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2000

REGULATIONS ON ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-02-25 Effective Date  1994-04-01  


Regulations of the People’s Republic of China on Administration of Foreign-capital Financial Institutions

Chapter I  General Provisions
Chapter II  Establishment and Registration
Chapter III  Business Scope
Chapter IV  Supervision and Administration
Chapter V  Dissolution and Liquidation
Chapter VI  Provisions of Penalties
Chapter VII  Supplementary Provisions

(Adopted at the 14th Executive Meeting of the State Council on

January 7, 1994, promulgated by Decree No.148 of the State Council of
the People’s Republic of China on February 25, 1994, and effective as of
April 1, 1994)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in order to meet the needs
of opening to the outside world and the economic development, strengthen
and perfect the administration of foreign-capital financial institutions.

    Article 2  The term “foreign-capital financial institutions”, referred
to in these Regulations, means the following financial institutions which
are established and engaged in business operations on approval within
Chinese territory in accordance with the relevant laws and regulations of
the People’s Republic of China:

    (1) foreign-capital banks with their head offices established within
Chinese territory (hereinafter referred to as “foreign bank”);

    (2) branches of foreign banks established within Chinese territory  
(hereinafter referred to as “foreign branch bank”);

    (3) banks established within Chinese territory with joint capital and
operation by foreign financial institutions and Chinese financial
institutions (hereinafter referred to as “joint bank”);

    (4) financial companies with their head offices established within
Chinese territory (hereinafter referred to as “foreign financial company”);
or

    (5) financial company established within Chinese territory with joint
capital and operation by foreign financial institutions and Chinese
financial institutions (hereinafter referred to as “joint financial
company”).

    The regions where foreign-capital financial institutions are established
shall be determined by the State Council.

    Article 3  Foreign-capital financial institutions shall abide by the
laws and regulations of the People’s Republic of China and shall do nothing
detrimental to the social and public interests of the People’s Republic of
China.

    The legitimate management activities and lawful rights and interests
of foreign-capital financial institutions shall be protected by the laws
of the People’s Republic of China.

    Article 4  The People’s Bank of China is the competent authority in
charge of administering and supervising foreign-capital financial
institutions; the branch institutions of the People’s Bank of China in the
regions, where foreign-capital financial institutions are established,
shall exercise day-to-day administration and supervision of foreign-capital
financial institutions in their own regions.
Chapter II  Establishment and Registration

    Article 5  The minimum amount of the registered capital of a foreign
bank or a joint bank shall be freely convertible currencies equivalent to
300 million Renminbi yuan; the minimum amount of the registered capital of
a foreign financial company or a joint financial company shall be freely
convertible currencies equivalent to 200 million Renminbi yuan; their
respective paid-in capital shall be no less than 50% of their respective
registered capital.

    A foreign branch bank shall be allocated as its operating funds by
its head office a free sum of freely convertible currencies equivalent to
not less than 100 million Renminbi yuan.

    Article 6  An applicant applying for the approval to set up a foreign
bank or a foreign financial company shall satisfy the following
requirements:

    (1) the applicant is a financial institution;

    (2) the applicant has a representative office of more than two years’
standing within Chinese territory;

    (3) the applicant possesses total assets of not less than US$ 10 billion
at the end of the year prior to the submission of such an application; and

    (4) in the home country or region of the applicant, there is a complete
system for financial administration and supervision.

    Article 7  An applicant applying for the approval to establish a
foreign branch bank shall satisfy the following requirements:

    (1) the applicant has a representative office of more than two years’
standing within Chinese territory;

    (2) the applicant possesses total assets of not less than US$ 20
billion at the end of the year prior to the submission of such an
application; and

    (3) in the home country or region of the applicant, there is a complete
system for financial administration and supervision.

    Article 8  Applicants applying for the approval to set up a joint
bank or a joint financial company shall satisfy the following requirements:

    (1) each party to the venture of a joint bank or a joint financial
company is a financial institution;

    (2) the foreign party to the venture has a representative office within
Chinese territory;

    (3) the foreign party to the venture possesses total assets of not less
than US$ 10 billion at the end of the year prior to the submission of such
an application; and

    (4) in the home country or region of the foreign party to the venture,
there is a complete system for financial administration and supervision.

    Article 9  For a foreign bank or a foreign financial company to be
established, the applicant shall submit to the People’s Bank of China an
application in writing and provide the following documents:

    (1) an application report for the establishment thereof, which shall
include the name of the intended foreign bank or foreign financial
company, the registered capital and the mount of the paid-in capital, and
the types of business operations the bank or company intends to engage in,
etc;

    (2) a feasibility study report;

    (3) the articles of association of the intended foreign bank or foreign
financial company;

    (4) the business licence copy approved and issued by the competent
authority concerned in the home country or region of the applicant;

    (5) the annual reports of the applicant for the three successive years
prior to the submission of such an application; and

    (6) other documents as required by the People’s Bank of China.

    Article 10  For a foreign branch bank to be established, the head
office of the foreign bank concerned shall submit to the People’s Bank of
China an application in writing and the following documents:

    (1) an application report duly signed by the legal representative, which
shall include the name of the intended foreign branch bank, the free
amount of operating funds allocated by the head office, and the types of
business operations the foreign branch bank intends to engage in, etc;

    (2) the business licence copy approved and issued by the competent
authority concerned in the home country or region of the applicant;

    (3) the annual reports of the applicant for the three successive years
prior to the submission of such an application; and

    (4) other documents as required by the People’s Bank of China.

    Article 11  For a joint bank or a joint financial company to be
established, all the parties thereof shall jointly submit to the People’s
Bank of China an application in writing and provide the following
documents:

    (1) an application report for the establishment thereof, which shall
include the name of the intended joint bank or joint financial company,
the name of each investing party thereto, the amount of the registered
capital and paid-in capital, the respective percentage of contributions by
the parties, and the types of business operations the joint bank or the
joint financial company intends to engage in, etc;

    (2) a feasibility study report;

    (3) the contract of joint capital and operation, and the articles of
association of the intended joint bank or the joint financial company;

    (4) the respective business licences copies of all the parties hereto
approved and issued by the competent authorities concerned in the home
country or region of each of the applicants;

    (5) annual reports of each of the parties for the successive years prior
to the submission of such an application; and

    (6) other documents as required by the People’s Bank of China.

    Article 12  Any of the documents prescribed in Article 9, 10 and 11 of
these Regulations, with the exception of the annual reports, if written in
foreign language, shall be submitted together with a Chinese translation
thereof.

    Article 13  After the People’s Bank of China has preliminarily
examined and approved the application for establishing the foreign-capital
financial institution, an official application form shall be issued to the
applicant(s). If the applicant(s) don’t receive the official application
form within 90 days of the submission of its application, the application
thereof shall be deemed to have been rejected.

    Article 14  The applicant(s) shall, within 60 days of receipt of the
official application form, submit to the People’s Bank of China for
examination and approval, the application having been filled in together
with the following documents:

    (1) a list of the principal persons in charge of the intended
foreign-capital financial institution and their respective  curriculum
vitae;

    (2) powers of attorney for the intended principal persons in charge of
the foreign-capital financial institution;

    (3) where a foreign branch bank is to be established, letters of
undertaking issued by the head office assuming for its branch bank the
obligations for tax payment and debt repayment; and

    (4) other documents as required by the People’s Bank of China.

    Article 15  A foreign-capital financial institution shall, within 30
days of receipt of the certificate of approval issued by the People’s Bank
of China, raise in full paid-in capital or operating funds, which shall be
transferred into Chinese territory and verified by the Chinese registered
accountant(s), then shall go through the procedures of registration with
the administrative department for industry and commerce in accordance with
the law and shall, within 30 days of commencement of business operations,
go through the procedures for tax registration with the tax authority in
accordance with the law.

    Article 16  A foreign-capital financial institution shall, within 30
days following the day on which the establishment is examined and approved,
apply to the State Administration of Foreign Exchange Control for the
approval and issuance of a Licence to Engage in Foreign Exchange Business
Operations.
Chapter III  Business Scope

    Article 17  A foreign bank, a foreign branch bank or a joint bank may,
in accordance with the business scope approved by the People’s Bank of
China, engage in part or all of the following business operations:

    (1) deposits in foreign exchange;

    (2) loans in foreign exchange;

    (3) discounts of negotiable instruments in foreign exchange;

    (4) investments approved in foreign exchange;

    (5) remittances in foreign exchange;

    (6) guarantees in foreign exchange;

    (7) import and export settlement;

    (8) buying and selling of foreign exchange on its own account or on
customer’s account;

    (9) acting as an agent for the exchange of foreign currencies and for
the cashing of negotiable instruments in foreign exchange;

    (10) acting as an agent for payments against credit cards in foreign
currencies;

    (11) custody and safe deposit box services;

    (12) credit and financial standing investigation and consultancy
services; or

    (13) the services approved in domestic currency and other services
approved in foreign currencies.

    Article 18  A foreign financial company or a joint financial company
may, in accordance with the business scope approved by the People’s Bank
of China, engage in part or all of the following business operations:

    (1) deposits in foreign exchange with each deposit amounting to not
less than US$ 100,000 for period of not less than three months;

    (2) loans in foreign exchange;

    (3) discounts of negotiable instruments in foreign exchange;

    (4) investments approved in foreign exchange;

    (5) guarantees of foreign exchange;

    (6) buying and selling of foreign exchange on its own account or on
customer’s account;

    (7) credit and financial standing investigation and consultancy services;

    (8) trust in foreign exchange; or

    (9) services approved in domestic currency and other services approved
in foreign currencies.

