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2000

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE REGULATIONS ON ADMINISTRATIVE PENALTIES FOR PUBLIC SECURITY

Category  PUBLIC SECURITY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1994-05-12 Effective Date  1994-05-12  


Decision of the Standing Committee of the National People’s Congress Regarding the Revision of the Regulations of the People’s Republic
of China on Administrative Penalties for Public Security(appendix: the First Revision of the Regulations of the People’s Republic
of China on Administrative Penalties for Public Security)


Appendix: REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATIVE
Contents
Chapter I  General Provisions
Chapter II  Types and Application of Penalties
Chapter IV  Ruling and Enforcement
Chapter  Supplementary Provisions

(Adopted at the Seventh Meeting of the Standing Committee of the Eighth

National People’s Congress on May 12, 1994 and promulgated by Order No.24 of
the President of the People’s Republic of China on May 12, 1994)

    The Seventh Meeting of the Standing Committee of the Eighth National
People’s Congress has decided, after the deliberation on the proposal
submitted by the State Council regarding the Supplementary Provisions for the
Regulations of the People’s Republic of China on Administrative Penalties for
Public Security (Draft), to make the following revisions to the Regulations of
the People’s Repulic of China on Administrative Penalties for Public Security:

    1.Item (5) of Article 19 shall be amended as: “inciting disturbances of
the public order by fabricating or distorting facts, intentionally spreading
rumours or by other means;”

    2.Item (2) of Article 20 shall be amended as: “making, selling, storing,
transporting, carrying or using dangerous objects, in voilation of regulations
concerning the control of dangerous objects such as explosives, deadly
poisons, combustibles and radioactive elements, but not having caused serious
consequences enough for criminal punishments;”

    3.Amendments shall be made to Article 24 as follows:

    a.Item (1) thereof shall be amended as: “knowingly concealing, destroying
or transferring stolen goods but not serious enough for criminal punishment,
or knowingly buying stolen goods;”

    b.Item (4) thereof shall be amended as: “disturbing public order,
endangering public interests, damaging others’ physical health or swindling
property by way of superstitious sects and secret societies and feudal
superstition activities, when circumstances are not serious enough for
criminal punishment;”

    c.A new item shall be added thereto as Item (6): “pretending to be a
social organization to carry on relevant activities without registration, or
still assuming the name of a social organization to carry out activities where
its registration has been revoked or where it has been dissolved or banned by
order, in violation of regulations concerning the registration of social
organizations but not serious enough for criminal punishment;”

    d.A new item shall be added thereto as Item (7): “committing the acts
violating laws, administrative regulations and provisions of the public
security department under the State Council concerning supervision and
control, by those criminals or offenders who are serving their terms outside
prison under the criminal punishment of public surveillance or deprivation of
political rights, or under the probation of suspension of sentence or parole,
or under medical treatment on parole, or under other conditions, or by those
who are restrained by cirminal compulsory measures, when a new crime has not
been constituted;”

    e.A new item shall be added thereto as Item (8): “posing as a state
functionary in order to practise fraud, when circumstrances are not serious
enough for criminal punishment.”

    4.A new paragraph shall be added to Article 31 as paragraph 2: “Whoever
transports, deals in, stores or uses poppy shells illegally shall be detained
for a maximum of fifteen days and may be fined simply or concurrently a
maximum of three thousand yuan, in addition to seizure on his poppy shells
such transported, dealt in, stored or used; criminal responsibility shall be
investigated if the actions constitute a crime.”

    This Decision shall come into effect as of the date of promulgation.

    The Regulations of the People’s Repulic of China on Administrative
Penalties for Public Security shall be republished after being correspondingly
amended according to this Decision.
Appendix: REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATIVE
PENALTIES FOR PUBLIC SECURITY (the First Revision)

    (Adopted at the 17th Meeting of the Standing Committee of the Sixth
National People’s Congress on September 5, 1986, and revised in accordance
with the Decision on the Revision of the Regulations of the People’s Republic
of China on Administrative Penalties for Public Security adopted at the 7th
Meeting of the Standing Committee of the Eighth National People’s Congress on
May 12, 1994)
Contents

    Chapter I  General Provisions

    Chapter II  Types and Application of Penalties

    Chapter III  Acts Violating the Administration of Public Security and
Penalties

    Chapter IV  Ruling and Enforcement

    Chapter V  Supplementary Provisions
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of
strengthening the administration of public security, maintaining social order
and public safety, protecting the lawful rights of citizens and guaranteeing
the smooth progress of the socialist modernization.

    Article 2  Whoever disturbs social order, endangers public safety,
infringes upon a citizen’s rights of the person or encroaches upon public or
private property, if such an act constitutes a crime according to the Criminal
Law of the People’s Republic of China, shall be investigated for criminal
responsibility; if such an act is not serious enough for criminal punishment
but should be given administrative penalties for public security, penalties
sball be given according to these Regulations.

    Article 3  These Regulations shall apply to acts violating the
administration of public security within the territory of the People’s
Republic of China, except when otherwise stipulated by law.

    These Regulations shall also apply to acts violating the administration
of public security aboard ships or airborne vehicles of the People’s Republic
of China.

    Article 4  ln dealing with those who violate the administration of public
security, public security organs shall adhere to the principle of combining
education with punishment.

    Article 5  Acts caused by civil disputes which violate the administration
of public security, such as brawling and damaging or destroying another
person’s property, if the adverse effects are minor, may be handled by public
security organs through mediation.
Chapter II  Types and Application of Penalties

    Article 6  Penalties for acts violating the administration of public
security are divided into three types as follows:

    (1) warning;

    (2) fine, ranging from a minimum of one yuan to a maximum of two hundred
yuan. In cases where Articles 30, 31 and 32 in these Regulations stipulate
otherwise, such provisions shall be observed; or

    (3) detention, ranging from a minimum of one day to a maximum of fifteen
days.

    Article 7  Property obtained and contraband seized through acts violating
the administration of public security shall be returned to the owner or
confiscated according to relevant provisions. Instruments belonging to the
offender used in acts violating the administration of public security may be
confiscated according to relevant provisions. Detailed measures shall be
stipulated separately by the Ministry of Public Security.

    Article 8  When losses or injuries are caused by acts violating the
administration of public security, the offender shall compensate for the loss
or bear the medical expenses; if the offender is not an able person or is a
person of limited ability, unable to compensate for the loss or bear the
medical expenses, his guardian shall make the compensation or bear the medical
expenses according to law.

    Article 9  Acts violating the administration of public security committed
by a person between fourteen and eighteen years of age shall be given
relatively light penalties; acts vilolating the administration of public
security committed by a person under fourteen shall be exempted from
penalties, but a reprimand may be given and his guardian shall be instructed
to subject the offender to strict discipline.

    Article 10  A mentally disordered person who violates the administration
of public security at a time when he is unable to account for or to control
his own conduct shall not be penalized, but his guardian shall be instructed
to keep a strict guard on him and subject him to medical treatment. An
intermittently insane person who violates the administration of public
security while in normal mental condition shall be punished.

    Article 11  A deaf-mute or blind person who violates the administration of
public security owing to his physiological defects shall not be penalized.

    Article 12  An intoxicated person who violates the administration of
public security shall be penalized.

    An intoxicated person who may cause danger to himself or who threatens the
safety of others owing to his drunken state shall be restrained until he
returns to a sober state.

    Article 13  If a person commits two or more acts violating the
administration of public security, rulings shall be made separately but
executed concurrently.

    Article 14  When acts violating the administration of public security are
committed jointly by two or more persons, they shall be penalized separately
according to the seriousness of each person’s case.

    Whoever instigates, coerces or induces others to violate the
administration of public security shall be penalized according to the
seriousness of the act he instigates, coerces or induces.

    Article 15  For acts violating the administration of public security
committed by government offices, organizations, enterprises or institutions,
penalties shall be given to the persons directly responsible; if the acts are
committed at the order of persons in charge of units, such persons shall be
penalized at the same time.

    Article 16  Penalties for acts violating the administration of public
security shall be mitigated or exempted under any of the following
circumstances:

    (1) the adverse effects are extremely minor;

    (2) when those responsible voluntarily admit their mistakes and correct
them in time;

    (3) when those responsible were coerced or induced by others.

    Article 17  Heavier penalties shall be given for acts violating the
administration of public security under any of the following circumstances:

    (1) when acts have caused relatively serious consequences;

    (2) when those responsible coerce or induce others or instigate persons
under the age of eighteen to violate the administration of public security;

    (3) when those responsible take revenge on the informants or witnesses;

    (4) when those responsible have been repeatedly punished and refuse to
amend.

    Article 18  Acts violating the administration of public security shall not
be penalized if they have not been discovered by the public security organs
within six months.

    The period of time mentioned in the paragraph above shall be counted from
the day the acts violating the administration of public security are committed
or from the day the acts stopped if they are continuous or continuing acts.

    Chapter III  Acts Violating tbe Administration of Public Security and
Penalties

    Article 19  Whoever commits one of the following acts disturbing public
order, if it is not serious enough for criminal punishment, shall be detained
for a maximum of fifteen days, fined a maximum of two hundred yuan or given a
warning:

    (1) disturbing the public order of government offices, organizations,
enterprises or institutions, making it impossible for the work, productive or
business operations, medical care, teaching or scientific research to go on
smoothly but not having caused serious losses;

    (2) disturbing the public order of stations, wharves, civil airports,
markets, bazaars, parks, theatres, entertainment centres, sports grounds,
exhibition halls or other public places;

    (3) disturbing the public order of buses, trolleybuses, trains, ships and
other public transit vehicles;

    (4) gang-fighting, instigating quarrels, taking liberties with women or
other indecent behaviour;

    (5) inciting disturbances of the public order by fabricating or distorting
facts, intentionally spreading rumours or by other means;

    (6) making false reports of dangerous situations and fomenting chaos;

    (7) refusing or obstructing state personnel who are carrying out their
functions according to law, without resorting to violence and threat.

    Article 20  Whoever commits one of the following acts impairing public
security shall be detained for a maximum of fifteen days, fined a maximum of
two hundred yuan or given a warning:

    (1) carrying or keeping firearms or ammunition, or committing other acts
in violation of firearms control regulations, but not serious enough for
criminal punishment;

    (2) making, selling, storing, transporting, carrying or using dangerous
objects, in voilation of regulations concerning the control of dangerous
objects such as explosives, deadly poisons, combustibles and radioactive
elements, but not having caused serious consequences enough for criminal
punishments;

    (3) illegally manufacturing, selling or carring daggers, knives with three
edges, switchblades or other types of controlled knives;

    (4) running hotels, restaurants, theatres, entertainment centres, sports
grounds, exhibition halls or other public places for mass gatherings in
violation of safety provisions and refusing to improve after notification by
the public security organs;

    (5) organizing mass gatherings, exhibitions, fairs, or other public
activities in the fields of culture, entertainment, or sports without
appropriate safety precautions and refusing to improve after notification by
the public security organs;

    (6) violating safety regulations concerning ferry boats and ferries and
refusing to improve after notification by the public security organs;

    (7) rushing to board a ferry despite dissuasion, causing tbe ferry boat to
be overloaded or forcing the pilot to navigate under dangerous conditions in
violation of safety regulations, when circumstances are not serious enough for
criminal punishment;

    (8) digging holes, placing obstacles, damaging, destroying or removing
markers on railways, highways, navigation routes or dams which may affect safe
traffic and transportation, when circumstances are not serious enough for
criminal punishment.

    Article 21  Whoever commits one of the following acts impairing public
security shall be fined a maximum of two hundred yuan or given a warming:

    (1) establishing or using a civilian shooting range not in accordance with
safety regulations;

    (2) installing or using electrified wire-nettings without approval, or not
in accordance with safety regulations, without having caused grave
consequences;

    (3) when setting up a construction site in a place where vehicles and
pedestrians pass, installing no covers, signs or fences for pits, wells,
ridges and holes, or intentionally damaging, destroying, or removing covers,
signs and fences.

    Article 22  Whoever commits one of the following acts infringing upon a
citizen’s rights of the person, but not serious enough for criminal
punishment, shall be detained for a maximum of fifteen days, fined a maximum
of two hundred yuan or give a warning:

    (1) striking another person, causing slight injury;

    (2) illegally limiting others’ personal freedom or illegally breaking into
others’ houses;

    (3) openly insulting other persons or fabricating stories to slander other
persons;

    (4) maltreating family members, when tbe victims thereof ask for
disposition;

    (5) threatening others’ safety or disturbing others’ normal lives by
writing letters of intimidation or by other methods;

    (6) coercing or inveigling a person under the age of eighteen to give
frightening or cruel performances, ruining the person’s physical aad mental
health;

    (7) hiding, destroying, discarding or illegally opening another person’s
postal articles or telegrams.

