
People’s Government of Shenzhen City is authorized to formulate rules and is
responsible for their implementation in the Shenzhen Special Economic Zone.





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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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