    Article 19  The term “deposits in foreign exchange” referred to in
this Chapter, means the following deposits denominated in foreign
currencies:

    (1) interbank deposits inside and outside China;

    (2) non-interbank deposits outside China;

    (3) deposits by foreigners inside China;

    (4) deposits by overseas Chinese and by Hong Kong, Macao and Taiwan
compatriots;

    (5) deposits by enterprises with foreign investment;

    (6) deposits of loans granted by foreign-capital financial institutions
to enterprises other than those with foreign investment; or

    (7) other kinds of deposits approved in foreign exchange.

    Article 20  The term “remittances in foreign exchange” referred to in
this Chapter, means the inward remittances from abroad and outward
remittances from China by enterprises with foreign investment, foreigners,
overseas Chinese and Hong Kong, Macao and Taiwan compatriots.

    Article 21  The term “import and export settlement” referred to in
this Chapter, means the import and export settlement, which is handled by
foreign banks, foreign branch banks or joint banks, by enterprises with
foreign investment, and the export settlement approved by enterprises
other than those with foreign investment and the import settlement under
the heading of loans.
Chapter IV  Supervision and Administration

    Article 22  The interest rates of deposits and loans and various
service charges of a foreign-capital financial institution shall be
determined by itself in accordance with the relevant provisions of the
People’s Bank of China.

    Article 23  A foreign-capital financial institution which engages in
deposit business operations shall place deposit reserves with the local
branch institution of the People’s Bank of China. The ratios of the
reserves shall be determined by the People’s Bank of China and shall be
adjusted in accordance with the actual needs. Such deposit reserves shall
be interest-free.

    Article 24  30% of the operating funds of a foreign branch bank shall
be put in the form of interest-bearing assets as prescribed by the People’s
Bank of China, which shall include the afore said funds deposited in a bank
or banks designated by the People’s Bank of China.

    Article 25  The total assets of a foreign bank, a joint bank, a foreign
financial company or a joint financial company shall not exceed 20 times
the sum total of its paid-in capital and its total reserves.

    Article 26  The total amount of loans which a foreign bank, a joint
bank, a foreign financial company or a joint financial company grants to
one of any one enterprise and its associated enterprises shall not exceed
30% of the sum total of its paid-in capital and its total reserves, with
the exception of loans specially approved by the People’s Bank of China.

    Article 27  The total amount of investment by a foreign bank, a joint
bank, a foreign financial company or a joint financial company shall not
exceed 30% of the sum total of its paid-in capital and its total reserves,
with the exception of investment in financial institutions approved by the
People’s Bank of China.

    Article 28  The fixed assets owned by a foreign bank, a joint bank, a
foreign financial company or a joint financial company shall not exceed 40%
of the sum total of its paid-in capital and its total reserves.

    Article 29  A foreign-capital financial institution shall insure the
mobility of its assets. The specific measures thereof shall be formulated
by the People’s Bank of China separately.

    Article 30  The total amount of deposits by domestic sources in a
foreign-capital financial institution shall not exceed 40% of its total
assets.

    Article 31  A foreign-capital financial institution shall calculate and
maintain reserves for bad debt in accordance with the relevant provisions.

    Article 32  A foreign bank, a joint bank, a foreign financial company
or a joint financial company shall, where its amount of paid-in capital is
less than the amount of the registered capital, allocate 25% of its after-
tax profit as supplementary capital until the sum total of its paid-in
capital and its total reserves is equal to its registered capital.

    Article 33  A foreign-capital financial institution shall engage at
least one Chinese citizen as a member of its senior managerial body.

    Article 34  A foreign-capital financial institution shall appoint
Chinese registered accountants and such an appointment shall be subject
to confirmation by the local branch bank of the People’s Bank of China.

    Article 35  A foreign-capital financial institution shall, in respect
of any one of the following items, apply to the People’s Bank of China
for approval and go through the relevant procedures of registration to
the administrative department for industry and commerce in accordance
with the law:

    (1) establishment of a branch office;

    (2) adjustment and transfer of the registered capital or increase and
decrease of the operating funds;

    (3) change of the name of the institution or the business site; or

    (4) change of members of the senior managerial body.

    Article 36  A foreign-capital financial institution shall submit its
financial statements and relevant documents to the People’s Bank of China
and its relevant branch office in accordance with the relevant provisions.

    Article 37  The People’s Bank of China and its relevant branch office
shall have the right to examine and audit the management and financial
status of a foreign-capital financial institution.
Chapter V  Dissolution and Liquidation

    Article 38  If a foreign-capital financial institution is to terminate
voluntarily its business activities, it shall, 30 days prior to the date
of termination thereof, submit an application in writing to the People’s
Bank of China and shall, after such termination is approved by the
People’s Bank of China, effect its dissolution and liquidation.

    Article 39  In the event that a foreign-capital financial institution
should become insolvent, the People’s Bank of China may order it to
suspend its business and to clear its liabilities within a prescribed
period of time. If such an institution wishes to resume its business after
recovering its solvency for clearing its liabilities within the prescribed
period of time, it shall apply to the People’s Bank of China for restarting
its business. If such an institution does not recover its solvency
exceeding the prescribed period of time, it shall effect its liquidation.

    Article 40  Where a foreign-capital financial institution which is to
terminate because of dissolution, being disbanded in accordance with the
law or declaration of bankruptcy, its specific liquidation shall be
effected in accordance with the relevant provisions of laws and
regulations of the People’s Republic of China.

    Article 41  Upon completion of liquidation, a foreign-capital financial
institution shall, within the legal period of time, go through the
procedures with the original registration authority to nullify its
registration.
Chapter VI  Provisions of Penalties

    Article 42  If, in violation of the provisions in Chapter II of these
Regulations, a foreign- capital financial institution is established
without authorization, the People’s Bank of China shall ban it and
confiscate its illegal earning, and may impose a fine in foreign exchange
equivalent to 50,000 to 100, 000 Renminbi yuan.

    Article 43  If, in violation of the provisions in Chapter III of
these Regulations, a foreign-capital financial institution engaged in
business operations beyond the authorized scope, the People’s Bank of
China or its relevant branch office shall order it to suspend these
unauthorized business activities, confiscate the illegal earning derived
therefrom, and may impose a fine in foreign exchange equivalent to 10,000
to 50,000 Renminbi yuan.

    Article 44  If, in violation of the relevant provisions in Chapter
IV of these Regulations, a foreign-capital financial institution engages
in business operations, the People’s Bank of China or its relevant branch
bank shall have right to order it to make corrections, adjustments or
make up the deficiency, and may impose a fine in foreign exchange
equivalent to 5,000 to 30,000 Renminbi yuan.

    Article 45  If, in violation of the relevant provisions in Chapter IV
of these Regulations, a foreign-capital financial institution failed to
submit its financial statements and the relevant documents required
within the prescribed period of time, the People’s Bank of China or its
relevant branch office shall give a warning or circulate a notice of
reprimand, and order it make up for the submission thereof within a
prescribed period of time, and may impose a fine in foreign exchange
equivalent to 3,000 to 20,000 Renminbi yuan.

    Article 46  Where a foreign-capital financial institution violates
the provisions of these Regulations with serious circumstances, in
addition to penalties under Article 43, 44 and 45 in this Chapter, the
People’s Bank of China may order it to suspend its business operations
and even revoke its business licence.

    Article 47  If a foreign-capital financial institution violates other
laws or regulations of the People’s Republic of China, the relevant
competent authorities shall deal with such cases according to law.
Chapter VII  Supplementary Provisions

    Article 48  These Regulations shall apply mutatis mutandis to
financial business institutions which are established and operated within
the territory by Hong Kong, Macao and Taiwan financial institutions.

    Article 49  Measures for the administration of the resident
representative offices of foreign financial institutions in China shall
be formulated separately by the People’s Bank of China.

    Article 50  The People’s Bank of China shall be responsible for the
interpretation of these Regulations and shall formulate rules for the
implementation of these Regulations.

    Article 51  These Regulations shall enter into force on April 1,
1994. Regulations of the People’s Republic of China for the Administration
of Foreign-Capital Banks and Chinese-Foreign Equity Joint Banks in the
Special Economic Zones promulgated by the State Council on April 2, 1985
and Measures for the Administration of Foreign-Capital Financial
Institutions and Chinese-Foreign Equity Joint Financial institutions in
Shanghai Municipality approved by the State Council on September 7, 1990
and promulgated by the People’s Bank of China on September 8, 1990 shall
be annulled simultaneously.





CIRCULAR OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE INTERIM REGULATIONS ON THE APPLICATION OF VALUE-ADDED TAX, CONSUMPTION TAX, BUSINESS TAX, ETC., TO ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Council

Circular of the State Council on Several Issues Concerning the Interim Regulations on the Application of Value-added Tax, Consumption
Tax, Business Tax, Etc., to Enterprises with Foreign Investment and Foreign Enterprises

GuoFa [1994] No.10

February 22, 1994

According to the Decision of the Standing Committee of the National People’s Congress Concerning the Application of Interim Regulations
on Such Taxes As Value-added Tax, Consumption Tax and Business Tax to Foreign Investment Enterprises and Foreign Enterprises (hereinafter
referred to as “the Decision”) as examined and approved at the Fifth Meeting of the Standing Committee of the Eighth National People’s
Congress, several issues such as the categories of taxes applicable to enterprises with foreign investment and foreign enterprises
and so on are hereby notified as follows:

1.