    Article 23  Whoever commits one of the following acts encroaching upon
public or private property, but not serious enough for criminal punishment,
shall be detained for a maximum of fifteen days, given a warning or fined
simply or concurrently a maximum of two hundred yuan:

    (1) stealing, swindling or seizing a small amount of public or private
property;

    (2) starting a riot to seize state-owned, collective-owned and private
property;

    (3) extorting or demanding with menace public or private property;

    (4) intentionally damaging public or private property.

    Article 24  Whoever commits one of the following acts impairing the
administration of social order shall be detained for a maximum of fifteen
days, fined a maximum of two hundred yuan or given a warning:

    (1) knowingly concealing, destroying or transferring stolen goods but not
serious enough for criminal punishment, or knowingly buying stolen goods;

    (2) illegally dealing in train tickets, ship tickets, admission tickets
for theatrical performances or sports games or other tickets or certificates,
when circumstances are not serious enough for criminal punishment;

    (3) taking opium or injecting morphine and other drugs in violation of the
government’s prohibition;

    (4) disturbing public order, endangering public interests, damaging
others’ physical health or swindling property by way of superstitious sects
and secret societies and feudal superstition activities, when circumstances
are not serious enough for criminal punishment;

    (5) driving others’ motor vehicles without permission;

    (6) pretending to be a social organization to carry on relevant activities
without registration, or still assuming the name of a social organization to
carry out activities where its registration has been revoked or where it has
been dissolved or banned by order, in violation of regulations concerning the
registration of social organizations but not serious enough for criminal
punishment;

    (7) committing the acts violating laws, administrative regulations and
provisions of the public security department under the State Council
concerning supervision and control, by those criminals or offenders who are
serving their terms outsider prison under the criminal punishment of public
surveillance or deprivation of political rights, or under the probation of
suspension of sentence or parole, or under medical treatment on parole, or
under other conditions, or by those who are restrained by cirminal compulsory
measures, when a new crime has not been constituted;

    (8) posing as a state functionary in order to practise fraud, when
circumstrances are not serious enough for criminal punishment.

    Article 25  Whoever commits one of the following acts, from item one to
item three, impairing the administration of social order, shall be fined a
maximum of two hundred yuan or given a warning; anyone committing acts covered
in items four through seven shall be fined a maximum of fifty yuan or given a
warning:

    (1) hiding, not reporting, and not handing in to the state cultural relics
discovered underground, in internal waters, in territorial waters or other
places;

    (2) accepting orders to engrave official seals in violation of
administrative provisions, but not having caused serious consequences;

    (3) deliberately defacing and damaging cultural relics, scenic spots or
historic relics, under protection of the state, and damaging or destroying
sculptures in public places, when circumstances are not serious enough for
criminal punishment;

    (4) deliberately damaging, destroying or removing without approval street
nameplates or traffic markers;

    (5) deliberately damaging, destroying steet lamps, postboxs, public
telephone booths or other public facilities, when circumstances are not
scrious enough for criminal punishment;

    (6) damaging lawns, flowers, shrubs and trees in violation of relevant
regulations;

    (7) operating acoustic equipment in cities and towns at too high a volume
in violation of the relevant regulations, disturbing the neighbouring
residents’ work or rest, and refusing to stop such acts.

    Article 26  Whoever commits one of the following acts, from item one to
item four, violating fire control shall be detained for a maximum of ten days,
fined a maximum of one hundred yuan or given a warning; anyone committing acts
in items five to eight shall be fined a maximum of one hundred yuan or given a
warning:

    (1) smoking and using open fire in places where there are combustibles and
explosive devices, in violation of the prohibitions;

    (2) deliberately blocking the passage of fire engines or fire boats, or
disturbing order at the scene of a fire, when circumstances are not serious
enough for criminal punishment;

    (3) refusing to follow the instructions of the commander at the scene of a
fire and hindering fire fighting and rescue work;

    (4) causing fire by negligence, but not having caused serious damage or
injury;

    (5) instigating or coercing others to work at risk of causing fire in
violation of safety measures against fire, but not having resulted in serious
consequence;

    (6) occupying fire prevention belts, putting up shelters, building houses,
digging trenches or building walls blocking the passage of fire engines in
violation of the safety measures against fire;

    (7) burying, enclosing or damaging and destroying fire-fighting facilities
such as fire hydrants, water pumps, water towers, cisterns, or using such
instruments and equipment for other purposes, and refusing to correct such
acts after being informed by the public security organs;

    (8) being in serious potential danger of fire, but refusing to take
corrective measures after notification by the public security organs.

    Article 27  Whoever commits one of the following acts, from item one to
item six, in violation of traffic regulations shall be detained for a maximum
of fiftcen days, fined a maximum of two hundred yuan or given a warning;
anyone committing acts in items seven to eleven shall be fined a maximum of
fifty yuan or given a warning:

    (1) misappropriating, borrowing or lending vehicle licence plates or a
driver’s licence;

    (2) driving a motor vehicle without a licence or in an intoxicated
condition, or lending a vehicle to a person who drives without a driving
licence;

    (3) blocking traffic by rallying or demonstrating in cities, violating
relevant regulations in disregard of police directions;

    (4) deliberately intercepting or boarding vehicles by force or impeding
the normal operation of vehicles in disregard of dissuasion;

    (5) deliberately passing through an area when passage is forbidden in
express terms by public security organs at or above the county level, in
disregard of dissuasion;

    (6) violating traffic regulations so as to cause traffic accidents, when
circumstances are not serious enough for criminal punishment;

    (7) driving motor vehicles not examined or sanctioned by traffic
administration organs;

    (8) driving motor vehicles with parts not up to safety requirements;

    (9) driving motor vehicles after drinking alcoholic liquor;

    (10) instigating or coercing drivers to violate traffic regulations;

    (11) blocking traffic by putting up shelters, building houses, setting up
stalls, piling up goods or conducting other operations without approval of the
appropriate department.

    Article 28  Whoever commits one of the following acts in violation of
traffic regulations shall be fined a maximum of five yuan or given a warning:

    (1) driving a motor vehicle in violation of stipulations concerning
loading and speed or in violation of directions indicated by traffic signs and
signals;

    (2) breaking of traffic regulations by non-motorized vehicle users or
pedestrians;

    (3) parking vehicles in places where parking is forbidden in express terms
by traffic administration organs;

    (4) illegally installing or using special sirens or signal light equipment
in motor vehicles.

    Article 29  Whoever commits one of the following acts, from item one to
item three, in violation of residence control or administration of resident
cards shall be fined a maximum of fifty yuan or given a warning; whoever
commits an act in item four or item five shall be fined a maximum of one
hundred yuan or given a warning:

    (1) failing to register for residence or apply for a resident card
according to regulations, in disregard of the notice of the public security
organs;

    (2) faking a residence registration or assuming another person’s residence
registration or resident card;

    (3) deliberately altering a residence certificate;

    (4) failing to register hotel guests according to regulations;

    (5) failing to report and register lodgers according to regulations in
letting a house or bed to another person.

    Article 30  Prostitution, whoring, pandering or housing prostitution or
whoring with a prostitute is strictly forbidden. Whoever breaks the above ban
shall be detained for a maximum of fifteen days, given a warning, made to sign
a statement of repentance or given re-education through labour according to
regulations, and may be concurrently fined a maximum of five thousand yuan.
Criminal responsibility shall be investigated if the actions constitute a
crime.

    Whoring with a girl under the age of fourteen shall be dealt with as rape
according to the provisions of Article 139 of the Criminal Law.

    Article 31  Planting opium poppy and other raw narcotics in violation of
government decrees is strictly forbidden. Whoever violates the above decree
shall be detained for a maximum of fifteen days and may be fined simply or
concurrently a maximum of three thousand yuan, in addition to having his opium
poppy and other narcotic plants rooted out; criminal responsibility shall be
investigated if the actions constitute a crime.

    Whoever transports, deals in, stores or uses poppy shells illegally shall
b

CIRCULAR OF THE STATE ADMINISTRATION FOR IMPORT AND EXPORT COMMODITY INSPECTION AND THE MINISTRY OF FINANCE FOR ISSUING THE MEASURES ON ADMINISTRATION OF THE APPRAISAL OF ASSETS INVESTED BY FOREIGN BUSINESSMEN

The State Administration for the Inspection of Import and Export Commodity, the Ministry of Finance

Circular of the State Administration for Import and Export Commodity Inspection and the Ministry of Finance for Issuing the Measures
on Administration of the Appraisal of Assets Invested by Foreign Businessmen

GuoJianJianLian [1994] No.78

March 18, 1994

All directly subordinate bureaus for the commodity inspection, the departments (bureaus) of finance of the various provinces, autonomous
regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:

In order to benefit the establishment of the normal order of investment,conduct the healthy development of the foreign businessmen’s
investment and further ensure a correct appraisal to the assets put in by foreign businessmen as investment,the State Administration
of Commodity Inspection and Ministry of Finance draw together the the Measures on Administration of the Appraisal of Assets Invested
by Foreign Businessmen and are now issuing it to you for implementation.You are requested to transmit it to the local bureaus for
the commodity inspection,departments of finance,accounting firms and related units of dominated regions for implementation.

Attachment:Measures on Administration of the Appraisal of Assets Invested by Foreign Businessmen

Chapter I General Provisions

Article 1

These measures are enacted to ensure a correct appraisal to the assets put in by foreign businessmen as investment, so as to protect
the lawful rights and interests of all investors in the introduction of foreign capital by the country, in accordance with Article
33 of the Regulations for the Implementation of the Law of the People’s Republic of China on Import and Export Commodities Inspection
(hereinafter referred to as “Regulations for the Implementation of Commodity Inspection Law”), and according to Article 29 of the
Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises, as well as relevant State
laws and administrative decrees.

Article 2

These measures apply to the appraisal of assets that is invested by overseas (including Hong Kong, Macao and Taiwan) firms, businesses,
other economic entities, or individuals (hereinafter referred to as “foreign businessmen”) in enterprises with foreign investment
of various kinds or in compensation trade conducted in various kinds or in compensation trade conducted in China, or assets bought
outside China by agents entrusted by enterprises with foreign investment.

Article 3

The State Administration of Import and Export Commodities Inspection of the People’s Republic of China (hereinafter referred to as
the “State Administration of Commodity Inspection”) is in charge of the appraisal of assets invested by foreign businessmen throughout
the country. The State Administration of Commodity Inspection shall set up local import and export commodities inspection bureaus
(hereinafter referred to as “local bureaus of commodity inspection”) to take charge of and handle the appraisal of the assets invested
by foreign businessmen in localities. The local bureaus of commodity inspection shall set up property appraisal offices and other
joint assets assessment ventures (hereinafter referred to as “other appraisal organs”) to handle the appraisal of assets invested
by foreign businessmen according to Article 8 of these measures.

Article 4

The Ministry of Finance of the People’s Republic of China is in charge of the inspection of assets invested by foreign businessmen
and related financial affairs nationwide. Local financial departments are in charge of the inspection of assets invested by foreign
businessmen and related financial affairs in their own localities. Accounting firms approved by the Ministry of Finance and local
financial departments shall be responsible for arranging for the inspection of assets invested by foreign businessmen.

Article 5

The appraisal of assets invested by foreign businessmen shall adhere to the principle of truthfulness, fairness, scientific, and feasible
and be handled according to means and standards of international practices, and stipulated by the State.

Article 6

The appraisal of assets invested by foreign businessmen includes such contexts of category, quality, quantity, value, and loss. In
context of category, quality and quantity, the appraisal involves the post_titles, model numbers, quality, quantity, specifications, trade
mark, extent of wear, release dates, producing country, and manufacturers of the assets. In context of value, it is to appraise the
current prices of the assets invested by foreign businessmen. In context of loss, it is to appraise cause, extent, charges for settlement,
and salvage value of losses of the assets invested by businessmen caused by natural disasters and accidents.

Article 7

After appraising the assets invested by foreign businessmen, the local commodity inspection bureaus and other appraisal offices shall
issue an appraisal certificate. The certificate for value is a valid document to approve the value of assets invested by all investors.

The accounting firms of all localities shall assess the assets invested by foreign businessmen according to the value appraisal certificate
issued by the commodity inspection bureau and other appraisal offices.

Chapter II Organization and Management

Article 8

The setting up of assets appraisal offices or joint venture assets assessment offices to carry out the work of appraisal prescribed
by these measures by local commodity inspection bureaus shall be under the examination and approval by the State Administration of
Commodity Inspection and the Ministry of Finance, and be noticed to local accounting firms and other related departments.

Article 9

Personnel for appraisal of assets invested by foreign businessmen can only be qualified to do such a work through attending a formal
training organized by the State Administration of Commodity Inspection for such a purpose and passing tests thereof and obtaining
a certificate from the latter for such a qualification.

Chapter III Methods and Procedures for Appraisal

Article 10

In appraisal of the assets invested by foreign businessmen, the appraisal methods and related regulations prescribed by these measures
shall be used to determine the actual current conditions, extent of wear, functional index, technical parameters, profitability,
and cost of replacement of the assets concerned.

