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1998

MEASURES FOR THE ADMINISTRATION OF THE STATE COUNCIL ON PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

The State Council

Measures for the Administration of the State Council on Participation of Foreign Firms in the Salvage of Sunken Ships and Objects
in the Chinese Coastal Waters

Decree [1992] No.102 of the State Council

July 12, 1992

Article 1

These Measures are formulated in order to strengthen the control of the participation of foreign firms in the activities salvaging
sunken ships and objects in the Chinese coastal waters and to ensure the lawful rights and interests of the parties concerned.

Article 2

These Measures shall apply to the participation of foreign firms in the activities salvaging sunken ships and objects with commercial
value in the Chinese coastal waters.

These Measures shall not apply to the cases where the owners of the sunken ships and objects engage in the salvage themselves or invite
salvage agencies to undertake the salvage in the Chinese coastal waters.

Article 3

For the purpose of these Measures, the following terms shall have the meanings respectively defined hereunder:

(1)

“Foreign firm” means enterprises or other economic organizations or individuals of foreign countries.

(2)

“Coastal waters” means the internal seas and territorial seas of the People’s Republic of China as well as all the other sea areas
under its jurisdiction.

(3)

“Sunken ships and objects” means all kinds of vessels and objects which have sunken under the surface of water or have been buried
beneath the mud surface at seabed in the Chinese coastal waters, which include the main bodies of the sunken ships or objects and
their equipments, and all of the cargoes or other sundries loaded thereon.

Sunken warships and weaponry with important military value and sunken ships and objects confirmed as cultural relics are not covered
in the scope of salvage by the participation of foreign firms.

(4)

“Salvage operation” means all kinds of operational activities for salvaging sunken ships and objects according to a joint salvage
contract or a contract for a Chinese-foreign salvage cooperative enterprise, including the implementation of survey, identification,
salvage and other activities related thereto.

(5)

“Operator of salvage” means any unit or individual that actually operates the salvage.

Article 4

The Chinese Government shall protect, in accordance with the law, the gains and other lawful rights and interests due to the Chinese
and foreign parties who participate in the salvage of sunken ships and objects in the Chinese coastal waters (hereinafter referred
to as “Chinese and foreign parties participating in the salvage”).

All the activities of Chinese and foreign parties participating in the salvage shall comply with the related laws, rules and regulations
of the People’s Republic of China, and be subjected to the control and supervision of the competent authorities of the Chinese Government.

Article 5

The Ministry of Communications of the People’s Republic of China is in charge of the affairs regarding the participation of foreign
firms in the salvage of sunken ships and objects in the Chinese coastal waters.

Article 6

Foreign firms may participate in the salvage of sunken ships and objects in the Chinese coastal waters in either of the following
modes:

(1)

To sign a joint salvage contract with a Chinese operator of salvage and undertake the salvage activities in accordance with the rights
and duties of each party as stipulated in the contract;

(2)

To establish a Chinese-foreign salvage cooperative enterprise with a Chinese operator of salvage and undertake the salvage activities.

Article 7

Any Chinese operator of salvage shall be a professional salvage agency with the qualification of undertaking salvage, and such qualification
shall be examined and approved by the Ministry of Communications of the People’s Republic of China pursuant to the state-formulated
requirements of the professional salvage agency.

Article 8

Definite salvage targets must be expressly fixed in either a joint salvage contract or a contract for a Chinese-foreign salvage cooperative
enterprise. Any sunken ships or objects other than those fixed in the contracts found during the salvage operation may not be salvaged
by either Chinese or foreign party participating in the salvage without authorization.

Article 9

The Ministry of Communications of the People’s Republic of China shall be responsible for uniformly organizing negotiations with foreign
firms on affairs concerning the salvage of sunken ships and objects in the Chinese coastal waters, determining salvage projects and
organizing Chinese operators of salvage to sign joint salvage contracts or contracts for Chinese-foreign salvage cooperative enterprises
with foreign firms in accordance with the law.

Article 10

The joint salvage contract signed between a foreign firm and a Chinese operator of salvage shall accord with the related stipulations
of the Law of the People’s Republic of China on Economic Contracts Involving Foreign-related Matters and be subject to the approval
by the Ministry of Communications of the People’s Republic of China.

The Chinese-foreign salvage cooperative enterprise formed by a foreign firm and a Chinese operator of salvage shall go through the
formalities of examination and approval as well as registration in accordance with the stipulations of the Law of the People’s Republic
of China on Chinese-foreign Contractual Joint Ventures.

Article 11

While a joint salvage contract or a contract for a Chinese-foreign salvage cooperative enterprise is submitted to the authorities
for examination and approval, the relevant documents of the implementing salvage plan approved by the harbor superintendency establishments
of the People’s Republic of China (hereinafter referred to as harbor superintendency) shall be presented; where an area of fishing
port is involved, the relevant documents approved by the fishery administrative authorities and fishing harbor superintendency establishments
shall be presented; where a military forbidden area or district is involved, the relevant documents approved by the competent military
authorities shall be presented.

The examination and approval authorities shall, within 45 days after receiving the application for examination and approval of the
above-mentioned contract, decide whether to approve or disapprove.

Article 12

After the approval of the joint salvage contract, the foreign firm shall apply for business registration to the State Administration
for Industry and Commerce of the People’s Republic of China within 30 days after its receipt of the document of approval and obtain
a business license; it shall register with the local tax authorities within 30 days after obtaining the business license.

Article 13

A foreign firm participating in the salvage of sunken ships and objects within the internal seas and territorial seas of the People’s
Republic of China shall bear all the costs and expenses as well as the financial risks during the salvage operation. The Chinese
operator of salvage is responsible for the coordination with the relevant authorities, the fulfillment of the necessary formalities
and the guardianship during the salvage operation.

A foreign firm participating in the salvage of sunken ships and objects beyond the internal seas and territorial seas of the People’s
Republic of China and within other sea areas under its jurisdiction shall bear all the costs and expenses as well as the financial
risks in the phase of survey and identification. The Chinese and foreign parties shall implement the salvage operation according
to the stipulations of the contract where the salvage is necessary.

Article 14

The vessels, equipments and labor services needed by the foreign firm in implementing the joint salvage contract shall first be leased
and employed from the Chinese operator of salvage, if the conditions are the same.

Article 15

The objects recovered from the salvage of sunken ships and objects in the Chinese coastal waters with the participation of a foreign
firm (hereinafter referred to as “recovered objects”) shall be disposed of in the following ways:

(1)

The ownership of the sunken ships and objects recovered within the internal seas and territorial seas of the People’s Republic of
China resides in the People’s Republic of China. The foreign firm shall obtain its gains from the recovered objects or the sum evaluated
in terms of money in accordance with the stipulations of the joint salvage contract or the contract for the Chinese-foreign salvage
cooperative enterprise.

The Chinese operator of salvage shall obtain its gains from the recovered objects or the sum evaluated in terms of money in accordance
with the relative stipulations of the State or those of the contract for the Chinese-foreign salvage cooperative enterprise.

(2)

The sunken ships and objects recovered from beyond the internal seas and territorial seas of the People’s Republic of China but within
other sea areas under its jurisdiction shall be distributed to Chinese and foreign parties participating in the salvage according
to the proportions stipulated in the contract, in form of the recovered objects or the sum evaluated in terms of money.

(3)

Any cultural relics found in the recovered objects or during the salvage operation shall be reported to the local administrative department
for cultural relics without delay. The department for cultural relics shall dispose of them in accordance with the law and regulations
of the People’s Republic of China concerning cultural relics protection and give appropriate rewards to the personnel concerned.

Article 16

The recovered objects obtained by the foreign firms according to law can be purchased by the relevant authorities of Chinese Government
at the price of international market or transported abroad by the foreign firms after being taxed and going through the Customs formalities
pursuant to the Chinese Law. Foreign currency of other gains obtained by the foreign firms can be remitted abroad after being taxed
according to Law.

Article 17

Before the salvage operation, the operators of salvage shall apply for the issuance of a navigation warning in accordance with the
relevant stipulations of the Maritime Traffic Safety Law of the People’s Republic of China.

The Ministry of Communications of the People’s Republic of China shall circulate the related data such as the commencement and termination
time of the salvage operation and its geographical position to the State Bureau of Oceanography and other relevant authorities.

The operators of salvage shall engage in their salvage operation within the operational area approved by the harbor superintendency
and report the progress of the salvage activities according to the requirements of the harbor superintendency. Any methods detrimental
to marine resources, marine environment, underwater facilities, marine military installations and other interests of the People’s
Republic of China may not be used in salvage operation.

Article 18

The relevant personnel from Chinese and foreign parties participating in the salvage shall, from the beginning to the end, take part
in the salvage operation and are jointly responsible for the work of registering and storing the recovered objects.

Article 19

All the recovered objects shall receive the inspection by the relevant authorities at the place assigned by the competent authorities
of the Chinese Government.

Article 20

Anyone who has violated these Measures to salvage sunken ships and objects in the Chinese coastal waters shall be ordered to stop
the salvage operation and be warned or fined by harbor superintendency. The violator who has already caused losses to the State or
other individuals shall bear the liability of compensation.