Problems Concerning the Categories of Taxes Applicable to Enterprises with Foreign Investment and Foreign Enterprises

According to provisions of “the Decision”, the following interim regulations, in addition to “Interim Regulations of the People’s
Republic of China on Value-added Tax”, “Interim Regulations of the People’s Republic of China on Consumption Tax”, “Interim Regulations
of the People’s Republic of China on Business Tax” and “Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises”, shall be applicable to enterprises with foreign investment and foreign enterprises:

(1)

“Interim Regulations of the People’s Republic of China on Land Value-added Tax”, promulgated on December 13, 1993 by the State Council;

(2)

“Interim Regulations of the People’s Republic of China on Resource Tax”, promulgated on December 25, 1993 by the State Council;

(3)

“Interim Regulations of the People’s Republic of China on Stamp Tax”, promulgated on August 6, 1988 by the State Council;

(4)

“Interim Regulations Concerning Tax on Slaughtering Animals”, promulgated on December 19, 1950 by the Government Administration Council
of the Central People’s Government;

(5)

“Interim Regulations Concerning Urban Real Estate Tax”, promulgated on August 8, 1951 by the Government Administration Council of
the Central People’s Government;

(6)

“Interim Regulations Concerning the Tax of License Plate Usage of Vehicle and Vessel”, promulgated on September 13, 1951 by the Government
Administration Council of the Central People’s Government; and

(7)

“Interim Regulations Concerning Deed Tax”, promulgated on April 3, 1950 by the Government Administration Council of the Central People’s
Government.

With the progress of taxation system reform, the State Council shall be revising and making other interim regulations on taxation,
and enterprises with foreign investment and foreign enterprises shall accordingly comply with the provisions of the relevant regulations.

2.

Problems Concerning Handling of the Increased Tax Burden of Enterprises with Foreign Investment Due to the Imposition of Value-Added
Tax, Consumption Tax and Business Tax

(1)

As to an enterprise with foreign investment approved to be established before December 31, 1993, where its tax burden increases as
a result of the imposition of value-added tax, consumption tax and business tax, the enterprise may, upon application to and with
the approval of the tax authorities, have a refund on the excess tax payment due to the increased tax burden within the approved
operation period, with a maximum limit of not exceeding five years; if no operation period has been specified, the enterprise may,
upon application to and with the approval of the tax authorities, have a refund on the excess tax payment as mentioned above within
a period of not exceeding five years.

(2)

Where an enterprise with foreign investment pays both value-added tax and consumption tax, the payment exceeding the original tax
burden shall, according to the proportion of the paid value-added tax to the paid consumption tax, be refunded respectively.

(3)

Where the products manufactured by an enterprise with foreign investment are to be exported directly or through selling to an export
enterprise, that enterprise with foreign investment may, according to the provisions of “Interim Regulations of the People’s Republic
of China on Value-Added Tax”, handle the refundment affairs at one stop by producing the export declaration form and the tax payment
receipt.

(4)

The refundment of the excess tax payment applied for by an enterprise with foreign investment shall, in principle, be conducted at
one time after the end of the year; where the tax burden increases are comparatively higher, the enterprises concerned may apply
for the refund quarterly in advance, and the clearance shall be done after the end of the year.

(5)

The State Administration of Taxation and its affiliated establishments shall be responsible for dealing with the refundment affairs
relating to the value-added tax and the consumption tax, and the state treasuries at all levels shall conduct examination and verification
seriously and make strict checks. The computation of the refund, as well as the procedures of the application for refund and the
approval thereof, shall be prescribed by the State Administration of Taxation separately.

(6)

The refundment affairs relating to the business tax shall be prescribed by the people’s governments of the provinces, autonomous regions
or municipalities directly under the Central Government.

3.

Problems Concerning Taxation on Chinese-Foreign Cooperative Exploitation of Petroleum Resources

Crude oil and natural gas exploited by a Chinese-foreign cooperative oil field shall be taxed of value-added tax in kind at a rate
of 5%, and the royalties shall be levied in accordance with the relevant provisions in effect, with temporary exemption from the
resource tax. The input tax shall not balance the value-added tax payable. Where crude oil or natural gas is exported, there shall
be no refund of tax.

Self-operative offshore oil field of China Offshore Petroleum Company shall comply with the above provisions mutatis mutandis.

This Circular shall enter into force as of January 1, 1994.



 
The State Council
1994-02-22

 






THE BUSINESS REGULATIONS OF CHINA OCEAN SHIPPING AGENCY

METEOROLOGY LAW

Meteorology Law of the People’s Republic of China

     (adopted at the 12th Meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China on
October 31, 1999, is hereby promulgated and shall go into effect as of January 1, 2000.)

Chapter I General Provisions

   Article 1 This Law is enacted for the purpose of developing meteorological service, standardizing meteorological activities, ensuring the accurate
and timely issue of meteorological forecast, preventing meteorological disasters, properly exploiting and effectively protecting
climatic resources, and providing meteorological services for economic development, national defense, social development and people’s
well-being.

   Article 2 This Law shall be observed by units and individuals that engage in meteorological observation, forecasting, services, prevention
of meteorological disasters, exploitation of climatic resources and research in meteorological science and technology, which are
carried out in the territory of the People’s Republic of China and the sea areas under the jurisdiction of the People’s Republic
of China.

   Article 3 Meteorological service is a basic public welfare service for economic development, national defense, social development and people’s
well being. Public welfare meteorological services shall be the first priority in meteorological work.

People’s governments at or above the county level shall strengthen their leadership over and coordination of meteorological activities,
and incorporate meteorological service into the national economic and social development plans and fiscal budgets of the central
and local governments in order to ensure their full function in the service of the general public, in government decision making
and in economic development. Local meteorological projects initiated by local people’s governments at or above the county level to
meet the needs of local social and economic development shall mainly be financed by the said governments themselves. On condition
that unpaid public welfare meteorological services are guaranteed, meteorological offices and stations may provide paid meteorological
services in accordance with law.

   Article 4 Meteorological offices and stations subordinate to the competent meteorological departments of counties or cities shall chiefly serve
agricultural production, providing, on their own initiative and in a timely manner, public welfare meteorological information services
needed by local agricultural production.

   Article 5 The competent meteorological department under the State Council is responsible for meteorological work nationwide. Local competent
meteorological departments at different levels are responsible for meteorological work in their own administrative regions under
the leadership of the competent meteorological departments at a higher level and the people’s governments at the corresponding level.

Meteorological offices and stations subordinate to the other relevant departments under the State Council or under the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall be subject to guidance, supervision
and professional management by the competent meteorological departments at the same level.

   Article 6 Units and individuals that engage in meteorological activities shall comply with the meteorological technical standards, rules and
regulations formulated by the State.

   Article 7 The State encourages and supports research in and popularization of meteorological science and technology, trains meteorological
professionals, spreads the use of advanced meteorological science and technology, protects the achievements scored in meteorological
science and technology, strengthens international cooperation and exchange in the field of meteorology and develops the meteorological
information industry, all in order to improve meteorological work. People’s governments at various levels shall pay attention to
and support the construction and operation of the meteorological offices and stations in areas inhabited by ethnic peoples, in outlying
and poverty-stricken areas, in areas where life is hard, and on islands. Units and individuals that make outstanding contributions
in meteorological work shall be rewarded.

   Article 8 Meteorological activities that organizations and individuals of other countries wish to conduct in the territory of the People’s
Republic of China and the sea areas under the jurisdiction of the People’s Republic of China shall be subject to approval by the
competent meteorological department under the State Council in conjunction with relevant departments.

Chapter II Construction and Management of Meteorological Facilities

   Article 9 The competent meteorological department under the State Council shall make arrangements for relevant departments to work out plans
for the construction of key meteorological facilities including meteorological observation instrumentation, transmission devices
dedicated to meteorological information and specialized large meteorological equipment. These plans shall be submitted to the State
Council for approval before they are implemented. Any readjustment or modification of the plans shall be submitted to the State Council
for approval. Plans for the construction of meteorological facilities shall be drawn up in conformity with the principles of a reasonable
layout, efficient utilization, and full consideration of both immediate and future needs, so as to avoid duplicated construction.

   Article 10 Before the proposals and feasibility reports for the construction of key meteorological facility projects are submitted for approval,
these projects shall, depending on the limits of authority for examination and approval of such projects, be subject to examination
and agreement by the competent meteorological department under the State Council, or by the competent meteorological departments
of provinces, autonomous regions, or municipalities directly under the Central Government.

   Article 11 The State protects meteorological facilities in accordance with law. No organizations or individuals may seize, damage or destroy
meteorological facilities, or relocate them without authorization. In cases where meteorological facilities are damaged or destroyed
due to force majeure, the local people’s governments shall take emergency measures to have them repaired or replaced, in order to
ensure their normal operation.

   Article 12 No organizations or individuals may relocate meteorological offices or stations without legal approval. Where it is definitely necessary
to relocate any national reference climatological stations or basic synoptic stations for the implementation of city planning or
the construction of key national projects, the matter shall be subject to approval by the competent meteorological department under
the State Council. Where it is necessary to relocate other meteorological offices or stations, the matter shall be subject to approval
by the competent meteorological department of a province, autonomous region or municipality directly under the Central Government.
The unit that needs such construction shall bear the expenses for the relocation and reconstruction.

   Article 13 Specialized meteorological equipment shall meet the technical requirements specified by the competent meteorological department under
the State Council and shall be subject to examination by the said department and its acceptance as qualified. No equipment that is
not examined or accepted as qualified may be applied to meteorological operations.

   Article 14 Instruments for meteorological measurement shall be subject to verification by the institutions for verification of such instruments
in accordance with the relevant provisions of the Metrology Law of the People’s Republic of China. No meteorological measurement
instruments that are not verified, that are disqualified, or whose terms of validity have expired may be used. The competent meteorological
department under the State Council and the competent meteorological departments of provinces, autonomous regions and municipalities
directly under the Central Government may, where necessary, introduce standard instruments for meteorological measuring. The highest
standard for each kind of measuring instruments shall be put into use only after it is tested and found to be qualified in accordance
with the provisions of the Metrology Law of the People’s Republic of China.