Article 11

The appraisal methods consist of on-the-spot examination, technical tests, and value rating. The method of value rating includes the
following means:

(1)

Market method;

(2)

Cost method;

(3)

Income method;

(4)

Other methods stipulated by the Ministry of Finance and State Administration of Commodity Inspection.

Article 12

When the market method is applied to the appraisal of the assets invested by foreign businessmen, the value of the assets should be
assessed with reference to the current market prices of like or similar assets.

Article 13

When adopting the cost method to appraise the assets invested by foreign businessmen, one should determine the reassessed value of
the assets concerned by subtracting the accumulated depreciation amount based on the cost of replacement from the cost of replacement
of brand- new assets of the same kind, taking into account changes in the production capability and percentage of newness. Or one
can get the reassessed value according to the current condition and life expectancy of the assets appraised, taking into account
changes in its functions and re-determining its percentage of newness.

Article 14

When adopting the income method to the appraisal of the assets invested by foreign businessmen, one should calculate the current value
of the assets to be appraised according to the reasonable expected profitability of the assets and appropriate discount rate.

Article 15

The appraisal of assets invested by foreign businessmen shall be carried out according to the following procedures:

(1)

The applicant submits an application for the appraisal;

(2)

The appraisal organ makes an initial examination of the data and accepts the application;

(3)

The appraisal personnel draw up a plan for the appraisal;

(4)

The certificates and data provided by the applicant shall be examined and checked, and a survey shall be made of the markets as home
and abroad.

(5)

On-the-spot examination;

(6)

A suitable appraisal method is selected;

(7)

An appraisal certificate is issued.

Article 16

In applying for an appraisal of assets invested by foreign businessmen, the applicant should fill in an application form with the
outline of the object, target, and requests of the appraisal. At the same time appropriate documents and data on inventory of the
property, customs declaration, contract, invoices, insurance policy, maintenance expenses, and equipment and technology should be
provided.

Article 17

Upon the receipt of an application for the appraisal of assets invested by foreign businessmen, local commodity inspection bureaus
and other appraisal organs shall first of all see that whether the application form filled out by the applicant and other related
data submitted are complete and then demand the temporary sealing of the assets that should keep their current conditions for the
appraisal.

Article 18

The appraisal personnel should carry out the operation of appraisal according to the appraisal procedures. When conducting on-the-
spot examination and appraisal, they must check the items for appraisal one by one. If necessary, they can ask related persons of
the assets for supplementary explanation. After concluding the appraisal, they should issue an appraisal certificate in time.

Article 19

Should there be any objections to the results of the appraisals by the applicants, an application for re-appraisal can be made to
the commodity inspection bureau that produces the result, or to a higher-level commodity inspection bureau, or even to the State
Administration of Commodity Inspection. The specific procedure is defined in the “Re-Inspection Measures for Import and Export Commodities.”

Chapter IV Legal Liability

Article 20

Those who forge or falsify certificates issued by the commodity inspection bureau or other appraisal organs shall be punished according
to the related provisions of the “Regulations for the Implementation of the Commodity Inspection Law.”

Article 21

If the personnel for appraisal produce an untrue or false result due to dereliction of duty or for personal gains, they shall be punished
according to the related provisions of the “Regulations for the Implementation of the Commodity Inspection Law.”

Article 22

The appraisal personnel shall not provide a third party with related circumstances and data of the appraisals (except otherwise stipulated
by law). Those who fail to observe the above provision and bring harmful result shall be punished according to the seriousness of
the case.

Article 23

Local accounting firms or registered accountants shall be punished by the finance department in charge according to related provisions
of the “Registered Accountants Law of the People’s Republic of China” upon their violations to Article 7 (Part 2) of these measures.

Article 24

Should a party concerned refuse to accept a punishment meted out by the commodity inspection bureau or finance department, an application
for reconsideration can be made to the organ that imposes the punishment or to its higher authorities within 30 days after the receipt
of the punishment notice. Should the reconsidered decision be again refused, the case may be brought up to the people’s court within
30 days after the receipt of the reconsidered decision.

Upon an refusal to observe the punishment without an application for reconsideration be made or a case be brought to the court within
the time limit, the commodity inspection bureau or finance department that imposes the punishment shall apply to the people’s court
for compulsory execution.

Chapter V Supplementary Provisions

Article 25

During an appraisal made by the related personnel on the assets, the applicant for making the appraisal should provide necessary work
conditions, assistants, and appliances.

Article 26

For doing the job of appraisal of assets invested by foreign businessmen according to these measures, the local commodity inspection
bureaus and other appraisal organs shall charge the applicant for the appraisal a certain fee according to the related State regulations.

Article 27

These measures shall be interpreted by the State Administration of Commodity Inspection and the Ministry of Finance. If any regulations
enacted by localities or departments on the appraisal of assets invested by foreign businessmen contravene these measures, these
measures shall prevail.

Article 28

These measures shall enter into force as of May 1, 1994.



 
The State Administration for the Inspection of Import and Export Commodity, the Ministry of Finance
1994-03-18

 






REGULATIONS GOVERNING THE REGISTRATION OF SHIPS

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In force
Date of Promulgation  1994-06-02 Effective Date  1995-01-01  


Regulations of the People’s Republic of China Governing the Registration of Ships

Chapter I  General Provisions
Chapter II  Registration of Ownership of Ships
Chapter III  Nationality of Ships
Chapter IV  Registration of Ship Mortgage
Chapter V  Registration of Bareboat Charter
Chapter VI  Ship’s Mark and Company Flag
Chapter VII  Alteration and Deletion of Registration
Chapter VIII  Renewal and Re-issue of Certificate of Registration of
Chapter IX  Legal Liability
Chapter X  Supplementary Provisions

(Promulgated by Decree No.155 of the State Council of the People’s

Republic of China on June 2, 1994, and effective as of January 1, 1995)
Chapter I  General Provisions

    Article 1  These Regulations are enacted with a view to strengthening the
supervision and control over ships by the State, and safeguarding the
legitimate rights and interests of the parties involved in the registration of
ships.

    Article 2  The following ships shall be registered in accordance with the
provisions of these Regulations:

    (1) Ships owned by citizens of the People’s Republic of China whose
residences or principal places of business are located within the territory
thereof;

    (2) Ships owned by enterprises with legal person status established under
the laws of the People’s Republic of China and whose principal places of
business are located within the territory thereof, provided that foreign
investment is involved, the proportion of registered capital contributed by
Chinese investors shall not be less than 50 per cent;

    (3) Service ships of the Government of the people’s Republic of China and
ships owned by institutions with legal person status;

    (4) Other ships whose registration is deemed neccessary by the competent
authority of harbour superintendency of the People’s Republic of China.

    Military ships, fishery ships and sports craft shall be registered in
compliance with the provisions of the relevant laws and regulations.

    Article 3  Sailing ships are allowed to fly the national flag of the
People’s Republic of China after being registered and granted the nationality
of the People’s Republic of China. No ship may fly the national flag of the
People’s Republic of China without being registered during navigation.

    Article 4  A ship shall not have dual nationality. A ship registered
abroad shall not be granted the Chinese nationality unless its former
registration of nationality has already been suspended or deleted.

    Article 5  The acquisition, transference or extinction of the ownership of
a ship shall be registered at the Ship Registration Administration; no
acquisition, transference or extinction of the ship’s ownership shall act
against a third party unless registered.

    Where a ship is jointly owned by two or more legal persons or individuals,
the joint ownership thereof shall be registered at the Ship Registration
Administration. The joint ownership of the ship shall not act against a third
party unless registered.

    Article 6  The establishment, transference or extinction of ship mortgage
or bareboat chartering shall be registered at the Ship Registration
Administration. No mortgage or bareboat chartering shall act against a third
party unless registered.

    Article 7  Ships of Chinese nationality shall be manned by Chinese
citizens. In case it is neccessary to recruit foreign seafarers, their
employment shall be approved by the competent authority of transport and
communications under the State Council.

    Seafarers on board ships of Chinese nationality who are required to
possess certificates of competency shall hold the appropriate certificates of
competency issued by the People’s Republic of China.

    Article 8  The Harbour Superintendency Administration of the People’s
Republic of China is the competent authority in charge of registration of
ships.

    The Harbour Superintendency Administrations at various ports are the
proper agencies conducting the registration of ships (hereinafter referred to
as the Ship Registration Administration). The scope of authority thereof shall
be defined by the Harbour Superintendency Administration of the People’s
Republic of China.

    Article 9  The port where a ship is registered shall be the port of
registry of the ship.

    The owner of a ship may choose a port closer to his residence or his
principal place of business as the port of registry, but he is not allowed to
choose two or more ports as the port of registry.

    Article 10  Each ship shall have only one name.

    The name of a ship shall be checked and approved by the Ship Registration
Administration at its port of registry. A ship’s name shall not be the same as
any of those that have already been registered, neither in wording nor in
pronunciation.

    Article 11  The Ship Registration Administration shall establish a
Register of Ships.

    The Register of Ships shall be accessible to those having an interest
therein.

    Article 12  With respect to a State-owned ship operated by an enterprise
owned by the whole people having a legal perpon status granted by the state,
the provisions of these Regulations concerning the shipowner shall be
applicable to that legal person.
Chapter II  Registration of Ownership of Ships

    Article 13  A shipowner applying for registration of the ownership of a
ship shall produce to the Ship Registration Administration at the port of
registry the documents evidencing his legal status, and submit the originals
and/or copies of the documents evidencing his ownership over the ship and the
technical information thereof.

    For the registration of ownership of a ship purchased, the following
documents shall be submitted:

    (1) Seller’s invoice, sales contract and delivery document;

    (2) Document issued by the ship registration authority at the original
port of registry certifying the deletion of the ownership;

    (3) Document evidencing that the ship is not under mortgage or that the
mortgagees agree to the transference of the mortgaged ship.

    For the registration of ownership of a newly-built ship, the contract of
ship construction and the delivery document shall be submitted. For the
registration of ownership of a ship under construction, the contract of ship
construction shall be submitted. For the registration of ownership of a ship
built by oneself for one’s own use, a document evidencing the procurement of
ownership shall be submitted.

    For the registration of ownership of a ship procured through heritage,
presentation, auction under legal process, or court judgement, a document with
appropriate legal effect evidencing the ship’s ownership shall be submitted.

    Article 14  The Ship Registration Administration, having examined and
verified the application for registration of ownership, shall issue to the
shipowner whose application meets the requirements of these Regulations the
Certificate of Registration of Ship’s Ownership within 7 days after the date
of receipt of the application, whereupon an official registration number shall
be granted to the registered ship and the following particulars shall be
recorded in the Register of Ships:

    (1) Ship’s name and its call sign;

    (2) Port of registry, official registration number and identification mark
of the ship;

    (3) Name and address of the shipowner and name of his legal representative;

    (4) Way in which the ship’s ownership was procured and the date of
procurement;

    (5) Date on which the ship’s ownership was registered;

    (6) Name of ship builder, and time and place of building;

    (7) Value of the ship, material of ship’s hull and ship’s main technical
information;

    (8) Original name and port of registry of the ship and the date of deletion
or suspension of its original registration;

    (9) Information about joint ownership if the ship is owned by two or more
owners;

    (10) Name and address of bareboat charterer or ship operator, and name of
his legal representative, if the shipowner is not the one who operates or
actually controls the ship;

    (11) Information about the establishment of mortgage, if any.

    The Ship Registration Administration shall inform the shipowner in writing
of any non-compliance of his application with these Regulations within 7 days
after the date of receipt of the application.
Chapter III  Nationality of Ships

    Article 15  A shipowner applying for the nationality of a ship shall, in
addition to the Certificate of Registration of Ship’s Ownership, submit the
following documents according to the ship’s navigation zone:

    (1) For ships engaged in international voyages, the valid technical
documents of the ship issued by an authorized organization for survey of
ships in accordance with the type of the ship:

    (a) Tonnage Measurement Certificate;

    (b) Loadline Certificate;

    (c) Cargo Ship Safety Construction Certificate;

    (d) Cargo Ship Safety Equipment Certificate;

    (e) Passenger Quota Certificate;

    (f) Passenger Ship Safety Certificate;

    (g) Cargo Ship Safety Radiotelegraphy Certificate;

    (h) International Oil Pollution Prevention Certificate;

    (i) Ship Safety Navigation Certificate;

    (j) Other relevant technical certificates.

    (2) For a ship engaged in domestic voyages, the ship survey book issued by
an authorized organization for survey of ships and other valid technical
certificates according to the type of the ship.

    A shipowner applying for the Chinese nationality of a ship of foreign
nationality purchased abroad which still has the foreign nationality, shall
submit a certificate issued by the original ship registration authority at the
former port of registry to the effect that the former nationality has been
deleted or that the former nationality will be immediately deleted at such
time as the new registration is effected.

    The Ship Registration Administration shall issue a Certificate of Ship’s
Nationality to the ship whose application has been examined and approved to be
in compliance with these Regulations.

    Article 16  Subject to its approval, the Ship Registration Administration
shall issue the Certificate of Ship’s Nationality to a ship registered under
Article 13 of these Regulations. The validity period of the Certificate of
Ship’s Nationality shall be 5 years.