The amount of fine shall be appraised and decided according to the related penalty provisions of the State marine traffic administration.

Article 21

The participation of any enterprise or individual or other economic organization from Hong Kong, Macao or Taiwan in the salvage of
sunken ships and objects in the Chinese coastal waters shall be handled with reference to these Measures.

Article 22

The Ministry of Communications of the People’s Republic of China shall be responsible for the interpretation of these Measures.

Article 23

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

The State Council
1992-07-12

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE IMPOSITION OF PUNISHMENTS IN RESPECT OF OFFENSES OF TAX EVASION AND REFUSAL TO PAY TAX

The Standing Committee of the National People’s Congress

Order of the President of the People’s Repbulic China

No. 61

“Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Imposition of Punishments in
Respect Of offenses of Tax Evasion and Refusal to Pay Tax” has been adopted at the 27th Meeting of the Standing Committee of the
Seventh National People’s Congress, and hereby promulgated, and will come into force on January 1, 1993.

President of the People’s Republic of China Yang Shangkun

September 4,1992

Supplementary Provisions of the Standing Committee of the National people’s Congress Concerning the Imposition of Punishments in Respect
of offenses of Tax Evasion and Refusal to Pay Tax

With a view to imposing punishments in respect of offenses of tax evasion and refusal to pay tax, the relevant supplementary provisions
to the Criminal Law have been formulated as follows:

“Evasion of tax” means that a taxpayer fails to pay or underpays the amount of tax payable through the adoption of the means of forging,
revising, concealing or destroying accounting books or supporting vouchers for the accounts without authorization, or of overstating
expenses or not stating or understating income in accounting books, or of filing fraudulent tax returns. Where the amount of tax
evaded accounts for more than ten percent of the amount of tax payable and is over Renminbi 10000 Yuan, or where the taxpayer evades
tax again after having been subject to administrative sanctions imposed by the tax authorities twice by reason of tax evasion, the
taxpayer shall be subject to imprisonment or confinement with hard labour for a term of not more than three years as well as a fine
of not more than five times the amount of tax evaded. Where the amount of tax evaded accounts for more than thirty percent of the
amount of tax payable and is over Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment for a term of over three years
but not more than seven years as well as a fine of not more than five times the amount of tax evaded.

Where a withholding agent fails to pay or underpays the tax which has been withheld or collected through the adoption of the means
specified in the preceding Paragraph, and where the amount of tax evaded accounts for more than ten percent of the amount of tax
payable and is over Renminbi 10000 Yuan, a punishment shall be imposed on the withholding agent in accordance with the provisions
stipulated in the preceding Paragraph.

Where the illegal acts specified in the preceding two Paragraphs have been committed several times and no punishment has been imposed,
a punishment shall be imposed based on the accumulated amounts.

Where a taxpayer who has failed to pay the amount of tax payable adopts the means of transferring or concealing the property, resulting
in failure on the part of the tax authorities to pursue the payment of the tax in arrears, and where the amount of the tax in arrears
is over Renminbi 10000 Yuan but under Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment or confinement with hard
labour for a term of not more than three years as well as a fine of not more than five times the amount of tax in arrears. Where
the amount of tax in arrears is over Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment for a term of over three
years but not more than seven years as well as a fine of not more than five times the amount of tax in arrears.

Where an enterprise or institution commits the offenses specified in Articles 1 or 2 hereof, a fine shall be imposed on the enterprise
or institution in accordance with the provisions set forth in Articles 1 or 2 hereof, and the persons in charge and other personnel
who assume direct responsibility shall be subject to imprisonment or confinement with hard labour for a term of not more than three
years.

Where a taxpayer offers a bribe to tax officials and fails to pay or underpays the amount of tax payable, an investigation into the
criminal liabilities of the taxpayer shall be conducted based on an offense of bribery, and the taxpayer shall be subject to a fine
of not more than five times the amount of tax which has not been paid or underpaid.

Where an enterprise or institution fraudulently obtains a tax refund through the adoption of deceptive means such as fraudulently
declaring the commodities it produces or operates as export goods, and where the amount of the tax refund which has been fraudulently
obtained is over Renminbi 10000 Yuan, a fine of not more than five times the amount of the tax refund which has been fraudulently
obtained shall be imposed on the enterprise or institution, and the persons in charge and other personnel who assume direct responsibility
shall be subject to imprisonment or confinement with hard labour for a term of not more than three years.

Where an entity or individual other than those as prescribed in the preceding Paragraph fraudulently obtains a tax refund for export
from the State, an investigation into the criminal liabilities of the entity or individual shall be conducted based on an offense
of fraud, and a fine of not more than five times the amount of the tax refund which has been fraudulently obtained shall be imposed
on the entity or individual. In addition to imposing a fine on an entity which has committed the offense specified in this Paragraph,
an investigation into the criminal liabilities of the persons in charge and other personnel who assume direct responsibility shall
be conducted based on an offense of fraud.

“Refusal to pay tax” means the refusal to pay tax by using violence or menace. A taxpayer who has refused to pay tax shall be subject
to imprisonment or confinement with hard labour for a term of not more than three years as well as a fine of not more than five times
the amount of tax the taxpayer has refused to pay. Where the case is serious, the taxpayer shall be subject to imprisonment for a
term of over three years but not more than seven years as well as a fine of not more than five times the amount of tax the taxpayer
has refused to pay.

In the case of refusal to pay tax by using violence which causes a person to suffer from serious injury or death, a serious punishment
shall be imposed based on an offence of assault or manslaughter, and a fine shall be imposed in accordance with the provisions set
forth in the preceding Paragraph.

Where the offenses specified herein are committed, the tax authorities shall pursue the payment of the amount of tax which has not
been paid or underpaid, or is in arrears, or a taxpayer has refused to pay, or has been fraudulently obtained. Where a taxpayer is
exempt from criminal punishment in accordance with the law, the tax authorities shall, in addition to pursuing the payment of the
amount of tax which has not been paid or underpaid, or is in arrears, or the taxpayer has refused to pay, or has been fraudulently
obtained, shall impose a fine of not more than five times the amount of tax which has not been paid or underpaid, or is in arrears,
or the taxpayer has refused to pay, or has been fraudulently obtained.

The present provisions shall enter into force as of January 1,1993.

The Standing Committee of the National People’s Congress
1992-09-04

MEASURES GOVERNING THE PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-07-12	Effective Date	1992-07-12

Measures Governing the Participation of Foreign Firms in the Salvage of Sunken Ships and Objects in the Chinese Coastal Waters

(Promulgated on July 12, 1992 by Decree No. 102 of the State Council of

the People’s Republic of China and effective as of the date of promulgation)

Article 1 These Measures are formulated in order to strengthen the
control of the participation of foreign firms in the activities salvaging
sunken ships and objects in the Chinese coastal waters and to ensure the
lawful rights and interests of the parties concerned.

Article 2 These Measures shall apply to the participation of foreign
firms in the activities salvaging sunken ships and objects with commercial
value in the Chinese coastal waters.

These Measures shall not apply to the cases where the owners of the sunken
ships and objects engage in the salvage themselves or invite salvage agencies
to undertake the salvage in the Chinese coastal waters.

Article 3 For the purpose of these Measures, the following terms shall
have the meanings respectively defined hereunder:

(1) “Foreign firm” means enterprises or other economic organizations or
individuals of foreign countries.

(2) “Coastal waters” means the internal seas and territorial seas of the
People’s Republic of China as well as all the other sea areas under its
jurisdiction.

(3) “Sunken ships and objects” means all kinds of vessels and objects
which have sunken under the surface of water or have been buried beneath the
mud surface at seabed in the Chinese coastal waters, which include the main
bodies of the sunken ships or objects and their equipments, and all of the
cargoes or other sundries loaded thereon.

Sunken warships and weaponry with important military value and sunken
ships and objects confirmed as cultural relics are not covered in the scope of
salvage by the participation of foreign firms.

(4) “Salvage operation” means all kinds of operational activities for
salvaging sunken ships and objects according to a joint salvage contract or a
contract for a Chinese-foreign salvage cooperative enterprise, including the
implementation of survey, identification, salvage and other activities related
thereto.

(5) “Operator of salvage” means any unit or individual that actually
operates the salvage.

Article 4 The Chinese Government shall protect, in accordance with the
law, the gains and other lawful rights and interests due to the Chinese and
foreign parties who participate in the salvage of sunken ships and objects in
the Chinese coastal waters (hereinafter referred to as “Chinese and foreign
parties participating in the salvage”).

All the activities of Chinese and foreign parties participating in the
salvage shall comply with the related laws, rules and regulations of the
People’s Republic of China, and be subjected to the control and supervision of
the competent authorities of the Chinese Government.

Article 5 The Ministry of Communications of the People’s Republic of
China is in charge of the affairs regarding the participation of foreign firms
in the salvage of sunken ships and objects in the Chinese coastal waters.

Article 6 Foreign firms may participate in the salvage of sunken ships
and objects in the Chinese coastal waters in either of the following modes:

(1) to sign a joint salvage contract with a Chinese operator of salvage
and undertake the salvage activities in accordance with the rights and duties
of each party as stipulated in the contract;

(2) to establish a Chineseforeign salvage cooperative enterprise with a
Chinese operator of salvage and undertake the salvage activities.