Chapter III Meteorological Observation

   Article 15 Meteorological offices and stations subordinate to competent meteorological departments at various levels shall, in accordance with
the regulations set by the competent meteorological department under the State Council ? take meteorological observation and report
the collected data to the competent meteorological departments concerned. No meteorological observation may be discontinued without
approval by the competent meteorological department at a higher level. The competent meteorological department under the State Council
and the local competent meteorological departments concerned shall, in accordance with relevant State regulations, release the observed
basic meteorological data at appropriate intervals.

   Article 16 Meteorological offices and stations subordinate to other relevant departments under the State Council or under the people’s governments
of provinces, autonomous regions or municipalities directly under the Central Government, as well as other organizations or individuals
that engage in meteorological observation shall, in accordance with relevant State regulations, report the observed meteorological
data to the competent meteorological department under the State Council or to the competent meteorological departments of provinces,
autonomous regions or municipalities directly under the Central Government. The competent meteorological departments at various levels
shall, under the principles of sharing and joint use of meteorological data and in accordance with relevant State regulations, exchange
relevant meteorological information with other units that engage in meteorological work.

Article17 All drilling platforms located in inland or territorial waters of the People’s Republic of China or in the sea areas under
the jurisdiction of the People’s Republic of China, and aircraft and ocean going vessels of Chinese nationality navigating international
lines shall, in accordance with relevant State regulations, take meteorological observation and report the observed data.

Article18 Where meteorological observation data other than the basic ones need to be kept secret, they shall be classified into different
categories. The categories shall be altered and the data shall be declassified and used in accordance with the provisions of the
Law of the People’s Republic of China on Guarding State Secrets.

Article19 The State protects the environs for meteorological observation in accordance with law. All organizations and individuals
shall have the obligation to protect such environs.

Article20 The following acts jeopardizing the environs for meteorological observation are prohibited placing obstacles or conducting
explosion or quarry operations within the protected environs for meteorological observation; installing, within the protected environs
for meteorological observation, high frequency electromagnetic radiation devices which impair the performance of the meteorological
measuring instruments; and other acts that impair meteorological observation within the protected environs for such observation.
The criteria for delimiting protected environs for meteorological observation shall be prescribed by the competent meteorological
department under the State Council. People’s governments at all levels shall, in accordance with the statutory criteria, delimit
protected environs for meteorological observation and incorporate them into city planning or into village or town planning.

   Article 21 When building, expanding or renovating construction projects, the constructors shall avoid jeopardizing the environs for meteorological
observation. Where it is really impossible to avoid jeopardizing the observation environs of national reference climatological stations
or basic synoptic stations ? the constructors shall first ask for permission of the competent meteorological department under the
State Council, and where jeopardizing of such environs of other meteorological offices or stations cannot be avoided, the constructors
shall first ask for permission of the competent meteorological departments of provinces autonomous regions or municipalities directly
under the Central Government. No construction may be started until appropriate measures are taken.

Chapter IV Meteorological Forecast and Severe earlier Warning

   Article 22 The State applies a unified system for the issue of public meteorological forecast and severe weather warning. Meteorological offices
and stations subordinate to the competent meteorological departments at different levels shall, in compliance with their functions
and duties, issue to the community public meteorological forecast and severe weather warning, with timely supplements or corrections
added as the weather changes. No other organizations or individuals may issue to the community such forecast or warning. Meteorological
offices and stations subordinate to other relevant departments under the State Council or under the people’s governments of provinces,
autonomous regions or municipalities directly under the Central Government may issue specialized meteorological forecast to be used
within the frame work of their departments. The competent meteorological departments at different levels and the meteorological offices
and stations subordinate to them shall issue public meteorological forecast and severe weather warning with improved accuracy, timeliness
and service.

   Article 23 Where necessary, meteorological offices and stations subordinate to the competent meteorological departments at various levels shall
issue specialized meteorological forecasts for agriculture, urban environment, classified fire risks, etc. and shall provide meteorological
services in cooperation with the military meteorological department to meet the need of national defense.

   Article 24 Radio and television stations at various levels and news papers designated by people’s governments at the provincial level shall
arrange particular timeslots or space every day for public meteorological forecast and/or severe weather warning. Meteorological
offices and stations subordinate to the competent meteorological departments at different levels shall guarantee the quality of the
meteorological forecast programs they have prepared. Before making any changes in the timeslots for broadcasting meteorological forecast,
the radio and television stations shall first seek consent of the meteorological offices or stations concerned. Any severe weather
warning or supplementary or corrected forecast that has a vital bearing on the national economy and people’s well being shall promptly
be added or inserted into other ongoing programs.

   Article 25 When the media, including radio, television, newspaper and telecommunication, issue to the community public meteorological forecast
or severe weather warning, they shall use the latest meteorological information provided by a meteorological office or station subordinate
to a competent meteorological department, while indicating the time of issue and the name of the office or station. Part of the revenues
from the distribution of meteorological information shall be drawn to support the development of meteorological service.

   Article 26 Information industry departments shall work closely with the competent meteorological departments to ensure unblocked meteorological
telecommunication for the accurate and timely dissemination of meteorological information, forecast and severe weather warning. Wireless
frequencies and channels specified for meteorological use are protected by the State. No organizations or individuals may occupy
or interfere with them.

Chapter V Prevention of Meteorological Disasters

   Article 27 People’s governments at or above the county level shall improve their monitoring and warning systems for meteorological disasters,
make arrangements for relevant departments to work out plans for prevention of meteorological disasters, and take effective measures
to increase the capability of preventing such disasters. Relevant organizations and individuals shall comply with the directions
given and arrangements made by the people’s governments, and shall make a success of prevention of meteorological disasters.

   Article 28 Competent meteorological departments at all levels shall make arrangements for joint monitoring and forecast of significant weather
events among regions or departments, propose timely measures for preventing meteorological disasters and make assessment of severe
weather disasters, which shall serve as the decision making basis for the people’s governments at the corresponding levels to arrange
prevention of meteorological disasters. Meteorological offices and stations subordinate to the competent meteorological departments
at different levels shall improve their monitoring and forecast of severe weather which may adversely affect the local community,
and promptly report to the competent meteorological departments concerned. The meteorological offices and stations subordinate to
other departments and the units related to the monitoring and forecast of severe weather shall, without delay, provide the competent
meteorological departments with the observed meteorological information and the monitored information on hydrological conditions,
storm surge, etc. that are needed for the monitoring and forecast of severe weather.

   Article 29 Local people’s governments at or above the county level shall, in light of the need for preventing meteorological disasters, work
out plans for the purpose and, on the basis of the meteorological information provided by the competent meteorological departments,
make arrangements for carrying out such plans, in order to avert or mitigate meteorological disasters.

   Article 30 People’s governments at or above the county level shall enhance their leadership over weather modification and, in light of actual
conditions, carry out work in this field in an organized and planned way. The competent meteorological department under the State
Council shall more efficiently administer and guide weather modification throughout the country. Local competent meteorological departments
at all levels shall make plans for weather modification operations and, under the leadership and coordination of the people’s governments
at the corresponding levels, administer, guide and arrange for such operations. Relevant departments shall, in compliance with their
functions and duties and division of responsibilities, cooperate with the competent meteorological departments in weather modification.
Organizations engaging in weather modification operations shall meet the qualifications prescribed by the competent meteorological
departments of provinces, autonomous regions or municipalities directly under the Central Government, use the operational equipment
which meets the specifications set by the competent meteorological department under the State Council, and conform to the operational
rules.

   Article 31 Competent meteorological departments at various levels shall strengthen the organization and management of preventive efforts against
disasters caused by thunderstorm and lightning and, together with other relevant authorities, inspect the lightning protection devices
installed on the buildings, structures and other facilities likely to be struck by lightning. The installed lightning protection
devices shall meet the operational specifications set by the competent meteorological department under the State Council.

Chapter VI Exploitation and Protection of Climatic Resources

   Article 32 The competent meteorological department under the State Council is in charge of the overall survey and zoning of climatic resources
nationwide, coordinates efforts in climate monitoring, analysis and assessment and in the monitoring of the atmosphere composition
that may cause climate deterioration, and issues, at regular intervals, bulletins on climatic status.

   Article 33 Local people’s governments at or above the county level shall, in light of the characteristics of the local climatic resources, draw
up plans for the fields of endeavor in which to exploit the climatic resources and for the key climatic resources to be protected.
Local competent meteorological departments shall, on the basis of the plans drawn up by the people’s governments at the corresponding
levels, make proposals to the said people’s governments and relevant departments at the corresponding levels regarding the exploitation
and protection of climatic resources and the extensive application of positive results yielded from the zoning of climatic resources.

   Article 34 Competent meteorological departments at all levels shall arrange for climatic feasibility studies relating to city planning, key
national construction projects, major regional economic development projects and large projects for the exploitation of climatic
resources such as solar and wind energy. When assessing the impact of construction projects on atmospheric environment, the units
that are qualified for making such assessment shall use the meteorological data which are provided or examined by the competent meteorological
departments.

Chapter VII Legal Responsibility

   Article 35 Any unit or individual that, in violation of the provision of this Law, commits one of the following acts shall be ordered by the
relevant competent meteorological department within the limits of its authority to discontinue the violation and put the facilities
and environs back to their former state or take other remedial measures within a time limit, and it/he may be fined not more than
50,000 yuan. If losses are caused, the violator shall bear the compensation responsibility in accordance with law. If the violation
constitutes a crime, criminal responsibility shall be investigated in accordance with law:

(1) seizing, damaging, destroying, or relocating without approval meteorological facilities;

(2) engaging in activities within the limits of the protected environs for meteorological observation, to the detriment of the environs.
Any unit or individual that illegally approves the occupation of land within the limits of the protected environs for meteorological
observation or that erects buildings or installations on illegally occupied land within the said limits shall be punished in accordance
with the relevant provisions of the City Planning Law of the People’s Republic of China or the Land Administration Law of the People’s
Republic of China.