    Article 17  For a ship newly built in this country and sold overseas, the
shipowner shall apply to the Ship Registration Administration at the place of
construction for a Provisional Certificate of Ship’s Nationality by submitting
the document evidencing the ownership of the ship, and the valid technical
certificate thereof.

    For a newly-built ship purchased from overseas, the shipowner shall apply
to the local Embassy or Consulate of the People’s Republic of China for a
Provisional Certificate of Ship’s Nationality by submitting the document
evidencing the ownership of the ship and its valid technical certificates.

    For a ship built in a place of this country other than its intended port
of registry, the shipowner who needs a Provisional Certificate of Ship’s
Nationality, shall apply to the Ship Registration Administration at the place
of ship building for the certificate by submitting the contract of ship
construction, the delivery document and its valid technical certificates.

    For a ship built overseas, the shipowner shall apply to the local Embassy
or Consulate of the People’s Republic of China for a Provisional Certificate
of Ship’s Nationality by submitting the contract of ship construction, the
delivery document and the valid technical certificates of the ship.

    For a ship bareboat chartered overseas, the bareboat charterer shall apply
to the Ship Registration Administration for a Provisional Certificate of
Ship’s Nationality by submitting the bareboat charter party and the
certificate issued by the ship registration authority at the former port of
registry to the effect that the former nationality of the ship has been
suspended or deleted, or that the former nationality of the ship will be
suspended or deleted immediately at such time as the new registration is
effected.

    The Ship Registration Administration or the local Embassy or Consulate of
the People’s Republic of China, having examined and verified that the
application is in compliance with these Regulations, shall issue a Provisional
Certificate of Ship’s Nationality to the ship.

    Article 18  The validity period of a Provisional Certificate of Ship’s
Nationality shall generally not exceed 1 year.

    For a ship which is bareboat chartered overseas, the validity period of
the Provisional Certificate of Ship’s Nationality can be determined according
to the charter period, but shall not exceed 2 years. Where the charter period
exceed 2 years, the charterer shall, within the period of validity, apply to
the Ship Registration Administration at ship’s port of registry for the
renewal of its Provisional Certificate of Ship’s Nationality.

    Article 19  The Provisional Certificate of Ship’s Nationality shall have
the same legal effect as the Certificate of Ship’s Nationality.
Chapter IV  Registration of Ship Mortgage

    Article 20  Where mortgage is established with respect to a ship of 20
tons gross tonnage or over, the mortgagee and the mortgagor shall apply to the
Ship Registration Administration at the ship’s port of registry for the
registration of ship mortgage by submitting the following documents:

    (1) Written application signed by both mortgagee and mortgagor;

    (2) Certificate of Ship’s Ownership or contract of ship construction;

    (3) Contract of ship mortgage.

    If there are other mortgages established on the ship, the relevant
certificates shall be submitted.

    Where mortgage is established on a jointly-owned ship, the joint owners
shall, in addition, submit a document evidencing the agreement by the joint
owners holding more than two-thirds or contracted proportion of shares thereof.

    Article 21  After the application has been examined and verified to be in
compliance with these Regulations, the Ship Registration Administration shall,
within 7 days after the date of receipt of the application, record matters
regarding the mortgagee, the mortgagor and the ship as well as the date of
mortgage registration in the register of ships and the Certificate of Ship’s
Ownership, and issue the Certificate of Registration of Ship Mortgage to the
mortgagee.

    Article 22  The registration of ship mortgage shall specify the following
items:

    (1) Name and address of mortgagee and name and address of mortgagor;

    (2) Name and nationality of the mortgaged ship, the number of the
Certificate of Registration of Ship’s Ownership and the post_title of the
administration that issued the certificate;

    (3) Amount of debt secured, interest rate and payoff period.    

    The Ship Registration Administration should make the information about the
registration of ship mortgage available to the public.

    Article 23  In case of mortgage transference, the mortgagee and the
transferee shall apply to the Ship Registration Administration at the ship’s
port of registry for registration of the mortgage transference by submitting
the contract of ship mortgage transference.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration shall record the transferee as the mortgagee in the register of
ships and in the Certificate of Registration of Ship’s Ownership, issue to the
transferee a Certificate of Registration of Ship’s Mortgage, and seal up the
former Certificate of Registration of Ship’s Mortgage.

    The mortgagee shall notify the mortgagor of the mortgage transference
prior to its registration thereof.

    Article 24  Where two or more mortgages are established on the same ship,
the Ship Registration Administration shall make the registration in sequence
of the dates on which the applications were registered, and indicate the dates
of registration in the Register of Ships.

    The date on which the application is registered shall be the date of
registration. In case two or more applications are made on the same day, the
dates of registration shall be the same.
Chapter V  Registration of Bareboat Charter

    Article 25  In any of the following cases, the shipowner and the charterer
shall apply for the registration of bareboat charter:

    (1) A ship of Chinese nationality bareboat chartered to a Chinese
enterprise;

    (2) A ship of foreign nationality bareboat chartered to a Chinese
enterprise;

    (3) A ship of Chinese nationality bareboat chartered overseas.

    Article 26  Where a ship is chartered within the territory of this
country, the shipowner and the charterer shall, prior to the commencement of
the charter, apply to the Ship Registration Administration at the ship’s port
of registry for the registration of the bareboat charter by submitting the
Certificate of Registration of Ship’s Ownership, the Certificate of Ship’s
Nationality and the text and the copy of the bareboat charter party.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration at the port of registry shall record the main points of the
bareboat charter in the Certificate of Registration of Ship’s Ownership and
the Register of Ships respectively, and issue the Certificate of Registration
of Bareboat Charter to the shipowner and the charterer.

    Article 27  Where a ship is bareboat chartered overseas, the shipowner
shall apply to the Ship Registration Administration at the port of registry
for registration of the bareboat charter by submitting the documents specified
in Article 26 of these Regulations.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration shall suspend or delete the nationality of the ship in
accordance with Article 42 of these Regulations and issue to the applicant the
Certificate of Registration of Bareboat Charter in duplicate.

    Article 28  Where a ship is bareboat chartered from overseas, the
charterer shall choose the port of registry for the ship according to Article
9 of these Regulations and apply, prior to the commencement of the charter, to
the Ship Registration Administration for registration of the bareboat charter
by submitting the following documents:

    (1) The text and copy of the bareboat charter party;

    (2) Ship’s valid technical certificates issued by an authorized
organization for ship survey;

    (3) A certificate issued by the ship registration authority of the former
port of registry to the effect that the former nationality of the ship has
been suspended or deleted, or that the former nationality of the ship will be
suspended or deleted immediately when the new registration is effected.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration shall issue the Certificate of Registration of Bareboat Charter
and the Provisional Certificate of Ship’s Nationality in accordance with
Article 17 of these Regulations, and record the original country of
registration in the Register of Ships.

    Article 29  In case the bareboat charter period is to be extended, the
shipowner and the charterer shall, 15 days prior to the expiration of the
charter period, apply to the Ship Registration Administration for the renewal
of the bareboat charter registration by submitting texts and copies of the
Certificate of Registration of Bareboat Charter and the contract for extension.

    Article 30  During the period of the bareboat charter, the charterer shall
not apply for the registration of subletting the charter unless agreed by the
shipowner in writing.
Chapter VI  Ship’s Mark and Company Flag

    Article 31  A ship shall be marked as follows:

    (1) Ship’s name in Chinese on both sides of the stem and at the stern;

    (2) Port of registry below the name at the stern;

    (3) The corresponding Chinese phonetic alphabets below the ship’s name and
port of registry;

    (4) Draft scale on both sides of the stem and at the stern;

    (5) Loadline mark at midship, both sides.

    Where a ship being constrained by its type and size is unable to be marked
as above, it shall be marked with its name and port of registry at an
easily-seen position.

    Article 32  A shipowner may apply to the Ship Registration Administration
at the port of registry for registration of the ship’s funnel mark and its
company flag by submitting the drawings of the standard design in compliance
with the stipulations.

    Article 33  Ships belonging to one company shall only use the same funnel
mark and the same company flag.

    The funnel mark and the company flag of a company shall be examined by the
Ship Registration Administration at the port of registry.

    The funnel mark and the company flag of a company shall not be the same as
or similar to those which have been registered previously.

    Article 34  The Ship Registration Administration shall publicize the
funnel mark and company flags which have been approved and registered.

    The registered funnel mark and company flags shall be used exclusively by
the applicant and shall not be used by other ships or companies.
Chapter VII  Alteration and Deletion of Registration

    Artlcle 35  In case of any alteration to the entries of the ship
registration, the shipowner shall apply to the Ship Registration
Administration at the port of registry for the registration of alteration by
submitting the relevant documents of ship registration and those evidencing
such alteration.

    Article 36  In case a ship’s port of registry is to be changed, the
shipowner shall apply to the Ship Registration Administration at the former
port of registry for registration of the change by submitting the ship’s
Certificate of Nationality and the document evidencing such a change. After
the application has been examined and verified to be in compliance with the
requirements of these Regulations, the Ship Registration Administration at the
former port of registry shall indicate the change in the column of
“Alteration” in the Certificate of Ship’s Nationality and deliver the entire
file of the ship’s registration to the Ship Registration Administration at the
new port of registry where the shipowner shall apply again for new
registration thereof.

    Article 37  In case of any change of joint ownership, the shipowners shall
apply to the Ship Registration Administration at the port of registry for
registration of the change by submitting the Certificate of Registration of
Ship’s Ownership and the document evidencing such change.

    Article 38  In case the contract of ship’s mortgage is changed, the
mortgagee and the mortgagor shall apply to the Ship Registration
Administration for registration of such a change by submitting the Certificate
of Registration of Ship’s Ownership, the Certificate of Registration of Ship’s
Mortgage and the document evidencing such change.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration at the port of registry shall indicate the change of the
mortgage contract in the Certificate of Registration of Ship’s Ownership, the
Certificate of Registration of Ship’s Mortgage and the Registry of Ships.

    Article 39  In case of transference of ship’s ownership, the former
shipowner shall apply to the Ship Registration Administration at the port of
registry for the registration of deletion by submitting the Certificate of
Ship’s Ownership, Certificate of Ship’s Nationality and other relevant
documents.

    After the application has been examined and verified to be in compliance
with the requirements of these Regulations, the Ship Registration
Administration at the port of registry shall delete the registration regarding
ship’s ownership and other relevant registrations in the Register of Ships,
withdraw the certificates of registration concerned, and issue a certificate
of deletion of ship’s registration to the shipowner. If the ship is sold
overseas, the Ship Registration Administration shall issue a certificate to
the effect that the ship’s nationality has been deleted, or that the ship’s
nationality will be deleted immediately when the ship is registered anew.

    Article 40  In case a ship is lost (dismantled or sunken included) or
missing, the shipowner shall, within 3 months after the ship is lost
(dismantled or sunken) or missing, apply to the Ship Registration
Administration at the port of registry for the registration of deletion by
submitting the Certificate of Registration of Ship’s Ownership, Certificate of
Ship’s Nationality and the document evidencing that the ship has been lost
(dismantled or sunken) or missing. After the application has been examined and
verified to be in compliance with the requirements of these Regulations, the
Ship Registration Administration shall delete the ship’s registration in the
Register of Ships, withdraw the certificates of registrations concerned, and
issue a certificate of deletion to the shipowner.

    Article 41  In case a contract of mortgage is terminated, the mortgagee
and the mortgagor shall apply to the Ship Registration Administration at the
port of registry for the registration of deletion by submitting the
Certificate of Registration of Ship’s Ownership, Certificate of Registration
of Ship’s Mortgage and the document signed by the mortgagee evidencing the
termination of the mortgage contract. After the application has been examined
and verified to be in compliance with the requirements of these Regulations,
the Ship Registration Administration at the port of registry shall delete the
registrations of the ship’s mortgage in the Certificate of Ship’s Ownership
and the Register of Ships.

    Article 42  In case a ship is bareboat chartered overseas, the shipowner
shall, in addition to applying for registration of bareboat charter in
accordance with Article 27 of these Regulations, apply for registration of
suspension or deletion of the ship’s nationality. The Ship Registration
Administration at the port of registry

PROVISIONS ON THE ADMINISTRATION OF RELIGIOUS ACTIVITIES OF ALIENS WITHIN THE TERRITORY

Category  RELIGIOUS AFFAIRS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-01-31 Effective Date  1994-01-31  


Provisions on the Administration of Religious Activities of Aliens Within the Territory of the People’s Republic of China



(Promulgated by Decree No.144 of the State Council of the People’s

Republic of China on January 31, 1994)

    Article 1  These Provisions are formulated in accordance with the
Constitution in order to ensure the freedom of religious belief of aliens
within the territory of the People’s Republic of China and to maintain the
public interests of the society.

    Article 2  The People’s Republic of China respects the freedom of
religious belief of aliens within Chinese territory and protects friendly
contacts and cultural and academic exchanges of aliens with Chinese religious
circles in respect of religion.

