PROVISIONS ON THE ADMINISTRATION OF COLLECTION OF THE MINERAL RESOURCES COMPENSATION

Category	GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY	Organ of Promulgation	The State Council	Status of Effect	With An Amendment Existing
Date of Promulgation	1994-02-27	Effective Date	1994-04-01

Provisions on the Administration of Collection of the Mineral Resources Compensation

Appendix: Table for Rates of Mineral Resources Compensation

(Adopted at the 6th Executive Meeting of the State Council on June 29,

1993, promulgated by Decree No. 150 of the State Council on February 27,
1994 and effective as of April 1, 1994)(Editor’s Note: For the revised text,
see Decision of the State Council on Revising the Provisions on the
Administration of Collection of the Mineral Resources Compensation
promulgated on July 3, 1997, and effective as of the same date)

Article 1 These Provisions are formulated, in accordance with the
relevant stipulations of the Mineral Resources Law of the People’s Republic
of China, in order to ensure and promote the exploration, protection and
rational development of mineral resources, and to safeguard the property
rights to and interests of the state to mineral resources.

Article 2 The mineral resources compensation shall be paid, in
accordance with these Provisions, for mining mineral resources within the
territory of the People’s Republic of China and the sea areas under the
jurisdiction. Where laws or other administrative regulations provide
otherwise, their stipulations shall apply.

Article 3 The mineral resources compensation shall be computed and
collected at a certain ratio of the sales income of mineral products. The
mineral resources compensation paid by the enterprises shall be included in
the administration fees.

For any concessioners holding the mining licenses that process mineral
products by themselves, their sales income shall be calculated according to
state prices; where the state does not fix the prices, their sales income
shall be calculated according to the average prices of the mineral products
on the local markets at the time of collection.

For concessioners that sell mineral products out of the territory, their
sales income shall be calculated according to the prevailing sales prices on
the international markets.

The term “mineral products” mentioned in these Provisions shall refer to
those products extracted or mined and separated from mineral resources which,
having been mined or separated, are no longer in their natural state.

Article 4 The mineral resources compensation shall be paid by
concessioners.

The mineral resources compensation shall be settled in the currency used
in the sales of mineral products; where the mineral products are processed by
concessioners themselves, the settlement shall be made in the currency used
in sales of the end products.

Article 5 The mineral resources compensation shall be calculated in
accordance with the following formulas:

amount of the mineral resources compensation to be collected = sales
income of mineral products x compensation rate x coefficient of mining
recovery rate

Where,

coefficient of mining recovery rate =

approved mining recovery rate

________________________________

actual mining recovery rate

The approved mining recovery rate shall be the rate prescribed in the
mine design that has been approved in accordance with the relevant provisions
of the state. With regard to those mining enterprises that, according to the
relevant provisions of the state, are not required to prepare the mine design
in addition to the mining plan, the mining recovery rate shall be determined
by the administrative departments in charge of geology and mineral resources
under the local people’s governments at or above the county level together
with other relevant departments at the same level.

For those minerals whose mineral resources compensation cannot be
calculated in the formulas provided for in paragraphs 1 and 2 hereof, the
competent department in charge of geology and mineral resources under the
State Council shall make other calculation formulas together with the
department of finance under the State Council separately.

Article 6 The mineral resources compensation shall be collected at the
rates prescribed in the appendix of these Provisions.

Any adjustment to the rates of the mineral resources compensation shall
be jointly determined by the department of finance under the State Council,
the competent department in charge of geology and mineral resources under the
State Council and the competent department in charge of planning under the
State Council, and submitted to the State Council for approval and
implementation.

Article 7 The mineral resources compensation shall be collected by the
competent departments in charge of geology and mineral resources together
with the departments of finance.

Where a mining district is within a county-level administrative region,
the administrative department in charge of geology and mineral resources
under the people’s government at the county level of the place where the
mining district is located shall be responsible for collecting the mineral
resources compensation.

Where a mining district extends across more than one administrative
region at or above the county level, the administrative department in charge
of geology and mineral resources under the people’s government at the next
higher level of all the administrative regions involved shall be responsible
for collecting the mineral resources compensation.

Where a mining district extends across more than one provincial
administrative region, or is within the territorial seas of the People’s
Republic of China or other sea areas under its jurisdiction, the competent
department in charge of geology and mineral resources under the provincial
people’s governments authorized by the competent department in charge of
geology and mineral resources under the State Council shall be responsible
for collecting the mineral resources compensation.

Article 8 Concessioners shall pay the mineral resources compensation for
the first half of each year on or before July 31 of the year, and pay the
mineral resources compensation for the second half of the year on or before
January 31 of the following year.

Concessioners shall, when their mining activities are suspended or
terminated, settle and pay their mineral resources compensation.

Article 9 Concessioners shall, at the time of paying their mineral
resources compensation, submit at the same time the data as to the mineral,
the output, the sales volume, the sales price, the actual mining recovery
rate and others of their mineral products mined.

Article 10 The mineral resources compensation collected shall be timely
and fully turned over to the Central Treasury on the spot, and be separately
settled at the end of the year according to the distribution ratio between
the Central Government and the provinces, autonomous regions or
municipalities directly under the central government set forth in the
following paragraph:

The distribution ratio of the mineral resources compensation between the
central government and the provinces or municipalities directly under the
central government shall be 5:5; and that between the central government and
autonomous regions shall be 4:6.

Article 11 The mineral resources compensation shall be included in the
state budget, conducted the specific management and mainly used for mineral
resources exploration.

The department of finance under the State Council, the competent
department in charge of geology and mineral resources under the State Council
and the competent department in charge of planning under the State Council
shall be jointly responsible for formulating the specific measures for the
use and management of the mineral resources compensation received by the
central government.

The people’s government of a province, autonomous region or municipality
directly under the central government shall be responsible for formulating
the specific measures for the use and management of the mineral resources
compensation received by the localities.

Article 12 Concessioners may be exempted from the mineral resources
compensation, upon joint approval of the competent department in charge of
geology and mineral resources under the provincial government and the
department of finance at the same level, under any one of the following
circumstances:

(1) where mineral products are recovered from barren rock (waste rock);

(2) where non-security left-over ore bodies of closed mines are mined
upon approval pursuant to the relevant provisions of the state; and

(3) other circumstances where the exemption from the mineral resources
compensation are determined by the competent department in charge of geology
and mineral resources under the State Council together with the department of
finance under the State Council.

Article 13 The mineral resources compensation may be reduced, upon joint
approval of the competent department in charge of geology and mineral
resources under the provincial people’s government and the department of
finance at the same level, for concessioners under the following
circumstances:

(1) where the mineral products are recovered from tailings;

(2) where the low grade mineral resources that are below the industrial
grade or whose reserves have not been calculated are mined;

(3) where the mineral resources under waters, buildings, or vital
communication lines are mined in accordance with the law;

(4) where policy losses are incurred as a result of carrying out the
state fixed prices; and

(5) other circumstances where the reduction of the mineral resources
compensation are determined by the competent department in charge of geology
and mineral resources under the State Council together with the department of
finance under the State Council.

Approval from the provincial people’s government shall be required if the
mineral resources compensation to be reduced for a concessioner exceeds 50%
of the amount of the mineral resources compensation payable.

Any reduction approval of the mineral resources compensation shall be
reported to both the competent department in charge of geology and mineral
resources under the State Council and the department of finance under the
State Council for record.

Article 14 In case any concessioner fails to pay the mineral resources
compensation in full within the prescribed time limit, the collecting
authorities shall, in addition to setting a dead line for the payment, impose
an overdue fine of 0.2% per day on the amount in arrears, counting from the
day on which the payment becomes overdue.

In case any concessioner fails to pay the mineral resources compensation
fees and the overdue fine in accordance with the provisions of the preceding
paragraph, the collecting authorities shall impose penalty of up to three
times the amount of the compensation payable. If the case is serious, the
concessioner’s mining license shall be revoked by the original licensing
authorities.

Article 15 In case any concessioners do not pay or underpay the mineral
resources compensation by means of misrepresenting the minerals, concealing
the output, sales volume, or misrepresenting the selling prices or actual
mining recovery rate, the collecting authorities shall pursue the payment
of the compensation payable, and impose a penalty of up to five times the
amount of the compensation payable; if the case is serious, the
concessioner’s mining license shall be revoked by the original licensing
authorities.

Article 16 In case any concessioner fails to submit the relevant data
pursuant to the provisions of Article 9 of these Provisions, the collecting
authorities shall set a deadline for submission; in case of failure to
submit within the prescribed time limit, a fine up to 5,000 yuan shall be
imposed; and in case the concessioner still fails to submit the data, its
mining license may be revoked by the original licensing authorities.

Article 17 The penalties imposed on and overdue fines paid by
concessioners in accordance with these Provisions shall be turned over to
the State Treasury.

Article 18 If a party concerned is not satisfied with the decision on
administrative penalties, the party may, within 15 days from the date of
receipt of the notification on the administrative penalties, apply for
reconsideration to the authorities at the next higher level than that which
made the decision on the administrative penalties; the party may also
directly institute legal proceedings in the people’s court within 15 days
from the date of receipt of the notification on the penalties.

In the event of the party concerned failing both to apply for
reconsideration or initiate legal proceedings with a people’s court and to
comply with the penalty decision within the specified period, the authorities
which made the decision on the penalties may apply to the people’s court for
enforcement.

Article 19 Where the contents of any local regulations, rules or
administrative documents promulgated by local people’s governments before the
promulgation of these Provisions are in conflict with these Provisions, these
Provisions shall prevail.

Article 20 The people’s governments of provinces, autonomous regions and
municipalities directly under the central government may, in accordance with
these Provisions, formulate measures for the implementation of these
Provisions.

Article 21 The Ministry of Geology and Mineral Resources shall be
responsible for the interpretation of these Provisions.

measures for

collection

administration

will be

formulated

elsewhere by

the State Council
______________________________________________________________________________

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON PUNISHMENT OF THE CRIMES OF INFRINGING COPYRIGHT

Category	CRIMINAL LAW	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	Invalidated
Date of Promulgation	1994-07-05	Effective Date	1994-07-05	Date of Invalidation	1997-10-01

Decision of the Standing Committee of the National People’s Congress on Punishment of the Crimes of Infringing Copyright

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

National People’s Congress, promulgated by Order No.30 of the President of
the People’s Republic of China and effective as of July 5, 1994)(Editor’s
Note: This Decision has been invalidated by the Criminal Law of the People’s
Republic of China revised at the Fifth Session of the Eighth National
People’s Congress on March 14, 1997, and effective on October 1, 1997)

With a view to punishing crimes of infringing copyright and copyright-
related rights and interests, the following provisions supplementary to the
Criminal Law are made.