   Article 36 Any unit or individual that, in violation of the provisions of this Law, causes harm by employing specialized equipment which does
not meet the technical specifications shall be ordered by the relevant competent meteorological department within the limits of its
authority to make rectification and be given a disciplinary warning and may also be fined not more than 50 000 yuan.

   Article 37 Any unit or individual that, in violation of the provisions of this Law, installs lightning protection devices which do not meet
the operational specifications shall be ordered by the relevant competent meteorological department to make rectification and be
given a disciplinary warning. If by using such devices it/he causes losses to others, it/he shall bear compensation responsibility
in accordance with law.

   Article 38 Any unit or individual that, in violation of the provisions of this Law, commits one of the following acts shall be ordered by the
relevant competent meteorological department within the limits of its authority to make rectification and be given a disciplinary
warning and may also be fined not more than 50 000 yuan:

(1) a unit or individual that unlawfully issues to the community public meteorological forecast or severe weather warning

(2) when distributing to the community public meteorological forecast or severe weather warning, the media including radio, television,
newspaper and telecommunication fail to use the latest meteorological information provided by the meteorological offices or stations
subordinate to the competent meteorological departments; or

(3) when assessing the impact of construction projects on atmospheric environment, the unit that is in charge of making such assessment
fails to use the meteorological data which are provided or examined by the competent meteorological department.

   Article 39 In violation of the provisions of this Law, when carrying out weather modification operations, the organization that does not meet
the qualifications prescribed by the competent meteorological department of a province, autonomous region or municipality directly
under the Central Government conducts weather modification operations or, when doing so, uses the equipment which does not meet the
technical specifications set by the competent meteorological department under the State Council shall be ordered by the relevant
competent meteorological department within the limits of its authority to make rectification and be given a disciplinary warning
and may also be fined not more than 100 000 yuan. If it causes losses to others, it shall bear compensation responsibility in accordance
with law. If the violation constitutes a crime, criminal responsibility shall be investigated in accordance with law.

   Article 40 Staff members working in the competent meteorological departments at different levels or meteorological offices or stations subordinate
to the departments who neglect their duties and consequently fail to make important public meteorological forecast or to send out
severe weather warning, or make wrong forecast or send out wrong warning, or who lose or damage the raw meteorological observation
data or fabricate meteorological data shall be given administrative sanctions in accordance with law. If they cause heavy losses
to State interests or people’s lives or property, which is serious enough to constitute a crime, they shall be investigated for criminal
responsibility in accordance with law.

Chapter VIII Supplementary Provisions

   Article 41 For the purpose of this Law, the definitions of the following terms are:

(1)Meteorological facilities include meteorological observation instrumentation, transmission devices dedicated to meteorological
information and specialized large meteorological equipment.

(2)Meteorological observation means systematic observation and measurement of the atmospheric physical processes, phenomena and chemical
properties in the atmosphere and surface layer by scientific and technological means.

(3)Environs for meteorological observation mean the minimum surrounding space away from any interference, a space that is essential
for ensured acquisition of accurate meteorological observation information by means of observation facilities.

(4)Meteorological disasters include disasters caused by typhoon, rainstorm (snowstorm), cold wave, strong wind (sandstorm and/or duststorm),
low temperature, high temperature, drought, thunderstorm and lightning, hail, frost and fog.

(5)Weather modification refers to efforts aimed at rain or snow enhancement, hail suppression, rain suppression, fog dispersal, frost
prevention by exerting, under appropriate conditions, artificial influence on local atmospheric physical and chemical processes through
scientific and technological means, in order to avert or mitigate meteorological disasters and rationally exploit climatic resources.

   Article 42 Specific administrative measures governing the scope, items and charges for paid meteorological services provided by meteorological
offices or stations and other units shall be formulated by the State Council in accordance with the provisions of this Law.

   Article 43 Administrative measures governing the meteorological work in the Chinese People’s Liberation Army shall be formulated by the Central
Military Commission.

   Article 44 Where differences in provisions are found between an international treaty on meteorological activities concluded or acceded to by
the People’s Republic of China and this Law, the provisions contained in the international treaty shall prevail, with the exception
of the clauses on which the People’s Republic of China has expressed reservations.

   Article 45 This Law shall go into effect as of January 1, 2000. The Regulations of the People’s Republic of China on Meteorological Services
promulgated by the State Council on August 18, 1994 shall be annulled as of the same date.

    

Source:China Internet Information Center

EDITOR:Victor





ARBITRATION LAW

Category  ARBITRATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1994-08-31 Effective Date  1995-09-01  


Arbitration Law of the People’s Republic of China

Chapter I  General Provisions
Chapter II  Arbitration Commissions and the Arbitration
Chapter III  Arbitration Agreement
Chapter IV  Arbitration Proceedings
Chapter V  Application for Rescission of Award
Chapter VI  Execution
Chapter VII  Special Provisions for Foreign-related
Chapter VIII  Supplementary Provisions
Annex:  The Relevant Articles of the Civil Procedure Law

(Adopted at the Ninth Meeting of the Standing Committee of the Eighth National People’s Congress on August 31, 1994, promulgated by
Order No.31 of the President of the People’s Republic of China on August 31, 1994, and effective as of September 1, 1995)

Chapter I  General Provisions

    Article 1  This Law is formulated for the
purpose of ensuring the impartial and prompt
arbitration of economic disputes, protecting the
legitimate rights and interests of the parties, and
guaranteeing the sound development of the socialist
market economy.

    Article 2  Disputes arising out of contracts and
other disputes relating to rights and interests
in property between citizens, legal persons and other
organizations that are equal subjects may be
submitted to arbitration.

    Article 3  Disputes coming under the following
categories shall not be submitted to arbitration:

    (1) disputes arising from marriage, adoption,
guardianship, support and inheritance; and

    (2) administrative disputes that, according to
law, should be handled by administrative authorities.

    Article 4  The parties’ submission to arbitration
to settle their dispute shall be on the basis of both
parties’ free will and an arbitration agreement
reached between them. Failing an arbitration
agreement, the Arbitration Commission shall not accept
the application for arbitration submitted by either
of the parties.

    Article 5  In case of an arbitration agreement,
a suit brought before a people’s court by either of
the parties to the arbitration agreement shall not be
accepted, except the arbitration agreement is null
and void.

    Article 6  The Arbitration Commission shall be
selected by the parties by agreement.

    In arbitration, there shall be no level competency,
nor territorial jurisdiction.

    Article 7  In arbitration, disputes shall be
settled on the basis of facts, in conformity with
law and in a just and reasonable manner.

    Article 8  The arbitration shall be conducted
independently by virtue of law, and shall not be subject
to interference by any administrative agency, public
organization or individual.

    Article 9  The arbitral award shall be final.
Once an arbitral award has been made, neither the
Arbitration Commission nor the people’s court shall
accept the application for arbitration submitted,
or the suit brought, by either of the parties as to
the same dispute.

    Where an arbitral award has been ordered to be
rescinded or not to be executed by a people’s court
according to law, either of the parties may submit
the dispute to arbitration according to the
arbitration agreement reconcluded between them, or
bring a suit before a people’s court.
Chapter II  Arbitration Commissions and the Arbitration
Association

    Article 10  An Arbitration Commission may be set up
in the capital city of a province, autonomous region
or municipality directly under the Central Government,
and also in other cities divided into districts if the
circumstances require, with no need to set up at every
administrative level.

    In setting up an Arbitration Commission, the
people’s government of the city as mentioned in the
preceding paragraph shall arrange for the departments
concerned and the relevant chambers of commerce to
organize such Commission in a unified manner.

    For setting up an Arbitration Commission, the
registration procedure shall be completed with the
judicial administration of the province, autonomous
region or municipality under the Central Government.

    Article 11  An Arbitration Commission shall meet
the following requirements:

    (1) has its own name, domicile and constitution;

    (2) has the necessary property;

    (3) has the personnel constituting the Commission; and

    (4) has appointed arbitrators.

    The constitution of an Arbitration Commission shall
be formulated in accordance with this Law.

    Article 12  An Arbitration Commission shall be
composed of one Chairman, two to four Vice-Chairmen
and seven to eleven members.

    The posts of Chairman, Vice-Chairman and member
of an Arbitration Commission shall be held by
specialists in the fields of law, economy and
trading and persons with practical experience. The
specialists in law and in economy and trading shall
not be less than two-thirds of the personnel of an
Arbitration Commission.

    Article 13  An Arbitration Commission shall appoint
their arbitrators from among persons who are just and
upright.

    An arbitrator shall have one of the following
qualifications:

    (1) has been engaged in arbitration for eight
years or more;

    (2) has practised law as a lawyer for eight years
or more;

    (3) has served as a judge for eight years or more;

    (4) has been engaged in legal research or legal
education and has a senior professional post_title; or

    (5) with an acquaintance with law, has been
engaged in the professional work of economy and
trading, etc. and has a senior professional post_title
or has attained the equivalent professional level.

    An Arbitration Commission shall draw up rolls of
arbitrators according to different professions.

    Article 14  Arbitration Commissions shall be
independent of administrative agencies and there
shall be no subordinate relationship between an
Arbitration Commission and any administrative agency,
nor that between the different Arbitration Commissions.

    Article 15  China Arbitration Association shall
be a social organization with the status of a legal
person. All Arbitration Commissions shall be members
of China Arbitration Association. The constitution
of China Arbitration Association shall be formulated
by the National Congress of the Members.

    China Arbitration Association shall be a
self-disciplining organization of Arbitration
Commissions, and it shall conduct supervision
over the undisciplined activities of Arbitration
Commissions and their members and arbitrators.