Article 7 Any Chinese operator of salvage shall be a professional salvage
agency with the qualification of undertaking salvage, and such qualification
shall be examined and approved by the Ministry of Communications of the
People’s Republic of China pursuant to the state-formulated requirements of
the professional salvage agency.

Article 8 Definite salvage targets must be expressly fixed in either a
joint salvage contract or a contract for a Chineseforeign salvage cooperative
enterprise. Any sunken ships or objects other than those fixed in the
contracts found during the salvage operation may not be salvaged by either
Chinese or foreign party participating in the salvage without authorization.

Article 9 The Ministry of Communications of the People’s Republic of
China shall be responsible for uniformly organizing negotiations with foreign
firms on affairs concerning the salvage of sunken ships and objects in the
Chinese coastal waters, determining salvage projects and organizing Chinese
operators of salvage to sign joint salvage contracts or contracts for
Chinese-foreign salvage cooperative enterprises with foreign firms in
accordance with the law.

Article 10 The joint salvage contract signed between a foreign firm and a
Chinese operator of salvage shall accord with the related stipulations of the
Law of the People’s Republic of China on Economic Contracts Involving Foreign
Interest and be subject to the approval by the Ministry of Communications of
the People’s Republic of China.

The Chinese-foreign salvage cooperative enterprise formed by a foreign
firm and a Chinese operator of salvage shall go through the formalities of
examination and approval as well as registration in accordance with the
stipulations of the Law of the People’s Republic of China on Chinese-Foreign
Contractual Joint Ventures.

Article 11 While a joint salvage contract or a contract for a
Chinese-foreign salvage cooperative enterprise is submitted to the authorities
for examination and approval, the relevant documents of the implementing
salvage plan approved by the harbour superintendency establishments of the
People’s Republic of China (hereinafter referred to as harbour
superintendency) shall be presented; where an area of fishing port is
involved, the relevant documents approved by the fishery administrative
authorities and fishing harbour superintendency establishments shall be
presented; where a military forbidden area or district is involved, the
relevant documents approved by the competent military authorities shall be
presented.

The examination and approval authorities shall, within 45 days after
receiving the application for examination and approval of the above-mentioned
contract, decide whether to approve or disapprove.

Article 12 After the approval of the joint salvage contract, the foreign
firm shall apply for business registration to the State Administration for
Industry and Commerce of the People’s Republic of China within 30 days after
its receipt of the document of approval and obtain a business license; it
shall register with the local tax authorities within 30 days after obtaining
the business license.

Article 13 A foreign firm participating in the salvage of sunken ships
and objects within the internal seas and territorial seas of the People’s
Republic of China shall bear all the costs and expenses as well as the
financial risks during the salvage operation. The Chinese operator of salvage
is responsible for the coordination with the relevant authorities, the
fulfilment of the necessary formalities and the guardianship during the
salvage operation.

A foreign firm participating in the salvage of sunken ships and objects
beyond the internal seas and territorial seas of the People’s Republic of
China and within other sea areas under its jurisdiction shall bear all the
costs and expenses as well as the financial risks in the phase of survey and
identification. The Chinese and foreign parties shall implement the salvage
operation according to the stipulations of the contract where the salvage is
necessary.

Article 14 The vessels, equipments and labour services needed by the
foreign firm in implementing the joint salvage contract shall first be leased
and employed from the Chinese operator of salvage, if the conditions are the
same.

Article 15 The objects recovered from the salvage of sunken ships and
objects in the Chinese coastal waters with the participation of a foreign firm
(hereinafter referred to as “recovered objects”) shall be disposed of in the
following ways:

(1) The ownership of the sunken ships and objects recovered within the
internal seas and territorial seas of the People’s Republic of China resides
in the People’s Republic of China. The foreign firm shall obtain its gains
from the recovered objects or the sum evaluated in terms of money in
accordance with the stipulations of the joint salvage contract or the contract
for the Chineseforeign salvage cooperative enterprise.

The Chinese operator of salvage shall obtain its gains from the recovered
objects or the sum evaluated in terms of money in accordance with the relative
stipulations of the State or those of the contract for the Chinese-foreign
salvage cooperative enterprise.

(2) The sunken ships and objects recovered from beyond the internal seas
and territorial seas of the People’s Republic of China but within other sea
areas under its jurisdiction shall be distributed to Chinese and foreign
parties participating in the salvage according to the proportions stipulated
in the contract, in form of the recovered objects or the sum evaluated in
terms of money.

(3) Any cultural relics found in the recovered objects or during the
salvage operation shall be reported to the local administrative department for
cultural relics without delay. The department for cultural relics shall
dispose of them in accordance with the law and regulations of the People’s
Republic of China concerning cultural relics protection and give appropriate
rewards to the personnel concerned.

Article 16 The recovered objects obtained by the foreign firms according
to law can be purchased by the relevant authorities of Chinese Government at
the price of international market or transported abroad by the foreign firms
after being taxed and going through the Customs formalities pursuant to the
Chinese Law.

Foreign currency of other gains obtained by the foreign firms can be
remitted abroad after being taxed according to Law.

Article 17 Before the salvage operation, the operators of salvage shall
apply for the issuance of a navigation warning in accordance with the relevant
stipulations of the Maritime Traffic Safety Law of the People’s Republic of
China.

The Ministry of Communications of the People’s Republic of China shall
circulate the related data such as the commencement and termination time of
the salvage operation and its geographical position to the State Bureau of
Oceanography and other relevant authorities.

The operators of salvage shall engage in their salvage operation within
the operational area approved by the harbour superintendency and report the
progress of the salvage activities according to the requirements of the
harbour superintendency. Any methods detrimental to marine resources, marine
environment, underwater facilities, marine military installations and other
interests of the People’s Republic of China may not be used in salvage
operation.

Article 18 The relevant personnel from Chinese and foreign parties
participating in the salvage shall, from the beginning to the end, take part
in the salvage operation and are jointly responsible for the work of
registering and storing the recovered objects.

Article 19 All the recovered objects shall receive the inspection by the
relevant authorities at the place assigned by the competent authorities of the
Chinese Government.

Article 20 Anyone who has violated these Measures to salvage sunken ships
and objects in the Chinese coastal waters shall be ordered to stop the salvage
operation and be warned or fined by harbour superintendency. The violator who
has already caused losses to the State or other individuals shall bear the
liability of compensation.

The amount of fine shall be appraised and decided according to the related
penalty provisions of the State marine traffic administration.

Article 21 The participation of any enterprise or individual or other
economic organization from Hong Kong, Macao or Taiwan in the salvage of sunken
ships and objects in the Chinese coastal waters shall be handled with
reference to these Measures.

Article 22 The Ministry of Communications of the People’s Republic of
China shall be responsible for the interpretation of these Measures.

Article 23 These Measures shall go into effect as of the date of
promulgation.

PROVISIONS ON THE IMPLEMENTATION OF THE INTERNATIONAL COPYRIGHT TREATIES

Provisions on the Implementation of the International Copyright Treaties

(Effective Date:1992.09.30–Ineffective Date:)

Article 1 These Provisions are formulated to implement the international copyright treaties and to protect the legitimate rights and interests
of the owners of copyright in foreign works.

Article 2 With regard to the protection of foreign works, the Copyright Law of the People’s Republic of China (hereinafter referred to as “the
Copyright Law”), the Regulations for the Implementation of Copyright Law of the People’s Republic of China, the Regulations for the
Protection of Computer Software and these Provisions shall apply.

Article 3 The “international copyright treaties” mentioned in these Provisions refers to the Berne Convention for the Protection of Literary
and Artistic Works (hereinafter referred to as “the Berne Convention”) to which the People’s Republic of China (hereinafter referred
to as “China”) is a party, and the bilateral agreements on copyright which China has concluded with foreign countries.

Article 4 Foreign works mentioned in these Provisions shall include:

(1) works of which the author or one of the co-authors or the other owner of copyright or one of the co-owners of copyright is a national
or a permanent resident of a country party to the international copyright treaties;

(2) works of which the author is not a national or a permanent resident of a country party to international copyright treaties but
which have been first published or published simultaneously in a country party of the international copyright treaties;

(3) Works created by others by commission from a Chinese-foreign equity joint venture, a Chinese-foreign contractual joint venture
or a foreign- capital enterprise which, by virtue of a contract, is the owner of copyright or one of the coowners of copyright of
the work.

Article 5 With regard to the term of protection for unpublished foreign works, the provisions of Articles 20 and 21 of the Copyright Law shall
apply.

Article 6 In the case of foreign works of applied art, the term of protection shall be 25 years commencing from the creation of the works.

The preceding paragraph, however, shall not apply to the works of fine arts, including designs of cartoon characters, used in industrial
goods.

Article 7 Foreign computer programmes shall be protected as literary works, shall not be subject to registration and shall enjoy a term of
protection of 50 years commencing from the end of the year of their first publication.