1. In any of the following cases of infringing copyright, for the purpose
of reaping profits, where the amount of illegal gains is relatively large
or there are other serious circumstances, the offender shall be sentenced
to not more than three years of fixed-term imprisonment, to criminal
detention, or independently or additionally to a fine; where the amount of
illegal gains is large or there are other especially serious circumstances,
the offender shall be sentenced to not less than three years and not more than
seven years of fixed-term imprisonment and a fine:

(1) Producing and distributing, without the permission of the copyright
holder, his written work, musical work, cinematic work, television work,
video work, computer software and other works;

(2) Publishing a book of which another person has the exclusive publishing
right;

(3) Reproducing and distributing, without the permission of the phonogram
or videogram producer, the phonogram or videogram produced by him;

(4) Producing and selling a work of art bearing the forged signature of
another person.

2. Whoever sells, for the purpose of reaping profits, those which he well
knows are infringing reproductions specified in the first article, where the
amount of his illegal gains is relatively large, shall be sentenced to not
more than two years of fixed-term imprisonment or to criminal detention or
independently or additionally to a fine; where the amount of his illegal gains
is large, the sentence shall be not less than two years and not more than five
years of fixed-term imprisonment and a fine.

3. Where an organization commits a criminal act specified in this
Decision, it shall be sentenced to a fine, and the directly responsible
persons in charge and other directly responsible persons shall be punished in
accordance with the provisions of this Decision.

4. The discovered and seized infringing reproductions, illegal gains, and
materials, tools, equipment or other property belonging to the offending
organization or individual and used mainly in the crime of infringing
copyright, shall, without exception, be confiscated.

5. Whoever commits the crime specified in this Decision and causes the
infringed party to suffer loss, in addition to being investigated for criminal
responsibility in accordance with this Decision, shall be, according to
circumstances, sentenced to payment of compensation for loss in law.

6. This Decision shall come into force on the date of its promulgation.

LETTER OF THE STATE ADMINISTRATION OF TAXATION ON POLICY QUESTION RELATED TO EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Letter of the State Administration of Taxation on Policy Question Related to Export Goods of Enterprises with Foreign Investment

GuoShuiFaZi [1994] No.558

October 12,1994

The State Tax Bureau of Jiangsu:

We have recently acknowledged the receipt of letters written to Director Liu Zhongli by Far East, Toyotas and eight other enterprises
with foreign investment in Changzhou City, Jiangsu Province, saying that because the export goods of enterprise with foreign investment
are not given tax reimbursement, these enterprises have faced a series of difficulties and have even suffered losses, demanding that
the export tax reimbursement policy be materialized as quickly as possible. Similar opinions have been heard from other localities.
Regarding this, we hereby specially make the following explanations, please do proper work with related enterprises respectively
by the verbal method.

With regard to the question of taxation related to the export goods of enterprises with foreign investment, the Ministry of Finance
and the State Administration of Taxation had made explicit stipulations in the Circular (CaiShuiZi(94)No.058) on August 25, 1994
. Its main contents are: The goods produced by enterprises with foreign investment which are exported directly are, except otherwise
there are separate stipulations, exempt from value-added tax and consumption tax; goods sold to domestic export-oriented enterprises
or entrusted to domestic export-oriented enterprises with exporting shall all be regarded as goods for internal sales, and value-added
tax and consumption tax shall be levied on them; among the goods for direct export, the amount of tax borne for the purchase of domestic
raw and semi-finished materials shall not be refunded. The above-mentioned stipulations are set down in line with the principle of
introducing fair burden to facilitate equal competition among various types of enterprises and maintaining the continuity and stability
of the taxation policy. Specifically, maintaining the original tax exemption policy toward the export goods of enterprises with foreign
investment is based on an overall consideration of the comprehensive level of tax burden on enterprises with foreign investment and
domestic enterprises, it is so determined in order to facilitate a gradual achievement of a rough balance of tax burden.

At present and for a period of time to come, enterprises with foreign investment are enjoying preferential tax policy in many aspects,
their tax burden is much lower than that for similar domestic enterprises.

Firstly, from January 1 of this year, China introduced major reform of its tax system. After implementation of the new tax system,
a unified turnover tax system was carried out among enterprises with foreign investment and domestic enterprises, the tax burden
on various trades or products has become more rational. However: to ensure that tax burden on enterprises with foreign investment
will not increase as a result of tax system reform, so as to maintain the continuity of policy, the Standing Committee of the National
people’s Congress on December 29, 1993 passed a decision that the increased tax burden on enterprises with foreign investment due
to implementation of the new turnover tax system and that the part of extra tax payment shall be returned within five years, thereby
enabling the tax burden on enterprises with foreign investment to remain at a relatively low level within the prescribed period.

Secondly, after the launch of tax system reform this year, enterprises with foreign investment have continued to implement 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 in April 1991. In accordance with the stipulations of the law, enterprises with foreign investment enjoy a number
of preferential policies superior to those for Chinese-funded enterprises in terms of income tax payment, the level of their tax
burden is much lower than that of domestically funded enterprises.

Thirdly, in accordance with related stipulations of the state, some special preferential policies, enjoyed by enterprises with foreign
investment for their import goods during the time when consolidated industrial and commercial tax was being implemented, continue
to be in force.

From the above-mentioned points it can be seen that the state grants fully preferential taxation treatment to enterprises with foreign
investment and their tax burden is obviously lower than that for domestic enterprises. Fair tax burden refers to tax burden in general,
one should not see the weight of tax burden of only one certain link. The reason why the tax exemption policy, rather than the tax
reimbursement policy, is implemented for enterprises with foreign investment in relation to their export goods is that the above-mentioned
situation has taken into consideration and the principle of both maintaining the original rational preferential taxation policy and
facilitating the gradual realization of a rough balance of tax burden on various types of enterprises.

We believe that doing so is beneficial to gradually unifying the state’s taxation policy, promoting equal competition among various
types of enterprises and proceeding to boost the development of the market economy.

The State Administration of Taxation
1994-10-12

RULES FOR IMPLEMENTATION OF THE THE CONTROL OF THE EXIT AND ENTRY OF CITIZENS

Category	PUBLIC SECURITY	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1994-07-15	Effective Date	1994-07-15

Rules for Implementation of the Law of the People’s Republic of China on the Control of the Exit and Entry of Citizens

Chapter I  General Provisions
Chapter II  Exit from the Country
Chapter III  Entry into the Country
Chapter IV  Exit and Entry Inspection
Chapter V  Administration of Certificates
Chapter VI  Penalties
Chapter VII  Supplementary Provisions

(Approved by the State Council on December 3, 1986, promulgated by the

Ministry of Public Security, the Ministry of Foreign Affairs and the Ministry
of Communications on December 26, 1986, amended with the approval of the State
Council on July 13, 1994 and promulgated by the Ministry of Public Security,
the Ministry of Foreign Affairs and the Ministry of Communications on July 15,
1994)
Chapter I  General Provisions

Article 1 These Implementation Rules are formulated in accordance with
the stipulations in Article 19 of the “Law of the People’s Republic of China
on the Control of the Exit and Entry of Citizens”.

Article 2 These Implementation Rules shall apply to Chinese citizens
entry into and exit from China on private business. The term “private
business” means residing, visiting relatives, visiting friends, inheriting
properties, studying abroad, obtaining employment, making a tour, and other
non-official business.
Chapter II Exit from the Country

Article 3 Citizens residing in China that wish to leave the country on
private business shall apply to the entry-exit control department of the
municipal or county public security bureau in which their residence is
registered, answer relevant questions, and go through the following procedures:

(1) to present, for examination, their residence booklets or other
certificates of residence registration;

(2) to fill in the exit application form;

(3) to submit the written comments of the applicant’s work unit on the
applicant’s exit from the country; and

(4) to present relevant certificates supporting the applicant’s reasons
for exit from the country.

Article 4 The relevant certificates mentioned in Item (4) of Article 3 of
these Implementation Rules mean:

(1) for leaving the country to reside permanently in a foreign country,
the certification of consent of the applicant’s relative(s) or friend(s) in
the country where the applicant is to reside or the residence permit issued by
the country of destination;

(2) for leaving the country to visit relative(s) or friend(s), the
certification of written invitation sent by the applicant’s relative(s) or
friend(s);

(3) for leaving the country to inherit properties, the certification of
the legitimate right of the applicant’s inheritance;

(4) for leaving the country to study abroad, the certification of
admittance by the educational institution and also the necessary financial
affidavit;

(5) for leaving the country to obtain employment, the certification of
engagement or employment by the host/hiring organization or employer; or

(6) for leaving the country to make a tour, the certification indicating
that the applicant has the foreign exchange needed for the tour.

Article 5 The municipal or county public security bureau shall decide to
approve or disapprove the exit application and notify the applicant within 30
days, or within 60 days for out-of-the-way and difficult-of-access areas,
after receiving the exit application.

In the event that the applicant does not receive the notification about
the decision on the exit application within the prescribed time limits, the
applicant shall have the right to make an inquiry, and the department handling
the application shall give a reply; in the event that the applicant holds that
the decision about the disapproval of the exit application does not accord
with the “Law of the People’s Republic of China on the Control of the Exit and
Entry of Citizens”, the applicant shall have the right to appeal to the public
security organ at a higher level, and the latter shall make a decision and
give a reply.

Article 6 Citizens residing in China whose exit applications have been
approved shall obtain from the entry-exit department of the public security
organ the passport of the People’s Republic of China, together with the exit
registration card.

Article 7 Citizens residing in China who have obtained the visa or the
entry permit for the country of destination shall go through the residence
registration procedure before leaving the country. Those who are leaving to
reside permanently in a foreign country shall go to the local police station
or the residence registration office to cancel their residence registration.
Those who are leaving the country only for a short period of time shall go
through the procedure of residence registration for a short-term absence from
the country and, after returning to China, resume their regular residence
registration at the place of their original residence by presenting their
passports.

Article 8 Chinese citizens who have returned to China may leave the
country again by producing their valid passport of the People’s Republic of
China or valid travel permit or other valid entry-exit certificates.
Chapter III Entry into the Country

Article 9 Chinese citizens residing in foreign country who wish to return
to China to stay for a short period of time may enter the country by producing
their valid passport of the People’s Republic of China or valid travel permit
of the People’s Republic of China or other valid entry-exit certificates.