    China Arbitration Association shall formulate
arbitration rules in accordance with the relevant
provisions of the Civil Procedure Law and this Law.
Chapter III  Arbitration Agreement

    Article 16  The term “arbitration agreement”
shall mean either an arbitral clause in a contract
or any arbitration agreement in other writing form
concluded before or after the dispute arising.

    An arbitration agreement shall contain the
following particulars:

    (1) the express intention of arbitration;

    (2) matters that may be submitted to
arbitration; and

    (3) the Arbitration Commission appointed.

    Article 17  An arbitration agreement shall be
null and void if it comes under any of the following
circumstances:

    (1) the agreed matters for arbitration are beyond
the arbitral scope provided for by law;

    (2) one or more parties of the arbitration
agreement are persons having no capacity for civil
conduct or persons with limited capacity for civil
conduct; or

    (3) the arbitration agreement was concluded as
a result of coercion.

    Article 18  Where they have not or not expressly
appointed the matters for arbitration or the
Arbitration Commission in their arbitration agreement,
the parties may make an additional agreement; failing
the additional agreement, the arbitration agreement
shall be null and void.

    Article 19  An arbitration agreement shall be
independent of contracts, and no modification,
rescission, termination or invalidation of a contract
shall affect the effect of the arbitration agreement.

    The Arbitration Tribunal shall be enpost_titled to
confirm the effect of a contract.

    Article 20  Where any party challenges the effect
of an arbitration agreement, he may either submit it
to the Arbitration Commission for a decision or bring
it before the people’s court for an order. If one party
submits it to the Arbitration Commission for a
decision while the other one brings it before the
people’s court for an order, the people’s court shall
rule an order.

    The party who intends to challenge the effect of
the arbitration agreement shall put forward his
challenge before the first hearing of the Arbitration
Tribunal.
Chapter IV  Arbitration Proceedings

    Section 1  Application and Acceptance

    Article 21  Where any party intends to submit a
dispute to arbitration, the following requirements
shall be met:

    (1) there is an arbitration agreement;

    (2) he has a concrete claim, together with facts and
grounds; and

    (3) the dispute is within the arbitral scope of
the Arbitration Commission.

    Article 22  In applying for arbitration, a
party shall submit to the Arbitration Commission
the arbitration agreement, an application for
arbitration and its duplicates.

    Article 23  An application for arbitration shall
include the following particulars:

    (1) the name, sex, age, occupation, place of
work and domicile of the parties, or if the party is
a legal person or other organizations, its name and
domicile, and the name and position of its legal
representative or of the person in charge;

    (2) the arbitration claim and the facts and
grounds on which the claim is based; and

    (3) the evidence and its source, as well as the
names and domiciles of witnesses.

    Article 24  Within 5 days after receiving an
application for arbitration, the Arbitration
Commission shall, if it deems that the requirements
for acceptance have been satisfied, accept the
application and notify the party, or if it deems
that the requirements for acceptance have not been
satisfied, notify the party in writing that the
application has been rejected and provide due
explanation.

    Article 25  After accepting the application, the
Arbitration Commission shall, within the time limits
as provided for by the arbitration rules, serve the
Claimant with the arbitration rules and the roll of
arbitrators, and serve the Respondent with a
duplicate of the application for arbitration, as well
as the arbitration rules and the roll of arbitrators.

    After receiving the duplicate of the application
for arbitration, the Respondent shall, within the time
limits as provided for by the arbitration rules,
submit his defence to the Arbitration Commission.
After receiving the defence, the Arbitration Commission
shall, within the time limits as provided for by the
arbitration rules, serve the Claimant with a
duplicate of the defence. Failure by the Respondent
to file a bill of defence shall not prevent the
arbitration proceedings from being carried out.

    Article 26  In the event that a party, despite
of the existence of an arbitration agreement, brings
a lawsuit before a people’s court without a
statement of the existence of the agreement, and the
people’s court has accepted it as a case, if the
other party submits the arbitration agreement
before the first hearing of the court, the people’s
court shall reject the suit with the exception that
the arbitration agreement is null and void; if
the other party does not raise any challenge to the
jurisdiction of the court before the first hearing,
he shall be deemed to have abandoned the arbitration
agreement, and the people’s court shall continue its
proceedings.

    Article 27  The Claimant may abandon or modify
his claim. The Respondent may either accept or
refuse the claim, and he shall be enpost_titled to file
his counter-claim.

    Article 28  Where it becomes impossible or
difficult to execute an arbitral award because of
the acts of the other party or for other reasons,
a party may apply for economic preservative measures.

    Where a party applies for economic preservative
measures, the Arbitration Commission shall refer it
to the people’s court in accordance with the
relevant provisions of the Civil Procedure Law.

    If the application comes to be false, the
applicant shall compensate the other party for any
loss of property due to the economic preservative
measures.

    Article 29  A party or his agent ad litem may
entrust a lawyer or other agent to act on his behalf
in arbitration. Those who intend to entrust a lawyer
or other agent to act on his behalf in arbitration
shall submit to the Arbitration Commission a power
of attorney.

    Section 2  Formation of Arbitration Tribunal

    Article 30  An Arbitration Tribunal may consist
of either three or a sole arbitrator. Where an
Arbitration Tribunal consists of three arbitrators,
a presiding arbitrator shall be appointed.

    Article 31  Where the parties have agreed that
the Arbitration Tribunal shall be composed of three
arbitrators, they shall respectively select or
respectively authorize the Chairman of the
Arbitration Commission to appoint an arbitrator,
and the third arbitrator shall be selected jointly
by the parties or be appointed by the Chairman of
the Arbitration Commission with the authorization
jointly by the parties. The third arbitrator shall
be the presiding arbitrator.

    Where the parties have agreed that the
Arbitration Tribunal shall be composed of a sole
arbitrator, that arbitrator shall be selected
jointly by the parties or be appointed by the
Chairman of the Arbitration Commission with the
authorization jointly by the parties.

    Article 32  Where the parties, within the time
limits as provided for by the arbitration rules,
fail to agree on the formation of the Arbitration
Tribunal or fail to select the arbitrator(s), the
formation of the Arbitration Tribunal or the
arbitrator(s) shall be decided or appointed by the
Chairman of the Arbitration Commission.

    Article 33  After an Arbitration Tribunal has
been formed, the Arbitration Commission shall
notify the formation of the Arbitration Tribunal
in writing to the parties.

    Article 34  Where any arbitrator comes under
any of the following circumstances, he shall
withdraw from his office, also the parties shall
have the right to make a request for a withdrawal
of him from his office:

    (1) he is a party or a near relative of a
party or of the agent of a party to the case;

    (2) he has a personal interest in the case;

    (3) he has other relationship with a party or
the agent of a party to the case that cause doubts
to his impartiality; or

    (4) he has secretly met with a party or the
agent of a party, or accepted lavish dinner and gift
offered by a party or the agent of a party.

    Article 35  The party who challenges an
arbitrator shall state the reason and make a request
for withdrawal before the first hearing. Where the
reason for challenge becomes known after the first
hearing, the request for withdrawal may be made
before the end of the last hearing.

    Article 36  The Chairman of the Arbitration
Commission shall decide on the withdrawal of an
arbitrator; the Arbitration Commission shall decide
on the withdrawal of the Chairman of the Arbitration
Commission as an arbitrator.

    Article 37  Where an arbitrator cannot perform
his functions because of his withdrawal or for
other reasons, a substitute arbitrator shall be
selected or appointed in accordance with the
provisions of this Law.

    After the substitute arbitrator has been
selected or appointed upon the withdrawal, the
parties may request that the arbitral proceedings
in progress begin anew, and the Arbitration Tribunal
shall decide to permit or not; the Arbitration
Tribunal may also decide of itself whether or not
the arbitral proceedings shall begin anew.

    Article 38  Where any arbitrator comes under the
circumstances as mentioned in Item (4) of Article 34
of this Law and the case is serious, or under the
circumstances as mentioned in Item (6) of Article 58
of this Law, he shall be investigated for legal
responsibilities according to law, and the Arbitration
Commission shall remove his name from the roll of
arbitrators.

    Section III  Hearing and Award

    Article 39  Arbitration shall be conducted by
means of oral hearing. Where the parties agree to
omit oral hearing, the Arbitration Tribunal may
make an award according to the application for
arbitration, the bill of defence and other papers.

    Article 40  Arbitration shall be conducted in
camera. Where the parties agree on open hearing, it
may be done so, with the exception that any state
secrets are involved.

    Article 41  The Arbitration Commission shall,
within the time limits as provided for by the
arbitration rules, notify both sides of the parties
the date of oral hearing. With justified reasons, a
party may, within the time limits as provided for by
the arbitration rules, request for an postponement
of the date of oral hearing. The Arbitration
Tribunal shall decide on the request.

    Article 42  The Applicant who has been notified
in writing to but fails to appear at the hearing
without any justified reason or leaves the session in
the progress of the hearing without permission of the
Arbitration Tribunal shall be deemed to withdraw his
application for arbitration.

    Where the Respondent who has been notified in
writing fails to appear at the hearing without any
justified reason or leaves the session in the progress
of the hearing without permission of the Arbitration
Tribunal, the Arbitration Tribunal may make an award
by default.

    Article 43  The parties shall give evidence for
their own arguments.

    The Arbitration Tribunal may, when it considers
necessary, make investigation and collect evidence on
its own initiative.

    Article 44  The Arbitration Tribunal may, when it
considers necessary, refer a specialized issue for
appraisal to an appraisal agency agreed upon by the
parties or appointed by the Tribunal itself.

    The appraisal agency shall, on the request of
the party or the demand of the Arbitration Tribunal,
send an appraiser to attend the hearing. With
permission of the Arbitration Tribunal, the parties
may put questions to the appraiser.

    Article 45  Evidence shall be presented during
the hearings, and the parties may make challenges
thereon.