Article 8 Foreign works created by compiling non-protected materials shall be protected in accordance with the provisions of Article 14 of
the Copyright Law, provided that originality is shown in the selection and arrangement of such materials.

Such protection, however, shall not preclude others from using the same materials to create works of compilation.

Article 9 Foreign video recordings shall be protected as cinematographic works to the extent that international copyright treaties treat them
as such works.

Article 10 Prior authorization of the copyright owners shall be required if a published foreign work created in Chinese is to be translated
into and published in the language of a minority nationality.

Article 11 Copyright owners of foreign works have the right to authorize others to perform before the public their works in any manner and by
any means, or to communicate to the public the performance of their works.

Article 12 Copyright owners of foreign cinematographic works, television works and works of video recordings have the right to authorize others
to perform before the public their works.

Article 13 Prior authorization of the copyright owner shall be required for newspapers and periodicals to reprint a foreign work, except the
reprinting of articles on current political, economic and social topics.

Article 14 Copyright owners of foreign works may authorize or prohibit rental of copies of their works after authorizing others to distribtute
such copies.

Article 15 Copyright owners of foreign works have the right to prohibit the importation of the following types of copies of their works:

(1) infringing copies;

(2) copies coming from a country where their works are not protected.

Article 16 In the case of public performance, recording and broadcasting of foreign works, the provisions of the Berne Convention shall apply.
Where there is a collective administration organization, prior authorization of such organization shall be required.

Article 17 Foreign works which, at the date on which the international copyright treaties enter into force in China, have not fallen into the
public domain in their countries of origin shall be protected until the expiration of the term of protection as is prescribed in
the Copyright Law and these Provisions.

The preceding paragraph shall not apply to the uses of foreign works that had taken place before the international copyright treaties
entered into force in China.

A Chinese citizen or legal person who owned and used a particular copy of a foreign work for a particular purpose before the entry
into force of the international copyright treaties in China may continue to make use of that copy of the work without liability;
but such copy may not be reproduced nor used in any manner susceptible to prejudice unreasonably the legitimate rights and interests
of the copyright owner.

The application of the foregoing three paragraphs shall be subject to the provisions of the bilateral agreements on copyright concluded
by China with the countries concerned.

Article 18 Articles 5, 12, 14, 15, and 17 of these Provisions shall also apply to sound recordings.

Article 19 Where pre-existing administrative regulations relating to copyright conflict with these Provisions, these Provisions shall apply.
Where these Provisions conflict with the international copyright treaties, the international copyright treaties shall apply.

Article 20 The implementation in China of the international copyright treaties shall be the responsibility of the National Copyright Administration
of China.

Article 21 The interpretation of these Provisions shall be the responsibility of the National Copyright Administration of China.

Article 22 These Provisions shall enter into force as of September 30, 1992.

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING PORT SUPPLY TO FOREIGN AND CHINESE OCEANGOING VESSELS

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-01-08	Effective Date	1992-01-08

Circular of the General Office of the State Council Concerning Port Supply to Foreign and Chinese Oceangoing Vessels

(January 8, 1992)

With the rapid development of China’s economy and foreign trade, the
amount of foreign and Chinese oceangoing vessels entering and leaving our
ports increases with each passing day, which makes the port supply of ship’s
materials and provisions an ever heavier burden. The State Council has paid a
considerable attention to this work, and has formulated explicit regulations
in this regard. However, problems of price confusion, loss of foreign exchange
and violations of the law and discipline have arisen time and again in the
work of port supply owing to the meddling of different quarters in this
service during recent years. With a view to further improving port supply, it
is hereby noticed with the consent of the State Council as follows:

1. Ports are windows of China’s opening to the outside world. It is of
great economic and political significance to do well the work of ship’s supply
and receiption of foreign and Chinese seamen. For this reason, the people’s
governments of the localities where the ports are situated and the relevant
departments of the State Council shall, proceeding from the general situation,
accomplish this work satisfactorily in harmonious cooperation through earnest
efforts.

2. The supply of the materials required by Chinese and foreign vessels is
a foreignrelated task, which shall be properly centralized. Except the foreign
ships supply companies of the commercial system (hereinafter referred to as
the foreign ships supply companies) and the supply stations (companies) of the
China Ocean Shipping Company, none of the non-designated supply units
(including port labour services) and individuals may engage in the service of
supplying materials and provisions for Chinese and foreign ships.

3. After several decades’ build-up, the foreign ships supply companies
have laid a good foundation of manpower and material resources and accumulated
much experience in the work of supply. In future, the foreign ships supply
companies shall still function as the principal channel in supplying the
materials needed by Chinese and foreign ships at ports. In the meantime, the
foreign ships supply companies shall further improve their operation and
management, constantly raise their efficiency and enhance the quality of their
service so as to make the supply work better cater to the needs of the opening
to the outside world and the development of ocean shipping.

4. The China Ocean Shipping Company’s businesses of supplying materials
and provisions at the ports of Guangzhou, Shanghai, Tianjin, Qingdao and
Dalian, and forwarding the same to the China Ocean Shipping Company ships in
long service overseas is beneficial to the strengthening of the enterprise’s
own management and the raising of its economic benefits. The China Ocean
Shipping Company may continue to supply materials and provisions at the five
major ports and forward the same to its ships abroad, but this shall be
confined to the China Ocean Shipping Company’s vessels. As to whether the
provisions supply service shall cover Lianyungang, Zhanjiang, Qinhuangdao and
other ports shall be determined by the State Planning Commission through
consultation with the departments concerned in light of the development of the
China Ocean Shipping Company’s fleet.

    5. The foreign ships supply companies and supply stations (companies)
under China Ocean Shipping Company shall implement conscientiously the rules
and regulations of the State governing commodity prices,  tax revenue and
foreignexchange control,  and enhance mutual support and cooperation in their
business so as to accomplish jointly the task of supplying ships at ports. The
China Ocean Shipping Agency (PENAVICO) shall, in accordance with the relevant
provisions, render conscientious and enthusiastic services to the ships
engaged in international marine transport at ports.

6. The people’s governments in the localities where the ports are situated
shall instruct the departments concerned to formulate corresponding
port-management measures to tackle the problems existing in the material
supply in the port areas comprehensively. The control on ships operating at
ports as well as men and vehicles entering the ports shall be strengthened,
and illegal activities such as black-marketing of foreign exchange,
prostitution, whore-visiting and unlawful business operations shall be
resolutely combated and banned. Anyone that has violated the criminal laws
shall be handed over to the judicial organs for punishment.

MEASURES OF THE CUSTOMS OFFICE CONCERNING ADMINISTRATION OF GOODS, MEANS OF TRANSPORT, ARTICLES CARRIED BY INDIVIDUALS AND POSTAL ARTICLES LEAVING OR ENTERING THE YANGPU ECONOMIC DEVELOPMENT ZONE OF HAINAN PROVINCE

Category	CUSTOMS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-07-27	Effective Date	1992-07-27

Measures of the Customs Office of the People’s Republic of China Concerning Administration of Goods, Means of Transport, Articles Carried by Individuals and Postal Articles Leaving or Entering the Yangpu Economic Development Zone of Hainan Province

Chapter I  General Provisions
Chapter II  Administration of Import and Export Goods and
Chapter III  Administration of Goods Coming and Going between
Chapter IV  Administration of Means of Transport Entering or
Chapter V  Administration of Articles Carried by Individuals
Chapter VI  Supplementary Provisions

(Approved by the State Council on July 7, 1992, promulgated

by Decree No.32 of the General Administration of Customs on
July 27, 1992)
Chapter I  General Provisions

Article 1 These Measures are formulated in accordance with
the Customs Law of the People’s Republic of China and the
provisions of other relevant laws and regulations promulgated by
the state in order to promote the construction in Yangpu Economic
Development Zone (hereinafter referred to as the Development
Zone) and develop the export-oriented economy.

Article 2 The Development Zone is under the supervision and
administration of Customs, and Customs shall carry out the tasks
of supervision and administration in the Development Zone in
accordance with the law. A closed and separate installation shall
be established between the Development Zone and non-development
areas (i.e. other areas within the territory of China, the same
below).

Article 3 Enterprises in the Development Zone shall present
valid certificates issued by the administrative department in the
Development Zone to Customs for registration.

Article 4 Goods, means of transport, articles carried by
individuals and postal articles which enter or leave the
Development Zone must go through the channel designated by
Customs. The consignee and consignor of the goods, the owner of
the articles, the person in charge of the means of transport and
their agents shall make truthful declarations to Customs, fill in
the declaration form for import and export commodities in
accordance with provisions, present the relevant documents and
agree to inspections by Customs.

Article 5 Goods imported by the Development Zone shall be
used only in the Development Zone; these goods are strictly
forbidden to be transferred or sold to non-development areas
without approval. Products produced in the Development Zone are
in principle for export.

Article 6 Goods and articles for which import or export is
forbidden by the state shall not be brought into or out of the
Development Zone.

Article 7 Enterprises in the Development Zone shall, in
accordance with the provisions of relevant laws and regulations,
establish accounting headings, account books and report forms,
and shall fill in the report forms regularly and submit them to
Customs for examination and verification.