    Article 3  Aliens may participate in religious activities at Buddhist
monasteries, Taoist temples, mosques, churches and other sites for religious
activities within Chinese territory. Aliens may preach and expound the
scripture at Chinese sites for religious activities at the invitation of
Chinese religious bodies at or above the level of province, autonomous region
and municipality directly under the Central Government.

    Article 4  Aliens may hold religious activities attended by aliens at the
sites for religious activities approved by the department of religious affairs
of the people’s government at or above the county level.

    Article 5  Aliens within Chinese territory may invite Chinese religious
personnel to conduct such religious ceremonies as baptism, weddings, funerals,
Taoist and Buddhist rites.

    Article 6  Aliens entering Chinese territory may carry religious printed
matter, religious audio-visual products and other religious articles for
personal use; if the amount of such religious printed matters, religious
audio-visual products and other religious articles is greater than for
personal use, it shall be dealt with in accordance with the provisions of the
Chinese Customs.

    Religious printed matter or religious audio-visual products whose contents
are detrimental to the public interests of Chinese society are forbidden to
bring into Chinese territory.

    Article 7  Aliens within Chinese territory shall recruit the persons to
study abroad to be trained as religious personnel, or come to study or teach
at Chinese religious institutions in accordance with the relevant provisions
of China.

    Article 8  Aliens who conduct religious activities within Chinese
territory shall abide by Chinese laws and regulations, shall not establish
religious organizations, set up religious offices, sites for religious
activities or run religious institutions within Chinese territory, not may
they develop followers, appoint religious personnel or engage in other
missionary activities.

    Article 9  Where aliens conduct religious activities that violate these
Provisions, the departments of religious affairs and other related departments
of the people’s government at or above the county level shall dissuade or stop
them; where those activities violate the control of the entry and exit of
aliens or administration of public security, the public security organs shall
punish them in accordance with the law; where a crime is constituted, they
shall be investigated for their criminal responsibility by the judicial organs.

    Article 10  These Provisions are applicable to religious activities of
foreign bodies within Chinese territory.

    Article 11  Chinese citizens residing abroad within Chinese territory,
Taiwan residents on the Mainland, the residents of Hong Kong and Macao in the
inland shall conduct religious activities with reference to these Provisions.

    Article 12  The department of religious affairs of the State Council shall
be responsible for the interpretation of these Provisions.

    Article 13  These Provisions shall enter into force as of the date of
promulgation.





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE APPLICATION OF PROVISIONAL REGULATIONS ON SUCH TAXES AS VALUE-ADDED TAX, CONSUMPTION TAX AND BUSINESS TAX TO ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

Decision of the Standing Committee of the National People’s Congress Regarding the Application of Provisional Regulations on Such
Taxes as Value-added Tax, Consumption Tax and Business Tax to Enterprises with Foreign Investment and Foreign Enterprises










(Adopted at the Fifth Meeting of the Standing Committee of the Eighth National People’s Congress on December 29,
1993 and promulgated by Order No. 18 of the President of the People’s Republic of China on December 29, 1993) 

The Fifth Meeting of the Standing Committee of the Eighth National People’s Congress, having considered the Proposal submitted by
the State Council on the Application of the Provisional Regulations on Such Taxes as Value-added Tax, Consumption Tax and Business
Tax to Enterprises with Foreign Investment and Foreign Enterprises, with a view to unifying the tax system, balancing the tax burden,
improving the investment environment of our country, and catering for the need of establishing and developing the socialist market
economy, specifically  makes the following decisions:  

1. Prior to the formulation of the relevant tax laws, the Provisional Regulations on Value-added Tax, the Provisional Regulations
on Consumption Tax and the Provisional Regulations on Business Tax promulgated by the State Council shall be applicable to enterprises
with foreign investment  and foreign enterprises as of the date of January 1, 1994. The Regulations of the People’s Republic 
of China on Industrial and Commercial Consolidated Tax (Draft) adopted in principle at the 101st Meeting of the Standing Committee
of the National People’s Congress on September 11, 1958 and promulgated by the State Council for trial implementation on September
13, 1958 shall be annulled on the same date.    

Value-added Tax for the Chinese-foreign co-operative exploitation of offshore oil and natural gas shall be collected in kind. The
tax rates and measures of collection shall be separately formulated by the State Council.  

2. Where the tax burden of the enterprises with foreign investment established with due approval before the date of December 31,
1993 increases due to the change to the levy of Value-added Tax, Consumption Tax and Business Tax pursuant to Article 1 of this Decision,
such enterprises may, upon application to and with the approval  of the tax authorities, have a refund of the excess tax paid
due to such increased tax burden for a maximum period of five years within the approved term of operation. Where there is no fixed
term of operation, the enterprises may,  upon application to and with the approval  of the tax authorities, have a refund
of the excess tax paid due to such increased tax burden for a maximum period of five years. The specific measures shall be formulated
by the State Council. 

3. Apart from Value-added Tax, Consumption Tax and Business Tax, the application of other types of tax to enterprises with foreign
investment  and foreign enterprises shall be governed by the laws wherein there are such provisions, and shall be governed by
the provisions of the State Council in the absence of such legal provisions.   

Enterprises with foreign investment referred to in this Decision mean Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and wholly foreign-owned enterprises established within the territory of China. 

Foreign enterprises referred to in this Decision mean foreign companies, enterprises and other economic organizations which have
establishments or places within the territory of China to engage in production or business operations, or which, though have no establishments
or places, have income sourced within the territory of China. 

This Decision shall go into effect as of the date of promulgation. 

 

Appendix 1: 

Provisional Regulations of the People’s Republic of China on Value-added Tax 

(Adopted at the 12th Executive Meeting of the State Council on November 26, 1993, promulgated by Decree No.134 of the State Council
of the People’s Republic of China and effective as of January 1, 1994) 

Article 1 Units and individuals in the territory of the People’s Republic of China  that sell goods, provide processing or repair
and replacement services or import goods shall be payers of value-added tax (hereafter, “taxpayers”) and shall pay value-added tax
in accordance with these Regulations. 

Article 2 The value-added tax rates shall be as follows: 

1. The tax rate for goods sold or imported by taxpayers other than the goods set forth in Items 2 and 3 of this Article shall be
17%. 

2. The tax rate for sale or import of the following goods by taxpayers shall be 13%: 

(1) grain, edible vegetable oil; 

(2) tap water, central heating, air-conditioning, hot water, coal gas, liquid petroleum gas, natural gas, methane, and coal products
for use by residents; 

(3) books, newspapers, magazines; 

(4) feed, chemical fertilizer, agrochemicals, agricultural machinery, agricultural film; and 

(5) other goods specified by the State Council. 

3. The tax rate for goods exported by taxpayers shall be zero, except where otherwise determined by the State Council. 

4. The tax rate for processing and repair and replacement services provided by taxpayers (hereafter, “taxable labour services”) shall
be 17%. 

Adjustments to the tax rates shall be decided upon by the State Council. 

Article 3 Taxpayers that concurrently deal in goods or provide taxable labour services with different tax rates shall separately
calculate the sales amounts of the goods or taxable labour services with different tax rates. Where the sales amounts are not calculated
separately, the highest applicable tax rate shall be applied. 

Article 4 Subject to Article 13 of these Regulations, the amount of tax payable on the sale of goods or provision of taxable labour
services (hereafter, “sale of goods or taxable labour services”) by taxpayers shall be the balance of the value-added tax on outputs
for the current period after setting off or deducting the value-added tax on inputs for the current period. The formula for calculation
of the amount of tax payable is set forth below: 

Amount of tax payable = value-added tax on outputs for the current period – value-added tax on inputs for the current period. 

If the value-added tax on inputs for the current period cannot be fully set off against or deducted from the value-added tax on outputs
for the current period because the latter amount is smaller than the former, the balance may be carried over to the next period for
continued set-off or deduction. 

Article 5 The amount of value-added tax calculated in accordance with the sales amount and the tax rates provided in Article 2 of
these Regulations and collected from purchasers for the sale of goods or taxable labour services by taxpayers, shall be the value-added
tax on outputs. The formula for calculation of the value-added tax on outputs is set forth below: 

Value-added tax on outputs = sales amount ×tax rate 

Article 6 The sales amount shall be the full price and all additional charges that are collected by the taxpayer from the purchaser
for the sale of goods or taxable labour services, but shall not include the collected value-added tax on outputs. 

Sales amounts shall be calculated in Renminbi. Taxpayers that settle the sales amounts in foreign exchange shall calculate the amounts
by converting them into Renminbi at the foreign exchange market rate. 

Article 7 If a taxpayer’s price for the sale of goods or taxable labour services is obviously on the low side and no proper grounds
are presented for such low price, the tax authorities in charge shall determine such sales amount. 

Article 8 The value-added tax paid or borne by taxpayers for the purchase of goods or for receiving taxable labour services (hereafter,
the “purchase of goods or taxable labour services”), shall be the value-added tax on inputs. 

The value-added tax on inputs that is permitted to be set off against or deducted from the value-added tax on outputs shall be limited
to the value-added tax amounts specified in the following value-added tax deduction certificates, with the exception of the situation
set forth in Paragraph 3 of this Article: 

1.the value-added tax amount specified on the special value-added tax receipt obtained from the seller; and 

2. the value-added tax amount specified in the duty-and tax-paid certificate obtained from Customs. 

The value-added tax on inputs that is permitted to be set off or deducted in the case of purchase of tax-exempt agricultural produce
shall be calculated in accordance with the purchase price and a deduction rate of 10%. The formula for calculation of the value-added
tax on inputs is set forth below: 

Value-added tax on inputs = purchase price ×deduction rate 

Article 9 If a taxpayer fails to obtain and preserve a value-added tax deduction certificate for the purchase of goods or taxable
labour services in accordance with the regulations, or if the value-added tax amount and other relevant particulars are not specified
in accordance with the regulations on the value-added tax deduction certificate, the value-added tax on inputs may not be set off
against or deducted from the value-added tax on outputs. 

Article 10 The value-added tax on the following purchases may not be set off against or deducted from the value-added tax on outputs: 

1. purchase of fixed assets; 

2. purchase of goods or taxable labour services used for non-taxable items; 

3. purchase of goods or taxable labour services used for tax-exempt items; 

4. purchase of goods or taxable labour services used for collective welfare or individual consumption; 

5. purchase of goods in respect of which extraordinary losses are incurred; 

6 purchased goods or taxable labour services used for goods in process or finished products in respect of which extraordinary losses
are incurred. 

Article 11 The tax payable on the sale of goods or taxable labour services by small-scale taxpayers shall be calculated by a simplified
method. 

The standard for small-scale taxpayers shall be specified by the Ministry of Finance. 

Article 12 The rate of levy on the sale of goods or taxable labour services by small-scale taxpayers shall be 6%. 

Adjustments to the rate of levy shall be decided on by the State Council. 

Article 13 The amount of tax payable by small-scale taxpayers for the sale of goods or taxable labour services shall be calculated
in accordance with the sales amount and the rate of levy set forth in Article 12 of these Regulations, without setting off or deducting
the value-added tax on inputs. The formula for calculation of the amount of tax payable is set forth below: 

Amount of tax payable = sales amount ×rate of levy 

The sales amount shall be determined by reference to Article 6 and Article 7 of these Regulations. 

Article 14 If a small-scale taxpayer’s accounts are sound and such taxpayer can provide accurate tax information, it shall, following
approval by the tax authorities in charge, not be deemed as a small-scale taxpayer, and shall be permitted to calculate the amount
of tax payable in accordance with the relevant provisions of these Regulations. 

Article 15 The amount of tax payable on goods imported by taxpayers shall be calculated in accordance with the composite price for
tax calculation purposes and the tax rate provided in Article 2 of these Regulations, without setting off or deducting any amounts
of tax. The formulas for calculation of the composite price for tax calculation purposes and the amount of tax payable are set forth
below: 

Composite price for tax calculation purposes = dutiable value + duty +consumption tax 

Amount of tax payable = composite price for tax calculation purposes × tax rate 

Article 16 The following items shall be exempt from value-added tax: 

1. agricultural produce sold by the agricultural producers that produced them; 

2. contraceptive pharmaceuticals and devices; 

3. antique books; 

4. imported instruments and equipment to be used directly in scientific research, scientific experimentation or teaching; 

5. imported supplies and equipment given gratis in aid by foreign governments and international organizations; 

6. equipment that is required to be imported for processing of supplied materials, assembly of supplied parts or compensation trade; 

7. articles for the specific use of disabled persons that are imported directly by disabled persons’ organizations; and 

8. articles sold after having been used by oneself. 

Items that are exempt from value-added tax or liable for value-added tax at a reduced rate other than those set forth in the preceding
paragraph shall be decided upon by the State Council. No regions or authorities may determine items exempt from tax or liable for
tax at reduced rates. 