Article 10 Chinese citizens residing in foreign country who request to
return to and reside permanently in China shall, before entering the country,
make an application to the Chinese diplomatic mission, consular post or other
resident agencies abroad authorized by the Ministry of Foreign Affairs; they
may also make an application by themselves or through their relatives in
China, to the municipal or county public security bureau at the place of their
destination, and the certification of permission of residence shall be granted
for the applicant after examining the cases by the public security
department(bureau) of the relevant province, autonomous region or municipality
directly under the Central Government.

Article 11 Chinese citizens residing in foreign country who request to
return to China for employment shall make an application to China’s labor and
personnel department or to the host/hiring organization.

Article 12 Chinese citizens residing in foreign country who return to
China for permanent residence or for employment shall, within 30 days after
arriving at their destination, go through the procedure for regular residence
registration at the local public security bureau by presenting the
certification of permission of residence or the certification of engagement or
employment examined and approved by China’s labor and personnel department.

Article 13 Chinese citizens residing in foreign country who return to
China to stay for a short period of time shall, in accordance with the
stipulations of residence administration, go through the registration
procedure for temporary residence. Those who lodge at such enterprises and
institutions as guesthouses, hotels, inns, hostels or schools, or at state
organs, public organizations or other institutions shall fill in temporary
lodging registration form; those who lodge at the homes of their relative
or friend shall, by themselves or through their relative or friend, go through
the registration procedure for temporary lodging at the local police station
or at the local residence registration office with 24 hours (72 hours in the
countryside).
Chapter IV Exit and Entry Inspection

Article 14 Chinese citizens shall enter or leave the country from the
designated ports or ports open to aliens, present to the border inspection
office their passport of the People’s Republic of China or other entry-exit
certificates, fill in the entry-exit registration card, and accept the
inspection.

Article 15 The border inspection office shall have the right to forbid
any of the following categories of persons to enter or leave the country:

(1) those who hold no passport of the People’s Republic of China or other
entry-exit certificates;

(2) those who hold invalid passports or other invalid entry-exit
certificates;

(3) those who hold forged or altered passports and certificates, or hold
other than their own passports and certificates; or

(4) those who refuse to produce their certificates for examination.

Persons who fall under the circumstances as stipulated in the preceding
Items (2) and (3) shall be additionally dealt with in accordance with the
provisions in Article 23 of these Implementation Rules.
Chapter V Administration of Certificates

Article 16 The passport and the travel certificate issued the People’s
Republic of China, the principal certificates for Chinese citizens’ entering
and leaving the country, shall be kept and used by the holder. No state agency
or public organization, no enterprise, institution or individual shall
withhold those certificates, excepting that the public security organs and the
original issuing department which have the power to revoke and take over the
certificates according to law, and that the people’s procuratorate and the
people’s court, which have the power to withhold the certificates according to
law.

Article 17 Passports issued by the People’s Republic of China are valid
for 5 years, they may be extended twice, each time not exceeding 5 years. The
application for extension shall be made before the passport expires.

In places outside China, the extension of passports shall be handled by
Chinese diplomatic missions, consular posts or other resident agencies abroad
authorized by the Ministry of Foreign Affairs. In China, the extension of
passports held by Chinese citizens residing abroad shall be handled by the
public security department(bureau) of the province, autonomous region or
municipality directly under the Central Government, and also by the entry-exit
control department of the public security organ authorized by the aforesaid
public security department(bureau); the extension of passports held by Chinese
citizens residing in China shall be handled, before the holders leave the
country, by the entry-exit control department of the public security organs
originally issuing the passports or by the entry-exit control department of
the public security organs in the locality where the holders have their
residence registration.

Article 18 Travel certificates issued by the People’s Republic of China
are classified into two categories: one category is valid for 1 year and one
trip only; the other category is valid for 2 years and multiple trips; these
two categories of travel certificates are issued by the Chinese diplomatic
mission, consular post or other resident agencies abroad
authorized by the Ministry of Foreign Affairs.

Article 19 The entry-exit passes of the People’s Republic of China are
the passes for entering or leaving the national boundary(border), which shall
be issued by the public security department(bureau) of the province,
autonomous region or municipality directly under the Central Government and
the public security organs authorized thereby. The entry-exit pass shall be
valid for one or multiple trips within its term of validity, and those valid
for one trip shall be taken over by the border inspection office when the
holders leave the country.

Article 20 When necessity arises for making alteration or remarks in the
entries of the passport or other entry-exit certificates as a result of the
changes in the holders’ conditions, the holders of passports and other
exit-entry certificates issued by the People’s Republic of China shall make an
application to the entry-exit control department of the municipal or county
public security bureau or to the Chinese diplomatic mission, consular post or
other resident agencies abroad authorized by the Ministry of Foreign Affairs,
and submit to them documents certifying or explaining the alteration or
remarks.

Article 21 In the event that the passports and other entry-exit
certificates issued by the People’s Republic of China, as held by Chinese
citizens, will expire soon, or that the attached pages for visas have been
used up so that the term of validity cannot be extended, or that they have
been damaged and can no longer be used, the holders may apply for a
replacement or a reissue of the passports and the certificates, and shall at
the same time return the old ones; in the event that the holders request to
keep the old passports, the old passports may be bound up with the new ones
for use. Should a passport or an entry-exit certificate be lost, the holder
shall report the case to the Chinese competent department, and publish a
statement in a newspaper announcing its loss before applying for reissuance.
The replacement and reissuance of passports and entry-exit certificates shall
be handled, in any place outside China, by the Chinese diplomatic missions,
consular posts or other resident agencies abroad authorized by the Ministry
of Foreign Affairs, and, in China, by the public security department(bureau)
of the province, autonomous region or municipality directly under the Central
Government and the entry-exit control department of the public security organ
authorized thereby.

Article 22 Passports and other entry-exit certificates issued by the
People’s Republic of China shall be revoked or declared invalid is their
holders are in any of the following circumstances:

(1) the holder has been sent back to China because he/she entered, resided
or stayed in the country of destination illegally;

(2) The holder has used his/her passport and other certificate for
swindling and bluffing; or

(3) the holder is engaged in activities prejudicial to the security, the
honor and the interests of the State.

The decision to revoke passports and other entry-exit certificates or to
declare them invalid shall be made by the original issuing department or by
its higher authorities.
Chapter VI Penalties

Article 23 Persons who have used forged or altered certificates or use
other person’s certificates for entering or leaving the country shall, in
addition to taking over their certificates, be given a warning, or held in
detention for up to 5 days; if the case is so serious that a crime is
committed, the criminal liability shall be inflicted upon the offender in
accordance with the relevant provisions in the “Supplementary Provisions of
the Standing Committee of the National People’s Congress Concerning the
Punishment of the Crimes of Organizing and Transporting Others to Illegally
Cross the National Boundary(Border)”.

Article 24 Persons who have forged, altered, transferred or trafficked in
the entry-exit certificates shall be held in detention for up to 10 days; if
the case is so serious that a crime is committed, the criminal liability shall
be inflicted upon the offender in accordance with the relevant provisions in
the “Criminal Law of the People’s Republic of China and in the Supplementary
Provisions of the Standing Committee of the National People’s Congress
Concerning the Punishment of the Crimes of Organizing and Transporting Others
to Illegally Cross the National Boundary(Border)”.

Article 25 Persons who have given fabricated accounts and presented
forged certificates, or have resorted to bribery, to obtain the entry-exit
certificates, shall be given a warning, or held in detention for up to 5 days
if the case is a minor one; if the case is so serious that a crime is
committed, the criminal liability shall be inflicted upon the offender in
accordance with the relevant provisions in the “Criminal Law of the People’s
Republic of China” and in the “Supplementary Provisions of the Standing
Committee of the National People’s Congress Concerning the Punishment of the
Crimes of Organizing or Transporting Others to Illegally Cross the National
Boundary(border)”.

Article 26 In the event that personnel of the public security organs are
discovered to have taken advantage of their position and power, when executing
the “Law of the People’s Republic of China of the Control of the Exit and
Entry of Citizens” and these Implementation Rules, to demand or accept bribes
or to commit other acts of dereliction of duty, in minor case, a disciplinary
punishment shall be imposed on them by the competent authorities at their
discretion; if the case is so serious that a crime is committed, the criminal
liability shall be inflicted upon the offender in accordance with the relevant
provisions in the “Criminal Law of the People’s Republic of China” and in the
“Supplementary Provisions of the Standing Committee of the National People’s
Congress Concerning the Punishment of the Crimes of Organizing or Transporting
Others to Illegally Cross the National Boundary(Border)”.
Chapter VII Supplementary Provisions

Article 27 Procedures for the control of Chinese citizens leaving the
country on official business and of Chinese ship’s crew leaving the country on
duty shall be formulated separately.

Article 28 These Implementation Rules shall go into effect on the date of
promulgation.

LETTER OF THE MINISTRY OF FINANCE ON THE ACCOUNTING DEALING WITH THE CONSUMPTION TAX OF THE EXPORT DUTIABLE CONSUMABLES

The Ministry of Finance

Letter of the Ministry of Finance on the Accounting Dealing with the Consumption Tax of the Export Dutiable Consumables

CaiKuaiSiZi [1994] No.4

March 2,1994

According to the Interim Regulations of Consumption Tax and Rules of Implementation for it and Concrete Provisions on Tax Refund of
the Export Goods, the export dutiable consumables of taxpayers can be exempted. There are two ways of exemption: direct duty-free
and granting refund after paid first.

The manufacturing enterprises export directly the export dutiable consumables can be granted direct duty-free. If goods are refused
by the customs or sent back after exporting, the enterprises need not pay the tax in arrears at that time with the approval of the
local taxation institution in charge and pay the consumption tax after the goods are transferred to be sold at home.

If the manufacture enterprises deal in the export dutiable consumables through the foreign trade enterprises, the tax should be paid
first and then refunded. It means that the manufacture enterprises pay the consumption tax and apply the tax institution for refund
after the foreign trade enterprises declare at the customs. The refund should be returned to the manufacture enterprises by the foreign
trade enterprises that deal in exporting the goods as an agent of the manufacture enterprises. The refund can be owned by the foreign
trade enterprises to which the manufacture enterprises sell the goods. If goods are refused by the custom or sent back after refund,
the foreign trade enterprises should apply promptly the local tax institutions in charge for paying the consumption tax that has
been refunded according to the related regulations. With regards to the enterprises dealing in exporting as the agent of the manufacture
enterprises, the tax should be paid by the manufacture enterprises.