Article 8 Customs is enpost_titled to inspect, in accordance with
the provisions of Customs Law of the People’s Republic of China,
the persons, the means of transport, and relevant locations in
the Development Zone, who or which are suspected of being
involved in smuggling.
Chapter II Administration of Import and Export Goods and
Preferential Treatment in Taxation

Article 9 Import or export licenses shall not be required
for the following cases: the importation into the Development
Zone of machinery, equipment, goods and materials for capital
construction, motor vehicles for production, means of transport,
and articles for office use which are to be used within the
Development Zone; importation into the Development Zone of raw
and processed materials, spare and component parts, primary
parts, fuels, and packaging supplies needed for processing export
products in the Development Zone; transit goods; the importation
into the Development Zone of consumption goods and materials to
be sold in markets within the Development Zone; and products
processed in the Development Zone and destined for export.

Article 10 Customs duty and consolidated industrial and
commercial taxes (product taxes or value-added taxes) on import
and export goods of the Development Zone shall be handled in
accordance with the following provisions:

(1) The machinery, equipment and goods and materials for
capital construction needed to be imported for the construction
of infrastructure in the Development Zone shall be exempted from
duty;

(2) The construction and repair materials, production and
administration equipment, fuels necessary for production and
operation, a reasonable number of motor vehicles necessary for
production, other means of transport, articles for office use and
spare parts and fittings needed for the maintenance of the
aforesaid machinery, equipment and motor vehicles which are
imported by enterprises in the Development Zone for their own use
shall be exempted from duty;

(3) A reasonable quantity of means of transport, articles for
office use and equipment for administration imported by
administrative departments or institutions in the Development
Zone for their own use shall be handled in accordance with the
provisions of Item 2 of this Article;

(4) Imported goods and materials covered in Items 1, 2 and 3
which are necessary for the operation of transportation,
communications, real estate, commercial business, catering trades
and other service trades in the Development Zone shall be
exempted from duty;

(5) Goods imported within the specified quotas and variety by
state-operated duty-free stores established with the approval of
the competent authority of the state shall be exempted from duty;

(6) Transit goods, raw and processed materials, spare and
components parts, primary parts and packaging supplies imported
by enterprises in the Development Zone for production of export
products shall be held in bond;

(7) Consumption goods and materials imported by the
Development Zone for supply to markets in the Zone shall be
allowed a 50 percent reduction of duty, excepting imported
tobacco and liquor, which shall be subject full duty; and

(8) The exportation of products produced in the Development
Zone shall be exempt from export duty.

Article 11 Goods for entrepot trade in the Development Zone
shall be stored in warehouses or sites designated by Customs and
shall be subject to the supervision and administration of
Customs. Transit goods, with the approval of Customs, may undergo
simple processing in warehouses, such as grading, selecting,
pasting labels and changing packaging.
Chapter III Administration of Goods Coming and Going between
the Development Zone and Non-Development Areas

Article 12 Goods coming and going between the Development
Zone and non-development areas shall be treated as imported and
exported goods that shall be declared at Customs by the consignee
or consignor and be subject to the inspection of Customs.

Article 13 The building materials, construction machinery
and consumption goods for daily use supplied to the Development
Zone by non-development areas shall, upon entering the
Development Zone, be examined and approved by Customs and be
subject to the supervision and administration of Customs.

Article 14 Where any products produced in the Development
Zone are to be sold to non-development areas, or any goods
imported by the Development Zone are to be transported to non-
development areas, approval from Customs shall be obtained and
the specified approval certificates shall be presented to Customs
for examination. Customs shall go through formalities in
accordance with relevant provisions.

Article 15 If any materials or components imported by
enterprises in the Development Zone are to be transported to non-
development areas for processing for export-oriented finished
products, approval from Customs shall be obtained.

If any enterprises in non-development areas wish to transport
materials or components to the Development Zone for processing by
enterprises therein, they shall go through the appropriate
Customs procedures. If there is a need to use or expend the
imported materials or components of enterprises in the
Development Zone, it shall be submitted to Customs for approval.
If the said imported materials or components are to be
transported from the Development Zone, relevant import
formalities shall be completed.

Article 16 Finished products produced or assembled by
enterprises in the Development Zone with duty-free imported raw
or processed materials, spare and component parts or primary
parts may be allowed a 50 percent reduction of duties if they are
to be sold within the Development Zone; where said products are
approved for transport to non-development areas, duties shall be
either exempted or levied by Customs in accordance with relevant
provisions. In the event that the consignors or their agents
cannot submit an accurate report on the names, quantities and
values of the imported materials or components contained in the
products composed of imported materials, Customs shall consider
the products as imported and levy duties as such.

Article 17 Goods imported and exported by non-development
areas via the Development Zone shall be subject to the
supervision and administration of Customs. They shall be
administered in accordance with Customs’ provisions concerning
the transport of goods from one place with a Customs
establishment to another, and shall go through the Development
Zone by a designated route within a period specified by Customs.
Chapter IV Administration of Means of Transport Entering or
Leaving the Development Zone

Article 18 Inward and outward means of transport of the
Development Zone shall be declared at Customs by the owners of
the means of transport or by their agents, and shall be subject
to the supervision, administration and inspection of Customs.

Article 19 Means of transport running between the
Development Zone and non-development areas shall go through the
registration procedures with the approval certification issued by
the people’s government of Hainan province or other designated
competent authorities. Means of transport entering or leaving the
Development Zone shall be declared at Customs and be subject to
the inspection of Customs.
Chapter V Administration of Articles Carried by Individuals
and Articles Sent by Post

Article 20 Inward and outward articles carried by
individuals and inward and outward articles sent by post shall be
declared at Customs, and Customs shall, after examination and
inspection, give customs clearance according to relevant
provisions, except for those articles for which entry or exit is
forbidden by the state.

Article 21 Articles carried along by individuals leaving the
Development Zone for non-development areas shall be declared at
Customs, and be subject to the inspection of Customs. Customs shall
act in accordance with the measures for the supervision and
administration of luggage and articles carried by travelers
entering or leaving the country.

Articles posted by individuals from the Development Zone to
non-development areas shall be handled by Customs acting in
accordance with the measures for the supervision and
administration of postal articles entering or leaving the country.
Articles for which import is restricted by the state may not be
posted from the Development Zone to other areas.
Chapter VI Supplementary Provisions

Article 22 Supervision charges for bonded goods or goods for
which customs duties have been reduced or exempted that have been
imported into the Development Zone shall be handled in accordance
with the Measures of the Customs of the People’s Republic of
China Concerning the Collection of Customs Supervision Charges
for Bonded Goods or Goods for Which Customs Duties Have Been
Reduced or Exempted.

Article 23 Smuggling and other violations of Customs’
provisions shall be dealt with by Customs in accordance with
provisions of the Customs Law of the People’s Republic of China
and other relevant laws and regulations. Those in violation of
the Criminal Law shall be referred to judicial organs for
investigation of criminal responsibility.

Article 24 Related matters which are not covered in these
Measures shall be handled in accordance with the relevant
existing provisions of Customs for the Hainan Special Economic Zone.

Article 25 The date of implementation of these Measures shall
be determined by the General Administration of Customs after the
separate installations for the Development Zone have passed
inspection by Customs.

Article 26 The Customs of Haikou shall formulate its
implementation rules according to these Measures and implement
the rules after they have been submitted to and approved by the
General Administration of Customs.

Article 27 The General Administration of Customs shall be
responsible for interpreting these Measures.

REGULATIONS FOR THE IMPLEMENTATION OF INTERNATIONAL COPYRIGHT TREATIES

Regulations for the Implementation of International CopyrightTreaties

(Promulgated on September 25, 1992)

Whole Doc.

Article 1

These Regulations are formulated in order to implement international

Article 2

The protection of foreign works shall be governed by the PRC

Copyright Law (the Copyright Law), the PRC Copyright Law Implementing Rules, the Computer Software Protection Regulations
and these Regulations.

Article 3

The term “international copyright treaties” as used in these

Regulations shall refer to the Berne Convention for the Protection of

Literary and Artistic Works (the Berne Convention) acceded to by the PRC

and bilateral copyright agreements entered into with foreign countries.

Article 4

The term “foreign works” as used these Regulations shall include the

following:

(1) works, of which the author or one of the authors, or the owners

or one of the owners of the copyright, is a national of a country that is

a member of an international copyright treaty or a resident of such member

country with habitual residence in such member country;

(2) works that are not authored by a national of a country that is a

member of an international copyright treaty or by a resident of such

member country with habitual residence in such member country, but that

are first or simultaneously published in such member country; and

(3) works, the creation of which was commissioned to another party by

a Sino-foreig n equity joint venture, a Sino-foreign cooperative joint

venture or a wholly foreign owned enterprise, and for which a contract

provides that such joint venture or enterprise is the owner or one of the

owners of the copyright.

Article 5

Articles 20 and 21 of the Copyright Law shall apply to the term of

protection of unpublished foreign works.

Article 6

The term of protection of foreign works of applied art shall be 25

years from the completion of such works.

The preceding paragraph shall not apply to works of fine art

(including designs of animated cartoon imaged) used on industrial

products.