Article 17 Taxpayers that concurrently deal in items that are exempt from value-added tax or liable for value-added tax at reduced
rates shall separately calculate the sales amounts of the items exempt from tax or liable for tax at reduced rates. Where the sales
amounts are not calculated separately, no exemption or reduction of tax may be granted. 

Article 18 Where a taxpayer’s sales amount is less than the minimum amount liable for value-added tax specified by the Ministry of
Finance, the sales amount shall be exempt from value-added tax. 

Article 19 The obligation to pay value-added tax arises: 

1. in the case of sale of goods or taxable labour services, on the day when the taxpayer receives full payment of the sales sum or
obtains a voucher on the basis of which he can demand payment of the sales sum; and 

2. in the case of import of goods, on the day on which declaration is made to Customs for import. 

Article 20 Value-added tax shall be levied and collected by the tax authorities. Value-added tax on imported goods shall be collected
by Customs on behalf of the tax authorities. 

Value-added tax on articles that are carried or mailed into the territory of the People’s Republic of China by individuals for their
own use shall be calculated and levied together with Customs duties. The specific measures for such calculation and levy shall be
formulated by the State Council Commission for the Customs Tariff in conjunction with the relevant departments. 

Article 21 A taxpayer shall issue a special value-added tax receipt to the purchaser for the sale of goods or taxable labour services,
and shall separately specify on such receipt the sales amount and the value-added tax on outputs. 

If it is necessary to issue a receipt under any of the following circumstances, and ordinary receipt shall be issued and no special
value-added tax receipt may be issued: 

1. in case of sale of goods or taxable labour services to consumers; 

2. in case of sale of tax-exempt goods; or 

3. in case of sale of goods or taxable labour services by small-scale taxpayers. 

Article 22 Value-added tax shall be paid at the following places: 

1. A fixed business entity shall submit tax returns and pay its tax to the competent tax authorities in the place where its office
is located. If the head office and branch(es) are in different counties (municipalities), tax returns shall be submitted and tax
paid separately to the competent tax authorities in the places where they are located. Following approval by the State General Administration
of Taxation or by a tax authority authorized by it, the head office may submit tax returns and pay tax on a consolidated basis to
the tax authorities in the place where it is located; 

2. If a fixed business entity sells goods in another county (municipality), it shall apply for issuance of a tax administration certificate
for business activities outside the county (municipality), and submit tax returns and pay tax, to the tax authorities in charge of
the place where its office is located. If such entity sells goods or taxable labour services in another county (municipality) without
holding a tax administration certificate for business activities outside the county (municipality) issued by the tax authorities
in charge of the place where its office is located, it shall submit tax returns and pay tax to the tax authorities in charge of the
place of sale. If it fails to submit tax returns and pay tax to the tax authorities in charge of the place of sale, the tax authorities
in charge of the place where its office is located shall collect the tax in order to compensate for such failure; 

3. A non-fixed business entity shall submit tax returns and pay tax on its sale of goods or taxable labour services to the tax authorities
in the place of sale; and 

4. An importer or its agent shall submit tax returns and pay tax to Customs of the place of Customs declaration of the imported goods. 

Article 23 The terms for payment of value-aaded tax shall be one day, three days, five days, ten days, fifteen days or one month,
respectively. Taxpayers’ specific terms of tax payment shall be determined by the tax authorities in charge on the basis of the size
of the taxpayers’ amounts of tax payable. Taxpayers that cannot pay tax according to fixed terms may pay tax each time the liability
to pay tax arises. 

Taxpayers whose term of tax payment is one month shall submit a tax return and pay tax within a period of ten days commencing from
the date of expiration of the term. Taxpayers whose term of tax payment is one, three, five, ten or fifteen days shall prepay the
tax within a period of five days commencing from the date of expiration of the term and, within a period of ten days commencing from
the first day of the next month, submit a tax return and pay tax and settle in full the amount of tax payable for the preceding month. 

Article 24 Taxpayers that import goods shall pay tax within a period of seven days commencing from the date immediately following
the date of issuance by Customs of the duty and tax payment certificate. 

Article 25 A taxpayer that exports goods for which the applicable tax rate is zero may, after carrying out export procedures with
Customs, submit declarations to and carry out tax refund procedures for the exported goods with the tax authorities on a monthly
basis, on the strength of relevant certificates such as the export Customs declaration forms. Specific measures shall be formulated
by the State General Administration of Taxation. 

If export goods are returned or shut out after tax has been refunded, the taxpayer shall make up the tax refunded in accordance with
the law. 

Article 26 The levy and collection of value-added tax shall be administered in accordance with the Law of the People’s Republic of
China on the Administration of Tax Collection and the relevant provisions of these Regulations. 

Article 27 The levy of value-added tax on enterprises with foreign investment and foreign enterprises shall be handled in accordance
with the relevant decisions of the Standing Committee of the National People’s Congress. 

Article 28 The Ministry of Finance shall be responsible for the interpretation of these Regulations. Implementing rules shall be
formulated by the Ministry of Finance. 

Article 29 These Regulations shall be implemented as of January 1, 1994. At the same time, the Regulations on Value-added Tax of
the People’s Republic of China (Draft) and the Regulations on Product Tax of the People’s Republic of China (Draft) promulgated by
the State Council on September 18, 1984 shall be annulled. 

 

Appendix 2: 

Provisional Regulations of the People’s Republic of China on Consumption Tax 

(Adopted at the 12th Executive Meeting of the State Council on November 26, 1993, promulgated by Decree No.135 of the State Council
of the People’s Republic of China and effective as of January 1, 1994) 

Article 1 Units and individuals that produce, commission others with processing or import consumer goods specified in these Regulations
(hereafter, “taxable consumer goods”) in the territory of the People’s Republic of China shall be payers of consumption tax (hereafter,
“taxpayers”) and shall pay consumption tax in accordance with these Regulations. 

Article 2 The items and rates (amounts) of the consumption tax shall be as set forth in the Table of Consumption Tax Items and Rates
(Amounts) appended to these Regulations. 

Adjustments to the consumption tax items and rates (amounts) shall be decided upon by the State Council. 

Article 3 Taxpayers that concurrently deal in taxable consumer goods with different tax rates shall separately calculate the sales
amounts and sales quantities of taxable consumer goods with different tax rates. Where the sales amounts and sales quantities are
not calculated separately, or where taxable consumer goods of different tax rates are combined into sets of consumer goods and sold
as such, the highest applicable tax rate shall be applied. 

Article 4 Tax on the taxable consumer goods produced by taxpayers shall be paid at the time of sale. Taxable consumer goods produced
by taxpayers for their own use shall be exempt from tax if used for continued production of taxable consumer goods, and shall be
liable for tax at the time of transfer if used for other purposes. 

Tax on taxable consumer goods that are processed pursuant to a commission shall be collected and turned over by the commissioned
party at the time of delivery of the goods to the commissioning party. Where taxable consumer goods processed pursuant to a commission
are used by the commissioning party in the continued production of taxable consumer goods, the tax paid may be set off or deducted
in accordance with regulations. 

Tax on imported taxable consumer goods shall be paid at the time of Customs declaration for import. 

Article 5 The amount of consumption tax payable shall be calculated at a fixed rate according to the price or at a fixed amount according
to the quantity. The formula for calculation of the amount of tax payable is set forth below: 

The amount of tax payable by the method of calculation at a fixed rate according to the price = sales amount ×tax rate 

The amount of tax payable by the method of calculation at a fixed amount according to the quantity = sales quantity ×unit tax amount 

Taxpayers that settle the sales amounts of taxable consumer goods sold in foreign exchange shall calculate the amount of tax payable
by converting the amounts into Renminbi at the foreign exchange market rate. 

Article 6 The sales amount mentioned in Article 5 of these Regulations shall be the full price and all additional charges that are
collected by the taxpayer from the purchaser for the sale of taxable consumer goods. 

Article 7 Tax on taxable consumer goods produced by taxpayers for their own use that are taxable under Paragraph 1 of Article 4 of
these Regulations shall be calculated and paid according to the selling price of the same type of consumer goods produced by the
taxpayer. In the absence of a selling price of the same type of consumer goods, tax shall be calculated and paid according to a composite
price for tax calculation purposes. The formula for calculation of the composite price for tax calculation purposes is set forth
below: 

Composite price for tax calculation purposes = (cost +profit) / (1 – consumption tax rate) 

Article 8 Tax on taxable consumer goods processed pursuant to a commission shall be calculated and paid according to the selling
price of the same type of consumer goods of the commissioned party. In the absence of a selling price of the same type of consumer
goods, tax shall be calculated and paid according to a composite price for tax calculation purposes. The formula for calculation
of the composite price for tax calculation purposes is set forth below: 

Composite price for tax calculation purposes = (cost of materials + processing fee) / (1 – consumption tax rate) 

Article 9 Tax on imported taxable consumer goods shall be calculated and paid according to a composite price for tax calculation
purposes if the amount of tax payable is calculated by the method of calculation at a fixed rate according to the price. The formula
for calculation of the composite price for tax calculation purposes is set forth below: 

Composite price for tax calculation purposes = (dutiable value + Customs duty ) / (1 – consumption tax rate) 

Article 10 If the price for tax calculation purposes of a taxpayer’s taxable consumer goods is obviously on the low side and no proper
grounds are presented for such a low price, the tax authorities in charge shall determine the price for tax calculation purposes
for such goods. 

Article 11 Taxable consumer goods exported by taxpayers shall be exempt from consumption tax, except where the State Council determines
otherwise. Procedures for the exemption of exported taxable consumer goods from tax shall be formulated by the State General Administration
of Taxation. 

Article 12 Consumption tax shall be levied and collected by the tax authorities. Consumption tax on imported taxable consumer goods
shall be levied by Customs on behalf of the tax authorities. 

Consumption tax on taxable consumer goods that are carried or mailed into the territory of the People’s Republic of China by individuals
shall be calculated and levied together with Customs duties. The specific measures for such calculation and levy shall be formulated
by the State Council Commission for the Customs Tariff in conjunction with the relevant departments. 

Article 13 Unless otherwise provided by regulations of the State, tax returns and tax on taxable consumer goods sold by taxpayers
and on taxable consumer goods produced by taxpayers for their own use shall be submitted and paid to the tax authorities in the place
of calculation. 

Consumption tax on taxable consumer goods processed pursuant to a commission shall be turned over by the commissioned party to the
tax authorities in the place where it is located. 

Tax returns and tax on imported taxable consumer goods shall be submitted and paid by the importers or their agents to Customs of
the place of Customs declaration. 

Article 14 The terms for payment of consumption tax shall be one day, three days, five days, ten days, fifteen days or one month,
respectively. Taxpayers’ specific terms of tax payment shall be determined by the tax authorities in charge on the basis of the size
of the taxpayers’ amounts of tax payable. Taxpayers that cannot pay tax according to fixed terms may pay tax each time the liability
to pay tax arises. 

Taxpayers whose term of tax payment is one month shall submit a tax return and pay tax within a period of ten days commencing from
the date of expiration of the term. Taxpayers whose term of tax payment is one, three, five, ten or fifteen days shall prepay the
tax within a period of five days commencing from the date of expiration of the term and, within a period of ten days commencing from
the first day of the next month, submit a tax return and pay tax and settle in full the amount of tax payable for the preceding month. 

Article 15 Taxpayers that import taxable consumer goods shall pay tax within a period of seven days commencing from the date immediately
following the date of issuance by Customs of the duty and tax payment certificate. 

Article 16 The levy and collection of consumption tax shall be administered in accordance with the Law of the People’s Republic of
China on the Administration of Tax Collection and the relevant provisions of these Regulations. 

Article 17 The levy and collection of consumption tax on enterprises with foreign investment and foreign enterprises shall be handled
in accordance with the relevant decisions of the Standing Committee of the National People’s Congress. 

Article 18 The Ministry of Finance shall be responsible for the interpretation of these Regulations. Implementing rules shall be
formulated by the Ministry of Finance. 

Article 19 These Regulations shall be implemented as of January 1, 1994. At the same time, relevant regulations of the State Council
on the levy and collection of consumption tax predating the implementation of these Regulations shall be annulled. 

 

Appendix: 

       Table of Consumption Tax Items and Rates 

                       (Amounts) 

Tax item    Scope of levy             Unit of tax calculation  Tax rate  
 

                                     
            (amount) 

I.Tobacco 

      1. Grade A cigarettes, including  

         all kinds of imported cigarettes                  
45%  

      2. Grade B cigarettes                         
   40%  

      3.Cigars                             
         40% 

      4.Cut tobacco                           
       30% 

II.Alcoholic beverages and ethyl alcohol 

      1. Spirit distilled from grain                        
25% 

      2. Spirit distilled from potatoes                      
15% 

      3. Yellow rice or millet wine                   ton  
Rmb 240 

      4. Beer                             
   

PROVISIONS OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON THE ESTABLISHMENT OF FOREIGN-FUNDED ADVERTISING ENTERPRISES

20040302

The State Administration for Industry and Commerce, Ministry of Foreign Trade and Economic Cooperation

Provisions of the State Administration for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation on the
Establishment of Foreign-Funded Advertising Enterprises

GongShangGuanZi [1994] No.304

November 3, 1994

Article 1

The provisions are formulated to promote the opening of China’s advertising business to the outside world and make sure that the quality
of the foreign-funded advertising enterprises will reach a certain standard so as to guarantee the healthy development of the country’s
advertising sector.