The reason why tax is paid first and then refunded is that the consumption tax belongs to the tax category in the production field.
The consumption tax should not be levied on the goods that have come out of the field of production and entered into the field of
circulation. When the foreign trade enterprises by themselves or acting as the agent independently deal with exporting the goods
sold by the manufacture enterprises, it shows that the goods have been out of the production field. If the goods are sold at home
instead of exported, the foreign trade enterprises need not pay the consumption tax. Therefore that consumption tax of the goods
are paid by the manufacture enterprises while leaving the production field and refunded after exporting can strengthen the source
of tax and prevent the loss of taxes. If goods are refused by the custom or sent back after refund, the foreign trade enterprises
should apply the local taxation institution in charge for paying the consumption tax in time. If the dutiable consumer goods sent
back are exported again, refund can be applied after custom declaration. If hereinabove goods are sold at home, consumption tax should
not be levied any longer.

The Ministry of Finance
1994-03-02

PROVISIONAL REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CONSUMPTION TAX

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ABSORPTION OF FOREIGN INVESTMENT BY MEANS OF BOT

The Ministry of Foreign Trade And Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning Absorption of Foreign Investment by Means of BOT

WaiJingMaoFaHan [1994] No.89

January 16, 1994

Foreign economic and trade commissions (departments) of all provinces, autonomous regions, municipalities directly under the Central
Government and municipalities separately listed on the State plan:

Since the 1980s, many developing countries have successively adopted BOT to attract foreign capital to such projects as highway, railway,
power station, and sewage treatment, which all turned out to be quite effective. At present, our country is also discussing how to
attract foreign capital to infrastructure building by means of BOT. To standardize and govern the promotion, examination and approval
of projects of this kind, related issues are now notified as follows:

BOT has its specialty in some way, but it should still be included into the existing legal and examination and approval framework
governing enterprises with foreign investment. Foreign investors may set up BOT project companies (hereinafter referred to as project
companies) by means of cooperation, joint venture or sole investment. After the approval of project proposal and the feasibility
study report, the foreign trade and economic authorities should examine and approve the contract and statute of the project company
in accordance with existing laws and procedures of examination and approval governing foreign capital utilization. In light of the
fact that BOT is still at a stage of trial and pilot use, projects of the coastal areas with an investment worth over 30 million
US dollars and projects of the inland areas with an investment worth over 10 million US dollars should be examined and approved by
the Central Government (The project proposals and feasibility study reports should be submitted to the State Development Planning
Commission; the contract and the statute to the Ministry of Foreign Trade and Economic Cooperation) if no specific provisions are
given by the State Council.

The attraction of foreign capital by means of BOT shall comply with the state’s laws and industrial policies on foreign capital utilization
for infrastructure building. At the negotiation stage of the project, foreign investors with strong financial standing and technological
capacity, good reputation and rich experience in BOT projects should be selected for cooperation.

Generally, government agencies should not provide guarantee or commitment of any kind (guarantee of foreign exchange conversion, guarantee
of loans, etc.). If a guarantee is really a necessity for the project, the consent of competent state authorities should first be
obtained in order to make the commitment.

Every local authority should do what it is capable of in the process of foreign capital absorption by means of BOT, taking into account
all local factors, for example, the matching capital situation.

Each local authority is expected to strengthen its examination and approval as well as administration of its BOT projects, study the
encountered problems and summarize the experience, and constantly feedback the related information.

The Ministry of Foreign Trade And Economic Cooperation
1994-01-16

REGULATIONS ON THE ADMINISTRATION OF AUDIO-VISUAL PRODUCTS

Category	CULTURE	Organ of Promulgation	The State Council	Status of Effect	In force
Date of Promulgation	1994-08-25	Effective Date	1994-10-01

Regulations of the People’s Republic of China on the Administration of Audio-visual Products

Chapter I  General Provisions
Chapter II  Publication
Chapter III  Reproduction
Chapter IV  Importation
Chapter V  Wholesale, Retail, Rental and Projection
Chapter VI  Provisions of Penalties
Chapter VII  Supplementary Provisions

(Promulgated by Decree No.165 of the State Council of the People’s

Republic of China on August 25, 1994 and effective as of October 1, 1994)
Chapter I  General Provisions

Article 1 These Regulations are formulated to strengthen the
administration of audio-visual products, promote the healthy development and
flourish of the audio-visual enterprises, enrich the cultural life of the
masses and give impetus to the construction of socialist material civilization
and spiritual civilization.

Article 2 These Regulations shall apply to the administration of the
publication, reproduction, importation, wholesale, retail and rental of such
audio-visual products as audio tapes, video tapes, gramophone records, compact
discs and laser discs on which contents are recorded and of the profit-making
projection of videograms (hereinafter referred to as projection).

Article 3 Persons engaged in operating activities in audio-visual
products shall abide by the constitution and relevant laws and regulations,
adhere to the orientation of serving the people and socialism and disseminate
the ideas, morals and scientific, technical and cultural knowledge beneficial
to economic development and social progress.

Dealings in audio-visual products with the following contents are
prohibited:

(1) that which endangers the unity and territorial integrity of the nation
and sovereignty of the State;

(2) that which incites the splitting of the nation and undermines national
solidarity;

(3) that which divulges secrets of the State;

(4) that which propagates obscenity and superstition or glorifies violence;

(5) that which slanders or insults others; and

(6) other contents of which the publication and dissemination are
prohibited as stipulated by the State.

Article 4 The State delegates the administration of audio-visual products
to different departments at various levels.

The administrative department responsible for the press and the publishing
industry under the State Council shall take charge of the publication,
reproduction and importation of audio-visual products nation-wide; the
administrative department responsible for cultural affairs and the
administrative department responsible for broadcasting, cinema and television
under the State Council shall jointly constitute an examining organ of the
contents of audio-visual products (hereinafter referred to as the examining
organ) to take charge of examining the contents of audio-visual products
nation-wide; the administrative department responsible for cultural affairs
under the State Council shall take charge of the wholesale, retail, rental and
projection of audio-visual products nation-wide.

The other relevant administrative departments under the State Council
shall, in accordance with the division of duties prescribed by the State
Council, assist the departments listed above in the administration of
audio-visual products.

The division of the work among the relevant departments of local People’s
Governments at or above the county level in the administration of audio-visual
products shall be determined by the provincial People’s Government.

The higher competent administrative department and the sponsor entity of
units dealing in audio-visual products shall, in accordance with the relevant
provisions of the State, supervise the operating activities of their
subordinate units dealing in audio-visual products.

Article 5 The State shall enforce a licence system of the publication,
reproduction, importation, wholesale, retail, rental and projection in
audio-visual products.

Article 6 The higher competent administrative departments of units
dealing in audio-visual products shall practise the rule of separating the
functions of an enterprise from those of a government department and may not
engage in the operating activities in audio-visual products nor participate in
the operating activities of their subordinate units dealing in audio-visual
products.
Chapter II Publication

Article 7 The administrative department responsible for the press and the
publishing industry under the State Council shall be responsible for
formulating a development program concerning the audio-visual publishing
enterprises and determining the total number, distribution and structure of
the audio-visual publishing units nation-wide.

Article 8 To establish an audio-visual publishing unit, the following
conditions should be met:

(1) To conform to the development program for audio-visual publishing
enterprises;

(2) To have a set of articles of association conforming to the provisions
of these Regulations;

(3) To have a well-defined scope of business;

(4) To have an organization suitable to the needs of its scope of business
and personnal conforming to the prescribed qualification requirements in the
audio-visual publication;

(5) To have the necessary funds and equipment together with regular
production premises.

Article 9 To apply for establishing an audio-visual publishing unit, the
higher administrative department responsible for the applicant unit shall
submit the application to the administrative department for audio-visual
products of the People’s Government of the province, autonomous region or
municipality directly under the Central Government where the applicant unit is
located for examination and, on obtaining the consent of the People’s
Government of the province, autonomous region or municipality directly under
the Central Government, the administrative department for audio-visual
products of the People’s Government of the province, autonomous region or
municipality directly under the Central Government shall submit the
application to the administrative department responsible for the press and the
publishing industry under the State Council for examination and approval. The
latter shall, within 90 days from the date of receipt of the application, make
a decision approving or not approving the application.

The application shall include the following items:

(1) the name and address of the audio-visual publishing unit and the
economic sector to which it belongs;

(2) the names and addresses of the higher administrative department
responsible for, and the sponsor unit of, the audio-visual publishing unit and
the economic sector to which each of them belongs;

(3) the name, address and qualification certifying documents of the
principal responsible person or legal representative of the audio-visual
publishing unit;

(4) the source and amount of funds of the audio-visual publishing unit.

Article 10 After the administrative department responsible for the press
and the publishing industry under the State Council has approved the
application for establishing the audio-visual publishing unit and issued the
unit with a Licence for Publishing and Dealing in Audio-visual Products, the
applicant unit shall take the Licence to the administrative department for
industry and commerce in the place where the unit is located for registration
within 60 days.

On the basis of the Licence for Publishing and Dealing in Audio-visual
Products issued by the administrative department responsible for the press and
the publishing industry under the State Council and of the relevant provisions
in respect of the administration of industry and commerce, the administrative
department for industry and commerce shall issue the applicant unit with a
business licence.

Article 11 An audio-visual publishing unit intends to change its name,
its relation of subordination or its business scope, it shall go through the
formalities of examination, approval and registration again in accordance with
the provisions of Articles 9 and 10 of these Regulations.

An audio-visual publishing unit intends to change its address, principal
responsible person or legal representative, it shall go through the
formalities of altering its registration at the initial organ of issuance of
the Licence.

An audio-visual publishing unit intends to terminate its publishing
operations and dealings, it shall go through the formalities of cancellation
of its registration at the initial organ of issuance of the licence within 30
days from the date of cessation of its operating activities.

Article 12 An audio-visual product is published, such data as the name,
address and publisher’s code of the publishing unit, the number of its Licence
for Distribution, the time of publication and the name of the copyright owner
shall be indicated in a prominent position on the audio-visual product and its
packaging.

The audio-visual publishing unit shall, within 30 days from the date of
publication of the audio-visual product, present a sample to the Archives
Library of Chinese Publications.

Article 13 An audio-visual publishing unit may not transfer, hire out or
sell its name or publisher’s code to any unit or individual.

Article 14 No unit or individual may purchase or forge the name or
publisher’s code of an audio-visual publishing unit or engage in the illegal
publication of audio-visual products.

Article 15 The specific procedures for cooperative production of
audio-visual products between an audio-visual publishing unit and an
organization or individual in the region of Hong Kong, Macau or Taiwan or in a
foreign country, shall be formulated by the administrative department
responsible for the press and the publishing industry under the State Council
jointly with the administrative department for cultural affairs and the
administrative department for broadcasting, cinema and television under the
State Council.