Article 7

Foreign computer programs shall be protected as literary works and

shall not require registration. The term of protection shall be 50 years

from the end of the year of first publication of such a program.

Article 8

Foreign works that are a compilation of unprotected material but that

are original in terms of the selection or arrangement of the material

shall be protected under Article 14 of the Copyright Law. Such protection

shall not exclude others from using the same material for a compilation.

Article 9

Foreign video recordings that under international copyright treaties

constitute cinematographic works shall be protected as cinematographic

works.

Article 10

Where a foreigner has created and published a work in the language of

the Han nationality, the publication and distribution of a translation of

such work into the language of a minority nationality shall be subject to

prior authorization of the copyright owner.

Article 11

Owners of copyright in foreign works may authorize others publicly to

perform their works, or to communicate to the public the performance of

their works, by any means or process.

Article 12

Owners of copyright in foreign cinematographic, television and video

recording works may authorize others to publicly p erform their works.

Article 13

Reproduction by the press of foreign works shall be subject to prior

authorization of the copyright owners, except in the case of reproduction

of articles on current social topics such as political and economic

issues.

Article 14

After owners of copyright in foreign works have authorized other

persons to distribute copies of their works, they may authorize or

prohibit the rental of copies of their works.

Article 15

The owner of the copyright in a foreign work shall have the right to

prohibit import of the following reproductions of his work:

(1) infringing copies; and

(2) reproductions coming from a country where the work is not

protected.

Article 16

The performance, recording or broadcasting of foreign works shall be

governed by the Berne Convention. Where collective administration

organizations exist, prior authorization shall be obtained from such

organizations.

Article 17

Foreign works that have not yet fallen into the public domain in the

country of origin on the date of the international copyright treaty coming

into force in China, shall be protected until the expiry of the term of

protection provided for in the Copyright Law and these Regulations.

The provisions of the preceding paragraph shall not apply to the use

of foreign works prior to the date of the international copyright treaty

coming into force in China.

Chinese citizens or legal persons that owned and used particular

reproductions of foreign works for particular purposes prior to the

international copyright treaty coming into force in China, may continue to

use the reproductions of such works without liability, provided that such

reproductions are neither reproduced nor used in any way that would

unreasonably prejudice the legitimate rights and interests of the owners

of copyright in the works.

The provisions of the preceding 3 paragraphs shall be implemented in

accordance with the relevant bilateral copyright agreements between China

and the relevant countries.

Article 18

Articles 5, 12, 14, 15 and 17 of these Regulations shall apply to

products of sound recordings.

Article 19

In the event of any discrepancies between these Regulations and

administrative laws and regulations concerning copyright that were

promulgated prior to the implementation of these Regulations, these

Regulations shall prevail. In the event of any discrepancies between these

Regulations and international copyright treaties, the international

Article 20

The State Copyright Administration shall be responsible for the

implementation of international copyright treaties in China.

Article 21

The State Copyright Administration shall be responsible for the

interpretation of these Regulations.

Article 22

These Regulations shall be implemented as of September 30, 1992.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE TERRITORIAL SEA AND THE CONTIGUOUS ZONE

The Standing Committee of the National People’s Congress

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

No.55

The Law of the People’s Republic of China on the Territorial Sea and the Contiguous Zone, adopted at the 24th Meeting of the Standing
Committee of the Seventh National People’s Congress on February 25, 1992, is promulgated now and shall enter into force as of the
date of promulgation.

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

February 25, 1992

Law of the People’s Republic of China on the Territorial Sea and the Contiguous Zone

Article 1

This Law is enacted for the People’s Republic of China to exercise its sovereignty over its territorial sea and the control over its
contiguous zone, and to safeguard its national security and its maritime rights and interests.

Article 2

The territorial sea of the People’s Republic of China is the sea belt adjacent to the land territory and the internal waters of the
People’s Republic of China.

The land territory of the People’s Republic of China includes the mainland of the People’s Republic of China and its coastal islands;
Taiwan and all islands appertaining thereto including the Diaoyu Islands; the Penghu Islands; the Dongsha Islands; the Xisha Islands;
the Zhongsha Islands and the Nansha Islands; as well as all the other islands belonging to the People’s Republic of China.

The waters on the landward side of the baselines of the territorial sea of the People’s Republic of China constitute the internal
waters of the People’s Republic of China.

Article 3

The breadth of the territorial sea of the People’s Republic of China is twelve nautical miles, measured from the baselines of the
territorial sea.

The method of straight baselines composed of all the straight lines joining the adjacent base points shall be employed in drawing
the baselines of the territorial sea of the People’s Republic of China.

The outer limit of the territorial sea of the People’s Republic of China is the line every point of which is at a distance equal to
twelve nautical miles from the nearest point of the baseline of the territorial sea.

Article 4

The contiguous zone of the People’s Republic of China is the sea belt adjacent to and beyond the territorial sea. The breadth of the
contiguous zone is twelve nautical miles.

The outer limit of the contiguous zone of the People’s Republic of China is the line every point of which is at a distance equal to
twenty-four nautical miles from the nearest point of the baseline of the territorial sea.

Article 5

The sovereignty of the People’s Republic of China over its territorial sea extends to the air space over the territorial sea as well
as to the bed and subsoil of the territorial sea.

Article 6

Foreign ships for non-military purposes shall enjoy the right of innocent passage through the territorial sea of the People’s Republic
of China in accordance with the law.

Foreign ships for military purposes shall be subject to approval by the Government of the People’s Republic of China for entering
the territorial sea of the People’s Republic of China.

Article 7

Foreign submarines and other underwater vehicles, when passing through the territorial sea of the People’s Republic of China, shall
navigate on the surface and show their flag.

Article 8

Foreign ships passing through the territorial sea of the People’s Republic of China must comply with the laws and regulations of the
People’s Republic of China and shall not be prejudicial to the peace, security and good order of the People’s Republic of China.

Foreign nuclear-powered ships and ships carrying nuclear, noxious or other dangerous substances, when passing through the territorial
sea of the People’s Republic of China, must carry relevant documents and take special precautionary measures.

The Government of the People’s Republic of China has the right to take all necessary measures to prevent and stop non-innocent passage
through its territorial sea.

Cases of foreign ships violating the laws or regulations of the People’s Republic of China shall be handled by the relevant organs
of the People’s Republic of China in accordance with the law.

Article 9

The Government of the People’s Republic of China may, for maintaining the safety of navigation or for other special needs, request
foreign ships passing through the territorial sea of the People’s Republic of China to use the designated sea lanes or to navigate
according to the prescribed traffic separation schemes. The specific regulations to this effect shall be promulgated by the Government
of the People’s Republic of China or its competent authorities concerned.

Article 10

In the case of violation of the laws or regulations of the People’s Republic of China by a foreign ship for military purposes or a
foreign government ship for noncommercial purposes when passing through the territorial sea of the People’s Republic of China, the
competent authorities of the People’s Republic of China shall have the right to order it to leave the territorial sea immediately
and the flag State shall bear international responsibility for any loss or damage thus caused.

Article 11

All international organizations, foreign organizations or individuals shall obtain approval from the Government of the People’s Republic
of China for carrying out scientific research, marine operations or other activities in the territorial sea of the People’s Republic
of China, and shall comply with the laws and regulations of the People’s Republic of China.

All illegal entries into the territorial sea of the People’s Republic of China for carrying out scientific research, marine operations
or other activities in contravention of the provisions of the preceding paragraph of this Article, shall be dealt with by the relevant
organs of the People’s Republic of China in accordance with the law.

Article 12

No aircraft of a foreign State may enter the air space over the territorial sea of the People’s Republic of China unless there is
a relevant protocol or agreement between the Government of that State and the Government of the People’s Republic of China, or approval
or acceptance by the Government of the People’s Republic of China or the competent authorities authorized by it.

Article 13

The People’s Republic of China has the right to exercise control in the contiguous zone to prevent and impose penalties for activities
infringing the laws or regulations concerning security, the customs, finance, sanitation or entry and exit control within its land
territory, internal waters or territorial sea.

Article 14

The competent authorities concerned of the People’s Republic of China may, when they have good reasons to believe that a foreign ship
has violated the laws or regulations of the People’s Republic of China, exercise the right of hot pursuit against the foreign ship.

Such pursuit shall be commenced when the foreign ship or one of its boats or other craft engaged in activities by using the ship pursued
as a mother ship is within the internal waters, the territorial sea or the contiguous zone of the People’s Republic of China.

If the foreign ship is within the contiguous zone of the People’s Republic of China, the pursuit may be undertaken only when there
has been a violation of the rights as provided for in the relevant laws or regulations listed in Article 13 of this Law.

The pursuit, if not interrupted, may be continued outside the territorial sea or the contiguous zone until the ship pursued enters
the territorial sea of its own country or of a third State.

The right of hot pursuit provided for in this Article shall be exercised by ships or aircraft of the People’s Republic of China for
military purposes, or by ships or aircraft on government service authorized by the Government of the People’s Republic of China.

Article 15

The baselines of the territorial sea of the People’s Republic of China shall be promulgated by the Government of the People’s Republic
of China.