Article 2

The foreign-funded advertising enterprises referred to in these provisions should be limited to the Sino-foreign equity and contractual
joint ventures that are engaged in advertising business.

Article 3

The foreign-funded advertising enterprises should be established in accordance with “The Law of the People’s Republic of China on
the Chinese-foreign Equity Joint Ventures”, “The Law of the People’s Republic of China on the Chinese-foreign Contractual Joint Ventures”,
“Advertising Law of the People’s Republic of China”, “The Regulations on the Administration of Advertising”, “The Ratified Phraseology
Standards for Advertiser’s Natural Endowment Norms and Advertising Scope” and other relevant laws, decrees and regulations.

Article 4

The project proposal and the feasibility study report on establishing a foreign-funded advertising enterprise are to be examined and
approved by the State Administration for Industry and Commerce. Business scope of such an enterprise is to be examined and approved
by the same administration in accordance with “The Ratified Phraseology Standards for Advertiser’s Natural Endowment Norms and Advertising
Scope” and in line with the business scope of foreign advertising as ads designing, preparing, issuing and as agents for domestic
and foreign advertising. Its contract and articles of association are to be examined and approved by the Chinese Ministry of Foreign
Trade and Economic Cooperation.

Article 5

The establishment of the foreign-funded advertising enterprise shall follow the following procedures:

(1)

The Chinese partner of the foreign-funded advertising enterprise (joint equity or contractual venture) shall present the project proposal
and feasibility study report of the enterprise to the local administrative department for industry and commerce which has the power
to approve and register the establishment of foreign-funded enterprises for primary consideration and the department concerned shall
send the documents with its own proposal and report to the administration of the province, the autonomous region, the municipality
directly under the Central Government or the municipality separately listed on the State plan for a check and then the documents
shall be turned up to the State Administration for Industry and Commerce for final examination and approval. The Chinese partner,
if it is an enterprise directly under a ministry, a commission or a bureau of the State Council shall report the project proposal
and the feasibility study report to its own department in charge for a check and if agreed, the department shall transfer the documents
to the State Administration for Industry and Commerce for final examination and approval. The State Administration for Industry and
Commerce shall decide whether to approve or disapprove the documents within 30 days beginning from the date of receiving all the
documents.

(2)

After the State Administration for Industry and Commerce issues”Opinions on Approving the Establishment of the Foreign-Funded Advertising
Enterprise”, the Chinese partner shall present to the local foreign trade and economic cooperation department of a province, an autonomous
region, a municipality directly under the Central Government or a municipality separately listed on the State plan the contract and
the articles of association on establishing the enterprise and after a check by the department the documents shall be sent to the
Ministry of Foreign Trade and Economic Cooperation for final examination and approval. The Chinese partner, if it is an enterprise
directly under a ministry, or a commission or a bureau of the State Council shall report the contract and articles of association
on establishing a foreign-funded advertising enterprise to its own department in charge for a check and if agreed, the documents
will be sent to the Ministry of Foreign Trade and Economic Cooperation for final examination and approval. The Ministry of Foreign
Trade and Economic Cooperation shall decide whether to approve or disapprove the documents within a deadline according to the relevant
State laws and regulations governing foreign investment.

(3)

With “Opinions on Approving the Establishment of the Foreign-Funded Advertising Enterprise” issued by the State Administration for
Industry and Commerce, the approval certificate issued by the Ministry of Foreign Trade and Economic Cooperation, and other documents
which are required by relevant laws and regulations, the Chinese partner shall go to the State Administration for Industry and Commerce
or the local administrative departments for industry and commerce which has the power to check and register foreign-funded enterprises
to go through the enterprise registration formalities as an enterprise legal person in accordance with relevant regulations governing
the enterprise registration. When a foreign-funded advertising enterprise applies for establishing affiliations, the foreign trade
and economic cooperation department of a province, an autonomous region, a municipality directly under the Central Government or
a municipality separately listed on the State plan, or a ministry, a commission or a bureau under the State Council if agrees after
a check, shall report the matter to the Ministry of Foreign Trade and Economic Cooperation. The Ministry of Foreign Trade and Economic
Cooperation shall decide whether to approve or disapprove the establishment of the affiliations after solicitation of opinion from
the State Administration for Industry and Commerce.

Article 6

For establishing a foreign-funded advertising enterprise, the partners must have the following qualifications apart from conditions
required by relevant laws and regulations:

(1)

They must be legal persons which are engaged in a fairly big advertising business as their main undertaking;

(2)

They can import advanced international advertise producing technology advertise equipment;

(3)

They have the ability of market survey, advertise planning and advertise effect monitoring;

(4)

They can train Chinese employees in ads planning, creating, designing, producing and management; and

(5)

Their registered capital for the enterprise is not less than US$300,000.

Article 7

A foreign-funded advertising enterprise which applies for the establishment of affiliations should have the following qualifications:

(1)

It has paid all the registered capital;

(2)

Its annual business turnover is not less than RMB20 million; and

(3)

There must be more than three comparatively regular advertising clients in the area where the affiliation locates.

Article 8

While applying for the establishment of a foreign-funded advertising enterprise, the Chinese partner shall present the following documents
to the State Administration for Industry and Commerce in accordance with the procedures set in Article 5 of these provisions:

(1)

The report on applying for the establishment of the foreign-funded advertising enterprise;

(2)

The approval document of the department in charge of the Chinese partner;

(3)

The project proposal on the establishment of the foreign-funded advertising enterprise;

(4)

The feasibility study report jointly prepared by all the partners;

(5)

The registration certificates of all the partners;

(6)

The capital credit certificate of all the partners;

(7)

The certificate indicating the major producing equipment and technology to be used and their origin;

(8)

The management system governing advertising; and

(9)

The primary opinions of the local administrative department for industry and commerce.

Article 9

While applying for the establishment of a foreign-funded advertising enterprise, the Chinese partner should present the following
documents to the Ministry of Foreign Trade and Economic Cooperation in accordance with the procedures stipulated in Article 5 of
these provisions:

(1)

Documents of the local foreign trade and economic cooperation department, the ministry, the commission or bureau directly under the
State Council;

(2)

“Opinions on Approving the Establishment of Foreign-funded Advertising Enterprises” issued by the State Administration for Industry
and Commerce;

(3)

The contract and articles of association on establishing the foreign-funded advertising enterprise;

(4)

The project proposal and feasibility study report;

(5)

The registration certificates of all the partners;

(6)

The capital credit certificates of all the partners;

(7)

The certificate of approval of the name of the foreign-funded advertising enterprise issued by local administrative department for
industry and commerce; and

(8)

The list of names of the board directors and their certificates of appointment by the respective parties.

Article 10

A foreign-funded advertising enterprise should report for approval in one of the following cases in line with the procedures set in
Article 5 of these provisions after it has been examined and gets the certificate of approval:

(1)

Change the partner; and

(2)

Change the business scope.

Article 11

These provisions can also apply to the application of a foreign-funded advertising enterprise for expanding its business scope.

Article 12

These provisions shall enter into force as of January 1, 1995.

 
The State Administration for Industry and Commerce, Ministry of Foreign Trade and Economic Cooperation
1994-11-03

 



CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE QUESTION CONCERNING THE HANDLING OF TAXATION RELATED TO THE DRAWING AND USE OF HOUSING PUBLIC ACCUMULATION FUNDS BY ENTERPRISES WITH FOREIGN INVESTMENT AND THEIR EMPLOYEES

The State Administration of Taxation

Circular of the State Administration of Taxation on the Question Concerning the Handling of Taxation Related to the Drawing and Use
of Housing Public Accumulation Funds by Enterprises with Foreign Investment and Their Employees

GuoShuiFa [1994] No.165

July 26, 1994

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

In line with the unified planning of the State Council, implementation measures for reform of the housing system have been published
one after another in various localities. The question concerning taxation handling related to the drawing, receiving and use of various
housing subsidies or housing public accumulation funds by enterprises with foreign investment (hereinafter referred to as enterprises)
and the employees of the Chinese side (hereinafter referred to as individuals) is hereby clarified as follows:

I.

The handling of taxation related to the drawing of various housing subsidies or housing public accumulation funds (including voluntary
housing public accumulation funds) by enterprises and individuals in accordance with relevant stipulations as set in the housing
system of national or local government.

(1)

In areas which have not as yet carried out reform of the housing system, the housing subsidies drawn by enterprises in accordance
with the original stipulations of financial departments and labor departments may be regarded as the deducting items for calculating
the enterprise’s current payable tax on the income amount and be itemized in the current cost expenses.

(2)

In areas where reform of the housing system has been introduced, when an enterprise has drawn various kinds of housing public accumulation
funds in accordance with the proportion set by the national or local government, if an enterprise has drawn various types of workers’
welfare funds in accordance with related regulations before the calculation and collection of enterprise income tax, the book balance
of that workers’ welfare funds drawn each year by the enterprise, after paying for the expenditures for other stipulated purposes
than paying for workers’ housing expenditures shall be turned into housing public accumulation funds; when there is no book balance
or the book balance is not enough to carry down the housing public accumulation funds drawn in the current year, only then can the
deficiency be itemized as the period costs and expenses before income tax is calculated and collected.

(3)

The housing public accumulation funds drawn by an enterprise and an individual in accordance with the proportion stipulated by the
national or local government and actually paid to a designated organization may not be included in the individual’s current wage
and salary income when individual income tax is calculated and levied.

II.

The handling of taxation related to an enterprise and an individual who use the housing subsidies or housing public accumulation funds
as referred to in Article 1 of this Circular

(1)

The housing expenditures such as the expenses on housing purchase and construction, expenses on housing repair and expense on rentals
actually paid by the enterprise to individuals shall be itemized in the individual’s housing subsidies or housing public accumulation
funds that have been drawn.

(2)

The already drawn housing public accumulation funds received by an individual (including the part drawn by the enterprise and the
part drawn by an individual) shall be included in the individual’s current wage and salary income in accordance with the amount actually
received for the calculation and payment of individual income tax. But the various housing expenditures actually paid by an individual
(including expenditures on the purchase and construction of houses and expenditure on rents), which conform with the uses stipulated
by the national and local governments and for which effective and legal payment certificates can be provided, after examination and
verification by the competent taxation authorities, may be deducted from the amount actually received, the part that exceeds the
amount actually received cannot be deducted from the current wage and salary income.

III.

The handling of taxation related to the drawing and use of various housing subsidies or housing public accumulation funds by an enterprise
and an individual, that exceed the proportion stipulated by the national or local government

(1)

The various housing subsidies or housing (supplementary) public accumulation funds drawn by an enterprise itself, that exceed the
proportion as set by the national or local government cannot be listed and spent as the enterprise’s current costs and expenses.

(2)

If the housing expenditures such as expenses on housing purchase and construction, housing repair expense and rental expense actually
paid by the enterprise to individuals are not enough to be itemized in that individual’s housing subsidies or housing public accumulation
funds drawn in accordance with the proportion stipulated by the national or local government, the expenditure paid by the enterprise
in accordance with the resolution of the board of directors of the enterprise may be included in the enterprise’s current costs and
expenses in light of an effective and legal payment certificate. But at the same time, it should be included in the individual’s
current wage and salary income for the calculation and levying of individual income tax.

(3)

The housing public accumulation funds drawn by an individual that exceeds the proportion set by the national or local government cannot
be deducted from the individual’s current wage and salary income when individual income tax is calculated and paid.

 
The State Administration of Taxation
1994-07-26

 



CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON QUESTIONS CONCERNING THE TAX ITEMS APPLICABLE TO ENTERPRISES WITH FOREIGN INVESTMENT, FOREIGN ENTERPRISES AND INDIVIDUAL FOREIGNERS

The State Administration of Taxation

Circular of the State Administration of Taxation on Questions Concerning the Tax Items Applicable to Enterprises with Foreign Investment,
Foreign Enterprises and Individual Foreigners

[1994] No.123 of the State Administration of Taxation

May 11, 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 sub-bureaus of the Offshore Oil Tax Administration:

Recently, we have acknowledged the receipts of letters and cables from some localities asking about questions concerning the scope
of tax categories applicable to enterprises with foreign investment, foreign enterprises and individual foreigners after the new
tax system reform, in accordance with related Tax Laws and the stipulations of the Circular on Questions Related to the Interim Regulations
Concerning the Collection of Value-Added Tax, Consumption Tax and Business Tax Applicable to Enterprises with Foreign Investment
and Foreign Enterprises, a document of the State Council Coded GuoFa [1994] No. 10 of the State Council, the questions are hereby
clarified as follows;

Beginning from January 1, 1994, the following industrial and commercial tax laws and provisional regulations shall be applicable to
enterprises with foreign investment, foreign enterprises and individual foreigners:

I.