Matters concerning copyright in a contract of cooperative production of
audio-visual products have to be registered with the administrative department
for copyright affairs under the State Council.

Article 16 No book-publishing unit may publish audio-visual products not
in support of books published under its own imprint. A book-publishing unit
intends to engage in publishing operations of audio-visual products in support
of books published under its own imprint, it shall go through the formalities
of examination and approval in accordance with the provisions of Article 9 of
these Regulations.

Article 17 An audio-visual publishing unit shall publish audio-visual
products in accordance with the approved list of selected post_titles. The
administrative procedures regarding lists of selected post_titles shall be
formulated by the administrative department responsible for the press and the
publishing industry under the State Council.

Article 18 The contents of the audio-visual products published by an
audio-visual publishing unit (including audio-visual products produced by the
unit in cooperation with an organization or individual in the region of Hong
Kong, Macau or Taiwan or in a foreign country) shall have their contents to be
examined in accordance with the provisions of the examining organ concerning
the contents of audio-visual products, which organ will then issue a Licence
for Distribution in Audio-visual Products, before they can be reproduced or
sold wholesale or retail.

The administrative procedures regarding a Licence for Distribution in
Audio-visual Products shall be formulated by the administrative department
responsible for the press and the publishing industry under the State Council
jointly with the administrative department for cultural affairs and the
administrative department for broadcasting, cinema and television under the
State Council.
Chapter III Reproduction

Article 19 The administrative department responsible for the press and
the publishing industry under the State Council shall, in accordance with the
development program of audio-visual publishing enterprises, determine the
total number, distribution and structure of reproduction units for
audio-visual products nation-wide.

Article 20 To establish an audio-visual reproducing unit, the following
conditions should be met:

(1) To conform to the development program for audio-visual enterprises;

(2) To have a well-defined scope of business;

(3) To have an organization suitable to the needs of its scope of business;

(4) To have the necessary funds, equipment and reproduction premises.

Article 21 To apply for establishing an audio-visual reproducing unit,
the higher administrative department responsible for the applicant unit shall
submit the application to the administrative department for audio-visual
products of the People’s Government of the province, autonomous region, or
municipality directly under the Central Government where the applicant unit is
located for examination and, on obtaining the consent of the People’s
Government of the province, autonomous region, or municipality directly under
the Central Government, the administrative department for audio-visual
products of the People’s Government of the province, autonomous region or
municipality directly under the Central Government shall submit the
application to the administrative department responsible for the press and the
publishing industry under the State Council for examination and approval. The
latter shall make a decision within 90 days from the date of receipt of the
application.

The application shall include the following items:

(1) the name and address of the audio-visual reproducing unit and the
economic sector to which it belongs;

(2) the names and addresses of the higher administrative department
responsible for, and the sponsor entity of, the audio-visual reproducing unit
and the economic sector to which each of them belongs;

(3) the name, address and qualification certifying documents of the
principal responsible person or legal representative of the audio-visual
reproducing unit;

(4) the source and amount of the funds of the audio-visual reproducing
unit.

Article 22 After the administrative department responsible for the press
and the publishing industry under the State Council has approved the
application for establishing the audio-visual reproducing unit and issued the
applicant unit with a Licence for Reproducing and Dealing in Audio-visual
Products, the applicant unit shall take the Licence to the local
administrative department for industry and commerce for registration within 60
days.

On the basis of the Licence for Reproducing and Dealing in Audio-visual
Products issued by the administrative department responsible for the press and
the publishing industry under the State Council and of the relevant provisions
in respect of the administration of industry and commerce, the administrative
department for industry and commerce shall issue the applicant unit with a
business licence.

Article 23 An audio-visual reproducing unit intends to change its name,
its relation of subordination or its business scope, it shall go through the
formalities of examination, approval and registration again in accordance with
the provisions of Articles 21 and 22 of these Regulations.

An audio-visual reproducing unit intends to change its address, principal
responsible person or legal representative, it shall go through the
formalities of altering its registration at the initial organ of issuance of
the Licence.

An audio-visual reproducing unit intends to terminate its reproducing
operations and dealings, it shall go through the formalities of cancelling its
registration at the initial organ of issuance of the Licence within 30 days
from the date of cessation of its operating activities.

Article 24 An audio-visual publishing unit may entrust an audio-visual
reproducing unit approved by the State with the reproduction of audio-visual
products. But it may not entrust the audio-visual reproducing unit with the
reading and editing of audio-visual products.

Article 25 An audio-visual reproducing unit shall reproduce audio-visual
products on the strength of the certificate of entrustment drawn up by an
audio-visual publishing unit. When accepting an entrusting order, the
audio-visual reproducing unit shall require the entrusting unit to provide the
relevant certifying documents.

Certifying documents mentioned in the section above include a copy each of
the Licence for Publishing and Dealing in Audio-visual Products and the
business licence of the entrusting unit, a certificate of entrustment with the
signature or seal of the principal responsible person or legal representative
affixed, the Licence for Distribution in Audio-visual Products, and the
written authorization of the copyright owner.

The audio-visual reproducing unit shall conclude with the entrusting unit
a contract in which the entrusting unit shall entrust it with the
reproduction, and it shall reproduce the audio-visual products according to
the stipulations in the contract.

The audio-visual reproducing unit shall preserve samples of the
audio-visual products it reproduces and the relevant certifying documents.

No audio-visual reproducing unit may accept an entrusting order to
reproduce profit-making audio-visual products from a unit or individual other
than an audio-visual publishing unit. The audio-visual reproducing unit may
not reproduce and sell audio-visual products, wholesale or retail, of its own
accord.

Article 26 An audio-visual reproducing unit accepts master tapes and
moulds provided from abroad to reproduce audio-visual products, it shall
submit the master tapes and moulds to the administrative department for
audio-visual products at the provincial level to be examined as to their
contents, and shall take the letter of authorization of the copyright owner to
the administrative department for copyright affairs for registration. The
audio-visual products reproduced shall all be sold abroad.
Chapter IV Importation

Article 27 The examining organ of the contents of audio-visual products
shall be responsible for examining the contents of imported audio-visual
products. After they are examined and found to be up to standard, the
administrative department for cultural affairs and the administrative
department for broadcasting, cinema and television under the State Council
shall, each according to the division of their responsibility, issue a Licence
for Distribution in Audio-visual Products and report the matter to the
administrative department responsible for the press and the publishing
industry under the State Council for the record, before the imported
audio-visual products can be reproduced and sold wholesale or retail.

Article 28 Audio-visual products used for reproduction are imported, the
relevant data on copyright have to be submitted to the administrative
department for copyright affairs under the State Council for registration.

Audio-visual products imported for reference in research, teaching and
studing shall not be used for profit-making reproduction, wholesale, retail,
rental and projection.
Chapter V Wholesale, Retail, Rental and Projection

Article 29 A unit intending to apply for engaging in general wholesale
operations in audio-visual products shall file an applicacion with the
administrative department for audio-visual products in the People’s Government
of the province, autonomous region or municipality directly under the Central
Government where the unit is located. After the application is examined and
consented to, it shall be submitted to the administrative department for
cultural affairs under the State Council for examination and approval. After
the application has been approved and the unit has obtained a Licence for
Engaging in Wholesale Operations in Audio-visual Products, the unit shall take
the Licence to the administrative department for industry and commerce in the
People’s Government of the province, autonomous region or municipality
directly under the Central Government where the unit is located for
registration and take out a business licence.

A unit intending to apply for engaging in wholesale operations in
audio-visual products shall filed an application with the administrative
department for audio-visual products in the People’s Government of the
province, autonomous region or municipality directly under the Central
Government where the unit is located for examination and approval. After the
application has been approved and the unit has obtained a Licence for Engaging
in Wholesale Operations in Audio-visual Products, the unit shall take the
Licence to the administrative department for industry and commerce in the
People’s Government of the province, autonomous region or municipality
directly under the Central Government where the unit is located for
registracion and take out a business licence.

A unit intending to apply for engaging in retail or rental operations in
audio-visual products shall file an application with the administrative
department for audio-visual products in the People’s Government at the county
level in the place where the unit is located for examination and approval.
After the application has been approved and the unit has obtained a Licence
for Engaging in Retail Operations in Audio-visual Products or a Licence for
Engaging in Rental Operations in Audio-visual Products, the unit shall take
the Licence to the administrative department for industry and commerce in the
place where the unit is located for registration and take out a business
licence.

A unit intending to apply for engaging in projection operations in
audio-visual products shall file an application with the administrative
department for audio-visual products in the People’s Government of the
province, autonomous region or municipality directly under the Central
Government where the unit is located for examination and approval. After the
application has been approved and the unit has obtained a Licence for Engaging
in Projection Operations in Audio-visual Products, the unit shall take the
Licence to the administrative department for industry and commerce in the
place where the unit is located for registration and take out a business
licence.

No unit or individual may engage in such operating activities as the
wholesale, retail, rental and projection in audio-visual products without
having obtained an operating licence and a business licence.

Article 30 An audio-visual publishing unit may sell audio-visual products
published by itself in accordance with the relevant stipulations of the State.
It intends to engage in sale operations in audio-visual products not published
by itself, it shall go through the formalities of examination and approval in
accordance with the provisions of Article 29 of these Regulations.

Article 31 An audio-visual reproducing unit may not engage in sale
operations in audio-visual products.

Article 32 Units engaging in wholesale, retail, rental and projection
operating activities in audio-visual products may not deal in audio-visual
products for which no Licence for Distribution in Audio-visual Products has
been obtained, nor may they deal in audio-visual products infringing the
copyright of others.

Audio-visual products for exclusive home use may not be used for
profit-making projection.