Article 16

The Government of the People’s Republic of China formulates the relevant regulations in accordance with this Law.

Article 17

This Law shall come into force on the date for promulgation.

The Standing Committee of the National People’s Congress
1992-02-25

CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF CHONGQING AND SOME 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	1992-07-30	Effective Date	1992-07-30

Circular of the State Council Regarding the Further Opening of Chongqing and Some Other Cities

(July 30, 1992)

The State Council has resolved to further open five cities–Chongqing,
Yueyang, Wuhan, Jiujiang and Wuhu along the Yangtze River, four provincial
capitals–Ha’erbin, Changchun, Huhhot and Shijiazhuang in border areas or
along the coast, and 11 provincial capitals–Taiyuan, Hefei, Nanchang,
Zhengzhou, Changsha, Chengdu, Guiyang, Xi’an, Lanzhou, Xining, and Yinchuan
in inland areas. In the above-mentioned cities, the policy on costal open
cities shall be implemented. Moreover, until the end of 1995, these cities
shall be exempt from import duties and product taxes (value-added taxes) for
the equipment imported to meet the requirements of technological reforms which
conform to the state’s industrial policy, and for the processing machinery
imported to develop export-oriented agriculture and that are presently
impossible to obtain domestically.

PROTECTION OF RIGHTS AND INTERESTS OF WOMEN

Law of the People’s Republic of China on the Protection of Rights and Interests of Women

(ADOPTED AT THE FIFTH SESSION OF THE SEVENTH NATIONAL PEOPLE’S CONGRESS ON APRIL 3, 1992)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II POLITICAL RIGHTS

CHAPTER III RIGHTS AND INTERESTS RELATING TO CULTURE AND EDUCATION CHAPTER IV RIGHTS AND INTERESTS RELATING TO WORK

CHAPTER V RIGHTS AND INTERESTS RELATING TO PROPERTY

CHAPTER VI RIGHTS RELATING TO THE PERSON

CHAPTER VII RIGHTS AND INTERESTS RELATING TO MARRIAGE AND FAMILY CHAPTER VIII LEGAL RESPONSIBILITY

CHAPTER IX SUPPLEMENTARY PROVISIONS

Article 1. In accordance with the Constitution and the actual conditions of the country, this Law is formulated to protect women’s
lawful rights and interests, promote the equality between men and women and allow full play to women’s role in
socialist modernization.

Article 2. Women shall enjoy equal rights with men in all aspects of political, economic, cultural, social and family life.

The state shall protect the special rights and interests enjoyed by women according to law, and gradually perfect its
social security system with respect to women.

Discrimination against, maltreatment of, or cruel treatment in any manner causing injury even death of women shall be prohibited.

Article 3. The protection of women’s lawful rights and interests is a common responsibility of the whole society. State
organs, public organizations, enterprises and institutions as well as urban and rural mass organizations of self-government
at the grass-roots level shall, in accordance with the provisions of this Law and other relevant laws, protect women’s
rights and interests.

The state shall take effective measures to provide necessary conditions for women to exercise their rights according
to law.

Article 4. The State Council and the people’s governments of provinces, autonomous regions and municipalities directly
under the Central Government shall, by taking organizational measures, coordinate with relevant departments
in ensuring the protection of women’s rights and interests. The specific organs shall be designated by the
State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the
Central Government.

Article 5. The All-China Women’s Federation and women’s federations at various levels shall represent and uphold the rights
of women of all nationalities and all walks of life, and strive for the protection of women’s rights and interests.

The trade unions and the Communist Youth League organizations shall also, within the scope of their respective work,
strive for the protection of women’s rights and interests.

Article 6. The state shall encourage women to cultivate a sense of self-respect, self-confidence, self-reliance and self-strengthening,
and to safeguard their own lawful rights and interests by utilizing law. Women shall abide by the laws of the state,
respect social morality and perform their obligations prescribed by law.

Article 7. People’s governments at various levels and relevant departments shall commend and award the organizations and individuals
that have made notable achievements in the protection of women’s lawful rights and interests.

CHAPTER II POLITICAL RIGHTS

Article 8. The state shall guarantee that women enjoy equal political rights with men.

Article 9. Women have the right to conduct state affairs, manage economic and cultural undertakings and administer social affairs
through various channels and in various ways.

Article 10. Women shall enjoy the equal right, with men, to vote and to stand for election.

Among deputies to the National People’s Congress and local people’s congresses at various levels, there shall be
an appropriate number of women deputies, and the proportion thereof shall be raised gradually.

Article 11. The state shall actively train and select female cadres.

State organs, public organizations, enterprises and institutions must, in appointing cadres, adhere to the principle
of equality between men and women, and attach importance to the training and selection of female cadres for leading posts.

The state shall pay attention to the training and selection of female cadres of minority nationalities.

Article 12. Women’s federations at various levels and their member organizations may recommend female cadres to state organs,
public organizations, enterprises or institutions.

Article 13. The departments concerned shall listen to and accept criticisms or rational suggestions regarding the protection
of women’s rights and interests; with respect to complaints or charges against, or exposures of infringement
upon women’s rights and interests, the departments concerned must ascertain the facts, and be responsible for
the disposition thereof; no organization or individual may suppress such complaints, charges or exposures or resort
to retaliation.

CHAPTER III RIGHTS AND INTERESTS RELATING TO CULTURE AND EDUCATION

Article 14. The state shall guarantee that women enjoy equal rights with men with respect to culture and education.

Article 15. Schools and departments concerned shall, by implementing the relevant regulations of the state, guarantee that women
enjoy equal rights with men in such aspects as starting school, entering a higher school, job assignment upon
graduation, conferment of academic degrees and dispatch for study abroad.

Article 16. Schools shall, in line with the characteristics of female adolescents, take measures in respect of education, management
and facilities so as to ensure their sound development in body and in mind.

Article 17. Parents or other guardians must perform their duty of ensuring that female school-age children or adolescents receive
the compulsory education.

Where parents or other guardians fail to send female school-age children or adolescents to school, the local people’s
governments shall admonish and criticize them and, by adopting effective measures, order them to send their female
school-age children or adolescents to school, with the exception of those who, on account of illness or
other special circumstances, are allowed by the local people’s governments not to go to school.

The governments, society and schools shall, in the light of the actual difficulties of female school-age children
or adolescents in schooling, take effective measures to ensure that female school-age children or adolescents
receive compulsory education for the number of years locally prescribed.

Article 18. People’s governments at various levels shall, in accordance with relevant provisions, incorporate the work of
elimination of illiteracy or semi-literacy among women into plans for illiteracy elimination and post-elimination
education, adopt organizational forms and working methods suitable to women’s characteristics, and organize and supervise
the relevant departments in the implementation of such plans.

Article 19. People’s governments at various levels and departments concerned shall take measures to organize women in receiving
vocational education and technological training.

Article 20. State organs, public organizations, enterprises and institutions shall,by implementing relevant regulations
of the state, ensure that women enjoy equal rights with men in their participation in scientific, technological, literary,
artistic and other cultural activities.

CHAPTER IV RIGHTS AND INTERESTS RELATING TO WORK

Article 21. The state shall guarantee that women enjoy the equal right, with men, to work.

Article 22. With the exception of the special types of work or post unsuitable to women, no unit may, in employing staff and workers,
refuse to employ women by reason of sex or raise the employment standards for women.

Recruitment of female workers under the age of sixteen shall be prohibited.

Article 23. Equal pay for equal work shall be applied to men and women alike.

Women shall be equal with men in the allotment of housing and enjoyment of welfare benefits.

Article 24. In such aspects as promotion in post or in rank, evaluation and determination of professional and technological post_titles,
the principle of equality between men and women shall be upheld and discrimination against women shall not be allowed.

Article 25. All units shall, in line with women’s characteristics and according to law, protect women’s safety and health
during their work or physical labour, and shall not assign them any work or physical labour not suitable to women.

Women shall be under special protection during menstrual period, pregnancy, obstetrical period and nursing period.

Article 26. No unit may dismiss woman staff and workers or unilaterally terminate labour contracts with them by reason
of marriage, pregnancy, maternity leave or baby-nursing.

Article 27. The state shall develop social insurance, social relief and medical and health services to create conditions
allowing old, ill or disabled women to obtain material assistance.

CHAPTER V RIGHTS AND INTERESTS RELATING TO PROPERTY

Article 28. The state shall guarantee that women enjoy the equal right, with men, to property.

Article 29. In joint property relationship derived from marriage or family, the rights and interests enjoyed by women according
to law may not be infringed upon.

Article 30. Women shall enjoy equal rights with men in the allotment of responsibility farmland, or grain ration farmland and in the
approval of housing sites in rural areas, and women’s lawful rights thereto shall not be infringed upon. After marriage
or divorce, women’s responsibility farmland, grain ration farmland and housing sites shall be secured.

Article 31. Women’s equal right, with men, of succession to property shall be protected by law. Among the statutory successors in the
same order, women shall not be discriminated against. Widowed women have the right to dispose of the property inherited
by them, and no one may interfere with the disposition thereof.

Article 32. Widowed women who have made the predominant contributions in maintaining their parents-in-law shall be regarded
as the statutory successors first in order, and their rights of succession thereto shall not be affected by inheritance
in subrogation.