    Article 46  Under circumstances where there is
a likelihood that evidence may be destroyed or
lost or difficult to obtain later on, the parties
may apply for the evidence to be preserved. Where a
party applies for any evidence to be preserved, the
Arbitration Commission shall pass the application
on to the basic people’s court at the place of the
evidence.

    Article 47  The parties shall have the right to
carry on debate in the course of arbitration. The
presiding arbitrator or the sole arbitrator shall,
at the end of the debate, seek the final statements
of the parties.

    Article 48  The Arbitration Tribunal shall make
a written record of the hearing. If any party or
any other participant in the hearing holds that
there is any omission or error in the records of
his statements, he shall have the right to apply
for supplement or correction. The application shall
be recorded if it is rejected.

    The written record shall be signed or sealed by
the arbitrator(s), recorder, parties and any other
participants in the hearing.

    Article 49  The parties may make reconcilement
of themselves after they have submitted their dispute
to arbitration. Where a settlement is reached through
reconcilement, the parties may either ask the
Arbitration Tribunal to make an award according to
the agreement on reconcilement or withdraw the
application for arbitration.

    Article 50  Where he retracts after an agreement
on reconcilement has been reached, the party may
apply for arbitration again by virtue of the
arbitration agreement after the original application
for arbitration has been withdrawn.

    Article 51  The Arbitration Tribunal may conduct
conciliation first before making an award. Where the
parties themselves wish to make a settlement through
conciliation, the Arbitration Tribunal shall conduct
conciliation. Failing settlement through
conciliation, an award shall be made without
delay.

    Where a conciliation agreement has been reached,
the Arbitration Tribunal shall either draw up a
conciliation statement or give an award according to
the conciliation agreement. The conciliation
statement and the award shall be of equal legal
effect.

    Article 52  The arbitral claim and the
settlement agreed on by the parties shall be stated
in a conciliation agreement. The conciliation
statement shall be signed by the arbitrator(s) with
the seal of the Arbitration Commission and then be
served to both sides of the parties.

    The conciliation statement shall become
effective as soon as both sides of the parties have
signed for receipt thereof.

    Where any party retracts before he signs for
receipt of the conciliation statement, the
Arbitration Tribunal shall make an award without
delay.

    Article 53  The award shall be decided by the
majority of the arbitrators, while the minority
opinion may be put in a written record. Where no
majority is obtainable, the award shall be
decided by the presiding arbitrator.

    Article 54  The award shall be written into the
arbitral claim, the facts of the dispute, the
reasons for the decisions, the result of the award,
the arbitration costs to be borne and the date on
which the award was made. The facts of the dispute
and reasons for the award may be omitted if they are
agreed to be by the parties. The award shall be
signed by the arbitrator(s) with the seal of the
Arbitration Commission. The arbitrator of the
minority opinion may either sign or not.

    Article 55  The Arbitration Tribunal may, in the
process of the arbitration, make an interlocutory
award first on any facts of the case if those facts
are already evident.

    Article 56  The Arbitration Tribunal shall
correct any literal error and any error in
computation, and add matters that have been
adjudicated but omitted to write in the award; any
of the parties may, within 30 days after receiving
the award, request the Arbitration Tribunal to make
a correction or addition.

    Article 57  The award shall become effective as
of the date of making.
Chapter V  Application for Rescission of Award

    Article 58  Any party who can give evidence to
prove that the award comes under one of the following
circumstances may apply to the intermediate people’s
court of the same region where the Arbitration
Commission is located for rescission of the award:

    (1) there was no arbitration agreement between
the parties;

    (2) the matters as to which the award was made
were beyond the scope as specified in the arbitration
agreement or beyond the jurisdiction of the
Arbitration Commission;

    (3) the formation of the Arbitration Tribunal or
the arbitral proceedings were contrary to the
statutory procedure;

    (4) the evidence on which the award was made was
fabricated;

    (5) the other party withheld some evidence and
the withholding was enough to impair the impartiality
of the award; or

    (6) the arbitrator, while conducting arbitration
of the case, asked for or accepted bribes, played
favouritism and committed irregularities, or conducted
arbitration by twisting the law.

    Where the people’s court, by forming a collegial
panel, verifies upon investigation that the award
was made under any of the circumstances as mentioned
in the preceding paragraph, it shall make an order
to rescind the award.

    Where the people’s court verifies that an award
is prejudicial to the public interests, it shall
make an order to rescind the award.

    Article 59  The application of the parties for
rescission of an award shall be put forward within a
period of six months after receiving the award.

    Article 60  the people’s court shall make an
order to rescind the award or to reject the
application within a period of two months after
accepting an application for rescission of an
award.

    Article 61  After accepting an application for
rescission of an award, if the people’s court
holds that it may be rearbitrated by the
Arbitration Tribunal, it shall notify the
Arbitration Tribunal to make a rearbitration
within a certain period of time limit, and in the
meantime, make an order to suspend the rescission
procedure. Where the Arbitration Tribunal refuses to
make a rearbitration, the people’s court shall make
an order to resume the rescission procedure.
Chapter VI  Execution

    Article 62  The parties shall perform the award.
Where any party fails to perform the award, the
other party may, in accordance with the relevant
provisions of the Civil Procedure Law, apply to the
people’s court for execution. The people’s court
which is applied to shall make an execution.

    Article 63  In case that the person against whom
an application for execution is made gives evidence
to prove that the award comes under any of the
circumstances as mentioned in the Second Paragraph,
Article 217, of the Civil Procedure Law, the people’s
court shall, after examination and verification by a
collegial panel, make an order to disallow the award.

    Article 64  In case that one party applies for
execution of an award while the other one applies
for rescission of the award, the people’s court
shall make an order to suspend the execution.

    Where it makes an order to rescind

CIRCULAR OF THE STATE COUNCIL CONCERNING THE PRROVAL AND TRANSMISSION OF THE OPINIONS OF THE PEOPLE’S BANK OF CHINA ON STRENGTHENING SUPERVISION AND ADMINISTRATION OF FINANCIAL INSTITUTIONS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-09-29 Effective Date  1994-09-29  


Circular of the State Council Concerning the Prroval and Transmission of the Opinions of the People’s Bank of China on Strengthening
Supervision and Administration of Financial Institutions

    
Appendix: Opinions on Strengthening Supervision and Administration of

(September 29, 1994)

    

    “The Opinions of the People’s Bank of China on Strengthening Supervision
and Administration of Financial Institutions” has been approved by the State
Council, and is hereby transmitted to you for conscientious implementation
thereof.”

    Work related to the supervision and administration of financial
institutions is wide-ranging and has a strong policy character. Therefore,
various regions and departments should actively support and fully cooperate
with the People’s Bank of China in exercising the function of supervision and
administration. Questions arising during the process of rectifying the
financial institutions shall be appropriately dealt with in accordance with
relevant state provisions in order to promote the safe and efficient
operations of the financial system.
Appendix: Opinions on Strengthening Supervision and Administration of
Financial Institutions

    In order to conscientiously carry out the “Decision of the State Council
on Reform of the Financial System”, practically change the functions of the
People’s Bank of China, further strengthen the supervision and administration
of financial institutions and maintain stable financial order, the following
opinions on the supervision and administration of financial institutions are
hereby introduced:

    1. The People’s Bank of China is authorized by the State Council as the
department in charge of finance and shall in accordance with the law perform
the functions of examining and approving the establishment, alteration and
termination of various types of financial institutions. The establishment of
financial institutions and the operations of financial business must be
approved by the People’s Bank of China, and without such approval, the
management of financial business on self-authorization shall, without
exception, be deemed as unlawful management, and shall be dealt with in
accordance with the law. Administration, supervision, investigation for
decision-making activities the People’s Bank of China conducts in accordance
with the law with respect to financial institutions shall not be subject to
the interference of any unit or individual.

    In case of management of financial business approved by various regions or
departments on their own decisions without being examined and approved, and
without the certificate for the management of financial business issued by the
People’s Bank of China, self-examination and self-correction shall be
conducted in accordance with the law. In case of a necessity of the
establishment, a fresh applicatioin shall be submitted to the People’s Bank of
China for approval.    

    2. Branches and sub-branches of the People’s Bank of China are agencies of
the Headquarters of the People’s Bank of China, and shall approve the
establishment of financial institutions in strict accordance with the
authorization of the Headquarters of the People’s Bank of China, and shall
conscientiously ferret out approvals made in violation of regulations and
beyond the authority for the establishment of financial institutions in
accordance with the provisions outlined in the “Circular on Ferreting Out
Approvals for the Establishment of Financial Institution Made Beyond the Scope
of Authority of Branches at Various Levels of the People’s Bank of China”
(YIN CHUAN NO.27[1994]). All financial institutions established with approvals
made beyond the scope of authority referred to in the document under reference
YIN CHUAN No.27 [1994], which explicitly requires dissolution or merger, shall
be resolutely dissolved or merged, and settlements of creditor’s rights and
debts shall be made finalized jointly with relevant departments. In cases when
no express opinions are outlined in document No.27[1994] on the ferreting out
process, the Headquarters of the People’s Bank of China shall, after
clarifying specific circumstances, draft detailed opinions thereon and
disseminate same recently to all branches and sub-branches of the People’s
Bank of China for implementation.

    3. Securities institutions operated by financial departments must, at the
earliest possible date, be separated from financial departments. With regard
to such institutions, financial securities institutions of provinces,
autonomous regions, municipalities directly under the Central Government and
cities listed under separate plans which are well-managed in conformity with
the conditions required, shall, in accordance with unified standards, be
transformed into standardized securities corporations following the
examination and approval first by local branches of and thereafter by the
Headquarters of the People’s Bank of China, with said corporations subject to
the supervision and administration of the People’s Bank of China. Exchange
institutions handling state bond transactions at the prefectural (city) level
shall be combined with and become branches of securities corporations at the
provincial level if in conformity with relevant conditions, and without
exception, shall be dissolved when not in conformity. Financial securities
institutions and service departments handling state bond at and below the
county level may, after ferreting out, become agencies of financial securities
institutions upon receiving the approval by the local branch of the People’s
Bank of China. The People’s Bank of China jointly with the Ministry of Finance
shall be responsible for ferreting out financial securities institutions.