Article 33 The administrative departments for audio-visual products in
the local People’s Governments at or above the county level have the power to
supervise and inspect the wholesale, retail, rental and projection activities
in audio-visual products within their administrative regions and to
investigate and deal with acts of illegal wholesale, retail, rental and
projection in audio-visual products.
Chapter VI Provisions of Penalties

Article 34 Anyone, in contravention of these Regulations, has committed
one of the following acts, the administrative department for the press and the
publishing industry under the State Council or the administrative department
for audio-visual products in a local People’s Government at or above the
county level shall, according to the seriousness of the case, deal with the
actor by giving him or it a warning or ordering him or it to desist from
publishing, reproducing, or selling audio-visual products, or having the
illegal audio-visual products confiscated and destroyed, or having his or its
illegal income confiscated, or his or its operating licence for publication or
reproduction of audio-visual products revoked, and may in addition impose on
him or it a fine of more than five times and less than ten times the amount of
the illegal income:

(1) where an audio-visual publishing unit transfers, hires out or sells
its own name or publisher’s code to another unit or individual;

(2) where a book publishing unit publishes audio-visual products not in
support of books published by itself or publishes audio-visual products in
support of books published by itself without obtaining approval;

(3) where an unit other than an audio-visual publishing unit publishes
audio-visual products;

(4) where an audio-visual publishing unit publishes audio-visual products
for which no Licence for Distribution in Audio-visual Products has been
obtained;

(5) where an unit other than an audio-visual reproducing unit reproduces
audio-visual products;

(6) where an audio-visual reproducing unit reproduces audio-visual
products without entrustment or reproduces audio-visual products for which no
Licence for Distribution in Audio-visual Products has been obtained;

(7) where audio-visual products are made in cooperation with organizations
or individuals in the region of Hong Kong, Macau or Taiwan or in foreign
countries without having been approved;

(8) where audio-visual products are imported without having been approved;

(9) where audio-visual products with contents banned by Article 3(2) of
these Regulations are published or reproduced.

The administrative punishment of revoking a licence for engaging in
audio-visual product publishing or reproducing operations has to be approved
by the administrative department for the press and the publishing industry
under the State Council.

Anyone who has committed an act specified in Section 1 of this Article,
constituting a crime, shall be prosecuted for his criminal liability according
to law.

Article 35 Anyone, in contravention of these Regulations, has committed
one of the following acts, the administrative department for cultural affairs
under the State Council or the administrative department for audio-visual
products under a local People’s Government at or above the county level shall,
according to the seriousness of the case, deal with him by giving him a
warning, or ordering him to desist from the wholesale, retail, rental and
projection of the illegal audio-visual products, or confiscati

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATION OF THE URBAN REAL ESTATE

The Standing Committee of the National People’s Congress

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

No.29

The Law of the People’s Republic of China on Administration of the Urban Real Estate, adopted at the Eighth Meeting of the Standing
Committee of the Eighth National People’s Congress on July 5, 1994, is promulgated now, and shall enter into force as of January
1, 1995.

President of the People’s Republic of China Jiang Zemin

July 5, 1994

Law of the People’s Republic of China on Administration of the Urban Real Estate ContentsChapter I General Provisions

Chapter II Land Used for Development of Real Estate

Section 1 Granting of the Land-use Right

Section 2 Allocation of the Land-use Right

Chapter III Development of Real Estate

Chapter IV Transaction of Real Estate

Section 1 General Conditions

Section 2 Transfer of Real Estate

Section 3 Mortgage of Real Estate

Section 4 Lease of Houses

Section 5 Intermediary Service Agencies

Chapter V Administration of Real Estate Ownership Registration

Chapter VI Legal Liability

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated in order to strengthen administration of the urban real estate, maintain the order of real estate market, protect
the legitimate rights and interests of real estate obligees and promote the healthy development of real estate business.

Article 2

Obtaining the land-use right for development of real estate, engaging in development of real estate and transaction of real estate,
and exercising administration of real estate in the State-owned land within a planned urban district in the People’s Republic of
China (hereinafter referred to as the State-owned land) shall comply with this Law.

“Houses” as used in this Law means buildings and structures such as houses on the land.

“Development of real estate” as used in this Law means acts of building infrastructure and houses on the State-owned land, the land-use
right for which has been obtained in accordance with this Law.

“Transaction of real estate” as used in this Law includes transfer of real estate, mortgage of real estate and lease of houses.

Article 3

The State shall practise a compensatory and terminable system for the use of State-owned land in accordance with the law, however,
allocation of the land-use right by the State under this Law shall be excepted.

Article 4

The State shall, based on the social and economic development, support the development of construction of residential houses so as
to gradually improve the housing conditions of the residents.

Article 5

Obligees of real estate shall abide by the laws, administrative rules and regulations and pay taxes according to law. The legitimate
rights and interests of the obligees of real estate shall be protected by the law and shall not be infringed by any units or individuals.

Article 6

The department of construction administration and the department of land administration under the State Council shall, in accordance
with the division of functions and powers prescribed by the State Council, attend to their own duties, act in close coordination
and manage the work concerning real estate of the whole country.

Institutional structures, and functions and powers of the departments of housing administration and land administration under the
people’s governments at or above the county level shall be determined by the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government.

Chapter II Land Used for Development of Real Estate

Section 1 Granting of the Land-use Right

Article 7

Granting of the land-use right refers to acts that the State grants land users the right to use the State-owned land(hereinafter referred
to as the land-use right) for a certain number of years and the users shall pay the State a granting fee for the land-use right.

Article 8

The land-use right for the collective-owned land within a planned urban district may be granted with payment only after it is requisitioned
in accordance with the law and turned into State-owned land.

Article 9

Granting of the land-use right must conform to the overall planning for land utilization, urban planning and the annual plan for land
to be used for construction.

Article 10

Where the local people’s governments at or above the county level grant land-use right for development of real estate, they must,
based on the quota set by the people’s governments at or above the provincial level, draw up plans for the total area for annual
granting of the land-use right, which shall, according to the provisions of the State Council, be reported to the State Council or
the provincial people’s government for approval.

Article 11

Granting of the land-use right shall be carried out by the people’s governments of the cities or counties in a planned and step-by-step
way. With regard to each lot granted, plans for its purposes, term of use, and other conditions shall be worked out by the departments
of land administration under the people’s governments of the cities and counties in conjunction with the competent departments of
urban planning, construction and housing administration. Such plans shall, according to the provisions of the State Council, be implemented
by the departments of land administration under the people’s governments of the cities or counties after their submission to and
approval by the people’s governments with due authority for approval.

Limits of authority as provided in the preceding paragraph for the people’s governments and their departments concerned of the counties
of the municipalities directly under the Central Government shall be prescribed by the people’s governments of the municipalities
directly under the Central Government.

Article 12

The land-use right may be granted in mode of auction, bidding or agreement between the two parties.

For Land used for commercial, tourism, recreation and luxury housing purposes, where conditions permit, the mode of auction or bidding
shall be adopted; where conditions do not permit and it is impossible to adopt the mode of auction or bidding, the mode of agreement
between the two parties may be adopted.

Fees for granting the land-use right in the mode of agreement between the two parties shall not be lower than the lowest price as
determined in accordance with the provisions of the State.

Article 13

The maximum term for the granting of the land-use right shall be prescribed by the State Council.

Article 14

Granting of the land-use right shall be conducted through concluding a written granting contract.

The contract for granting the land-use right shall be concluded between the departments of land administration under the people’s
governments of the cities or counties and the land users.

Article 15

A land user must pay the fees for the granting of the land-use right as agreed upon in the granting contract. Where fees are not paid
as agreed upon in the granting contract, the department of land administration shall have the power to rescind the contract and may
demand compensation for the breach of contract.

Article 16

Where a land user has paid the fees for the granting of the land-use right as agreed upon in the granting contract, the department
of land administration under the people’s government of the city or county must provide the land granted as agreed upon in the granting
contract; where the land granted is not provided as agreed upon in the granting contract, the land user shall have the right to cancel
the contract, the fees for granting the land-use right shall be returned by the department of land administration, and the land user
may demand compensation for the breach of contract.

Article 17

Where a land user who needs to modify the land-use purpose agreed upon in the contract for granting the land-use right, he must obtain
the consent of the granting party and the competent administrative department for urban planning under the people’s government of
the city or county, conclude an agreement on the modification of the granting contract or conclude a new contract for granting the
land-use right and the fees for granting the land-use right shall be accordingly readjusted.

Article 18

All the fees for granting the land-use right shall be turned over to the State Treasury and incorporated into the budget so as to
be used for the construction of urban infrastructure and land development. Specific measures for the turning over and use of the
fees for granting the land-use right shall be formulated by the State Council.

Article 19

Before the term for the use of land as agreed upon in the contract for granting the land-use right expires, the State is not to recover
the land-use right obtained by the land user in accordance with the law. Under special circumstances as required by public interests,
the State may, in accordance with legal procedures, recover the land-use right before the expiration of the term and shall make appropriate
compensation based on the number of years of utilization and the actual development of the land by the land user.

Article 20

The land-use right shall be terminated with loss of the land.

Article 21

Where the term for the use of land as agreed upon in the contract for granting the land-use right expires, and the land user needs
to continue the use of the land, the land user shall apply for an extension of the term no later than one year ahead of the expiration.
Such an application shall be approved except for the land to be reclaimed as required by public interests. Upon approval of the extension,
the land user shall enter into a new contract for the granting of the land-use right and pay fees for the granting in accordance
with the relevant provisions.

Where the term for the use of land as agreed upon in the contract for granting the land-use right expires, and the land user does
not apply for an extension of the term or his application therefor is not approved in accordance with the provisions in the preceding
paragraph, the land-use right shall be reclaimed by the State without compensation.

Section 2 Allocation of the Land-use Right

Article 22

Allocation of the land-use right refers to acts that the people’s government at or above the county level approves in accordance with
the law to allocate the land to a land user after the latter has paid compensation and expenses for resettlement, etc. for the allocated
land, or gratuitously allocates the land-use right to the land user.

Where the land-use right is obtained by mode of allocation in accordance with the provisions of this Law, except as otherwise provided
by the laws, administrative rules and regulations, there shall be no restriction with respect to the term of use.

Article 23

The land-use right for the following land used for construction may, if really necessary, be allocated upon approval by the people’s
government at or above the county level in accordance with the law:

land used for State organs or military purposes;

land used for urban infrastructure or public facilities;

land used for projects of energy, communications or water conservancy, etc. which are selectively supported by the State; and

land used for other purposes as provided by the laws, administrative rules and regulations.

Chapter III Development of Real Estate

Article 24

The development of real estate must be strictly subjected to the urban planning and carried out in a manner of overall planning, rational
distribution, comprehensive development and construction with supporting facilities, in line with the principle of combining the
economic, social and environmental benefits.

Article 25

Where the land-use right is obtained by mode of granting for development of real estate, the land must be developed according to the
land-use purpose and the time limit for starting the development as agreed upon in the contract for granting the land-use right.
Where one year has elapsed from the date for starting the development as agreed upon in the granting contract and the land is not
yet developed, fees for idle land which is equivalent to twenty percent or less of the fees for granting the land-use right shall
be collected; where two years have elapsed and the land is still not developed, the land-use right may be reclaimed without compensation,
however, the circumstances wherein the delay of starting the development is caused by force majeure or acts of governments or their
departments concerned or by the early preparations necessary for starting the development shall be excepted.