The Income Tax Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises adopted by the
National People’s Congress on April 9, 1991 and published on the same day;

II.

The Individual Income Tax Law of the People’s Republic of China adopted by the National People’s Congress on September 10, 1980, and
amended by the Standing Committee of the National People’s Congress on October 31, 1993 and re-published on the same day;

III.

The Interim Regulations of the People’s Republic of China on Value-Added Tax published by the State Council on December 13, 1993;

IV.

The Interim Regulations of the People’s Republic of China on Consumption Tax published by the State Council on December 13, 1993;

V.

The Interim Regulations of the People’s Republic of China on Business Tax published by the State Council on December 13, 1993;

VI.

The Interim Regulations of the People’s Republic of China on Land Value-Added Tax published on December 13, 1993;

VII.

The Interim Regulations of the People’s Republic of China on Resources Tax published by the State Council on December 25, 1993;

VIII.

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

IX.

The Interim Regulations on Animal Slaughter Tax published by the Government Administration Council of the Central People’s Government
on December 19, 1950;

X.

The Interim Regulations on Urban Real Estate Tax published by the Government Administration Council of the Central People’s Government
on August 8, 1951, and

XI.

The Interim Regulations on Vehicle and Shipping License Plate Tax Published by the Government Administration Council of the Central
People’s Government on September 13, 1951.



 
The State Administration of Taxation
1994-05-11

 






PROTECTION OF INVESTMENT OF TAIWAN COMPATRIOTS LAW

Law of the People’s Republic of China on the Protection of Investment of Taiwan Compatriots

(Adopted at the Sixth Meeting of the Standing Committee of the Eighth National People’s Congress on March 5, 1994
and promulgated by Order No.20 of the President of the People’s Republic of China on March 5, 1994) 

Article 1  This Law is formulated for the purpose of protecting and encouraging investment of Taiwan compatriots, and promoting
the economic development on both sides of the Straits. 

Article 2  Investment of Taiwan compatriots shall be governed by this Law. In respect of matters concerning investment of Taiwan
compatriots  not covered by this Law, where there are provisions thereon in other relevant laws and administrative rules and
regulations of the State, such provisions shall apply. 

“Investment of Taiwan compatriots” as used in this Law means investment made in other provinces, autonomous regions or municipalities
directly under the Central Government  by the companies, enterprises, other economic organizations or individuals from the region
of Taiwan as investors. 

Article 3  The State shall, according to law, protect the investments, investment returns and other lawful rights and interests
of investors who are Taiwan compatriots. 

Taiwan compatriots in making investment must abide by laws and administrative rules and regulations of the State. 

Article 4  The State shall not nationalize or requisition the investment made by investors who are Taiwan compatriots; under
special circumstances and on the basis of the need of public interests, the State may in accordance with legal procedures requisition
the investments made by investors who are Taiwan compatriots and make appropriate compensations thereto. 

Article 5  The invested properties, industrial property rights, investment returns and other lawful rights and interests of
investors who are Taiwan compatriots may be transferred and inherited according to law. 

Article 6  Investors who are Taiwan compatriots may make investment with convertible currency, machinery equipment or other
physical assets, industrial property rights or non-patented technologies, etc.. 

Investors who are Taiwan compatriots may make reinvestment with the returns derived from their investment. 

Article 7  Taiwan compatriots may make investment by establishing equity joint ventures, contractual joint ventures or enterprises
with all capital invested by Taiwan compatriots (hereinafter generalized as enterprises with investment of Taiwan compatriots) or
may also invest in other forms  as provided by laws or administrative rules and regulations. 

The establishment of enterprises with investment of Taiwan compatriots shall be in conformity with the industrial policy of the State
and conducive to the development of the national economy. 

Article 8  To establish an enterprise with investment of Taiwan compatriots, an application shall be made to the department
prescribed by the State Council or to the local people’s government prescribed by the State Council. The examining and approving
authorities that have received the application shall, within 45 days from the date of receiving all the documents for the application,
decide whether or not to grant approval. 

After an application for the establishment of an enterprise with investment of Taiwan compatriots has been approved, the applicant
shall, within 30 days from the date of receiving the certificate of approval, register its establishment with the enterprise registration
authorities and obtain a business licence according to law. 

Article 9  Enterprises with investment of Taiwan compatriots shall carry out their activities of operation and management in
accordance with the law, administrative rules and regulations as well as the contract and articles of association approved by the
examining and approving authorities, and their decision-making power in operation and management shall be free from interference. 

Article 10  In areas where enterprises with investment of Taiwan compatriots are located in compact forms, an association of
enterprises with investment of Taiwan compatriots may be established according to law and its lawful rights and interests shall be
protected by law. 

Article 11  Investors who are Taiwan compatriots may remit in accordance with law their legal returns from investment, other
lawful earnings and funds after settlement of accounts back to Taiwan or outside of the territory of the People’s Republic of China. 

Article 12  Investors who are Taiwan compatriots may entrust their relatives or friends to act as agents for their investment. 

Article 13  Enterprises with investment of Taiwan compatriots shall enjoy preferential treatment in accordance with the relevant
provisions of the State Council on encouraging investment of Taiwan compatriots. 

Article 14  With respect to disputes over investment arising between investors who are Taiwan compatriots and companies, enterprises,
other economic organizations or individuals in other provinces, autonomous regions or municipalities directly under the Central Government,
the parties concerned may settle them through consultation or mediation. 

Where the parties concerned are not willing to resort to consultation or mediation, or where consultation or mediation proves unsuccessful,
they may, in accordance with the arbitration clause in the contract or the written arbitration agreement reached subsequently, submit
the matter to an arbitration organ for arbitration. 

Where there is no arbitration clause in the contract, and no written arbitration agreement reached subsequently, the parties concerned
may bring a suit to the people’s court. 

Article 15 This Law shall go into effect on the date of promulgation.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






PROVISIONS OF THE STATE COUNCIL CONCERNING IMPOSITION OF AGRICULTURAL TAX ON AGRICULTURAL SPECIALITY INCOME

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-01-30 Effective Date  1994-01-30  


Provisions of the State Council Concerning Imposition of Agricultural Tax on Agricultural Speciality Income


Appendix:  Agricultural Speciality Tax Schedule of

(Promulgated by Decree No.143 of the State Council of the People’s

Republic of China on January 30, 1994)

    Article 1  These Provisions are formulated in accordance with
relevant laws of the state, in order to rationalize and adjust income
from production of agriculture, forestry, animal husbandry and fishery,
make the tax burden fair, and to promote all round development of
agricultural production.

    Article 2  The state shall impose agricultural tax on agricultural
speciality income in accordance with these Provisions.

    All organizations and individuals involved in the production of
agricultural speciality products within the territory of the People’s
Republic of China are duty taxpayers (hereinafter referred to as
taxpayers) of agricultural tax on agricultural speciality (hereinafter
referred to as agricultural speciality tax) and must pay agricultural
speciality tax in accordance with these Provisions.

    Article 3  The following agricultural speciality product income
shall be subject to agricultural speciality tax:

    (1) tobacco income, including income from both air-cured and
flue-cured tobacco;

    (2) horticultural income, including income from fruit, dry fruit,
rough tea, silkworm cocoon, medicinal materials, fruit-melon, flowers
and plants, and economic forest nursery stock, ect.;

    (3) aquatic product income, including income from aquatic plant,
beach aquiculture, sea-water and fresh-water aquiculture, and fishing
products;

    (4) forest income, including income from log, bamboo, raw lacquer,
natural rubber, natural resin and woody oil crops, ect.;

    (5) livestock income, including income from cattlehide, hogskin,
sheepskin, sheep’s wool, rabbit wool, cashmere and camel’s hair, ect.;

    (6) edible mushroom income, including income from the black
auricular fungus, tremella, xianggu mushroom and mushroom, ect.; and

    (7) other agricultural speciality product income prescribed by
the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government.

    Article 4  The national items and rates for agricultural speciality
tax must adhere to the Agricultural Speciality Tax Schedule of Taxable
Items and Tax Rates attached with these Provisions. The State Council
authorizes the Ministry of Finance to adjust some specific taxable
items and tax rates.

    Agricultural speciality tax rates other than those under the
preceding paragraph shall be prescribed by the people’s governments
of provinces, autonomous regions and municipalities directly under
the Central Government within the scope of 5-20%.

    Article 5  The tax payable of agricultural speciality tax shall be
calculated and collected according to the real income from agricultural
speciality products and the statutory tax rates. The real income from
agricultural speciality products shall be calculated in Renminbi.

    The real income from agricultural speciality products shall be
calculated and decided by local collection authorities according to the
actual output of the agricultural speciality products and the state
purchasing price or market purchasing price. The formula is as follows:

    Real income of agricultural speciality products
= actual output x purchasing price

    The calculation formulas for real income of specific agricultural
speciality products shall be separately prescribed by the Ministry of
Finance.

    Article 6  Circumstances where the agricultural speciality tax
shall be reduced and exempted:

    (1) agricultural speciality product income earned by
agricultural science and research institutions and agricultural
colleges and universities in the course of scientific experiment
may be exempted from the agricultural speciality tax during the
period of experiment;

    (2) in case of agricultural speciality products produced in
newly developed barren mountain, wasteland, beach and waters, the
income therefrom may be exempted from the agricultural speciality
tax within 1 to 3 years from the time when one begins to earn income;

    (3) the poverty households without enough to eat and wear in the
old revolutionary base areas, racial minority areas, remote areas,
poverty areas and other areas, which can really not afford to pay
the tax, may be exempted from the agricultural speciality tax; and

    (4) in case of shortfall in output due to natural calamity,
the agricultural speciality tax may be reduced or exempted in the
light of the circumstances.

    Taxpayers who wish to enjoy reduction of or exemption from the
agricultural speciality tax shall file an application. The
reduction and exemption may be implemented only after the application
has been examined and verified by the financial authorities at county(city)
level and approved by the financial authorities at the higher level.

    Article 7  The timing at which the tax liability arises on the
agricultural speciality product income shall be the date on which
the agricultural speciality products are harvested or sold.

    Article 8  Taxpayers shall file tax returns to the local collection
authorities within 30 days from the date on which the tax liability
arises. The time limit for tax payment shall be set by the collection
authorities.

    Article 9  The agricultural speciality tax shall be paid at the
place where the agricultural speciality products are produced.

    Article 10  In case of failure by a taxpayer to declare accurately
his real agricultural speciality product income, the local collection
authorities shall calculate and collect the tax.

    Article 11  Organizations and individuals purchasing agricultural
speciality products shall, according to the relevant provisions of the
Ministry of Finance, pay or withhold and remit the tax on the basis
of purchasing amount and the statutory tax rates.

    Article 12  Agricultural speciality tax shall be collected by local
financial authorities.

    Article 13  The administration of collection of agricultural
speciality tax shall be carried out in accordance with these Provisions;
in case of matters not prescribed in these Provisions, it shall be
carried by referring to the Law of the People’s Republic of China on
the Administration of Tax Collection.

    Article 14  Agricultural speciality tax shall be calculated and
collected according to these Provisions from the taxation year of 1994.

    Article 15  The people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government may
make their own procedure for implementation of these Provisions, and
shall submit it to the Ministry of Finance for record.

    Article 16  The Ministry of Finance shall be responsible for
interpretation of these Provisions.

    Article 17  These Provisions shall come into force on the date of
promulgation. the Some Provisions of the State Council Concerning
Imposition of Agricultural Tax on Agriculture and Forestry Speciality
Income promulgated on November 12, 1983 by the State Council and
relevant provisions of the State Council concerning imposition of tax
on products of agriculture, forestry and animal husbandry and aquatic
products shall be repealed at the same time.

Appendix:  Agricultural Speciality Tax Schedule of

               Taxable Items and Tax Rates


       Taxable Items                                
Tax Rates

(1) Tobacco Products

    air-cured tobacco                                  31%

    flue-cured tobacco                                
31%
(2) Horticultural Products

    rough tea                                          16%

    orange, banana, litchi, apple, pear                12%

    other fruit, dry fruit                            
10%

    fruit-melon                                        8%

    silkworm cocoon                                    8%
(3) Aquatic products (Sea-water, fresh-water

    and beach aquiculture, sea-water and

    fresh-water fishing, aquatic plants)              
8%
(4) Forestry Products

    log, bamboo                                        8%

    raw lacquer, natural resin                        
10%

    natural rubber                                    
8%
(5) Livestock Products

    cattlehide, hogskin, sheepskin                    
10%

    sheep’s wool, rabbit wool                          10%

    cashmere, camel’s hair                            
10%
(6) Edible Mushroom

    black auricular fungus, tremella,

    xianggu mushroom, mushroom                        
8%
(7) Valuable Foodstuff

    sea cucumber, mandarin fish,

    dried scallop, edible bird’s nest,

    fish lip, shark’s fin                              25%







1...678...12Page 7 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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