    4. In accordance with provisions outlined in the “Regulations on the
Administration of Savings”, the postal network and stations handling
transactions related to personal savings of the residents must conform with
requirements for establishing savings institutions, and must obtain the
appropriate permits and certificates for managing financial business. Postal
savings network and stations which have failed to obtain appropriate
certificates, but which are nonetheless engaged in private savings
transactions, shall be reported to the local branch of the People’s Bank of
China, after the post and telecommunications administrative departments of
provinces, autonomous regions and municipalities directly under the Central
Government prepared itemized reports thereon. Following the approval of the
People’s Bank of China and the issuance of relevant permits and certificates,
said institutions may handle savings business of the residents.

    5. Rural cooperative funds are in fact organizations providing mutual
financial assistance serving agriculture and farmers within their respective
communities, and hence are not considered to be financial institutions. The
Ministry of Agriculture bears responsibility for formulating relevant policies
and regulations, as well as to issue directives regarding the administration
and development of cooperative funds in rural areas. The local agricultural
administration departments are departments in charge of cooperative funds in
rural areas. The People’s Bank of China shall, in accordance with the law,
exercise supervision of the business activities of cooperative funds in rural
areas, and shall join with agricultural administration departments in
appropriately handling acts in violation of the regulations in respect of
managing deposits and lending transactions.

    6. Serving in its capacity as the department in charge of pawnbroking and
bearing responsibility for the examination and approval of the establishment
of pawnbroking institutions and administration of related business activities,
the People’s Bank of China shall, in accordance with relevant state
provisions, ferret out and standardize existing institutions, and order those
to stop the banking business conducted beyond their scope of business within a
prescribed period of time.

    7. In accordance with the “Regulations on the Administration of the
Securities of Enterprises”, and with requirements stipulated by the General
Office of the CPC Central Committee and the General Office of the State
Council concerning exercising strict administration of markets for lottery
tickets and prohibiting the issuance of unauthorized lottery tickets, the
People’s Bank of China shall join with relevant planning departments at the
same level to strengthen the administration of enterprise securities and
lottery tickets, and shall be responsible for the examination and approval of
the issuance of enterprise securities within the state plan. Unless otherwise
provided for by the State Council, no funds shall be raised from the society
and no lottery tickets shall be issued without the approval of the People’s
Bank of China. Those found in violation of the relevant provisions concerning
the issuance of securities and lottery tickets shall be investigated and dealt
with by the People’s Bank of China jointly with relevant departments.

    8. With regard to making investments by purchasing shares from financial
institutions, the “Circular on Printing and Distributing `the Provisional
Regulations on Investments Related to Purchasing Shares from Financial
Institutions'” of the People’s Bank of China shall be implemented strictly.
Departments of parties and the government, PLA units, organizations as well as
various institutions included in the national budget, and the state financial
institutions administering policy shall not make investments by purchasing
shares in financial institutions without the explicit approval of the
organization authorized by the state. Investments involving the purchase of
shares of financial institutions made by the local financial departments,
industrial and commercial enterprises and financial institutions designated as
legal entities shall conform with the conditions and the investment ratio
stipulated by the People’s Bank of China. All financial institutions must pay
taxes, operate in strict accordance with the law and conscientiously implement
relevant provisions of the People’s Bank of China.





OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION TO THE QUESTION CONCERNING THE DELINEATION OF ENTERPRISES WITH FOREIGN INVESTMENT ENGAGING IN COMMUNICATIONS AND TRANSPORTATION

The State Administration of Taxation

Official Reply of the State Administration of Taxation to the Question Concerning the Delineation of Enterprises with Foreign Investment
Engaging in Communications and Transportation

GuoShuiFa [1994] No.383

July 4, 1994

Beijing Municipal Tax Bureau:

We have recently received your bureau’s inquiry, asking the question as to whether or not enterprises with foreign investment engaged
in the business of moving houses and transportation can enjoy the preferential taxation treatment as granted to productive enterprise
with foreign investment. After study we hereby clarify the question as follows:

The communications and transportation services as stated in Subparagraph (8) of Paragraph 1 in Article 72 of the Rules for the Implementation
of the Income Tax Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises include enterprises
with foreign investment engaging in the business of moving houses and transportation, but exclude enterprises with foreign investment
engaging in (express) delivery business of mail and articles.



 
The State Administration of Taxation
1994-07-04

 






WRITTEN REPLY TO THE QUESTION CONCERNING THE DELINEATION OF ENTERPRISE WITH FOREIGN INVESTMENT ENGAGING IN COMMUNICATIONS AND TRANSPORTATION

Written Reply to the Question Concerning the Delineation of Enterprise With Foreign Investment Engaging in Communications and Transportation

     (Effective Date:1994.07.04–Ineffective Date:)

To the Beijing Municipal Tax Bureau:

We have recently received your bureau’s inquiry, asking the question as to whether or not enterprise with foreign investment engaged
in the business of moving houses and transportation can enjoy the preferential taxation treatment as granted to productive enterprise
with foreign investment. After study we hereby clarify the question as follows:

The communications and transportation services as stated in Section (8), Clause 1, Article 72 of the Detailed Rules for Implementation
of the Income Tax Law of the Peoples Republic of China on enterprise with foreign investment and Foreign Enterprises include enterprise
with foreign investment engaging in the business of moving houses and transportation, but exclude enterprise with foreign investment
engaging in(express) delivery business of mail and articles.

    





CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING THE LEVY OF STAMP TAX ON ENTERPRISE WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation on the Issue Concerning the Levy of Stamp Tax on Enterprise with Foreign Investment
and Foreign Enterprises

GuoShuiFa [1994] No.95

April 7,1994

The tax bureaus of various provinces, autonomous regions and municipalities directly under the Central Government, the tax bureaus
of various municipalities separately listed on the State plan and the various sub-bureaus of the Offshore Oil Tax Administration:

In line with the stipulation of the Circular of the State Council On Issues Related to the Interim Regulations Concerning the Levy
of Applicable Value-Added Tax, Consumption Tax and Business Tax on Enterprise with Foreign Investment and Foreign Enterprises, enterprise
with foreign investment, foreign enterprises and other economic organizations and their offices in China (hereinafter referred to
as “enterprises”) shall, beginning from January 1, 1994, pay stamp tax in accordance with the Interim Regulations of the People’s
Republic of China on Stamp Tax and rules for its implementation. Related issues are hereby clarified as follows:

I.

Enterprises which had contracted to be established before December 31, 1993 and have received various dutiable certificates, including
contracts, property rights transfer certificates, business account books and licenses of rights are exempt from stamp tax.

II.

Enterprises which had signed dutiable contracts before December 31, 1993, revised the contracts after January 1, 1994 to increase
the amount of investment or signed a new contract after the expiration of the original contract shall pay stamp tax according to
regulations.

III.

For capital actually received and capital accumulations increased after January 1, 1994 as recorded in the account book, stamp tax
shall be levied on the increased portion; the capital actually received and capital accumulations which have not increased as recorded
in the new account book are exempt from stamp tax; for other account books started using after January 1, 1994, stamp tax shall be
levied according to regulations.

IV.

For property right transfer certificates and right license obtained by the enterprise before December 31, 1993 which were revised,
replaced or transferred, stamp tax shall be levied according to regulations.

V.

If the amount of lump sum stamp tax to be recorded in the account book of the enterprise is too big, with approval from competent
tax authorities, deficient stamp tax payments are allowed to be made up by instalments within three years. Enterprises with an operational
period less than three years shall make up the deficient stamp tax payment within the operational period.

VI.

The current regulations on stamp tax shall be acted upon in regard to other tax-exemption matters.



 
The State Administration of Taxation
1994-04-07

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING TEMPORARY EXEMPTION FROM URBAN MAINTENANCE AND CONSTRUCTION TAX AND ADDITIONAL EDUCATION FEES FOR ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Temporary Exemption from Urban Maintenance and Construction Tax and Additional
Education Fees for Enterprises with Foreign Investment and Foreign Enterprises

GuoShuiFa [1994] No.38

February 25, 1994

The tax bureaus of various provinces, autonomous regions and municipalities directly under the Central Government, the tax bureaus
of various municipalities separately listed on the State plan and various branches of the Offshore Oil Tax Administration:

Recently many regions have asked about the question concerning whether or not urban maintenance and construction tax and additional
education fees shall be levied on enterprises with foreign investment and foreign enterprises after reform of the tax system. In
view of the fact that except for value-added tax, consumption tax and business tax and legally stipulated tax items which are levied
on enterprises with foreign investment and foreign enterprises, as to the question concerning the application of other tax categories
to enterprises with foreign investment and foreign enterprises, the State Council will, in line with the spirit of the Decision of
the Standing Committee of the National People’s Congress Concerning the Application of Interim Regulations on Such Taxes As Value-added
Tax, Consumption Tax and Business Tax to Foreign Investment Enterprises and Foreign Enterprises, work out stipulations in the near
future, Therefore, in the opinion of the Administration: Whether or not urban maintenance and construction tax and additional education
fees shall be initiated on enterprises with foreign investment and foreign enterprises the matter shall be implemented in accordance
with the Circular soon to be issued by the State Council, before explicit stipulations are issued by the State Council, the above-mentioned
tax and fees shall not be levied for the time being.



 
The State Administration of Taxation
1994-02-25

 






123...12Page 1 of 12

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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