CHAPTER VI RIGHTS RELATING TO THE PERSON

Article 33. The state shall guarantee that women enjoy equal rights with men relating to their persons.

Article 34. Women’s freedom of the person shall be inviolable. Unlawful detention or deprivation or restriction of women’s
freedom of the person by other illegal means shall be prohibited; and unlawful body search of women shall be prohibited.

Article 35. Women’s right of life and health shall be inviolable. Drowning, abandoning or cruel infanticide in any manner of
female babies shall be prohibited; discrimination against or maltreatment of women who gave birth to female babies
or women who are sterile shall be prohibited; cruel treatment causing injury even death of women by superstition
or violence shall be prohibited; maltreatment or abandonment of aged women shall be prohibited.

Article 36. Abduction of and trafficking in, or kidnapping of women shall be prohibited; buying of women who are abducted and trafficked
in, or kidnapped shall be prohibited.

People’s governments and relevant departments must take timely measures to rescue women who are abducted and trafficked
in, or kidnapped. If such women have returned to their former places of residence, nobody may discriminate against
them, and the local people’s governments and relevant departments shall well settle the problems arising thereafter.

Article 37. Prostitution or whoring shall be prohibited.

It is prohibited for anyone to organize, force, seduce, shelter or introduce a woman to engage in prostitution
or employ or shelter a woman to engage in obscene activities with others.

Article 38. Women’s right of portrait shall be protected by law. The use of a woman’s portrait for profit-making purposes in advertisements,
trademarks, window display, books, magazines, etc., without the consent of the interested woman shall be prohibited.

Article 39. Women’s right of reputation and personal dignity shall be protected by law. Damage to women’s reputation or personal dignity
by such means as insult, libel and giving publicity to private affairs shall be prohibited.

CHAPTER VII RIGHTS AND INTERESTS RELATING TO MARRIAGE AND FAMILY

Article 40. The state shall guarantee that women enjoy equal rights with men in marriage and family.

Article 41. The state shall protect women’s right of self-determination in marriage. Interference with women’s
freedom of marriage or divorce shall be prohibited.

Article 42. When a wife terminates gestation as required by the family planning programme, her husband may not apply for a divorce
within six months after the operation; this restriction shall not apply in a case where the wife applies for a divorce,
or when the people’s court deems it necessary to accept the divorce application made by the husband.

Article 43. A woman shall enjoy equal rights with her spouse in possessing, utilizing, profiting from and disposing of the property
jointly possessed by the husband and wife according to law, which shall not be affected by the status of income of
either party.

Article 44. The state shall protect divorced women’s ownership of their houses.

At the time of divorce, the husband and the wife shall seek agreement regarding the disposition of their jointly
possessed houses; if they fail to reach an agreement, the people’s court shall make a judgment in accordance
with the actual circumstances of both parties and by taking into consideration the rights and interests of the wife
and their child (children), except as otherwise agreed upon by the two parties.

In a case where the husband and wife jointly rent a house or a room, the wife’s housing shall, at the time of divorce,
be solved according to the principle of taking into consideration the rights and interests of the wife and their child (children).

In a case where the husband and wife live in a house allocated by the unit to which the husband belongs, if the wife has
no housing to live in at the time of divorce, the husband shall help her in this regard whenever he can afford to.

Article 45. Both parents shall enjoy the equal right to guardianship of their minor child (children).

In a case where the father is deceased, incapacitated or under any other circumstances that make him unable to act as the
guardian of a minor child (children), nobody may interfere with the mother’s right of guardianship.

Article 46. At the time of divorce, if the wife becomes sterile because of the sterilization operation or any other reasons, the
problem to bring up the child (children) shall be so handled that, while to the advantage of the rights and
interests of the child (children), due consideration shall be given to the wife’s reasonable demands.

Article 47. Women have the right to child-bearing in accordance with relevant regulations of the state as well as the freedom
not to bear any child.

Where a couple of child-bearing age practise family planning according to the relevant regulations of the
state, the departments concerned shall provide safe and effective contraceptives and techniques, and ensure
the health and safety of the woman receiving any birth-control operation.

CHAPTER VIII LEGAL RESPONSIBILITY

Article 48. When a woman’s lawful rights and interests are infringed upon, she has the right to request the competent department concerned
for a disposition or bring a lawsuit in a people’s court according to law.

When a woman’s lawful rights and interests are infringed upon, she may file a complaint with a women’s organization,
which shall request the relevant department or unit to investigate and deal with the case so as to protect the lawful
rights and interests of the complainant.

Article 49. Where punishments are prescribed by other laws or regulations for the infringement upon the lawful rights and
interests of women in violation of the provisions of this Law, punishments prescribed in such laws or regulations shall
apply.

Article 50. Anyone who commits any of the following infringements upon the lawful rights and interests of a woman shall
be ordered to make corrections by his or her unit or by an organ at a higher level, and the person who is held
directly responsible may, in light of the specific circumstances, be subjected to administrative sanctions:

(1) evading, delaying or suppressing the investigation and disposition of a complaint, a charge or an exposure
regarding an infringement upon the rights and interests of a woman;

(2) refusing to employ women or raising the employment standards for women where women shall be employed in accordance with
the provisions of relevant laws or regulations;

(3) infringing upon women’s rights and interests by violating the principle of equality between men and women in
such aspects as allotment of housing, promotion in post or in rank, evaluation and determination of professional and technological
post_titles;

(4) dismissing female staff and workers by reason of their marriage, pregnancy, maternity leave, or baby-nursing;

(5) infringing upon women’s rights and interests by violating the principle of equality between men and women in the
allotment of responsibility farmland or grain ration farmland or the approval of housing sites; or

(6) infringing upon women’s rights and interests by violating the principle of equality between men and women in
such aspects as starting school, entering a higher school, job assignment upon graduation, conferment of academic degrees
or dispatch for study abroad.

Anyone who retaliates against a person making a complaint, a charge or an exposure regarding an infringement upon a
woman’s rights and interests shall be ordered to make corrections or be subjected to administrative sanctions
by his or her unit or an organ at a higher level. If a state functionary commits retaliation, which constitutes a
crime, the offender shall be investigated for criminal responsibility in accordance with the provisions in Article 146
of the Criminal Law.

Article 51. Anyone who employs or shelters any woman to engage in obscene activities with others shall be punished by applying
mutatis mutandis the provisions in Article 19 of the Regulations on Administrative Penalties for Public Security;
if the circumstances are so serious as to constitute a crime, the offender shall be investigated for criminal responsibility
by applying mutatis mutandis the provisions in Article 160 of the Criminal Law.

Article 52. Where an infringement upon a woman’s lawful rights and interests causes loss of property or other damage, the infringer
shall make due compensation or bear other civil liabilities according to law.

CHAPTER IX SUPPLEMENTARY PROVISIONS

Article 53. Relevant departments under the State Council may, on the basis of this Law, formulate relevant regulations, which shall be
submitted to the State Council for approval and then be implemented.

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

The people’s congresses of national autonomous areas may formulate regulations with appropriate adaptations or
supplements in accordance with the principles laid down in this Law and in light of the specific conditions
of the national women in respective areas. Regulations formulated by autonomous regions shall be submitted
to the Standing Committee of the National People’s Congress for the record; regulations formulated by autonomous
prefectures or autonomous counties shall be submitted to the standing committees of the people’s congresses
of the relevant provinces or autonomous regions for approval before entering into effect, and shall also be submitted
to the Standing Committee of the National People’s Congress for the record.

Article 54. This Law shall enter into force as of October 1, 1992.

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MEASURES FOR THE CONTROL OF CHINESE CITIZENS TRAVELLING TO OR FROM THE REGION OF TAIWAN

INTERIM PROVISIONS FOR THE CONTROL OF SHANGHAI METAL EXCHANGE

MEASURES FOR THE ADMINISTRATION OF THE STATE COUNCIL ON PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE IMPOSITION OF PUNISHMENTS IN RESPECT OF OFFENSES OF TAX EVASION AND REFUSAL TO PAY TAX

MEASURES GOVERNING THE PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

PROVISIONS ON THE IMPLEMENTATION OF THE INTERNATIONAL COPYRIGHT TREATIES

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING PORT SUPPLY TO FOREIGN AND CHINESE OCEANGOING VESSELS

MEASURES OF THE CUSTOMS OFFICE CONCERNING ADMINISTRATION OF GOODS, MEANS OF TRANSPORT, ARTICLES CARRIED BY INDIVIDUALS AND POSTAL ARTICLES LEAVING OR ENTERING THE YANGPU ECONOMIC DEVELOPMENT ZONE OF HAINAN PROVINCE

REGULATIONS FOR THE IMPLEMENTATION OF INTERNATIONAL COPYRIGHT TREATIES

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE TERRITORIAL SEA AND THE CONTIGUOUS ZONE

CIRCULAR OF THE STATE COUNCIL REGARDING THE FURTHER OPENING OF CHONGQING AND SOME OTHER CITIES

PROTECTION OF RIGHTS AND INTERESTS OF WOMEN

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CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7