Article 26

The design and construction of a project of real estate development must conform to the relevant standards and norm of the State.

A completed project of real estate development may be turned over for use only after it is checked and accepted.

Article 27

The land-use right obtained pursuant to the law may, in accordance with the provisions of this Law and relevant laws, administrative
rules and regulations, be valued and contributed as shares in developing and operating real estate in the form of joint ventures
or contractual joint ventures.

Article 28

The State shall adopt preferential measures in aspects such as taxation to encourage and support real estate development enterprises
to develop and construct residential houses.

Article 29

A real estate development enterprise is an enterprise engaged in real estate development and operation for purpose of profit. To establish
a real estate development enterprise, the following conditions shall be met:

to have a name and institutional structure of its own;

to have fixed premises for business operation;

to have registered assets conforming to the provisions of the State Council;

to have sufficient professional and technical personnel; and

other conditions as provided by laws, administrative rules and regulations.

To establish a real estate development enterprise, an application for registration of establishment shall be made to the administrative
department for industry and commerce. Where conditions specified in this Law are met, the administrative department for industry
and commerce shall register the establishment and issue a business license. And registration shall not be made, where such conditions
are not met.

To establish a limited liability company or a joint stock limited company engaged the real estate development and operation, relevant
provisions of the Company Law shall also be complied with.

A real estate development enterprise shall, within one month after obtaining a business license, report its establishment for the
record to the department designated by the local people’s government at or above the county level in the place where the registration
authority is located.

Article 30

The proportion of registered assets of a real estate development enterprise to its total investment shall comply with the relevant
provisions of the State.

Where a real estate development enterprise develops real estate in phases, the amount of phased investment shall be commensurate with
the scale of the project and the capital shall be put into construction of the project on schedule as agreed upon in the contract
for granting the land-use right.

Chapter IV Transaction of Real Estate

Section 1 General Conditions

Article 31

In the transfer or mortgage of real estate, the ownership of the house and the land-use right to the house site shall be transferred
or mortgaged therewith.

Article 32

The basic land price, standard land price and replacement prices for houses of various types shall be determined and made public regularly.
Specific measures shall be formulated by the State Council.

Article 33

The State shall practise an appraisal system for real estate prices.

The appraisal of real estate prices shall adhere to the principles of justice, fairness and openness, and be carried out according
to the technical standard and appraisal procedures prescribed by the State, based on the basic land price, standard land price and
replacement prices for houses of various types and in the light of local market prices.

Article 34

The State shall practise a report system for real estate transaction prices.

An obligee of real estate shall, in transfer of his real estate, faithfully report the transaction price to the department designated
by the local people’s government at or above the county level and shall not make a concealed or false report.

Article 35

Where real estate is transferred or mortgaged, the party concerned shall register the ownership of the real estate pursuant to the
provisions of Chapter V of this Law.

Section 2 Transfer of Real Estate

Article 36

Transfer of real estate refers to acts that an obligee of real estate transfers his real estate to another person through sale, donation
or other legal means.

Article 37

No following real estate shall be transferred:

The land-use right is obtained by mode of granting, but not meeting conditions set forth in Article 38 of this Law;

The rights of real estate are sealed up by order of the judicial organ or decision of the administrative organ pursuant to law or
limited by other ways;

The land-use right is reclaimed in accordance with the law;

For jointly-owned real estate, written consent of other co-owners has not been obtained;

The ownership is under dispute;

The real estate is not registered in accordance with the law and the certificate of the ownership is not obtained; or

Other circumstances under which transfer is prohibited by the provisions of laws, administrative rules and regulations.

Article 38

Where the land-use right is obtained by mode of granting, transfer of the real estate shall meet the following conditions:

to have paid all the fees for the granting of the land-use right as agreed upon in the granting contract and obtained the certificate
of the land-use right; and

to have invested for development as agreed upon in the granting contract and have fulfilled twenty-five percent or more of the total
investment for development in the case of housing projects, or have constituted conditions of land-use for industrial purposes or
other construction projects in the case of developing tracts of land.

Where real estate is transferred with the construction of houses completed, the certificate of the house ownership shall be acquired.

Article 39

Where the land-use right is obtained by mode of allocation, the transfer of the real estate shall, according to the provisions of
the State Council, be reported for examination and approval to the people’s government that has the authority for approval. Upon
approval of the transfer by the people’s government with the authority for approval, the transferee shall go through the formalities
for the granting of the land-use right and pay the fees therefor according to the relevant provisions of the State.

Where the land-use right is obtained by mode of allocation and the transfer of the real estate is reported for approval, and where
the people’s government that has the authority for approval decides in accordance with the provisions of the State Council that the
formalities for granting the land-use right need not be gone through, the transferor shall, pursuant to the provisions of the State
Council, turn over to the State the proceeds obtained from land in the transfer of the real estate or dispose of such proceeds otherwise.

Article 40

For the transfer of real estate, a written transfer contract shall be concluded in which the mode of obtaining the land-use right
shall be stated.

Article 41

When real estate is transferred, the rights and obligations stated in the contract for granting the land-use right shall be transferred
therewith.

Article 42

Where the land-use right is obtained by mode of granting and after the real estate is transferred, the term for the use of the land-use
right shall be the remaining years after subtracting the years of use by the former land user from the original term agreed upon
in the contract for granting the land-use right.

Article 43

Where the land-use right is obtained by mode of granting and after the real estate is transferred, the transferee modifies the land-use
purpose agreed upon in the contract for granting the land-use right, the transferee must obtain consent from the transferor and the
administrative department in charge of urban planning under the people’s government of the relevant city or county, and conclude
an agreement on the modification of the contract for granting the land-use right or enter into a new contract for granting the land-use
right and readjust the fees for granting the land-use right accordingly.

Article 44

For the presale of commercial houses, the following conditions shall be met:

to have paid all the fees for the granting of the land-use right and obtained the certificate of the land-use right;

to have a permit for construction project planning;

the funds put into the development construction have reached twenty-five percent or more of the total investment for the construction
project, computed on the basis of the commercial houses provided for presale, and the schedule of construction and the date of completion
for delivery have been set; and

to make registration for presale at the administrative department in charge of house property under the people’s government at or
above the county level and to obtain the certificate of permission for the presale of commercial houses.

Pre-sellers of commercial houses shall, in accordance with the relevant provisions of the State, submit the presale contracts to the
departments of housing administration and departments of land administration under the people’s governments at or above the county
level for registration and record.

The proceeds obtained from the presale of commercial houses must be used for the relevant construction projects.

Article 45

In the case of presale of commercial houses, matters concerning the transfer of incomplete pre-sold commercial houses that the buyers
have purchased shall be prescribed by the State Council.

Section 3 Mortgage of Real Estate

Article 46

Mortgage of real estate refers to acts that a mortgagor provides the mortgagee security for the payment of a debt with his legal real
estate in the manner that the possession of his real estate is not transferred. Where a debtor fails to pay his debt, the mortgagee
shall have the right in accordance with the law to enjoy the priority in compensation to be paid with funds obtained from auction
of the real estate mortgaged.

Article 47

A mortgage may be created on the ownership of a house obtained according to law together with the land-use right to the house site.

A mortgage may be created on the land-use right obtained by mode of granting.

Article 48

The mortgage of real estate shall be dealt with on the strength of the certificate of the land-use right and the certificate of ownership
of the house.

Article 49

For the mortgage of real estate, the mortgagor and the mortgagee shall enter into a written mortgage contract.

Article 50

Where the land-use right on which a mortgage is created is obtained by mode of allocation, the mortgagee may enjoy the priority in
compensation only after the amount equal to the fees for the granting of the land-use right is paid from the funds obtained from
auction of the real estate done in accordance with the law.

Article 51

After a contract for the mortgage of the real estate is concluded, newly-built houses on the land shall not be regarded as the mortgaged
asset. If the mortgaged real estate needs to be sold by auction, the newly-built houses on the land may be auctioned off according
to law together with the mortgaged assets. However, the mortgagee shall not have the priority in compensation with respect to the
funds obtained from auction of the newly-built houses.

Section 4 Lease of Houses

Article 52

Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a leaser for use and the leaser
pays rent for the house to the leaser.

Article 53

In the lease of a house, the leaser and the leaser shall conclude a written lease contract defining such matters as the term, purpose,
and price of the lease, liability for repair, as well as other rights and obligations of both parties, and shall register the lease
with the department of housing administration for the record.

Article 54

Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and the people’s government
of the city where the houses are located. Where houses are leased for activities of production and business operation, the rent and
other terms for the lease shall be determined by both parties through consultation.

Article 55

Where an owner of a house, for profit-making purposes, leases the house built on the State-owned land, the land-use right for which
is obtained by mode of allocation, he shall turn over to the State the proceeds derived from the land and contained in the rent.
The specific measures shall be prescribed by the State Council.

Section 5 Intermediary Service Agencies

Article 56

Intermediary service agencies for real estate include real estate consultant agencies, real estate price appraisal agencies and real
estate broking agencies.

Article 57

Intermediary service agencies for real estate shall meet the following conditions:

to have names and institutional structures of their own;

to have fixed premises to provide services;

to have necessary property and funds;

to have sufficient professional personnel; and

other conditions provided by laws, administrative rules and regulations.

For establishing an intermediary service agency for real estate, an application for registration of the establishment shall be submitted
to the administrative department for industry and commerce and a business licence shall be obtained, before it starts its business.

Article 58

The State shall practise a qualification authentication system for real estate price appraisers.

Chapter V Administration of Real Estate Ownership Registration

Article 59

The State shall practise a system of registration and certification for land-use right and ownership of houses.

Article 60

Where the land-use right is obtained by mode of granting or allocation, an application for registration shall be submitted to the
department of land administration under the local people’s government at or above the county level. Upon verification by the department
of land administration under the local people’s government at or above the county level, the certificate of the land-use right shall
be issued by the people’s government at the corresponding level.

Where a house is built on the land for real estate development obtained pursuant to the law, an application for registration shall,
on the strength of the certificate of land-use right, be submitted to the department of housing administration under the local people’s
government at or above the county level. The department of housing administration under the local people’s government at or above
the country level shall issue the certificate of ownership of the house after verification.

Where transfer or modification of real estate is made, an application for registration of the modification of house property shall
be submitted to the department of housing administration under the local people’s government at or above the county level and on
the strength of the certificate of the ownership of the house after modification, an application for registration of the modification
of the land-use right shall be submitted to the department of land administration under the people’s government at the corresponding
level. Upon verification by the department of land administration under the people’s government at the corresponding level, a new
or a modified certificate of the land-use right shall be issued by the people’s government at the corresponding level.

Where provided otherwise by laws, the provisions of relevant laws shall apply.

Article 61

Where real estate is mortgaged, registration of mortgage shall be made with the department designated by the local people’s government
at or above the county level.

Where the land-use right and the ownership of a house are obtained from disposal of mortgaged real estate, the change of ownership
for the land-use right and the house shall be registered in accordance with the provisions of this Chapter.

Article 62

Where a department of the local people’s government at or above the county level is in charge of both housing administration and land
administration as determined by the people’s government of the relevant province, autonomous region or municipality directly under
the Central Government, such department may make and issue the uniform certificate of the ownership of real estate, in which the
confirmation and modification of the ownership of houses and the land-use right of the house site shall be recorded respectively
in accordance with the provisions of Article 60 of this Law.

Chapter VI Legal Liability

Article 63

Where anyone, in violation of the provisions of Article 10 or Article 11 of this Law, approves without authorization the granting
of land-use right or grants land-use right without due approval for development of real estate, the person who is held responsible
shall be given an administrative sanction by an organ at a higher level or by the unit to which he belongs.

Article 64

Whoever, in violation of the provisions of Article 29 of this Law, engages in business of real estate development without obtaining
a business license shall be ordered to stop activities of real estate development and confiscated of his unlawful proceeds and may
be concurrently imposed a fine by the administrative department for industry and commerce under the people’s government at or above
the county level.

Article 65

Whoever, in violation of the provisions of paragraph 1 of Article 38 of this Law, transfers the land-use right shall be confiscated
of his unlawful proceeds and may be concurrently imposed a fine by the department of land administration under the people’s government
at or above the county level.

Article 66

Whoever, in violation of the provisions of paragraph 1 of Article 39 of this Law, transfers real estate shall be ordered to pay the
fees for the granting of the land-use right, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the department
of land administration under the people’s government at or above the county level.

Article 67

Whoever, in violation of the provisions of paragraph 1 of Article 44 of this Law, pre-sells commercial houses sha

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME CONCRETE QUESTIONS CONCERNING REFUNDING THE EXTRA TAX PAYMENTS RESULTING FROM THE CHANGE-OVER TO THE LEVY OF VALUE-ADDED TAX AND CONSUMPTION TAX ON ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on some Concrete Questions Concerning Refunding the Extra Tax Payments Resulting
from the Change-over to the Levy of Value-added Tax and Consumption Tax on Enterprises with Foreign Investment

GuoShuiFa [1994] No.115

April 21,1994

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:

In the spirit of the Circular of the State Council On Questions Related to the Interim Regulations Concerning the Levy of Applicable
Value-Added Tax, Consumption Tax and Business Tax on Enterprises with Foreign Investment and Foreign Enterprises, questions concerning
refunding the extra tax paid by enterprises with foreign investment after the change-over to the levy of value-added tax and consumption
tax are hereby clarified in detail as follows;

The extra tax paid by enterprises with foreign investment due to change-over to the levy of value-added tax and consumption tax refers
to the actual tax payment calculated in accordance with the Interim Regulations of the People’s Republic of China on Value-Added
Tax, the Interim Regulations of the People’s Republic of China on Consumption Tax and related stipulations for the goods sold, product
processing and labor services provided such as repair, production, and processing taxable consumer goods on a commission basis by
enterprises with foreign investment, that surpasses the part of payable tax calculated in accordance with the Regulations of the
People’s Republic of China On Consolidated Industrial and Commercial Tax (Draft), Provisions On Questions Concerning the Levy of
Special Consumption Tax on Sedan Cars issued by the State Administration of Taxation as well as related stipulations, The calculation
formula is given as follows:

Current extra tax payment = current actual payment of value- added tax + current actual payment of consumption tax-consolidated industrial
and commercial tax payment-special consumer tax payment

The consolidated industrial and commercial tax payment refers to the tax payment (including local surcharge) worked out in accordance
with the table of tax items and tax rates of consolidated industrial and commercial tax attached to the Circular On Questions Concerning
Implementing the Document Coded Guo Shui Han Fa [1993] No.152 , a document of the Foreign Tax Management Department of the State
Administration of Taxation coded Coded Guo Shui Wai Han [1994] No. 009, which is calculated on the basis of the combined total of
the sales volume of the current year and tax on the sale item. For enterprises with foreign investment engaged in wholesale and retail
sale business, consolidated industrial and commercial tax payment on their business income is all calculated at a 3 percent rate.

The special consumption tax payment refers to the tax payment worked out in accordance with the quantity of current taxable products
and the tax items, tax value and calculation methods as listed in the Regulations on Questions Concerning the Levy of Special Consumption
Tax on Sedan Cars, a document of the State Administration of Taxation (GuoShuiLiuZi [1989] No.112).

II.

For the overly paid tax by the enterprise with foreign investment which pays both value-added tax and consumption tax, the tax reimbursement
for the value-added tax and consumption tax shall be calculated in accordance with the proportion of the current value-added tax
and consumption tax actually paid in the total value of the current value-added tax and consumption actually paid. The calculation
formula is given as follows:

Refundable VAT =Current extra tax payment * Current actual VAT payment / Total value of current actual VAT & consumption tax payment

Refundable consumption tax = current extra tax payment * current actual payment of consumption tax / Total value of current actual
VAT & consumption tax payment

III.

“The enterprises with foreign investment approved to be established before December 31, 1993” as mentioned in the Circular On Questions
Involved in the Interim Regulations of the State Council Concerning the Levy of Applicable Value-Added Tax, Consumption Tax and Business
Tax on Enterprises with Foreign Investment and Foreign Enterprises refer to enterprises with foreign investment which had performed
industrial and commercial registration procedures before December 31, 1993: “The approved operational period” refers to the operational
period approved by the industrial and commercial administrative department, excluding the period extended after January 1, 1994;
“The five years” refers to the period from January 1, 1994 to December 31, 1998.

IV.

That part of value-added tax and consumption tax paid for the imported goods of enterprises with foreign investment that exceed the
payable tax for imports calculated in accordance with relevant stipulations of the original Regulations Concerning Consolidated Industrial
and Commercial Tax shall not be refunded in principle. However, for the extra tax paid by individual enterprises with foreign investment
for the raw and semi-finished materials and spare parts and components needed in production but the supply of which cannot be guaranteed
on the domestic market and imported for the production of products which are urgently needed at home or the development of which
is encouraged by the state, may be dealt with as an individual case with approval from the State Administration of Taxation.

The formula for calculating consolidated industrial and commercial tax on imports is given as follows:

Consolidated industrial & commercial tax on imports =(Duty – paid value + tariff )* Consolidated industrial & commercial tax rate
/ (1 – Consolidated industrial & commercial tax rate)

For the goods produced by enterprises with foreign investment and sold to an export-oriented enterprise for export, the extra tax
payment resulting from increased tax burden shall not be refunded.

VI.

A enterprise with foreign investment shall, within 30 days after the end of the Year, send a written application report to the competent
foreign-related tax authorities, fill in the Application Form for Tax Reimbursement Due to Increased VAT and Consumption Tax Burden
(attached at the back), at the same time it shall send a copy of the VAT and consumption tax paid certificate, after the application
has been examined and verified by the competent foreign-related tax authorities and approved by the authorized tax authorities, the
enterprise shall perform the procedures for tax reimbursement.

VII.

The annual tax reimbursement amount of a enterprise with foreign investment that exceeds 1 million Yuan (including 1 million Yuan)
shall be examined and approved by the State Administration of Taxation; an annual tax reimbursement amount that is below 1 million
Yuan shall be examined and approved by the provincial-level sub-bureaus and sub-bureaus of municipalities separately listed on the
State plan under the State Administration of Taxation.

The various provincial sub-bureaus and sub-bureaus of municipalities separately listed on the State plan shall, within 60 days after
the end of the year, submit a report on the information about tax reimbursement of the previous year to the State Administration
of Taxation.

VIII.

The refunding of extra tax payment shall be handled lump sum in principle after the end of the year. If the annual tax reimbursement
amount is large, it may be refunded on a quarterly basis and settlement made at year-end with approval from the provincial-level
sub-bureaus or sub-bureaus of municipalities separately listed on the State plan. For individual enterprises which really have difficulty
in turnover of funds, with approval from the State Administration of Taxation, tax can be refunded in advance on a monthly basis
and settlement be made at year end.

IX.

A enterprise with foreign investment shall accurately declare the amount of tax reimbursement, if more tax payment than required resulting
from inaccurate report or the adoption of illegitimate means is discovered, the matter shall be handled in accordance with the related
stipulations of the Measures of the People’s Republic of China on Administration of Tax Collection.

Attachment:

The Application Form of Tax Reimbursement Due to Increased Value-Added Tax and Consumption Tax Burden (omitted)

II.

Stipulations On Questions Concerning the Levy of Special Consumption Tax on Sedan Cars (omitted)

The State Administration of Taxation
1994-04-21

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2000

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON QUESTIONS CONCERNING THE HANDLING OF THE TAX ALREADY LEVIED RELATED TO...

ADMINISTRATIVE REGULATIONS GOVERNING THE REGISTRATION OF COMPANIES

PROVISIONS ON THE ADMINISTRATION OF COLLECTION OF THE MINERAL RESOURCES COMPENSATION

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON PUNISHMENT OF THE CRIMES OF INFRINGING COPYRIGHT

LETTER OF THE STATE ADMINISTRATION OF TAXATION ON POLICY QUESTION RELATED TO EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

RULES FOR IMPLEMENTATION OF THE THE CONTROL OF THE EXIT AND ENTRY OF CITIZENS

LETTER OF THE MINISTRY OF FINANCE ON THE ACCOUNTING DEALING WITH THE CONSUMPTION TAX OF THE EXPORT DUTIABLE CONSUMABLES

PROVISIONAL REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CONSUMPTION TAX

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ABSORPTION OF FOREIGN INVESTMENT BY MEANS OF BOT

REGULATIONS ON THE ADMINISTRATION OF AUDIO-VISUAL PRODUCTS

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATION OF THE URBAN REAL ESTATE

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME CONCRETE QUESTIONS CONCERNING REFUNDING THE EXTRA TAX PAYMENTS RESULTING FROM THE CHANGE-OVER TO THE LEVY OF VALUE-ADDED TAX AND CONSUMPTION TAX ON ENTERPRISES WITH FOREIGN INVESTMENT

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7